Prudential Financial

John Fairfield Dryden founds Prudential Friendly Society Oct 13 1875 in Newark NJ in a basement office; copying UK Prudential Assurance model, sells industrial life (burial) insurance at 3 cents/week to working-class families. Slogan 'The strength of Gibraltar' adopted 1896 — becomes one of advertising's most enduring corporate icons.

Prudential acquires Bache & Co 1981 entering brokerage — disastrous 80s/90s detour into financial services. Prudential-Bache Securities suffers limited partnership scandals 1980s-1990s costing $1B+ in settlements. Pru spins off Prudential Securities to Wachovia 2003 to refocus on insurance.

Prudential 'churning' scandal Oct 1994 — 30-state attorneys general probe finds Prudential agents pressured policyholders into replacing existing life policies (cashing in old whole life to buy new policies, generating fresh commissions). Prudential pays $2.4B+ in settlements 1994-2000; one of largest insurance market conduct settlements ever.

Arthur Ryan becomes Prudential Chairman/CEO 1994 — succeeds Robert C. Winters. Ryan navigates Pru through 1994 churning scandal + leads to 2001 demutualization + 2003 Prudential Securities sale to Wachovia. Stock structure transformation prepares Pru for 21st century focus on insurance.

Prudential demutualizes Apr 2001 — converts from policyholder-owned mutual to public company; IPO Dec 13 2001 at $27.50/share raising $3B. Policyholders receive ~454M shares. Ends 126-year mutual structure; one of largest demutualizations ever.

Prudential 2008-2009 crisis — variable annuity guarantees blow out as S&P 500 falls 38%. Pru receives $5.8B TARP Treasury investment Jun 2009 (later repaid). Stock falls from $90 (2007) to $11 (Mar 2009). Variable annuity wind-down + reinsurance to Bermuda drives Pru's de-risking through 2010s-2020s.

Prudential designated SIFI Sep 2013 by FSOC; subjects Pru to Federal Reserve supervision. Pru fights designation but accepts; demonstrates US regulators view variable annuity life insurers as systemic. Pru SIFI removed Oct 2018 after court precedent from MetLife case. Saves Pru hundreds of millions in capital.

Prudential reinsures legacy variable annuity block Apr 2024 — cedes $35B in VA reserves to Talcott + Prismic Re (Pru's Bermuda reinsurance subsidiary, JV with Warburg Pincus + AIMCo). Largest VA reinsurance transaction. CEO Charles Lowrey (2018-2025) shifts Pru toward PGIM (asset mgmt) + Asia + capital-light retirement products.

Prudential Q1 2025 — Andy Sullivan installed as CEO Mar 2025 succeeding Charles Lowrey (CEO 2018-2025); Sullivan was head of US businesses. Prudential continues Asia/PGIM focus + de-risking US variable annuity book (Pruco Re Ltd reinsures legacy VA block to bermuda). Stock $115+ Q1 2026.