Prudential Financial to reinsure $7bn Japanese Whole Life Block with Prismic

Prudential Financial, Inc. has signed an agreement to reinsure a portion of its recently originated Japanese whole life policies with a subsidiary of Bermuda-based life and annuity reinsurance company Prismic Life.

Under the terms of the agreement, Prismic, sponsored by Prudential and Warburg Pincus and supported by a group of global investors, will reinsure approximately $7 billion of reserves backing USD-denominated Japanese whole life insurance policies which were recently originated by Prudential’s Japanese affiliates.

Prudential noted that its obligations to these policyholders will remain unchanged following the reinsurance arrangement and will continue to administer the contracts.

At the same time, Prudential intends to make an equity investment of approximately $100 million in Prismic as part of the transaction, alongside a group of global investors who will invest additional consideration of approximately $400 million.

It is worth noting that the completion of the transaction, initiated in December 2024 and approved by Prismic investors in January 2025, is contingent upon obtaining regulatory approvals and fulfilling other customary closing conditions.

Prismic Life was advised by PGIM Multi-Asset Solutions LLC, Agam Capital Management LLC, Willkie Farr & Gallagher LLP, and Appleby (Bermuda) Limited, while Debevoise & Plimpton LLP served as legal counsel to Prudential Financial.

PGIM Multi-Asset Solutions and Warburg Pincus will reportedly continue to provide Prismic with asset management services in public and private markets, including public fixed income, private credit, private real estate, and private equity.

Charles F. Lowrey, chairman and CEO of Prudential Financial, commented, “We are excited to enter a second Prismic transaction alongside our co-investors which adds further scale to this unique reinsurance platform.

“We look forward to deepening our strategic partnership with Prismic to help grow our business and expand access to investing, insurance, and retirement security around the world.”

Nandini Mongia, group executive chair and CEO of Prismic, said, “Prismic is proud to provide a reinsurance solution for Prudential’s Japanese whole life insurance policies.

“This transaction further strengthens Prismic’s platform by diversifying its earnings and risk profile, building on the inaugural transaction with Prudential in September 2023.”

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