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Friendly roots The Prudential Insurance Company of America traces its long history back to the Prudential Friendly Society, founded in 1875. The following year, Prudential issued its first death claim - for $10 - and adopted the Rock of Gibraltar as its corporate symbol. In 1943, Prudential mutualized, becoming a company owned by its policyholders. The postwar years saw continued expansion for the company, and in 1966, Prudential surpassed Metropolitan Life as America's largest insurance firm. The company began to diversify outside the insurance business in 1981 with the acquisition of the securities brokerage firm Bache Halsey Stuart Shields, leading to the creation of Prudential Securities. The 1990s brought woe as several states began to investigate Prudential's sales practices - notably, allegations of "churning." Despite active efforts on the company to correct any abuses, in 1996, 30 states concluded that Prudential had knowingly permitted wrongdoing. By 2000, Prudential had paid out $2.8 billion in settlement fees. Number one in life insurance Currently, Prudential is the nation's largest life insurance company, with over $375 billion in total assets. The company offers a wide range of products and services, including life insurance, investment management services, annuities, retail investment (under Prudential Securities - see separate entry), and real estate brokerage. Although sagging demand for life insurance has affected sales, Prudential can claim the title of the nation's leading issuer of individual life insurance. Prudential devotes several units to distribute its insurance products: Prudential Insurance and Financial Services; Prudential Preferred Financial Services; Prudential Select Brokerage; and Prudential Property & Casualty Insurance Company. Prudential has also established its insurance business in many markets abroad, and in February 1999, the company announced it would set up a subsidiary in Argentina, one of Latin America's fastest growing markets for insurance products. Other international forrays include the opening of an office in Poland and the acquisition of stakes in Mexico's Apolo Operadora de Sociedades de Inversion (December 1999) and Japan's Kyoei Life Insurance (June 2000). Selling the real estate In 1998, Prudential racked up $1.11 billion in net income, an 82 percent increase from 1997's earnings of $610 million. Why the jump? Part of the explanation is that Prudential has taken advantage of strong market conditions in unloading much of its $6 billion worth of real estate holdings around the country. In May 1998, for example, Prudential announced it would sell its Prudential Center in Boston and the Embarcadero Center in San Francisco to Mortimer Zuckerman's Boston Properties group for $1.74 billion. No more health care Prudential's real estate holdings haven't been the only item up for sale. In December 1998, Prudential announced it would sell its health care business to the Hartford-based Aetna Corp. The $1 billion deal marks the culmination of a year-long search for a buyer, and an end to several years of losing money, members, and doctors at the health care unit. Prudential agreed to pay Aetna to make up for the bulk of expected operating losses in the first 18 months. The deal was completed in July 1999. Going public Consistent with consolidating trends in the financial services sector, Prudential announced in 1998 that it would begin the process of "demutalizing," or becoming publicly traded rather than policyholder owned. If Prudential makes this conversion, it would join the ranks of demutualized competitors MetLife and John Hancock. The company's IPO is expected to take place in early 2001. The process of demutualization, which usually requires several years, will mean changes for Prudential - industry observers note that a likely consequence may be the spin-off of Prudential Securities. In preparation for demutualization, the company acquired St. Paul Cos.' nonstandard auto business in 2000, bringing Prudential 240,000 drivers who may not get standard insurance policies because of inexperience, blemishes on their driving records, or the type of car they drive. In May of that year, Prudential agreed to acquire WMF Group, nearly doubling the size of the company's commercial mortgage business. And to push into the lucrative tech stock underwriting business, Prudential bought West Coast investment bank Volpe Brown Whelan & Company.
www.prudential.com offers job seekers the chance to browse openings by function and by geography. Resumes may be sent via regular mail or email. Our contacts tell us that Prudential recruits though a variety of methods, including on-campus recruitment, internet postings, newspapers ads, and employee referrals. Regarding the interview process for sales positions, candidates can expect a screening interview and a written test that evaluates math and reading skills, ethical standards, and knowledge of the industry. Recruitment for non-sales positions involves interviews with people from HR and the targeted department. An insider informs us that "any position within Pru involves contact with various levels, so a main consideration for any candidate is interaction with others." For the second round, applicants are advised to "keep smiling." Recommends one insider: "Don't be afraid to brag about your accomplishments. If you make the second interview, your chances are good."
Size = opportunity Generally speaking, Prudential gets high marks from our survey respondents. "From an employee relations standpoint," one contact notes, "you would be hard-pressed to find a better employer." One reason for the high satisfaction is opportunity. An insider tells us: "I've been with Prudential for three years, and feel that if you are willing to work hard, you can be successful." The same contact explains that "the name recognition and the size of the company are all advantages." Another informant picks up on the company's size. "Prudential," he notes, "being such a large company, will offer many diverse environments and multitudes of different departments or divisions to work in." Prudential: It's a family affair Prudential insiders often invoke the notion of family to describe their company. One source tells us: "Prudential is a company that really seems to value employees. Family life is important. Time at home is just as important as your time at work, if not more so." A different insider takes the idea of family a notch higher: "I enjoy my work as well as [the company of] my associates. It is like one big happy family, and [people here] are from all walks of life." Nor is the family life at Prudential Insurance just a metaphor. One contact tells us: "I have made many friends with the people in Prudential, and one of the things that I noticed most when I first came here was the extraordinary number of relatives that worked together. I thought it very strange that so many brothers and sisters, cousins, parents, and children all worked for the same company. The more I thought about it, though, the more I realized it was a good sign." Strong efforts for diversity Prudential clearly makes an effort to promote diversity. One insider reports: "We have cultural events including guest speakers and performance artists for Women's History Month, Black History Month, Asian and Pacific Islanders Month, Hispanic Heritage Month, etc." Regarding gender equality, a contact in Claims estimates: "Claims is 70 percent women, I don't know why." Another contact recalls the announcement of the promotion of four individuals to vice-president: "three women, one man." However, on the sales side, the situation is not always equal. "Unfortunately," one informant moans, "I find there is some cultural bias to a woman as a financial advisor." The same contact notes that insurance "has been a male-dominated industry, but it is changing." Compensation: love the benefits and the training One insider tells us that pay at Prudential is "about the same as at any other insurance company;" the benefits, too, are consistent with the insurance industry and are excellent. Our contacts rejoice over tuition reimbursement and payment for relocation costs, in addition to flexible scheduling, fitness centers, and solid medical plans. Training also garners praise. One individual points out a mentoring program and a "computerized learning program on which you can pace yourself." A former Prudential employee says that these perks often lead to wider horizons: "Today I am involved in high technology, an interest which was sparked in the accounting department at Pru."
Michele S. Darling Human Resources
Life insurance; Investment management services; Annuities; Retail investment; Real estate brokerage.
Aetna;Allstate;Charles Schwab;Chubb;CIGNA;The Hartford;John Hancock;Liberty Mutual;Merrill Lynch;MetLife;New York Life;Oxford Health Plans;State Farm;TIAA-CREF;Travelers Group;United HealthCare More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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