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Japanese Insurer Backs Pru

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Nippon Life Insurance Company has agreed to buy a $500 million, 10-year, exchangeable surplus note from the Prudential Insurance Company of America.

Prudential Insurance, a unit of Prudential Financial Inc., Newark, N.J., expects to close on the transaction Friday, Prudential says.

Nippon Life, Osaka, Japan, can exchange the surplus note for shares of Prudential common stock at any time, at Nippon Life’s option, beginning on the fifth anniversary of the issuance of the note, Prudential says.

“Our two companies will continue to seek opportunities to work together and to promote the well-being of the life insurance industry around the world,” Prudential Chairman John Strangfeld says in a statement about the arrangement.