The Prudential Insurance Company of America (PICA)

Financial strength review

The Prudential Insurance Company of America (PICA) is a subsidiary of Prudential Financial, one of the world’s largest financial institutions with more than $1 trillion in assets under management.1 The Prudential Financial companies are built on a proud heritage of life insurance, retirement and asset management, serving individual and institutional customers worldwide.

As of December 31, 2017, The Prudential Insurance Company of America had $266 billion in admitted assets, including $139 billion held in separate accounts.

Financial strength

PICA has received the following ratings from major, independent rating agencies2

Rating Agency Financial Strength Rating Financial Strength Rating Category
Moody's Investors Service A1 (Good) 5th highest of 21
Standard & Poor's AA- (Very Strong) 4th highest of 21
A.M. Best A+ (Superior) 2nd highest of 15
Fitch AA- (Very Strong) 4th highest of 19

Financial Size Category

Financial size category (FSC) for the Prudential Insurance Company of America.3

Rating agency FSC Explanation
A.M. Best XV Adjusted policyholder surplus greater than $2 billion. Highest available category: “XV”

Portfolio size and diversity3

PICA Assets Total Adjusted Capital4
General Account $127 billion $14 billion

1As of December 31, 2017.

2Financial strength ratings represent the opinions of rating agencies regarding the financial ability of an insurance company to meet its obligations under its insurance policies. A.M. Best Company, which we refer to as A.M. Best, financial strength ratings for insurance companies range from “A++ (superior)” to “s (suspended).” A rating of A+ is the second highest of sixteen rating categories. A.M. Best long-term credit ratings range from “aaa (exceptional)” to “s (suspended).” A.M. Best short-term credit ratings range from “AMB-1+,” which represents an strongest ability to repay short-term debt obligations, to “s(suspended).”

Standard & Poor’s Rating Services, which we refer to as S&P, financial strength ratings for insurance companies range from “AAA (extremely strong)” to “D (default).” A rating of AA- is the fourth highest of twenty-three rating categories. S&P’s long-term issue credit ratings range from “AAA (extremely strong)” to “D (default).” S&P short-term ratings range from “A-1 (highest category)” to “D (default).”

Moody’s Investors Service, Inc., which we refer to as Moody’s, insurance financial strength ratings range from “Aaa (exceptional)” to “C (lowest).” A rating of A1 is the fifth highest of twentyone rating categories. Numeric modifiers are used to refer to the ranking within the group—with 1 being the highest and 3 being the lowest. These modifiers are used to indicate relative strength within a category. Moody’s credit ratings range from “Aaa (highest)” to “C (default)”. Moody’s short-term ratings range from “Prime-1 (P-1),” which represents a superior ability for repayment of senior short-term debt obligations, to “Prime-3 (P-3),” which represents an acceptable ability for repayment of such obligations. Issuers rated “Not Prime” do not fall within any of the Prime rating categories.

Fitch Ratings Inc., which we refer to as Fitch, financial strength ratings range from “AAA (exceptionally strong)” to “C (distressed).” A rating of AA- is the fourth highest of nineteen rating categories. Fitch long-term credit ratings range from “AAA (highest credit quality),” which denotes exceptionally strong capacity for timely payment of financial commitments, to “D (default).” Investment grade ratings range between “AAA” and “BBB.” Short-term ratings range from “F1+ (highest credit quality)” to “D (default).”

Rating information current as of August 1, 2018. For information on other Prudential Financial operating insurance companies, please visit the Investor Relations website at investor.prudential.com.

3Financial size information current as of 12/31/2017. For the most current financial size information, please visit A.M. Best’s website at www.ambest.com. The FSC is designed to provide a convenient indicator of the size of a company in terms of its statutory surplus and related accounts.

4Total Adjusted Capital is surplus, asset valuation reserve and half of the dividend liability. Estimated as of end of December 31, 2017.

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