At Prudential, we are committed to making lives better by solving the financial challenges of our changing world. With that goal in mind, we always approach the future with a discerning eye, a strategic customer focus, and prudent management of our overall business.
As announced on September 15, 2021, we’ve made the strategic decision to enter into a definitive agreement to sell a portion of our legacy variable annuity block to Fortitude Group Holdings, LLC, the parent company of Bermuda’s largest multi-line reinsurer (“Fortitude Re”). Under that agreement, Prudential sold one of its standalone legal entity subsidiaries, Prudential Annuities Life Assurance Corporation (to be renamed Fortitude Life Insurance & Annuity Company) (“PALAC”), including PALAC’s in-force annuity contracts, to Fortitude Re. This block primarily consists of non-New York traditional variable annuities with guaranteed living benefits that were issued prior to 2011. The transaction closed on April 1, 2022.
If you are a customer or financial professional with one of these contracts, it’s important to know that a Prudential entity will continue to service and administer all contracts in the PALAC block to ensure a consistent experience and minimize any disruption.
Per the agreement with Fortitude Re, Prudential will be providing a transfer offer to customers with FlexGuard and other recently sold PALAC annuities (FlexGuard Income, Prudential Fixed Annuity with Daily Advantage Income, PruSecure, SurePath and SurePath Income). Under this offer, clients will have the option to change the issuer of their contract from PALAC to Pruco Life Insurance Company, a Prudential subsidiary, pending state approval.
Further details will be provided to broker dealers, financial professionals, and applicable customers, in accordance with applicable legal requirements. None of Prudential’s current communications relating to the transaction constitute an offer of transfer or exchange with respect to any insurance policies or contracts. Any offer of transfer will not be presented to customers of traditional variable annuities in the PALAC block, which are excluded from the transfer offer described above.
Below are links to more information about the transaction and next steps for customers.