Executive Vice President Andrew Sullivan will take the reins as Prudential Financial Inc.’s next CEO in 2025.

The Newark anchor institution announced the current head of International Businesses and Global Investment Management as successor to Chairman and Chief Executive Officer Charles Lowrey Dec. 3.

According to the company, Lowrey will remain executive chairman of the board for 18 months to facilitate the transition. Sullivan’s appointment is effective March 31, 2025.

Additionally, Prudential announced Caroline Feeney will take on the role of global head of Insurance and Retirement that same day.

Sullivan joined Prudential in 2011, holding successive leadership positions — including heading all of the firm’s U.S.-based businesses. He currently oversees both the company’s International Insurance segment and PGIM, the firm’s $1.4 trillion global investment management business.

As part of its executive leadership team, the company said Sullivan has played an important part in driving strategy.

Prudential revealed a series of leadership changes recently. Last month, it announced a former Morgan Stanley executive would take the lead at PGIM. To start the year, a series of moves included Yanela Frias’ appointment as executive vice president and CFO, succeeding Ken Tanji.

It’s also made changes throughout its ranks. Dating to February, the company has announced more than 600 layoffs this year, according to notices filed with the New Jersey Department of Labor & Workforce Development. Included in that total were planned cuts announced last year that the company said at the time aimed to reduce management levels by one-third.

Driving change

For the third quarter of 2024, Prudential reported net income of $448 million, compared with a net loss of $802 million for the same quarter last year.

“Our third quarter performance reflects continued momentum in our global investment, insurance, and retirement businesses,” Lowrey said of the results. “Prudential reported robust sales across our U.S. and international insurance and retirement businesses, as well as strong investment performance and private credit originations in PGIM.

“We also continue to shift our business mix, through the recently announced $11 billion Guaranteed Universal Life reinsurance transaction, and by expanding our distribution capabilities and diversifying our products to grow our market-leading businesses.”

Generation next

Lowrey described the next CEO as “an exceptional leader who brings a deep understanding of our businesses, our strategy, our people, and our customers to this role,” adding he was the “right leader” to take Prudential into the future.

“As we approach the 150th anniversary of Prudential’s founding, now is the right time to elevate the next generation of leadership, and I look forward to continuing to support Andy in my role as Executive Chairman.”

Lowrey joined Prudential in 2018, taking over for longtime leader John Strangfeld. Last year, New Jersey Performing Arts Center named him and Merck & Co. Inc. Vice President of Social Business Innovation Carmen Villar as co-chairs of its board.

“I am honored to have the opportunity to lead this company as it embarks on its next chapter,” said Sullivan. “I would like to thank Charlie and the Board of Directors for their confidence and trust in me. Under Charlie’s leadership, Prudential has made substantial progress towards becoming a higher growth, more capital-efficient company, refined its business mix, invested in technology, and innovated new products. I look forward to working with Prudential’s leadership team and employees to advance our strategy and expand Prudential’s position as a leader in investing, insurance, and retirement security,” said Sullivan.

Falzon’s 40-plus year tenure to end

Feeney’s appointment to the newly created lead for Insurance and Retirement marks an expansion of her role. She has led the company’s U.S. Businesses since 2021.

Prudential’s most recent announcement also revealed longtime board member and Vice Chair Robert Falzon will step down from the board, effective March 31, 2025, and retire from the company, effective July 11.

Throughout his more-than-four-decade career with Prudential, Falzon has served as executive vice president and CFO of Prudential, as well as company treasurer and managing director of PGIM Real Estate, head of PGIM’s Global Merchant Banking and Global Real Estate Securities groups and CEO of its European business.

“On behalf of the Board, I would like to thank Charlie for his leadership and continued commitment to Prudential,” commented Prudential Lead Independent Director Michael Todman. “Among many other achievements, Charlie was the principal architect of a complex strategic transformation that has positioned Prudential to be a nimble, dynamic, and high-growth company for years to come.

“After thoroughly considering a diverse array of candidates for the CEO role, the Board is confident that Andy is the right leader to continue this progress. I also want to thank Rob for his leadership and his many contributions to Prudential and wish him well in his retirement.”