Prudential Financial, a U.S. insurance and investment company, has entered into an agreement with Wilton Re to reinsure reserves valued at approximately $11 billion covering a portion of its guaranteed universal life block.

This deal is expected to generate approximately $350 million in proceeds upon completion.

The transaction involves policies issued by Pruco Life Insurance Company Arizona (PLAZ) and Pruco Life Insurance Company of New Jersey (PLNJ), representing approximately 40% of Prudential’s remaining guaranteed universal life reserves.

Charles Lowrey, Chairman and CEO of Prudential Financial, said: “This transaction builds on the strong strategic progress we have made over the past few years to become a higher growth and more capital efficient company.

“We remain committed to expanding our diverse and high-quality range of life insurance products tailored to the evolving needs of our customers and their families.”

Dmitri Ponomarev, CEO of Wilton Re, said: “We are pleased to offer Prudential a reinsurance solution for a significant portion of its existing guaranteed universal life insurance business.”

He added: “This transaction is consistent with Wilton Re’s strategy to meet our clients’ largest and most complex life insurance and annuity needs. We also welcome PGIM to the Wilton Re family of asset managers.”

The agreement does not change the terms of the contracts included in the transaction. Prudential will continue to administer these policies and maintain its relationships with policyholders and distribution partners. The transaction is not expected to impact Prudential’s headcount.

The reinsurance agreement is based on indemnity coinsurance and provides extensive protections, including overcollateralization and investment guidelines. PGIM Portfolio Advisory will manage the assets backing this block and will also manage additional assets held by Wilton Re.

In addition, Prismic has the option to reinsure 30% of the block with Wilton Re on similar terms for two years following the completion of the transaction.

This announcement follows Prudential’s previous transaction in March 2024, in which the company reinsured a $12.5 billion guaranteed universal life block with Somerset Re.