Printer Friendly
The Free Library
22,728,043 articles and books

A big boost: the buyout of Allstate's variable annuity book makes Prudential the second-largest U.S. life insurer based on admitted assets, bumping AIG to third.



Prudential Prudential is the name of two different companies and buildings named after them:

Companies:
  • Prudential plc is a United Kingdom-based financial services company.
  • Prudential Financial, Inc.
 Financial Inc.'s acquisition in June June: see month.  2006 of the variable annuity Variable Annuity

An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio.
 business of Allstate This article is about the American insurance company. For the line of automobiles, see Allstate (automobile).

The Allstate Corporation NYSE: ALL is the largest publicly held personal lines insurer in the United States.
 Financial helped boost it to the second-largest U.S. life insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual.

An insurer is frequently an insurance company and is also known as an underwriter.
 based on admitted assets, climbing a notch notch (noch) incisure; an indentation on the edge of a bone or other organ.

aortic notch  dicrotic n.

cardiac notch 
1.
 from the No. 3 position in 2005.

Prudential of America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name.  Group's admitted assets in 2006 stood at $368.6 billion, up from admitted assets of nearly $331 billion in 2005, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 financial results compiled by A.M. Best Co. Prudential bumped AIG AIG addressee indicator group (US DoD)
AIG American International Group, Inc
AiG Answers in Genesis (religious group in defense of Scripture)
AIG Artificial Intelligence Group
AIG Australian Industry Group
 Life Group, part of American International Group
"AIG" redirects here. For other uses, see AIG (disambiguation).


American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City.
 Inc. from the second-place position that it held in 2005. AIG Life is now the third-biggest U.S. life insurer based on admitted assets of $350.3 billion.

Andrew Edelsberg, assistant vice president of life/health for A.M. Best Co., said Prudential acquired the Allstate business through a reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract.  transaction for a total consideration of $635 million, comprised mostly of a $628 million ceding cede  
tr.v. ced·ed, ced·ing, cedes
1. To surrender possession of, especially by treaty. See Synonyms at relinquish.

2.
 commission, he said.

As for AIG dropping to third, its retirement services division experienced higher surrenders of fixed annuities Fixed annuities

Contracts in which an insurance company or issuing financial institution pays a fixed dollar amount of money per period.
 in 2006, "a trend that was consistent among many of the major fixed-annuity players," Edelsberg said.

Metropolitan Life & Affiliated af·fil·i·ate  
v. af·fil·i·at·ed, af·fil·i·at·ing, af·fil·i·ates

v.tr.
1. To adopt or accept as a member, subordinate associate, or branch:
 Cos., part of MetLife Inc., continued its reign A reign is a period of time a person serves as a monarch or pope. No time limit exists on reigns, nor is there a term of office. Thus a reign usually lasts for the remainder of the monarch's life, unless the monarchy itself is abolished or the monarch abdicates.  as the largest U.S. life insurer based on admitted assets of $445.9 billion in 2006.

Overall, the industry's total admitted assets stood at $4.8 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time.

(mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed.

In the USA and Canada, 10^12.
 in 2006, an increase of nearly 8%, according to A.M. Best. But the industry is facing growth challenges. Whether trying to boost assets or premiums written, it's it's  

1. Contraction of it is.

2. Contraction of it has. See Usage Note at its.


it's it is or it has
it's be ~have
 dealing with a "growth conundrum conundrum A problem with no satisfactory solution; a dilemma ," said Howard Howard, English noble family. Landowners in Norfolk from the 13th cent., the Howards obtained the duchy of Norfolk through the marriage of Sir Robert Howard to Margaret Mowbray, daughter of Thomas Mowbray, 1st duke of Norfolk.  Mills, chief adviser for the insurance industry group at Deloitte & Touche USA.

"If insurer X has identified Y as a good target, you can be certain that if X has identified Y as a likely target, then some others have as well--so it's going to impact what they're they're  

Contraction of they are.

they're be
 going to pay" said Mills, the former insurance superintendent Superintendent may refer to:
  • Superintendent (education), an education executive or administrator
  • Superintendent (police), a police rank
  • Superintendent (United States Air Force), a United States Air Force position
 of New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
.

With limited aggregate growth in many lines of business in the life insurance and annuity annuity: see insurance.
annuity

Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities.
 markets, companies are turning to other means to grow assets, added Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve.  Bochanski, a consultant with Watson Wyatt's insurance and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page.
 practice.

