Profile: Prudential Financial Inc (PRU.N)
2 Dec 2016
Prudential Financial, Inc., incorporated in 1999, is a financial services company. The Company, through its subsidiaries and affiliates, provides a range of financial products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. The Company's divisions include U.S. Retirement Solutions and Investment Management division; U.S. Individual Life and Group Insurance division, and International Insurance division. The Company also has corporate and other operations, which include corporate items and initiatives that are not allocated to its business segments and divested businesses. It offers products and services to individual and institutional customers through third-party distribution networks. The Company has approximately $1.184 trillion of assets under management (AUM), and has operations in the United States, Asia, Europe and Latin America. Its investment portfolio consists of public and private fixed maturity securities, commercial mortgage and other loans, equity securities and other invested assets.
U.S. Retirement Solutions and Investment Management Division
The U.S. Retirement Solutions and Investment Management division consists of its Individual Annuities, Retirement and Asset Management segments. The Individual Annuities segment manufactures and distributes individual variable and fixed annuity products, primarily to the United States mass affluent market. The Company offers variable annuities that provide its contract holders with tax-deferred asset accumulation together with a base death benefit and a suite of optional guaranteed living benefits (including versions with enhanced guaranteed minimum death benefits), and annuitization options. The Company also offers immediate annuities and variable annuities without guaranteed living benefits. The Company offers the Prudential Immediate Income Annuity, which is a fixed single immediate annuity that provides fixed payments over a specific time period, and the Prudential Premier Investment Variable Annuity, which offers tax-deferred asset accumulation, annuitization options and an optional death benefit that guarantees the contract holder's beneficiary a return of total purchase payments made to the contract, adjusted for any partial withdrawals, upon death.
The Retirement segment, which the Company refers to in the marketplace 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 Company's full service business provides recordkeeping, plan administration, actuarial advisory services, tailored participant education and communication services, trustee services, and institutional and retail investments. The Company services defined contribution, defined benefit and non-qualified plans, and for clients with combinations of these plans, it offers integrated recordkeeping services. The Company also provides certain brokerage services through its broker-dealer, 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 solutions and other payout annuities, including 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 Company's full service business offers plan sponsors and their participants a range of products and services to assist in the delivery and administration of defined contribution, defined benefit and non-qualified plans, including recordkeeping and administrative services, investment offerings and consulting services to assist plan sponsors in managing fiduciary obligations. It also offers fee-based products, through which customer funds are held in a separate account, retail mutual funds, institutional funds, or a client-owned trust. In addition, the Company offers guaranteed minimum withdrawal benefits associated with certain defined contribution accounts, and hedge certain of the related risks utilizing externally purchased hedging instruments. It also offers various general and separate account stable value products and other fee-based separate accounts, as well as retail mutual funds and institutional funds advised by affiliated and non-affiliated investment managers.
The Company's service fee-based advisory offerings are supported by participant communications and education programs, and a range of plan consulting services, including non-discrimination testing, plan document services, signature-ready documents for required filings, and full actuarial support for defined benefit plans. The Company also provides services, which include non-qualified deferred compensation plan administration, including executive benefit solutions and financing strategies, investment advisory services, and merger and acquisition support. The Company's institutional investment products business offers products to the payout annuity and stable value markets. It offers products designed to provide a predictable source of monthly income, generally for the life of the participant. Its pension risk transfer products include portfolio-protected products and a longevity reinsurance product. Its portfolio-protected products are non-participating group annuity contracts, which it issue to pension plan sponsors. Its longevity reinsurance product is a reinsurance contract from which it earns a fee for assuming the longevity risk of pension plans that have been insured by third-parties, typically with monthly net settlements of premiums and benefits. Its legacy products include structured settlements, voluntary income products and other group annuities, which fulfill the payment guarantee needs of the personal injury lawsuit settlement market, the distribution needs of defined contribution participants and the payment obligations of defined benefit plans, respectively. It manufactures investment only products for use in retail and institutional capital markets and qualified plan markets. Its primary stable value product offerings are investment only wraps through which customers' funds are held in a client-owned trust. It also offers investment only general account products in the form of GICs and funding agreements.
The Asset Management segment provides an 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. These products and services are provided to third party clients, as well as other Prudential businesses. It also invests in asset management and investment distribution businesses in targeted countries, including through investments in operating joint ventures, to expand its customer base outside the United States and to increase its global assets under management.
The Company offers asset management services for public and private fixed income, public equity and real estate, as well as commercial mortgage origination and servicing, and mutual funds and other retail services through eight businesses, which include Prudential Fixed Income, Jennison Associates, Quantitative Management Associates, Prudential Capital Group, PGIM Real Estate Finance, PGIM Real Estate, Prudential Investments and Prudential International Investments.
U.S. Individual Life and Group Insurance Division
The U.S. Individual Life and Group Insurance division conducts its business through the Individual Life and Group Insurance segments. 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. Its primary insurance products are term life, variable life, guaranteed universal life and all other universal life. The Company's term life insurance products provide coverage for a specified time period. It also offers term life insurance that provides for a return of premium if the insured is alive at the end of the level premium period. The Company offers a range of individual variable life insurance products that provide the policyholder to change both the death benefit and premium payments, and also provide the potential to earn returns linked to an underlying investment portfolio that the policyholder selects. It offers universal life insurance products that feature flexible premiums and a crediting rate that it determines, subject to certain contractual minimums. It also offers universal life insurance products that allow the policyholder to allocate all or a portion of their account balance into an index account.
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 primarily to institutional clients for use in connection with employee plans and affinity groups. The Company also sells accidental death and dismemberment, and other ancillary coverages, as well as provides plan administrative services in connection with insurance coverages. The Company's portfolio of group life insurance products consists of employer-paid (basic) and employee-paid coverages, including term life insurance for employees and employees' dependents, as well as group universal life insurance. It offers group variable universal life insurance; basic and voluntary accidental death and dismemberment insurance; business travel accident insurance; a critical illness product, and an accident insurance product. It also offers waiver of premium coverage where required premiums are waived in the event the insured suffers a qualifying disability. It also offers short- and long-term group disability insurance, which protects against loss of wages due to illness or injury, as well as plan administrative services and absence management services.
International Insurance Division
The International Insurance division conducts its business through the International Insurance segment. The International Insurance segment manufactures and distributes individual life insurance, retirement and related products, including certain health products with fixed benefits. The Company provides these products to the middle income market across Japan through multiple distribution channels, including banks, independent agencies and Life Consultants associated with its Gibraltar Life Insurance Company, Ltd. (Gibraltar Life) operations. The Company also provides similar products to the mass affluent and affluent markets through its Life Planner operations in Japan, Korea and other countries outside the United States, including Taiwan, Italy, Brazil, Argentina, Poland and Mexico. It classifies products into four general categories: life insurance protection, accident and health, retirement and annuity.
The Company offers various traditional whole life products that provide either level or increasing coverage, and offers limited or lifetime premium payment options. The Company also offers increasing, decreasing and level benefit term insurance products that provide coverage for a specified time period, as well as protection-oriented variable universal life products. It offers various retirement products, including endowments, savings-oriented variable universal life and retirement income.
Prudential Financial Inc
751 BROAD ST
NEWARK NJ 07102-3714
Company Web Links
- Fitch Upgrades Prudential Financial, Inc.'s Ratings
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- BRIEF-Prudential Financial raises stake in DHFL Pramerica Life Insurance to 49 pct
- BRIEF-Prudential Financial provides update on assets under management
- Prudential loses bid to dismiss lawsuit over mutual fund fees