Prudential Financial third-quarter profit falls as market rout hits AUM By Reuters

(Reuters) – Prudential Financial Inc (NYSE:) on Tuesday reported a fall in quarterly adjusted profit as the insurer’s assets under management (AUM) came under pressure from a recent selloff in global markets.

Decades-high inflation, a geopolitical turmoil and rate hikes have caused investors to pull back from markets. All three major U.S. indices have been trading in the bear market territory, with the benchmark down nearly 19% so far this year.

Prudential said last quarter it was making progress in moving the focus of its business from market-sensitive revenue segments to more stable and recurring sources of income.

The company reported a 22% decline in AUM in the quarter to $1.35 trillion, compared with $1.73 trillion a year earlier.

Adjusted after-tax operating income fell to $803 million, or $2.13 per share, for the three months ended Sept 30, compared with $1.49 billion or $3.78 per share, a year earlier.

PGIM, Prudential’s global investment management business, reported a 33% fall in quarterly income as assets under management and fees fell, while U.S. businesses also reported a 36% decline in adjusted operating income to $702 million for the third quarter.