Prudential suspends insurance product distribution deal with Wells Fargo
Prudential Financial Inc. said Monday that it will suspend the distribution of its MyTerm insurance product through all Wells Fargo & Co. branches and website while it reviews the bank's sale practices. The MyTerm product was launched in 2007, and is designed to give customers more choices and access to life insurance. The company had entered into a distribution agreement with Wells Fargo in June 2014. The suspension of the agreement follows Wells Fargo's sales practice scandal earlier this year. "We stand behind the MyTerm product but have decided to suspend sales of that product through Wells Fargo's retail banking franchise until we have all the facts about whether it is being distributed properly and in the best interest of customers," said Steve Pelletier, chief operating officer of Prudential's U.S. business. Prudential's stock was little changed in premarket trade, while Wells Fargo's tacked on 0.3%. Year to date, Prudential shares have climbed 30%, Wells Fargo's stock has gained 5.1% and the S&P 500 has advanced 11%.
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