"Companies often turn to M&A to make a quick gain--as Prudential did with the purchase of Allstate's VA block in 2006--or to divest To deprive or take away.

Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money.
 of noncore operations," he said. The market has seen increased activity in this arena, but as buyers outnumber out·num·ber  
tr.v. out·num·bered, out·num·ber·ing, out·num·bers
To exceed the number of; be more numerous than.


outnumber
Verb

to exceed in number:
 sellers, the asking price goes up, Bochanski said. "Companies need to show discipline to ensure any acquisition fits within broader strategic objectives."

Other changes occurred within the top 10. New York Life Group and ING USA Life Group switched rankings, according to A.M. Best. New York Life advanced to the No. 8 position, with 2006 admitted assets of $178.5 billion, climbing one spot from No. 9 in 2005, while ING USA Life dropped to ninth place, with admitted assets of $173.4 billion.

ING's ranking dropped mostly due to a change in its statutory reporting for the U.S. operations, said Edelsberg. Through February February: see month.  2006, ING USA reported the results of its Taiwan Taiwan (tī`wän`), Portuguese Formosa, officially Republic of China, island nation (2005 est. pop. 22,894,000), 13,885 sq mi (35,961 sq km), in the Pacific Ocean, separated from the mainland of S China by the 100-mi-wide (161-km) Taiwan  life business through a Connecticut-domiciled entity; ING Life Insurance Company of America, he said. ING Life Insurance Company of America had about $12.5 billion in assets at year-end year-end also year·end
n.
The end of a year.

adj.
Occurring or done at the end of the year: a year-end audit.

Noun 1.
 2005.

In March of last year, ING Life Insurance Company of America entered into a de-merger De-merger

A corporate strategy to sell off subsidiaries or divisions of a company.

Notes:
For example, in 2001 British Telecom did a de-merger of its mobile phone arm, BT Wireless, in an attempt to boost the performance of its stock.
 plan where all business, assets and liabilities of its Taiwan branch were transferred to a newly formed subsidiary licensed in China, Edelsberg said. So the consolidated con·sol·i·date  
v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates

v.tr.
1. To unite into one system or whole; combine:
 assets for year-end 2006 don't don't  

1. Contraction of do not.

2. Nonstandard Contraction of does not.

n.
A statement of what should not be done: a list of the dos and don'ts.
 include ING Life Insurance Company of America, he said.
Admitted Assets, Top Life Writers, United States--2006 *
Rank is based on admitted assets for 2006.

($ Thousands)
                                           Admitted Assets

Metropolitan Life & Affiliated Cos           $445,925,851
Prudential of America Group                  $368,594,628
AIG Life Group                               $350,283,392
Hartford Life Group                          $238,475,399
Manulife Finl                                $200,788,929
TIAA Group                                   $186,565,270
Aegon USA Group                              $178,701,835
NY Life Group                                $178,471,272
ING USA Life Group                           $173,420,820
Axa Finl Group                               $148,681,659

                                           % Change

Metropolitan Life & Affiliated Cos            9.4%
Prudential of America Group                  11.4%
AIG Life Group                                2.7%
Hartford Life Group                          16.6%
Manulife Finl                                12.1%
Aegon USA Group                               4.9%
NY Life Group                                 3.6%
ING USA Life Group                            7.4%
Axa Finl Group                                2.1%
Note: Table made from bar graph.             11.6%

