Full Description

Prudential Financial, Inc. (Prudential Financial) is a financial services company. The Company has operations in United States, Asia, Europe and Latin America. Through its subsidiaries and affiliates, it offers an array of financial products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. It provides these products and services to individual and institutional customers through distribution networks in the financial services industry. The businesses of Prudential Financial are separated into the Financial Services Businesses and the Closed Block Business. The Financial Services Businesses comprises its United States Retirement Solutions and Investment Management division, United States Individual Life and Group Insurance division, and International Insurance and Investments division as well as its corporate and other operations. The Closed Block Business comprises the assets and related liabilities of the Closed Block described below and certain related assets and liabilities. In October 2008, the Company acquired MullinTBG. MullinTBG companies, including MullinTBG Insurance Agency Services, LLC, MullinTBG Advisors and related entities are part of Prudential Retirement, a business of the Company.

Financial Services Businesses

The Financial Services Businesses comprises the Company’s Insurance division, Investment division, and International Insurance and Investments division, as well as its Corporate and Other operations. The Insurance division comprises the Individual Life, Individual Annuities and Group Insurance segments. The Investment division comprises the Asset Management, Financial Advisory and Retirement segments. The International Insurance and Investments division comprises the International Insurance and International Investments segments. Its primary insurance products are variable life, term life and universal life.

The Company offers a number of individual variable life insurance products that provide a return linked to an underlying investment portfolio designated by the policyholder while providing the policyholder with the flexibility to change both the death benefit and premium payments. Each product provides for the deduction of charges and expenses from the customer’s investment account. It offers a range of term life insurance products. The Company also offers term life insurance that provides for a return of premium if the insured is alive at the end of the coverage period. It offers universal life insurance products that feature a market rate fixed interest investment account, flexible premiums and a choice of guarantees against lapse. It offers a non-participating whole life insurance product with guaranteed fixed level premiums and guaranteed cash values, which is principally used in the group term to whole life conversion market.

The Company’s Individual Annuities segment manufactures and distributes individual variable and fixed annuity products, primarily to the United States mass affluent market. Its annuity products are distributed through a diverse group of independent financial planners, wirehouses and banks, as well as through Prudential Agents. Its Prudential Agents distribute variable annuities with proprietary and non-proprietary investment options, as well as fixed annuities. Its individual annuity products are also offered through a range of third party channels, including independent brokers, general agencies, producer groups, wirehouses and banks.

The Company offers group life insurance products, including basic and supplemental term life insurance to employees, optional term life insurance to dependents of employees and universal life insurance. It also offers group variable universal life insurance, voluntary accidental death and dismemberment insurance and business travel accident insurance. It also offers a living benefits option that allows insureds that are diagnosed with a terminal illness to receive a portion of their life insurance benefit upon diagnosis, in advance of death, to use as needed.

The Company’s offer short- and long-term group disability insurance, which protects against loss of wages due to illness or injury. Short-term disability generally provides coverage for three to six months, and long-term disability covers the period after short-term disability ends. It also offers absence management and integrated disability management services in conjunction with a third party. It offers individual and group long-term care insurance and group corporate- and trust-owned life insurance. Long-term care insurance protects the insured from the costs of an adult day care center, a nursing home or similar live-in care situation or a home health or a personal care aide. Group corporate- and trust-owned life insurance are group variable life insurance contracts typically used by large corporations to fund benefit plans for retired employees.

The Investment division conducts its business through the Asset Management, Financial Advisory and Retirement segments. The Asset Management segment provides an array of investment management and advisory services, mutual funds and other structured products. These products and services are provided to the public and private marketplace, as well as its Insurance division, International Insurance and Investments division and Retirement segment. The products and services offered in the Asset Management segment include Public Fixed Income Asset Management; Public Equity Asset Management; Private Fixed Income; Commercial Mortgage Origination, Servicing and Securitization; Real Estate Asset Management; Proprietary Investments, and Mutual Fund and Wrap-fee Products.

The Retirement segment, which the Company refers to in the marketplace as Prudential Retirement, provides retirement-plan products and services to public, private and not-for-profit organizations. Its full service line of business provides recordkeeping, plan administration, actuarial advisory services, tailored participant education and communication services, trustee services, and institutional and retail investment funds. For clients with both defined contribution and defined benefit plans, the Company offers integrated defined benefit/defined contribution recordkeeping services. For participants leaving its clients’ plans, it provides a range of rollover products through its broker-dealer and bank. In addition, in the institutional investment products line of business, the Company offers guaranteed investment contracts (GICs) funding agreements, institutional and retail notes, structured settlement annuities, and group annuities for defined contribution plans, defined benefit plans, non-qualified entities and individuals.

The International Insurance and Investments division conducts its business through the International Insurance and International Investments segments. International Insurance segment manufactures and distributes individual life insurance products to the mass markets in Japan, Korea and other foreign countries through its Life Planner operations. In addition, Prudential Financial offers similar products to the middle-income market across Japan through Life Advisors, who are associated with its separately operated Gibraltar Life Insurance Company, Ltd. (Gibraltar Life) operations. The Company offers various traditional whole life, term life and endowment policies, which provide for payment on the earlier of death or maturity, and retirement income life insurance products that combine an insurance protection element similar to that of whole life policies with a retirement income feature. In some of its operations, Prudential Financial also offers certain health products with fixed benefits, as well as annuity products, primarily United States dollar-denominated fixed annuities in Gibraltar Life. It also offers variable life products in Japan, Korea and Taiwan, and interest-sensitive life products in Japan, Taiwan and Argentina.

Closed Block Business

The Company ceased offering domestic participating individual life insurance products, under which policyholders are eligible to receive policyholder dividends reflecting experience. The Closed Block is 90% reinsured, including 17% by a wholly owned subsidiary of Prudential Financial.