Prudential Retirement Hits $20 billion in New Third-Party Stable Value Sales

White paper discussing future of asset class in defined contribution plans released today

NEWARK, N.J.--(BUSINESS WIRE)-- Prudential Retirement has surpassed $20 billion in third-party stable value account values since Prudential entered the third-party stable value business less than two years ago, the company announced today. The significant growth reflects, in part, Prudential’s solid financial-strength ratings, strong brand identity, and extensive experience as a provider of stable value products. Prudential Retirement is a business unit of Prudential Financial, Inc. (NYSE: PRU).

Account values have jumped 60 percent since January, when the business reached more than $12.5 billion in third-party stable value assets for a variety of institutional investment-only clients. Prudential’s entry into the third-party stable value business in the second quarter of 2009 was fueled in large part to help provide plan sponsors with new options to give plan participants the potential to protect their assets against volatility following the financial crisis of 2008-2009.

“We are gratified that so many new institutional clients put their confidence in our retirement and asset management capabilities, and recognize the importance of giving their 401(k) plan participants the best opportunities to protect against market volatility,” said Charles Lowrey, executive vice president and chief operating officer for Prudential's U.S. Businesses.

To celebrate the milestone, Prudential is hosting a Stable Value Day at its Newark, N.J., headquarters on Tuesday to offer external partners and Prudential experts the chance to build a framework on which they can expand on this year’s early success.

“I look forward to addressing delegates at tomorrow’s Stable Value Day,” said James King, vice president and head of Prudential Retirement’s Stable Value Markets Group. “We owe our success to the collaboration within the organization and with our external partners. I’m especially pleased with how we have been able to harness Prudential’s financial strength and capabilities across Prudential Retirement and Prudential’s asset management businesses, which include Jennison Associates and Prudential Fixed Income, along with the Prudential Trust Company.”

“As we continue to emerge from an unprecedented financial crisis, stable value accounts provide an important alternative to help build a diversified retirement savings portfolio for participants that provides the potential for steady returns, while mitigating the risk of higher interest rates and inflation,” Lowrey said. “As a company, we are committed to helping plan sponsors offer a full array of investment platforms, including stable value.”

Stable Value products are issued by either Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, Conn., or The Prudential Insurance Company of America (PICA), Newark, N.J. Both are Prudential Financial companies. Each company is solely responsible for its financial condition and contractual obligations. Guarantees are contingent on the claims paying ability of the issuer.

Prudential Retirement delivers retirement plan solutions for public, private, and non-profit organizations. Services include state-of-the-art record keeping, administrative services, investment management, comprehensive employee investment education and communications, and trustee services. With over 85 years of retirement experience, Prudential Retirement helps meet the needs of nearly 3.7 million participants and annuitants. Prudential Retirement has $205.5 billion in retirement account values as of Dec. 31, 2010.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $784 billion of assets under management as of Dec. 31, 2010, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping individual and institutional customers grow and protect their wealth. In the U.S., the company’s Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit www.news.prudential.com.

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Prudential Financial, Inc.Josh Stoffregen, 973-802-3996
mobile: 973-204-2450
[email protected]
orDawn Kelly, 973-802-7134
mobile: 201-406-7248
[email protected]

Source: Prudential Financial, Inc.