PRUDENTIAL TO OFFER ENTIRE STAKE IN REINSURANCE UNIT

PRUDENTIAL TO OFFER ENTIRE STAKE IN REINSURANCE UNIT

Prudential Insurance Co. of America will increase the number of shares it is proposing to offer in the spinoff of its reinsurance subsidiary.

The company said it will offer to the public its entire interest in Prudential Reinsurance Holdings, up to 50 million share of common stock, at $15 to $18 a share. The company had previously said it would offer only a 40 percent stake in the company. That plan would have brought the company approximately $400 million, while this move will bring in $750 million to $900 million."We are taking advantage of the market opportunity," Prudential spokesman Bob DeFillippo said Monday. "We had previously stated our desire to leave the reinsurance business completely. When we met with potential investors in September, we were advised we could sell the entire" initial public offering. Lead underwriters for the offering are Goldman, Sachs & Co., Prudential Securities Inc., Lehman Brothers Inc. and J.P. Morgan Securities Inc.

The Prudential announcement came the same day another major insurer, Aetna Life & Casualty, said it is considering the sale of its troubled property/ casualty subsidiary.

The Hartford, Conn., company said in a statement it was "continuing to review strategic options for all its businesses, which may result in acquisitions, sales or spinoffs."

Aetna said in the second quarter added $488 million to its P/C company's environmental reserves for possible litigation, after adding $77 million the year before.

For the first six months of 1995, Aetna reported a net loss of $136.1 million, after seeing net income of $178.1 million, or $1.58 a share, for the period last year. The six-month combined ratio deteriorated to 147.1 percent

from 125 percent for the period in 1994. A combined ratio measures the percentage of premium spent on claims and expenses.