(Reuters) -Prudential Financial Inc reported a lower-than-expected quarterly profit on Tuesday, as the life 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.
Shares of the New Jersey-based company, down 16% so far this year, fell another 2% in extended trading on Tuesday.
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.
Analysts on average had estimated a profit of $2.93 a share, according to data from Refinitiv IBES.
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.
Chief Executive Charles Lowrey said on Tuesday the company was advancing its M&A strategy to expand "alternative capabilities and generate additional fee-based revenue".
Peer MetLife Inc (NYSE:MET) will report first-quarter results after market hours on Wednesday.