Editing Prudential Financial

{{short description|American life insurance company}}
{{about|the American company|the unrelated British company|Prudential plc|other uses|Prudential (disambiguation)}}
{{Use American English|date=July 2021}}
{{Infobox company
| name = Prudential Financial, Inc.
| logo = Prudential Financial.svg
| logo_size = 256px
| logo_caption = 
| image = Prudential Plaza - Newark - Four Corners.jpg
| image_size = 256px
| image_caption = [[Prudential Plaza]], the headquarters of Prudential Financial in [[Newark, New Jersey]].
| trade_name = The Prudential Insurance Company of America
| type = [[Public company|Public]]
| traded_as = {{ubl|{{nyse|PRU}}|[[S&P 500]] component}}
| foundation = {{start date and age|1875}} in [[Newark, New Jersey]], U.S.
| founder = [[John F. Dryden]]
| hq_location = [[Prudential Plaza]]
| hq_location_city = {{nowrap|[[Newark, New Jersey]]}}
| hq_location_country = U.S.
| locations = 
| area_served = 
| key_people = Andy Sullivan (Chief Executive Officer)
| industry = [[Financial services]]
| products = {{ubl|[[Insurance]] |[[Mortgage loan]]s |[[Investment management]] | [[Asset management]] | [[Wealth management]] |[[Pension]]s }}
| revenue = {{increase}} US$70.41 billion (2024)
| operating_income = {{increase}} US$3.209 billion (2024)
| net_income = {{increase}} US$2.727 billion (2024)
| aum = {{increase}} US$1.512 trillion (2024)
| assets = {{increase}} US$735.6 billion (2024)
| equity = {{increase}} US$27.87 billion (2024)
| owner = 
| num_employees = 38,196
| num_employees_year = 2024
| parent = Prudential Group
| divisions = 
| subsid = [[PGIM]]
| homepage = {{URL|prudential.com}}
| footnotes = <ref name=AR>{{Cite web |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1137774/000113777425000044/pru-20241231.htm |title=Prudential Financial, Inc. 2024 Annual Report (Form 10-K) |date=February 13, 2025 |publisher=U.S. Securities and Exchange Commission}}</ref>
}}
'''Prudential Financial, Inc.''' is an American [[financial services]] company whose subsidiaries provide [[insurance]], [[retirement planning]], [[investment management]], and other products and services to both [[Investor#Retail_investor|retail]] and [[institutional customers]] throughout the [[United States]] and in over 40 other countries. In 2019, Prudential was the largest insurance provider in the United States with $815.1 billion in total assets. The company is included in the  [[Fortune Global 500|''Fortune'' Global 500]] and [[Fortune 500|''Fortune'' 500]] rankings.

==Logo==
The use of Prudential's symbol, [[the Rock of Gibraltar]], began after an advertising agent passed [[Snake Hill|Laurel Hill]], a volcanic neck, in [[Secaucus, New Jersey]], on a train in the 1890s.<ref>{{cite book|url=https://archive.org/details/fieldsofsungrass0000quin|url-access=registration|quote=prudential.|author=Quinn, John R.|title=Fields of Sun and Grass|location=New Brunswick, New Jersey|publisher=Rutgers University Press|date=1997|page=[https://archive.org/details/fieldsofsungrass0000quin/page/271 271]}}</ref>  The related slogans "Get a Piece of the Rock" and "Strength of Gibraltar" are also still quite widely associated with Prudential,<ref>[http://www.prudential.com/view/page/public/9384 America's Most Valuable Rock Collection] Prudential Insurance.</ref> though current advertising uses neither of these. Through the years, the symbol went through various versions, but in 1989, a simplified pictogram symbol of the Rock of Gibraltar was adopted and has been used ever since. The logotype was updated with a proprietary font in 1996. The font, Prudential Roman, was designed by [[Doyald Young]] and John March,<ref>{{Cite book|title=Fonts and Logos|last=Young|first=Doyald|publisher=Delphi Press|year=1999|isbn=0-9673316-09|location=Sherman Oaks, California|pages=257–287}}</ref> based on the [[Century Schoolbook|Century]] font family.<ref>{{cite web|author=Doyald Young |url=http://www.lynda.com/tutorial/62371 |title=Tutorials &#124; Doyald Young Logotype Designer |publisher=Lynda.com |access-date=2012-01-19}}</ref>

