Prismic Life Holding Company has entered into an agreement with Prudential Financial to reinsure a portion of Prudential’s recently originated Japanese whole life policies.
Under the terms of the agreement, Prismic will reinsure approximately $5bn of reserves backing US dollar-denominated Japanese whole life insurance policies originated by Prudential’s Japanese affiliates. Prudential’s obligations to these policyholders will remain unchanged following the reinsurance arrangement, and Prudential will continue to administer the contracts.
“This is another important milestone in Prismic’s growth journey,” said Nandini Mongia, Group Executive Chair and Chief Executive Officer of Prismic.
“Prismic was built to deliver innovative reinsurance solutions that help clients manage capital, risk, and balance sheet management needs, and we’re proud to deliver another solution that advances those objectives.”
“This transaction with Prismic reflects our continued focus on disciplined capital allocation,” said Andy Sullivan, Chairman and Chief Executive Officer of Prudential Financial.
“It is another step in executing our strategy and reinforces the actions we’ve taken to strengthen our business and enhance financial flexibility.”
Prismic Life was advised by PGIM, Agam Capital Management, Willkie Farr & Gallagher, and Appleby (Bermuda). Debevoise & Plimpton served as legal counsel to Prudential Financial.
