Prudential Relocation European Survey Finds Business Expansion and Muti-Nationalism Spur International Job Assignments

Business Wire, March 6, 2006

IRVINE, Calif. -- Businesses participating in a survey by Prudential Relocation, a Prudential Financial, Inc. (NYSE:PRU) business, indicated that the most common reason they re-assign employees across national borders is to help ensure the success of the company's expansion into new markets.

Representatives from 131 European-based companies from 12 countries and 30 industries participated in European Mobility Trends: A Best Practices Survey from Prudential Relocation, which examined short- and-long term international job assignment trends. The majority of respondents (57 percent) indicated that the greatest business driver for international assignments was the need to support market expansion initiatives; and the primary reason (70 percent) specific individuals are sent on international assignments is to enable the transfer of knowledge. Tied for second place (23 percent) for key business drivers are merger and acquisition activities and start-up efforts in the destination location..

"Mergers and acquisitions and start-ups are, in actuality, a form of market expansion. Therefore, growing the business in new, high-potential markets is clearly a desired outcome of using international assignments in Europe as a key staffing strategy," said John O'Connell, senior vice president, International Operations, Prudential Relocation.

In addition, companies participating in the survey identified global service delivery, global pension solutions and improved assignment management as the top three concerns on which the international human resources consulting and the relocation industries should focus.

"Multi-nationalism is a major business trend. Therefore, global service delivery has become a major focus in the relocation industry. As the intricacies of international mobility continue to increase, it becomes an absolute imperative to work with service providers like Prudential Relocation that are skilled in breaking down the complexities of global assignments," said O'Connell.

Another European mobility trend uncovered in the survey was the increasing preference for short - rather than long-term international assignments, for which respondents forecasted a 70 percent increase over the next two years. "The increasing use of short-term assignments is actually a global trend. Short-term assignments are expected to continue at an ever-increasing rate as will an overall mix of other types of assignments, such as traditional long-term assignments, permanent international relocations as well as alternatives such as cross-border commuter assignments and rotator assignments," noted O'Connell.

The survey also found that the top three destination countries for assignees in Europe were the United Kingdom, Germany and France. Increases in volume are expected for the Czech Republic, Italy, Russia, Spain, Poland, Belgium, and the Netherlands. "The most significant implication of these findings will be in housing and destination services," said O'Connell. "Volume increases will mean greater demand and competition for housing and will thus drive market costs higher."

O'Connell added that the survey found that housing costs are the fastest rising expense associated with international assignments. "We are seeing certain markets where housing costs and rents are going up on a monthly basis because of limited inventory, especially in developing Eastern European markets and major centers such as London, Paris and Moscow," said O'Connell.

Prudential Relocation is a unit of Prudential Real Estate and Relocation Services, Prudential's integrated real estate brokerage franchise and relocation services business. Prudential Relocation provides comprehensive global relocation services in the United States, Canada, United Kingdom, France, Mexico, Hong Kong, Singapore, Taipei, Tokyo, and Shanghai. It has the global capabilities to offer a variety of services in connection with the relocation of clients' employees, including coordination of intra- and inter-country relocations, international assignment management, intercultural training, global business consulting, appraisal, inspection and sale of relocating employees' homes, equity advances to relocating employees, assistance in locating a home at the relocating employee's destination, global household goods moving services and client cost-tracking and a variety of relocation policy and group move consulting services and more.

To download a complete report of the survey findings visit www.prudential.com/relocation/europesurvey.> Prudential Financial companies, with approximately $532 billion in total assets under management as of December 31, 2005, serve individual and institutional customers worldwide and include The Prudential Insurance Company of America, one of the largest life insurance companies in the United States. These companies offer a variety of products and services, including life insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, securities brokerage, banking and trust services, real estate brokerage franchises and relocation services. For more information, visit www.prudentialrelocation.com.