In fact, in [[Jacksonville, Florida|Jacksonville]] a two-ton piece of the Rock of Gibraltar was presented to the city and placed in the lobby of the [[Eight Forty One|Prudential Insurance Building]] in 1955 [https://www.atlasobscura.com/places/prudential-buildings-rock-of-gilbraltar]

[[File:Rock of Gibraltar - 1909 Prudential advert.jpg|thumb|An example is this 1909 poster]]

==History==
Started in [[Newark, New Jersey]], in 1875, Prudential was originally called '''The Widows and Orphans Friendly Society''', then the '''Prudential Friendly Society'''. It was founded by [[John F. Dryden]], who later became a U.S. Senator. In the beginning, the company sold only one product, burial insurance. Dryden was the president of Prudential until 1912. He was succeeded by his son [[Forrest F. Dryden]], who was the president until 1922.<ref>{{cite web|url=http://www.fundinguniverse.com/company-histories/The-Prudential-Insurance-Company-of-America-Company-History.html |title=The Prudential Insurance Company of America - Company History |publisher=Fundinguniverse.com |access-date=2012-01-19}}</ref>

[[File:Prudential advert 1909.jpg|thumb|240px|Old advertisement of the Prudential Insurance Co. of America (1909)]]
A history of The Prudential Insurance Company of America up to about 1975 is the topic of the book ''Three Cents A Week'', referring to the premium paid by early policyholders.

At the turn of the 20th century, Prudential and other large insurers reaped the bulk of their profits from industrial life insurance, or insurance sold by solicitors house-to-house in poor urban areas.<ref>Mason, A (1946). ''Brandeis: A Free Man's Life.'' p. 153</ref> For their insurance, industrial workers paid double what others paid for ordinary life insurance, and due to high lapse rates, as few as 1 in 12 policies reached maturity.<ref>''Ibid.'', p. 156</ref> Prominent lawyer and future [[U.S. Supreme Court]] Justice [[Louis Brandeis]] helped pass a 1907 Massachusetts law to protect workers by allowing savings banks to sell life insurance at lower rates.<ref>''Ibid.'' p. 171</ref>

[[File:Prudential Insurance Presents.jpg|right|thumb|Prudential logo from 1948]]
[[File:newark-2004-prudential-threat.jpg|right|thumb|[[Office of Homeland Security|Homeland Security]] secured the [[Prudential Headquarters]] in August, 2004]]

Prudential has evolved from a [[mutual insurance]] company (owned by its policyholders) to a [[joint stock company]] (as it was prior to 1915<ref>{{cite news |title=The Prudential |url=https://archive.org/stream/independen79v80newy#page/426/mode/1up |newspaper=The Independent |date=Dec 14, 1914 |access-date=July 24, 2012}}</ref>). It is now traded on the [[New York Stock Exchange]] under the symbol '''PRU'''. The Prudential Stock was issued and started trading on the [[New York Stock Exchange]] on December 13, 2001.

On August 1, 2004, the [[United States Department of Homeland Security|U.S. Department of Homeland Security]] announced the discovery of terrorist threats against the [[Prudential Headquarters]] in Newark, New Jersey, prompting large-scale security measures that included concrete barriers outside the premises and internal [[X-ray]] machines.<ref>{{cite news|url=https://query.nytimes.com/gst/fullpage.html?res=9906E2D7163CF930A3575BC0A9629C8B63|title=A Surprise at Prudential: It's a Terror Target|work=[[The New York Times]] | first1=Jason | last1=George | first2=Damien | last2=Cave | date=August 3, 2004 | access-date=April 9, 2010}}</ref> In the same year, a joint venture was formed between Prudential and [[China Everbright Limited]].<ref>{{cite web|url=http://www.chinadaily.com.cn/business/2011-01/14/content_11854802.htm |title= Fosun and Prudential hunt together  |date=January 14, 2011 |access-date=Jun 24, 2013}}</ref>

