Prudential Financial structures internal captive reinsurance arrangements

Prudential Financial has restructured a series of internal captive reinsurance arrangements for a portion of its in-force term life insurance block, the company announced today.

Prudential said it expected to incur one-time pre-tax expenses of approximately $40 million in the fourth quarter of 2024 due to the extinguishment of certain financing facilities and anticipates an increase in pre-tax annual adjusted operating income of approximately $25 million beginning in 2025.

The life insurer also said it had closed a block transfer of life insurance to Bermuda-based Wilton Re.

That transaction, announced in August, advanced Prudential’s strategic progress to become a higher growth and more capital efficient company.

Prudential said then it would transfer $11 billion of reserves to Wilton Re, resulting in approximately $350 million of expected proceeds.

This transaction, covering policies written through 2019, represents approximately 40% of Prudential's remaining guaranteed universal life statutory reserves.

“This transaction builds upon the strong strategic progress we have made over the past several years to become a higher growth and more capital efficient company,” Charles Lowrey (pictured), chairman and CEO of Prudential Financial, said then.

“We remain committed to growing our diverse, high-quality suite of life insurance products, which are designed to meet the evolving needs of our customers and their families.”

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