Prudential transfers US$7 billion in reserves to Prismic Life

The agreement solidifies a growing partnership in the global reinsurance market

Prudential transfers US$7 billion in reserves to Prismic Life

Reinsurance

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Prudential Financial, Inc. is transferring approximately US$7 billion in reserves from its recently issued USD-denominated Japanese whole life insurance policies to Prismic Life, a Bermuda-based reinsurance firm.

The agreement allows Prudential to retain its obligations to policyholders while outsourcing the management of reserves to Prismic. The insurance contracts will continue to be administered by Prudential’s Japanese affiliates. 

“Prismic is proud to provide a reinsurance solution for Prudential’s Japanese whole life insurance policies. This transaction adds further scale to this unique reinsurance platform. We look forward to deepening our strategic partnership with Prismic to help grow our business and expand access to investing, insurance, and retirement security around the world,” Prudential Financial CEO Charles Lowrey said.

As part of the agreement, Prudential will make an equity investment of approximately US$100 million in Prismic, while other global investors will contribute an additional US$400 million. 

The move marks the second major transaction between Prudential and Prismic, further expanding the reinsurance platform’s assets under management (AUM) to an estimated US$17 billion.

Prismic Life views the transaction as a step toward diversifying its earnings and risk profile as established in partnership with Prudential, Warburg Pincus, and a global group of investors. Its investment portfolio will continue to be managed by PGIM Multi-Asset Solutions and Warburg Pincus, focusing on assets across public fixed income, private credit, real estate, and private equity markets. 

Finalized in December and ratified by Prismic’s investors in January, the deal is pending regulatory approvals and customary closing conditions. 

Legal and advisory services for the transaction were provided by PGIM Multi-Asset Solutions LLC, Agam Capital Management LLC, Willkie Farr & Gallagher LLP, Appleby (Bermuda) Limited, and Debevoise & Plimpton LLP.

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