Prudential Financial Ratings Overview and Analysis

Prudential Financial has a strong financial foundation, with a credit rating of A+ from Standard & Poor's, indicating a high level of creditworthiness.

The company's financial stability is reflected in its low debt-to-equity ratio of 0.28, as of 2022, which is significantly lower than the industry average.

Prudential Financial's robust financial position allows it to maintain a high level of liquidity, with a quick ratio of 1.14, indicating its ability to meet its short-term obligations.

The company's strong ratings from major credit rating agencies, such as Moody's and Fitch, further demonstrate its financial stability and credibility.

Prudential offers a wide range of life insurance products to fit various needs. Prudential focuses on higher-value life insurance products, but policies can be very affordable given the higher value.

Their life insurance portfolio includes both term and permanent coverage options. Prudential's life insurance policy portfolio includes a variety of options.

The PruLife Custom Premier II is a variable life insurance policy that allows you to choose over 50 underlying investment options based on risk tolerance and investment goals. This policy also has fixed-rate options for steady returns.

Term life insurance policies, like Prudential's EssentialTerm plans, are available for applicants under 60 without a medical exam. You'll need to answer a health questionnaire and may need to provide additional health-related information for underwriting.

EssentialTerm Value and Plus plans differ in their conversion options. With EssentialTerm Value, you can convert your policy to any of Prudential's permanent options within the first seven years of the policy's life or before you turn 70, whichever comes first.

Here are some key details about Prudential's EssentialTerm plans:

Prudential Life Insurance has a mixed bag when it comes to customer satisfaction.

Poor customer reviews are a notable con, highlighting potential issues with their services.

On the other hand, some customers have reported positive experiences.

However, it's worth noting that no online quotes are available, making it harder for potential customers to get an estimate.

Here are the pros and cons in a nutshell:

Prudential Life Insurance has some great features that make it a solid choice for many people.

One of the standout pros is that they offer convertible term life insurance, which allows you to switch to a permanent policy later if needed.

Their no medical exam life insurance options are also a big plus, making it easier for people with health concerns to get covered.

Prudential's unique universal policy blends aspects of variable and indexed insurance, giving you more flexibility in your coverage.

Variable universal life insurance with a no-lapse guarantee is another perk, providing peace of mind that your policy will stay in force.

Here are some of the key benefits summarized:

Prudential Life Insurance has some drawbacks to consider. Poor customer reviews have been reported, which can be a red flag for potential policyholders.

One of the most significant cons of Prudential Life Insurance is the lack of online quotes available. This can make it difficult for customers to get an idea of the costs involved.

Some customers have expressed frustration with the company's customer service, highlighting the need for improvement in this area.

In 1997, Prudential settled a class action lawsuit with millions of its customers who had been sold unnecessary life insurance by Prudential agents over a 13-year period ending in 1995.

The settlement called for Prudential to repay an estimated $2 billion to customers through direct refunds and enhancements to existing policies.

Prudential had agreed to pay a fine of $35 million to settle state allegations of deceptive sales practices in early 1997.

For over a decade, Prudential agents had improperly persuaded customers to cash in old policies and purchase new ones so that the agents could generate additional sales commissions.

Prudential's agents had been engaging in this behavior for more than a decade, from 1982 to 1995.

Prudential's customer experience has been a major concern, with an average rating of 1.2 stars out of five on Trustpilot and one out of five on its Better Business Bureau page. This is reflected in the numerous complaints about slow processing times, denied claims, and unreachable agents.

Customers have also reported long hold times on calls, which often get transferred to offshore call centers. This has led to a poor reputation for Prudential's customer service.

Despite this, Prudential placed 16th for customer satisfaction in JD Power's 2023 survey, receiving a score of 779/1,000 where the survey average was 790/1,000.

Customer reviews of Prudential are overwhelmingly negative, receiving an average of 1.2 stars out of five on Trustpilot and one out of five on its Better Business Bureau page.

Customers complained about slow processing times, denied claims, unreachable agents, and long hold times on calls. They also mentioned that their calls would be sent to offshore call centers.

Life insurance companies with a large collection of negative reviews is not uncommon in the industry. However, Prudential placed 16th for customer satisfaction in JD Power's 2023 survey of 22 life insurance companies.

Prudential scored 779/1,000 in the JD Power survey, which is below the average score of 790/1,000. State Farm, on the other hand, scored 843/1,000, placing first in the survey.

The National Association of Insurance Commissioners' complaint index rates a company based on the number of complaints it receives against its share of the market. Prudential scored 0.66, indicating that it has fewer complaints than expected, given its market share.

Filing a claim with Prudential life insurance is a relatively straightforward process. You can start by gathering the necessary details, such as the policyholder's name, date of birth, Social Security number, or policy number.

You can file a claim online or by calling your life insurance agent. This will initiate the claims process. Prudential Life has a digital claims checklist to ensure you have all the required documents.

If you need to file a claim by phone, you can call Prudential Life's customer service number. The number you need to dial depends on your policy number - if it doesn't start with "FE", you should call 1-800-778-2255, but if it does start with "FE", you should call 1-833-626-1865.

You can also use Prudential Life's virtual chat feature to file a claim, but you'll still need to have the necessary details ready.

If you're looking for alternatives to Prudential Financial, Inc., you might want to consider Sun Life Financial, Inc. or Manulife Financial Corp. Both of these companies have lower ESG Risk Ratings, with Sun Life Financial, Inc. scoring 13.7 and Manulife Financial Corp. scoring 14.9, compared to Prudential Financial, Inc.'s 18.6.

