Life insurers invest in bonds to back future obligations to policyholders and generate income. Prudential assumed in its 2015 outlook in December that the 10-year Treasury yield would rise to 2.97 percent by the end of this year. A 1 percentage- point drop in interest rates would cut earnings by 20 cents a share, Prudential said at the time.

MetLife Inc., the largest U.S. life insurer, has declined 9.8 percent this year. The New York-based company is scheduled to report fourth-quarter results on Feb. 11.

Debt Repayment

Prudential in December said it would record costs from a financial restructuring as the company repaid debt and repurchased shares tied to its 2001 switch from a mutual to a stockholder-owned firm. The moves were part of an effort to free up capital. Today’s results included costs of $448 million to redeem debt at the unit with policies from before the conversion.

In the U.S., Prudential has agreed to take on pension obligations from companies including Bristol-Myers Squibb Co. and General Motors Co. It has also sold insurance to U.K. plans to guard against the risk that retirees will live longer than expected. The deals draw on Prudential’s strength in estimating lifespans and can add to funds the firm oversees.

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