US insurer Prudential Financial has entered an agreement to reinsure a portion of its Japanese whole life insurance policies with a Prismic Life unit.
Prismic Life is a Bermuda-based reinsurance company with backing from Prudential and Warburg Pincus, as well as a consortium of global investors.
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Under the agreement, Prismic will reinsure nearly $7bn of reserves with US dollar-denominated Japanese whole life insurance policies, which were recently originated by Prudential’s Japanese affiliates.
Prudential’s responsibilities to policyholders will remain intact and the company will continue to manage the contracts.
This transaction is said to increase Prismic’s assets under management to $17bn.
PGIM Multi-Asset Solutions and Warburg Pincus will maintain their roles in providing asset management services to Prismic, covering investments such as public fixed income, private credit, real estate and private equity.
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By GlobalDataPrudential also plans to make an equity investment of around $100m in Prismic, complemented by nearly $400m from other global investors.
The transaction was initiated in December 2024 and ratified by Prismic investors in January 2025. Its completion is contingent upon regulatory approval and other standard closing conditions.
Advisory services for Prismic Life were provided by PGIM Multi-Asset Solutions, Agam Capital Management, Willkie Farr & Gallagher and Appleby (Bermuda).
Debevoise & Plimpton offered legal advice to Prudential Financial.
Prudential Financial chairman and CEO Charles F Lowrey said: “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.”
Prismic CEO and group executive chair Nandini Mongia stated: “This transaction further strengthens Prismic’s platform by diversifying its earnings and risk profile, building on the inaugural transaction with Prudential in September 2023.”
Last month, Prudential finalised a reinsurance deal with Wilton Re, covering an $11bn block of guaranteed universal life insurance policies.
Issued by Pruco Life Insurance Company Arizona and Pruco Life Insurance Company of New Jersey, these policies constitute around 40% of Prudential’s remaining guaranteed universal life reserves.
