Prudential Financial Inc.’s PRU business unit Prudential Individual Life Insurance together with Assurance IQ introduced a term life product known as SimplyTerm.
The new term life product, SimplyTerm has been launched on the digital platform of Assurance IQ in Wisconsin, Connecticut, Ohio, Washington, Oregon, Maryland, Indiana, Arizona, Alabama and Missouri. Customers can access the insurance products at any time. This launch has boosted the business with the combined effect of the brand value of Prudential and direct sales to the large number of customers through Assurance.
This new product will help Prudential capitalize on the opportunity provided by the $12 trillion life insurance coverage gap in the market. Also, this technology platform can cater to increasing demand for life insurance coverages of online insurance shoppers. With the aid of SimplyTerm, customers can apply for life insurance coverage for up to $1 million for premium periods, which can extend to 20 years.
The Individual Life business of Prudential Financial develops and distributes variable life, universal life and term life insurance products primarily to U.S. customers with a focus on providing life insurance solutions to protect individuals, families and businesses and to support estate and wealth transfer planning.
Revenues in this business unit increased 3.2% to $1.5 billion and total annualized new business premiums grew 14.7% to $187 million, which included $40 million sales of term life products, in the first quarter of 2020.
Assurance IQ is an online insurance startup, which was acquired by Prudential Financial in October 2019 for $2.35 billion. Assurance has accelerated the strategy and growth potential of Prudential’s financial wellness businesses, by bringing more people across the entire socio-economic spectrum closer to Prudential. It resulted in better customer outcomes by driving higher levels of engagement and conversion.
Shares of this Zacks Rank #4 (Sell) multi-line insurer have lost 35.3% in a year’s time, compared with the industry’s decline of 21.3%. Nevertheless, Prudential’s policy to ramp up growth and solidify its capital position should continue to drive shares higher.
Stocks to Consider
Some better-ranked stocks from the same space are EverQuote, Inc. EVER, CNO Financial Group, Inc. CNO and Horace Mann Educators Corporation HMN, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EverQuote operates an online marketplace for insurance shopping in the United States and caters to consumers shopping for auto, home and renters, life, health, and commercial insurance. It surpassed estimates in each of the last four quarters, with the average positive surprise being 86.67%.
CNO Financial develops, markets, and administers health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. It beat estimates in three of the trailing four quarters, the average positive surprise being 12.51%.
Horace Mann operates as a multiline insurance company in the United States. It underwrites and markets personal lines of property and casualty insurance. It surpassed estimates in two of the last four quarters, with the average positive surprise being 11.03%.
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