CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MAY 01, 2003 12:00 AM (EDT)
Following today's announcement that Prudential Financial, Inc. (Prudential) (Newark, NJ) [NYSE: PRU] has completed its acquisition of American Skandia Life Assurance Corporation (ASLAC) (Shelton, CT), A.M. Best Co. observes that the financial strength ratings of A (Excellent) and the positive rating outlook of The Prudential Insurance Company of America (Newark, NJ) and its wholly owned life/health subsidiaries remain unaffected. Prudential and its subsidiaries' existing debt ratings also remain unaffected. Additionally, the under review status with developing implications on the financial strength rating of A- (Excellent) of American Skandia remains unchanged.
Prudential purchased American Skandia, Inc., ASLAC's United States holding company, from Skandia Insurance Company Ltd., a Stockholm-based financial services organization, for total consideration of approximately $1.196 billion. Following discussions with management, A.M. Best notes the company's strategic intentions are to fully integrate American Skandia into Prudential's existing annuity business as a core business line. A.M. Best believes ASLAC should provide a number of strategic and financial benefits, including expense savings, an expanded and growing source of operating profits and broader distribution of Prudential's products by leveraging ASLAC's existing third-party relationships and fee-based sub-advisor investment platform. As a leading seller of variable annuities in the independent financial planner channel, ASLAC is expected to move Prudential into a top ten position in the variable annuity marketplace.
A.M. Best will determine the acquisition's impact on American Skandia's financial strength rating following further dialogue with management, review of the integration progress, analysis of the transaction structure and funding mechanisms and evaluation of strategic initiatives for this entity. This review is expected to be ongoing over the next several months, with further due diligence as deemed appropriate.
For a complete listing of Prudential's financial strength and debt ratings, please visit Prudential.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.