About The Prudential Insurance Company of America
Prudential Financial wants to make sure its position near the top of the life insurance summit is set in stone. Prudential, known for its Rock of Gibraltar logo, is one of the top US life insurers and one of the largest life insurance companies worldwide. The firm is perhaps best known for its individual life insurance, though it also sells group life and disability insurance, as well as annuities. Prudential also offers investment products and services, including asset management services, mutual funds, and retirement planning. Prudential has about $1.5 trillion in assets under management. It generates more than 35% of revenue in the US.
Prudential operates through five primary divisions.
The second-largest division, also at about 35% of revenue, is International Insurance. That division provides individual life, group insurance, and retirement products, including certain health policies, in Japan, Korea, Taiwan, Brazil, Argentina and Mexico.
Its US Workplace Solutions division bringing in more than 30%of revenue — comprises the Retirement and Group Insurance segments. The Retirement segment provides investment and income products and services to retirement plan sponsors. The Group Insurance segment offers a full range of group life, long-term and short-term group disability, and group corporate-, bank-, and trust-owned life insurance in the US. It primarily sells these to institutional clients.
The US Individual Solutions division (more than 15% of revenue) includes the Individual Life and Individual Annuities segments. The division distributes variable life, term life, and universal life policies, as well as individual variable and fixed annuity products largely to middle-class, affluent, and wealthy clients in the US.
The final two divisions, which together account for about 15% of revenue, are Closed Block (in-force policies and annuities — issued prior to the group's demutualization in 2001 — as well as related assets and liabilities) and PGIM (investment management services).
Overall, premiums account for about 50% of revenue, followed by investment income (about 25%); fees and gains on investments generate most of the rest.
Prudential's US operations account for about 35% of sales. It also offers international products in regions including Asia, Latin America, and Europe.
Prudential has home offices (and hundreds of field offices) in about 60% Asian countries and about 35% European countries, as well as Mexico, Brazil, Argentina, and Australia.
Sales and Marketing
Prudential's group insurance products are marketed through an in-house sales force, while its retirement products are primarily sold through third-party financial advisors, benefit consultants, and brokers. Individual life products are offered through third-party channels including independent brokers, banks, general agencies, investment consultants, and producer groups.
Revenue for Prudential has grown over the last five years – up 13% since 2015 – as it continues to benefit from its diverse mix of complementary businesses. Net income has been fluctuating during that time.
In 2019 the company reported revenue of $64.8 billion, up 3% from the prior year. The retirement business of the US Workplace segment saw revenue jump nearly $1.3 billion, mostly because of new pension risk transfer transactions.
Net income in 2019 rose 3% to $4.2 billion from $4.1 billion the prior year. The $112 million increase reflected favorable variances of $1.6 billion from adjustments to reserves, $954 million from unrealized gains from equity securities, and $642 million from income in the current period from Divested and Run-off Businesses.
Cash at the end of 2019 was $16.5 billion, an increase of $979 million from the prior year. Cash from operations contributed $19.6 billion to the coffers, while investing activities used $17 billion. Financing activities used another $1.6 billion. Prudential's primary cash uses in 2019 were short-term investments, acquisitions, acquisition of common stock, and repayments of notes issued by consolidated VIEs.
Prudential's strategy centers on its mix of high-quality protection, retirement and investment management business which creates growth potential due to earnings diversification and the opportunity to provide customers with integrated cross-business solutions, as well as capital benefits from a balanced risk profile.
The company is also investing more in digital, data, and technology capabilities that is hopes to leverage across all its businesses to improve the customer experience. In 2019, Prudential acquired Assurance IQ, a leading consumer solutions platform for health and financial wellness needs. With Assurance IQ, it leverages data science and technology to distribute third-party life, health, Medicare and property and casualty products directly to retail shoppers primarily through its digital and independent agent channels.
Prudential is also selling Prudential of Taiwan to Taishin Financial, a leading Taiwan-based financial institution. This transaction is consistent with Prudential's strategic focus internationally on Japan and higher-growth emerging markets around the world. PGIM, the asset management business of Prudential Life, will remain active in Taiwan.
Additionally, PGIM Real Estate has completed its sale of 11 senior housing properties located throughout the Northeast and Mid-Atlantic U.S. PGIM has capitalized on powerful demographic trends driving the senior housing industry nationally, which then provides a compelling return for its investors.
Mergers and Acquisitions
A leading consumer platform for health and financial wellness needs. Assurance, which will be a subsidiary of the company, adds a large and growing direct-to-consumer channel to Prudential's financial wellness businesses.
In 2019, Prudential completed the acquisition of Assurance IQ, Inc. ("Assurance IQ"), a leading consumer solutions platform that offers a range of solutions that help meet consumers' financial needs.
In 2019, Prudential acquired Administradora de Fondos de Pensiones Colfondos S.A. ("AFP Colfondos"), a leading provider of retirement services in Colombia.
Prudential traces its roots to 1875 when insurance agent John Fairfield Dryden establishes the Prudential Friendly Society. It was renamed The Prudential Insurance Company of America a decade later and adopted the Rock of Gibraltar as its company logo. It began trading on New York Stock Exchange in 2001.
751 Broad St
Newark, NJ 07102-3754
Phone: 1 (973) 802-6000
Employer Type: Privately Owned
Senior Vice President: Richard Carrell
Evp Business Dev: Paul Chong
Exec V Pres Opers: Robert C Golden
Employees (This Location): 4,050
Employees (All Locations): 30,000
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