                                                                  %
Rank  Group Name                       AMB#          Assets   Change

1     Metropolitan Life & Affiliated   70192    $445,925,851     9.4
      Cos
2     Prudential of America Group      70189     368,594,628    11.4
3     AIG Life Group                   70342     350,283,392     2.7
4     Hartford Life Group              70116     238,475,399    16.6
5     Manulife Finl                    69542     200,788,929    12.1
6     TIAA Group                       70362     186,565,270     4.9
7     Aegon USA Group                  69707     178,701,835     3.6
8     NY Life Group                    69714     178,471,272     7.4
9     ING USA Life Group               70153     173,420,820     2.1
10    Axa Finl Group                   70194     148,681,659    11.6
11    Northwestern Mutual Group        69515     145,120,761     9.1
12    Lincoln AM Group                 70351     144,165,556    10.1
13    Principal Life Ins Co            06150     125,532,325    12.3
14    MassMutual Finl Group            69702     122,179,588     7.6
15    Nationwide Life Group            70350     110,868,858     2.9
16    Allstate Finl                    70106      91,003,916     3.1
17    Pacific Life Group               69720      87,629,116    15.3
18    Ameriprise Finl Group            69689      79,108,531    12.1
19    Jackson Nat Group                69578      69,406,665    10.3
20    Genworth Finl Group              69555      69,048,846     7.2
21    Allianz Ins Group                70187      63,647,436    18.4
22    Sun Life Finl Group              69740      58,671,671     5.1
23    Thrivent Finl for Lutherans      06008      52,538,897     3.4
24    Aflac Inc Group                  69824      50,451,713     7.4
25    State Farm Life Group            70126      43,676,488     5.8
26    Great-West Life Group            70366      43,428,663     8.4
27    Guardian Life                    69685      39,364,061     6.6
28    Aetna Inc                        70202      33,872,991    11.0
29    Unum Group                       69743      33,144,102     3.5
30    Protective Life Corp             69728      30,520,693     2.5
31    Aviva USA Group                  70108      29,762,439     9.1
32    Western & Southern Finl Group    69754      28,967,350     3.9
33    Sammons Finl Group               69731      27,116,948    13.3
34    Swiss Reins Group                70176      26,893,581    -1.4
35    Conseco Ins Group                69862      26,557,245     4.9
36    Phoenix Life Group               70171      25,816,189     4.0
37    Cigna Group                      70173      23,966,416   -11.8
38    Securian Finl Group              69763      22,208,094     2.8
39    Old Mutual Finl Network          70403      19,962,234     7.2
40    Symetra Life Group               70123      18,502,209    -2.5
41    GE Capital Svcs Group            70421      18,365,251    -4.3
42    Mutual of Omaha Group            70203      17,074,682     4.1
43    Kemper Investors Life Ins Co     06225      16,589,796    -4.2
44    Oneamerica Group                 70399      15,724,402     5.7
45    Merrill Lynch Ins Group Inc      69908      15,516,798     1.6
46    Fidelity Investments Group       70020      14,893,816    11.0
47    UNIFI Group                      69790      14,707,366     7.2
48    Amer Natl Group                  70166      14,622,187     2.6
49    OH Natl Life Group               69717      13,552,340     9.2
50    Nat Life Group                   69953      13,254,643     7.3
51    Knights of Columbus              06616      12,986,337     5.8
52    UnitedHealth Group               69973      12,816,774    36.9
53    Torchmark Corp                   70265      12,615,576     4.4
54    Mutual of America Life Ins Co    08851      12,437,899     5.1
55    Cuna Mutual Group                70262      12,332,040     4.8
56    Security Benefit Group           69882      12,324,421     6.0
57    Standard Ins Group               70398      12,247,138    12.5
58    GAFRI Group                      70220      11,773,309     5.0
59    Amer Equity Investment Group     70406      11,547,838    10.2
60    Assurant                         70135      11,524,751   -13.5
61    Penn Mutual Group                69722      11,008,716     7.7
62    FBL Group                        70209      10,955,008    21.3
63    Commonwealth Annuity & Life      08491      10,556,864     4.7
      Ins Co
64    Liberty Life Assur Co of         06627      10,457,191    15.9
      Boston
65    USAA Life Group                  70364      10,440,726    -2.9
66    Southern Farm Bureau Group       70169       9,681,076     4.4
67    Modern Woodmen of America        06737       7,928,882     6.3
68    Employers Reassurance Corp       06976       7,644,238    43.1
69    Woodmen of the World Life        07259       7,465,154     3.5
70    Country Ins & Finl Svcs          70142       7,324,329     5.4
71    Farmers New World Life Ins Co    06373       6,966,390     3.3
72    Berkshire Hathaway Group         70158       6,167,692     9.8
73    Primerica Group                  70183       6,054,350     2.2
