Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Health Insurance

Pru Policyholders OK Demutualization

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

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.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.