2023-09-07 17:25:12 ET
U.S. insurer Prudential Financial ( NYSE: PRU ) and private equity firm Warburg Pincus on Thursday said they were among investors combining to provide $1B in equity to create a Bermuda-based life and annuity reinsurance company.
The company will be called Prismic Life Reinsurance, with Prudential ( PRU ) and Warburg Pincus initially owning 20% and 15% of its equity, respectively.
Prismic will take on about $10B of structured settlement annuity contracts from Prudential ( PRU ), with an aim to turn Prismic into a strategic reinsurance partner. The deal is subject to regulatory approvals.
"Prismic will enhance our ability to address the evolving needs of our insurance customers and clients while continuing to meet our obligations to policyholders," PRU top boss Charles Lowrey said in a statement .
Additionally, Prudential's ( PRU ) investment management business PGIM and Warburg Pincus will provide asset management services to Prismic.
Prismic will be led by financial services industry veteran Amy Kessler, and its board will include two independent directors and one director nominated by each of Prudential ( PRU ), Warburg Pincus, and the group of investors.
"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," Warburg Pincus CEO Chip Kaye said.
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Prudential, Warburg Pincus among investors contributing $1B to launch new reinsurer