©Reuters. The Prudential Financial Inc logo is seen in this illustration taken April 10, 2023. REUTERS/Dado Ruvic/Illustration
(Reuters) – Prudential Financial named company veteran Yanela Frias chief financial officer on Tuesday, succeeding Ken Tanji, and said higher net investment returns in its U.S. unit helped drive a rise in fourth-quarter earnings.
The CFO change comes as Prudential shifts its business focus to more stable and recurring revenue sources such as underwriting from market-sensitive revenue segments.
“Yanela’s extensive financial, operational and leadership experience will serve us well as we execute our strategy to become a higher-growth, less market-sensitive and more agile company,” said Charles Lowrey, CEO of Prudential.
Tanji will leave Prudential in September after 35 years with the company, during which he held numerous senior leadership positions and was responsible for directing the company’s financial strategy as chief financial officer.
Frias, also a member of the company for nearly three decades, was most recently president of the group’s insurance business.
In the latest quarter, Prudential’s adjusted profit rose 1.2%, with its U.S. operations reporting adjusted operating profit of $988 million, up from $710 million a year earlier.
Investment returns from major insurance companies rebounded after long-established forecasts of a soft landing for the U.S. economy triggered a Wall Street rally at the end of the year.
Prudential reported assets under management and administration of $1.63 trillion in the fourth quarter, up from $1.53 trillion a year earlier.
“In 2023, we successfully reduced our market sensitivity and increased capital flexibility through multiple strategic transactions,” said CEO Lowrey.
The company’s adjusted after-tax operating profit was $943 million, or $2.58 per common share, for the three months ended Dec. 31, up from $932 million, or $2. $49 per common share, prior year.