Prudential Financial to Reinsure $7B Japanese Whole Life Block with Prismic Life
Prudential Financial (NYSE: PRU) has announced an agreement to reinsure approximately $7 billion of reserves from its Japanese whole life insurance policies with Prismic Life, a Bermuda-based reinsurance company. This marks the second transaction between the companies, expanding Prismic's assets under management to an estimated $17 billion.
The agreement covers USD-denominated policies recently originated by Prudential's Japanese affiliates. Prudential will maintain its policyholder obligations and continue administering the contracts. As part of the transaction, Prudential will invest approximately $100 million in Prismic, while global investors will contribute an additional $400 million.
PGIM Multi-Asset Solutions and Warburg Pincus will continue providing asset management services to Prismic across various markets. The transaction, entered in December 2024 and ratified in January 2025, awaits regulatory approvals and other closing conditions.
Prudential Financial (NYSE: PRU) ha annunciato un accordo per riassicurare circa 7 miliardi di dollari di riserve provenienti dalle sue polizze di assicurazione sulla vita intera giapponesi con Prismic Life, una compagnia di riassicurazione con sede nelle Bermuda. Questo rappresenta la seconda transazione tra le aziende, aumentando gli asset gestiti di Prismic a circa 17 miliardi di dollari.
L'accordo copre polizze denominate in dollari USA recentemente originati dagli affiliati giapponesi di Prudential. Prudential manterrà i suoi obblighi verso gli assicurati e continuerà a gestire i contratti. Come parte della transazione, Prudential investirà circa 100 milioni di dollari in Prismic, mentre investitori globali contribuiranno con ulteriori 400 milioni di dollari.
PGIM Multi-Asset Solutions e Warburg Pincus continueranno a fornire servizi di gestione patrimoniale a Prismic in vari mercati. La transazione, stipulata nel dicembre 2024 e ratificata nel gennaio 2025, è in attesa di approvazioni regolatorie e altre condizioni di chiusura.
Prudential Financial (NYSE: PRU) ha anunciado un acuerdo para reasegurar aproximadamente 7 mil millones de dólares de reservas de sus pólizas de seguro de vida entera japonesas con Prismic Life, una compañía de reaseguro con sede en Bermudas. Esta es la segunda transacción entre las empresas, aumentando los activos bajo gestión de Prismic a aproximadamente 17 mil millones de dólares.
El acuerdo cubre pólizas denominadas en dólares estadounidenses que fueron recientemente originadas por las afiliadas japonesas de Prudential. Prudential mantendrá sus obligaciones con los asegurados y continuará administrando los contratos. Como parte de la transacción, Prudential invertirá aproximadamente 100 millones de dólares en Prismic, mientras que inversores globales aportarán un adicional de 400 millones de dólares.
PGIM Multi-Asset Solutions y Warburg Pincus seguirán proporcionando servicios de gestión de activos a Prismic en varios mercados. La transacción, formalizada en diciembre de 2024 y ratificada en enero de 2025, espera aprobaciones regulatorias y otras condiciones de cierre.
프루덴셜 파이낸셜 (NYSE: PRU)는 버뮤다에 본사를 둔 재보험 회사인 프리즘 라이프와 함께 일본 종신 보험 정책의 약 70억 달러의 준비금을 재보험하는 계약을 발표했습니다. 이는 두 회사 간의 두 번째 거래로, 프리즘의 운용 자산을 약 170억 달러로 확대합니다.
이 계약은 프루덴셜의 일본 자회사가 최근에 담보한 미 달러 기준의 보험 정책을 포함합니다. 프루덴셜은 보험 계약자의 의무를 유지하고 계약 관리를 계속합니다. 거래의 일환으로 프루덴셜은 프리즘에 약 1억 달러를 투자하고, 글로벌 투자자들은 추가로 4억 달러를 기여할 것입니다.
PGIM 멀티 자산 솔루션과 워버그 핀쿠스는 다양한 시장에서 프리즘에게 자산 관리 서비스를 계속 제공할 것입니다. 2024년 12월에 체결되고 2025년 1월에 비준된 이 거래는 규제 승인과 기타 종료 조건을 기다리고 있습니다.
Prudential Financial (NYSE: PRU) a annoncé un accord pour réassurer environ 7 milliards de dollars de réserves provenant de ses polices d'assurance vie entière japonaises avec Prismic Life, une compagnie de réassurance basée aux Bermudes. Cela marque la deuxième transaction entre les entreprises, augmentant les actifs gérés par Prismic à environ 17 milliards de dollars.