On November 28, 2007, the Prudential [[board of directors]] elected a new CEO, [[John R. Strangfeld]], to replace retiring [[Arthur F. Ryan]].<ref>[https://www.reuters.com/article/sppage012-n28644746-oisbn-idUSN2864474620071129 Prudential Names Strangfeld as CEO and Chairman] Reuters. 29 November 2007.</ref>

==Acquisitions and divestitures==
In 1981, the company acquired [[Bache & Co.]], a [[brokerage firm|stock brokerage]] service that operated as a wholly owned subsidiary until 2003, when Wachovia and Prudential combined their retail brokerage operations into [[Wachovia Securities]], with Prudential a minority stake holder.<ref>{{cite news | url = http://www.nypost.com/p/news/business/item_apJkksEpvQRdNsed1jbxoK;jsessionid=79E97F5CB3FCEEC15528F33B01CD80F7 | title = Global 'Bache' for Pru | last = Boyd | first = Roddy | date = April 30, 2007 | access-date = October 20, 2010 | work = New York Post | archive-url = https://web.archive.org/web/20121020194907/http://www.nypost.com/p/news/business/item_apJkksEpvQRdNsed1jbxoK;jsessionid=79E97F5CB3FCEEC15528F33B01CD80F7 | archive-date = 2012-10-20 | url-status = dead }}</ref><ref>{{cite news | url = http://www.allbusiness.com/company-activities-management/company-structures-ownership/11439391-1.html | title = Prudential, Wachovia Complete Corporate Merger | last = Terry | first = Juliet A. | date = July 18, 2003 | access-date = October 20, 2010 | work = The State Journal}}</ref> In 1999, Prudential sold its healthcare division, Prudential HealthCare, to [[Aetna]] for $1 billion.

On May 1, 2003, Prudential formalized the acquisition of [[Skandia|American Skandia]], the largest distributor of variable annuities through independent financial professionals in the United States. The CEO of American Skandia, [[Wade Dokken (author)|Wade Dokken]], partnered with [[Goldman Sachs]] and sold the division to Prudential for $1.2 billion.<ref>{{cite web|title=Wade Dokken: Bibliography|url=http://wade-dokken.com/biography/|access-date=25 February 2011}}</ref>  The combination of American Skandia variable annuities and Prudential fixed annuities was part of Prudential's strategy to acquire complementary businesses that help meet retirement goals.

In April 2004, the company acquired the retirement business of [[CIGNA Corporation]]. In late 2009, Prudential sold its minority stake in Wachovia Securities Financial Holdings LLC to Wells Fargo & Co.<ref>{{cite news | url = http://www.bizjournals.com/atlanta/stories/2009/12/28/daily35.html | title = Prudential completes sale of Wachovia brokerage stake | work = Atlanta Business Chronicle | date = December 31, 2009 | access-date = October 20, 2010}}</ref>  In 2011, Prudential sold Prudential Bache Commodities, LLC to Jefferies.

In February 2011, the company acquired AIG Edison and AIG Star both in Japan from [[American International Group]], Inc (AIG) for a total of $4.8 billion.<ref>{{Cite web|url=http://www.investor.prudential.com/phoenix.zhtml?c=129695&p=irol-newsArticle&ID=1522113|title=Prudential Financial, Inc. - Investor Relations - News Release|website=www.investor.prudential.com|access-date=2016-04-12}}</ref>  This acquisition bolstered Prudential's operations in Asia while giving cash to AIG to pay back the federal government from its bailout in 2008.

In January 2013, the company acquired the individual life insurance business from [[The Hartford]] for $615 million in cash. The acquisition includes 700,000 in force life insurance policies with a face amount of approximately $135 billion. This move by Prudential brought over additional life insurance revenue.<ref>{{Cite web|url=http://insurancenewsnet.com/oarticle/Prudential-Completes-Acquisition-Of-Hartfords-Individual-Life-Business-a-369796|title=Prudential Completes Acquisition Of Hartford's Individual Life Business|website=InsuranceNewsNet|language=en-US|access-date=2016-04-12}}</ref>