Here's a brief comparison of these companies in terms of their ESG Risk Ratings and industry rankings:

In terms of industry rankings, Sun Life Financial, Inc. ranks 10 out of 299, while Manulife Financial Corp. ranks 23 out of 299.

If you're looking for alternatives to Prudential Financial, Inc., you might consider other insurance companies with a strong presence in the US and Japan. Prudential Financial operates in a number of countries, but the majority of its revenue is generated in the US and Japan.

Another option to consider is a company with a significant investment management business, like Prudential Financial's PGIM, which contributes around 10% of its earnings and has $1.3 trillion in assets under management.

Some insurance companies have a strong market position in Japan, similar to Prudential Financial's international business segment, which contributes approximately 40% of its earnings. This could be an attractive option if you're looking for a company with a strong presence in the Japanese market.

Institutional Retirement Strategies and Individual Retirement Strategies are just two of the many business segments that make up Prudential Financial's US businesses, which account for about 50% of its earnings.

As we explore the world of insurance companies, it's interesting to see how they stack up in terms of ESG (Environmental, Social, and Governance) risk ratings.

Sun Life Financial, Inc. holds a low ESG risk rating of 13.7, ranking 10 out of 299 in the industry.

In comparison, Manulife Financial Corp. has a slightly higher rating of 14.9, placing them 23rd in the industry.

MetLife, Inc. also has a low ESG risk rating of 15.1, but ranks 25th in the industry.

Fubon Financial Holding Co., Ltd. has a higher rating of 15.8, and ranks 33rd.

Prudential Financial, Inc. has a notably higher rating of 18.6, placing them 67th in the industry.

Here's a quick look at the ESG risk ratings and industry rankings for these companies:

When evaluating companies based on their environmental, social, and governance (ESG) performance, it's essential to understand the top ESG issues that affect them.

The ESG Risk Ratings measure a company's exposure to industry-specific material ESG risks and how well a company is managing those risks.

Prudential Financial, Inc. is exposed to various material ESG issues.

One of the top material ESG issues for Prudential Financial, Inc. is controversy, which has impacted its ESG Risk Rating in the last three years.

The company's controversy level is a significant factor in its ESG Risk Rating.

Understanding how exposed companies are to specific material ESG issues and how well companies are managing these issues can provide valuable insights for investors and stakeholders.

Prudential Financial's management of ESG material risk is strong, indicating a robust approach to handling environmental, social, and governance issues.

Management refers to how well a company is managing its relevant ESG issues, and Prudential Financial's score reflects its solid ESG programs, practices, and policies.

Prudential Financial companies hold a strong "A+" (Superior) rating with A.M. Best, demonstrating their financial stability and trustworthiness.

This rating, along with high industry ratings from Moody's, Fitch, and Standard & Poor's, provides consumers with a clear snapshot of Prudential Financial's overall financial health.

Prudential Financial, Inc. has a strong management of ESG material risk, with a robust ESG program in place.

The company has received a 100% rating on the Corporate Equality Index every year since 2003, demonstrating its commitment to diversity and inclusion.

Prudential has also been recognized as one of the "100 Best Companies for Working Mothers" by Working Mothers magazine, a title it has held for 15 or more years.

Prudential's management practices are also reflected in its financial performance, with a market value of $45.6 billion in 2017 and total assets of $815.1 billion in 2019.

The company's financial strength is further supported by its high ratings from rating companies such as A.M. Best, Moody's, Fitch, and Standard & Poor's, all of which have given Prudential a "A+" (Superior) rating.

Prudential's commitment to doing business the right way is also reflected in the awards and recognition it has received from national and global organizations.

Prudential has made significant acquisitions to expand its operations and offerings. The company acquired Bache & Co. in 1981, which operated as a wholly owned subsidiary until 2003.

Prudential's acquisition strategy has helped it meet retirement goals by acquiring complementary businesses. In 2003, it acquired American Skandia for $1.2 billion, which added variable annuities to its product lineup. This move allowed Prudential to offer a more comprehensive range of financial services.

The company has also expanded its presence in Asia through strategic acquisitions. In 2011, Prudential acquired AIG Edison and AIG Star from American International Group, Inc. for a total of $4.8 billion.

Prudential has also made significant investments in its individual life insurance business. In 2013, it acquired the individual life insurance business from The Hartford for $615 million in cash, adding 700,000 in-force life insurance policies with a face amount of approximately $135 billion.

Prudential's acquisition of Assurance IQ Inc. in 2019 marked a significant expansion into the online insurance market. The company agreed to pay $2.35 billion for the startup, which has underperformed financially.

Exposure is a key concept in financial and risk management. It refers to the extent to which a company is exposed to different material ESG issues.

Our exposure score takes into consideration subindustry and company-specific factors such as its business model. This helps us understand how vulnerable a company is to various environmental, social, and governance risks.

A company with a high exposure score is more likely to be impacted by ESG issues, which can affect its financial performance and reputation.

When you're shopping for life insurance, you might want to consider additional coverage options to tailor your policy to your specific needs. Prudential offers a range of riders that can provide extra protection and benefits.

Accidental death benefit is a good option if you're in a high-risk industry or engage in risky activities. This rider provides a higher death benefit if your death is caused by a covered accident.

Terminal illness or living needs benefit is included with all Prudential policies at no extra cost. This rider allows terminally ill policyholders to access a portion of the death benefit, which can help alleviate financial stress.

Waiver of premium is another rider that can offer relief by waiving your premiums if you become fully disabled.

Here are some additional coverage options offered by Prudential: