Prudential 2001 Annual Report Download - page 51

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Prudential Financial, Inc.
Year Ended December 31,
2001 2000 1999
(in millions)
Division operating results:
Revenues(1) .............................................................................. $7,644 $8,026 $7,563
Benefits and expenses(2) .................................................................... 7,334 7,286 6,896
Adjusted operating income ................................................................... $ 310 $ 740 $ 667
Adjusted operating income by segment:
Individual Life Insurance .................................................................... $ 273 $ 114 $ 117
Private Client Group ........................................................................ (239) 237 224
Retail Investments .......................................................................... 181 239 174
Property and Casualty Insurance .............................................................. 95 150 152
Total ................................................................................ 310 740 667
Items excluded from adjusted operating income:
Realized investment gains, net of losses and related charges:
Realized investment gains (losses), net .......................................................... (112) 2 (9)
Related charges(3) ......................................................................... 12 2 1
Total realized investment gains, net of losses and related charges ................................. (100) 4 (8)
Income from continuing operations before income taxes ................................................ $ 210 $ 744 $ 659
(1) Revenues exclude realized investment gains, net of losses.
(2) Benefits and expenses exclude the impact of net realized investment gains on deferred acquisition cost
amortization and reserves.
(3) Related charges consist of the following:
Year Ended December 31,
2001 2000 1999
(in millions)
Reserves for future policy benefits ................................................................. $ (1) $ (4) $ —
Amortization of deferred policy acquisition costs ..................................................... 13 6 1
Total .................................................................................... $ 12 $ 2 $ 1
2001 to 2000 Annual Comparison. Adjusted operating income of our U.S. Consumer division decreased $430
million, or 58%, in 2001 from 2000. The decline resulted primarily from a decrease in adjusted operating income in
our Private Client Group segment. Income from continuing operations before income taxes decreased $534 million,
or 72%, primarily as a result of the decrease in adjusted operating income.
2000 to 1999 Annual Comparison. Adjusted operating income of our U.S. Consumer division increased $73
million, or 11%, in 2000 from 1999. The increase came primarily from an increase in adjusted operating income
from our Retail Investments segment. Income from continuing operations before income taxes increased $85
million, or 13%, primarily as a result of the increase in adjusted operating income.
Individual Life Insurance
Operating Results
The following table sets forth the Individual Life Insurance segment’s operating results for the periods indicated.
Year Ended December 31,
2001 2000 1999
(in millions)
Operating results:
Revenues(1) .............................................................................. $1,919 $1,828 $1,703
Benefits and expenses ....................................................................... 1,646 1,714 1,586
Adjusted operating income ................................................................... $ 273 $ 114 $ 117
(1) Revenues exclude realized investment gains, net of losses.
Prudential Financial 2001 Annual Report 49