L'accord couvre des polices libellées en dollars américains récemment émises par les filiales japonaises de Prudential. Prudential conservera ses obligations envers les assurés et continuera à administrer les contrats. Dans le cadre de la transaction, Prudential investira environ 100 millions de dollars dans Prismic, tandis que des investisseurs mondiaux contribueront un montant supplémentaire de 400 millions de dollars.
PGIM Multi-Asset Solutions et Warburg Pincus continueront à fournir des services de gestion d'actifs à Prismic sur divers marchés. La transaction, conclue en décembre 2024 et ratifiée en janvier 2025, est en attente d'approbations réglementaires et d'autres conditions de clôture.
Prudential Financial (NYSE: PRU) hat eine Vereinbarung zur Rückversicherung von ungefähr 7 Milliarden US-Dollar an Rücklagen aus seinen japanischen Lebensversicherungsprodukten mit Prismic Life, einem in Bermuda ansässigen Rückversicherungsunternehmen, bekannt gegeben. Dies stellt die zweite Transaktion zwischen den Unternehmen dar und erhöht die von Prismic verwalteten Vermögenswerte auf schätzungsweise 17 Milliarden US-Dollar.
Die Vereinbarung umfasst in US-Dollar denomierte Policen, die kürzlich von Prudentials japanischen Tochtergesellschaften ausgegeben wurden. Prudential wird weiterhin seinen Verpflichtungen gegenüber den Policeninhabern nachkommen und die Verträge verwalten. Im Rahmen der Transaktion wird Prudential etwa 100 Millionen US-Dollar in Prismic investieren, während globale Investoren zusätzlich 400 Millionen US-Dollar beisteuern werden.
PGIM Multi-Asset Solutions und Warburg Pincus werden weiterhin Dienstleistungen im Bereich Asset Management an Prismic in verschiedenen Märkten erbringen. Die Transaktion, die im Dezember 2024 abgeschlossen und im Januar 2025 ratifiziert wurde, wartet auf Genehmigungen durch die Aufsichtsbehörden und weitere Abschlussbedingungen.
- Reinsurance of $7B in reserves reduces risk exposure for Prudential
- Strategic investment opportunity with $100M equity stake in Prismic
- Maintains revenue stream through continued policy administration
- Strengthens partnership with Prismic while diversifying risk profile
- Transfer of $7B in reserves may impact immediate revenue generation
- Transaction completion dependent on regulatory approvals
Insights
In a strategic move that signals continued evolution in the insurance industry, Prudential Financial has orchestrated a $7 billion reinsurance transaction for its Japanese whole life policies with Prismic Life. This deal represents a sophisticated capital management strategy with multiple advantages:
The transaction effectively allows Prudential to:
- Free up capital from its balance sheet while maintaining customer relationships
- Reduce risk exposure to USD-denominated Japanese policies
- Generate additional investment income through its stake in Prismic
The structure is particularly noteworthy as Prudential maintains both policyholder obligations and administration, essentially creating a 'synthetic' risk transfer while preserving customer relationships. This arrangement allows for capital efficiency without disrupting the underlying business model.
For investors, several key aspects deserve attention:
- Prudential's $100 million equity investment in Prismic, alongside $400 million from other investors, indicates strong institutional confidence in the platform
- The expansion of Prismic's AUM to $17 billion creates economies of scale that could enhance returns
- The continued involvement of PGIM Multi-Asset Solutions and Warburg Pincus provides robust asset management expertise across various asset classes
In simpler terms, think of this as Prudential 'renting out' its risk to Prismic while keeping customer relationships intact. This allows Prudential to use its capital more efficiently while maintaining its market presence in Japan. The transaction represents a modern approach to insurance risk management, where companies can optimize their balance sheets without compromising their market position or customer relationships.
The deal's timing and structure suggest a maturing reinsurance market in Asia, with sophisticated platforms like Prismic emerging as significant players in the risk transfer landscape. For Prudential shareholders, this represents a positive development in capital management strategy while maintaining growth opportunities in the important Japanese market.
Second transaction expands Prismic’s AUM to estimated
Under the terms of the agreement, Prismic will reinsure approximately
“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
“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
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 (
About Prudential Financial
Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately
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.
Prudential Forward-Looking Statements
Certain of the statements included in this release, such as those regarding the planned reinsurance transaction with Prismic Life and the expected completion and the impacts thereof, including the impact to Prismic’s assets under management, PGIM’s provision of asset management services and the anticipated investments in Prismic by Prudential and other investors, constitute forward-looking statements within the meaning of the
The securities subject to the equity investment referred to in this press release have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in
View source version on businesswire.com: https://www.businesswire.com/news/home/20250122152566/en/
Prudential Media Contact: YeaJin Kim, yeajin.kim@prudential.com
Prismic Media Contact: Christian Ercole christian.ercole@prismiclife.com
Source: Prudential Financial, Inc.
FAQ
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