- Marks key step in executing on Prudential’s strategy, while
maintaining consistent experience for customers and deepening focus
on protected outcome solutions like FlexGuard and FlexGuard
Income
- Demonstrates Fortitude Re’s leadership and expertise in
managing a broad array of long-dated insurance liabilities
Prudential Financial, Inc. (“Prudential”) (NYSE: PRU) and
Fortitude Group Holdings, LLC, the parent company of Bermuda’s
largest multi-line reinsurer (“Fortitude Re”), today announced the
completed sale to Fortitude Re of a portion of Prudential’s legacy
traditional variable annuity block.
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the full release here:
https://www.businesswire.com/news/home/20220331006066/en/
Consistent with the agreement announced on Sept. 15, 2021,
Fortitude Re has acquired one of Prudential’s subsidiaries,
Prudential Annuities Life Assurance Corporation (“PALAC”) (to be
renamed Fortitude Life Insurance & Annuity Company). Included
in the sale is approximately $31 billion of in-force variable
annuity account values, primarily consisting of non-New York,
traditional variable annuities with guaranteed living benefits that
were issued by PALAC prior to 2011.
To ensure a consistent experience for customers, Prudential will
continue to service and administer all contracts in the block
following the transaction. Prudential also will continue to sell
protected outcome annuity solutions through other existing
subsidiaries.
“This transaction is another key step in our journey to become a
higher growth, less market sensitive and more nimble company,” said
Prudential Executive Vice President and Head of U.S. Businesses
Andy Sullivan. “It delivers value for investors and ensures that
our customers continue to be well served. The transaction also
allows Prudential to deepen our focus on expanding access to
retirement security through the growth of protected outcome
solutions, like FlexGuard and FlexGuard Income.”
“Closing on this transaction marks a significant milestone for
Fortitude Re,” said Fortitude Re Chief Executive Officer James
Bracken. “We have demonstrated to Prudential, its policyholders and
other stakeholders that our commitment to capital strength, a
professional client experience and deep liability expertise can
help our insurance clients achieve their strategic goals. We will
continue to build our capabilities in partnership with Carlyle,
enabling us to take on industry-shaping transactions, and to
continue on our journey towards becoming a leading provider of
solutions to global insurers.”
Debevoise & Plimpton LLP served as legal counsel to
Fortitude Re. Sidley Austin LLP served as legal counsel to
Prudential, and Goldman Sachs & Co. LLC served as exclusive
financial advisor.
About Prudential Financial, Inc.
Prudential Financial, Inc. (NYSE: PRU), a global financial
services leader and premier active global investment manager with
more than $1.5 trillion in assets under management as of Dec. 31,
2021, has operations in the United States, Asia, Europe, and Latin
America. Prudential’s diverse and talented employees help to make
lives better by creating financial opportunity for more people.
Prudential’s iconic Rock symbol has stood for strength, stability,
expertise, and innovation for more than a century. For more
information, please visit news.prudential.com.
About Fortitude Re
The Fortitude Re Group includes Bermuda’s largest multi-line
composite reinsurer, with unique competitive advantages and
expertise to design bespoke transactional solutions for legacy Life
& Annuity and P&C lines. Fortitude Re is backed by a
consortium of sophisticated investor groups led by The Carlyle
Group and T&D Insurance Group. Fortitude Re holds approximately
$48 billion in invested assets as of Dec. 31, 2021. For more
information visit fortitude-re.com. Follow Fortitude Re on
LinkedIn.
Prudential Forward-Looking Statements
Certain of the statements included in this release, such as
those regarding Prudential’s strategy with respect to the products
it offers and the growth prospects and market sensitivity of its
business, 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. Forward-looking statements are made
based on management’s current expectations and beliefs concerning
future developments and their potential effects upon Prudential and
its subsidiaries. There can be no assurance that future
developments affecting Prudential 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.
This press release does not constitute an offer of novation or
exchange with respect to any insurance policies or contracts nor
does it constitute an offer for sale or a solicitation of an offer
to buy any security.
Insurance and Annuities are issued by The Prudential Insurance
Company of America, Pruco Life Insurance Company (in New York, by
Pruco Life Insurance Company of New Jersey), located in Newark, NJ
(main office). Variable annuities are distributed by Prudential
Annuities Distributors, Inc. (“PAD”), Shelton, CT. All are
Prudential Financial, Inc. (“PFI”) companies, and each is solely
responsible for its own financial condition and contractual
obligations. Prudential Retirement Strategies is a business of
Prudential Financial, Inc. For more information on FlexGuard click
here.
Prudential Annuities Life Assurance Corporation (to be renamed
Fortitude Life Insurance & Annuity Company) (“PALAC”), Shelton,
CT (main office) was acquired on April 1, 2022 by Fortitude Group
Holdings, LLC, the parent company of Bermuda’s largest multi-line
reinsurer (“Fortitude Re”). As a result of the acquisition by
Fortitude Re, PALAC is not affiliated with PFI or any of its
subsidiaries. A Prudential entity will continue to service and
administer all PALAC contracts. PALAC variable annuities are
distributed by PAD, Shelton, CT. PAD is wholly owned by PFI; PALAC
is wholly owned by Fortitude Re; each is solely responsible for its
own financial condition and contractual obligations.
PALAC is not licensed to do business in New York, effective Dec.
31, 2015, which had no impact on existing annuity contracts sold
through PALAC.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220331006066/en/
Prudential Media Contact: Bill Launder, 973-802-8760,
bill.launder@prudential.com Fortitude Re Media Contact: Lara
Watson, 201-749-5066, lara.watson@fortitude-re.com
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