M&A - PRUDENTIAL FINANCIAL INC

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Form Type: 8-K

Filing Date: 2025-01-22

Corporate Action: Acquisition

Type: New

Accession Number: 000119312525010444

Filing Summary: On January 22, 2025, Prudential Financial, Inc. announced that a subsidiary entered into an agreement with Prismic Life Reinsurance International, Ltd., a subsidiary of Prismic Life Holding Company, LP, to reinsure an approximately $7 billion block of U.S. Dollar denominated Japan whole life products. The closing of the transaction is subject to regulatory approvals and other conditions. The deal is valued at approximately $400 million, which will include capital release, ceding commission, taxes, and the net present value of future income. Prudential will invest in Prismic HoldCo to maintain a 20 percent equity interest and anticipates a modest increase in after-tax annual adjusted operating income as a result. The forward-looking nature of the transaction includes potential risks like the failure to obtain regulatory approval.

Additional details:

Equity Investment: approximately 20 percent

Investment Amount: $100 million

Transaction Value: approximately $400 million

Capital Release: included in transaction value

Regulatory Approvals: required for closing

Expected Increase In Operating Income: modest increase in after-tax annual adjusted operating income

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