Prudential 2002 Annual Report Download - page 21
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Please find page 21 of the 2002 Prudential annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.SELECTED FINANCIAL DATA
We derived the selected consolidated income statement data and division and segment operating results for
the years ended December 31, 2002, 2001 and 2000 and the selected consolidated balance sheet data as of
December 31, 2002 and 2001 from our Consolidated Financial Statements included elsewhere herein. We derived
the selected consolidated income statement data for the years ended December 31, 1999 and 1998 and the selected
consolidated balance sheet data as of December 31, 2000, 1999 and 1998 from consolidated financial statements
not included herein.
In April 2001, we completed the acquisition of Gibraltar Life, which has adopted a November 30 fiscal year
end. Consolidated balance sheet data as of December 31, 2002 and 2001 includes Gibraltar Life assets and
liabilities as of November 30 and consolidated income statement data includes Gibraltar Life results from April 2,
2001, the date of its reorganization, through November 30, 2001 and December 1, 2001 though November 30,
2002.
We have made several dispositions that materially affect the comparability of the data presented below. In
the fourth quarter of 2000, we restructured the capital markets activities of Prudential Securities, exiting its lead-
managed equity underwriting for corporate issuers and institutional fixed income businesses. These businesses
incurred a pre-tax loss of $36 million in 2002, a pre-tax loss of $159 million in 2001, a pre-tax loss of $620
million in 2000, pre-tax income of $23 million in 1999, and a pre-tax loss of $73 million in 1998. The loss from
these operations in 2000 included charges of $476 million associated with our termination and wind-down of
these businesses. In 2000, we sold Gibraltar Casualty Company, a commercial property and casualty insurer that
we placed in wind-down status in 1985. In the fourth quarter of 2002, we incurred $79 million in charges under a
stop-loss reinsurance agreement that we entered into at the time of sale. Gibraltar Casualty had no impact on
results in 2001 and incurred pre-tax losses of $6 million in 2000, $72 million in 1999, and $76 million in 1998.
Residual activity from the residential first mortgage banking business that we sold in a prior period resulted in a
pre-tax loss of $41 million in 1998 primarily related to our remaining obligations with respect to this business,
and pre-tax income of $35 million in 2002.
On December 18, 2001, Prudential Insurance converted from a mutual life insurance company owned by its
policyholders to a stock life insurance company and became an indirect, wholly owned subsidiary of Prudential
Financial. “Demutualization costs and expenses” amounted to $588 million in 2001, $143 million in 2000, $75
million in 1999 and $24 million in 1998. “Demutualization costs and expenses” in 2001 include $340 million of
demutualization consideration paid to former Canadian branch policyholders.
You should read this selected consolidated financial information in conjunction with “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” and our Consolidated Financial
Statements included elsewhere herein.
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