Prudential To Sell Portion Of In-force Legacy Variable Annuity Block To Fortitude For $2.2 Bln

(RTTNews) - Prudential Financial Inc. (PRU) agreed to sell a portion of its in-force legacy variable annuity block to Fortitude Group Holdings for a total transaction value of $2.2 billion.

As per the terms of the deal, Prudential will sell one of its stand-alone legal entity subsidiaries, Prudential Annuities Life Assurance Corporation (PALAC), including PALAC's in-force annuity contracts, to Fortitude Re, for an all-cash purchase price of $1.5 billion, plus a capital release to Prudential and an expected tax benefit.

The transaction is expected to close during the first half of 2022.

Upon closing, Prudential anticipates a reduction to pre-tax annual adjusted operating income of approximately $290 million. Proceeds from the transaction are expected to be used for general corporate purposes.