Decline in earnings
Prudential Financial (PRU) Individual Life business saw a substantial fall in its 2Q17 earnings compared to 2Q16. In 2Q17, earnings in its Individual Life business stood at $96 million, and in 2Q16 it stood at $130 million.
This significant fall was due mostly to higher expenses and underwriting results. However, net investment results have positively impacted the earnings from the Individual Life business in 2Q17.
In 2Q17, on the basis of annualized new business premiums, sales in Prudential’s Individual Life business stood at $153 million, reflecting a marginal decline of ~3.8% year-over-year. Sales of guaranteed universal life have fallen substantially from $61 million in 2Q16 to $40 million in 2Q17.
However, sales of other universal life products rose from $23 million in 2Q16 to $33 million in 2Q17. Term product sales also increased in 2Q17 compared to 2Q16. In 2Q17, term product sales stood at $54 million and in 2Q16, they stood at $50 million.
Prudential Financial’s Group Insurance business reported earnings of $81 million in 2Q17 compared to $48 million in 2Q16. This rise was mostly due to net investment results and underwriting results. In 1Q17, earnings from the company’s Group Insurance business stood at $34 million.