The story
Founded by John F. Dryden in 1875, in Newark.1
History
Started in Newark, New Jersey, in 1875, Prudential was originally called The Widows and Orphans Friendly Society, then the Prudential Friendly Society. It was founded by John F. Dryden, who later became a U.S. Senator. In the beginning, the company sold only one product, burial insurance. Dryden was the president of Prudential until 1912. He was succeeded by his son Forrest F. Dryden, who was the president until 1922.
A history of The Prudential Insurance Company of America up to about 1975 is the topic of the book Three Cents A Week, referring to the premium paid by early policyholders.
In the early 20th century, Prudential and other insurers derived much of their profits from industrial life insurance sold door-to-door in urban working-class neighborhoods. Policyholders often paid higher premiums than those for ordinary life insurance, and high lapse rates meant relatively few policies reached maturity. Reforms supported by Louis Brandeis led to a 1907 Massachusetts law allowing savings banks to offer lower-cost life insurance.
In 1954, Prudential, along with Equitable Holdings, declared a policy stating they would not insure mortgages to white families in racially integrated neighborhoods. This came in the wake of blockbusting in East Palo Alto after a white family sold their home to a Black family. This decision facilitated white flight and realignment of East Palo Alto's demographics. Their policy was according to the position of U.S. government agencies like the Federal Housing Administration and the Veteran's Administration who not only refused insured mortgages to Black families, but white families in predominantly Black communities.
Prudential has evolved from a mutual insurance company (owned by its policyholders) to a joint stock company (as it was prior to 1915). It is now traded on the New York Stock Exchange under the symbol PRU. Prudential stock was issued and started trading on the New York Stock Exchange on December 13, 2001.
On August 1, 2004, the U.S. Department of Homeland Security announced the discovery of terrorist threats against the Prudential Headquarters in Newark, New Jersey, prompting large-scale security measures that included concrete barriers outside the premises and internal X-ray machines. In the same year, a joint venture was formed between Prudential and China Everbright Limited.
On November 28, 2007, the Prudential board of directors elected a new CEO, John R. Strangfeld, to replace retiring Arthur F. Ryan.
Ratings, awards and The Prudential Foundation
Prudential has received a 100% rating on the Corporate Equality Index released by the Human Rights Campaign every year since 2003, the second year of the report. In addition, the company is in the "Hall of Fame" of Working Mothers magazine among other companies that have made their "100 Best Companies for Working Mothers" list for 15 or more years. It is still achieving that list, as of 2013. According to Business Week's The Best Places to Launch a Career 2008, Prudential Insurance was ranked #59 out of 119 companies on the list. In 2007, The Prudential Foundation provided over $450,000 in Prudential CARES Volunteer Grants to 444 nonprofit organizations worldwide. The Prudential CARES Volunteer Grants Program recognizes individual and team volunteers based on a minimum of 40 hours of volunteer service per individual. Grants range from $250 to $5,000 for each award winner's charitable organization. Prudential ranked #69 on the 2017 Forbes World’s Biggest Public Companies list, calling out their $45.6 billion market value. Prudential ranked No. 52 in the 2018 Fortune 500 list of the largest United States corporations by total revenue. As of 2019, Prudential is the largest insurance provider in the United States with $815.1 billion in total assets.
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See also the article on the Prudential Spirit of Community Award.
From Wikipedia’s article on Prudential Financial, shared under CC BY-SA 4.0.8