CINCINNATI, May 24, 2023 (GLOBE NEWSWIRE) -- Constellation Insurance Holdings, Inc. (Constellation), a leading insurance holding company backed by institutional investors CDPQ and Ontario Teachers’ Pension Plan Board (Ontario Teachers’), announced today that its subsidiary The Ohio National Life Insurance Company (ONLIC) has entered into an agreement with Pruco Life Insurance Company (PLAZ), an affiliate of Prudential Financial (Prudential), to reinsure a $10 billion block of variable annuities.
“We are pleased to partner with Prudential in our inaugural block reinsurance transaction as we establish our M&A / Reinsurance segment as an integral part of the overall enterprise alongside our US life insurance, US annuities and Latin America segments,” affirmed Anurag Chandra, founder, chairman and CEO of Constellation. “This transaction exemplifies our strategic focus for the M&A / Reinsurance segment to execute opportunistic inorganic transactions that provide significant synergies with our existing platform and strengthen and diversify the overall enterprise financial and risk profile.”
“This is a unique, lower risk variable annuity block with no equity market exposure which provides significant risk management, earnings diversification, reserve aggregation and capital covariance benefits given the complementary profile of this block relative to our existing legacy business,” noted Scott Shepherd, chief risk officer of Constellation.
The transaction is expected to close on June 30, 2023, with an effective date of April 1, 2023. Debevoise & Plimpton LLP served as legal counsel to Constellation on this transaction.
About Constellation
Constellation Insurance, Inc., is a leading insurance holding company serving consumers and small business owners in United States and Latin America through its insurance subsidiaries, which include The Ohio National Life Insurance Company, Ohio National Life Assurance Corporation, National Security Life and Annuity Company, Ohio National Seguros de Vida and certain other affiliated (re)insurance entities. As of December 31, 2022, Constellation’s family of insurance companies have over $34 billion in total assets under management. Constellation’s investors and equal partners, CDPQ and Ontario Teachers’, are two of the largest long-term institutional investors in North America, managing a total of C$650 billion in net assets, including over C$140 billion in private capital investments.
