Prismic Life announces $5 billion reinsurance agreement with Prudential

Prismic Life Reinsurance announced an agreement with Prudential Financial to reinsure a portion of Prudential’s recently originated Japanese whole life policies.

Under the terms of the agreement, Prismic will reinsure approximately $5 billion 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 $22 billion of USD-denominated liabilities.

“This is another important milestone in Prismic’s growth journey. 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.” – Nandini Mongia, group executive chair and chief executive officer of Prismic.

“This transaction with Prismic reflects our continued focus on disciplined capital allocation. It is another step in executing our strategy and reinforces the actions we’ve taken to strengthen our business and enhance financial flexibility.” – Andy Sullivan, chairman and chief executive officer of Prudential Financial.