Filed with the Securities and Exchange Commission on April 7, 2020

REGISTRATION NO. 333-184542

INVESTMENT COMPANY ACT NO. 811-07975

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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

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FORM N-4

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REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

POST-EFFECTIVE AMENDMENT NO. 13

and

REGISTRATION STATEMENT

UNDER

THE INVESTMENT COMPANY ACT OF 1940

AMENDMENT NO. 168

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PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

(Exact Name of Registrant)

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

(Name of Depositor)

213 WASHINGTON STREET

NEWARK, NEW JERSEY 07102-2992

(973) 802-7333

(Address and telephone number of Depositor's principal executive offices)

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WILLIAM J. EVERS, ESQ.

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

213 WASHINGTON STREEET

NEWARK, NEW JERSEY 07102-2992

(973) 802-6000

(Name, address and telephone number of agent for service)

COPIES TO:

DOUGLAS E. SCULLY

VICE PRESIDENT

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

ONE CORPORATE DRIVE

SHELTON, CONNECTICUT 06484

(203) 925-6960

Approximate Date of Proposed Sale to the Public: Continuous

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It is proposed that this filing become effective: (check appropriate space)

[ ] immediately upon filing pursuant to paragraph (b) of Rule 485

[ X ] on April 27, 2020 pursuant to paragraph (b) of Rule 485

[ ] 60 days after filing pursuant to paragraph (a)(i) of Rule 485

[ ] on __________ pursuant to paragraph (a)(i) of Rule 485

If appropriate, check the following box:

[ ] This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

TITLE OF SECURITIES BEING REGISTERED:

Units of interest in Separate Accounts under variable annuity contracts.

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PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

Supplement dated April 27, 2020

to Prospectuses dated April 27, 2020

This Supplement should be read in conjunction with the current Prospectus for your Annuity and should be retained for future reference. This Supplement is intended to update certain information in the Prospectus for the variable annuity you own and is not intended to be a prospectus or offer for any other variable annuity that you do not own. Defined terms used herein and not otherwise defined herein shall have the meanings given to them in the Prospectuses and Statements of Additional Information. If you would like another copy of the current Annuity Prospectus, please call us at 1-888-PRU-2888.

On March 27, 2020 (Date of Enactment), Congress passed and President Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act. This law includes provisions that impact Individual Retirement Annuities (IRAs), Roth IRAs and employer sponsored qualified retirement plans.

Waiver of Required Minimum Distributions (RMDs) for 2020

The requirement to take minimum distributions from defined contribution plans and IRAs is waived for 2020.  The waiver would apply to any RMD due from such an arrangement in 2020, even RMDs with respect to the 2019 tax year that are due in 2020.  For example, if an IRA owner turned age 70½ in 2019, they owe an RMD for the 2019 tax year but can wait until 4/1/20 to take it.  If they did not take that first RMD in 2019, the bill waives it, along with the requirement to take their second RMD (for the 2020 tax year) by the end of 2020.  The relief applies both to lifetime and post-death RMDs.  In that regard, if the post-death 5-year rule applies, the 5-year period is determined without regard to calendar year 2020 and thus, the 5 year rule is extended by one year.  It is unclear whether this treatment applies for the 10-year period imposed by the SECURE Act. Although also unclear, the 1-year election rule for life expectancy payments by an eligible beneficiary may be extended based on the position the IRS took in Notice 2009-82.

Withdrawals from Employer Plans and IRAs, including Roth IRAs

Relief is provided for “coronavirus-related distributions” from qualified plans and IRAs. The relief applies to such distributions made at any time during the 2020 calendar year, as follows:   

• Permits such distributions to be treated as in-service distributions, even if such amounts are not otherwise distributable from the plan under sections 401(k), 403(b), or 457, as applicable;  

• Provides an exception to the 10% early distribution penalty under Code section 72(t) (but not for the similar penalty tax under Code section 72(q) that applies to non-qualified annuities);

• Exempts such distributions from the 402(f) notice requirements and mandatory 20% withholding applicable to eligible rollover distributions, as applicable;

• Permits the individual to include income attributable to such distributions ratably over the three-year period beginning with the year the distribution would otherwise be taxable (this spreading would apply unless the taxpayer elects out); and

• Permits recontribution of such distribution to a plan or IRA within three years, in which case the recontribution is generally treated as a direct trustee-to-trustee transfer within 60 days of the distribution. 

The distribution must come from an “eligible retirement plan” within the meaning of Code section 402(c)(8)(B), i.e. , an IRA, 401(a) plan, 403(a) plan, 403(b) plan, or governmental 457(b) plan.  The relief would be limited to aggregate distributions of $100,000.  See below for a description of who is eligible for the relief.  

Plan Loans

The following relief is provided with respect to plan loans (if available under a contract) taken by any “qualified individual” who is affected by the coronavirus:

• For loans made during the 180-day period beginning on the date of enactment, the maximum loan amount would be increased from $50,000 or 50% of the vested account balance to $100,000 or 100% of the vested account balance.  Note that Department of Labor regulations require that plan loans be secured by no more than half of the account balance.  It is not clear whether this is an impediment to increasing the loan limit to 100% of the account balance.  We understand that DOL is aware of this issue. 

• The due date for any repayment on a loan that otherwise is due between the date of enactment and December 31, 2020, would be delayed for one year.  This also would extend the maximum loan period (normally five years). 

Based on prior IRS guidance involving similar relief for natural disasters, all of the changes would be optional for plans See below for a description of who is eligible for the plan loan relief.

PDINYPROS

Eligible Individuals for Withdrawal and Loan Relief

The administrator of an eligible retirement plan may rely on an employee’s certification that the employee satisfies the conditions for eligibility.  The eligibility criteria for the relief remain the same, meaning the individual must fall within one of the following categories:

• The individual is diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention;

• The individual’s spouse or dependent is diagnosed with such virus or disease; or

• The individual experiences adverse financial consequences as a result of being quarantined, being furloughed or laid off or having work hours reduced due to such virus or disease, being unable to work due to lack of child care due to such virus or disease, closing or reducing hours of a business owned or operated by the individual due to such virus or disease, or other factors as determined by the Secretary of the Treasury.

IRS Guidance

Extension of IRA Contribution Deadline

The deadline for making an IRA or Roth IRA contribution has been extended until July 15, 2020, the extended deadline for filing an individual’s 2019 tax return.

PDINYPROS

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

A Prudential Financial Company

751 Broad Street, Newark, NJ 07102-3777

PRUDENTIAL DEFINED INCOME (PDI) VARIABLE ANNUITY

Flexible Premium Deferred Annuity

PROSPECTUS: April 27, 2020

This prospectus describes a flexible premium deferred annuity offered by Pruco Life Insurance Company of New Jersey (“Pruco Life of New Jersey”, “we”, “our”, or “us”), which we refer to as the Prudential Defined Income Variable Annuity (“Annuity”). This prospectus is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. Clients seeking information regarding their particular investment needs should contact a financial professional. The Annuity will be offered as an individual annuity contract. Financial professionals may be compensated for the sale of the Annuity. Selling broker-dealer firms through which the Annuity is sold may impose restrictions (e.g., maximum issue age). Please speak to your financial professional for further details. The guarantees provided by the variable annuity contract described in this prospectus are the obligations of and subject to the claims paying ability of Pruco Life of New Jersey. Certain terms are capitalized in this prospectus. Those terms are either defined in the Glossary of Terms or in the context of the particular section.

IMPORTANT INFORMATION

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the annual and semi-annual shareholder reports for portfolios available under your contract will no longer be sent by mail, unless you specifically request paper copies of the reports from us. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from us electronically anytime at our website www.prudential.com. You may elect to receive all future shareholder reports in paper free of charge by calling 1-888-778-2888. Your election to receive reports in paper will apply to all portfolios available under your contract.

THE SUB-ACCOUNT

The Pruco Life of New Jersey Flexible Premium Variable Annuity Account is a Separate Account of Pruco Life of New Jersey, and is the investment vehicle in which your Purchase Payments invested in the Sub-account are held. Currently only one Sub-account is available under the Annuity. The Sub-account offered in connection with the Annuity of the Pruco Life of New Jersey Flexible Premium Variable Annuity Account invests in the AST Multi-Sector Fixed Income Portfolio, a series of the Advanced Series Trust mutual fund. (Prior to November 4, 2013, the AST Multi-Sector Fixed Income Portfolio was named AST Long Duration Bond Portfolio.)

PLEASE READ THIS PROSPECTUS

This prospectus sets forth information about the Annuity that you ought to know before investing. Please read this prospectus and the current prospectus for the underlying mutual fund. Keep them for future reference. If you are purchasing the Annuity as a replacement for an existing variable annuity or variable life policy, or a fixed insurance policy, you should consider any surrender or penalty charges you may incur and any benefits you may also be forfeiting when replacing your existing coverage and that this Annuity may be subject to a Contingent Deferred Sales Charge if you elect to surrender the Annuity or take a partial withdrawal. You should consider your need to access the Annuity’s Account Value and whether the Annuity’s liquidity features will satisfy that need. Please note that if you purchase this Annuity within a tax advantaged retirement plan, such as an IRA, SEP-IRA, Roth IRA, 401(a) plan, or non-ERISA 403(b) plan, you will get no additional tax advantage through the Annuity itself. Because there is no additional tax advantage when a variable annuity is purchased through one of these plans, the reasons for purchasing the Annuity inside a qualified plan are limited to the Defined Income Benefit and the opportunity to annuitize the contract, which might make the Annuity an appropriate investment for you. You should consult your tax and financial adviser regarding such features and benefits prior to purchasing this Annuity for use with a tax-qualified plan. When delivered in connection with the potential purchase of a new Annuity, this prospectus must be accompanied by the applicable Rate Sheet Prospectus Supplement setting forth the then current Income Growth Rate and Income Percentage Rates. Also, the Defined Income Benefit is neither optional nor revocable.

OTHER CONTRACTS

We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, and have fees and charges, that are different from the annuity contracts offered by this prospectus. Not every annuity contract we issue is offered through every selling broker-dealer firm. Upon request, your financial professional can show you information regarding other Pruco Life of New Jersey annuity contracts that he or she sells. You can also contact us to find out more about the availability of any of the Pruco Life of New Jersey annuity contracts. You should work with your financial professional to decide whether this annuity contract is appropriate for you based on a thorough analysis of your particular needs, financial objectives, investment goals, time horizons and risk tolerance.

PDINYPROS

AVAILABLE INFORMATION

We have also filed a Statement of Additional Information dated the same date as this prospectus that is available from us, without charge, upon your request. The contents of the Statement of Additional Information are described at the end of this prospectus – see Table of Contents. The Statement of Additional Information is incorporated by reference into this prospectus. This prospectus is part of the registration statement we filed with the SEC regarding this offering. Additional information on us and this offering is available in the registration statement and the exhibits thereto. You may review and obtain copies of these materials at no cost to you by contacting us. These documents, as well as documents incorporated by reference, may also be obtained through the SEC’s Internet Website (www.sec.gov) for this registration statement as well as for other registrants that file electronically with the SEC. Please see “How to Contact Us” later in this prospectus for our Service Office address.

In compliance with U.S. law, Pruco Life of New Jersey delivers this prospectus to current contract owners that reside outside of the United States. In addition, we may not market or offer benefits, features or enhancements to prospective or current contract owners while outside of the United States.

This Annuity is NOT a deposit or obligation of, or issued, guaranteed or endorsed by, any bank, and is NOT insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board or any other agency. An investment in an annuity involves investment risks, including possible loss of value.

THIS SECURITY HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

PRUDENTIAL, PRUDENTIAL FINANCIAL, PRUDENTIAL ANNUITIES AND THE ROCK LOGO ARE SERVICEMARKS OF THE PRUDENTIAL INSURANCE COMPANY OF AMERICA AND ITS AFFILIATES. OTHER PROPRIETARY PRUDENTIAL MARKS MAY BE DESIGNATED AS SUCH THROUGH USE OF THE ^SM OR ^® SYMBOLS.

FOR FURTHER INFORMATION CALL: 1-888-PRU-2888 OR GO TO OUR WEBSITE AT

www.prudentialannuities.com

Prospectus Dated: April 27, 2020    Statement of Additional Information Dated: April 27, 2020

PLEASE SEE OUR IRA, ROTH IRA AND FINANCIAL DISCLOSURE STATEMENTS

ATTACHED TO THE BACK COVER OF THIS PROSPECTUS.

CONTENTS

GLOSSARY OF TERMS	1
SUMMARY OF CONTRACT FEES AND CHARGES	3
EXPENSE EXAMPLES	5
SUMMARY	6
INVESTMENT OPTION	8
VARIABLE INVESTMENT OPTION	8
DEFINED INCOME BENEFIT	9
PURCHASING YOUR ANNUITY	15
REQUIREMENTS FOR PURCHASING THE ANNUITY	15
SETTING UP YOUR ANNUITY	16
RIGHT TO CANCEL	17
MANAGING YOUR ANNUITY	18
CHANGE OF OWNER, ANNUITANT AND BENEFICIARY DESIGNATIONS	18
ACCESS TO YOUR ACCOUNT VALUE	20
TYPES OF DISTRIBUTIONS AVAILABLE TO YOU	20
SYSTEMATIC WITHDRAWALS FROM YOUR ANNUITY DURING THE ACCUMULATION PERIOD	20
SYSTEMATIC WITHDRAWALS UNDER SECTIONS 72(t)/72(q) OF THE INTERNAL REVENUE CODE	20
REQUIRED MINIMUM DISTRIBUTIONS	20
SURRENDERS	22
SURRENDER VALUE	22
MEDICALLY-RELATED SURRENDERS	22
ANNUITY OPTIONS	23
TRADITIONAL ANNUITY PAYMENT OPTIONS	23
DEATH BENEFIT	25
DEATH BENEFIT UNDER THE DEFINED INCOME BENEFIT	25
DEATH BENEFIT UPON TERMINATION OF THE DEFINED INCOME BENEFIT	25
GENERAL DEATH BENEFIT PROVISIONS	26
SPOUSAL CONTINUATION OF YOUR ANNUITY	26
PAYMENT OF DEATH BENEFITS	27
FEES, CHARGES AND DEDUCTIONS	29
TRADITIONAL ANNUITY PAYMENT OPTION CHARGES	30
EXCEPTIONS/REDUCTIONS TO FEES AND CHARGES	30
VALUING YOUR INVESTMENT	32
VALUING THE SUB-ACCOUNT	32
PROCESSING AND VALUING TRANSACTIONS	32
TAX CONSIDERATIONS	34
NONQUALIFIED ANNUITIES	34
QUALIFIED ANNUITIES	37
ADDITIONAL CONSIDERATIONS	43
OTHER INFORMATION	44
PRUCO LIFE OF NEW JERSEY AND THE SEPARATE ACCOUNT	44
LEGAL STRUCTURE OF THE UNDERLYING FUND	46
DISTRIBUTION OF ANNUITIES OFFERED BY PRUCO LIFE OF NEW JERSEY	47
FINANCIAL STATEMENTS	49
INDEMNIFICATION	49
LEGAL PROCEEDINGS	49
CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION	49
HOW TO CONTACT US	49
APPENDIX A - ACCUMULATION UNIT VALUES	A-1
APPENDIX B - DEFINED INCOME BENEFIT SAMPLE CALCULATIONS	B-1

i

GLOSSARY OF TERMS

We set forth here definitions of some of the key terms used throughout this prospectus. In addition to the definitions here, we also define certain terms in the section of the prospectus that uses such terms.

Account Value: The total value of all allocations to the Sub-account on any Valuation Day.

Accumulation Period: The period of time from the Issue Date through the last Valuation Day immediately preceding the Annuity Date.

Annuitant: The natural person upon whose life annuity payments are based.

Annuitization : The process by which you direct us to apply the Account Value to one of the available annuity options to begin making periodic payments.

AnnuityDate: The date on which we apply your Account Value to the applicable annuity option and begin the payout period. As discussed in the Annuity Options section, there is an age by which you must begin receiving annuity payments, which we call the “Latest Annuity Date.”

AnnuityYear: The first Annuity Year begins on the Issue Date and continues through and includes the day immediately preceding the first anniversary of the Issue Date. Subsequent Annuity Years begin on the anniversary of the Issue Date and continue through and include the day immediately preceding the next anniversary of the Issue Date.

Beneficiary(ies): The natural person(s) or entity(ies) designated as the recipient(s) of the Death Benefit or to whom any remaining period certain payments may be paid in accordance with the annuity payout options section of this Annuity.

Code: The Internal Revenue Code of 1986, as amended from time to time and the regulations promulgated thereunder.

Contingent Annuitant : The natural person named to become the Annuitant upon the death of Annuitant prior to the Annuity Date. A Contingent Annuitant may be named only in limited circumstances involving an Annuity issued to a Custodial Account or to a tax-qualified retirement plan.

ContingentDeferredSalesCharge (“CDSC”): This is a sales charge that may be deducted when you make a surrender or take a partial withdrawal from your Annuity. We refer to this as a “contingent” charge because it is imposed only if you surrender or take a withdrawal from your Annuity. The charge is a percentage of each applicable Purchase Payment that is being surrendered or withdrawn.

Custodial Account: A trust or custodial account that qualifies as an individual retirement account as defined in Section 408(a) of the Code, including a Roth IRA that satisfies the definitions in Sections 408(a) and 408A of the Code.

DueProofofDeath: Due Proof of Death is satisfied when we receive all of the following in Good Order: (a) a death certificate or similar documentation acceptable to us; (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds (representations may include, but are not limited to, trust or estate paperwork (if needed); consent forms (if applicable); and claims forms from at least one beneficiary); and (c) any applicable election of the method of payment of the death benefit, if not previously elected by the Owner, by at least one Beneficiary.

ExcessIncome: All or any portion of a Lifetime Withdrawal that causes cumulative withdrawals in that Annuity Year to exceed the Guaranteed Income Amount for that Annuity Year. Each withdrawal of Excess Income proportionally reduces the Guaranteed Income Amount available for future Annuity Years.

FirstDeath: The first of the Spousal Designated Lives to die.

FreeLook: The right to examine your Annuity, during a limited period of time, to decide if you want to keep it or cancel it. The length of this time period, and the amount of refund, depends on applicable law and thus may vary by state. In addition, there is a different Free Look period that applies if your Annuity is held within an IRA or if your Annuity was sold to you as a replacement of a life insurance policy or another annuity contract. In your Annuity contract, your Free Look right is referred to as your “Right to Cancel.”

GoodOrder: Good Order is the standard that we apply when we determine whether an instruction is satisfactory. An instruction will be considered in Good Order if it is received at our Service Office: (a) in a manner that is satisfactory to us such that it is sufficiently complete and clear that we do not need to exercise any discretion to follow such instruction and complies with all relevant laws and regulations; (b) on specific forms, or by other means we then permit (such as via telephone or electronic submission); and/or (c) with any signatures and dates as we may require. We will notify you if an instruction is not in Good Order.

GuaranteedIncomeAmount(“GIA”): This is the annual amount of income you are eligible to receive for life under the “Defined Income Benefit.” The initial Guaranteed Income Amount is determined by multiplying the applicable Income Percentage by the Account Value on the Issue Date.

IncomeGrowthRate: The Income Growth Rate is the guaranteed compounded effective rate of return credited to your Guaranteed Income Amount up until your first Lifetime Withdrawal. The Income Growth Rate is set at Annuity issue, and will not change for the life of your Annuity.The rate is an annual effective rate and compounds daily.

IncomePercentage: The Income Percentage is used to determine the Guaranteed Income Amount associated with each Purchase Payment when it is allocated to the Annuity. The percentage is based on the attained age of the Single Designated Life, or the younger of the Spousal Designated

1

Lives on the date each Purchase Payment is allocated to the annuity. The Income Percentages are set at Annuity issue and will not change for the life of your Annuity.

InvestmentOption: The Sub-account as of any given time to which Account Value may be allocated.

IssueDate: The effective date of your Annuity.

LifetimeWithdrawal: Any withdrawal of assets from your Annuity that you do not designate as a Non-Lifetime Withdrawal under the Guaranteed Income Amount. Once you have taken your first Lifetime Withdrawal from the Annuity, all further withdrawals will be deemed to be Lifetime Withdrawals.

Non-Lifetime Withdrawal: A withdrawal of assets from your Annuity that you elect and designate as such by you.

Owner: With an Annuity issued as an individual annuity contract, the Owner is either an eligible entity or individual named as having ownership rights in relation to the Annuity.

PurchasePayment: A cash consideration in currency of the United States of America given to us in exchange for the rights, privileges, and benefits of the Annuity.

Portfolio: An underlying mutual fund in which a Sub-account of the Separate Account invests.

RemainingDesignatedLife: A natural person who must have been listed as one of the Spousal Designated Lives on the Issue Date. A Spousal Designated Life will become the Remaining Designated Life upon the earlier of the First Death or divorce from the other Spousal Designated Life while the Defined Income Benefit is in effect.