74    Nat Western Life Ins Co          06811       5,962,810     5.4
75    Horace Mann Life Group           69919       5,116,136     9.7
76    Scottish Re Group                70418       4,718,146    11.8
77    Munich Amer Reassurance Co       06746       4,527,185    15.4
78    Americo Life Group               69676       4,489,931    -0.2
79    Continental Assur Co             06280       4,481,614   -12.0
80    Presidential Life Ins Co         06948       4,277,307    -4.1
81    WellPoint Group                  70064       4,062,359    18.3
82    Kansas City Life Group           69692       3,953,071    -1.1
83    Liberty Life Ins Co              06175       3,770,946     0.7
84    Thrivent Life Ins Co             09342       3,731,231    -4.9
85    Amer Family Life Ins Co          06052       3,685,060     6.7
86    Beneficial Life Ins Co           06162       3,678,738    18.9
87    Forethought Finl Svcs            70375       3,589,753     4.8
88    Ullico Inc                       70003       3,497,864     4.5
89    Humana Inc                       69866       3,381,728   167.2
90    Aurora Natl Life Assur Co        06139       3,292,062    -1.9
91    Unitrin Life & Health Group      70340       3,221,169     1.9
92    Sentry Life Ins Group            70125       3,195,654    10.0
93    Combined A&H Group               70178       3,165,204     3.4
94    Amer Fidelity Group              69640       3,032,172     0.8
95    Reliance Standard Life Group     69825       3,031,778    12.2
96    Independent Order of Foresters   06551       2,826,258     0.1
      USB
97    Physicians Mutual Group          69724       2,554,294     2.3
98    Cincinnati Life Ins Co           06568       2,521,354     7.2
99    First Allmerica Finl Life        07086       2,375,920   -16.5
      Ins Co
100   Health Care Service Corp         69584       2,237,699    21.2
101   HSBC Ins Group                   69620       2,200,566    -5.2
102   Scor Life US Group               70253       2,196,550    -7.9
103   Assurity Security Group          70066       2,158,992     2.2
104   Legal & Gen America, Inc         69539       2,094,857     0.6
105   Security Mutual Life Ins Co      07034       2,041,281     4.2
      of NY
106   Savings Bank Life Ins Co         06696       1,934,277     6.9
      of MA
107   Trustmark Ins Group              69845       1,846,635     4.4
108   Auto-Owners Life Ins Co          06140       1,840,812     9.2
109   Universal Amer Finl Corp         70021       1,750,145    40.0
110   NGL Ins Group                    70358       1,719,046     3.1
111   Pan-Amer Life Group              69617       1,679,164     1.9
112   IN Farm Bureau Group             70368       1,679,145     2.5
113   Jefferson Natl Life Ins Co       06475       1,675,872     3.2
114   Centre Life Ins Co               07367       1,672,562    -0.9
115   Farm Bureau Life Ins Co of MI    06363       1,655,949     2.9
116   Capital Assur Group              70004       1,645,192     5.8
117   Citi Assur Svcs Group            70434       1,634,331    -6.1
118   Shenandoah Life Ins Co           07044       1,583,909     3.7
119   Healthmarkets                    69860       1,575,974    -9.6
120   Erie Family Life Ins Co          07276       1,558,306    -2.1
121   Hannover Life Reassur America    68031       1,542,039    18.1
122   SBLI USA Group                   60345       1,528,706     0.6
123   Wilton Re US Group               70435       1,439,532     0.3
124   United Life Ins Co               07178       1,393,179    -2.8
125   First Investors Life Ins Co      06413       1,339,038     7.9
126   Homesteaders Life Co             06534       1,337,914    11.7
127   AAA Life Group                   70388       1,258,952     7.2
128   MTL Ins Co                       06756       1,256,788     2.4
129   Gerber Life Ins Co               07299       1,242,847    12.9
130   IL Mutual Life Ins Co            06542       1,234,962     6.6
131   Gleaner Life Ins Society         06459       1,223,927    -3.6
132   TN Farmers Ins Group             69777       1,213,792     5.6
133   Penn Treaty Group                69981       1,142,156     1.5
134   Alfa Life Ins Corp               06293       1,050,768     7.7
135   Centurion Life Ins Co            06276       1,045,257    -3.4
136   Western United Life Assur Co     08077       1,011,611   -12.8
137   Independence Hldg Group          69756         991,416     3.1
138   Investors Life Ins Co of         06412         988,928    -2.7
      North America
139   BCBS of KS                       70031         987,400     6.9
140   Regal Reins Group                70345         970,821    -1.7
141   Shelter Life Ins Co              06675         898,253     2.3
142   Amica Life Ins Co                07464         891,439     5.2
143   Boston Mutual Group              69993         889,577     7.0
144   XL Life Group                    70431         869,765     4.2
145   Federated Life Ins Co            06381         868,678     6.5
146   Manhattan Ins Group              70357         809,858    -6.6
147   Baltimore Life Ins Co            06143         801,540    -0.5
