DOL Grants PTE for Meta's Captive Reinsurance of Employee Benefits

On July 8, 2025, the US Department of Labor published a Prohibited Transaction Exemption (PTE) in the Federal Register with respect to a number of employee welfare benefit plans provided by Meta Platforms, Inc. (META) to its employees in the United States, which would be initially insured by Prudential Insurance Company and then reinsured with Ekahi Insurance Company LLC (Ekahi), a protected cell within Honu Insurance Company (Honu), a sponsor captive insurance company which is a wholly owned subsidiary of META. The PTE indicates that the exemption will result in an "immediate and objectively determined benefit to Plan participants in the form of benefit enhancements" as discussed in the PTE. 

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