The potential de-mutualization of The Prudential Insurance Company of America:
How it could impact former Prudential clients of London Life

IN 1996, LONDON LIFE ACQUIRED most of the Canadian business of The Prudential Insurance Company of America. Many of these clients of London Life still retain their original Prudential individual life insurance contracts.

The Prudential Insurance Company of America is now considering de-mutualization. If former Prudential individual policyholders terminate their policies, they may be giving up potential rights to the distribution of cash, company shares, or enhanced policy benefits if Prudential decides to de-mutualize in the future. No determination has yet been made as to who would be eligible, the amount or type of distribution which may be provided, or if Prudential will de-mutualize.

A communications program has been developed for London Life's former Prudential individual insurance clients who are at risk of lapse or who request to cash surrender or replace their policy. In these cases, clients will be advised that if they do not maintain their policies in force, they may be giving up their rights to any future distribution of value if Prudential demutualizes in the future.