Prismic Life Reinsurance Ratings and Market Strategy Insights
AM Best has evaluated Prismic Life Reinsurance Ltd. and Prismic Life Reinsurance International Ltd., both based in Bermuda, assigning them a financial strength rating of A- (Excellent) and a long-term issuer credit rating of "a-" (Excellent), with a stable outlook. These ratings reflect several key aspects, including the entities' robust balance sheets, satisfactory operational performance, a concentrated business scope, and adequate enterprise risk management. These factors are critical for addressing regulatory compliance requirements and fostering confidence among shareholders and partners.
Prismic Life Re, primarily catering to U.S. markets, and PL Re International, serving non-U.S. markets, are recent entrants into the Bermuda reinsurance industry. Major shareholders, including Prudential Financial Inc. and Warburg Pincus, have backed these ventures. In a significant capital-raising effort, Prismic secured $1.3 billion to enhance its reinsurance capacity through its Bermuda platform. This strategic move aims to bolster underwriting capabilities and meet regulatory standards while expanding into international markets.
Recently, Prismic Life Re initiated operations by securing a reinsurance contract focused on U.S. structured settlement annuities. Consequently, PL Re International concluded a transaction involving $7 billion in Japanese whole life insurance policies. These deals underscore a thriving pipeline for future business. Notably, PL Re International finalized its first flow reinsurance agreement in September 2025, showcasing the company's proactive stance on risk management and growth. An AM Best report highlights Prismic Life Re's pivotal role—alongside Martello Re and Ivy Re II—in driving approximately 75% of the increased ceded reserves, emphasizing their strategic influence in the market.
Prismic's entities have engaged in multiple funding rounds, achieving enhanced risk-adjusted capitalization according to Best's Capital Adequacy Ratio and Bermuda’s regulatory solvency capital standards. Each reinsurance contract includes specific reserve stipulations designed to ensure financial robustness. AM Best remains committed to ongoing monitoring of these reserves' sufficiency through its stringent credit rating methodologies, providing transparency and assurance to stakeholders and reinforcing confidence within the payer and provider communities.