(Reuters) - Prudential Financial Inc (NYSE:PRU) 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 S&P 500 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.