Prismic Life Holding Company, LP, a reinsurance company providing capital and risk management solutions to insurers, has reached an agreement with Prudential Financial, Inc., covering a portfolio of Japanese whole life insurance business.
As part of the arrangement, Prismic will assume reinsurance on approximately $5 billion of reserves associated with USD-denominated whole life policies issued by Prudential’s Japanese affiliates. The transaction will not alter Prudential’s existing commitments to policyholders. Prudential will also retain responsibility for administering the policies.
Prismic said the agreement represents a further expansion of its reinsurance activities and extends its relationship with Prudential. Including previous in-force and new business flow arrangements, the companies’ transactions now encompass more than $22 billion of USD-denominated liabilities, according to Prismic.
“This is another important milestone in Prismic’s growth journey,” commented 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,” added 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.”
The agreement comes after Prismic announced a separate transaction with Daiichi Life, adding to a series of transactions supporting the development of its reinsurance platform. Once the Prudential transaction has closed, Prismic expects to manage approximately $25 billion in assets supporting assumed liabilities.
Prismic Life was advised by PGIM, Inc., Agam Capital Management LLC, Willkie Farr & Gallagher LLP and Appleby (Bermuda) Limited. Prudential Financial was advised by Debevoise & Plimpton LLP.