SeparateAccount: Referred to as the “Variable Separate Account” in your Annuity, this is the variable Separate Account(s) shown in the Annuity.

ServiceOffice: The place to which all requests and payments regarding the Annuity are to be sent. We may change the address of the Service Office at any time, and will notify you in advance of any such change of address. Please see “How to Contact Us” later in this prospectus for the Service Office address.

SingleDesignatedLife: The natural person who is the measuring life for the Defined Income Benefit that is designated at purchase of the annuity and cannot be changed for the life of the contract.

SpousalDesignatedLives: The natural persons who are the measuring lives for the Defined Income Benefit that are designated at purchase of the annuity and cannot be changed for the life of the contract.

Sub-account: A division of the Separate account.

SurrenderValue: The Account Value, less any applicable CDSC, any applicable tax charges, and any Annual Maintenance Fee.

Traditional Annuity Payment: A payment under an Annuity Payout Option other than the Guaranteed Income Amount option.

Unit: A share of participation in the Sub-account used to calculate your Account Value prior to the Annuity Date.

Unit Value: Each Variable Sub-account has a separate value for its Units (this is analogous to, but not the same as, the share price of a mutual fund).

ValuationDay: Every day the New York Stock Exchange is open for trading or any other day the Securities and Exchange Commission requires mutual funds or unit investment trusts to be valued, not including any day: (1) trading on the NYSE is restricted; (2) an emergency, as determined by the SEC, exists making redemption or valuation of securities held in the Separate Account impractical; or (3) the SEC, by order, permits the suspension or postponement for the protection of security holders.

we, us, our: Pruco Life Insurance Company of New Jersey.

you, your: The Owner(s) shown in the Annuity.

2

SUMMARY OF CONTRACT FEES AND CHARGES

The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the Annuity. The first table describes the fees and expenses that you will pay at the time you surrender the Annuity, or take a partial withdrawal. Important additional information about these fees and expenses is contained in “Fees, Charges and Deductions” later in this Prospectus.

ANNUITY OWNER TRANSACTION EXPENSES
Contingent Deferred Sales Charge (CDSC) 1
Age of Purchase Payment Being Withdrawn	Percentage Applied Against Purchase Payment being Withdrawn
Less than 1 year old	7.0%
1 year old or older, but not yet 2 years old	7.0%
2 year old or older, but not yet 3 years old	6.0%
3 year old or older, but not yet 4 years old	6.0%
4 year old or older, but not yet 5 years old	5.0%
5 year old or older, but not yet 6 years old	5.0%
6 year old or older, but not yet 7 years old	5.0%
7 years old or older	0.0%

1 The years referenced in the above CDSC tables refer to the length of time since a Purchase Payment was made (i.e., the age of the Purchase Payment). Contingent Deferred Sales Charges are applied against the Purchase Payment(s) being withdrawn. Thus, the appropriate percentage is multiplied by the Purchase Payment(s) being withdrawn to determine the amount of the CDSC. Purchase Payments are withdrawn on a "first-in, first-out" basis.

The following table describes the fees and charges that you will pay periodically during the time that you own your Annuity, not including the underlying portfolio annual fees and expenses.

PERIODIC FEES AND CHARGES (assessed annually as a percentage of Account Value)
Annual Maintenance Fee2	Lesser of $50 or 2% of Account Value

ANNUALIZED INSURANCE FEES/CHARGES (assessed daily as a percentage of the Sub-account)
	MAXIMUM	CURRENT
Mortality & Expense Risk Charge	0.95%	0.95%
Administration Charge	0.15%	0.15%
Defined Income Benefit Charge3,4	1.50%	0.80%
Total Insurance Charge	2.60%	1.90%

2 Only applicable if the sum of the Purchase Payments at the time the fee is due is less than $100,000

3 The charge for the Defined Income Benefit covers the Guaranteed Income Amount and will continue to apply until the Annuity is fully surrendered, a death benefit is payable, or Traditional Annuity Payments begin.

4 The Defined Income Benefit Charge may be increased one or more times on or after the 7^th anniversary of the Issue Date up to the maximum annual rate of 1.50%. We will notify you in advance of any change to the charge and you will be given the opportunity to “opt out” of any charge increase subject to certain conditions.

TOTAL ANNUAL UNDERLYING PORTFOLIO OPERATING EXPENSES

The next item shows the total annual operating expenses charged by the Portfolio for the year ended December 31, 2019 and does not necessarily reflect the fees you may incur. There is only one Portfolio offered in the Annuity. The “Total Annual Portfolio Operating Expenses” reflect the combination of the Portfolio’s investment management fee, other expenses, 12b-1 fees, and certain other expenses. Each figure is stated as a percentage of the Portfolio’s average daily net assets. See the prospectus or statement of additional information of the Portfolio for further details. The current prospectus and statement of additional information for thePortfolio can be obtained by calling 1-888-PRU-2888, or at www.prudentialannuities.com.

Total Annual Underlying Portfolio Operating Expenses 0.73%*

*This expe nse does not include the impact of any applicable contractual waivers or fee reimbursements.

3

UNDERLYING PORTFOLIO ANNUAL EXPENSES
(as a percentage of the average daily net assets of the underlying Portfolios)
For the year ended December 31, 2019
FUNDS	Management Fees	Other Expenses	Distribution (12b-1) Fees	Dividend Expense on Short Sales	Broker Fees and Expenses on Short Sales	Acquired Portfolio Fees & Expenses	Total Annual Portfolio Operating Expenses	Fee Waiver or Expense Reimbursement	Net Annual Fund Operating Expenses
AST Multi-Sector Fixed Income Portfolio	0.47%	0.01%	0.25%	0.00%	0.00%	0.00%	0.73%	0.00%	0.73%

4

EXPENSE EXAMPLES

These examples are intended to help you compare the cost of investing in this Annuity with the cost of investing in other variable annuity contracts. Below are examples showing what you would pay cumulatively in expenses at the end of the stated time periods had you invested $10,000 in the Annuity and your investment has a 5% return each year. The examples reflect the following fees and charges as described in “Summary of Contract Fees and Charges.”

▪ Maximum Total Insurance Charge

▪ Contingent Deferred Sales Charge (if applicable)

▪ Annual Maintenance Fee

The examples also assume the following for the period shown:

▪ Investment of Account Value in the Sub-account, with the total annual portfolio operating expenses (before any fee waiver or expense reimbursement) remaining the same each year.

▪ You make no withdrawals of your Account Value.

▪ No tax charge applies.

Amounts shown in the examples are rounded to the nearest dollar.

THE EXAMPLES ARE ILLUSTRATIVE ONLY. THEY SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES OF THE UNDERLYING PORTFOLIO.

	Assuming Total Annual Portfolio Operating Expenses of the Available Portfolio
	1 Year	3 Years	5 Years	10 Years
If you surrender your annuity at the end of the applicable time period:	$1,090	$1,780	$2,485	$4,062
If you annuitize your annuity at the end of the applicable time period: 1	$390	$1,180	$1,985	$4,062
If you do not surrender your annuity:	$390	$1,180	$1,985	$4,062

¹ Your ability to annuitize in the first Annuity Year may be limited.

ACCUMULATION UNIT VALUES

Please see Appendix A for a table of Accumulation Unit Values.

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SUMMARY

This Summary describes key features of the Annuity offered in this prospectus. It is intended to give you an overview, and to point you to sections of the prospectus that provide greater detail. You should not rely on the Summary alone for all the information you need to know before purchasing the Annuity. You should read the entire prospectus for a complete description of the Annuity. Your financial professional can also help you if you have questions.

The Annuity: The variable annuity contract issued by Pruco Life of New Jersey is a contract between you, the Owner, and Pruco Life of New Jersey, an insurance company. It is designed for retirement purposes, or other long-term investing, to help you save money for retirement, on a tax deferred basis, and provide income during your retirement. Although this prospectus describes key features of the variable annuity contract, the prospectus is a distinct document, and is not part of the Annuity.

Investing in a variable annuity involves risk and you can lose your money. On the other hand, investing in a variable annuity can provide you with the opportunity to grow your money through participation in an underlying Portfolio.

Generally speaking, variable annuities are investments designed to be held for the long term. Working with your financial professional, you should carefully consider whether a variable annuity is appropriate for you, given your life expectancy, need for income, and other pertinent factors.

InvestmentOption: The AST Multi-Sector Fixed Income Portfolio is the only Investment Option available under the Annuity. The Sub-account invests in the AST Multi-Sector Fixed Income Portfolio, an underlying mutual fund of Advanced Series Trust. The underlying mutual fund is described in its own prospectus, which you should read before investing. There is no assurance that the Investment Option will meet its investment objective.

Please note that the Annuity has only the one Investment Option; the AST Multi-Sector Fixed Income Portfolio, which seeks to maximize total return consistent with the preservation of capital. Unlike many other annuity contracts, the Annuity does not provide a diverse set of investment choices that would provide the option to allocate money among a variety of investment choices with different investment styles, objectives, strategies and risks.

Please see “Investment Option” for information.

LivingBenefit: The Defined Income Benefit is a guaranteed lifetime withdrawal benefit, under which, subject to the terms of the benefit, we guarantee you the ability to take an annual withdrawal amount until the death of a certain designated life (or lives) regardless of the impact of Sub-account performance on the Account Value, subject to our rules regarding the timing and amount of withdrawals. The Defined Income Benefit also provides for a death benefit equal to the greater of the Account Value and the Return of Purchase Payments Amount, subject to its terms.

While the Defined Income Benefit is in effect, a change in the Owner/Annuitant designations may cause the Defined Income Benefit to terminate, and you would lose all associated benefits. You should carefully consider whether to purchase the Annuity if you anticipate changing the Owner/Annuitant designations. Please see “Change of Owner, Annuitant and Beneficiary Designations” and “Termination of Benefits” for more information. The Defined Income Benefit is neither optional nor revocable. Please speak to your financial professional for further details.

Purchase: Your eligibility to purchase is based on your age and the amount of your initial Purchase Payment. See your financial professional to complete an application.

Minimum Age for Initial Purchase	Maximum Age for Initial Purchase	Minimum Initial Purchase Payment
45	85	$25,000

We limit additional Purchase Payments to the first Annuity Year, however at any time during this year, with prior notice to you, we may further limit your right to add additional Purchase Payments to the Annuity. If we exercise this right, your ability to invest in your Annuity, increase your Account Value and, consequently, increase your Guaranteed Income Amount or death benefit will be limited. This would also impact your ability to make annual contributions to certain qualified plans.

The “Minimum Age for Initial Purchase” applies to the age of the Designated Life or youngest age of the Spousal Designated Lives, and the “Maximum Age for Initial Purchase” applies to the age of the Designated Life or oldest of the Spousal Designated Lives as of the day we would issue the Annuity. If the Annuity is to be owned by an entity, the maximum age applies to the Annuitant as of the day we would issue the Annuity. After you purchase your Annuity, you will have a limited period of time during which you may cancel (or “Free Look”) the purchase of your Annuity. Your request for a Free Look must be received in Good Order within the applicable time period.

Please see “Requirements for Purchasing The Annuity” for more detail.

Access To Your Money: You can receive income by taking withdrawals or electing Traditional Annuity Payments. Withdrawals may be subject to tax, and may be subject to a Contingent Deferred Sales Charge (discussed below).

If you elect to receive Traditional Annuity Payments, you convert your Account Value into a stream of future payments. This means you no longer have an Account Value and therefore cannot make withdrawals. We offer different types of annuity options to meet your needs as described in “Annuity Options” later in this prospectus.

Death Benefit: During the Accumulation Period, you may name a Beneficiary(ies) to receive the proceeds of your Annuity upon your death provided you still have an Account Value. Your Death Benefit must be distributed within the time period required by the tax laws.

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Please see “Death Benefit” for more information.

Fees and Charges: The Annuity, including the living benefit, is subject to certain fees and charges, as discussed in the “Summary of Contract Fees and Charges” table earlier in this prospectus. In addition, there are fees and expenses of the underlying Portfolio.

What does it mean that your Annuity is “tax deferred”? Variable annuities are “tax deferred”, meaning you pay no taxes on any earnings or interest from your Annuity until distributions are made from your Annuity . When you take your money out of the Annuity, however, you will be taxed on the earnings at ordinary income tax rates. If you withdraw money before you reach age 59¹/₂, you also may be subject to a 10% additional federal tax.

Please note that if you purchase this Annuity within a tax advantaged retirement plan, such as an IRA, SEP-IRA, Roth IRA, 401(a) plan, or non-ERISA 403(b) plan, you will get no additional tax advantage through the Annuity itself. Because there is no additional tax advantage when a variable annuity is purchased through one of these plans, the reasons for purchasing the Annuity inside a qualified plan are limited to the Defined Income Benefit and the opportunity to annuitize the contract as well as the Death Benefit which might make the Annuity an appropriate investment for you. You should consult your tax and financial adviser regarding such features and benefits prior to purchasing this Annuity for use with a tax-qualified plan.

Other Information: Please see the section entitled “Other Information” for more information about the Annuity, including legal information about Pruco Life of New Jersey, the Separate Account, and underlying fund.

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INVESTMENT OPTION

The AST Multi-Sector Fixed Income Portfolio is the only Investment Option available under the Annuity. The Sub-account invests in the underlying Portfolio whose share price generally fluctuates each Valuation Day. You bear the investment risk for amounts allocated to the Sub-account. If in the future we make two or more Investment Options available under the Annuity, we may allow transfer privileges and we may impose transfer restrictions and transfer fees. In addition, if we make more than one Investment Option available with the Annuity, we may impose investment restrictions and/or conditions on Purchase Payments or allocations to one or more Investment Options.

Because one Investment Option is currently available under the Annuity, an investment in the Annuity involves certain additional limitations and risks. For example, the Annuity does not provide a diverse set of investment choices providing the option to allocate your Purchase Payments or Account Value among a variety of investment choices with different investment styles, objectives, strategies and risks. The performance of your Account Value will depend entirely on the performance of the one underlying Portfolio. The Annuity currently does not offer certain standard investment product features such as portfolio rebalancing, dollar-cost-averaging or transfer privileges. An investment in the Annuity, by itself, generally does not provide a complete investment program but rather is intended to serve as part of an investor's overall portfolio of investments. The Annuity may not be suitable for all investors. You may want to consult with your financial professional to determine if this Annuity is suitable for you.

Variable Investment Option:The Investment Option is a Sub-account of the Pruco Life of New Jersey Flexible Premium Variable Annuity Account (see “Pruco Life of New Jersey and the Separate Account” for more detailed information). The Sub-account invests exclusively in the AST Multi-Sector Fixed Income Portfolio. You should carefully read the prospectus for the AST Multi-Sector Fixed Income Portfolio.

The Portfolio is not a publicly traded mutual fund. The Portfolio is only available as an Investment Option in variable annuity contracts and variable life insurance policies issued by insurance companies, or in some cases, to participants in certain qualified retirement plans or other limited classes of investors permitted by the Code . Details about the investment objective, policies, risks, costs and management of the Portfolio are found in the prospectus for the Portfolio. There is no guarantee that the Portfolio will meet its investment objective. The current prospectus and statement of additional information for the underlying Portfolio can be obtained by calling 1-888-PRU-2888. Please read the prospectus carefully before investing.

The investment objective and name of the advisor/sub-advisor for the Portfolio appears in the table below.

PORTFOLIO NAME	INVESTMENT OBJECTIVE(S)	PORTFOLIO ADVISER/SUBADVISER(S)
AST Multi-Sector Fixed Income Portfolio	Seeks to maximize total return, consistent with the preservation of capital. Total return is comprised of current income and capital appreciation.	PGIM Fixed Income

PGIM Fixed Income is a business unit of PGIM, Inc.

PGIM Investments LLC manages each of the portfolios of the Advanced Series Trust (AST).  AST Investment Services, Inc. serves as co-manager, along with PGIM Investments LLC, to many of the portfolios of AST.

The Portfolio is a series of the Advanced Series Trust. PGIM Investments LLC is the investment adviser for the Portfolio and PGIM Fixed Income, a business unit of PGIM Inc. is the subadviser for the Portfolio. Both are affiliates of Pruco Life of New Jersey. Pruco Life of New Jersey and companies with which it is affiliated (the “Affiliated Companies”) receive fees and payments from the Portfolio, which may be greater than the fees and payments Pruco Life would receive if we offered Portfolios provided by companies not affiliated with Pruco Life of New Jersey (the “Unaffiliated Companies”). Because of the potential for greater revenue earned by Pruco Life of New Jersey and its Affiliated Companies with respect to the Portfolio, we have an incentive to offer the Portfolio over other Portfolios sponsored and advised by Unaffiliated Companies. We have an incentive to offer Portfolios with certain subadvisers, either because the subadviser is an Affiliated Company or because the subadviser provides payments or support, including distribution and marketing support, to Pruco Life of New Jersey or an Affiliated Company. We may consider those subadviser financial incentive factors in determining which Portfolios to offer under the Annuity. Also, in some cases, we offer Portfolios based on the recommendations made by selling broker-dealer firms. These firms may receive payments from the Portfolios they recommend and may benefit accordingly from allocations of Account Value to the Sub-Accounts that invest in these Portfolios. Allocations made to the Portfolio benefit us financially. Pruco Life of New Jersey has selected the Portfolio for inclusion as an investment option under this Annuity in Pruco Life of New Jersey’s role as the issuer of this Annuity, and Pruco Life of New Jersey does not provide investment advice or recommend any particular Portfolio. See "Other Information" under the heading concerning "Fees and Payments Received by Pruco Life of New Jersey" for more information about fees and payments we may receive from underlying Portfolios and/or their affiliates.

In addition, we may consider whether the Portfolio’s objectives and investment strategy create additional risk to us in light of any guaranteed benefits provided by the Annuity.

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DEFINED INCOME BENEFIT

The Defined Income Benefit is a guaranteed lifetime withdrawal benefit, under which, subject to the terms of the benefit, we guarantee your ability to receive periodic income payments over your lifetime (“Single Designated Life”), or over your and your spouse’s lives (“Spousal Designated Lives”). Generally, if your Account Value is reduced to zero and you meet certain requirements, we pay a remaining value based on the “Guaranteed Income Amount.” This benefit also provides for a death benefit equal to the greater of the Account Value and the Return of Purchase Payments Amount (described below), subject to the terms of the benefit.The Defined Income Benefit is part of your Annuity and is not an optional benefit and may not be revoked.You may not terminate the Defined Income Benefit. The Defined Income Benefit will terminate only upon specified events (see “Termination of the Benefit,” below).

When you purchase the Annuity, you must make a permanent decision whether you wish to own the Single or Spousal version of the Defined Income Benefit. Based upon your decision, the Defined Income Benefit guarantees the ability to withdraw the Guaranteed Income Amount. Each Annuity Year, you may withdraw this amount until the death of the Single Designated Life or Remaining Designated Life regardless of the impact of Sub-account performance on the Account Value. The Defined Income Benefit is subject to our rules regarding the timing and amount of withdrawals. Please see below under “Impact of Non-Lifetime Withdrawals on the Guaranteed Income Amount,” and “Impact of Lifetime Withdrawals on the Guaranteed Income Amount.”

The Defined Income Benefit’s Rate Sheet Prospectus Supplement

The current Income Growth Rate and Income Percentages that are used to determine the Guaranteed Income Amount are disclosed in the Rate Sheet Prospectus Supplement. The applicable Rate Sheet Prospectus Supplement is attached to the prospectus you receive at the time you purchase your Annuity.Rates and effective dates reflected in the Rate Sheet Prospectus Supplement each month replace and supersede those reflected in any prior month’s Rate Sheet Prospectus Supplement. Please refer to the dates on the Rate Sheet Prospectus Supplement at the time you purchase the annuity. If the dates on the Rate Sheet Prospectus Supplement have expired, we will deliver the current Rate Sheet Prospectus Supplement to you.

Please note, in order to receive the applicable Income Growth Rate and Income Percentages stated in a Rate Sheet Prospectus Supplement, your application must be signed and received by us in Good Order within the stated time period during which such rates will be applicable. The rates applicable to your Annuity will not change for the life of your Annuity. This means that the Income Growth Rate and Income Percentages for your Annuity will not change once established. Rates reflected in any Rate Sheet Prospectus Supplement with an effective period that does not include the date you signed your Annuity application and the date we receive it in Good Order will not apply to your Annuity. You should not purchase the Annuity without first obtaining the applicable Rate Sheet Prospectus Supplement, containing the available Income Growth Rate and Income Percentages applicable at the time.

Please see Appendix B to this Prospectus for examples demonstrating how the Guaranteed Income Amount is calculated using various assumed Income Growth Rates and Income Percentages. The examples are purely hypothetical and are intended to illustrate how we would determine the Guaranteed Income Amount for an Annuity. Your Guaranteed Income Amount would be different than the examples in the Appendix depending on the Income Growth Rate and Income Percentages effective at the time you signed your application, your age at the time the initial Purchase Payment is applied, the amount of your initial Purchase Payment, and whether you have elected the single or the spousal version of the Defined Income Benefit. For more information about currently available Income Percentages and Income Growth Rates, please see the current Rate Sheet Prospectus Supplement.

