: Prudential, Warburg Pincus lead $1B equity investment in Prismic Life Reinsurance

Prudential Financial Inc. PRU 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. (Prudential’s investment management unit) that will combine asset-liability management expertise with portfolio strategy and asset allocation in both public and private asset classes. Prudential Financial stock is down 5.2% in 2023, compared to a 15.9% increase by the S&P 500 SPX.

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