New Jersey-based Prudential Financial has reported first-quarter net loss for its financial services business at $988m or $2.09 per share, compared to net income of $539m or $1.10 per share during the same period in 2011.

Financial Services Businesses operating income after-tax adjusted for the current quarter stood at $741m, or $1.56 per common share against $800m, or $1.62 per common share for the year-ago quarter.

According to the insurer, AIG Star Life Insurance and AIG Edison Life Insurance were acquired on 1 February 2011.

Prudential Financial chairman and chief executive officer John Strangfeld said that the quarterly result reflects fluctuations in claims experience, expense levels, and market-driven items.

"Our International Insurance business continues to perform well, registering record-high sales for the quarter as we are benefiting from expanding distribution across multiple channels serving the protection and retirement markets. We are beginning to realize significant cost synergies, consistent with our targets, as the integration of the Star and Edison businesses remains on track," Strangfeld said.

For the quarter ended on 31 March 2012, the US retirement solutions and investment management division reported adjusted operating income of $698m versus $600m during the same period previous year.

The US individual life and group insurance division adjusted operating income stood at $74m compared to $137m in the year-ago quarter.

The International Insurance segment reported adjusted operating income of $606m for the first quarter of 2012, against $628m during the corresponding quarter last year.

As of 31 March 2012, assets under management totaled $943bn, compared to $901bn at 31 December 2011 and $859bn at the end of the first quarter of 2011.