The Guaranteed Income Amount Option

This option is available for both nonqualified and qualified annuities.

You are guaranteed to be able to withdraw the Guaranteed Income Amount for the lifetime of the designated life (or lives) provided that you do not take withdrawals of Excess Income that result in your Account Value being reduced to zero. (See “Living Benefit – Owner, Annuitant and Beneficiary Designations” below for details regarding the designated life (or lives).) Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero for any reason other than a withdrawal of Excess Income (“Guarantee Payments”). The Defined Income Benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, and wish to ensure that Sub-account performance will not affect your ability to receive annual payments, and also wish to provide a death benefit to your beneficiaries. You are not required to take withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit.

Although you are guaranteed the ability to withdraw your Guaranteed Income Amount for life even if your Account Value falls to zero, if any withdrawal is a withdrawal of Excess Income (as described below) and brings your Account Value to zero, your Guaranteed Income Amount also would fall to zero, and the benefit and the Annuity then would terminate. In that scenario, no further amount would be payable under the Defined Income Benefit (and the Death Benefit would not be payable upon death). In marketing and other materials, we may refer to Excess Income as “Excess Withdrawals”.

Please note that your Account Value is not guaranteed, can fluctuate and may lose value.

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Guaranteed Income Amount

The initial Guaranteed Income Amount is determined on the Issue Date. It is determined by applying the applicable Income Percentage to the Account Value on the Issue Date. The applicable Income Percentage is based on the age of the Single Designated Life, or the younger of the Spousal Designated Lives, on the Issue Date.

On each Valuation Day thereafter, until the date of the first Lifetime Withdrawal, the Guaranteed Income Amount is equal to:

▪ the Guaranteed Income Amount on the immediately preceding Valuation Day (the “Prior Valuation Day”), appreciated at the daily equivalent of the Income Growth Rate for each calendar day between the Prior Valuation Day and the Current Valuation Day,

▪ reduced for any Non-Lifetime Withdrawals and increased for any Purchase Payments, if any, made on the Current Valuation Day, as described in the “Impact of Non-Lifetime Withdrawals on the Guaranteed Income Amount” and “Additional Purchase Payments(s)” sections below.

Once you have taken the first Lifetime Withdrawal, in any Annuity Year, the remaining Guaranteed Income Amount for that Annuity Year is reduced for Lifetime Withdrawals and increased for Purchase Payments as described in the “Impact of Lifetime Withdrawals on the Guaranteed Income Amount” and “Additional Purchase Payment(s)” sections below. However, once you have made the first Lifetime Withdrawal, the Guaranteed Income Amount will no longer increase based on the Income Growth Rate and will not increase due to fluctuations in your Account Value. On each anniversary of the Issue Date, your remaining Guaranteed Income Amount is increased to equal your then current Guarantee Income Amount. Lifetime Withdrawals that exceed the Guaranteed Income Amount in an Annuity Year will be considered Excess Income and will proportionally reduce the Guaranteed Income Amount available for future Annuity Years.

The applicable guaranteed Income Percentage is based on the attained age of the Designated Life (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, as specified in the applicable Rate Sheet Prospectus Supplement.

If you are receiving this prospectus as a current Owner of the Annuity, for the Income Growth Rate and Income Percentages that apply to your Annuity, please refer to your Annuity contract. Also, we maintain a record of historical Income Growth Rates and Income Percentages in the Statement of Additional Information which is available upon request.

Additional Purchase Payment(s):

You may make additional Purchase Payments to your Annuity at any time within the first Annuity Year, however at any time during that year, with prior notice to you, we may further limit your right to add additional Purchase Payments. Additional Purchase Payments increase the Guaranteed Income Amount by an amount obtained by multiplying the Purchase Payment we accept by the applicable Income Percentage. The applicable Income Percentage is based on the attained age of the Single Designated Life, or the younger of the Spousal Designated Lives, on the date the Purchase Payment is allocated to the Annuity. If this Defined Income Benefit has been issued on a Spousal Designated Lives basis, and one of the Spousal Designated Lives becomes the Remaining Designated Life, we will continue to use the date of birth of the younger of the Spousal Designated Lives for purposes of determining the applicable Income Percentage.

Please see “Purchasing Your Annuity – Purchase Payment Limitation” below.

Impact of Non-Lifetime Withdrawals on the Guaranteed Income Amount:You may designate one or more withdrawals as a Non-Lifetime Withdrawal before you take your first Lifetime Withdrawal. Non-Lifetime Withdrawals, including any Required Minimum Distribution amount you designate as a Non-Lifetime Withdrawal, proportionally reduce the Guaranteed Income Amount by the ratio of the Non-Lifetime Withdrawal amount to the Account Value immediately prior to the Non-Lifetime Withdrawal. Non-Lifetime Withdrawals that are not Required Minimum Distribution amounts are subject to any applicable Contingent Deferred Sales Charge. There is no limit on the number of Non-Lifetime Withdrawals that you can take. However, Non-Lifetime Withdrawals are subject to the minimum Surrender Value.

Impact of Lifetime Withdrawals on the Guaranteed Income Amount:If you have elected the Guaranteed Income Amount option, any Lifetime Withdrawal you take will reduce the remaining Guaranteed Income Amount available during an Annuity Year by the amount of the withdrawal on a dollar-for-dollar basis in that Annuity Year. If your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Guaranteed Income Amount, they will not reduce your Guaranteed Income Amount in subsequent Annuity Years and you cannot carry over the unused portion of the Guaranteed Income Amount to subsequent Annuity Years. Such withdrawals are not subject to Contingent Deferred Sales Charges, are not treated as withdrawals of Purchase Payments and are not subject to the minimum Surrender Value.

All or any portion of a Lifetime Withdrawal that causes cumulative withdrawals in that Annuity Year to exceed the Guaranteed Income Amount for that Annuity Year, called “Excess Income,” will impact the value of the benefit, including a permanent reduction in future guaranteed amounts. Each withdrawal of Excess Income proportionally reduces the Guaranteed Income Amount available for future Annuity Years. Each proportional reduction is calculated by multiplying the Guaranteed Income Amount by the ratio of the Excess Income to the Account Value immediately subsequent to the withdrawal of any Guaranteed Income Amount and prior to the withdrawal of the Excess Income (even if both withdrawals occurred in the same day or as one withdrawal request). Each withdrawal of Excess Income is subject to any applicable Contingent Deferred Sales Charge.

In general, withdrawals made from the Annuity during an Annuity Year to meet the Required Minimum Distributions will not be treated as Excess Income if you meet the requirements outlined in the Required Minimum Distributions section.

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For examples of the impact of Lifetime and Non-Lifetime Withdrawals on the Guaranteed Income Amount, please see the section below entitled “Examples of Withdrawals Under the Guaranteed Income Amount Option.”

Withdrawal Flexibility:Lifetime Withdrawals are not required. However, once you take the first Lifetime Withdrawal, the Guaranteed Income Amount is not increased in subsequent Annuity Years if you decide not to take a Lifetime Withdrawal in an Annuity Year or take Lifetime Withdrawals in an Annuity Year that, in total, are less than the Guaranteed Income Amount.

You may use the systematic withdrawal program to make withdrawals of the Guaranteed Income Amount (any systematic withdrawal, will be deemed a Lifetime Withdrawal under this benefit).

The Guaranteed Income Amount Option does not affect your ability to take partial withdrawals under your Annuity, or limit your ability to take partial withdrawals that exceed the Guaranteed Income Amount, subject to the minimum Surrender Value (see “Surrender Value” below for more detail). Because the Guaranteed Income Amount is determined in a way that is not related to Account Value, it is possible for the Account Value to fall to zero, even though the Guaranteed Income Amount remains.

Please note that there is a possibility you may pass away before receiving lifetime payments from the Defined Income Benefit, or may not receive enough lifetime income to exceed the amount of fees you have paid us for the benefit. However when you pass away, your beneficiaries may receive a death benefit as described in this prospectus. Please see “Death Benefit” in the prospectus. If you purchased the spousal version of this Annuity, then your spousal designated life will have the option to continue the Annuity provided he/she is the sole primary beneficiary and opts to receive the Guaranteed Income Amount.

Account Value is Reduced to Zero under the Guaranteed Income Amount Option

To the extent that your Account Value was reduced to zero as a result of withdrawals in an Annuity Year that are less than or equal to the Guaranteed Income Amount, and Guarantee Payments are still payable under the Defined Income Benefit, we will make an additional payment, if any, for that Annuity Year equal to the remaining Guaranteed Income Amount for the Annuity Year. Thus, in that scenario, the remaining Guaranteed Income Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years we make annuity payments that equal the Guaranteed Income Amount as described in this section. We will make payments until the death of the Single Designated Life, the simultaneous deaths of both Spousal Designated Lives, or the death of the Remaining Designated Life, as applicable. After the Account Value is reduced to zero, you will not be permitted to make additional Purchase Payments to your Annuity.If you take a withdrawal of Excess Income (i.e., a Lifetime Withdrawal that exceeds the Guaranteed Income Amount) that reduces your Account Value to zero or if you take a Non-Lifetime Withdrawal that reduces your Account Value to zero, the Annuity terminates and we will pay no additional amounts to you.

Unless you request an alternate mode of payment we make available, we make such Guarantee Payments once each Annuity Year.

We will commute any Guarantee Payments due and pay you a lump sum if the total Guarantee Payment due each Annuity Year is less than $100. We commute the Guarantee Payments in a manner equivalent to commuting payments for:

▪ a joint life and last survivor fixed annuity if both Spousal Designated Lives are living and each other’s spouse when Guarantee Payments would begin, or

▪ a single life fixed annuity if there is a Remaining Designated Life under this Rider, or if the Defined Income Benefit was issued with a Single Designated Life.

We use the same basis that is used to calculate the guaranteed annuity rates in the Annuity.

Please note that if your Account Value is reduced to zero, all subsequent payments will be treated as Guarantee Payments. Further, the Guarantee Payments in each Annuity Year subsequent to the Annuity Year your Account Value is reduced to zero will be treated as annuity payments. If your Account Value is reduced to zero due to withdrawals of Excess Income or annuitization, any Death Benefit value, including the Return of Purchase Payments Amount, will terminate and no Death Benefit amount is payable. This means that any Death Benefit is terminated and no Death Benefit is payable if your Account Value is reduced to zero as the result of either a withdrawal in excess of your Guaranteed Income Amount or less than or equal to, your Guaranteed Income Amount. (See “Death Benefits” for more information.)

In addition to the guaranteed lifetime income feature, the Defined Income Benefit also provides for annuity payments and a Death Benefit. Please see the “Annuity Options – Annuity Payments under the Defined Income Benefit” section below for a description of annuity options that apply under the Defined Income Benefit. Please see the “Death Benefit – Return of Purchase Payments Death Benefit” section below for a description of the Return of Purchase Payments Death Benefit that applies under the Defined Income Benefit.

Example of Withdrawals Under the Guaranteed Income Amount Option

Examples of dollar-for-dollar and proportional reductions are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Defined Income Benefit or any other fees and charges under the Annuity. We assume the following for the first two examples:

▪ The Issue Date is November 1^st

▪ The first withdrawal is a Lifetime Withdrawal under the Guaranteed Income Amount Option

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▪ On October 24^th of the following calendar year, $2,500 is withdrawn from the Annuity

▪ On October 29^th of the same year, $5,000 is also withdrawn from the Annuity,

Example of dollar-for-dollar reductions

On October 24th, Guaranteed Income Amount is $6,000. The Return of Purchase Payment Death Benefit Amount is $115,420. When $2,500 is withdrawn from the Annuity on this date, the remaining Guaranteed Income Amount for that Annuity Year (up to and including October 31st) is $3,500 and the Return of Purchase Payment Death Benefit Amount is $112,920. This is the result of a dollar-for-dollar reduction of the Guaranteed Income Amount ($6,000 less $2,500 = $3,500) and the Return of Purchase Payment Death Benefit Amount ($115,420 less $2,500 = $112,920).

Example of proportional reductions

Continuing the previous example, when the withdrawal of $5,000 occurs on October 29^th, the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $3,500 of this withdrawal reduces the Guaranteed Income Amount for that Annuity Year to $0 and the Return of Purchase Payment Death Benefit Amount to $109,420 ($112,920 less $3,500 = $109,420). The remaining withdrawal amount of $1,500 reduces the Guaranteed Income Amount in future Annuity Years and the Return of Purchase Payment Death Benefit Amount on a proportional basis based on the ratio of the Excess Income to the Account Value immediately prior to the Excess Income. (Note that if there are other future withdrawals in that Annuity Year, each would result in another proportional reduction to the Guaranteed Income Amount and the Return of Purchase Payment Death Benefit Amount).

Here is the calculation:

Account Value before Lifetime Withdrawal		$118,000.00
Less amount of “non” Excess Income		$3,500.00
Account Value immediately before Excess Income of $1,500		$114,500.00
Excess Income amount		$1,500.00
Ratio	1.31		%
Guaranteed Income Amount		$6,000.00
Less ratio of 1.31%		$78.60
Guaranteed Income Amount for future Annuity Years		$5,921.40
Return of Purchase Payment Death Benefit Amount after “non” Excess Income		$109,420.00
Less ratio of 1.31%		$1,433.40
Return of Purchase Payment Death Benefit Amount after Excess Income		$107,986.60

Example – Non-Lifetime Withdrawal (proportional reduction)

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit. Assume the following:

▪ The Issue Date is December 3^rd

▪ On October 3^rd of the following calendar year, the Guaranteed Income Amount is $6,000, the Return of Purchase Payment Death Benefit Amount is $115,420, and the Account Value is $120,000.

▪ Also on that same October 3^rd, $15,000 is withdrawn from the Annuity and is designated as a Non-Lifetime Withdrawal.

All guarantees associated with the Annuity will be reduced by the ratio the total withdrawal amount represents of the Account Value just prior to the withdrawal being taken.

Here is the calculation:

Withdrawal amount		$15,000.00
Divided by Account Value before withdrawal		$120,000.00
Equals ratio	12.5		%
All guarantees will be reduced by the above ratio (12.5%)
Guaranteed Income Amount before Non-Lifetime withdrawal		$6,000.00
Less ratio of 12.5%		$750.00
Guaranteed Income Amount for future Annuity Years		$5,250.00
Return of Purchase Payment Death Benefit Amount before Non-Lifetime withdrawal		$115,420.00
Less ratio of 12.5%		$14,427.50
Return of Purchase Payment Death Benefit Amount after Non-Lifetime withdrawal		$100,992.50

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When you make a partial withdrawal that is subject to a CDSC and/or tax withholding, we will identify the amount that includes not only the amount you actually receive, but also the amount of the CDSC and/or tax withholding, to determine whether your withdrawal has exceeded the Guaranteed Income Amount. When you take a partial withdrawal, you may request a “gross” withdrawal amount (e.g., $2,000) but then have any CDSC and/or tax withholding deducted from the amount you actually receive. The portion of a withdrawal that exceeded your Guaranteed Income Amount (if any) would be treated as Excess Income and thus would reduce your Guaranteed Income Amount in subsequent years. Alternatively, you may request that a “net” withdrawal amount actually be paid to you (e.g., $2,000), with the understanding that any CDSC and/or tax withholding (e.g., $240) be applied to your remaining Account Value. In the latter scenario, we determine whether any portion of the withdrawal is to be treated as Excess Income by looking to the sum of the net amount you actually receive (e.g., $2,000) and the amount of any CDSC and/or tax withholding (in this example, a total of $2,240). The amount of that sum (e.g., the $2,000 you received plus the $240 for the CDSC and/or tax withholding) that exceeds your Guaranteed Income Amount will be treated as Excess Income – thereby reducing your Guaranteed Income Amount in subsequent years. You should carefully consider whether you should take a net withdrawal because it may negatively impact your Defined Income Benefit. Net withdrawals are not available for withdrawals of your Guaranteed Income Amount through our systematic withdrawal program.

Other Important Considerations

▪ You should carefully consider when to begin taking Lifetime Withdrawals. If you begin taking withdrawals shortly after you purchase the Annuity, you may maximize the time during which you may take Lifetime Withdrawals due to longer life expectancy, but may limit your ability to take advantage of the opportunity to increase your future Guaranteed Income Amount by the Income Growth Rate. You should discuss with your financial professional when it may be appropriate for you to begin taking Lifetime Withdrawals.

▪ The current annualized charge for the Defined Income Benefit is 0.80% of the daily net assets of the Sub-account. You will begin paying this charge on the Issue Date even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments. We may increase the Defined Income Benefit Charge one or more times at any time on or after the 7^th anniversary of your Issue Date. The maximum annualized charge for the Defined Income Benefit is 1.50% of the daily net assets of the Sub-account. We will notify you in advance of any change in the charge and you will be given an opportunity to "opt out" of any charge increase subject to certain conditions. If you decided to "opt out" of the charge increase, your Guaranteed Income Amount will be reduced as of the next anniversary of your Issue Date. Please see "Fees, Charges and Deductions" later in this prospectus for more information on the "opt-out" process.

Facility of Payment: We reserve the right, in settlement of full liability, to make Guarantee Payments to a guardian, relative, or other person deemed eligible by us if a Designated Life payee is deemed to be legally incompetent, as permitted by law.

Proof of Survival: Any Guarantee Payment is subject to evidence we receive in Good Order that the Single Designated Life, at least one of the Spousal Designated Lives, or the Remaining Designated Life is then alive. We may withhold such Guarantee Payments until we receive such evidence or evidence satisfactory to us of the life of the Single Designated Life, at least one of the Spousal Designated Lives or the Remaining Designated Life. We credit interest on such withheld Guarantee Payments at the rate required by law. Should we subsequently determine withheld Guarantee Payments are payable, we will pay the withheld Guarantee Payments and any applicable interest credited in a lump sum.

Recovery of Excess Guarantee Payments: We may recover from you or your estate any Guarantee Payments made after the death of the Single Designated Life or the Remaining Designated Life.

Termination of the Defined Income Benefit

You may not elect to cancel the Defined Income Benefit.

The benefit automatically terminates upon the first to occur of the following:

(i) your surrender of the Annuity;

(ii) when annuity payments begin (although if you have elected to receive the Guaranteed Income Amount in the form of annuity payments, we will continue to pay the Guaranteed Income Amount);

(iii) our receipt of Due Proof of Death of the First Death who is an Owner (or who is the Annuitant if entity owned), if the Remaining Designated Life elects not to continue the Annuity;

(iv) our receipt of Due Proof of Death of the Owner (or the Annuitant, if the Annuity is entity owned) and there is still an Account Value available in the Annuity and the surviving Spouse is not eligible to continue the benefit because such Spouse is not a Spousal Designated Life;

(v) the date of receipt of Due Proof of Death of the Single Designated Life or the Remaining Designated Life if a Death Benefit is payable under the Defined Income Benefit;

(vi) the date of death of the Single Designated Life or the Remaining Designated Life when Account Value is reduced to zero as of the date of death;

(vii) both the Account Value and Guaranteed Income Amount equal zero; and

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(viii) we process a request to change the Annuitant, Owner or Beneficiary in the certain situations that would cause termination, as discussed in the “Change of Owner, Annuitant, and Beneficiary Designations” section of this Prospectus.

Additional Tax Considerations

If you purchase an annuity as an investment vehicle for “qualified” investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts beginning after age 70½ (72 for those who would have reached age 70½ after 2019). For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. In addition, the amount and duration of payments under the annuity payment provision may be adjusted so that the payments do not trigger any additional tax or excise taxes due to tax considerations such as Required Minimum Distribution rules under the tax law. As indicated, withdrawals made while this benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. We do not address each potential tax scenario that could arise with respect to this benefit here. However, we do note that if you participate in the Defined Income Benefit through a Nonqualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

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PURCHASING YOUR ANNUITY

REQUIREMENTS FOR PURCHASING THE ANNUITY

We may apply certain limitations, restrictions, and/or underwriting standards as a condition of our issuance of the Annuity and/or acceptance of Purchase Payments. The current conditions are described below. We may change these conditions in the future.

Your financial professional is required to complete annuity training prior to soliciting an application for an annuity product. If your annuity application was submitted prior to your financial professional fulfilling the applicable annuity training requirements, your application will be returned and the annuity product will need to be re-solicited. If the annuity training is not completed within five (5) Valuation Days from the date your initial Purchase Payment is received by Prudential in Good Order and we do not have your consent to retain the Purchase Payment, we will return your Purchase Payment and your Annuity will not be issued.

Age Restrictions: Unless we agree otherwise and subject to our rules, in order to issue the annuity we must receive the application, in Good Order, while the Single Designated Life or Spousal Designated Lives, each, are not younger than 45 or older than age 85. The broker-dealer firm through which you are purchasing the Annuity may impose a younger maximum issue age than what is described above – check with the broker-dealer firm for details. The “Annuitant” refers to the natural person upon whose life annuity payments payable to the Owner are based.