In September 2019, the company agreed to acquire online startup Assurance IQ Inc. for $2.35 billion.<ref>{{Cite news|url=https://www.wsj.com/articles/prudential-to-pay-2-35-billion-for-online-startup-assurance-iq-11567676700|title=Prudential to Pay $2.35 Billion for Online Startup Assurance IQ|last=Scism|first=Leslie|newspaper=Wall Street Journal|date=5 September 2019|language=en-US|access-date=2019-09-05}}</ref> Assurance has underperformed financial expectations, and industry commentators believe Prudential paid too much for the acquisition.<ref>{{cite news |last1=Scism |first1=Leslie |title=How Prudential's Big Tech Bet Went Sour |url=https://www.wsj.com/articles/how-prudentials-big-tech-bet-went-sour-11651202762?mod=hp_lead_pos10 |access-date=29 April 2022 |work=Wall Street Journal |date=29 April 2022}}</ref>

In February 2025, Prudential has considerations for listing its Indian joint venture, ICICI Prudential Asset Management. They would be potentially divesting part of its 49% stake and returning proceeds to the shareholders. This move has boosted Prudential’s shares by over 8%, while ICICI Bank which is holding 51%, reaffirmed its commitment to retaining a majority stake.<ref>{{Cite news |date=February 14, 2025 |title=British insurer Prudential considers listing Indian asset management joint venture |url=https://www.reuters.com/markets/deals/uks-prudential-mulls-listing-indias-icici-prudential-asset-management-2025-02-12/}}</ref>

==Controversies==

===Investor fraud===
During the 1980s and 1990s, [[Prudential Securities Incorporated]] (PSI), formerly a division of Prudential Financial, was investigated by the [[U.S. Securities and Exchange Commission|Securities and Exchange Commission (SEC)]] for suspected fraud.<ref name="sec1993">{{cite web|url=http://www.404.gov/news/digest/1993/dig102193.pdf |title=SEC News Digest, 10-21-1993 |access-date=2010-07-09|archive-url=https://web.archive.org/web/20110721032215/http://www.404.gov/news/digest/1993/dig102193.pdf|archive-date=21 July 2011}}</ref> During the investigation, it was found that PSI had defrauded investors of close to $8 billion, the largest fraud found by the SEC in US history to that point.<ref name="Time">{{cite magazine| url=http://www.time.com/time/magazine/article/0,9171,979495,00.html?iid=chix-sphere | archive-url=https://web.archive.org/web/20121104050522/http://www.time.com/time/magazine/article/0,9171,979495,00.html?iid=chix-sphere | url-status=dead | archive-date=November 4, 2012 | magazine=Time | title=Socking the Rock | date=November 1, 1993 | access-date=April 9, 2010}}</ref> The SEC charged that Prudential allowed rogue executives to cheat customers on a large scale and blithely ignored a 1986 SEC order to overhaul its internal enforcement of securities laws.<ref name="latimes">{{cite web|url=https://www.latimes.com/archives/la-xpm-1993-10-22-fi-48551-story.html |title=Prudential to Pay at Least $371 Million in Fraud Settlement : Securities: In agreeing to the accord, CEO says the brokerage 'fully recognizes the valid claims of investors.' |work=Los Angeles Times|author=Paltrow, Scot |date=22 October 1993 |access-date=20 July 2016}}</ref> In all, some 400,000 individual investors lost money on the deals.<ref name="Time"/>

In 1993, Prudential Financial eventually settled with investors for $330 million.<ref name="latimes" /> Prudential said it would repay customers across the U.S. who lost money on the company's limited partnerships in the 1980s. In addition, the firm was required to pay another $41 million in fines.<ref name="Time" /> The settlement also resolved investigations of the firm by the National Association of Securities Dealers and 49 states, including California, where 52,000 investors lost money in Prudential limited partnerships.<ref name="Time" /><ref name="latimes" /> Further investigation was conducted by the SEC into the executives of the company to determine the extent of the fraud.<ref>{{cite news| url=https://www.nytimes.com/1993/10/29/business/prudential-may-face-civil-suits.html | work=[[The New York Times]] | title=Prudential May Face Civil Suits | first=Kurt | last=Eichenwald | date=October 29, 1993 | access-date=April 9, 2010}}</ref>

