Prudential Financial will discontinue sales of variable annuities with guaranteed living benefits, according to statements made by company executives during its third quarter earnings call.
This move aims to reduce the firm’s exposure to changes in market conditions and interest rates; instead, it will focus on other sources of revenue that are less rate sensitive.
Rob Falzon, vice chairman of Prudential Financial, said in a statement the company has “made progress” on its priorities: ”First, we continued to implement pricing and product actions to simplify and de-risk our business mix while protecting profitability.
“For example, we are further pivoting to less interest rate-sensitive solutions in individual annuities by discontinuing sales of traditional variable annuities with guaranteed living benefits, including both our highest daily income and Prudential defined income products,” according to Falzon.
“In our individual life business, we are repricing products to mitigate the impact of low rates, in addition to suspending sales of our single life guaranteed universal life product in July,” he explained.