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Prudential (PRU) Establishes Retirement Strategies Business

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Prudential Financial, Inc. (PRU - Free Report) has established Prudential Retirement Strategies in a bid to cater to the retirement needs of individual and institutional customers.

Prudential Retirement Strategies, a U.S. business, will bring together Individual Annuities business and Retirement Institutional Investment Products, which include pension risk transfer and international reinsurance, among others. This strategic move offers Prudential a unique breadth and scale in the retirement marketplace.

This financial services leader aims to achieve a higher growth, less market sensitive and a nimbler business. The company expects to double its growth businesses to more than 30% of earnings and the individual annuities business to be 10% or less of earnings.

Per Caroline Feeney, CEO, U.S. Insurance and Retirement Businesses. "The creation of Prudential Retirement Strategies is another step forward in the transformation of our business and product portfolio and the acceleration of our growth."

Prudential has emerged as one of the top five individual life insurance companies in the United States with new recurring premium sales, greater scale, expanded product offerings and broader distribution capabilities. It boasts a leading position in universal, term and variable life insurance and has an expanding Retirement business.

Shares of this Zacks Rank #3 (Hold) multi-line insurer have gained 38.6% year to date, outperforming the industry’s increase of 7.4%. Its solid asset-based businesses, improved margins in Group Insurance business and international operations,  and deeper reach in the pension risk transfer market should help retain the momentum.

 

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Stocks to Consider

Some better-ranked stocks in the insurance sector include American Financial Group (AFG - Free Report) , CNO Financial Group (CNO - Free Report) , and MetLife, Inc. (MET - Free Report) .

American Financial Group delivered an earnings surprise of 45.73% in the last reported quarter. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CNO Financial delivered an earnings surprise of 22.22% in the last reported quarter. It sports a Zacks Rank #1

MetLife delivered an earnings surprise of 47.20% in the last reported quarter. It carries a Zacks Rank #2 (Buy).