===Class action lawsuit over sales practices===

In 1997, Prudential settled a [[class action]] lawsuit by millions of its customers who had been sold unnecessary life insurance by Prudential agents over a 13-year period ending in 1995. The settlement called for Prudential to repay an estimated $2 billion to customers through direct refunds and enhancements to existing policies. The settlement had been the subject of extensive negotiations involving not only Prudential and its customers, but also insurance regulators in 30 states. Prudential had agreed in early 1997 to pay a fine of $35 million to settle state allegations of deceptive sales practices. Prudential acknowledged that for more than a decade its agents had improperly persuaded customers to cash in old policies and purchase new ones so that the agents could generate additional sales commissions.<ref>{{cite news|url=https://www.nytimes.com/1998/07/24/business/appeals-court-panel-upholds-prudential-insurance-settlement.html|title=Appeals Court Panel Upholds Prudential Insurance Settlement|author=Henriques, Diana|date=24 July 1998|work=[[The New York Times]]|access-date=20 July 2016}}</ref>

===US military life insurance lawsuit===
In 2010, various media outlets noted allegations that the Prudential Life Insurance Company was manipulating the payout of [[Servicemembers' Group Life Insurance|life insurance benefits due to the families of American soldiers]] in order to gain extra profits. The company provided life insurance to people in the armed forces under a government contract. Rather than paying the full amount due to the families at once, the company would instead deposit the funds into a Prudential corporate account. These accounts are referred to as 'retained asset accounts' and are essentially an I.O.U. from the company to the payee (in many cases a fallen service members' family). While Prudential was making profits of up to 4.2% in its general account in early 2010, they paid out 0.5% interest in these non-FDIC insured "Alliance" accounts.<ref name=Pays/><ref>{{cite web | url = http://news.prudential.com/article_display.cfm?article_id=5767 | title = Retained asset accounts: Prudential sets the record straight | date = 27 August 2010 | access-date = 14 October 2010 | publisher = Prudential | url-status = dead | archive-url = https://web.archive.org/web/20101016011724/http://news.prudential.com/article_display.cfm?article_id=5767 | archive-date = 16 October 2010 }}</ref> In some cases, when families requested to be sent a full payout in the form of a check, the family was sent a checkbook, rather than the amount due.<ref name=Pays>{{cite news | url = https://www.washingtonpost.com/wp-dyn/content/article/2010/10/02/AR2010100200530.html | title = U.S. pays as Prudential invests troop death benefits | last = Evans | first = David | newspaper = [[The Washington Post]] |agency = Bloomberg News | date = 3 October 2010 | access-date = 14 October 2010}}</ref>

It is not clear if the practice was in violation of law or the contract. In August 2010, the company was sued by a number ohf the bereaved families.<ref>{{cite news | url = https://www.nytimes.com/2010/08/30/us/30prudential.html | title = Families of Dead Soldiers Sue Insurer Over Its Handling of Survivors' Benefits | last = Frosch | first = Dan | work = [[The New York Times]] | date = 30 August 2010 | access-date = 14 October 2010}}</ref> The company's response included an open letter to the military community in which it addressed what it characterized as "misinformation" about the nature of the accounts.<ref name=Military>{{cite news | url = http://www.militarytimes.com/news/2010/09/military-prudential-SGLI-letter-092410w/ | title = Prudential letter responds to SGLI controversy | last = Jowers | first = Karen | date = 24 September 2010 | access-date = 14 October 2010}}</ref><ref>{{cite web | url = http://news.prudential.com/images/20026/AnOpenLettertotheMilitaryCommunity.pdf | date = 23 September 2010 | access-date = 14 October 2010 | title = An Open Letter to the Military Community from Prudential Financial | publisher = Prudential}}</ref> ''[[Army Times Publishing Company|Military Times]]'' noted that prior lawsuits against insurance companies pertaining to the use of retained asset accounts have been dismissed in federal courts without action.<ref name=Military/>

