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Prudential Financial Inc PRU

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Great-West Lifeco Boosts Empower With Acquisition of Prudential's Full-Service Retirement Unit

Rajiv Bhatia, CFA Equity Analyst

Analyst Note

| Rajiv Bhatia, CFA |

No moat-rated Great-West Lifeco announced on July 21 that its Empower subsidiary will acquire Prudential Financial’s full-service retirement business for a total transaction value of $3.55 billion. Through its acquisition of JPMorgan’s retirement unit in 2014 as well as recent acquisitions of Personal Capital and MassMutual's record-keeping business, Great-West has continued to focus on building out Empower. We generally approve of this strategy as we regard Empower as a potential moat enhancer, given the stickiness of record-keeping contracts. The deal is expected to close in the first quarter of 2022. We will maintain our fair value estimates of CAD 39 for Great-West and $89 for Prudential at this time.

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Company Profile

Business Description

Prudential Financial is a large, diversified insurance company offering annuities, life insurance, retirement plan services, and asset management products. While it operates in a number of countries, the vast majority of revenue is generated in the United States and Japan. Prudential is the second- largest life insurance company in the U.S.

Contact
751 Broad Street, 23rd Floor
Newark, NJ, 07102
T +1 973 802-6000
Sector Financial Services
Industry Insurance - Life
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type High Yield
Employees 41,671

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