Prudential To Submit IPO Plan

Monday, December 18th 2000, 12:00 am

By: News On 6

NEWARK, N.J. (AP) â€” Prudential Insurance Co. of America, the nation's largest life insurer, plans to submit a plan for its initial public offering to the state Department of Banking and Insurance by the end of February.

If approved by regulators and policyholders, Prudential stock could be distributed by next October, under a plan unanimously approved by the company's board of directors.

The decision is the latest step in Prudential's effort â€” first announced in 1998 â€” to convert to a publicly traded company from a mutual company owned by policyholders for the last 85 years.

Fellow insurers John Hancock and MetLife went public earlier this year.

``Prudential's mutual status has served the company and its policyholders well for many years,'' chairman and chief executive officer Arthur F. Ryan said.

``But the financial services industry has changed. By converting to a stock company, Prudential will be able to better meet customer demands in a constantly changing marketplace,'' Ryan said.

The plan could distribute shares to some 11 million policyholders, which would make Prudential the most widely held U.S. stock, surpassing MetLife.

Prudential, which has reserved the stock ticker symbol ``PRU,'' is among the largest financial services institutions in the world, with more than $363 billion in assets under management as of Dec. 31, 1999. Its annual income for 1999 was $813 million on sales of $26.6 billion.

The company has operations in Asia, Europe and North and South America. It employs more than 50,000 workers. Its products and services include a securities brokerage, mutual funds and real estate, in addition to life, property and casualty insurance.

Policyholders would get information and voting material after state Banking and Insurance Commissioner Karen L. Suter approves Prudential's application, the company said.

Policies in force on Friday could get stock, cash or policy credits.

The state demutualization law requires that at least 1 million policyholders and contract holders vote, and conversion must be approved by two-thirds of those voting.

Details of the plan are to be made public when it is submitted to the insurance department.

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On the Net:

Prudential: http://www.prudential.com