Prudential Transfers US$7 Billion in Reserves to Prismic Life.
Agreement Strengthens Expanding Partnership in the Global Reinsurance Market 
Prudential Financial, Inc. has entered into an agreement to transfer approximately US$7 billion in reserves from its recently issued USD-denominated Japanese whole life insurance policies to Prismic Life, a Bermuda-based reinsurance company.
This agreement enables Prudential to maintain its obligations to policyholders while delegating the management of the reserves to Prismic Life. The insurance contracts will continue to be administered by Prudential’s affiliates in Japan.
Charles Lowrey, CEO of Prudential Financial, commented, “Prismic is honored to provide a reinsurance solution for Prudential’s Japanese whole life insurance policies. This transaction will further scale this distinctive reinsurance platform. We look forward to strengthening our strategic partnership with Prismic to expand access to investments, insurance, and retirement security globally.”
As part of the transaction, Prudential will make an equity investment of around US$100 million in Prismic, with additional contributions from other global investors amounting to US$400 million.
This marks the second significant transaction between Prudential and Prismic, boosting the reinsurance platform’s assets under management (AUM) to an estimated US$17 billion.
Prismic Life sees this deal as a significant step in diversifying its earnings and risk profile. This initiative is part of a broader partnership involving Prudential, Warburg Pincus, and a group of global investors. The company’s investment portfolio will continue to be managed by PGIM Multi-Asset Solutions and Warburg Pincus, with a focus on public fixed income, private credit, real estate, and private equity markets.
The deal, finalized in December and approved by Prismic’s investors in January, is now pending regulatory approvals and customary closing conditions.
Legal and advisory services for the transaction were provided by PGIM Multi-Asset Solutions LLC, Agam Capital Management LLC, Willkie Farr & Gallagher LLP, Appleby (Bermuda) Limited, and Debevoise & Plimpton LLP.
