Prudential weighs sale of its retirement arm

Unloading the business could bring in more than $2 billion, as CEO Charles Lowrey executes a three-year strategy to transform the business.

Prudential Financial Inc. is exploring a sale of the bulk of its retirement business, which could fetch more than $2 billion, according to people familiar with the matter.

The life insurer is working with a financial adviser to find buyers for its so-called full-service solutions business, said one of the people, who asked not to be identified because the matter isn’t public.

The business provides retirement products to public and private companies and nonprofits. No final decision has been made and Prudential could opt to keep the business, the people said.

A representative for Prudential Financial declined to comment.

The company’s CEO, Charles Lowrey, has a three-year strategy to transform it through deals, cost savings and share buybacks, he said in a February interview. Part of that process includes shedding interest-rate-sensitive businesses and making acquisitions in growth markets.

The potential sale comes as insurers part with retirement-related assets to focus on their core operations. Great-West Lifeco Inc. agreed last year to buy Massachusetts Mutual Life Insurance Co.’s retirement services arm for $3.4 billion.

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