Prudential Financial profit drops on lower assets under management

(Reuters) – Prudential Financial Inc (NYSE:) reported a drop in first-quarter profit on Tuesday, as the life and health insurer saw a decline in assets under management.

The respite in the economy after the markets priced in a milder recession was short-lived as a string of high-profile bank collapses sparked a sector-wide turbulence last month and roiled financial stocks.

As a result, assets under management declined 12.5% to $1.42 trillion in the quarter as investors yanked capital from speculative assets and instead sought refuge in safer bets.

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

The insurer’s after-tax adjusted operating income was $990 million, or $2.66 per share, in the three months ended March 31, compared with $1.19 billion, or $3.10 per share, a year earlier.

Peer MetLife Inc (NYSE:) will report first-quarter results after market hours on Wednesday.