$10 billion initial reinsurance transaction and $1 billion
equity capital investment establishes new reinsurance platform
positioned for scale and long-term growth on behalf of
customers
Prudential Financial, Inc. (NYSE: PRU) (Prudential) and Warburg
Pincus today announced the launch of Prismic Life Reinsurance, Ltd.
(Prismic), a licensed Class E Bermuda-based life and annuity
reinsurance company. Prudential and Warburg Pincus, together with a
group of investors, have agreed to make equity investments in
Prismic and will oversee its long-term strategy through
participation on its board of directors.
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"This unique reinsurance platform will
play an important role in our vision to be a global leader in
expanding access to investing, insurance and retirement security
for people around the world." -- Charles Lowrey Chairman & CEO,
Prudential (Photo: Business Wire)
Prudential expects to reinsure to Prismic a block of structured
settlement annuity contracts with reserves of approximately $10
billion, subject to the receipt of required regulatory approvals.
Prudential’s obligations to the holders of these annuities will
remain unchanged following the reinsurance arrangement and
Prudential will continue to administer the contracts. From there,
Prudential aims for Prismic to be a strategic reinsurance partner
with the ambition to grow their reinsurance relationship materially
in years to come. PGIM and Warburg Pincus will provide asset
management services to Prismic.
Through expanded reinsurance capacity, Prudential expects
Prismic will allow the company to provide more people with access
to its industry-leading life and annuity products.
Charles Lowrey, chairman and CEO of Prudential Financial, Inc.,
comments: “This unique reinsurance platform will play an important
role in our vision to be a global leader in expanding access to
investing, insurance, and retirement security for people around the
world. Prismic will enhance our ability to address the evolving
needs of our insurance customers and clients while continuing to
meet our obligations to policyholders. It represents a formidable
combination of industry-leading expertise, global capabilities, and
the backing of two of the world’s leading insurance and asset
management firms.”
A group of global investors has agreed to make equity
investments in Prismic, alongside Prudential and Warburg Pincus,
giving Prismic a combined initial equity investment of $1 billion.
Prudential and Warburg Pincus will initially own 20% and 15% of the
equity in Prismic, respectively. Prismic’s board will include two
independent directors and one director nominated by each of
Prudential, Warburg Pincus, and the group of investors.
Prismic will leverage PGIM’s and Warburg Pincus’ global
investment management capabilities across public and private
markets, including public fixed income, private credit, private
real estate, and private equity. Prismic will become a client of
PGIM Portfolio Advisory, a newly established affiliate within PGIM
that combines asset-liability management expertise with portfolio
strategy and asset allocation to deliver integrated solutions
across public and private asset classes.
Chip Kaye, CEO, Warburg Pincus, said: “Warburg Pincus is
thrilled to enter into this strategic partnership with Prudential
in the creation of Prismic. The combination of Prudential’s
significant in-force and new business origination capabilities,
PGIM’s expertise in public fixed income, private credit, and real
estate with our private markets investment capabilities presents
Prismic with a unique opportunity for future, sustainable growth.
Prismic’s strategy of enhancing long-term investment returns
through an end-to-end ecosystem of liability origination,
asset-liability management, and asset management clearly aligns
with our focus on long-term fundamental value creation. We look
forward to the partnership with Prudential and the success of
Prismic.”
Prismic will be led by Amy Kessler, a 30-year financial services
industry veteran, who will serve as CEO. Kessler was the founding
leader of Prudential’s international reinsurance business.
Nandini Mongia, president of Prudential’s Open Architecture
Solutions, will represent Prudential on Prismic’s board. Mongia
most recently served as Prudential’s treasurer where she played a
leading role in the creation of this reinsurance platform. Mike
Thompson, managing director, will represent Warburg Pincus on
Prismic’s board.
ABOUT PRUDENTIAL
Prudential Financial, Inc. (NYSE: PRU), a global financial
services leader and premier active global investment manager with
approximately $1.4 trillion in assets under management as of June
30, 2023, has operations in the United States, Asia, Europe, and
Latin America. Prudential’s diverse and talented employees help
make lives better by creating financial opportunity for more people
by expanding access to investing, insurance, and retirement
security. Prudential’s iconic Rock symbol has stood for strength,
stability, expertise, and innovation for nearly 150 years. For more
information, please visit news.prudential.com.
ABOUT WARBURG PINCUS
Warburg Pincus LLC is a leading global growth investor. The firm
has more than $83 billion in assets under management. The firm’s
active portfolio of more than 250 companies is highly diversified
by stage, sector, and geography. Warburg Pincus is an experienced
partner to management teams seeking to build durable companies with
sustainable value. Founded in 1966, Warburg Pincus has raised 21
private equity and 2 real estate funds, which have invested more
than $112 billion in over 1,000 companies in more than 40
countries. Warburg Pincus has been a leading investor in the
insurance industry for 30 years, investing more than $5 billion in
equity capital across more than 20 investments, globally. These
investments include Aeolus Re, Arch Capital, Fortegra, Foundation
Risk Partners, ICICI Lombard Insurance, K2 Insurance Services,
McGill & Partners, RenaissanceRe, and Somers Re, amongst
others. The firm is headquartered in New York with offices in
Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg,
Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and
Singapore. For more information please visit www.warburgpincus.com.
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Prudential Forward-Looking Statements
Certain of the statements included in this release, such as
those regarding the launch of Prismic, reinsurance transactions
involving Prismic, the provision of asset management services to
Prismic, the anticipated increase in Prudential’s underwriting
capabilities, equity investments in Prismic by global investors and
other institutions, the leadership and operation of Prismic
following its launch, and the impact of Prismic on Prudential’s
business and strategy, constitute forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995. Words such as “expects,” “believes,” “anticipates,”
“includes,” “plans,” “assumes,” “estimates,” “projects,” “intends,”
“should,” “will,” “shall” or variations of such words are generally
part of forward-looking statements. Prudential’s forward-looking
statements are made based on management’s current expectations and
beliefs concerning future developments and their potential effects
upon Prudential Financial, Inc. and its subsidiaries. There can be
no assurance that future developments affecting Prudential
Financial, Inc. and its subsidiaries will be those anticipated by
management. These forward-looking statements are not a guarantee of
future performance and involve risks and uncertainties, and there
are certain important factors that could cause actual results to
differ, possibly materially, from expectations or estimates
reflected in such forward-looking statements. Certain important
factors that could cause actual results to differ, possibly
materially, from expectations or estimates reflected in such
forward-looking statements can be found in the “Risk Factors” and
“Forward-Looking Statements” sections included in Prudential’s
Annual Report on Form 10-K. Prudential does not undertake to update
any particular forward-looking statement included in this
document.
Prudential Financial, Inc. of the United States is not
affiliated in any manner with Prudential plc, an international
group incorporated in the United Kingdom or the Prudential
Assurance Company, a subsidiary of M&G plc, a company
incorporated in the United Kingdom.
CONNECT WITH US: Visit prudential.com Follow @PrudentialNews
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MEDIA CONTACTS Laura Edling Prudential +1 973-529-2392
laura.edling@prudential.com Kerrie Cohen Warburg Pincus +1
212-878-9207 kerrie.cohen@warburgpincus.com
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