Dear PALAC Policyholder,
As CEO of Fortitude Re, it’s my pleasure to welcome you to the Fortitude Re family. While your policy will continue to be serviced by Prudential on a day-to-day basis, it will now be backed by the financial strength and proven risk management capabilities of Fortitude Re.
Fortitude Re works with many of the world’s best-known insurance companies. Our leadership team has spent, on average, 20 years in the insurance industry.
Fortitude Re is also backed by a consortium of sophisticated, long-term oriented institutional investors led by The Carlyle Group and T&D Insurance Group. So you can rest assured that your policy is in strong, stable hands.
You can learn more about Fortitude Re on this site, or by following us on LinkedIn. And, on behalf of all of our colleagues in Jersey City, Nashville, and Bermuda, let me welcome you again to the Fortitude Re family.
Who is Fortitude Re?
Fortitude Group Holdings is the parent company of Fortitude Re, Bermuda’s largest multi-line reinsurer, and is a name you can trust. Like Prudential, Fortitude Re shares a common commitment to robust financial strength, deep insurance expertise, contract holder alignment and effective partnership. This includes Fortitude Re’s investment grade ratings (AM Best: A “Excellent”, Fitch: BBB+); diversified balance sheet, with approximately $48 billion in invested insurance assets as of December 31, 2021, proven risk management capabilities and access to Carlyle’s asset origination franchise. Our strong financial position and investment grade ratings validate the strength and stability Fortitude Re offers and reinforces our vision of “adding confidence to the promises of the insurance industry.” We are here for the long haul and are committed to delivering innovative solutions and support for our policyholders.
How many policyholders does Fortitude Re currently serve?
Fortitude Re services approximately 4 million policyholders and pays around $1.5 BN in claims annually
What is the background of the deal between Fortitude Re and Prudential?
Fortitude Group Holdings, LLC (“Fortitude Re”) and Prudential Financial, Inc. announced on April 1st, 2022 that Fortitude Re has acquired a portion of Prudential’s in-force legacy variable annuity block.
Fortitude Re has acquired one of Prudential’s legal entity subsidiaries, Prudential Annuities Life Assurance Corporation (PALAC), including PALAC’s in-force annuity contracts. Only contracts issued by PALAC are in scope for the transaction.
The acquisition of PALAC advances Fortitude Re’s growth strategy and underscores our differentiated strategic capability and leadership in the space.
Now that Fortitude Re has acquired the former Prudential Annuities Life Assurance Corporation (PALAC) what will change for me the policyholder?
There will be no change. If you are a customers or financial professional with a PALAC contract, it is important to note that Prudential will continue to administer all contracts in the PALAC block following the transaction to ensure a consistent experience. Your policy will continue to be serviced by Prudential and backed by Fortitude Re’s financial strength. A name change for PALAC is planned, and we will communicate that when it is complete.
To learn more about this transaction, click here.
For all questions about claims and the day-to-day administration of your Prudential policy, click here.