CT AG Subpoenas Prudential
The Insurance Journal
June 7, 2005
According to a Reuters report on Tuesday, Prudential Financial Inc. has received a subpoena from Connecticut Attorney General Richard Blumenthal asking for information about its participation in a number of reinsurance transactions.
In a securities filing, the financial services company reported it uses reinsurance "primarily to transfer mortality risk, to acquire or dispose of blocks of business and to manage our capital more effectively."
Prudential indicated it had started a voluntary review of its accounting for reinsurance arrangements prior to receiving the subpoena, in light of news over reinsurance transactions involving other companies. Prudential indicated it intends to cooperate.
Prudential also said its board of directors increased the size of its 2005 share repurchase program to $2.1 billion from $1.5 billion. Prudential reported it repurchased about $678 million of common stock from Jan. 1 to June 7.
Prudential shares gained 2 cents to $63.08 in afternoon trading on the New York Stock Exchange.