Prudential Financial

Prudential Financial, Inc. is a global financial services leader and one of the largest financial services companies in the world. The company provides insurance, investments, retirement and other financial services to more than 39 million people around the world. It has more than $1.3 trillion in assets under management and employs more than 40,000 people in nearly 40 countries.

Prudential Financial was founded in 1875 and is headquartered in Newark, New Jersey. As one of the oldest and most recognizable names in the financial services industry, Prudential has a long and successful history of helping customers meet their financial goals. In addition to its core insurance and financial services businesses, Prudential also offers asset management, commercial banking, and venture capital services.

The company provides a range of products and services for individuals, businesses and organizations, including life insurance, annuities, mutual funds, retirement plans, 401(k) plans, estate planning, college savings plans, and more. Prudential also offers speciality products, such as long-term care insurance, disability insurance and group insurance.

In 1875, John Fairfield Dryden, an insurance agent, founded Prudential Financial as the Prudential Friendly Society. Initially named The Widows and Orphans Friendly Society, the company started in Newark, New Jersey. In 1881, after the death of Noah Blanchard, the directors elected John Dryden as the president by a one-vote margin. Prudential expanded to neighbouring states in 1909 and opened its first international branch in Toronto, Canada.

Prudential's advertising department created the company's long-standing logo and slogan in 1896. The logo featured the Rock of Gibraltar with the words "The Prudential has the strength of Gibraltar," which expressed the solidity of the products that the company offered. In 1911, the company's insurance in force totalled $2 billion, and Dryden's son, Forrest Dryden, followed him as president.

Prudential faced a significant payout of over $20 million for flu-related deaths as a result of the 1918–19 influenza pandemic. Despite this, the company's assets exceeded $5.6 billion when the CEO resigned in 1921. The corporate assets rose from $259 million to $830 million, and Forrest F. Dryden succeeded his father as the president until 1922. Edmund Whittaker, an actuary who joined the company, conceived of actuaries as the "engineers of insurance" and created the group sales department in 1928.

Prudential saw a boost in revenue in the Los Angeles region by 20 per cent after the first regional sales office was opened in 1948. The company began purchasing common stocks in 1950 after permissive legislation opened up this opportunity. In 1951, the district agents voted to go on strike, making it the first formal job action by a white-collar union in the nation. Robert C. Winters succeeded the CEO and chairman of the board in 1953.

Prudential ceased to buy bonds on the market in 1958 and instead negotiated separate loans with corporations for higher rates, providing the corporations with more rapid, less costly, and more flexible financing. In 1964, Prudential sold its first group variable annuity policy and had 3% of its assets in common stock, realizing $75 million in capital gains. The company surpassed the Metropolitan as the world's largest insurance company in 1967.

Prudential established PIC Realty Corporation as a wholly owned subsidiary in 1968, which owned and leased commercial real estate through joint ventures with established real estate developers. The company formed Prudential Reinsurance Company (PRURE) in 1973, which insured other insurance companies against extraordinary losses. Prudential purchased CNA Nuclear Leasing, and renamed it, Prudential Lease, in 1974.

In 1981, Robert Beck purchased the Bache investment and brokerage house, which was his most controversial acquisition. The customers abandoned the tax shelters when the 1986 tax reform act eliminated their rationale for them. In 1991, Ball resigned after losses totalling more than $250 million and lawsuits relating to selling real estate limited partnerships. In 1994, the board brought in new "outsider" management after Winters's retirement. Elizabeth Krupnick took over as chief communications officer and inherited one of the most identifiable icons in advertising: the rock. Prudential's insurance operations lost $907 million as a result of the Northridge, California, earthquake. The profits reached nearly $800 million in 1993.

In 1996, Prudential faced an investigation that involved regulators from 45 states, which resulted in a $35 million fine and a restitution plan for 10.7 million policyholders. The settlement was approved by a New Jersey district court judge in 1997 and eventually led to an excess payment of $2 billion. Despite this setback, in 1998, Prudential ranked as the largest life insurer in the United States in terms of assets. The company's earnings mainly came from the sale of insurance, which grew by 21 percent, while the rest came from investment and securities businesses.

By 2000, Prudential had more than 50,000 employees in over 20 countries and was considered one of the top 2000 largest public companies in the world. The company gained full ownership of its joint venture with Mitsui Trust & Banking, Prudential-Mitsui Trust Investments Co. In 2001, Prudential became a public company after converting to public ownership, and it adopted its current name.

The company continued to grow, acquiring a 50 percent stake in Oppenheim Funds Trust GmbH and Oppenheim Investment Management International in 2002. However, it also faced threats from terrorism, with the United States Department of Homeland Security announcing in 2004 the discovery of terrorist threats against Prudential's headquarters in Newark, New Jersey.

In 2005, Prudential completed the purchase of a company and became the third-largest provider of adviser-sold variable annuity products in the United States. It also pledged to cut nearly $600 million in expenses and achieve a 12 percent return on equity. In 2006, Prudential acquired Allstate Financial's variable annuity business for $591 million.

In 2007, Prudential elected a new CEO, John R. Strangfeld, to replace Arthur F. Ryan. Despite the 2007 financial crisis, Prudential did not seek funds from the Troubled Asset Relief (TARP) due to its strong capital position. In 2011, the company launched its first-ever global advertising campaign, “The Power of Knowing,” to emphasize its commitment to helping customers meet their financial goals.

Prudential continued to expand its global asset management capabilities, acquiring the asset management business of MFS Investment Management for $1.7 billion in 2013. In 2014, it acquired the retail annuity business of AIG for $2.2 billion. The company launched its first-ever global digital platform, Prudential.com, in 2015 to improve customer engagement and access to financial services.

In 2016, Prudential completed the acquisition of Hartford’s individual life insurance business for $1.45 billion, creating one of the largest life insurers in the U.S. It launched its first-ever global mobile app in 2017, allowing customers to access their financial information on the go.

Prudential continued its commitment to the retirement savings business, acquiring the U.S. annuity and life insurance businesses of Allianz Life for $2.2 billion in 2018. In 2019, the company established its first-ever global employee benefits business, Prudential Global Benefits Solutions, to better serve its customers' needs.

In 2020, Prudential launched Prudential Growth Investors, a venture capital fund focusing on early-stage technology companies. It also completed the acquisition of Assurance IQ, Inc., an AI-powered digital health platform, in order to provide digital health solutions to customers.

Prudential Financial is a leading provider of insurance, investment management, and other financial products and services. The company's mission statement is to “help customers achieve financial prosperity and peace of mind.”

This mission is reflected in the company's commitment to offering a range of financial solutions that meet the needs of customers at every stage of their lives.

Prudential's vision statement is to be "the undisputed leader in helping individual and institutional customers grow and protect their wealth." This vision reflects the company's focus on providing innovative and effective financial solutions to its customers. 

Prudential seeks to achieve this vision by offering a diverse range of financial products and services, including life insurance, retirement planning, investment management, and other financial planning tools.