Prudential & Warburg Pincus Launch Prismic Life Re

By Author: Ben Gross
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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.

More Information : https://www.techdogs.com/tech-news/business-wire/prudential-financial-inc-and-warburg-pincus-announce-launch-of-prismic-life-re