Prudential Financial Inc has agreed to reinsure a portion of its recently originated Japanese whole life policies with a subsidiary of Bermudian-based Prismic Life, the life and annuity reinsurance company sponsored by Prudential and Warburg Pincus and supported by a group of global investors.

Under the terms of the agreement, Prismic will reinsure approximately $7 billion of reserves backing US dollar-denominated Japanese whole life insurance policies that were recently originated by Prudential’s Japanese affiliates.

Prudential said its obligations to these policyholders will remain unchanged after the reinsurance arrangement, and Prudential will continue to administer the contracts.

“We are excited to enter a second Prismic transaction alongside our co-investors, which adds further scale to this unique reinsurance platform,” said Charles F. Lowrey, chairman and chief executive of Prudential Financial.

“We look forward to deepening our strategic partnership with Prismic to help grow our business and expand access to investing, insurance and retirement security around the world.”

The company said the transaction is expected to bring Prismic’s assets under management to $17 billion. PGIM Multi-Asset Solutions and Warburg Pincus will continue to provide asset management services to Prismic across public and private markets, including public fixed income, private credit, private real estate and private equity.

“Prismic is proud to provide a reinsurance solution for Prudential’s Japanese whole life insurance policies,” said Nandini Mongia, group executive chairwoman and chief executive of Prismic.

“This transaction further strengthens Prismic’s platform by diversifying its earnings and risk profile, building on the inaugural transaction with Prudential in September 2023.”

As part of the transaction, Prudential intends to make an equity investment in Prismic of approximately $100 million, alongside a group of global investors who will invest additional consideration of approximately $400 million.

The consummation of the transaction, which was entered into in December and ratified by Prismic investors this month, is subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions.

Prismic Life was advised by PGIM Multi-Asset Solutions LLC, Agam Capital Management LLC, Willkie Farr & Gallagher LLP, and Appleby (Bermuda) Ltd. Debevoise & Plimpton LLP served as legal counsel to Prudential Financial.