Bermuda-based Prismic Life Holding Company, LP has entered into a new agreement with Prudential Financial, Inc. to reinsure a block of Japanese whole life insurance business, marking another significant transaction for the island's growing life reinsurance sector.

Under the terms of the deal, Prismic will assume approximately $5 billion of reserves supporting US dollar-denominated Japanese whole life policies that were recently originated by Prudential's Japanese affiliates. The transaction highlights the continued appeal of Bermuda as a domicile for large-scale life and annuity reinsurance arrangements involving major global insurers.

A spokesperson for Prismic confirmed the scope of the agreement, noting that the reserves being reinsured back policies written by Prudential's operations in Japan, one of the world's largest life insurance markets. Deals of this nature allow primary insurers to manage capital and risk more efficiently while transferring long-dated liabilities to specialist reinsurers.

Prismic Life, which launched with backing from institutional investors including Warburg Pincus and Prudential itself, has been steadily building its portfolio of reinsurance transactions since its establishment. The company is part of a wave of asset-intensive reinsurance platforms that have chosen Bermuda as their base, drawn by the island's robust regulatory framework and deep pool of insurance expertise.

The agreement adds to Bermuda's reputation as a leading hub for life reinsurance, with local firms increasingly playing a central role in transactions spanning markets from North America to Asia.