US insurance and investment firm, Prudential Financial Inc., has closed a reinsurance transaction for a portion of its guaranteed universal life block with Wilton Re.
Readers may recall, in August, Prudential Financial entered into an agreement with Wilton Re to reinsure approximately $11 billion of reserves supporting a portion of its guaranteed universal life block.
From what we understand, this transaction advances Prudential’s strategic progress to become a higher growth and more capital efficient company.
At the same time, Prudential also confirmed that it has restructured a series of internal captive reinsurance arrangements for a portion of its in-force term life insurance block.
As a result of this transaction, the organisation expects to incur one-time pre-tax expenses of approximately $40 million in the fourth quarter of 2024, due to extinguishment of certain financing facilities.
The company is also anticipating for an increase in pre-tax annual adjusted operating income of approximately $25 million, beginning in 2025.
Earlier this month, the Board of Directors of Prudential Financial appointed Andrew Sullivan as the company’s next Chief Executive Officer (CEO), effective March 31, 2025, succeeding Charles F. Lowrey.
Lowrey is expected to remain as Executive Chairman of the Board for 18 months, working with the Board and supporting and advising Sullivan.
