Prudential Financial and private equity company Warburg have launched Pincus Prismic Life Reinsurance, a Bermuda-based life and annuity reinsurance company.
The new licensed reinsurance company has received a combined initial equity investment of $1bn from Prudential, Warburg and a group of investors.
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It will be led by Prudential’s international reinsurance business founding leader Amy Kessler.
Prudential will initially own a 20% stake in Prismic while Warburg Pincus will own a 15% interest.
The board of Prismic will comprise two independent directors and one director nominated by each of Prudential, Warburg Pincus, and the group of investors.
Prudential anticipates reinsuring to Prismic a block of structured settlement annuity contracts with around $10bn in reserves.
Prudential’s investment management business PGIM and Warburg Pincus will provide Prismic with asset management services.
Prudential Financial chairman and CEO Charles Lowrey said: “This unique reinsurance platform will play an important role in our vision to be a global leader in expanding access to investing, insurance, and retirement security for people around the world.
“Prismic will enhance our ability to address the evolving needs of our insurance customers and clients while continuing to meet our obligations to policyholders. It represents a formidable combination of industry-leading expertise, global capabilities, and the backing of two of the world’s leading insurance and asset management firms.”
Prismic will leverage the global investment management capabilities of PGIM and Warburg Pincus, across public and private markets, including private credit, public fixed income, private real estate, and private equity.
Warburg Pincus CEO Chip Kaye said: “The combination of Prudential’s significant in-force and new business origination capabilities, PGIM’s expertise in public fixed income, private credit, and real estate with our private markets investment capabilities presents Prismic with a unique opportunity for future, sustainable growth.”
