Assurance IQ ends losing streak

After twelve consecutive quarters of losses totaling $381 million, Assurance IQ has finally turned a profit.

Prudential shared its Q4 2022 results today, reporting an adjusted operating income of $29 million in the current quarter for Assurance IQ, compared to a net operating loss of $10 million in the year-ago quarter. This increase reflects higher Medicare commission revenue and lower expenses.

Prudential also shared some negative news. The fourth quarter included a goodwill impairment charge of $903 million pre-tax and $713 million after-tax for the three months and year ended December 31, 2022, reflecting a decline in the fair value of Assurance IQ as a result of lower expected earnings growth, a higher discount rate applied to future cash flows, and lower peer valuations. This is the second time Prudential is reducing the value of Assurance IQ – in 2021, the life insurer disclosed a goodwill impairment that resulted in a charge of $1,060 million pre-tax and $837 million after-tax.