Prudential Financial is reinsuring a portion of its recently originated Japanese whole life policies with a subsidiary of Prismic Life, a Bermuda-based life and annuity reinsurance company sponsored by Prudential and Warburg Pincus and supported by a group of global investors.
Under the terms of the agreement, Prismic will reinsure approximately $7bn of reserves backing USD-denominated Japanese whole life insurance policies which were recently 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.
“We are excited to enter a second Prismic transaction alongside our co-investors which adds further scale to this unique reinsurance platform,” said Charles F. Lowrey, chairman and CEO of Prudential Financial.
“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.”
The transaction is expected to bring Prismic’s assets under management to $17bn. PGIM Multi-Asset Solutions and Warburg Pincus will continue to provide asset management services to Prismic across public and private markets, including public fixed income, private credit, private real estate and private equity.
“Prismic is proud to provide a reinsurance solution for Prudential’s Japanese whole life insurance policies,” said Nandini Mongia, group executive chair and CEO of Prismic.
“This transaction further strengthens Prismic’s platform by diversifying its earnings and risk profile, building on the inaugural transaction with Prudential in September 2023.”
As part of the transaction, Prudential intends to make an equity investment in Prismic of approximately $100m, alongside a group of global investors who will invest additional consideration of approximately $400m.
Prismic Life was advised by PGIM Multi-Asset Solutions, Agam Capital Management, Willkie Farr & Gallagher, and Appleby (Bermuda) Limited. Debevoise & Plimpton served as legal counsel to Prudential Financial.