Initial Purchase Payment: An initial Purchase Payment is considered the first Purchase Payment received by us in Good Order and in an amount sufficient to issue your Annuity. All subsequent Purchase Payments allocated to the Annuity will be considered Additional Purchase Payments. Unless we agree otherwise and subject to our rules, you must make a minimum initial Purchase Payment of $25,000.

We must approve any initial and additional Purchase Payments where the total amount of Purchase Payments equals $1,000,000 or more with respect to this Annuity and any other annuities you are purchasing from us (or that you already own) and/or our affiliates. To the extent allowed by state law, that required approval also will apply to a proposed change of owner of the Annuity, if as a result of the ownership change, total Purchase Payments with respect to this Annuity and all other annuities owned by the new Owner would equal or exceed that $1,000,000 threshold. We may limit additional Purchase Payments under other circumstances, as explained in “Additional Purchase Payments,” below.

Applicable laws designed to counter terrorists and prevent money laundering might, in certain circumstances, require us to block an Annuity Owner’s ability to make certain transactions, and thereby refuse to accept Purchase Payments or requests for transfers (if applicable), partial withdrawals, total withdrawals, death benefits, or income payments until instructions are received from the appropriate regulator. We also may be required to provide additional information about you and your Annuity to government regulators.

Additional Purchase Payments: You may make additional purchase payments to the Annuity during the first Annuity Year provided the Account Value has not been reduced to zero, however at any time during this year, with prior notice to you, we may limit your right to allocate additional Purchase Payments to the Annuity. Additional Purchase Payments are subject to the maximum total Purchase Payment amount of $1,000,000 as noted above, and a minimum amount of $100. Purchase payments are not permitted on or after the Annuity Date. We may limit, restrict, suspend or reject any Purchase Payment, but would do so only on a non-discriminatory basis. See “Purchase Payment Limitation,” below, for more information.

During the time you are permitted to make additional Purchase Payments to the Annuity, on a non-discriminatory basis, we may limit, restrict, suspend or reject any Purchase Payment: (i) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Guaranteed Income Amount is being increased in an unintended fashion. A factor we will use in making a determination as to whether an action is designed to increase the Guaranteed Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s); and (ii) if the Income Percentages and/or Income Growth Rates have changed for new purchasers of the Annuity.

If we exercise this right to limit your Purchase Payment(s), your ability to invest in your Annuity, increase your Account Value and, consequently, increase your Guarantee Income Amount or death benefit will be limited. This would also impact your ability to make annual contributions to certain qualified plans. When you purchase this Annuity and determine the amount of your initial Purchase Payment, you should consider the fact that we may suspend, reject or limit additional Purchase Payments at some point in the future.

While the Annuity is offered in tax-qualified markets that have annual contribution limits under the Code, please note that this Annuity does not allow for additional Purchase Payments after the first Annuity Year. Please see the Tax Considerations section for additional information on these contribution limits.

Speculative Investing: Do not purchase this Annuity if you, anyone acting on your behalf, and/or anyone providing advice to you plan to use it, or any of its riders, for speculation, arbitrage, viatication or any other type of collective investment scheme now or at any time prior to termination of the Annuity. Your Annuity may not be traded on any stock exchange or secondary market. By purchasing this Annuity, you represent and warrant that you are not using this Annuity, or any of its riders, for speculation, arbitrage, viatication or any other type of collective investment scheme.

Currently, we will not issue an Annuity, permit changes in ownership or allow assignments to certain ownership types, including but not limited to: corporations, partnerships and endowments. Further, we will only issue an Annuity, allow changes of ownership and/or permit assignments to certain ownership types if the Annuity is held exclusively for the benefit of the designated Annuitant. You may name as Owner of the Annuity a grantor trust with one grantor only if the grantor is designated as the Annuitant. You may name as Owner of the Annuity, subject to state availability, a grantor trust with two grantors only if the oldest grantor is designated as the Annuitant. We will not issue Annuities to grantor trusts with more than two grantors and we will not permit co-grantors to be designated as either joint Annuitants during the Accumulation Period or Contingent Annuitants.

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Where the Annuity is owned by a grantor trust, the Annuity must be distributed within five-years after the date of death of the first grantor’s death under Section 72(s) of the Code. If a non-Annuitant grantor predeceases the Annuitant, the Surrender Value will be payable. The Surrender Value will be payable to the trust and there is no Death Benefit provided under the Annuity except as otherwise described below. Between the date of death of the non-Annuitant grantor and the date that we distribute the Surrender Value, the Account Value may be reduced by the Insurance Charge and may be subject to fluctuation in value due to the investment performance of the Sub-account. If the Annuitant dies after the death of the first grantor, but prior to the distribution of the Surrender Value of the Annuity, then the Death Benefit amount will be payable as a lump sum to the Beneficiary(ies) as described in the “Death Benefits” section of this prospectus. See the “Death Benefits” section later in this prospectus for information on the amount payable if the Annuitant predeceases the non-Annuitant grantor.

We may issue an Annuity in ownership structures where the annuitant is also the participant in a Qualified or Nonqualified employer sponsored plan and the Annuity represents his or her segregated interest in such plan. Further, please be aware that we do not provide administrative services for employer sponsored plans, and may limit the number of plan participants that may elect to use our Annuity as a funding vehicle.

Except as noted below, Purchase Payments must be submitted by check drawn on a U.S. bank, in U.S. dollars, and made payable to Pruco Life of New Jersey. Purchase Payments may also be submitted via 1035 exchange or direct transfer of funds. Under certain circumstances, Purchase Payments may be transmitted to Pruco Life of New Jersey via wiring funds through your financial professional’s broker-dealer firm. We may reject any payment if it is received in an unacceptable form. Our acceptance of a check is subject to our ability to collect funds.

SETTING UP YOUR ANNUITY

If you elect the Single Designated Life version of the Defined Income Benefit:

Single Designated Life:If the Owner is a natural person, the Owner must also be the Annuitant and the Single Designated Life. If the Owner is an entity that we permit, the Annuitant must be the Single Designated Life. You may not name multiple Owners if a Single Designated Life is listed in the Schedule Supplement.

If you elect the Spousal version of the Defined Income Benefit:

Spousal Designated Lives:Such persons must be each other’s Spouse on the Issue Date. If the Owner is a natural person, he/she must be the Annuitant, and one of the Spousal Designated Lives. The sole primary Beneficiary must be the other Spousal Designated Life for as long as the first Spousal Designated Life Owner is alive. If two Owners are named, each must be a Spousal Designated Life. No additional Owners may be named. While both Spousal Designated Lives are alive, each Owner must be designated as the other Owner’s primary Beneficiary. If the Owner is an entity that we permit, the Annuitant must be a Spousal Designated Life, and the Annuitant’s Spouse must be the other Spousal Designated Life. This benefit cannot be utilized when the Owner is an entity unless we allow for the continuation of the Annuity and the Defined Income Benefit by the Remaining Designated Life after the First Death.

Remaining Designated Life

A Remaining Designated Life must be a natural person and must have been listed as one of the Spousal Designated Lives on the Issue Date. A Spousal Designated Life will become the Remaining Designated Life on the earlier of the First Death, or divorce from the other Spousal Designated Life while the Defined Income Benefit is in effect. In the event of the divorce of the Spousal Designated Lives, and the resulting removal of one of the Spousal Designated Lives as an Owner, Annuitant or Beneficiary under the Annuity, the other Spousal Designated Life will become the Remaining Designated Life under the Defined Income Benefit if we receive notice of the divorce, and any other documentation we require, in Good Order, at our Service Office. Any new Beneficiary(ies) named by the Remaining Designated Life will not be a Spousal Designated Life.

General Information Regarding Owner, Annuitant and Beneficiary Designations:The selections you make for these designations are dependent upon your decision to purchase lifetime income for your life or your and your spouse’s lives.

▪ Owner: Each Owner holds all rights under the Annuity. You may name up to two Owners in which case all ownership rights are held jointly. Generally, joint Owners are required to act jointly; however, if both Owners instruct us in a written form that we find acceptable to allow one Owner to act independently on behalf of both Owners, we will permit one Owner to do so. All information and documents that we are required to send you will be sent to the first named Owner. Co-ownership by entity Owners or an entity Owner and an individual is not permitted. Refer to the Glossary of Terms for additional information regarding the term “Owner.” Prior to Annuitization, there is no right of survivorship (other than any spousal continuance right that may be available to a surviving spouse).

▪ Annuitant: The Annuitant is the person upon whose life we make annuity payments. You must name an Annuitant who is a natural person. We do not accept a designation of joint Annuitants during the Accumulation Period. In limited circumstances and where allowed by law, we may allow you to name one or more “Contingent Annuitants” with our prior approval. Generally, a Contingent Annuitant will become the Annuitant if the Annuitant dies before the Annuity Date. Please refer to the discussion of “Considerations for Contingent Annuitants” in the Tax Considerations section of the prospectus.

▪ Beneficiary: The Beneficiary is the person(s) or entity you name to receive the Death Benefit. Your Beneficiary designation should be the exact name of your Beneficiary, not only a reference to the Beneficiary’s relationship to you. If you use a class designation in lieu of designating individuals (e.g. “surviving children”), we will pay the class of Beneficiaries as determined at the time of your death and not the class of Beneficiaries that existed at the time the designation was made. If no Beneficiary is named, the Death Benefit will be paid to you or your estate. For Annuities that designate a custodian or a plan as Owner, the custodian or plan must also be designated as the Beneficiary. If an Annuity is

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co-owned by spouses, we do not offer Joint Tenants with Rights of Survivorship (JTWROS). Both owners would need to be listed as theprimary beneficiaries for the surviving spouse to maintain the contract, unless you elect an alternative Beneficiary designation.

Your right to make certain designations may be limited if your Annuity is to be used as an IRA or other “qualified” investment that is given beneficial tax treatment under the Code. You should seek competent tax advice on the income, estate and gift tax implications of your designations.

Please see “Tax Considerations” for information on the effect of applicable law if you are in a civil union, domestic partnership or same-sex marriage.

RIGHT TO CANCEL

You may cancel (or “Free Look”) your Annuity for a refund by notifying us in Good Order or by returning the Annuity to our Service Office or to the representative who sold it to you within 10 days after you receive it (or such other period as may be required by applicable law). The Annuity can be mailed or delivered either to us, at our Service Office, or to the representative who sold it to you. Return of this Annuity by mail is effective on being postmarked, properly addressed and postage prepaid.

Subject to applicable law, the amount of the refund will equal the Account Value as of the Valuation Day we receive the returned Annuity at our Service Office or the cancellation request in Good Order, plus any fees or tax charges deducted from the Purchase Payment upon allocation to the Annuity or imposed under the Annuity, less any applicable federal income tax withholding. However, where we are required by applicable law to return Purchase Payments, we will return the greater of Account Value and Purchase Payments.

MANAGING YOUR ANNUITY

CHANGE OF OWNER, ANNUITANT AND BENEFICIARY DESIGNATIONS

Subject to the limitations described below, in general, you may change the Owner, Annuitant and Beneficiary designations by sending us a request in Good Order, which will be effective upon receipt at our Service Office. As of the Valuation Day we receive an ownership change, including an assignment, any withdrawal programs will be canceled. The new Owner must submit the applicable program enrollment if they wish to participate in such a program. Where allowed by law, such changes will be subject to our acceptance. Any change we accept is subject to any transactions processed by us before we receive the notice of change at our Service Office.

While the Defined Income Benefit is in Effect

If you have the Single Designated Life version of the Defined Income Benefit, any change of the Annuitant under the Annuity will result in the cancellation of the Defined Income Benefit. Similarly, any change of Owner will result in cancellation of the Defined Income Benefit, except if (a) the new Owner has the same taxpayer identification number as the previous Owner, (b) ownership is transferred from a custodian or other entity to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines.

If you have the Spousal version of the Defined Income Benefit, a change to the Owner or Annuitant will result in the cancellation of the Defined Income Benefit in all cases, except as follows: (a) if one Owner dies and the Remaining Designated Life assumes the Annuity, or (b) if the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of Beneficiary designations under this benefit, however, if the Beneficiary is changed, the benefit may not be eligible to be continued upon the First Death. If the Spousal Designated Lives divorce, the Defined Income Benefit may not be divided as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity appoint a new Spousal Designated Life upon re-marriage.

If the Defined Income Benefit Terminates

If the Defined Income Benefit terminates, you would lose all guarantees provided by the Defined Income Benefit, and thus the ability to withdraw the Guaranteed Income Amount and receive the Death Benefit with the Return of Purchase Payments Amount. We will cease to deduct the Defined Income Benefit charge after the Benefit terminates. However we will not refund any Defined Income Benefit charges previously assessed. If the Defined Income Benefit terminates, you will not be able to re-elect the benefit later. If the Defined Income Benefit terminates, you will still have the right to annuitize the Account Value. Depending on the tax status of the annuity, you may receive tax deferral prior to annuitization.You should carefully consider purchasing the Annuity if you anticipate changing the Owner/Annuitant designations.You may name a new Beneficiary(ies), subject to the other limitations on Beneficiary designations noted above with respect to Spousal Designated Lives and a Remaining Designated Life. However, such new Beneficiary(ies) will not be a Spousal Designated Life, and would therefore result in the Defined Income Benefit terminating at the death of the Remaining Designated Life.

In general, you may change the Owner, Annuitant, and Beneficiary designations as indicated above, and also may assign the Annuity.We will allow changes of ownership and/or assignments only if the Annuity is held exclusively for the benefit of the Annuitant or Contingent Annuitant. We accept assignments of nonqualified Annuities only. We will reject the following proposed change of Owner, Annuitant, or Beneficiary, as well as any proposed assignment of the Annuity:

▪ a new Annuitant prior to the Annuity Date if the Owner is an entity;

▪ a new Owner such that the new Owner is older than the age for which we would then issue the Annuity as of the effective date of such change, unless the change of Owner is the result of spousal continuation;

▪ a new Owner or Annuitant that is a certain ownership type, including but not limited to corporations, partnerships, endowments, or grantor trusts with more than 2 grantors; and

▪ a new Annuitant for an Annuity issued to a grantor trust where the new Annuitant is not the oldest grantor of the trust.

We will also reject a proposed change where the proposed Owner, Annuitant, Beneficiary or assignee is any of the following:

▪ a company(ies) that issues or manages viatical or structured settlements;

▪ an institutional investment company;

▪ an Owner with no insurable relationship to the Annuitant or Contingent Annuitant (a “Stranger-Owned Annuity” or “STOA”); or

▪ a change in designation(s) that does not comply with or that we cannot administer in compliance with Federal and/or state law.

We will implement this right on a non-discriminatory basis and to the extent allowed by state law, but are not obligated to process your request within any particular time frame.

Spousal Designations

If an Annuity is co-owned by spouses, we do not offer Joint Tenants with Rights of Survivorship (JTWROS). Both owners would need to be listed as the primary beneficiaries for the surviving spouse to maintain the contract unless you designate a different Beneficiary. Note that any division of your

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Annuity due to divorce will be treated as a withdrawal and CDSC may apply. If CDSC is applicable, it cannot be divided between the owner and the non-owner ex-spouse. The non-owner ex-spouse may decide whether he or she would like to use the withdrawn funds to purchase a new Annuity that is then available to new contract owners. Depending upon the method used for the division of the Annuity, the CDSC may be applied to the existing or new Annuity. Please consult with your tax adviser regarding your personal situation if you will be transferring or dividing your Annuity pursuant to a divorce.

Prior to a 2013 Supreme Court decision, and consistent with Section 3 of the federal Defense of Marriage Act (“DOMA”), same sex marriages under state law were not recognized as same sex marriages for purposes of federal law. However, in United States v. Windsor, the U.S. Supreme Court struck down Section 3 of DOMA as unconstitutional, thereby recognizing a valid same sex marriage for federal law purposes. On June 26, 2015, the Supreme Court ruled in Obergefell v. Hodges that same-sex couples have a constitutional right to marry, thus requiring all states to allow same-sex marriage. The Windsor and Obergefell decisions mean that the federal and state tax law provisions applicable to an opposite sex spouse will also apply to a same sex spouse. Please note that a civil union or registered domestic partnership is generally not recognized as a marriage.

Please consult with your tax or legal adviser for more information.

Contingent Annuitant

Generally, if an Annuity is owned by an entity and the entity has named a Contingent Annuitant, the Contingent Annuitant will become the Annuitant upon the death of the Annuitant, and no death benefit is payable. Unless we agree otherwise, the Annuity is only eligible to have a Contingent Annuitant designation if the entity which owns the Annuity is (1) a plan described in Code Section 72(s)(5)(A)(i) (or any successor Code section thereto); (2) an entity described in Code Section 72(u)(1) (or any successor Code section thereto); or (3) a Custodial Account established to hold retirement assets for the benefit of the natural person Annuitant pursuant to the provisions of Section 408(a) of the Code (or any successor Code section thereto) (“Custodial Account”).

Where the Annuity is held by a Custodial Account, the Contingent Annuitant will not automatically become the Annuitant upon the death of the Annuitant. Upon the death of the Annuitant, the Custodial Account will have the choice, subject to our rules, to either elect to receive the Death Benefit or elect to continue the Annuity.

See “Death Benefits – Spousal Continuation of Annuity” for more information about how the Annuity can be continued by a Custodial Account.

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ACCESS TO YOUR ACCOUNT VALUE

TYPES OF DISTRIBUTIONS AVAILABLE TO YOU

During the Accumulation Period you can access your Account Value through partial withdrawals, systematic withdrawals, and where required for tax purposes, Required Minimum Distributions. The minimum amount for each partial withdrawal is $100. You can also surrender your Annuity at any time. Depending on your instructions, we may deduct a portion of the Account Value being withdrawn or surrendered as a CDSC. Cumulative Lifetime Withdrawals within an Annuity Year that are less than or equal to the Guaranteed Income Amount are not subject to a CDSC. If you surrender your Annuity, in addition to any CDSC, we may deduct the Annual Maintenance Fee, and any Tax Charge that applies. Each of these types of distributions is described more fully below.

SYSTEMATIC WITHDRAWALS FROM YOUR ANNUITY DURING THE ACCUMULATION PERIOD

Our systematic withdrawal program is an administrative program designed for you to withdraw a specified amount from your Annuity on an automated basis at the frequency you select. This program is available to you at no additional charge. We may cease offering this program or change the administrative rules related to the program at any time on a non-discriminatory basis.

You may not have a systematic withdrawal program, as described in this section, if you are receiving substantially equal periodic payments under Sections 72(t) and 72(q) of the Code or Required Minimum Distributions.

You may terminate your systematic withdrawal program at any time. Ownership changes to, and assignment of, your Annuity will terminate any systematic withdrawal program on the Annuity as of the effective date of the change or assignment. Requesting partial withdrawals while you have a systematic withdrawal program may also terminate your systematic withdrawal program as described below.

Systematic withdrawals are made from your Account Value. Systematic withdrawals may be subject to any applicable CDSC. We will determine whether a CDSC applies and the amount in the same way as we would for a partial withdrawal.

The minimum amount for each systematic withdrawal is $100. If any scheduled systematic withdrawal is for less than $100, we may postpone the withdrawal and add the expected amount to the amount that is to be withdrawn on the next scheduled systematic withdrawal.

If you elect to receive Lifetime Withdrawals using our systematic withdrawal program, please be advised of the current administrative rules associated with this program:

▪ If you have or establish a new systematic withdrawal program for an amount less than, or equal to, your Guaranteed Income Amount and we receive a request for a partial withdrawal from your Annuity in Good Order, we will process your partial withdrawal request and may cancel your systematic withdrawal program.

▪ If you have or establish a new systematic withdrawal program for an amount greater than your Guaranteed Income Amount, it is important to note that these systematic withdrawals may result in Excess Income which will negatively impact your Guaranteed Income Amount available in future Annuity Years and may also reduce the value of your Death Benefit. A combination of partial withdrawals and systematic withdrawals for an amount greater than your Guaranteed Income Amount will further increase the impact on your future Guaranteed Income Amount and Death Benefit value. Please see the “Defined Income Benefit” and “Death Benefit” sections of this prospectus for information on the impact of withdrawals of Excess Income.

▪ Non-Lifetime Withdrawals may not be taken as systematic withdrawals.

SYSTEMATIC WITHDRAWALS UNDER SECTIONS 72(t)/72(q) OF THE INTERNAL REVENUE CODE

If your Annuity is used as a funding vehicle for certain retirement plans that receive special tax treatment under Sections 401, 403(b), 408 or 408A of the Code, Section 72(t) of the Code may provide an exception to the 10% additional tax on distributions made prior to age 59½ if you elect to receive distributions as a series of “substantially equal periodic payments.” For Annuities issued as nonqualified annuities, the Code may provide a similar exemption from additional tax under Section 72(q) of the Code. Systematic withdrawals under Sections 72(t)/72(q) will be subject to a CDSC if they exceed the Guaranteed Income Amount under the Defined Income Benefit. To request a program that complies with Sections 72(t)/72(q), you must provide us with certain required information in writing on a form acceptable to us. We may require advance notice to allow us to calculate the amount of 72(t)/72(q) withdrawals. There is no minimum Surrender Value we require to allow you to begin a program for withdrawals under Sections 72(t)/72(q). The minimum amount for any such withdrawal is $100 and payments may be made monthly, quarterly, semi-annually or annually.

