Prudential closing down Assurance, tech startup acquired for $2.35B in 2019.

May 11, 2024
1 min read



Prudential to shut down Assurance

TLDR:

Prudential is shutting down Assurance, the insurance tech startup it acquired for $2.35 billion in 2019. This decision comes after a review of their businesses and strategic initiatives, with a focus on core capabilities and higher growth. The shutdown resulted from missed financial targets, government inquiries, and the broader tech downturn. Prudential reported first-quarter net income of $1.1 billion, down from $1.46 billion in the year-ago period.

Key Elements:

  • Prudential is closing Assurance, the tech startup it purchased for $2.35 billion in 2019.
  • The decision to wind down Assurance came after a review of the company’s business and strategic initiatives, focusing on core capabilities and higher growth.
  • Assurance faced challenges such as missed financial targets, government inquiries, and struggles amidst the broader tech downturn.
  • Prudential reported a decrease in first-quarter net income from the year-ago period.

Insurance giant Prudential made the decision to shut down Assurance IQ, the tech startup it acquired for $2.35 billion in 2019. This move comes as part of Prudential’s strategy to invest directly in its core businesses and capabilities to become a higher growth and more capital-efficient company. The closure of Assurance follows a period of challenges, including missed financial targets, government inquiries, and struggles within the broader tech industry downturn.

Despite initially anticipating a different outcome when acquiring Assurance, Prudential chose to exit the business and focus on acquiring more established businesses that offer opportunities to expand capabilities and scale in existing market-leading segments. Prudential reported a decrease in first-quarter net income compared to the previous year. The decision to wind down Assurance reflects the company’s commitment to prioritizing core businesses and competitive advantages for future growth and success.


Latest from Blog

Your Daily InsurTech Briefing – 2024-09-24

Let’s see what’s in the news today. Insurers grapple with AI ethics and regulation USAA, MMG Insurance and Munich Re executives spoke about these insurers’ efforts to model risk and use data

Genius.AI teams up with ClickBank for AI digital marketing!

TLDR: Genius.AI partners with ClickBank to revolutionize digital marketing with AI-powered solutions. The collaboration introduces cutting-edge AI technology to ClickBank’s affiliate network, simplifying processes for new and experienced users. Genius.AI, a leader