Bermuda’s Wilton Re in $11bn deal with Prudential Financial
Bermudian-based Wilton Re is to reinsure $11 billion of reserves backing Prudential Financial’s guaranteed universal life policies.
Prudential said the deal advanced the company’s strategic progress in becoming a higher growth, more capital-efficient business.
The transaction will result in about $350 million of expected proceeds, post-closing, for Prudential.
The policies were issued by Pruco Life Insurance Company of Arizona and Pruco Life Insurance Company of New Jersey.
The transaction, covering policies written through 2019, represents approximately 40 per cent of Prudential’s remaining guaranteed universal life statutory reserves.
“We are pleased to provide Prudential a reinsurance solution for a material portion of its in-force guaranteed universal life business,” said Dmitri Ponomarev, the chief executive of Wilton Re.
“This transaction is consistent with Wilton Re’s strategy to address our clients’ largest and most complex in-force life insurance and annuity needs.”
The transaction is subject to regulatory approvals.
The announcement follows Prudential’s previous transaction, completed in March, reinsuring a $12.5 billion guaranteed universal life block with Bermudian-based Somerset Re.
Upon closing, Prudential will have achieved an approximately 60 per cent reduction in its exposure to guaranteed universal life, the company said.
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