1137774--2/28/2006--PRUDENTIAL_FINANCIAL

related topics

{loss, insurance, financial}

{operation, international, foreign}

{tax, income, asset}

{regulation, change, law}

{provision, law, control}

{cost, contract, operation}

{capital, credit, financial}

{debt, indebtedness, cash}

{operation, natural, condition}

{acquisition, growth, future}

{stock, price, share}

{financial, litigation, operation}

{regulation, government, change}

{condition, economic, financial}

{competitive, industry, competition}

Market fluctuations and general economic, market and political conditions may adversely affect our business and profitability. Interest rate fluctuations could adversely affect our businesses and profitability. If our reserves for future policyholder benefits and claims are inadequate, we may be required to increase our reserves, which would adversely affect our results of operations and financial condition. Our profitability may decline if mortality rates, morbidity rates or persistency rates differ significantly from our pricing expectations. We may be required to accelerate the amortization of deferred policy acquisition costs, or DAC, or valuation of business acquired, or VOBA, or recognize impairment in the value of our goodwill, which could adversely affect our results of operations or financial condition. A downgrade or potential downgrade in our claims-paying or credit ratings could limit our ability to market products, increase the number or value of policies being surrendered, increase our borrowing costs and/or hurt our relationships with creditors or trading counterparties. Losses due to defaults by others, including issuers of investment securities or reinsurance and derivative instrument counterparties, could adversely affect the value of our investments or reduce our profitability. Intense competition could adversely affect our ability to maintain or increase our market share or profitability. Changes in U.S. federal income tax law or in the income tax laws of other jurisdictions in which we operate could make some of our products less attractive to consumers and increase our tax costs. We have substantial international operations and our international operations face political, legal, operational and other risks that could adversely affect those operations or our profitability. Fluctuations in foreign currency exchange rates could adversely affect our profitability. Our businesses are heavily regulated and changes in regulation may reduce our profitability. Legal and regulatory actions are inherent in our businesses and could adversely affect our results of operations or harm our businesses or reputation. The occurrence of natural or man-made disasters could adversely affect our results of operations and financial condition. Our risk management policies and procedures and minority investments in joint ventures may leave us exposed to unidentified or unanticipated risk, which could adversely affect our businesses or result in losses. We face risks arising from acquisitions, divestitures and restructurings, including client losses, surrenders and withdrawals, difficulties in integrating and realizing the projected results of acquisitions and contingent liabilities with respect to dispositions. Changes in our discount rate, expected rate of return and expected compensation increase assumptions for our pension and other postretirement benefit plans may result in increased expenses and reduce our profitability. Our ability to pay shareholder dividends, to continue share repurchases and to meet obligations may be adversely affected by limitations imposed on inter-affiliate distributions and transfers by Prudential Insurance and our other subsidiaries. Regulatory requirements, provisions of our certificate of incorporation and by-laws and our shareholder rights plan could delay, deter or prevent a takeover attempt that shareholders might consider in their best interests. Holders of our Common Stock are subject to risks due to the issuance of our Class B Stock, a second class of common stock.

Full 10-K form ▸

1137774--2/28/2006--PRUDENTIAL_FINANCIAL_INC