Equitable Life Assurance to Create Subsidiary to Manage Real Estate; Move Illustrates Drive for Diversification in Insurance Industry

By LaGesse, David | American Banker, June 14, 1984 | Go to article overview

Equitable Life Assurance to Create Subsidiary to Manage Real Estate; Move Illustrates Drive for Diversification in Insurance Industry


LaGesse, David, American Banker


NEW YORK -- The Equitable Life Assurance Society of the United States, the nation's third largest life insurance company, soon plans to establish a company for developing, financing, and managing real estate.

The subsidiary, to be called Equitable Real Estate Investment Management Inc., will mark another move by insurance companies to diversify into broader financial services, industry sources say.

The subsidiary will seek new business as an independent profit center and will manage the $20 billion worth of real estate already under Equitable's control. That figure represents about 40% of the company's assets.

Life insurance companies traditionally are large buyers of real estate since they invest cash generated from insurance policies and from pension funds under their management.

Now several carriers are seeking to generate extra income from their investment acumen. They want, in effect, to become investment bankers and brokers for outside concerns.

Equitable, for example, last year spun off the Equitable Investment Management Corp., which handles investments in stocks and bonds. The next move is focused on real estate, an Equitable official said. He declined further comment pending an official announcement.

The Prudential Life Insurance Company of America, the nation's largest insurance carrier, also is segregating its investment departments to go after new businesses. The company recently formed Prudential Mortgage Capital Co. to expand its real estate financing.

"We are starting to look at our investment areas as creating products that can be marketed through the insurance area," said Brian Strum, vice president in real estate investment at Prudential's headquarters in newark, N.J. A 'Revolutionary' Change

That's a big change in the life insurance industry, said Robert Waldron, the New York representative of the American Council of Life Insurance, a trade group.

The investment areas have always serviced the needs stemming from products created and sold in other departments, he said. "It's revolutionary that they now are creating their own products."

Prudential officials have indicated a particular interest in returning to the home mortgage markets, which the life insurance companies largely abandoned as lenders in the 1960s. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Equitable Life Assurance to Create Subsidiary to Manage Real Estate; Move Illustrates Drive for Diversification in Insurance Industry
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.