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Mutual holding companies: they smell rotten and appear unconstitutional

Article Abstract:

The adoption of a mutual holding corporate structure by insurance companies will be a bane to policyholders. Policyholders will lose their right to receive all dividends declared by an insurer on all its profits. Unlimited shares of stock can be sold to directors, executives and outside investors, thus, putting policyholders in precarious financial situation. Also, outside shareholders could be given the right to seek payment limits for policyholders. In addition, mutual holding companies could avoid paying taxes when they do not declare dividends for policyholders.

Author: Adkins, Jason B.
Publisher: A.M. Best Company, Inc.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1998
Investment Offices, Mutual Fund Mgmt Companies, Portfolio Management, Mutual funds, Mutual fund industry

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Cashing out

Article Abstract:

The irregularity of investment fashion in real estate market has prompted some of the insurance companies to change investment strategies. Prudential Insurance Co of America is selling a part if its $5.6 billion commercial real estate listings which covers hotels, industrial buildings and shopping centers. Prudential does not plan to exit from real estate investment entirely. The company's goal is to manage a small portfolio that is higher-yielding and is more focused on capital markets.

Author: Ostermiller, Marilyn
Publisher: A.M. Best Company, Inc.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1997
Analysis, Finance, Real estate investment trusts

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Prudential's new strategy has money management as core segment

Article Abstract:

Prudential is focusing on its money management services to boost revenues, as company officials realize that the life insurance industry has reached a mature level. In addition, the health insurance industry is still going through changes in regulation, leaving money management as a large area of growth. Prudential Securities is named as the main distributor for Prudential's financial products, including annuities, mutual funds, defined benefit plans and guaranteed investment contracts.

Publisher: A.M. Best Company, Inc.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1996
Depository Credit Intermediation, Money Management Accts & Svcs, Financial planners, Asset management accounts

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Subjects list: Management, Insurance industry, Insurance, Prudential Insurance Company of America
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