Prudential Financial (NYSE: PRU) is streamlining its insurance business by reducing its geographic presence from over a dozen markets to approximately half. This move is expected to generate capital exceeding $3 billion, according to CEO Andy Sullivan, as part of a strategy focusing on growth and capital efficiency. The company plans to invest in global retirement, asset management, and select protection businesses, including U.S. and Japanese life insurance.
To enhance operational efficiency, Prudential anticipates $750 million in cost reductions by the end of 2028, driven by organizational simplification, technology investments, and global capability center expansions in Ireland and India. The company aims to improve its asset-management margins to 30% over time and reduce insurance operating expense ratios by 150 basis points in three years.
Looking to expand through acquisitions, Prudential is evaluating opportunities in asset management and group insurance, including potential partnerships in the U.K. retirement market. Additionally, Prudential’s Japanese operations are being revamped, with plans to resume sales in a phased approach as regulatory discussions progress.
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