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Prudential Closes On American Skandia

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NU Online News Service, May 1, 2003, 6:38 p.m. EDT – Prudential Financial Inc., Newark, N.J., has completed previously announced plans to acquire American Skandia Inc., Shelton, Conn., from Skandia Insurance Company Ltd., Stockholm.

The final price was $1.2 billion in cash plus the assumption of a $35 million liability, Prudential says.

Prudential says the completing the deal will help make it the eighth largest U.S. seller of variable annuities in terms of size, up from 22nd, and the fifth largest in terms of assets, up from 14th.

Prudential hopes to combine American Skandia’s operations with its own in about 24 months.

Prudential will keep American Skandia’s annuity sales, marketing and product-development operations in Shelton and start by calling the subsidiary “American Skandia: A Prudential Financial Company” when selling American Skandia annuities, Prudential says.

But Prudential says it plans to combine American Skandia’s mutual fund and wrap-fee business with its own and, eventually, change the name of American Skandia to Prudential Financial.