You may also annuitize your Annuity and begin receiving payments for the remainder of your life (or life expectancy) as a means of receiving income payments before age 59½ that are not subject to the 10% additional tax.

Please note that if a withdrawal under Sections 72(t) or 72(q) was scheduled to be effected between the last Valuation Day prior to December 25^th and December 31^st of a given year, then we will implement the withdrawal on December 28^th or on the last Valuation Day prior to December 28^th of that year.

REQUIRED MINIMUM DISTRIBUTIONS

Required Minimum Distributions (“RMDs”) are a type of partial withdrawal we allow to meet distribution requirements under Sections 401, 403(b) or 408 of the Code. Under the Code, you may be required to begin receiving periodic amounts from your Annuity. In such case, we will allow you to make systematic withdrawals in amounts that satisfy the minimum distribution rules under the Code. RMDs for this Annuity must generally be taken by April 1^st

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in the year following the date you turn age 70½ (72 for those who would have reached age 70½ after 2019) and by December 31^st for subsequent calendar years. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime.

Unless designated as a Non-Lifetime Withdrawal, an RMD is considered a Lifetime Withdrawal from the Annuity. The following rules apply to determine if any portion of an RMD amount will be treated as Excess Income.

For purposes of this provision, in relation to any Annuity Year, the “Second Calendar Year” is the calendar year following the calendar year in which the Annuity Year began.

In general, withdrawals made from the Annuity during an Annuity Year to meet the RMD provisions of the Code will not be treated as Excess Income. However, if in any Annuity Year, you take a Lifetime Withdrawal in the Second Calendar Year, then the amount which will not be treated as Excess Income is the sum of:

(1) the remaining Guaranteed Income Amount for that Annuity Year, and

(2) the Second Calendar Year’s remaining RMD amount less the Guaranteed Income Amount. If the Guaranteed Income Amount is greater than the Second Calendar Year’s remaining RMD amount, then (2) shall be equal to zero, or $0.

Any remaining RMD amount for the Second Calendar Year can be taken in the following Annuity Year.

If, in any Annuity Year, your RMD amount is not greater than the Guaranteed Income Amount, any withdrawals in excess of the Guaranteed Income Amount will be treated as Excess Income. RMD taken as systematic withdrawals will be considered Lifetime Withdrawals.

Please see hypothetical examples below for details.

If you do not comply with the rules described above, any withdrawal that exceeds the Guaranteed Income Amount will be treated as a withdrawal of Excess Income, which will reduce your Guaranteed Income Amount in future Annuity Years. This may include situations where you comply with the rules outlined above and then decide to take additional withdrawals after satisfying your RMD requirement from the Annuity.

For purposes of this provision, RMDs are determined based on the value of this Annuity, and do not include the value of any other annuities, savings or investments subject to the RMD rules. We require three (3) days advance written notice to calculate and process the amount of your withdrawals. You must elect to have RMDs paid out monthly, quarterly, semi-annually or annually. The $100 minimum amount that applies to systematic withdrawals applies to monthly RMDs but does not apply to RMDs taken out on a quarterly, semi-annual or annual basis.

In any year in which the requirement to take RMDs is suspended by law, we reserve the right, regardless of any position taken on this issue in a prior year, to treat any amount that would have been considered as an RMD if not for the suspension as eligible for treatment under this provision. Please note that if an RMD was scheduled to be effected between the last Valuation Day prior to December 25th and December 31st of a given year, then we will implement the RMD on December 28 or on the last Valuation Day prior to December 28th of that year.

The following applies in the event the Defined Income Benefit terminates: We do not assess a CDSC (if applicable) on RMDs from your Annuity if you are required by law to take such RMDs from your Annuity at the time it is taken, provided the amount withdrawn is the amount we calculate as the RMD. However, a CDSC (if applicable) may be assessed on that portion of a systematic withdrawal that is taken to satisfy the RMD rules in relation to other savings or investment plans under other qualified retirement plans.

You may also annuitize your Annuity and begin receiving payments for the remainder of your life (or life expectancy) as a means of receiving income payments and satisfying the RMD rules under the Code.

RMD rules do not apply to Roth IRAs during the Owner’s lifetime. See “Tax Considerations” for a further discussion of RMDs.

Example

The following example is purely hypothetical and intended to illustrate a scenario as described above. Note that withdrawals must comply with all IRS guidelines in order to satisfy the RMD for the current calendar year.

Assumptions:

RMD Calendar Year 01/01/2019 to 12/31/2019

Annuity Year 06/01/2018 to 05/31/2019

Guaranteed Income Amount and RMD Amount = $5,000

Remaining Guaranteed Income Amount as of 1/3/2019 = $3,000 (a $2,000 withdrawal was taken on 7/1/2018)

RMD Amount for Calendar Year 2019 = $6,000

The amount you may withdraw in the current Annuity Year (between 1/3/2019 and 5/31/2019 ) without it being treated as Excess Income is $4,000. Here is the calculation: $3,000 + ($6,000 – $5,000) = $4,000.

If the $4,000 withdrawal is taken in the current Annuity Year (prior to 6/1/2019 ), the remaining Guaranteed Income Amount will be zero and the remaining RMD amount of $2,000 may be taken in the subsequent Annuity Year beginning on 6/1/2019 (when your Guaranteed Income Amount is reset to $5,000).

If you had chosen to not take any additional withdrawals until on or after 6/1/2019 , then you would be eligible to withdraw $6,000 without it being treated as a withdrawal of Excess Income.

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SURRENDERS

SURRENDER VALUE

During the Accumulation Period you can surrender your Annuity at any time, and you will receive the Surrender Value. Upon surrender of your Annuity, you will no longer have any rights under the surrendered Annuity. Your Surrender Value is equal to the Account Value less any applicable CDSC, any applicable tax charges, and any Annual Maintenance Fee.

We require a minimum Surrender Value of $2,000 after any Partial Withdrawal. We waive this requirement while the Defined Income Benefit is in effect, if you are withdrawing the Guaranteed Income Amount, provided you do not take a withdrawal of Excess Income. See “Annuity Options” later in this prospectus for information on the impact of the minimum Surrender Value at annuitization.

MEDICALLY-RELATED SURRENDERS

Where permitted by law, you may request to surrender all or part of your Annuity prior to the Annuity Date without application of any otherwise applicable CDSC upon occurrence of a medically-related “Contingency Event” as described below (a “Medically-Related Surrender”). Please note, this applies to either owner if you elected the spousal version of the benefit and named both spouses as joint owners.

If you request a full surrender, the amount payable will be your Account Value. Although a CDSC will not apply to qualifying Medically-Related Surrenders, please be aware that a withdrawal from the Annuity before you have reached age 59¹/₂ may be subject to a 10% additional tax and other tax consequences – see the Tax Considerations section of this prospectus.

We waive any applicable CDSC only if:

▪ the Owner is an entity, the Annuitant must have been named or any change of Annuitant must have been accepted by us, prior to the “Contingency Event” described below in order to qualify for a Medically-Related Surrender;

▪ the Owner is an entity, the Annuitant must be alive as of the date we pay the proceeds of such surrender request;

▪ the Owner is one or more natural persons, all such Owners must also be alive at such time;

▪ we receive satisfactory proof of the Owner’s (or the Annuitant’s if entity-owned) confinement in a Medical Care Facility or Fatal Illness in writing on a form satisfactory to us;

▪ no additional Purchase Payments can be made to the Annuity; and/or

▪ proceeds will only be sent by check or electronic fund transfer directly to the Owner.

We reserve the right to impose a maximum amount of a Medically-Related Surrender (equal to $500,000), but we do not currently impose that maximum. That is, if the amount of a partial medically-related withdrawal request, when added to the aggregate amount of Medically-Related Surrenders you have taken previously under this Annuity and any other annuities we and/or our affiliates have issued to you exceeds that maximum amount, we reserve the right to treat the amount exceeding that maximum as not an eligible Medically-Related Surrender. A “Contingency Event” occurs if the Owner (or Annuitant if entity-owned) is:

▪ first confined in a “Medical Care Facility” after the Issue Date and while the Annuity is in force, remains confined for at least 90 consecutive days, and remains confined on the date we receive the Medically-Related Surrender request at our Service Office; or

▪ first diagnosed as having a “Fatal Illness” after the Issue Date and while the Annuity is in force. We may require a second or third opinion by a licensed physician chosen by us regarding a diagnosis of Fatal Illness. We will pay for any such second or third opinion.

“Fatal Illness” means a condition (a) diagnosed by a licensed physician; and (b) that is expected to result in death within 24 months after the diagnosis in 80% of the cases diagnosed with the condition. “Medical Care Facility” means a facility operated and licensed pursuant to the laws of any United States jurisdiction providing medically necessary in-patient care, which is (a) prescribed by a licensed physician in writing; (b) recognized as a general hospital or long-term care facility by the proper authority of the United States jurisdiction in which it is located; (c) recognized as a general hospital by the Joint Commission on the Accreditation of Hospitals; and (d) certified as a hospital or long-term care facility; OR (e) a nursing home licensed by the United States jurisdiction in which it is located and offers the services of a Registered Nurse (RN) or Licensed Practical Nurse (LPN) 24 hours a day that maintains control of all prescribed medications dispensed and daily medical records.

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ANNUITY OPTIONS

Annuitization involves converting your Account Value to an annuity payment stream, the length of which depends on the terms of the applicable annuity option. Thus, once annuity payments begin any payment upon death is determined solely under the terms of the applicable annuity payment option, and you no longer participate in the Defined Income Benefit (unless you have annuitized or began payments under one of the payment options under that benefit). We currently make annuity options available that provide fixed annuity payments. Fixed annuity payments provide the same amount with each payment. You must annuitize your entire Account Value; partial annuitizations are not allowed.

You have a right to choose your annuity start date, provided that it is no later than the first day of the calendar month next following the 95th birthday of the oldest of any Owner and Annuitant whichever occurs first (“Latest Annuity Date”) and no earlier than the earliest permissible Annuity Date. You may choose one of the Annuity Options described below, and the frequency of annuity payments. You may change your choices before the Annuity Date. If you have not provided us with your Annuity Date in writing, then your Annuity Date will be the Latest Annuity Date. Certain annuity options and/or periods certain may not be available, depending on the age of the Annuitant. If a CDSC is still remaining on your Annuity, any period certain must be at least 10 years (or the maximum period certain available, if life expectancy is less than 10 years).

If needed, we will require proof in Good Order of the Annuitant’s age before commencing annuity payments. Likewise, we may require proof in Good Order that an Annuitant is still alive, as a condition of our making additional annuity payments while the Annuitant lives. We will seek to recover any life income annuity payments that we made after the death of the Annuitant. If the initial monthly annuity payment would be less than $100, we will not allow you to annuitize (except as otherwise specified by applicable law). Instead, we will pay you your current Account Value in a lump sum and terminate your Annuity. Similarly, we reserve the right to pay your Account Value in a lump sum, rather than allow you to annuitize, if the Surrender Value of your Annuity is less than $2,000 on the Annuity Date.

Once annuity payments begin, you no longer receive benefits under the Defined Income Benefit (unless you have annuitized under that benefit) or the Death Benefit described below.

Certain of these annuity options may be available as “settlement options” to Beneficiaries who choose to receive the Death Benefit proceeds as a series of payments instead of a lump sum payment.

Annuity Payments under the Defined Income Benefit (Guaranteed Income Amount Option)

If annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is a Guaranteed Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

(1) apply your Account Value, less any applicable tax charges, to any other annuity option available for annuity payments not under the Defined Income Benefit (annuity Option 1 and Option 2, described below); or

(2) request that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Guaranteed Income Amount on that date. If this option is elected, the Guaranteed Income Amount will not increase after annuity payments have begun. We will make payments until the death of the Single Designated Life or the Remaining Designated Life. We must receive your request in a form acceptable to us at our Service Office. If applying your Account Value, less any applicable tax charges, to the life-only annuity payment rates results in a higher annual payment, we will give you the higher annual payment.

In the absence of an election when mandatory annuity payments are to begin we currently make annual annuity payments as:

▪ a joint life and last survivor fixed annuity if both Spousal Designated Lives are living and each other’s Spouse on the date annual annuity payments would begin, or

▪ as a single life fixed annuity if there is a Remaining Designated Life, or this Rider was issued with a Single Designated Life.

In addition, each of the payments above will consist of ten payments certain (or a lesser number of payments certain if the life expectancy of the Annuitant at the time payments are to begin is less than 10 years, based on applicable Internal Revenue Service tables), by applying the greater of the annuity rates then currently available or the annuity rates guaranteed in your Annuity. We reserve the right at any time to increase or decrease the length of any annuity payout option, including but not limited to any period certain in order to comply with the Code (e.g., to shorten the period certain to match life expectancy under applicable Internal Revenue Service tables). The amount that will be applied to provide such annuity payments will be the greater of:

(1) the present value of the future Guaranteed Income Amount payments; and

(2) the Account Value.

Once we receive your election to commence annuity payments, or we make the first payment under a default annuity payment option provision, we will only make annuity payments guaranteed under the specific annuity payment option, and the annuity payment option cannot be changed.

Traditional Annuity Payment Options

If annuity payments are to begin under the terms of your Annuity, you can elect to apply your Account Value less any applicable tax charges to one of the following two options. Annuity Options 1 and 2 will always be available for election.

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Please note that you may not annuitize under the Traditional Annuity Options described below within the first three Annuity Years (except as otherwise specified by applicable law).

Option 1

Annuity Payments for a Period Certain:Under this option, we will make equal payments for the period chosen (the “period certain”), up to 25 years (but not to exceed the life expectancy of the Annuitant at the time the Annuity Option becomes effective, as computed under applicable IRS tables). The annuity payments may be made monthly, quarterly, semiannually, or annually, as you choose, for the fixed period. If the Owner dies during the income phase, payments will continue to any surviving Owner, or if there is no surviving Owner, the named Beneficiary or your estate if no Beneficiary is named for the remainder of the period certain.

Option 2

Life Income Annuity Option with a Period Certain:Under this option, income is payable monthly, quarterly, semiannually, or annually for the period certain, subject to our then current rules, and thereafter until the death of the Annuitant. Should the Owner or Annuitant die before the end of the period certain, the remaining period certain payments are paid to any surviving Owner, or if there is no surviving Owner, the named Beneficiary, or your estate if no Beneficiary is named, until the end of the period certain. If an annuity option is not selected by the Annuity Date, this is the option we will automatically select for you. We will use a period certain of 10 years, or a shorter duration if the Annuitant’s life expectancy at the time the Annuity Option becomes effective, as computed under applicable IRS tables, is less than 10 years. If in this instance the duration of the period certain is prohibited by applicable law, then we will pay you a lump sum in lieu of this option.

Other Annuity Options We May Make Available

At the Annuity Date, we may make available other annuity options not described above. The additional options we currently offer are:

▪ Life Annuity Option. We currently make available an annuity option that makes payments for the life of the Annuitant. Under that option, income is payable monthly, quarterly, semiannually, or annually, as you choose, until the death of the Annuitant. No additional annuity payments are made after the death of the Annuitant. No minimum number of payments is guaranteed. It is possible that only one payment will be payable if the death of the Annuitant occurs before the date the second payment was due, and no other payments nor death benefits would be payable.

▪ Joint Life Annuity Option. Under the joint lives option, income is payable monthly, quarterly, semiannually, or annually, as you choose, during the joint lifetime of two Annuitants, ceasing with the last payment prior to the death of the second to die of the two Annuitants. No minimum number of payments is guaranteed under this option. It is possible that only one payment will be payable if the death of all the Annuitants occurs before the date the second payment was due, and no other payments or death benefits would be payable.

▪ Joint Life Annuity Option With a Period Certain. Under this option, income is payable monthly, quarterly, semiannually, or annually for the number of years selected (the “period certain”), subject to our current rules, and thereafter during the joint lifetime of two Annuitants, ceasing with the last payment prior to the death of the second to die of the two Annuitants. If the Annuitants’ joint life expectancy is less than the period certain, we will institute a shorter period certain, determined according to applicable IRS tables. Should the two Annuitants die before the end of the period certain, the remaining period certain payments are paid to any surviving Owner, or if there is no surviving Owner, the named Beneficiary, or to your estate if no Beneficiary is named, until the end of the period certain.

We reserve the right to cease offering any of these Other Annuity Options. If we do so, we will amend this prospectus to reflect the change. We reserve the right to make available other annuity or settlement options.

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DEATH BENEFIT

DEATH BENEFIT UNDER THE DEFINED INCOME BENEFIT

If you elected the Single version of the Defined Income Benefit on the Issue Date, and while it is in effect, the Death Benefit payable upon the death of the Single Designated Life is the Return of Purchase Payments Death Benefit. No Death Benefit is payable, however, if any of the following have occurred:

▪ Guarantee Payments (under the Guaranteed Income Amount Option);

▪ Traditional Annuity Payments

If you elected the Spousal version of the Defined Income Benefit on the Issue Date, while it is in effect, the Death Benefit payable upon the First Death is the Account Value. The Death Benefit payable upon the death of the Remaining Designated Life, is the Return of Purchase Payments Death Benefit. No Death Benefit is payable, however, if any of the following have occurred:

▪ Guarantee Payments (under the Guaranteed Income Amount Option); or

▪ Traditional Annuity Payments

The Return of Purchase Payments Death Benefit is equal to the greater of:

▪ the Account Value, or

▪ the Return of Purchase Payments Amount described below.

If we do not receive Due Proof of Death within one year of the death of the Owner (Annuitant if the Annuity is owned by an entity in the case of a Single Designated Life) or the death of the Remaining Designated Life in the case of Spousal Designated Lives, the Death Benefit payable is the Account Value. We reserve the right to waive or extend, on a non-discriminatory basis, our right to enforce the one year deadline for Due Proof of Death. This right will only apply for purposes of determining the amount payable as a Death Benefit, and in no way restricts when a claim may be filed.

All other provisions applicable to Death Benefits under your Annuity will continue to apply.

Return of Purchase Payments Amount

On the Issue Date, the Return of Purchase Payments Amount is equal to your Account Value. On each subsequent Valuation Day, until the date we receive Due Proof of Death of the Single Designated Life or the Remaining Designated Life, as applicable, the Return of Purchase Payments Amount is:

▪ increased by any Purchase Payments made on the current Valuation Day, and

▪ reduced by the effect of withdrawals made on the current Valuation Day, as described below.

A Non-Lifetime Withdrawal will proportionately reduce the Return of Purchase Payments Amount by the ratio of the Non-Lifetime Withdrawal to the Account Value immediately prior to the Non-Lifetime Withdrawal. A Lifetime Withdrawal that is not considered Excess Income, including Required Minimum Distributions, will reduce the Return of Purchase Payments Amount by the amount of the withdrawal. (For more information about the impact of RMDs, please see “Required Minimum Distributions” section.) All or a portion of a Lifetime Withdrawal that is considered Excess Income will proportionately reduce the Return of Purchase Payments Amount by the ratio of the Excess Income to the Account Value immediately prior to the withdrawal of the Excess Income.

The Death Benefit described above is available only while the Defined Income Benefit is in effect, and then only until your Account Value is reduced to zero. Once your Account Value reduces to zero, the Death Benefit feature of the Defined Income Benefit terminates.

DEATH BENEFIT UPON TERMINATION OF THE DEFINED INCOME BENEFIT

If you have taken actions that have caused the Defined Income Benefit to be terminated, then the Death Benefit is equal to the Account Value, and payable:

1) If the Annuity is owned by one or more natural persons, upon the death of the Owner (or the first to die, if there are multiple Owners).

2) If an Annuity is owned by an entity, upon the Annuitant’s death if there is no Contingent Annuitant. Generally, if a Contingent Annuitant was designated before the Annuitant’s death and the Annuitant dies, then the Contingent Annuitant becomes the Annuitant and a Death Benefit will not be paid upon the Annuitant’s death.

You should carefully consider any possible actions by you that would cause the Defined Income Benefit to be terminated, as it will impact the value payable as a Death Benefit.

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GENERAL DEATH BENEFIT PROVISIONS

We determine the amount of the Death Benefit as of the date we receive Due Proof of Death. We must be made aware of the entire universe of eligible Beneficiaries in order for us to have received Due Proof of Death. Any given Beneficiary must submit the written information we require in order to be paid his/her share of the Death Benefit.

Once we have received Due Proof of Death, each eligible Beneficiary may take his/her portion of the Death Benefit in one of the forms described in this prospectus (e.g., distribution of the entire interest in the Annuity within 5 years after the date of death, or as periodic payments over a period not extending beyond the life or life expectancy of the Beneficiary – see “Payment of Death Benefits” below).  

