Prudential Financial Inc. PRU, -0.04% said late Thursday it has teamed up with private-equity firm Warburg Pincus to lead a $1 billion equity investment in Prismic Life Reinsurance Ltd., a new Class E life and annuity reinsurance company based in Bermuda. Prudential Financial plans to reinsure to Prismic Life structured settlement annuity contracts with reserves of about $10 billion, subject to regulatory approval.
“Prudential aims for Prismic to be a strategic reinsurance partner with the ambition to grow their reinsurance relationship materially in years to come,” the company said. Prudential will initially own 20% of Prismic Life and Warburg will own 15%, along with smaller ownership stakes by a group of global investors. Prismic will also be a client of PGIM Portfolio Advisory, a new affiliate within PGIM Inc.