After MetLIfe announced that it expects to report $600M in operating earnings for the third quarter of 2008, Prudential Financial Inc. issued a press release on October 9, 2008 stating that its after-tax adjusted operating income for its financial services businesses
will be between $275 million and $375 million for the third quarter of 2008, down from
$905 million for the third quarter of 2007.
Prudential says the operating results will include $700 million
in charges, including:
– $325
million to $375 million in charges for pretax losses on investments in
securities issued by Lehman Brothers Holding Corp., New York; American
International Group Inc., New York; and Washington Mutual Inc., Seattle.
– $235
million for Prudential’s share of a legal settlement involving Wachovia
Securities, a retail securities brokerage joint venture owned by Prudential and
Wachovia Corp., Charlotte, N.C. The settlement resolved charges of improper
security sales practices by subsidiaries of Wachovia Securities.
– $45
million in charges related to Prudential’s acquisition of A.G. Edwards &
Sons Inc.,
St.
Louis.
Click here for Prudential Financial balance sheet for year ends 2005-2007 compiled from SEC filings.
Prudential Financial, Inc. is the parent of structured annuity issuer The Prudential Insurance Company of America and guarantor of Pruco Assignments Corporation when non qualified assignments are placed through the Pruco facility.
In March 2008, Prudential Financial was named "Most Admired" by its industry peers in the Annual World’s Most Admired survey in the life insurer category.
Sources: Prudential Financial, National Underwriter, Hoovers, CNN/Money
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