As Conversion Nears, Pru Cleans House.As Prudential Financial navigates through the demutualization Demutualization The process of changing corporate structure from a mutual fund company to some other form, such as a limited liability or corporation. Notes: This means mutual/life insurance companies convert from policyholder companies to stock companies. process and braces for its debut on Wall Street later this year, the company is doing a lot of work to get its financial house in order, a top executive said. For at least five years, Prudential has been working to strengthen its financial position, and for the past two years, that effort has accelerated as the company planned for demutualization, said Mark B. Grier, executive vice president of financial management. "We will be a much cleaner company," he said. Over the past five years, Prudential has exited some underperforming businesses, including mortgage banking, health care and 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. . The company's demutualization process hinges on a strategy called "destacking" or separating key businesses into sister companies under a parent holding company, Grier said. "With destacking, we won't have the operating risk Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. of subsidiaries tied together," he said. Prudential is focusing on key markets as it prepares to go public, Grier said. In the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , the company is the top seller of both group life and variable life products, he said. "As for the variable life, we believe that is the perfect product for what we are becoming as a company," he said, "since it a combined life and asset-management product." The company is targeting the "mass affluent Mass affluent and emerging affluent are marketing terms used to refer to the growing high end of the mass market. It is most commonly used by the financial services industry to refer to individuals with US$100,000 to US$1,000,000 of liquid financial assets,[1] customer base" --households with $100,000 or more in income or investable assets. Prudential Financial A.M. Best #: 06974 Rating: A Headquarters: Newark, N.J. Lines of Business: Life insurance, annuities, retirement savings and administration, brokerage services, asset management, investment advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal , mutual funds, real estate brokerage, property/casualty insurance |
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