Prudential & Warburg Pincus Launch Prismic Life Re
Prudential Financial, Inc. (NYSE: PRU) and Warburg Pincus have jointly announced the establishment of Prismic Life Reinsurance, Ltd. (Prismic), a licensed Class E Bermuda-based life and annuity reinsurance company. Prudential and Warburg Pincus, along with a consortium of investors, will make equity investments in Prismic and provide strategic oversight through participation on its board of directors.
Prudential
plans to reinsure a block of structured settlement annuity contracts with
reserves totaling approximately $10 billion to Prismic, pending regulatory
approvals. Prudential's obligations to annuity holders will remain unchanged,
and it will continue to administer the contracts. Prismic aims to become a
significant reinsurance partner for Prudential, with an eye toward expanding
their reinsurance relationship in the future.
PGIM and
Warburg Pincus will offer asset management services to Prismic. The consortium
of investors will join Prudential and Warburg Pincus in providing an initial
combined equity investment of $1 billion. Prudential and Warburg Pincus will
initially hold 20% and 15% of the equity in Prismic, respectively. The board of
Prismic will include representatives from Prudential, Warburg Pincus, and
independent directors.
Amy
Kessler, a seasoned financial services professional and the former leader of
Prudential's international reinsurance business, will serve as Prismic's CEO.
Nandini Mongia, President of Prudential's Open Architecture Solutions, will
represent Prudential on Prismic's board, while Mike Thompson, Managing
Director, will represent Warburg Pincus.
Prudential
aims to leverage Prismic to expand access to its life and annuity products by
increasing its reinsurance capacity. The partnership aligns with Prudential's
goal of becoming a global leader in providing access to investing, insurance,
and retirement security.
Warburg
Pincus, a leading global growth investor with significant experience in the
insurance industry, views this partnership as an opportunity for future growth
and value creation. Prismic will benefit from the expertise of both Prudential
and Warburg Pincus, combining asset origination, asset-liability management,
and asset management capabilities for long-term investment returns.
This
strategic partnership between Prudential and Warburg Pincus, along with the
consortium of investors, positions Prismic as a formidable player in the life
and annuity reinsurance sector.
For more
information about Prudential Financial, Inc., please visit news.prudential.com.
Warburg Pincus LLC is a leading global growth investor with over $83 billion in
assets under management. Their active portfolio comprises more than 250
companies across various sectors and geographies. For additional details about
Warburg Pincus, please visit www.warburgpincus.com.
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