No Death Benefit will be payable if the Annuity terminates or your Account Value reaches zero (which can happen if, for example, you are taking withdrawals under the Defined Income Benefit).

Any Death Benefit amount not paid in full on the date of Due Proof of Death may be reduced by the Insurance Charge and may be subject to fluctuation in value due to the investment performance of the Sub-account until the Death Benefit is paid out in full.

Where an Annuity is issued to a trust, and such trust is characterized as a grantor trust under the Code, such Annuity shall not be considered to be held by a non-natural person and will be subject to the tax reporting and withholding requirements generally applicable to a Nonqualified Annuity held by a natural person. At this time, we will not issue an Annuity to grantor trusts with more than two grantors.

You may name as the Owner of the Annuity a grantor trust with one grantor only if the grantor is designated as the Annuitant. You may name as the Owner of the Annuity, subject to state availability, a grantor trust with two grantors only if the oldest grantor is designated as the Annuitant. We will not issue Annuities to grantor trusts with more than two grantors and we will not permit co-grantors to be designated as either joint Annuitants during the Accumulation Period or Contingent Annuitants.

Where the Annuity is owned by a grantor trust, the Annuity must be distributed within 5 years after the date of death of the first grantor’s death under Section 72(s) of the Code. If a non-Annuitant grantor predeceases the Annuitant, the Surrender Value will be payable. The Surrender Value will be payable to the trust and there is no Death Benefit provided under the Annuity except as otherwise described below. Between the date of death of the non-Annuitant grantor and the date that we distribute the Surrender Value, the Account Value may be reduced by the Insurance Charge and may be subject to fluctuation in value due to the investment performance of the Sub-account. If the Annuitant dies after the death of the first grantor, but prior to the distribution of the Surrender Value of the Annuity, then the Death Benefit amount will be payable as a lump sum to the Beneficiary or Beneficiaries as described in the “Death Benefits” section of this prospectus. See the “Death Benefits” section later in this prospectus for information on the amount payable if the Annuitant predeceases the non-Annuitant grantor.

SPOUSAL CONTINUATION OF YOUR ANNUITY

Unless you designate a Beneficiary other than your spouse, upon the death of either spousal Owner, the surviving spouse may elect to continue ownership of the Annuity instead of taking the Death Benefit. No CDSC will apply to Purchase Payments made prior to the effective date of a spousal continuance. However, any additional Purchase Payments applied after the effective date of a spousal continuation will be subject to all provisions of the Annuity, including the CDSC when applicable.

If you elected the Single version of the Defined Income Benefit on the Issue Date and it is in effect on the date of Due Proof of Death, if your spouse chooses to continue ownership of the Annuity the Account Value is increased, if necessary, to equal the Return of Purchase Payments Amount, and the Defined Income Benefit will terminate.

If you elected the Spousal version of the Defined Income Benefit on the Issue Date and it is in effect on the date of Due Proof of Death of the First Death,

▪ If the Remaining Designated Life chooses to continue the Annuity, the Defined Income Benefit will remain in force.

▪ If a Death Benefit is not payable (e.g., if the first of the Spousal Designated Lives to die is the Beneficiary but not an Owner), the Defined Income Benefit will remain in force unless we are instructed otherwise.

▪ Upon death of the Remaining Designated Life, if their spouse chooses to continue ownership of the Annuity the Account Value is increased, if necessary, to equal the Return of Purchase Payments Amount, and the Defined Income Benefit will terminate.

Spousal continuation is also permitted, subject to our rules and regulatory approval, if the Annuity is held by a custodial account established to hold retirement assets for the benefit of the natural person Annuitant pursuant to the provisions of Section 408(a) of the Code (“Custodial Account”) and, on the date of the Annuitant’s death, the spouse of the Annuitant is (1) the Contingent Annuitant under the Annuity and (2) the Beneficiary of the Custodial Account. The ability to continue the Annuity in this manner will result in the Annuity no longer qualifying for tax deferral under the Code. However, such tax deferral should result from the ownership of the Annuity by the Custodial Account. Please consult your tax or legal advisor.

See “Managing Your Annuity – Spousal Designations” for information regarding a same sex surviving spouse’s ability to continue ownership of the Annuity. Please consult your tax or legal advisor for more information.

Your Annuity may only be continued under the spousal continuation provision once.

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PAYMENT OF DEATH BENEFITS

Alternative Death Benefit Payment Options – Annuities Owned By Individuals (Not Associated With Tax-Favored Plans)

Except in the case of a spousal continuation as described above, upon your death, certain distributions must be made under the Annuity. The required distributions depend on whether you die before you start taking annuity payments under the Annuity or after you start taking annuity payments under the Annuity. If you die on or after the Annuity Date, the remaining portion of the interest in the Annuity must be distributed at least as rapidly as under the method of distribution being used as of the date of death. In the event of the decedent’s death before the Annuity Date, the Death Benefit must be distributed:

▪ within five (5) years of the date of death (the “five-year deadline”); or

▪ as a series of payments not extending beyond the life expectancy of the Beneficiary or over the life of the Beneficiary Payments under this option must begin within one year of the date of death. If the Beneficiary does not begin installments by such time, then no partial withdrawals will be permitted thereafter and we require that the Beneficiary take the Death Benefit as a lump sum within the five-year deadline.

If we do not receive instructions on where to send the payment within 5 years of the date of death, the funds will be escheated.

Alternative Death Benefit Payment Options – Annuities Held by Tax-Favored Plans

The Code provides for alternative death benefit payment options when an Annuity is used as an IRA, 403(b) or other “qualified investment” that requires minimum distributions. Upon your death under an IRA, 403(b) or other “qualified investment”, the designated Beneficiary may generally elect to continue the Annuity and receive Required Minimum Distributions under the Annuity instead of receiving the Death Benefit in a single payment. The available payment options will depend on whether you die before the date Required Minimum Distributions under the Code were to begin, whether you have named a designated Beneficiary and whether the Beneficiary is your surviving spouse.

For deaths occurring after 2019, H.R. 1865, the Further Consolidated Appropriations Act of 2020 (which includes the "Setting Every Community Up for Retirement Enhancement" Act (SECURE Act)), impacts defined contribution plans and IRA balances death benefits paid starting in 2020. if you are an employee under a governmental plan, such as a section 403(b) plan of a public school or a governmental 457(b) plan, the new law applies if you die after 2021. In addition, if your plan is maintained pursuant to one or more collective bargaining agreements, the new law generally applies if you die after 2021 (unless the collective bargaining agreements terminate earlier).

▪ If you die after a designated Beneficiary has been named, the death benefit must be fully distributed by December 31st of the year including the ten year anniversary of the date of death (the “Qualified Ten-Year Deadline”) with the exception of “eligible designated beneficiaries.” ”Eligible designated beneficiaries” may elect periodic payments not extending beyond the life expectancy of the eligible designated Beneficiary (provided such payments begin by December 31st of the year following the year of death). Eligible designated beneficiaries generally include any designated beneficiary who is your surviving spouse, your child who has not reached majority, disabled and chronically ill beneficiaries (as specified by the Code) and any beneficiary who is not more than 10 years younger than you. In the case of a child who has not attained the age of majority, the Qualified Ten Year Deadline would apply as of the date the child attains the age of majority. The determination of whether a designated beneficiary is an eligible designated beneficiary shall be made as of the date of your death.

• If the eligible designated Beneficiary does not begin installments by December 31st of the year following the year of death, then we require that the Beneficiary take the Death Benefit by the Qualified Ten-Year Deadline. However, if your surviving spouse is the Beneficiary, the death benefit can be paid out over the life expectancy of your spouse with such payments beginning no later than December 31st of the year following the year of death, or December 31st of the year in which you would have reached age 70 1/2 (or age 72, for distributions required to be made after December 31, 2019, with respect to individuals who attain 70 ½ after such date), whichever is later. Additionally, if the Death Benefit is solely payable to (or for the benefit of) your surviving spouse, then the Annuity may be continued with your spouse as the Owner.

• If you die before a designated Beneficiary is named, the Death Benefit must be paid out by the Qualified Five-Year Deadline For Annuities. Where multiple Beneficiaries have been named and at least one of the Beneficiaries does not qualify as a designated Beneficiary and the account has not been divided into Separate Accounts by December 31st of the year following the year of death, such Annuity is deemed to have no designated Beneficiary.

For deaths occurring before 2020 and for more information on the impact of the SECURE Act, see the “Tax Considerations” section.

A Beneficiary has the flexibility to take out more each year than mandated under the Required Minimum Distribution rules. Until withdrawn, amounts in an IRA, 403(b) or other “qualified investment” continue to be tax deferred. Amounts withdrawn each year, including amounts that are required to be withdrawn under the Required Minimum Distribution rules, are subject to tax. You may wish to consult a professional tax adviser for tax advice as to your particular situation.

For a Roth IRA, if death occurs before the entire interest is distributed, the Death Benefit must be distributed under the same rules applied to IRAs where death occurs before the date Required Minimum Distributions must begin under the Code.

If we do not receive instructions on where to send the payment within five-years of the date of death, the funds will be escheated.

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The tax consequences to the Beneficiary may vary among the different Death Benefit payment options. See the Tax Considerations section of this prospectus, and consult your tax adviser.

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FEES, CHARGES AND DEDUCTIONS

In this section, we provide detail about the charges you incur if you own the Annuity.

The charges under the Annuity are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the Annuity. They are also designed, in the aggregate, to compensate us for the risks of loss we assume. If, as we expect, the charges that we collect from the Annuity exceed our total costs in connection with the Annuity, we will earn a profit. Otherwise we will incur a loss. For example, Pruco Life of New Jersey may make a profit on the Insurance Charge if, over time, the actual costs of providing the guaranteed insurance obligations and other expenses under the Annuity are less than the amount we deduct for the Insurance Charge. To the extent we make a profit on the Insurance Charge, such profit may be used for any other corporate purpose.

The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In general, a given charge under the Annuity compensates us for our costs and risks related to that charge and may provide for a profit. However, it is possible that with respect to a particular obligation we have under this Annuity, we may be compensated not only by the charge specifically tied to that obligation, but also from one or more other charges we impose.

With regard to charges that are assessed as a percentage of the value of the Sub-account, please note that such charges are assessed through a reduction to the Unit Value of your investment in the Sub-account, and in that way reduce your Account Value.

Insurance Charge:We deduct an Insurance Charge daily based on the annualized rate shown in the “Summary of Contract Fees and Charges.” The charge is assessed against the assets allocated to the Sub-account. The Insurance Charge is the combination of the Mortality & Expense Risk Charge, the Administration Charge, and the Defined Income Benefit Charge. The Insurance Charge is intended to compensate Pruco Life of New Jersey for providing the insurance benefits under the Annuity, including the Annuity’s Death Benefit that provides guaranteed benefits to your Beneficiaries even if your Account Value declines, and the risk that persons to whom we guarantee annuity payments will live longer than our assumptions. The charge also covers our administrative costs associated with providing the Annuity benefits, including preparation of the contract and prospectus, confirmation statements, annual account statements and annual reports, legal and accounting fees as well as various related expenses. The charge covers the risk that our assumptions about the mortality risks and expenses under the Annuity are incorrect and that we have agreed not to increase these charges over time despite our actual costs. Finally, the charge compensates Pruco Life of New Jersey for providing the insurance benefits provided under the Defined Income Benefit, Guarantee Payments, and the Return of Purchase Payments Death Benefit.

The Defined Income Benefit Charge: As described in the “Summary of Contract Fees and Charges,” the Defined Income Benefit Charge can be increased one or more times at any time on or after the 7th anniversary of your Issue Date up to the maximum amount reflected therein. We will notify you in advance of any change in the Charge. You will have the option of refusing any charge increase.

If you elect to opt-out of the charge increase, your Guaranteed Income Amount will be permanently reduced by 5% on the next anniversary of your Issue Date, and the Defined Income Benefit Charge will continue at the present rate.

If you wish to opt-out, you must notify us within the stated time period described in our notice to you. When we receive your opt-out request, we will send you a form confirming the estimated dollar amount of the 5% Guaranteed Income Amount reduction. If, at that time, you would still like to elect the opt-out, you must sign and return the form to us at our Service Office in Good Order. Please keep in mind that opting out of the charge increase will have a negative impact to your Guaranteed Income Amount. You may want to consult with your financial professional to determine whether opting out is in your best interest.

Also, please keep in mind that while you are receiving your Guaranteed Income Amount its value remains constant, however the amount deducted from your Account Value for the Insurance Charge may vary due to fluctuations of your Account Value.

If you are receiving this Prospectus as a current owner having purchased the Annuity prior to April 28, 2014, the ability to opt-out of a charge increase is not provided for in your contract. For these contracts, the fee shall not be increased unless and until an amended rider is provided to the contract owner. Notwithstanding this, if we decide to increase the charge, we will make the opt-out available to contract owners who purchased prior to April 28, 2014.

The Defined Income Benefit is neither optional nor revocable.However, if the Defined Income Benefit terminates according to the terms of the benefit, then the Defined Income Benefit Charge component of the Insurance Charge will no longer be assessed. We will not refund any charges you have paid.

Fees and Expenses Incurred by the Portfolio:The Portfolio incurs total annualized operating expenses comprised of an investment management fee, other expenses and any distribution and service (12b-1) fees or short sale expenses that may apply. These fees and expenses are reflected daily by the Portfolio before it provides Pruco Life of New Jersey with the net asset value as of the close of business each Valuation Day. More detailed information about fees and expenses can be found in the prospectus for the Portfolio.

Annual Maintenance Fee:Prior to Annuitization, we deduct an Annual Maintenance Fee. The Annual Maintenance Fee is equal to $50 or 2% of your Account Value, whichever is less. This fee compensates us for administrative and operational costs in connection with the Annuity, such as maintaining our internal systems that support the Annuity. This fee will be deducted annually on the anniversary of the Issue Date of your Annuity or, if you surrender your Annuity during the Annuity Year, the fee is deducted at the time of surrender unless the surrender is taken within 30 days of the most recently assessed Annual Maintenance Fee. The fee is taken from the Sub-account. The Annual Maintenance Fee is only deducted if the sum of the Purchase

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Payments at the time the fee is deducted is less than $100,000. We do not impose the Annual Maintenance Fee upon Annuitization (unless Annuitization occurs on an Annuity anniversary), or the payment of a Death Benefit.

Contingent Deferred Sales Charge (“CDSC”): A CDSC reimburses us for expenses related to sales and distribution of the Annuity, including commissions, marketing materials and other promotional expenses. We may deduct a CDSC if you surrender your Annuity or when you make a partial withdrawal. The CDSC is calculated as a percentage of your Purchase Payment being surrendered or withdrawn. The CDSC percentage varies with the number of years that have elapsed since each Purchase Payment being withdrawn was made. If a withdrawal is effective on the day before the anniversary of the date that the Purchase Payment being withdrawn was made, then the CDSC percentage as of the next following year will apply. The CDSC percentages are shown under “Summary of Contract Fees and Charges” earlier in this prospectus.

With respect to a partial withdrawal, we calculate the CDSC by assuming that partial withdrawals are taken from Purchase Payments on a first-in, first-out basis, and subsequently from any other Account Value in the Annuity (such as gains). The CDSC calculation is applied to the Purchase Payments as they are being withdrawn. For example, assume you purchase your Annuity with a $75,000 initial Purchase Payment and you make no additional Purchase Payments for the life of your Annuity. Also assume that two years after the purchase, your Account Value is $85,000 ($75,000 of Purchase Payment plus $10,000 of investment gain) and you take a Non-Lifetime Withdrawal of $50,000. The $50,000 Non-Lifetime Withdrawal would be taken from your $75,000 Purchase Payment and the CDSC would be assessed against the same amount - $50,000 x 0.06 = $3,000. If the Non-Lifetime Withdrawal had exceeded the available Purchase Payments, any remaining withdrawal amounts would have been taken from gains. CDSC is not assessed against Lifetime Withdrawals, as described below.

You can request a partial withdrawal as either a “gross” or “net” withdrawal. In a “gross” withdrawal, you request a specific withdrawal amount with the understanding that the amount you actually received is reduced by any applicable CDSC or tax withholding. Therefore you may receive less than the dollar amount you specify. In a “net” withdrawal, you request a withdrawal for an exact dollar amount with the understanding that any applicable deduction for CDSC or tax withholding is taken from your remaining Account Value. Therefore, a larger amount may be deducted from your Account Value than the amount you specify. To illustrate, after taking the $50,000 withdrawal described in the example above, and without considering any CDSC or tax withholding, $25,000 would remain of your initial Purchase Payment. But due to the $10,000 in gains prior to the withdrawal, your Account Value would be $35,000 ($85,000 Account Value less the $50,000 withdrawal). If you had asked for a gross withdrawal, you would have received less than the $50,000 you withdrew, because we would have deducted the $3,000 CDSC plus any applicable tax withholding from the requested $50,000. While the amount you actually received would be lower, your Account Value would remain at $35,000. If you had asked for a net withdrawal, however, you would have received the full $50,000, but your Account Value would be lower than $35,000 because we would have deducted the $3,000 CDSC plus any applicable tax withholding from your Account Value.

Under the Defined Income Benefit, Non-Lifetime Withdrawals, excluding those designated as Required Minimum Distributions, are subject to any applicable CDSC, as described above. Lifetime Withdrawals in an Annuity Year that, in total, do not exceed the Guaranteed Income Amount are not subject to a CDSC. However, each withdrawal of Excess Income under the Defined Income Benefit is subject to any applicable CDSC. Withdrawals of Excess Income will reduce the benefits under the Defined Income Benefit. (Please see the “Defined Income Benefit” and “Death Benefit” sections of this prospectus for information on the impact of withdrawals of Excess Income.) Please be aware that under the Defined Income Benefit: (a) for a gross withdrawal, if the amount requested exceeds the Guaranteed Income Amount, the excess portion will be treated as Excess Income and (b) for a net withdrawal, if the amount you receive plus the amount of the CDSC deducted from your Account Value exceeds the Guaranteed Income Amount, the excess portion will be treated as Excess Income.

Upon surrender, we calculate a CDSC based on any Purchase Payments that remain in your Account Value on the date of the surrender (and after all other withdrawals have been taken). If you have made prior partial withdrawals or if your Account Value has declined in value due to negative market performance, the Purchase Payments being withdrawn may be greater than your remaining Account Value. Consequently, a higher CDSC may result than if we had calculated the CDSC as a percentage of remaining Account Value.

We may waive any applicable CDSC under certain circumstances described below in “Exceptions/Reductions to Fees and Charges.”

TRADITIONAL ANNUITY PAYMENT OPTION CHARGES

If you select a fixed payment option in the section of this prospectus entitled “Traditional Annuity Payment Options,” upon Annuitization, the amount of each fixed payment will depend on the Account Value of your Annuity when you elected to annuitize. There is no specific charge deducted from these payments; however, the amount of each annuity payment reflects assumptions about our insurance expenses. Also, a tax charge may apply.

EXCEPTIONS/REDUCTIONS TO FEES AND CHARGES

We may reduce or eliminate certain fees and charges or alter the manner in which the particular fee or charge is deducted. For example, we may reduce the amount of any CDSC or the length of time it applies, reduce or eliminate the amount of the Annual Maintenance Fee or reduce the portion of the total Insurance Charge that is deducted as an Administration Charge. We will not discriminate unfairly between Annuity purchasers if and when we reduce any fees and charges.

Tax Charge: We will pay company income taxes on the taxable corporate earnings created by this Annuity. While we may consider company income taxes when pricing our products, we do not currently include such income taxes in the tax charges you pay under the Annuity. We will periodically review the issue of charging for these taxes, and we may charge for these taxes in the future. We reserve the right to impose a charge for federal income taxes if we determine, in our sole discretion, that we will incur a tax as a result of the operation of the Separate Account.

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In calculating our corporate income tax liability, we may derive certain corporate income tax benefits associated with the investment of company assets, including Separate Account assets, which are treated as company assets under applicable income tax law. These benefits reduce our overall corporate income tax liability. Under current law, such benefits may include foreign tax credits and corporate dividend received deductions. We do not pass these tax benefits through to holders of the Separate Account annuity contracts because (i) the contract Owners are not the Owners of the assets generating these benefits under applicable income tax law and (ii) we do not currently include company income taxes in the tax charges you pay under the Annuity. We reserve the right to change these tax practices.

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VALUING YOUR INVESTMENT

VALUING THE SUB-ACCOUNT

Currently only one Sub-account is available with the Annuity. When you allocate Account Value to the Sub-account, you are purchasing Units of the Sub-account. The Sub-account invests exclusively in shares of an underlying Portfolio. The value of the Units fluctuates with the market fluctuations of the Portfolio. The value of the Units also reflects the daily accrual for the Insurance Charge.

Each Valuation Day, we determine the price for a Unit of the Sub-account, called the “Unit Price.” The Unit Price is used for determining the value of transactions involving Units of the Sub-account. We determine the number of Units involved in any transaction by dividing the dollar value of the transaction by the Unit Price of the Sub-account as of the Valuation Day. There may be different Unit Prices for the Sub-account to reflect possible variations in charges for the Defined Income Benefit. The Unit Price for the Units you purchase will be based on the total charges that apply to your Annuity.

