Prudential completes first longevity reinsurance transaction

NEWARK, N.J.—(BUSINESS WIRE)—Prudential Retirement announced today the successful completion of its first longevity reinsurance transaction. Under the terms of the transaction, Prudential Retirement will provide reinsurance of longevity risk to U.K.-based Rothesay Life, a wholly-owned subsidiary of The Goldman Sachs Group, Inc., initially covering pension account values of GBP 100 million, approximately equal to $160 million U.S. dollars. Prudential Retirement is a business unit of Prudential Financial, Inc. (NYSE: PRU).

“We are proud to complete our first transaction with Rothesay Life, a market leader in the United Kingdom,” said Phil Waldeck, senior vice president and head of Prudential’s Pension & Structured Solutions business. “Prudential’s financial strength, balance sheet capacity and the experience of our Pension Risk Transfer team uniquely positions us to help companies manage longevity risk and help secure pensions.”

Market volatility and regulatory reforms have created significant new challenges for pension sponsors over the past decade. Plan sponsors are now considering pension risk transfer as a means to achieve contribution certainty, remove financial statement volatility, allow greater focus on the sponsors’ core business and ensure strategic flexibility.

“Plan sponsors face significant uncertainty and exposure to pension risk,” said Amy Kessler, senior vice president and head of Prudential’s longevity reinsurance effort. “Prudential’s role as a reinsurer of longevity risk helps increase the security of the promise pension plans offer to participants around the world. Providing longevity reinsurance for insurers in the United Kingdom is one more example of how we’re helping to create retirement security through innovative solutions and strong partnerships. This transaction is another step in further developing our pension risk transfer business.”

“Rothesay Life is delighted to have partnered with Prudential to complete its first U.K. longevity reinsurance transaction and believes that this success marks the beginning of an important long-term relationship in the pension insurance sector,” said Addy Loudiadis, chief executive officer, Rothesay Life.

Reinsurance contracts are issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT 05103. PRIAC is not a U.K. Financial Services Authority (FSA) authorized insurer and does not conduct business in the United Kingdom or provide direct insurance to any individual or entity therein. Prudential Financial, Inc. of the United States is not affiliated with Prudential plc, which is headquartered in the United Kingdom.

Rothesay Life is an insurance company established in the U.K. as a wholly-owned subsidiary of The Goldman Sachs Group, Inc., a bank holding company and leading global investment banking, securities and investment management firm. Rothesay Life provides annuity and other longevity products to corporate defined benefit pension plans, tailored to meet the specific needs of corporate sponsors, trustees and pension plan members. Rothesay Life is authorized and regulated by the U.K.’s Financial Services Authority.

Prudential Retirement delivers retirement plan solutions for public, private, and non-profit organizations. Services include state-of-the-art record keeping, administrative services, investment management, comprehensive employee investment education and communications, and trustee services. With over 85 years of retirement experience, Prudential Retirement helps meet the needs of nearly 3.7 million participants and annuitants. Prudential Retirement has $214.9 billion in retirement account values as of March 31, 2011.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $859 billion of assets under management as of March 31, 2011, has operations in the United States, Asia, Europe, and Latin America. Prudential’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, investment management, and real estate services. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/.

Contacts

Prudential Financial, Inc.
Josh Stoffregen, 973-802-3996
Mobile: 973-204-2450
.(JavaScript must be enabled to view this email address)
or
Dawn Kelly, 973-802-7134
Mobile: 201-406-7248
.(JavaScript must be enabled to view this email address)