Prudential Shares Indexed Annuity Risk With Reinsurer
November 20, 2019 by Allison Bell
A unit of Prudential Financial Inc. is turning to a reinsurer in Bermuda to help it power its indexed annuity business.
Prudential Annuities Life Assurance Corp. has agreed to share some of the risks, and rewards, associated with newly sold indexed annuity contracts with Somerset Reinsurance Ltd.
Prudential Annuities and Somerset Re have entered into a quota share reinsurance arrangement, Somerset Re announced earlier this week. The arrangement applies to indexed annuities filed as non-variable insurance products.
Reinsurance is a form of insurance for insurance companies.