Prudential Aims to Cut Stock-Related Annuity Risk: Earnings
February 11, 2020 by Allison Bell
Prudential Financial Inc. did well in the fourth quarter, but it’s trying to harden itself against current and future financial storms.
Executives at the Newark, New Jersey-based company said the company’s is already making adjustments to counter the effects of low interest rates.
The company is also working to cut costs, and to reduce the exposure of annuity operations to changes in stock prices.
At the U.S. individual annuity operation, “gross sales of $2.1 billion in the current quarter reflect our continued diversification strategy, with 65% of sales coming from less equity-market-sensitive products,” Prudential says.