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Analyzing Prudential’s Life Planner Division’s Performance

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Life Planner operations

Prudential Financial’s (PRU) Life Planner operations saw adjusted operating income of $416 million in 1Q18, while in 1Q17 it was $408 million. This rise also includes the benefits from currency fluctuations. However, after excluding these benefits, the increase stood at $7 million mainly due to operations in Brazil as well as Japan.

The Life Planner operations generated revenues amounting to $3.1 billion in 1Q18 compared to $2.8 billion in 1Q17. This rise also includes benefits due to currency fluctuations. After excluding these benefits, the revenue growth of $200 million was mainly due to fee income, policy charges, and increased premiums. These operations saw benefits and expenses amounting to $2.7 billion in 1Q18 compared to $2.4 billion in 1Q17.

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Gibraltar Life and other operations

The Gibraltar Life and other operations segment generated adjusted operating income amounting to $440 million in 1Q18, while in 1Q17 it was $391 million, which includes currency fluctuation benefits. However, excluding these benefits, the rise was $48 million. These operations generated revenues amounting to $3.0 billion in 1Q18 compared to $2.6 billion in 1Q17, which includes currency fluctuations benefits. If these benefits aren’t considered, revenues rose by $250 million. The Gibraltar Life and other operations incurred benefits and expenses of $2.5 billion in 1Q18.

The enterprise value of Prudential Financial is $28.1 billion, while peers (XLF) Travelers  (TRV), MetLife (MET), and Hartford Financial Services (HIG) have enterprise values of $38.6 billion, $106.3 billion, and $21.3 billion, respectively.

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