Willkie advised Prudential Financial, Inc. on its agreement to reinsure a $10 billion portion of its traditional variable annuity block with an affiliate of Constellation Insurance Holdings, Inc.

Under the terms of the agreement, announced on May 24, Constellation’s affiliate will reinsure approximately $10 billion of Prudential Defined Income (PDI) traditional variable annuity contracts with guaranteed living benefits issued by Pruco Life Insurance Company (PLAZ), a subsidiary of Prudential Financial.

The transaction will result in approximately $650 million in proceeds for Prudential, furthering Prudential’s transformation strategy by reducing market sensitivity and increasing capital flexibility.

Prudential Financial, Inc. is a global financial services leader and premier active global investment manager with approximately $1.4 trillion in assets under management as of March 31, 2023.

The Willkie team was led by partners Gregory Astrachan and Michael Stern and included partners Howard Block, Elizabeth Bannigan, Chip Lunde, Allison Tam, Vadim Mahmoudov, Laura Jehl and Daniel Alvarez, and associates Jenae Moxie, Rubini Wu, Kari Prochaska, and M. Dalton Rodriguez.