Prismic Life has agreed to reinsure a portion of Prudential Financial’s recently originated Japanese whole life policies.
Under the terms of the agreement, Prismic will reinsure approximately $5bn of reserves backing USD-denominated Japanese whole life insurance policies originated by Prudential’s Japanese affiliates. Prudential’s obligations to these policyholders will remain unchanged following the reinsurance arrangement, and Prudential will continue to administer the contracts.
The transaction expands Prismic’s growing reinsurance platform and builds on the existing relationship between Prismic and Prudential, including in-force and new business flow transactions now covering more than $22bn of USD-denominated liabilities.
“This is another important milestone in Prismic’s growth journey,” said 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,” said 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 follows a period of significant momentum for Prismic, including its recently announced transaction with Daiichi Life. With the closing of this transaction, Prismic manages approximately $25bn of assets to support assumed liabilities.
