Prudential Financial’s (PRU) Retirement business in the United States provides corporate customers with retirement savings and income-oriented products and services. This business falls under Institutional Investment Products, which also includes Pension Risk Transfer products.
Prudential provides its Full Service clients with a range of products and services, including:
- general and separate account stable value products
- fee-based products
- mutual funds
For further information on insurance products, please read our industry overview. An investor’s guide to the insurance business.
Institutional investment products
The book of business for stable value products has increased to $70 billion in the last five years. The modest risk profile of the stable value products’ book business resulted from writing business during the 2008 financial crisis in terms favorable to the company. With increasing competition in the market, the company expects growth at a slower pace going forward.
Full Service business
Prudential Financial operates in a competitive marketplace in the Full Service business. Despite increased competition, the company has managed to consistently grow the business account and sales, as shown in the chart above.
In this segment, Prudential competes with life insurers like MetLife (MET) and other players held by the Financial Select Sector SPDR ETF (XLF) and the iShares US Financials ETF (IYF). Prudential is a key player in the pension risk transfer market, along with MetLife (MET) and AIG (AIG).
In the next article, we’ll take a look at this market segment.