Profile: Prudential Financial Inc (PRU.N)
27 Mar 2015
Prudential Financial, Inc., incorporated in 1999, is a financial services company. The Company offers financial products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. The Company’s businesses of are separated into the Financial Services Businesses, which comprises of United States Retirement Solutions and Investment Management division, United States Individual Life and Group Insurance division, and International Insurance division as well as corporate and other operations, and the Closed Block Business, which comprises the assets and related liabilities of the Closed Block and related assets and liabilities. The Company has its operations in United States, Asia, Europe and Latin America.
Financial Services Business
The Financial Services Businesses are comprised of three divisions, containing six segments, and the Company’s corporate operations. The United States Retirement Solutions and Investment Management division is comprised of the Individual Annuities, Retirement and Asset Management segments. The United States Individual Life and Group Insurance division is comprised of the Individual Life and Group Insurance segments. The International Insurance division is comprised of the International Insurance segment.
The company offer variable annuities that provide its customers with tax-deferred asset accumulation together with a base death benefit and a suite of optional guaranteed death and living benefits and annuitization options. As of 2013, the Company launched the Prudential Defined Income Variable Annuity (PDI) to complement the variable annuity products, which provides for guaranteed lifetime contract holder withdrawal payments. Its Retirement segment, known as Prudential Retirement, provides retirement investment and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors. The service business provides recordkeeping, plan administration, actuarial advisory services, tailored participant education and communication services, trustee services and institutional and retail investments. The Company also provides certain brokerage services through Prudential Investment Management Services LLC, and trust services through Prudential Bank & Trust, FSB (PB&T) a limited purpose trust-only institution. Its institutional investment products business offers investment-only stable value products, pension risk transfer products, guaranteed investment contracts (GICs), funding agreements, institutional and retail notes, structured settlement annuities and other group annuities for defined contribution plans, defined benefit plans, non-qualified plans, and individuals. The Asset Management segment provides a broad array of investment management and advisory services by means of institutional portfolio management, retail funds management, private lending and asset securitization activity and other structured products.
The Individual Life segment manufactures and distributes individual variable life, term life and universal life insurance products primarily to the United States mass middle, mass affluent and affluent markets. The Company considers households with investable assets or annual income in excess of $100,000 to be mass affluent and households with investable assets in excess of $250,000 to be affluent in the United States market. The Group Insurance segment offers a range of group life, long-term and short-term group disability, and group corporate-, bank- and trust-owned life insurance in the United States to institutional clients for use in connection with employee plans and affinity groups. It also sells accidental death and dismemberment and other ancillary coverage, and provide plan administrative services.
The Company’s International Insurance segment manufactures and distributes individual life insurance, retirement and related products, including certain health products with fixed benefits. It provide products to income market across Japan through multiple distribution channels including banks, independent agencies and Life Consultants, and to Korea and other countries outside the United States through its Life Planner operations.
Closed Block Business
The Closed Block forms the principal component of the Closed Block Business. As of December 31, 2013, total attributed equity of the Closed Block Business represented approximately 4% of the Company’s total attributed equity. The Closed Block Business consists of the Closed Block Assets, Surplus and Related Assets deferred policy acquisition costs and other assets in respect of the policies included in the Closed Block and, with respect to liabilities, the Closed Block Liabilities and other liabilities associated with Surplus and Related Assets; dividends received from Prudential Insurance, certain tax benefits and reinvestment proceeds thereof, the principal amount of the IHC debt, related unamortized debt issuance costs and hedging activities, and a guaranteed investment contract, and within Prudential Financial, the Class B stock and associated activity. The Closed Block Assets consist of assets allocated to the Closed Block including fixed maturities, equity securities, commercial loans and other long- and short-term investments; cash flows from such assets; assets resulting from the reinvestment of such cash flows; cash flows from the Closed Block Policies, and assets resulting from the investment of cash flows from the Closed Block Policies. The Closed Block Liabilities are Closed Block Policies and other liabilities of the Closed Block associated with the Closed Block Assets.
The earnings of the Closed Block are reported as part of the Closed Block Business, although no cash flows or assets of the Closed Block accrue to the benefit of the holders of Common Stock or Class B Stock. The Company maintains diversified investment portfolios which consist of public and private fixed maturity securities, commercial mortgage and other loans, equity securities and other invested assets. As of December 31, 2013, the general account investment portfolio for the Financial Services Businesses was approximately $325.3 billion and for the Closed Block Business approximately $66.0 billion. Prudential Financial has two classes of common stock.
Prudential Financial Inc
751 BROAD ST
NEWARK NJ 07102-3714