Prudential Insurance Co. of America has spent more than $200 million on its plan to convert itself into a stockholder-owned company and that is only the beginning. The Newark-based company could potentially wrack up the biggest total bill for an insurance company conversion ever.
In the first nine months of 2000, Prudential spent $113 million, before taxes, on its conversion, which will distribute stock to the 12 million policyholders who now own the company, up nearly 50 percent from the the $75 million it spent for all of 1999.
The company spent $24 million in 1998 when the process started. By comparison, MetLife Inc.’s conversion last spring cost $229 million, while John Hancock Financial Services spent $105 million on its smaller conversion. Both companies had fewer eligible policyholders than Prudential.
Was this article valuable?
Here are more articles you may enjoy.
AM Best: US Home Insurers in 2025 Book First Underwriting Profit in Seven Years 
Luxury Car Rental Company Owner Staged Crash for Insurance 
Cornell Backs Probe Into Fraternity Sexual Assault Allegations 
NY Governor Urges Review of Cornell Response to Assault Case 
