Prudential Financial has finalized an $11 bn reinsurance agreement with Wilton Re, covering a significant portion of its guaranteed universal life (GUL) block.
The deal also includes restructuring internal captive reinsurance arrangements for part of Prudential’s in-force term life block.
Wilton Re will reinsure approximately $11 bn in reserves tied to GUL policies issued by Pruco Life Insurance Company of Arizona and Pruco Life Insurance Company of New Jersey.
This transaction covers policies written through 2019 and represents about 40% of Prudential’s remaining GUL statutory reserves.
Prudential initially announced the plan to reinsure this $11 bn GUL block with Wilton Re in August 2024. The company expects approximately $350 mn in proceeds from the transaction.
Prudential will continue servicing the affected blocks, maintaining relationships with contract holders and distributors. Existing contracts will remain unchanged.
The deal is structured as an indemnity coinsurance transaction with safeguards such as overcollateralization and strict investment guidelines.
PGIM Portfolio Advisory, a PGIM multi-asset solutions affiliate, will manage the assets supporting the block. Wilton Re will also provide additional assets for PGIM to manage.
Additionally, for two years post-transaction, Prudential has the option to reinsure 30% of the block from Wilton Re under similar terms.
