NU Online News Service, Aug. 6, 6:25 p.m. – Prudential Insurance Company of America, Newark, N.J., says 92% of the 4 million policyholders who voted on its demutualization proposal voted for the proposal.
Prudential started out as a publicly traded, shareholder-owned insurer, but it has been a policyholder-owned mutual insurer for decades. The company now wants to convert back to a stock charter, by using its stock compensate the policyholders for their loss of policy-based ownership rights. The company also wants to sell stock to outside investors through an initial public offering.
The company put the demutualization proposal to a vote that ended July 31.
New Jersey state law required Prudential to persuade at least 1 million of its policyholders to vote on the demutualization proposal.
Prudential executives pointed to the large number of policyholders who voted as evidence that their proposal is popular among policyholders.
Prudential is hoping to get the final approval it needs to carry out the demutualization from New Jersey insurance regulators by the end of the year.