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(Reuters) - Prudential Financial reported a rise in fourth-quarter adjusted profit on Tuesday, as growth in the global investment management business offset weakness in the United States.
Markets have rallied as the Federal Reserve's rate cut injected confidence among investors on the economy avoiding a recession. The sentiment was further boosted by business-friendly policies and deregulation to be implemented by new U.S. President Donald Trump.
Newark, New Jersey-based Prudential's PGIM, its global investment management business, said adjusted operating income rose to $259 million in the quarter from $172 million a year ago, driven by higher asset management fees.
However, the company's U.S. businesses, which consists of its retirement strategies, group insurance and individual life businesses, saw a near 11% decline in its adjusted operating income.
Assets under management climbed to $1.51 trillion in the fourth quarter, from $1.45 trillion a year ago.
The company's after-tax adjusted operating income came in at $1.07 billion, or $2.96 per common share, in the three months ended Dec. 31, compared with $926 million, or $2.54 per share, a year earlier.
(Reporting by Prakhar Srivastava and Jaiveer Shekhawat in Bengaluru; Editing by Maju Samuel)