Want a Piece of the Rock?

The Prudential, America's largest life insurance company, is considering going public. The company claims the move would create a $12 billion windfall for its clients about $1,100 per policyholder. But not everyone is convinced this is a good deal for the policyholders. Consumer advocate Ralph Nader worries the shift could mean higher premiums: "Mutual management's only prime allegiance is to policyholders, while stock companies have to cater to shareholders as well as policyholders," Nader was quoted as saying. "The loss of leading mutuals like Prudential means stock insurers will no longer have to compete with mutuals' better performance, which will raise premiums."

For now, the decision awaits approval from state officials in New Jersey. The decision will likely be closely scrutinized, in light of questions about cozy relations in the past between the insurer and the state.