PROCESSING AND VALUING TRANSACTIONS

Pruco Life of New Jersey is generally open to process financial transactions on those days that the New York Stock Exchange (NYSE) is open for trading. There may be circumstances where the NYSE does not open on a regularly scheduled date or time or closes at an earlier time than scheduled (normally 4:00 p.m. Eastern Time). Generally, financial transactions received in Good Order before the close of regular trading on the NYSE will be processed according to the value next determined following the close of business. Financial transactions received on a non-business day or after the close of regular trading on the NYSE will be processed based on the value next computed on the next Valuation Day.

We will not process any financial transactions involving purchase or redemption orders on days that the NYSE is closed. Pruco Life of New Jersey will also not process financial transactions involving purchase or redemption orders or transfers on any day that:

▪ trading on the NYSE is restricted;

▪ an emergency, as determined by the SEC, exists making redemption or valuation of securities held in the Separate Account impractical; or

▪ the SEC, by order, permits the suspension or postponement for the protection of security holders.

In certain circumstances, we may need to correct the processing of an order. In such circumstances, we may incur a loss or receive a gain depending upon the price of the security when the order was executed and the price of the security when the order is corrected. With respect to any gain that may result from such order correction, we will retain any such gain as additional compensation for these correction services.

Initial Purchase Payment:We are required to allocate your initial Purchase Payment to the Sub-account within two (2) Valuation Days after we receive the Purchase Payment in Good Order at our Service Office. If we do not have all the required information to allow us to issue your Annuity, we may retain the Purchase Payment while we try to reach you or your representative to obtain all of our requirements. If we are unable to obtain all of our required information within five (5) Valuation Days, we are required to return the Purchase Payment to you at that time, unless you specifically consent to our retaining the Purchase Payment while we gather the required information. Once we obtain the required information, we will invest the Purchase Payment and issue an Annuity within two (2) Valuation Days.

With respect to your initial Purchase Payment and any additional purchase payments pending investment in our Separate Account, we may hold the amount temporarily in a suspense account and we may earn interest on such amount. You will not be credited with interest during that period. The monies held in the suspense account may be subject to claims of our general creditors. Also, the Purchase Payment will not be reduced nor increased due to market fluctuations during that period.

As permitted by applicable law, the broker-dealer firm through which you purchase your Annuity may forward your initial Purchase Payment to us prior to approval of your purchase by a registered principal of the firm. Once your purchase is approved by the firm, we will process your initial Purchase Payment as described above. These arrangements are subject to a number of regulatory requirements, including that customer funds will be deposited in a segregated bank account and held by the insurer until such time that the insurer is notified of the firm’s principal approval and is provided with the application, or is notified of the firm principal’s rejection. In addition, we must promptly return your funds at your request prior to the firm’s principal approval or upon the firm’s rejection of the application. The monies held in the bank account will be held in a suspense account within our general account and we may earn interest on amounts held in that suspense account. You will not be credited with any interest earned on amounts held in that suspense account. Also, the amounts held will not be reduced nor increased due to market fluctuations during that period. The monies in such suspense account may be subject to our general creditors.

Additional Purchase Payments:We will apply any additional Purchase Payments we accept on the Valuation Day that we receive the Purchase Payment at our Service Office in Good Order. We may limit, restrict, suspend or reject any additional Purchase Payments at any time. See “Additional Purchase Payments” under “Purchasing Your Annuity” earlier in this prospectus.

Scheduled Transactions:Scheduled transactions include transfers under systematic withdrawals, Required Minimum Distributions, substantially equal periodic payments under Section 72(t)/72(q) of the Code, annuity payments and fees that are assessed daily as a percentage of the net assets of the Sub-accounts. Scheduled transactions are processed and valued as of the date they are scheduled, unless the scheduled day is not a Valuation Day. In that case, the transaction will be processed and valued on the next Valuation Day, unless (with respect to Required Minimum Distributions, substantially equal periodic payments under Section 72(t)/72(q) of the Code, annuity payments and fees that are assessed daily as a percentage

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of the net assets of the Sub-accounts only), the next Valuation Day falls in the subsequent calendar year, in which case the transaction will be processed and valued on the prior Valuation Day.

Unscheduled Transactions:“Unscheduled” transactions include any other non-scheduled partial withdrawals or Surrenders. With respect to certain written requests to withdraw Account Value, we may seek to verify the requesting Owner’s signature. Specifically, we reserve the right to perform a signature verification for (a) any withdrawal exceeding a certain dollar amount and (b) a withdrawal exceeding a certain dollar amount if the payee is someone other than the Owner. In addition, we will not honor a withdrawal request in which the requested payee is the financial professional or agent of record. We reserve the right to request a signature guarantee with respect to a written withdrawal request. If we do perform a signature verification, we will pay the withdrawal proceeds within 7 days after the withdrawal request was received by us in Good Order, and will process the transaction in accordance with the discussion in “Processing And Valuing Transactions.”

Medically-Related Surrenders & Death Benefits:Medically-Related Surrender requests and Death Benefit claims require our review and evaluation before processing. We price such transactions as of the date we receive at our Service Office in Good Order all supporting documentation we require for such transactions.

We generally pay any surrender request or death benefit claims from the Separate Account within 7 days of our receipt of your request in Good Order at our Service Office.

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TAX CONSIDERATIONS

The tax considerations associated with an Annuity vary depending on whether the Annuity is (i) owned by an individual or non-natural person, and not associated with a tax-favored retirement plan, or (ii) held under a tax-favored retirement plan. We discuss the tax considerations for these categories of Annuities below. The discussion is general in nature and describes only federal income tax law (not state, local, foreign or other federal tax laws). It is based on current law and interpretations which may change. The information provided is not intended as tax advice. The federal income tax treatment of the Annuity is unclear in certain circumstances, and you should always consult a qualified tax adviser regarding the application of law to individual circumstances.

Generally, the cost basis in an Annuity is the amount you pay into your Annuity, or into an annuity exchanged for your Annuity, on an after-tax basis less any withdrawals of such payments. Cost basis for a tax-favored retirement plan is provided only in limited circumstances, such as for contributions to a Roth IRA or nondeductible contributions to a traditional IRA. We do not track cost basis for tax-favored retirement plans, which is the responsibility of the Owner.

On advisory products, you may establish an advisory fee deduction program for a qualified or non-qualified Annuity with no living benefit such that charges for investment advisory fees are not taxable to the Annuity Owner.  Please note that there are additional requirements that must be satisfied in order for investment advisory fee charges paid from a non-qualified Annuity to be treated as not taxable.  Advisory fee deduction programs are not permitted if the Annuity is commission based or has a living benefit. Charges for investment advisory fees that are taken from a qualified or non-qualified Annuity with a living benefit are treated as a partial withdrawal from the Annuity and will be tax reported as such to the Annuity Owner.

The discussion below generally assumes that the Annuity is issued to the Annuity Owner. For Annuities issued under the Beneficiary Continuation Option or as a Beneficiary Annuity, refer to the Taxes Payable by Beneficiaries for a Nonqualified Annuity and Required Distributions Upon Your Death for Qualified Annuities sections below.

NONQUALIFIED ANNUITIES

In general, as used in this prospectus, a Nonqualified Annuity is owned by an individual or non-natural person and is not associated with a tax-favored retirement plan.

Taxes Payable by You

We believe the Annuity is an Annuity for tax purposes. Accordingly, as a general rule, you should not pay any tax until you receive money under the Annuity. Generally, an Annuity issued by the same company (and affiliates) to you during the same calendar year must be treated as one Annuity for purposes of determining the amount subject to tax under the rules described below. We treat advisory fee payments as an expense of the Annuity and not a taxable distribution if your non-qualified Annuity satisfies the requirements of a Private Letter Ruling issued to Pruco Life Insurance Company of New Jersey by the Internal Revenue Services (“IRS”). In accordance with the PLR, advisory fee payments from your non-qualified Annuity are treated as an expense as long as your advisor attests to Prudential that the PLR requirements have been met, including that the advisory fees will not exceed 1.5% of the Annuity’s cash value and the Annuity only pays the advisor for fees related to investment advice and no other services. The PLR does not generally allow such favorable tax treatment of advisory fee payments where a commission is also paid on the Annuity.

It is possible that the IRS could assert that some or all of the charges for the optional living or death benefits under the Annuity should be treated for federal income tax purposes as a partial withdrawal from the Annuity. If this were the case, the charge for this benefit could be deemed a withdrawal and treated as taxable income to the extent there are earnings in the Annuity. Additionally, for Owners under age 59½, the taxable income attributable to the charge for the benefit could be subject to an additional tax. If the IRS determines that the charges for one or more benefits under the Annuity are taxable withdrawals, then the sole or surviving Owner will be provided with a notice from us describing available alternatives regarding these benefits.

Taxes on Withdrawals and Surrender Before Annuity Payments Begin

If you make a withdrawal from your Annuity or surrender it before annuity payments begin, the amount you receive will be taxed as ordinary income, rather than as a return of cost basis, until all gain has been withdrawn. At any time there is no gain in your Annuity, payments will be treated as a nontaxable return of cost basis until all cost basis has been returned. After all cost basis is returned, all subsequent amounts will be taxed as ordinary income. An exception to this treatment exists for contracts purchased prior to August 14, 1982. Withdrawals are treated as a return of cost basis in the Annuity first until Purchase Payments made before August 14, 1982 are withdrawn. Moreover, income allocable to Purchase Payments made before August 14, 1982, is not subject to the 10% additional tax.

You will generally be taxed on any withdrawals from the Annuity while you are alive even if the withdrawal is paid to someone else. Withdrawals under any of the optional living benefits or as a systematic payment are taxed under these rules. If you assign or pledge all or part of your Annuity as collateral for a loan, the part assigned generally will be treated as a withdrawal and subject to income tax to the extent of gain. If the entire Account Value is assigned or pledged, subsequent increases in the Account Value are also treated as withdrawals for as long as the assignment or pledge remains in place. The cost basis is increased by the amount includible in income with respect to such assignment or pledge. If you transfer your Annuity for less than full consideration, such as by gift, you will also trigger tax on any gain in the Annuity. This rule does not apply if you transfer the Annuity to your spouse or under most circumstances if you transfer the Annuity incident to divorce.

If you choose to receive payments under an interest payment option, or a Beneficiary chooses to receive a death benefit under an interest payment option, that election will be treated, for tax purposes, as surrendering your Annuity and will immediately subject any gain in the Annuity to income tax.

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Taxes on Annuity Payments

If you select an annuity payment option as described in the Access to Account Value section earlier in this prospectus, a portion of each annuity payment you receive will be treated as a partial return of your cost basis and will not be taxed. The remaining portion will be taxed as ordinary income. Generally, the nontaxable portion is determined by multiplying the annuity payment you receive by a fraction, the numerator of which is your cost basis (less any amounts previously received tax-free) and the denominator of which is the total expected payments under the Annuity. After the full amount of your cost basis has been recovered tax-free, the full amount of the annuity payments will be taxable. If annuity payments stop due to the death of the Annuitant before the full amount of your cost basis has been recovered, a tax deduction may be allowed for the unrecovered amount. Under the Tax Cuts and Jobs Act of 2017, this deduction is suspended until after 2025.

If your Account Value is reduced to zero but the Annuity remains in force due to a benefit provision, further distributions from the Annuity will be reported as annuity payments, using an exclusion ratio based upon the undistributed cost basis in the Annuity and the total value of the anticipated future payments until such time as all cost basis has been recovered.

Maximum Annuity Date

You must commence annuity payments no later than the first day of the calendar month following the maximum Annuity Date for your Annuity. Upon reaching the maximum Annuity Date you can no longer make Purchase Payments, surrender, exchange, or transfer your contract. The maximum Annuity Date may be the same as the Latest Annuity Date as described elsewhere in this prospectus. For some of our Annuities, you can choose to defer the Annuity Date beyond the default or Latest Annuity Date, as applicable, described in your Annuity. However, the IRS may not then consider your Annuity to be an Annuity under the tax law.

Please refer to your Annuity contract for the maximum Annuity Date.

Partial Annuitization

Individuals may partially annuitize their Nonqualified Annuity if the contract so permits. The tax law allows for a portion of a nonqualified Annuity, endowment or life insurance contract to be annuitized while the balance is not annuitized. The annuitized portion must be paid out over 10 or more years or over the lives of one or more individuals. The annuitized portion of the Annuity is treated as a separate Annuity for purposes of determining taxability of the payments under Section 72 of the Code. We do not currently permit partial annuitization.

Medicare Tax on Net Investment Income

The Patient Protection and Affordable Care Act, enacted in 2010, included a Medicare tax on investment income. This tax assesses a 3.8% surtax on the lesser of (1) net investment income or (2) the excess of “modified adjusted gross income” over a threshold amount. The “threshold amount” is $250,000 for married taxpayers filing jointly or qualifying widow(er) with dependent child, $125,000 for married taxpayers filing separately, $200,000 for all others, and approximately $12,750 for trusts. The taxable portion of payments received as a withdrawal, surrender, annuity payment, death benefit payment or any other actual or deemed distribution under the Annuity will be considered investment income for purposes of this surtax.

10% Additional Tax for Early Withdrawal from a Nonqualified Annuity

You may owe a 10% additional tax on the taxable part of distributions received from your Nonqualified Annuity before you attain age 59½. Amounts are not subject to this additional tax if:

• the amount is paid on or after you reach age 59½;

• the amount is paid on or after the death of you (or the death of the Annuitant when the owner is not an individual);

• the amount received is attributable to your becoming disabled (as defined in the Code);

• generally the amount paid or received is in the form of substantially equal payments (as defined in the Code) not less frequently than annually (please note that substantially equal payments must continue until the later of reaching age 59½ or five years and modification of payments during that time period will result in retroactive application of the 10% additional tax); or

• the amount received is paid under an immediate Annuity (within the meaning of the Code) and the annuity start date is no more than one year from the date of purchase (the first monthly annuity payment being required to be paid within 13 months).

Other exceptions to this tax may apply. You should consult your tax adviser for further details.

Special Rules in Relation to Tax-free Exchanges Under Section 1035

Section 1035 of the Code permits certain tax-free exchanges of a life insurance contract, Annuity or endowment contract for an Annuity, including tax-free exchanges of annuity death benefits for a Beneficiary Annuity. Partial exchanges may be treated in the same way as tax-free 1035 exchanges of entire contracts, therefore avoiding current taxation of the partially exchanged amount as well as the 10% additional tax on pre-age 59½ withdrawals. In Revenue Procedure 2011-38, the IRS indicated that, for partial exchanges on or after October 24, 2011, where there is a surrender or distribution from either the initial Annuity or receiving Annuity within 180 days of the date on which the partial exchange was completed (other than an amount received as an annuity for a period of 10 years or more or during one or more lives), the IRS may not treat the transaction as a tax-free Section 1035 exchange. The IRS will apply general tax rules to determine the substance and treatment of the transaction in such cases. We strongly urge you to discuss any partial exchange transaction of this type with your tax adviser before proceeding with the transaction.

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If an Annuity is purchased through a tax-free exchange of a life insurance contract, Annuity or endowment contract that was purchased prior to August 14, 1982, then any Purchase Payments made to the original contract prior to August 14, 1982 will be treated as made to the new Annuity prior to that date. Generally, such pre-August 14, 1982 withdrawals are treated as a return of cost basis first until Purchase Payments made before August 14, 1982 are withdrawn. Moreover, income allocable to Purchase Payments made before August 14, 1982, is not subject to the 10% additional tax.

After you elect an Annuity Payout Option, we do not allow you to exchange your Annuity.

Taxes Payable by Beneficiaries for a Nonqualified Annuity

If an Owner dies before the Annuity Date, the Death Benefit distributions are subject to ordinary income tax to the extent the distribution exceeds the cost basis in the Annuity. The value of the Death Benefit, as determined under federal law, is also included in the Owner’s estate for federal estate tax purposes. Generally, the same income tax rules described above would also apply to amounts received by your Beneficiary. Choosing an option other than a lump sum Death Benefit may defer taxes. Certain minimum distribution requirements apply upon your death, as discussed further below in the Annuity Qualification section. Tax consequences to the Beneficiary vary depending upon the Death Benefit payment option selected. Generally, for payment of the Death Benefit:

• As a lump sum payment, the Beneficiary is taxed in the year of payment on gain in the Annuity.

• Within 5 years of death of Owner, the Beneficiary is taxed on the lump sum payment. The Death Benefit must be taken as one lump sum payment within 5 years of the death of the Owner. Partial withdrawals are not permitted.

• Under an Annuity or Annuity settlement option where distributions begin within one year of the date of death of the Owner, the Beneficiary is taxed on each payment with part as gain and part as return of cost basis. After the full amount of cost basis has been recovered tax-free, the full amount of the annuity payments will be taxable.

After the Annuity Date, if a period certain remains under the annuity option and the Annuitant dies before the end of that period, any remaining payments made to the Beneficiary will be fully excluded from income until the remaining investment in the contract is recovered and all annuity payments thereafter are fully includible in income. If we allow the Beneficiary to commute the remaining payments in a lump sum, the proceeds will be taxable as a surrender.

Considerations for Contingent Annuitants: We may allow the naming of a contingent Annuitant when a Nonqualified Annuity is held by a pension plan or a tax favored retirement plan, or held by a Custodial Account (as defined earlier in this prospectus). In such a situation, the Annuity may no longer qualify for tax deferral where the Annuity continues after the death of the Annuitant. However, tax deferral should be provided instead by the pension plan, tax favored retirement plan, or Custodial Account. We may also allow the naming of a contingent annuitant when a Nonqualified Annuity is held by an entity owner when such Annuities do not qualify for tax deferral under the current tax law. This does not supersede any benefit language which may restrict the use of the contingent annuitant.

Reporting and Withholding on Distributions

Amounts distributed from an Annuity are subject to federal and state income tax reporting and withholding. In general, we will withhold federal income tax from the taxable portion of such distribution based on the type of distribution. In the case of an annuity payment, we will withhold as if you are a married individual with three (3) exemptions unless you designate a different withholding status. If no U.S. taxpayer identification number is provided, we will automatically withhold using single with zero exemptions as the default. In the case of all other distributions, we will withhold at a 10% rate. You may generally elect not to have tax withheld from your payments. An election out of withholding must be made on forms that we provide. If you are a U.S. person (which includes a resident alien), and you request a payment be delivered outside the United States, we are required to withhold income tax.

State income tax withholding rules vary and we will withhold based on the rules of your state of residence. Special tax rules apply to withholding for nonresident aliens, and we generally withhold income tax for nonresident aliens at a 30% rate. A different withholding rate may be applicable to a nonresident alien based on the terms of an existing income tax treaty between the United States and the nonresident alien’s country. Please refer to the discussion below regarding withholding rules for a Qualified Annuity.

Regardless of the amount withheld by us, you are liable for payment of federal and state income tax on the taxable portion of annuity distributions. You should consult with your tax adviser regarding the payment of the correct amount of these income taxes and potential liability if you fail to pay such taxes.

Entity Owners

Where an Annuity is held by a non-natural person (e.g., a corporation), other than as an agent or nominee for a natural person (or in other limited circumstances), increases in the value of the Annuity over its cost basis will be subject to tax annually.

Where an Annuity is issued to a Charitable Remainder Trust (CRT), increases in the value of the Annuity over its cost basis will be subject to tax reporting annually. As there are charges for the optional living and death benefits described elsewhere in this prospectus, and such charges reduce the contract value of the Annuity, trustees of the CRT should discuss with their legal advisers whether election of such optional living or death benefits violates their fiduciary duty to the remainder beneficiary.

Where an Annuity is issued to a trust, and such trust is characterized as a grantor trust under the Code, such Annuity shall not be considered to be held by a non-natural person and will be subject to the tax reporting and withholding requirements generally applicable to a Nonqualified Annuity held by a

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natural person, provided that all grantors of the trust are natural persons. At this time, we will not issue an Annuity to grantor trusts with more than two grantors.

Where the Annuity is owned by a grantor trust, the Annuity must be distributed within five years after the date of the first grantor’s death under Section 72(s) of the Code. See the “Death Benefits” section for scenarios where a Death Benefit or Surrender Value is payable depending upon the underlying facts.

Trusts are required to complete and submit a Certificate of Entity form, and we will tax report based on the information provided on this form.

Annuity Qualification

Diversification And Investor Control. In order to qualify for the tax rules applicable to Annuities described above, the investment assets in the Sub-accounts Nonqualified Annuity must be diversified according to certain rules under the Code. Each Portfolio is required to diversify its investments each quarter so that no more than 55% of the value of its assets is represented by any one investment, no more than 70% is represented by any two investments, no more than 80% is represented by any three investments, and no more than 90% is represented by any four investments. Generally, securities of a single issuer are treated as one investment, and obligations of each U.S. Government agency and instrumentality (such as the Government National Mortgage Association) are treated as issued by separate issuers. In addition, any security issued, guaranteed or insured (to the extent so guaranteed or insured) by the U.S. or an instrumentality of the U.S. will be treated as a security issued by the U.S. Government or its instrumentality, where applicable. We believe the Portfolios underlying the variable Investment Options of the Annuity meet these diversification requirements.

