Nomura Joins Prudential, Warburg Pincus To Form Life And Annuity Reinsurance Firm

Tokyo-headquartered global financial services company Nomura NMR announced its $1 billion equity investment in Bermuda-based Prismic Life Reinsurance. Prudential Financial PRU and Warburg Pincus WPCBF are the other two entities that have invested in Prismic.

Nomura’s founding investor group accounts for a 65% stake in the equity, while Prudential Financial owns 20%, and Warburg Pincus controls the remaining 15%. The three have together launched the life and annuity reinsurance platform wherein the latter two will also support asset management services to the reinsurance company.

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Prismic’s capital base will be strengthened by Nomura’s infusion. Prismic board will also have one director each nominated by Prudential, Warburg Pincus, Nomura, and other investors.

“Insurance is a growing client segment for Nomura globally and part of our ambitions to expand our platform more broadly. This investment is an opportunity for Nomura to invest in a reinsurance platform targeting a growing market space,” Gordon Sweely, Nomura’s global head of securitized products and private credit stated.

Sweely will be representing Nomura on Prismic’s board.

Earlier, Nomura also served as joint lead arranger and bookrunner on a syndicated debt facility targeted toward Prismic’s financial base.

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Prismic's Reach: The firm will have a $10 billion initial reinsurance transaction and is likely to become a client of PGIM, the asset management arm of Prudential Financial, portfolio advisory.

It is a newly established affiliate within PGIM that combines asset-liability management expertise with portfolio strategy and asset allocation to deliver integrated solutions across public and private asset classes.

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