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.
million in charges related to Prudential’s acquisition of A.G. Edwards &
Sons Inc., St.
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