Prudential to sell Brazil and Mexico units for $4.025 billion
The buyers are CNP Assurances units, and closing is expected in the second half of 2027. The deal follows earlier sales of joint venture stakes.
Key takeaways
- Prudential Financial, Inc. (PRU) said in a regulatory filing that it agreed to sell its Prudential do Brasil Seguros and Prudential Seguros Mexico units to CNP Assurances for $4.025 billion in cash, subject to closing adjustments. The company expects the deal to close in the second half of 2027, subject to regulatory approvals.
Prudential Financial, Inc. (PRU) said Tuesday it has agreed to sell its Brazilian and Mexican insurance units to CNP Assurances Group for $4.025 billion in cash, subject to closing adjustments.
The company said in a regulatory filing that it entered into definitive agreements to sell 100% of its equity interests in Prudential do Brasil Seguros S.A. and Prudential Seguros Mexico, S.A. de C.V.
CNP Seguradora, the Brazilian subsidiary of CNP Assurances, will buy the Brazilian business. CNP Assurances Holding will buy the Mexican business.
The filing describes the purchase price as approximately $4.025 billion in cash, subject to certain closing adjustments.
"We're continuing to build momentum and advance our strategy to direct capital to the businesses and markets where we see the greatest opportunity for long-term growth and value creation," said Andy Sullivan, chairman and chief executive officer of Prudential Financial, Inc. "This transaction positions Prudential of Brazil and Prudential of Mexico for continued success with an owner committed to its customers, employees and distribution partners. We remain focused on narrowing our geographic footprint and building a simpler, more focused Prudential."
The deal follows previously announced sales of stakes in several joint ventures. Those include PT PFI Mega Life Insurance in Indonesia, Alexforbes in South Africa and ICEA LION in Kenya.
The company's release said the ICEA LION sale closed on Oct. 13.
The company's release describes the transactions as steps in its plan to exit emerging markets while maximizing value.
CNP Assurances is a property and personal insurer with more than 8,500 employees, according to the release. It is a subsidiary of La Banque Postale and is Brazil's third-largest insurer.
"We are delighted to announce this transaction, which represents a major step forward in our development in Latin America," said Marie-Aude Thépaut, CEO of CNP Assurances. "We have been particularly impressed by the capabilities of these businesses, including the expertise of the Life Planner network and the trusted customer relationships built over many years."
Prudential said it intends to use the proceeds to support its capital allocation priorities. The company plans to invest in retirement, asset management and select protection businesses in the U.S., Japan and select European markets.
The transaction is expected to close in the second half of 2027. Closing is subject to regulatory approvals and customary closing conditions.
Morgan Stanley is financial advisor to Prudential, and Goldman Sachs is financial advisor to CNP Assurances. Willkie Farr & Gallagher, Mattos Filho and Perez Llorca are legal counsel to Prudential.
Skadden, Arps, Slate, Meagher & Flom LLP, BMA Advogados and Galicia Abogados, S.C. are legal counsel to CNP Assurances.
The company said additional deal terms were not disclosed. The filing does not give the expected gain or loss on the sale or the financial results of the two businesses.