Prudential Financial has reported the decision of its board to provide a $600 million increase to its existing stock buyback program. The insurance and financial services company now has $2.1 billion to be used in share repurchases for 2005.
Arthur Ryan, chairman and CEO of Prudential Financial, indicated that the company’s strong capital position had given it the financial flexibility to increase its share repurchase program.
Prudential’s board had previously authorized the repurchase of up to $1.5 billion of its outstanding common stock in 2005. From January 1, 2005 through June 7, 2005, the company has repurchased approximately $678 million of its common stock under this program.
Separately, Prudential Financial said that it planned to conduct an internal review of how it accounts for reinsurance transactions following the increased publicity surrounding the insurance industry.