by John Darer CLU ChFC MSSC CeFT RSP CLTC
Due to extreme interest rate volatility with a looming pandemic, Prudential Insurance Company of America has announced that it has suspended its structured settlement rate book pricing until further notice, effective March 6, 2020.
What Does This Affect?
Just new structured settlement quotes from Prudential from March 6, 2020.
Why is This Necessary?
Insurers must have assets to match against liabilities under state insurance regulations. Large volumes of business coming in under book rates present challenges that are increasingly difficult to manage when rates are shifting at warp speed. It is actually smart risk management on the part of Prudential.
Is This Unusual?
Not at all, Berkshire Hathaway Life of Nebraska and First Berkshire Hathaway Life do not have a published rate book and use daily price quotes for everything. Berkshire is usually there or thereabouts at the top of the production ladder for structured settlement annuity issuers along with others.
How long has Prudential Been in Business?
The Prudential Insurance Company of America (PICA), based in Newark, New Jersey, has been in business since 1875.
As of September 30, 2019 PICA had $1.5 trillion is assets under management, $286 billion in admitted assets and approximately $4 trillion in life insurance in force worldwide. In January 2020 Prudential Financial was ranked the most admired life insurance company in the world by Fortune Magazine for the second consecutive year. As of year end 2018 it had over $831 Billon in assets.