PFI announces a new reinsurance counterparty, bringing its support to insurers that make up over 90% of UK pension risk transfer market

NEWARK, N.J., August 2, 2019 – The Prudential Insurance Company of America (PICA), a subsidiary of Prudential Financial, Inc. (PFI) (NYSE: PRU), a financial services leader with more than $1 trillion in assets under management as of June 30, 2019, with operations in the United States, Asia, Europe, and Latin America, and The Phoenix Group, Europe’s largest life and pensions consolidator and one of the fastest-growing providers of life and pension insurance in the United Kingdom, have entered into an inaugural longevity reinsurance agreement covering U.K. retirees.

“We are excited to be working together with Phoenix,” said Christian Ercole, vice president, Longevity Risk Transfer and transaction lead for the Phoenix deal. “It has been a pleasure to witness the successful launch of their pension risk transfer business and we are thrilled to support them by re-insuring their longevity risk.”

"PFI has consistently focused on supporting the entire U.K. pension de-risking market.The addition of Phoenix is a   culmination of our efforts over the past several years to do just that."
Rohit Mathur, Head of international transactions - Longevity Risk Transfer PFI's retirement business

PICA, a recognized leader in the global pension de-risking market, has been innovating and continuously creating new partnerships with pension insurers in the space since the firm’s 2011 launch of its longevity reinsurance product. PICA’s latest collaboration with Phoenix rounds out its efforts to engage in meaningful partnerships with virtually all of the significant insurance players in the U.K. market. With the addition of Phoenix, PICA, together with its affiliate, Prudential Retirement Insurance and Annuity Company (PRIAC), now provides reinsurance support to pension insurers that account for roughly 90% of the annual volume of buy-ins and buy-outs in the U.K.*

“We are delighted to have completed our first longevity reinsurance transaction with PICA. Phoenix views longevity reinsurance as a key risk management tool,” said Justin Grainger, Phoenix Group’s head of Bulk Purchase Annuities. “This transaction brings further depth to our reinsurer relationships and enhances our ability to offer competitive terms to pension schemes as we continue to develop our de-risking proposition.”

“PFI has consistently focused on supporting the entire U.K. pension de-risking market,” Rohit Mathur, head of international transactions for Longevity Risk Transfer at PFI’s retirement business said. “The addition of Phoenix is a culmination of our efforts over the past several years to do just that.”

PICA was advised by Willkie Farr & Gallagher LLP in New York and London. Phoenix was advised by CMS Cameron McKenna Nabarro Olswang LLP in London and Eversheds Sutherland in the U.S.

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“We have invested in our pricing and transaction teams and that is especially important right now as U.K. pension schemes are racing to get risk transfer deals over the line during the six-month Brexit delay,” Mathur said. “With so much uncertainty on the horizon, we are happy to be in a position to support the robust pipeline of pension buy-ins and buy-outs seeking to be completed while market conditions hold.”

About PFI’s Retirement Business

PFI’s retirement business delivers retirement plan solutions for public, private, and nonprofit organizations. Services include defined contribution, defined benefit and nonqualified deferred compensation recordkeeping, administrative services, investment management, comprehensive employee education and communications, and trustee services, as well as a variety of products and strategies, including institutional investment and income products, pension risk transfer solutions and structured settlement services. With more than 85 years of retirement experience, PFI’s retirement business helps meet the needs of 4.4 million participants and annuitants. PFI’s retirement business has $478 billion in retirement account values as of June 30, 2019. Retirement products and services are provided by PICA.

About PFI

PFI (NYSE: PRU), a financial services leader with more than $1 trillion in assets under management as of June 30, 2019, has operations in the United States, Asia, Europe, and Latin America. PFI’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., PFI’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit Prudential.

PICA issued the reinsurance from the United States. Neither PICA nor PRIAC is licensed or regulated by the U.K. Prudential Regulation Authority as an insurer or regulated by the Financial Conduct Authority, nor does either offer reinsurance in the United Kingdom or directly insure U.K. pension risks. Prudential Financial, Inc. of the United States is not affiliated with Prudential plc, which is headquartered in the United Kingdom.

MEDIA CONTACT: 

Josh Stoffregen-Foye
Direct: 973-802-6930
Mobile:973-204-2540
Josh.stoffregen@prudential.com

Shellie Wells
Direct: (+44) 203 735 0922
Mobile: (+44) 7872 414137
shellie.wells@thephoenixgroup.com