==Ratings, awards and The Prudential Foundation==
Prudential has received a 100% rating on the [[Corporate Equality Index]] released by the [[Human Rights Campaign]] every year since 2003, the second year of the report. In addition, the company is in the "Hall of Fame" of ''Working Mothers'' magazine among other companies that have made their "100 Best Companies for Working Mothers" list for 15 or more years.<ref>{{cite web | url = http://www.workingmother.com/?service=direct/1/ViewArticlePage/dlinkFullArticle&sp=S142&sp=94 | title = Focus on the 100 Best - 2006 Hall of Fame | publisher = Working Mothers | access-date = 26 October 2010}}</ref> It is still achieving that list, as of 2013.<ref>{{cite web | url = http://www.workingmother.com/best-companies/prudential-financial-7 | title =2013 Working Mothers 100 Best Companies: Prudential Financial | publisher = Working Mothers | access-date =1 October 2013}}</ref> According to Business Week's ''The Best Places to Launch a Career 2008'', Prudential Insurance was ranked #59 out of 119 companies on the list.<ref>{{cite web|url=http://bwnt.businessweek.com/interactive_reports/career_launch_2008/index.asp|title=Best Places to Launch a Career 2008|publisher=Business Week|url-status=dead|archive-url=https://web.archive.org/web/20080907235329/http://bwnt.businessweek.com/interactive_reports/career_launch_2008/index.asp|archive-date=2008-09-07}}</ref> In 2007, The Prudential Foundation provided over $450,000 in Prudential CARES Volunteer Grants to 444 nonprofit organizations worldwide.  The Prudential CARES Volunteer Grants Program recognizes individual and team volunteers based on a minimum of 40 hours of volunteer service per individual. Grants range from $250 to $5,000 for each award winner's charitable organization.<ref>{{Cite press release  | title = 2010 Prudential CARES Volunteer Grants Program Overview  | publisher = Prudential| url = http://www.prudential.com/view/page/public/12315 | access-date = 26 October 2010}}</ref> Prudential ranked #69 on the 2017 [[Forbes]] World’s Biggest Public Companies list, calling out their $45.6 billion market value.<ref>{{Cite news|url=https://www.forbes.com/companies/prudential-financial/|title=Prudential Financial on the Forbes Global 2000 List|work=Forbes|access-date=2017-08-10|language=en}}</ref> Prudential ranked No. 52 in the 2018 [[Fortune 500]] list of the largest United States corporations by total revenue.<ref>{{Cite web|url=http://fortune.com/fortune500/list/|title=Fortune 500 Companies 2018: Who Made the List|website=Fortune|language=en-US|access-date=2018-11-10}}</ref> As of 2019, Prudential is the largest insurance provider in the United States with $815.1 billion in total assets.<ref>{{Cite web|url=https://www.valuewalk.com/2019/07/top-10-largest-insurance-companies-total-assets/|title = Top 10 Largest Global Insurance Companies &#91;Listing&#93;| date=25 July 2019 }}</ref>

See also the article on the [[Prudential Spirit of Community Award]].

==See also==
{{Portal|New Jersey|Companies}}
* [[List of United States insurance companies]]
* [[Prudential plc]]—an unrelated [[United Kingdom]]-based company.
** [[Jackson National Life]], the U.S. subsidiary of Prudential plc from 1986 to 2021

==References==
{{Reflist|2}}

==External links==
{{Commons category|Prudential Insurance|Prudential Financial}}
* [http://www.prudential.com/ Official website]
* [http://biz.yahoo.com/ic/40/40377.html Yahoo! – Prudential Financial, Inc. Company Profile]
{{Finance links
| name = Prudential Financial
| symbol = PRU
| sec_cik = PRU
| yahoo = PRU
| google = PRU
}}

{{Major insurance companies}}

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[[Category:Prudential Financial| ]]
[[Category:1875 establishments in New Jersey]]
[[Category:Companies based in Essex County, New Jersey]]
[[Category:Companies based in Newark, New Jersey]]
[[Category:Companies listed on the New York Stock Exchange]]
[[Category:Financial services companies based in New Jersey]]
[[Category:Financial services companies established in 1875]]
[[Category:Former mutual insurance companies]]
[[Category:Life insurance companies of the United States]]
[[Category:Mutual funds of the United States]]
[[Category:Asset management companies]]
[[Category: 2001 initial public offerings]]