Higher Variable Investment Income Boosts Results for Prudential but Likely to Revert

No-moat rated Prudential reported a solid quarter with adjusted operating EPS of $3.78, well above the FactSet consensus of $2.76 as variable investment income was elevated. Fee income was also generally solid, but underwriting trends were generally negative. Overall, there was little that would alter our long-term view of the firm, and we will maintain our fair value estimate of $89.