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Prudential IPO in question
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September 25, 2001: 7:14 p.m. ET
Insurer to decide in 3-to-4 weeks whether to go forward with IPO or delay
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NEW YORK (CNNfn) - Prudential Financial will review market conditions in three-to-four weeks and decide then whether to continue or delay its $3.9 billion initial public offering, a spokesman told CNNfn.com.
Prudential Financial was slated to go public in fourth quarter, but is now reviewing its decision and weighing whether it will go forward with the offering.
"Our commitment to become a public company has not changed," spokesman Bob DeFilippo said. "Only the timing of the IPO [has]. All we're trying to do is become aware of market conditions."
In April, Prudential filed to raise as much as $3.9 billion in an IPO. Newark, N.J.-based Prudential Financial plans to sell 89 million shares via lead underwriters Goldman Sachs and Prudential Securities Inc. The insurer has yet to announce the price range of the shares.
Last week, Prudential said it would pay benefits for all insurance claims due from the terrorist attacks of Sept. 11 and estimated its exposure to be between $75 million to $125 million after tax.
Prudential it will not apply war exclusions for the destruction of the World Trade Center. With $21.7 billion in equity, Prudential said the WTC attack will not have a material impact on its financial position.
U.S. equity indexes have struggled since the attack. Insurance claims will likely reach into the billions of dollars, and could even surpass the costs of Hurricane Andrew in 1992. Insurers paid more than $19 billion for that natural catastrophe.
U.S.-based insurers, as well as international providers, are expected to foot the bill for the terrorist attacks, which some claim could reach from $10 billion to as much as $30 billion in claims. 
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Prudential
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