New Jersey’s Department of Banking and Insurance notified Prudential Insurance Company of America that the company’s application for demutualization has been completed. By finalizing the arrangement, the department’s Commissioner has set a date for a public hearing on the demutualization. Prudential can now proceed with policyholders’ notifications and a policyholder vote on the proposal to switch to a publicly traded stock company.
According to New Jersey’s Division of Insurance, the determination of completeness does not represent approval of the demutualization plan or feedback on the plan’s merits. The move just means that all parts of the plan are in place and the department’s review plan can continue.
If the plan receives the go-ahead from both policyholders and the Department, Prudential plans to conduct an Initial Public Offering (IPO) of up to $3.9 billion and finish the conversion by year’s end.
With the moves under way, Prudential plans to mail each policyholder information on and a copy of the plan, notice of the public hearing, the rules for voting, and an estimate for policyholder compensation if demutualizion does in fact take place. The mailings will be completed in stages over a course of several weeks due to the fact that there are some 11 million policyholders across the country.
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