Appleby advised Prudential Financial, Inc. and Warburg Pincus LLC, in the launch of Prismic Life Reinsurance, Ltd., a licensed Class E Bermuda-based life and annuity reinsurance company. The $10 billion initial reinsurance transaction and $1 billion equity capital investment establishes a new reinsurance platform positioned for scale and long-term growth on behalf of customers.
Prudential, a global financial services leader and premier active global investment manager with approximately $1.4 trillion in assets under management, and Warburg Pincus, a leading global growth investor with more than $83 billion in assets under management, together with a group of global investors, have agreed to make equity investments in Prismic and will oversee its long-term strategy through participation on its board of directors. Prudential and Warburg Pincus will initially own 20% and 15% of the equity in Prismic, respectively.
Prudential expects to reinsure to Prismic a block of structured settlement annuity contracts with reserves of approximately $10 billion, subject to the receipt of required regulatory approvals. Through expanded reinsurance capacity, Prudential expects Prismic will allow the company to provide more people with access to its industry-leading life and annuity products.
Appleby advised on the formation, structure and registration for Prismic Life Re and other Bermuda-based Prismic entities. Appleby was lead on the business plan, produced opinions and resolutions and reviewed all documentation for all matters concerning licensing.
Bermuda Managing Partner Brad Adderley led the transaction with support from Partners Matt Ebbs-Brewer and Gary Harris; Associates Kinika Armstrong, Hailee Forde, Ojeda Smith; and Paralegal Remond Bonne Smith.