Prudential Financial has closed its reinsurance transaction with Somerset Reinsurance. The agreement includes US$12.5 billion of reserves backing Prudential’s guaranteed universal life policies issued by its subsidies Pruco Life and Pruco Life of New Jersey. The reinsurance transaction covers policies written prior to 2015 and represents approximately one-third of Prudential’s total guaranteed universal life statutory reserves. Jeff Burt, chairman and CEO of Somerset Reinsurance, expresses: “Closing our third transaction with Prudential extends both Somerset’s track record of providing risk management solutions for asset-intensive liabilities and the long-time relationship between our companies.” For the transaction, Wells Fargo Securities assisted as the financial advisor while Willkie Farr and Gallagher provided legal counsel to Prudential. RBC Capital Markets and Mayer Brown served as financial advisor and legal counsel to Somerset, respectively.
