Prudential subpoenaed by Blumenthal

Prudential Financial Inc. recently received a subpoena from Connecticut Attorney General Richard Blumenthal. The Company plans to cooperate with the subpoena, which is regarding information about the Company’s involvement in questionable reinsurance transactions.
Prudential filed its 8-K with the Securities and Exchange Commission and stated in this filing that it has instigated an ongoing review of the Company’s accounting for past and current reinsurance arrangements. This includes any transactions relating to its wind-down and divested businesses and discontinued operations.
The Company reports it now uses reinsurance primarily to transfer mortality risk, acquire or dispose of blocks of business and to manage its capital more effectively.