Updated from 6:47 a.m. EDT NEW YORK -- Prudential Financial (PRU) said it won't take funds from the government's financial rescue program, but is planning to raise $1.25 billion on its own through the sale of common stock.
The Newark, N.J.-based insurance and financial services firm said it won't participate in the Treasury Department's Troubled Asset Relief Program. Last month, the government said it would allow six major insurers to tap the program for additional capital.
Prudential said it is launching a public stock offering to raise $1.25 billion. It will use the new cash for general corporate purposes, which could include adding capital to its insurance subsidiaries and for the repayment of short-term debt.
Prudential lost $5 million during the first quarter, though it did record an operating profit of $436 million. As of March 31, Prudential's unrealized losses on investments totaled $11.25 billion. The unrealized losses were mostly tied to a decline in value of investment-grade securities the firm still holds. The value of many investments, such as mortgage-backed securities, has plummeted since the middle of 2007.
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