Prudential Retirement has surpassed $20 billion in third-party stable value account values since Prudential entered the third-party stable value business less than two years ago.

The significant growth reflects, in part, Prudential’s solid financial-strength ratings, strong brand identity, and extensive experience as a provider of stable value products. Prudential Retirement is a business unit of Prudential Financial, Inc. (NYSE: PRU).

Account values have jumped 60 percent since January, when the business reached more than $12.5 billion in third-party stable value assets for a variety of institutional investment-only clients. Prudential’s entry into the third-party stable value business in the second quarter of 2009 was fueled in large part to help provide plan sponsors with new options to give plan participants the potential to protect their assets against volatility following the financial crisis of 2008-2009.

“We are gratified that so many new institutional clients put their confidence in our retirement and asset management capabilities, and recognize the importance of giving their 401(k) plan participants the best opportunities to protect against market volatility,” said Charles Lowrey, executive vice president and chief operating officer for Prudential's U.S. Businesses.

To celebrate the milestone, Prudential is hosting a Stable Value Day at its Newark, N.J., headquarters on Tuesday to offer external partners and Prudential experts the chance to build a framework on which they can expand on this year’s early success.

“I look forward to addressing delegates at tomorrow’s Stable Value Day,” said James King, vice president and head of Prudential Retirement’s Stable Value Markets Group. “We owe our success to the collaboration within the organization and with our external partners. I’m especially pleased with how we have been able to harness Prudential’s financial strength and capabilities across Prudential Retirement and Prudential’s asset management businesses, which include Jennison Associates and Prudential Fixed Income, along with the Prudential Trust Company.”

“As we continue to emerge from an unprecedented financial crisis, stable value accounts provide an important alternative to help build a diversified retirement savings portfolio for participants that provides the potential for steady returns, while mitigating the risk of higher interest rates and inflation,” Lowrey said. “As a company, we are committed to helping plan sponsors offer a full array of investment platforms, including stable value.”

Stable Value products are issued by either Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, Conn., or The Prudential Insurance Company of America (PICA), Newark, N.J. Both are Prudential Financial companies. Each company is solely responsible for its financial condition and contractual obligations. Guarantees are contingent on the claims paying ability of the issuer.

Instant Insights /

Prudential Retirement hits $20B in new third-party stable value sales

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