Prudential to sell Brazil, Mexico units

Prudential Financial has agreed to sell its Brazil and Mexico insurance businesses to CNP Assurances for a combined cash consideration of $4.025 billion. The transaction involves the transfer of 100% of the share capital of Prudential of Brazil and Prudential of Mexico. The businesses will be acquired by CNP Seguradora and CNP Assurances Holding, respectively, both units of the French insurance group.

The deal is expected to close in the second half of 2027. Completion remains subject to obtaining the relevant regulatory approvals and to the fulfilment of conditions customary for transactions of this type. Until closing, Prudential Financial will continue to operate the businesses under existing arrangements.

The sale of the Brazil and Mexico units forms part of Prudential Financial’s broader strategy to simplify its international structure. The company plans to focus its resources on businesses and markets that it views as offering the greatest long-term growth opportunities. These priority markets include the United States, Japan and certain European countries.

By exiting its operations in Brazil and Mexico, Prudential Financial is narrowing its geographic footprint in Latin America. The transaction allows the group to reallocate capital and management attention toward its targeted core markets while transferring its Latin American life insurance presence to CNP Assurances.

For CNP Assurances, the acquisition represents a significant expansion in Latin America. The transaction will considerably strengthen its existing position in Brazil, where it is already one of the leading insurance groups. At the same time, it will provide CNP Assurances with an entry into the Mexican insurance market.

By taking full control of Prudential of Brazil and Prudential of Mexico, CNP Assurances aims to consolidate its regional presence. The enlarged platform in Brazil and the new operation in Mexico are expected to support its ambitions in the Latin American life insurance sector.

The deal has a multi-jurisdictional structure, reflecting the involvement of entities in Brazil, Mexico and Europe. CNP Seguradora will acquire Prudential of Brazil, while CNP Assurances Holding will acquire Prudential of Mexico. The transaction documentation includes customary conditions and regulatory approval processes across the relevant jurisdictions.

A number of legal and financial advisers have been engaged on the transaction. Pérez-Llorca acted as legal adviser to Prudential Financial in Mexico, working alongside Willkie Farr & Gallagher and Mattos Filho as additional legal advisers to the seller. CNP Assurances received legal advice from Skadden, Arps, Slate, Meagher & Flom, BMA Advogados in Brazil and Galicia Abogados in Mexico, while Morgan Stanley and Goldman Sachs acted as financial advisers to Prudential Financial and CNP Assurances, respectively.

In separate analyst activity, Evercore ISI has adjusted its price target on Prudential Financial shares to $110. This update follows recent corporate developments, including the announced divestment of the company’s Brazil and Mexico operations. The revised target reflects an updated view of Prudential Financial’s positioning after its decision to streamline its international operations.