Prudential inks $7 billion reinsurance deal with Bermuda-based reinsurer

Prudential Financial announced an agreement to reinsure 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 $7 billion 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 $17 billion. 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 $100 million, alongside a group of global investors who will invest additional consideration of approximately $400 million.

The consummation of the transaction, which was entered into in December 2024 and ratified by Prismic investors in January 2025, is subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions.

Prismic Life was advised by PGIM Multi-Asset Solutions LLC, Agam Capital Management LLC, Willkie Farr & Gallagher LLP, and Appleby (Bermuda) Limited. Debevoise & Plimpton LLP served as legal counsel to Prudential Financial.

About Prudential Financial
Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.6 trillion in assets under management as of September 30, 2024, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise, and innovation for nearly 150 years. For more information, please visit news.prudential.com.

About Prismic Life
Prismic Life is a global reinsurance platform that benefits from Prudential Financial, Inc.’s sponsorship and PGIM and Warburg Pincus’ market-leading asset management franchises to deliver value for its clients. Prismic Life’s expertise and operational scalability allows it to provide risk and balance sheet management solutions to clients and the opportunity for investors to participate in reinsurance as an investment. For more information about Prismic Life, please visit prismiclife.com.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.