Prudential, Warburg Pincus Team Up to Back New Reinsurer (1)

Prudential Financial Inc. and Warburg Pincusare among investors that contributed a combined $1 billion of equity to create a Bermuda-based reinsurer, Prismic Life Reinsurance Ltd.

In its first deal, Prismic is taking on $10 billion of structured settlement annuity contracts from Prudential, freeing up capital for it to write new insurance business. The transaction is subject to regulatory approvals.

Initially, Prudential will own 20% of the new firm, with Warburg controlling a 15% stake, according to an emailed statement. Nomura Holdings Inc. said it’s among global investors owning the remaining equity.

Prismic’s founding allows Prudential to unload assets with ...