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Prudential Retirement Hits Third-Party Stable Value Milestone

^{Published on 2011-01-03 09:10:17 - Market Wire}
 

NEWARK, N.J.--([ BUSINESS WIRE ])--Prudential Retirement, a business unit of Prudential Financial, Inc. (NYSE: PRU), announced today the company has surpassed $10 billion in third-party Stable Value account values in less than two years due in part to solid financial-strength ratings, strong brand identity and extensive experience as a provider of Stable Value products. Prudential Retirement now manages, as of Sept. 30, 2010, more than $12.5 billion in third-party Stable Value assets for a variety of institutional investment-only clients.

"But at the same time, as more and more retirement plan sponsors and participants sought refuge in Stable Value options, the crisis also created a gap in available guarantees."

aThe third-party Stable Value business is essentially a new market for us,a said James King, vice president and head of Prudential Retirementa™s Stable Value Markets Group. aBut ita™s a natural extension of our more than 30 years of expertise as a Stable Value provider for employer-sponsored retirement plans. It also builds upon our long history of delivering product-and-service solutions, in multiple markets, that offer safety of principal, liquidity, and a competitive rate of return.a

Prudentiala™s entry into the third-party Stable Value business in the second quarter of 2009 was fueled in large part by the financial crisis of 2008-09.

aThe financial market uncertainty underscored the importance of Stable Value products as a predictable asafe havena™ for American investors,a said John Barrasso, vice president, Institutional Distribution, at Prudential Retirement. aBut at the same time, as more and more retirement plan sponsors and participants sought refuge in Stable Value options, the crisis also created a gap in available guarantees.a

As the financial crisis deepened, the turmoil in the capital markets created balance-sheet stress on some guarantee providers that either limited their ability to insure more stable value products or caused them to announce an orderly exit of the market. aThat created an opportunity for financially strong firms like Prudential, and we were happy to take advantage of that opportunity,a King added.

King credits Prudentiala™s successful emergence and growth in the third-party stable value business to a number of factors, including the firma™s financial strength, brand awareness and investment acumen. But he also cites other considerations, as well. aThe culture of partnership between different divisions within Prudentiala"between the Retirement organization, Prudential Investment Management, Jennison, and Prudential Trust Companya"has clearly played a critical role in our success, as has the enthusiastic support of Prudentiala™s senior management team,a King added.

Stable Value products are issued by either Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, or The Prudential Insurance Company of America (PICA), Newark, NJ. Both are Prudential Financial companies. Each company is solely responsible for its financial condition and contractual obligations. Guarantees are contingent on the claims paying ability of the issuer.

Prudential Retirement delivers retirement plan solutions for public, private, and non-profit organizations. Services include state-of-the-art record keeping, administrative services, investment management, comprehensive employee investment education and communications, and trustee services. With over 85 years of retirement experience, Prudential Retirement helps meet the needs of nearly 3.7 million participants and annuitants. Prudential Retirement has $194.3 billion in retirement account values as of Sept. 30, 2010. For more information, please visit [ http://www.news.prudential.com/ ]

Prudential Financial, Inc. (NYSE: PRU), a financial services leader, has operations in the United States, Asia, Europe, and Latin America. Prudentiala™s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. In the U.S., Prudentiala™s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit [ http://www.news.prudential.com/ ]