Prudential makes Fortune magazine’s prestigious 2018 Change the World list, highlighting companies that made a positive social impact through their core business strategy.
In the decade since Prudential created the modern pension risk transfer, the company has issued billions of dollars in retirement payments to millions of retirees. Those payments—$5.2 billion to more than 1.4 million retirees in 2017 alone—have ripple effects. The money supports people of all economic levels, and, in turn, reverberates in the communities in which these retirees live.
It’s that type of visionary corporate impact that landed Prudential, for the first time, on Fortune magazine’s prestigious 2018 Change the World list, highlighting companies that made a positive social impact through their core business strategy.
Launched in 2015, the list is intended to showcase the power of capitalism to improve the human condition by identifying companies that have made an important social or environmental impact through profit-making strategy and operations. Qualifying companies have annual revenue exceeding $1 billion and are evaluated on four factors: measurable social impact, business results, degree of innovation and level of executive commitment to purpose-driven growth.
Through its pension risk transfer business, Prudential Retirement takes on the responsibility for increasingly expensive pension obligations of companies with traditional pension benefits. The well-being of those retirees is now fulfilled by a highly regulated insurance company, enabling the companies to focus on doing what they do best.
“Securing a place on this year’s Change the World list is a tremendous recognition of our company’s commitment to purpose-driven work, and our position as a leader in financial wellness,” says Chairman and CEO, John Strangfeld. “It also underscores the far-reaching positive impact of our pension risk transfer business by highlighting the social benefits of the product.”
In choosing Prudential number 34 on this year’s list—and the top life insurer—Fortune noted the substantial impact the company’s pension risk transfer business has had on client companies and the pension promises they made to employees and retirees.
Profitability and contribution to shareholder value were also considered in the Change the World ranking, and Prudential’s leading position in pension risk transfer made it a big growth driver for the company, contributing premiums and investment returns to its operating income. At the end of 2016, Prudential’s pension risk transfer and longevity reinsurance businesses managed $93 billion in pension account values.
“Pension risk transfers are not only a business opportunity for Prudential, they also make a difference in the lives of millions of people,” says Phil Waldeck, president of Prudential Retirement. “Keeping promises is in Prudential’s DNA. We have been doing it for more than 140 years and this is validation of our team’s commitment to helping retirees maintain financial wellness.”