Posted by (American Life Insurance Guide 12/21/2020 News)Prudential Financial(Prudential, also known as Prudential) Chief Executive Charlie Lowrey said recently,The company will stop selling all products with guaranteed lifetime benefitsSecurities Investment Annuity(Variable Annuities W/ GLWB).
Seek'low risk' business transformation
Prudential Executive Lowry said that due to the uncertainty of the economic environment and the ultra-low interest rate market, the company has re-adjusted.The result of the adjustment is the suspension of sales of such lifetime income securities annuity products.
"In terms of business adjustments, we seek a'low risk' path, and we have already focused onIndividual pensionAnd life insurance business, a solution to reduce interest rate sensitivity and capitalization," Lowry reported on Insurance News.1Zhong said, "...At the same time, you can see that our life insurance business has shifted to simpler, non-guaranteed products."
Personal annuity business accounted for 21%
Prudential (Prudential)The report showed that its quarterly performance was strong, and the scale of assets under management increased by 8.5% to US$1.65 trillion.Annuity sales increased slightly from the second quarter, but far below the data of the third quarter of 2019.
The company launched the first model during this year's new crown epidemicIndex-type investment consecutive annuity products-FlexGuard.Product sales accounted for 38% of the total quarterly annuity sales.Annuity business accounts for 21% of the company's revenue.
Individual life insurance business less than 1%
In the 2020 new crown epidemic in the United States,Prudential (Prudential)Temporarily in March30-year term life insurance was suspendedIn July, it was announced that the sales of its guaranteed universal insurance products were suspended, and other life products were also re-priced.
FromPrudential (Prudential)In the report for public investors,Life insurance business for individuals and families only accounts for 1% of the company's income.
With the adjustment of the company’s business strategy,Prudential Financial Vice Chairman Rob Falson said, “We expectIndividual pensionAnd personal life insurance sales will continue to decline in the short term. "(End of full text)
(>>>Related reports:Prudential Insurance to sell its insurance and retirement divisions (2022 Newsletter)）
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01. "Prudential To Exit Variable Annuities With GLWB Business", 11/04/2020, InsuranceNewsNet, https://bit.ly/3pcuNts
