Bermuda-based Prismic Life has agreed to reinsure approximately $5 billion of reserves backing US dollar-denominated Japanese whole life policies issued by Prudential Financial’s Japanese affiliates.

The deal covers a portion of Prudential’s recently originated policies and brings Prismic’s assets under management to approximately $25 billion following the transaction’s closing.

Prudential will continue to administer the contracts, and its obligations to policyholders will remain unchanged.

Prudential is a primary sponsor of Prismic, which is also backed by private equity firm Warburg Pincus. The latest agreement builds on a relationship that now includes reinsurance transactions covering more than $22 billion of US dollar-denominated liabilities, spanning existing policies and new business.

“This is another important milestone in Prismic’s growth journey,” said Nandini Mongia, Prismic’s group executive chairwoman and chief executive officer.

“Prismic was built to deliver innovative reinsurance solutions that help clients manage capital, risk, and balance sheet management needs, and we’re proud to deliver another solution that advances those objectives.”

Andy Sullivan, chairman and chief executive officer of Prudential Financial, said the agreement supported the company’s capital strategy.

“This transaction with Prismic reflects our continued focus on disciplined capital allocation,” he said.

“It is another step in executing our strategy and reinforces the actions we’ve taken to strengthen our business and enhance financial flexibility.”

Earlier this year, Prismic announced a separate transaction with Daiichi Life to reinsure an existing block of yen-denominated whole life and annuity policies.

Prismic launched in September 2023 to provide life and annuity reinsurance, drawing on its sponsors and the asset management capabilities of PGIM and Warburg Pincus.

PGIM, Agam Capital Management, Willkie Farr & Gallagher and Appleby advised Prismic on the latest transaction. Debevoise & Plimpton served as legal counsel to Prudential Financial.