148   Catholic Knights                 08188         800,541     2.3
149   Pekin Ins Group                  70155         794,525     4.3
150   Govt Personnel Mutual Life       06470         775,380     1.5
151   Axa Corporate Solutions Life     09083         770,303    15.6
      Reins
152   Generali USA Life Reassurance    09189         731,871     9.0
      Co
153   Amer Enterprise Group            70369         727,401     4.5
154   Vantislife Ins Co                07021         684,449    -4.0
155   EMC Natl Life Co                 06339         679,905    -0.6
156   Catholic Life Ins                08827         650,447     4.1
157   Royal Neighbors of America       07010         647,990     3.0
158   AmerCo                           70367         647,473    -8.7
159   BCBS of MS Group                 70378         631,638     8.2
160   Columbian Finl Group             69961         615,618     7.4
161   Kanawha Ins Co                   06604         608,840     5.8
162   Amer Amicable Group              70394         599,215     0.7
163   Lifetime Healthcare Inc          70054         579,478    19.1
164   Greek Catholic Union of the      09807         574,567    -0.2
      USA
165   Catholic Order of Foresters      06191         573,666     2.0
166   HCC Ins Group                    70429         566,985    65.5
167   Citizens Inc Group               69688         561,889     8.3
168   Ozark Natl Life Ins Co           06877         554,238     6.1
169   Fidelity Lf Assn A Legal         06386         553,161    -4.5
      Reserve Life
170   Lincoln Heritage Life Ins Co     06694         549,256     6.8
171   Amer Reserve Group               70410         527,735    23.8
172   WEA Ins Corp                     09506         516,790     8.0
173   First Catholic Slovak Ladies     09869         514,144     6.1
      USA
174   LifeCare Assur Co                09200         484,599    37.6
175   Sagicor Life Group               70354         481,373    -4.2
176   Fidelity Security Group          69925         480,682     2.4
177   Amer Fidelity Life Ins Co        06055         474,967     2.2
178   Farmers & Traders Life Ins Co    06375         473,361    -1.1
179   Funeral Directors Group          70016         466,840     8.9
180   Pacific Guardian Life Ins Co     06883         448,668    -1.0
      Ltd
181   Great Western Group              70384         434,434    12.2
182   New Era Group                    70009         433,603    13.7
183   Medico Ins Group                 20142         425,573     6.2
184   Greater Beneficial of            08161         420,457     4.4
      Pittsburgh
185   Mutual Savings Life Ins Co       06753         417,778     0.9
186   United Heritage Life Ins Co      06472         409,752    -0.1
187   Health Net Life Ins Co           06722         400,411    11.3
188   Universal Underwriters Life      07204         387,157    34.6
      Ins Co
189   Coventry Health Care Inc         70413         381,236   196.6
190   Crown Life Ins Co (US Branch)    09916         375,018    -0.5
191   Harleysville Life Ins Co         06517         372,677    -0.8
192   State Mutual Group               70437         369,906     0.6
193   Revios Reins US Inc              60212         361,700     6.1
194   Guar Income Life Ins Co          06504         354,021     1.7
195   Farm Bureau Life Ins Co of MO    06364         353,256     4.6
196   Mayflower Natl Life Ins Co       07305         347,639    14.0
197   HM Ins Group                     70359         345,107   -24.0
198   Industrial-Alliance Pacific      09788         343,702     5.0
      Life Ins USB
199   Investors Heritage Life Ins Co   06580         336,727    -3.0
200   Unity Mutual Life Ins Co         07196         333,444    -6.8
      Total Top 200                           $4,794,702,361     7.6
      Total UH Industry                       $4,810,562,252     7.6

*  Includes life and fraternal annual statement fillings.

Source: A.M. Best Co
COPYRIGHT 2007 A.M. Best Company, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Life: Leading Writers
Author:Lysiak, Fran Matso
Publication:Best's Review
Date:Jul 1, 2007
Words:2841
Previous Article:A small bright star: indexed universal life insurance was the fastest-growing product line in the individual life insurance galaxy last year, and...
Next Article:Deal or no deal: companies risk losing focus if they begin to chase deals over solid organic growth.
Topics:



Related Articles
2006 Winter Olympic games: meet some of the U.S. athletes going for gold in Turin.
Ducks to take flight in Pan Am tryout.
Forget something?
Allianz's side of the story.
7 insurers settle WTC case for $2b.
Principal financial signs PPO deal with Aetna.
Hartford hits a home run in Japan.
Play it forward: Liberty Mutual's growth in 2006 boosted its rank among top U.S. property/casualty writers.
A small bright star: indexed universal life insurance was the fastest-growing product line in the individual life insurance galaxy last year, and...
Going mobile: with communications technology so prevalent across the country, carriers are responding with state-of-the-art wireless devices for...

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters