Fortitude Re’s US$2.2 Billion Acquisition of In-force Legacy Variable Annuity Block from Prudential

Sidley Austin advised Prudential Financial on the deal. Debevoise & Plimpton advised Fortitude Re.

Prudential Financial, Inc. announced the sale of a US$31 billion portion of its in-force legacy variable annuity block for US$2.2 billion to Fortitude Re, Bermuda’s largest multi-line reinsurer.

Under the terms of the transaction, Prudential will sell Prudential Annuities Life Assurance Corporation (PALAC), including PALAC’s in-force annuity contracts, to Fortitude Re. The PALAC block primarily consists of non-New York traditional variable annuities with guaranteed living benefits that were issued prior to 2011.

Fortitude Re is Bermuda’s largest multi-line composite reinsurer with unique competitive advantages and expertise to design bespoke transactional solutions for legacy Life & Annuity and P&C lines. Prudential is a global financial services leader and premier active global investment manager with more than $1.5 trillion in assets under management as of June 30, 2021, with operations in the United States, Asia, Europe, and Latin America.

The Sidley deal team is led by Sean Keyvan (Insurance, Picture), and includes Brad Drake, Megan Arrogante, John Grothaus, Kirk Lipsey, Scott Goldstein, Jeremy Carroll, Chloe Wang, Vicky Rusanova, Tiffany Kong, Anna Williford (Insurance), Stephanie Dobecki (Insurance Regulatory), Ellen Pesch (Derivatives), Laura Barzilai, Lee Christie, Dan Altman, Tyler Replogle, Wondha Cadet (Tax), Jennifer Coplan, Kyle Barnett (Intellectual Property), Dan Spies, Nathan Greene, Victoria Anglin, Brian Bowman, Andrew Krebsbach (Investment Funds), Colleen Brown, Stephen McInerney (Privacy and Cybersecurity), Beth Dickstein (Employee Benefits), Jim Mendenhall, Justin Becker (Global Arbitration, Trade and Advocacy), Hardy Callcott, and Charlie Sommers (Securities Enforcement and Regulatory).

The Debevoise team was led by insurance M&A partner Drew Dutton and included associates Nick Cruz, Katie Power, Rebecca Sayles, Brita Siepker and Leron Solomon, M&A partner Ezra Borut, investment management partner Marc Ponchione, counsel Gregory Larkin and associate Chen Xu, benefits partners Jonathan Lewis and J. Michael Snypes, Jr. and associates Andrea Acosta and Douglas Hirn, tax partner Peter Furci and associate Adam Namm, and intellectual property partner Henry Lebowitz, of counsel (retired partner) Jeffrey Cunard and associate Melody Godbolt.

Involved fees earner: Andrea Acosta – Debevoise & Plimpton; Ezra Borut – Debevoise & Plimpton; Jeffrey Cunard – Debevoise & Plimpton; Drew Dutton – Debevoise & Plimpton; Peter Furci – Debevoise & Plimpton; Melody Godbolt – Debevoise & Plimpton; Douglas Hirn – Debevoise & Plimpton; Gregory Larkin – Debevoise & Plimpton; Henry Lebowitz – Debevoise & Plimpton; Jonathan Lewis – Debevoise & Plimpton; Adam Namm – Debevoise & Plimpton; Marc Ponchione – Debevoise & Plimpton; Katie Power – Debevoise & Plimpton; Rebecca Sayles – Debevoise & Plimpton; Brita Siepker – Debevoise & Plimpton; Michael Snypes Jr. – Debevoise & Plimpton; Leron Solomon – Debevoise & Plimpton; Chen Xu – Debevoise & Plimpton; Daniel Altman – Sidley Austin LLP; Victoria Anglin – Sidley Austin LLP; Megan Arrogante – Sidley Austin LLP; Kyle Barnett – Sidley Austin LLP; Laura Barzilai – Sidley Austin LLP; Justin Becker – Sidley Austin LLP; Brian Bowman – Sidley Austin LLP; Colleen Theresa Brown – Sidley Austin LLP; Wondha Cadet – Sidley Austin LLP; Hardy Callcott – Sidley Austin LLP; Jeremy Carroll – Sidley Austin LLP; Lee Christie – Sidley Austin LLP; Jennifer Coplan – Sidley Austin LLP; Beth Dickstein – Sidley Austin LLP; Stephanie Dobecki – Sidley Austin LLP; Bradley Drake – Sidley Austin LLP; Scott Goldstein – Sidley Austin LLP; Nathan Greene – Sidley Austin LLP; John Grothaus – Sidley Austin LLP; Sean Keyvan – Sidley Austin LLP; Andrew Krebsbach – Sidley Austin LLP; Kirk Lipsey – Sidley Austin LLP; Stephen McInerney – Sidley Austin LLP; James Mendenhall – Sidley Austin LLP; Ellen Pesch – Sidley Austin LLP; Tyler Replogle – Sidley Austin LLP; Viktoriya Rusanova – Sidley Austin LLP; Charles Sommers – Sidley Austin LLP; Daniel Spies – Sidley Austin LLP;

Law Firms: Debevoise & Plimpton; Sidley Austin LLP;

Clients: Fortitude Re; Prudential Financial, Inc.;

Author: Martina Bellini