Prudential to reinsure $11bn universal life block with Wilton Re

Prudential Financial, a US insurance and investment firm, has entered into an agreement with Wilton Re to reinsure approximately $11 billion of reserves supporting a portion of its guaranteed universal life block.

This deal is expected to generate roughly $350 million in proceeds after closing.

The transaction involves policies issued by Pruco Life Insurance Company Arizona (PLAZ) and Pruco Life Insurance Company of New Jersey (PLNJ), representing around 40% of Prudential’s remaining guaranteed universal life reserves.

Charles Lowrey, chairman and CEO of Prudential Financial, stated, “This transaction builds upon the strong strategic progress we have made over the past several years to become a higher growth and more capital efficient company.

“We remain committed to growing our diverse, high-quality suite of life insurance products, which are designed to meet the evolving needs of our customers and their families.”

Dmitri Ponomarev, CEO of Wilton Re, said, “We are pleased to provide Prudential a reinsurance solution for a material portion of its in-force guaranteed universal life business.”

He added, “This transaction is consistent with Wilton Re’s strategy to address our clients’ largest and most complex in-force life insurance and annuity needs. We also welcome PGIM to the family of Wilton Re’s asset managers.”

The agreement does not alter the terms of the contracts included in the transaction. Prudential will continue to manage these policies and maintain its relationships with policyholders and distribution partners. The transaction is not expected to impact Prudential’s employee count.

The reinsurance deal is structured on an indemnity coinsurance basis, with substantial protections in place, including overcollateralization and investment guidelines. PGIM Portfolio Advisory will manage the assets backing this block and will also manage additional assets from Wilton Re.

Additionally, for two years after the transaction closes, Prismic will have the option to reinsure 30% of the block from Wilton Re under similar terms.

This announcement follows Prudential’s previous transaction in March 2024, where it reinsured a $12.5 billion guaranteed universal life block with Somerset Re.

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.