Introduction
Prudential Financial is one of the largest financial companies in the world. It has over $1 trillion in assets under management and operates in more than 40 countries. The company offers a variety of financial products and services including life insurance, annuities, mutual funds, retirement-related services and investment management.
Prudential Financial (PRU) is a Fortune 500 insurance and financial services company in the United States. PRU offers a wide range of products, including life insurance, annuities, mutual funds, retirement-related services and investment management.
PRU was founded by John Dryden Prudential in 1875 as a life insurance company with $1 million worth of capital underwriting policies for railway employees in Newark, New Jersey. The company branched out into commercial paper business during 1885 before expanding its operations to other cities like Chicago and Cleveland over the next several decades. During this time period it also started offering additional financial products such as mutual funds through its subsidiary PruCare Asset Management Inc., which was renamed Prudential Trust Co., back then…
Prudential’s main operations include the following categories:
Prudential’s main operations include the following categories: Individual Life Insurance, Group Life & Disability, and Individual Annuities.
Individual Life Insurance: This is Prudential’s most important business unit, which generates most of its revenue. The company is a major competitor in the life insurance market with American International Group (AIG) and MetLife Inc (MET). Prudential offers traditional term life insurance policies, universal life plans that allow customers to take tax-free loans against their policy value, whole life policies that combine insurance with investment features; deferred annuities; fixed indexed annuities (FIAs); variable annuities; guaranteed investment contracts (GICs), and private mortgage insurance.
Group Life & Disability: This unit sells group disability income protection plans for employers and individual disability income protection products for individuals who want to protect their income if they cannot work due to illness or injury. The company also sells medical stop loss coverage through employer self-insurance programs when group disability benefits are exhausted by medical costs incurred under the terms of these programs. In addition to selling products directly through agents licensed in each state where it does business along with independent agents who have agreements in place not affiliated with other companies such as State Farm Insurance Company®, GEICO Insurance®, Farmers Mutual Automobile Company® etc., Prudential often partners with other insurers like UnitedHealth Group Incorporated® on various projects related
Individual life insurance – In the United States, individual life insurance accounted for $1.435 billion of PRU’s total revenue in 2014. It was responsible for 31% of the company’s total revenue that year. The company provides whole life and term life insurance to customers through independent agents or through its subsidiary, The Prudential Insurance Company of America. This business has been part of PRU since its founding in 1875 when it was known as The Widows and Orphans Friendly Society.
Individual life insurance accounted for $1.435 billion of PRU’s total revenue in 2014. It was responsible for 31% of the company’s total revenue that year. The company provides whole life and term life insurance to customers through independent agents or through its subsidiary, The Prudential Insurance Company of America. This business has been part of PRU since its founding in 1875 when it was known as The Widows and Orphans Friendly Society.
Group life and disability – Group life and disability accounts for 29% of PRU’s total revenue in 2014 at $1.318 billion. It has been a strong performer for the company for more than 50 years.
Group life and disability insurance is a type of life insurance that provides a lump-sum payment to the policy owner in the event that the insured dies. It is often sold to groups of people, such as employees or members of a union, and can be used for retirement planning. Group policies are usually more affordable than individual policies because they allow insurers to spread out their risk by selling policies to large groups of people.
Prudential Financial Business Model – Revenue Mix (2014)
Individual annuities – Individual annuities account for 9% of PRU’s total revenue at $395 million in 2014. They have been a profitable product line for PRU since 1938 when it entered this market with its introduction of Pruco Upride Variable Annuity – one of the first variable annuities ever offered to retail customers.
Individual annuities – Individual annuities account for 9% of PRU’s total revenue at $395 million in 2014. They have been a profitable product line for PRU since 1938 when it entered this market with its introduction of Pruco Upride Variable Annuity – one of the first variable annuities ever offered to retail customers.
Pruco Lifeco is responsible for managing and maintaining these products, which are eligible to be purchased through any channel (including direct response and agent-assisted sales), as well as through PRU’s own websites.
Conclusion
Prudential Financial is one of the largest insurance companies in the world. It provides life and disability insurance, mutual funds, annuities, 401(k) plans and other investment products. PRU’s business model is based on diversification across product lines to minimize risk and maximize returns for investors.