An additional requirement for qualification for the tax treatment described above is that we, and not you as the Annuity Owner, must have sufficient control over the underlying assets to be treated as the Owner of the underlying assets for tax purposes. While we also believe these investor control rules will be met, the Treasury Department may promulgate guidelines under which a variable annuity will not be treated as an Annuity for tax purposes if persons with ownership rights have excessive control over the investments underlying such variable Annuity. It is unclear whether such guidelines, if in fact promulgated, would have retroactive effect. It is also unclear what effect, if any, such guidelines might have on transfers between the Investment Options offered pursuant to this prospectus. We reserve the right to take any action, including modifications to your Annuity or the Investment Options, required to comply with such guidelines if promulgated. Any such changes will apply uniformly to affected Owners and will be made with such notice to affected Owners as is feasible under the circumstances.

Required Distributions Upon Your Death for a Nonqualified Annuity. Upon your death, certain distributions must be made under the Annuity. The required distributions depend on whether you die before you start taking annuity payments under the Annuity or after you start taking annuity payments under the Annuity. If you die on or after the Annuity Date, the remaining portion of the interest in the Annuity must be distributed at least as rapidly as under the method of distribution being used as of the date of death. If you die before the Annuity Date, the entire interest in the Annuity must be distributed within five years after the date of death, or as periodic payments over a period not extending beyond the life or life expectancy of the designated Beneficiary (provided such payments begin within one year of your death). If the Beneficiary does not begin installments within one year of the date of death, no partial withdrawals will be permitted thereafter, and we require that the Beneficiary take the Death Benefit as a lump sum within the five-year deadline. Your designated Beneficiary is the person to whom benefit rights under the Annuity pass by reason of death, and must be a natural person in order to elect a periodic payment option based on life expectancy or a period exceeding five years. Additionally, if the Annuity is payable to (or for the benefit of) your surviving spouse, that portion of the Annuity may be continued with your spouse as the Owner. For Nonqualified Annuities owned by a non-natural person, the required distribution rules apply upon the death of the Annuitant. This means that for an Annuity held by a non-natural person (such as a trust) for which there is named a co-annuitant, then such required distributions will be triggered by the death of the first co-annuitant to die.

Changes To Your Annuity. We reserve the right to make any changes we deem necessary to assure that your Annuity qualifies as an Annuity for tax purposes. Any such changes will apply to all Annuity Owners and you will be given notice to the extent feasible under the circumstances.

QUALIFIED ANNUITIES

In general, as used in this prospectus, a Qualified Annuity is an Annuity with applicable endorsements for a tax-favored plan or a Nonqualified Annuity held by a tax-favored retirement plan.

The following is a general discussion of the tax considerations for Qualified Annuities. This Annuity may or may not be available for all types of the tax-favored retirement plans discussed below. This discussion assumes that you have satisfied the eligibility requirements for any tax-favored retirement plan. Please consult your financial professional prior to purchase to confirm if this Annuity is available for a particular type of tax-favored retirement plan or whether we will accept the type of contribution you intend for this Annuity.

A Qualified Annuity may typically be purchased for use in connection with:

• Individual retirement accounts and annuities (IRAs), including inherited IRAs (which we refer to as a Beneficiary IRA), which are subject to Sections 408(a) and 408(b) of the Code;

• Roth IRAs, including inherited Roth IRAs (which we refer to as a Beneficiary Roth IRA) under Section 408A of the Code;

• A corporate Pension or Profit-sharing plan (subject to 401(a) of the Code);

• H.R. 10 plans (also known as Keogh Plans, subject to 401(a) of the Code);

• Tax Sheltered Annuities (subject to 403(b) of the Code, also known as Tax Deferred Annuities or TDAs);

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• Section 457 plans (subject to 457 of the Code).

A Nonqualified Annuity may also be purchased by a 401(a) trust, a custodial IRA or a custodial Roth IRA account, or a Section 457 plan, which can hold other permissible assets. The terms and administration of the trust or custodial account or plan in accordance with the laws and regulations for 401(a) plans, IRAs or Roth IRAs, or a Section 457 plan, as applicable, are the responsibility of the applicable trustee or custodian.

You should be aware that tax favored plans such as IRAs generally provide income tax deferral regardless of whether they invest in Annuities. This means that when a tax favored plan invests in an Annuity, it generally does not result in any additional tax benefits (such as income tax deferral and income tax free transfers).

Types of Tax-favored Plans

IRAs. The “IRA Disclosure Statement” and “Roth IRA Disclosure Statement” which accompany the prospectus contain information about eligibility, contribution limits, tax particulars, and other IRA information. In addition to this information (the material terms are summarized in this prospectus and in those Disclosure Statements), the IRS requires that you have a “Free Look” after making an initial contribution to the Annuity. During this time, you can cancel the Annuity by notifying us in writing, and we will refund the greater of all purchase payments under the Annuity or the Account Value, less any applicable federal and state income tax withholding.

Contribution Limits/Rollovers. Subject to the minimum purchase payment requirements of an Annuity, you may purchase an Annuity for an IRA in connection with a “rollover” of amounts from a qualified retirement plan, as a transfer from another IRA, by making a contribution consisting of your IRA contributions and catch-up contributions, if applicable, attributable to the prior year during the period from January 1 to April 15 (or the later applicable due date of your federal income tax return, without extension), or as a current year contribution. In 2020 the contribution limit is $6,000. The contribution amount is indexed for inflation. The tax law also provides for a catch-up provision for individuals who are age 50 and above, allowing these individuals an additional $1,000 contribution each year. The catch-up amount is not indexed for inflation. The “rollover” rules under the Code are fairly technical; however, an individual (or his or her surviving spouse) may generally “roll over” certain distributions from tax favored retirement plans (either directly or within 60 days from the date of these distributions) if he or she meets the requirements for distribution. Once you buy an Annuity, you can make regular IRA contributions under the Annuity (to the extent permitted by law). For IRA rollovers, an individual can only make an IRA to IRA rollover if the individual has not made a rollover involving any IRAs owned by the individual in the prior 12 months. An IRA transfer is a tax-free trustee-to-trustee “transfer” from one IRA account to another. IRA transfers are not subject to this 12-month rule. Beginning in 2020, there is no longer an age limitation with regard to contributions to a traditional IRA as long as the earned income requirements are met.

In some circumstances, non-spouse Beneficiaries may roll over to an IRA amounts due from qualified plans, 403(b) plans, and governmental 457(b) plans. However, the rollover rules applicable to non-spouse Beneficiaries under the Code are more restrictive than the rollover rules applicable to Owner/participants and spouse Beneficiaries. Generally, non-spouse Beneficiaries may roll over distributions from tax favored retirement plans only as a direct rollover, and if permitted by the plan. For plan years beginning after December 31, 2009, employer retirement plans are required to permit non-spouse Beneficiaries to roll over funds to an inherited IRA. An inherited IRA must be directly rolled over from the employer plan or transferred from an IRA and must be titled in the name of the deceased (i.e., John Doe deceased for the benefit of Jane Doe). No additional contributions can be made to an inherited IRA. In this prospectus, an inherited IRA is also referred to as a Beneficiary Annuity.

Required Provisions. Annuities that are IRAs (or endorsements that are part of the contract) must contain certain provisions:

• You, as Owner of the Annuity, must be the “Annuitant” under the contract (except in certain cases involving the division of property under a decree of divorce);

• Your rights as Owner are non-forfeitable;

• You cannot sell, assign or pledge the Annuity;

• The annual contribution you pay cannot be greater than the maximum amount allowed by law, including catch-up contributions if applicable (which does not include any rollover amounts or amounts transferred by trustee-to-trustee transfer);

• The date on which required minimum distributions must begin cannot be later than April 1 ^st of the calendar year after the calendar year you turn age 70½ (or age 72, for distributions required to be made after December 31, 2019, with respect to individuals who attain 70 ½ after such date); and

• Death and annuity payments must meet Required Minimum Distribution rules described below.

Usually, the full amount of any distribution from an IRA (including a distribution from this Annuity) which is not a transfer or rollover is taxable. As taxable income, these distributions are subject to the general tax withholding rules described earlier regarding an Annuity in the Nonqualified Annuity section. In addition to this normal tax liability, you may also be liable for the following, depending on your actions:

• A 10% early withdrawal additional tax described below;

• Liability for “prohibited transactions” if you, for example, borrow against the value of an IRA; or

• Failure to take a Required Minimum Distribution, also described below.

SEPs. SEPs are a variation on a standard IRA, and Annuities issued to a SEP must satisfy the same general requirements described under IRAs (above). There are, however, some differences:

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• If you participate in a SEP, you generally do not include in income any employer contributions made to the SEP on your behalf up to the lesser of (a) $57,000 in 2020, or (b) 25% of your taxable compensation paid by the contributing employer (not including the employer’s SEP contribution as compensation for these purposes). However, for these purposes, compensation in excess of certain limits established by the IRS will not be considered. In 2020, this limit is $285,000;

• SEPs must satisfy certain participation and nondiscrimination requirements not generally applicable to IRAs; and

• SEPs that contain a salary reduction or “SARSEP” provision prior to 1997 may permit salary deferrals up to $19,500 in 2020 with the employer making these contributions to the SEP. However, no new “salary reduction” or “SARSEPs” can be established after 1996. Individuals participating in a SARSEP who are age 50 or above by the end of the year will be permitted to contribute an additional $6,500 in 2020. These amounts are indexed for inflation. Not all Annuities issued by us are available for SARSEPs. You will also be provided the same information, and have the same “Free Look” period, as you would have if you purchased the Annuity for a standard IRA.

ROTH IRAs. The “Roth IRA Disclosure Statement” contains information about eligibility, contribution limits, tax particulars and other Roth IRA information. Like standard IRAs, income within a Roth IRA accumulates tax-free, and contributions are subject to specific limits. Roth IRAs have, however, the following differences:

• Contributions to a Roth IRA cannot be deducted from your gross income;

• “Qualified distributions” from a Roth IRA are excludable from gross income. A “qualified distribution” is a distribution that satisfies two requirements: (1) the distribution must be made (a) after the Owner of the IRA attains age 59½; (b) after the Owner’s death; (c) due to the Owner’s disability; or (d) for a qualified first time homebuyer distribution within the meaning of Section 72(t)(2)(F) of the Code; and (2) the distribution must be made in the year that is at least five tax years after the first year for which a contribution was made to any Roth IRA established for the Owner or five years after a rollover, transfer, or conversion was made from a traditional IRA to a Roth IRA. Distributions from a Roth IRA that are not qualified distributions will be treated as made first from contributions and then from earnings and earnings will be taxed generally in the same manner as distributions from a traditional IRA.

• If eligible (including meeting income limitations and earnings requirements), you may make contributions to a Roth IRA during your lifetime, and distributions are not required during the owner’s lifetime.

Subject to the minimum Purchase Payment requirements of an Annuity, you may purchase an Annuity for a Roth IRA in connection with a “rollover” of amounts of another traditional IRA, SEP, SIMPLE-IRA, employer sponsored retirement plan (under Sections 401(a) or 403(b) of the Code) or Roth IRA; or, if you meet certain income limitations, by making a contribution consisting of your Roth IRA contributions and catch-up contributions, if applicable, attributable to the prior year during the period from January 1 to April 15 (or the applicable due date of your federal income tax return, without extension), or as a current year contribution. The Code permits persons who receive certain qualifying distributions from such non-Roth IRAs, to directly rollover or make, within 60 days, a “rollover” of all or any part of the amount of such distribution to a Roth IRA which they establish (a "conversion"). The conversion of non-Roth accounts triggers current taxation (but is not subject to a 10% early distribution additional tax).

The Code also permits the recharacterization of amounts from a traditional IRA, SEP, or SIMPLE IRA into a Roth IRA, or from a Roth IRA to a traditional IRA. Recharacterization is accomplished through a trustee-to-trustee transfer of a contribution (or a portion of a contribution) plus earnings, between different types of IRAs. A properly recharacterized contribution is treated as a contribution made to the second IRA instead of the first IRA. Under the Tax Cuts and Jobs Act of 2017, you may no longer recharacterize a conversion to a Roth IRA. It is still permissible to recharacterize a contribution made to a Roth IRA as a traditional IRA contribution, or a contribution to a traditional IRA as a Roth IRA contribution. Such recharacterization must be completed by the applicable tax return due date (with extensions).

Once an Annuity has been purchased, regular Roth IRA contributions will be accepted to the extent permitted by law. In addition, an individual receiving an eligible rollover distribution from a designated Roth account under an employer plan may roll over the distribution to a Roth IRA even if the individual is not eligible to make regular contributions to a Roth IRA. Non-spouse Beneficiaries receiving a distribution from an employer sponsored retirement plan under Sections 401(a) or 403(b) of the Code can also directly roll over contributions to a Roth IRA. However, it is our understanding of the Code that non-spouse Beneficiaries cannot “rollover” benefits from a traditional IRA to a Roth IRA.

TDAs. In general, you may own a Tax Deferred Annuity (also known as a TDA, Tax Sheltered Annuity (TSA), 403(b) plan or 403(b) Annuity) if you are an employee of a tax-exempt organization (as defined under Code Section 501(c)(3)) or a public educational organization, and you may make contributions to a TDA so long as your employer maintains such a plan and your rights to the Annuity are non-forfeitable. Contributions to a TDA, and any earnings, are not taxable until distribution. You may also make contributions to a TDA under a salary reduction agreement, generally up to a maximum of $19,500 in 2020. Individuals participating in a TDA who are age 50 or above by the end of the year will be permitted to contribute an additional $6,500 in 2020. This amount is indexed for inflation. Further, you may roll over TDA amounts to another TDA or an IRA. You may also roll over TDA amounts to a qualified retirement plan, a SEP and a governmental 457(b) plan. An Annuity may generally only qualify as a TDA if distributions of salary deferrals (other than “grandfathered” amounts held as of December 31, 1988) may be made only on account of:

• Your attainment of age 59½;

• Your severance of employment;

• Your death;

• Your total and permanent disability; or

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• Hardship (under limited circumstances, and only related to salary deferrals, not including earnings attributable to these amounts).

In any event, you must begin receiving distributions from your TDA by April 1st of the calendar year after the calendar year you turn age 70½ (or age 72 shall apply to distributions required to be made after December 31, 2019, with respect to individuals who attain age 70½ after such date), or retire, whichever is later. These distribution limits do not apply either to transfers or exchanges of investments under the Annuity, or to any “direct transfer” of your interest in the Annuity to another employer’s TDA plan or mutual fund “custodial account” described under Code Section 403(b)(7). Employer contributions to TDAs are subject to the same general contribution, nondiscrimination, and minimum participation rules applicable to “qualified” retirement plans.

Caution: Under IRS regulations we can accept contributions, transfers and rollovers only if we have entered into an information-sharing agreement, or its functional equivalent, with the applicable employer or its agent. In addition, in order to comply with the regulations, we will only process certain transactions (e.g., transfers, withdrawals, hardship distributions and, if applicable, loans) with employer approval. This means that if you request one of these transactions we will not consider your request to be in Good Order, and will not therefore process the transaction, until we receive the employer’s approval in written or electronic form.

Late Rollover Self-Certification

You may be able to apply a rollover contribution to your IRA or qualified retirement plan after the 60-day deadline through a self-certification procedure established by the IRS. Please consult your tax or legal adviser regarding your eligibility to use this self-certification procedure. As indicated in this IRS guidance, we, as a financial institution, are not required to accept your self-certification for waiver of the 60-day deadline.

Required Minimum Distributions and Payment Options

If you hold the Annuity under an IRA (or other tax-favored plan), Required Minimum Distribution rules must be satisfied. This means that generally payments must start by April 1 of the year after the year you reach age 70½ (or age 72 shall apply to distributions required to be made after December 31, 2019, with respect to individuals who attain age 70½ after such date ) and must be made for each year thereafter. For a TDA or a 401(a) plan for which the participant is not a greater than 5% Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner’s lifetime. The amount of the payment must at least equal the minimum required under the IRS rules. Several choices are available for calculating the minimum amount. More information on the mechanics of this calculation is available on request. Please contact us at a reasonable time before the IRS deadline so that a timely distribution is made. Please note that there is a 50% tax penalty on the amount of any required minimum distribution not made in a timely manner. Required Minimum Distributions are calculated based on the sum of the Account Value and the actuarial value of any additional living and death benefits from optional riders that you have purchased under the Annuity. As a result, the Required Minimum Distributions may be larger than if the calculation were based on the Account Value only, which may in turn result in an earlier (but not before the required beginning date) distribution of amounts under the Annuity and an increased amount of taxable income distributed to the Annuity Owner, and a reduction of payments under the living and death benefit optional riders.

You can use the Minimum Distribution option to satisfy the Required Minimum Distribution rules for an Annuity without either beginning annuity payments or surrendering the Annuity. We will distribute to you the Required Minimum Distribution amount, less any other partial withdrawals that you made during the year. Such amount will be based on the value of the Annuity as of December 31 of the prior year, but is determined without regard to other Annuities you may own. If a trustee to trustee transfer or direct rollover of the full contract value is requested when there is an active Required Minimum Distribution program running, the Required Minimum Distribution will be removed and sent to the Owner prior to the remaining funds being sent to the transfer institution.

Although the IRS rules determine the required amount to be distributed from your IRA each year, certain payment alternatives are still available to you. If you own more than one IRA, you can choose to satisfy your minimum distribution requirement for each of your IRAs by withdrawing that amount from any of your IRAs. If you inherit more than one IRA or more than one Roth IRA from the same Owner, similar rules apply.

Charitable IRA Distributions.

Certain qualified IRA distributions used for charitable purposes are eligible for an exclusion from gross income, up to $100,000, for otherwise taxable IRA distributions from a traditional or Roth IRA. A qualified charitable distribution is a distribution that is made (1) directly by the IRA trustee to certain qualified charitable organizations and (2) on or after the date the IRA owner attains age 70½. Distributions that are excluded from income under this provision are not taken into account in determining the individual’s deductions, if any, for charitable contributions. Effective 2020, the amount of your qualified charitable distributions that are excluded from income for a tax year is reduced (but not below zero) by the excess of: (1)  the total amount of your IRA deductions allowed for all tax years ending on or after the date you attain age 70½, over (2)  the total amount of reductions for all tax years preceding the current tax year.

The IRS has indicated that an IRA trustee is not responsible for determining whether a distribution to a charity is one that satisfies the requirements of the charitable giving incentive. Consistent with the applicable IRS instructions, we report these distributions as normal IRA distributions on Form 1099-R. Individuals are responsible for reflecting the distributions as charitable IRA distributions on their personal tax returns.

Required Distributions Upon Your Death for a Qualified Annuity

Upon your death under an IRA, Roth IRA, 403(b) or other employer sponsored plan, any remaining interest must be distributed in accordance with federal income tax requirements. The post-death distribution requirements were amended, applicable generally with respect to deaths occurring after

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2019, by the Further Consolidated Appropriations Act of 2020 (which includes the "Setting Every Community Up for Retirement Enhancement" Act (SECURE Act)). The post-death distribution requirements under prior law continue to apply in certain circumstances.

• Prior law. Under prior law, if an employee under an employer sponsored plan or IRA owner dies prior to the required beginning date, the remaining interest must be distributed (1) within 5 years after the death (the “5-year rule”), or (2) over the life of the designated beneficiary, or over a period not extending beyond the life expectancy of the designated beneficiary, provided that such distributions commence within one year after death (the “lifetime payout rule”). If the employee or IRA owner dies on or after the required beginning date (including after the date distributions have commenced in the form of an annuity), the remaining interest must be distributed at least as rapidly as under the method of distribution being used as of the date of death (the “at-least-as-rapidly rule”).

• The new law. Under the new law, if you die after 2019, and you have a designated beneficiary, any remaining interest must be distributed by December 31 ^st of the year that includes the 10 year anniversary of your death, unless the designated beneficiary is an “eligible designated beneficiary” (“EDB”) or some other exception applies. A designated beneficiary is any individual designated as a beneficiary by the employee or IRA owner. An EDB is any designated beneficiary who is (1) your surviving spouse, (2) your minor child, (3) disabled, (4) chronically ill, or (5) an individual not more than 10 years younger than you. An individual’s status as an EDB is determined on the date of your death.

This 10-year post-death distribution period applies regardless of whether you die before your required beginning date, or you die on or after that date (including after distributions have commenced in the form of an annuity). However, if the beneficiary is an EDB and the EDB dies before the entire interest is distributed under this 10-year rule, the remaining interest must be distributed within 10 years after the EDB’s death ( i.e. , a new 10-year distribution period begins).

Instead of taking distributions under the new 10-year rule, an EDB can stretch distributions over life, or over a period not extending beyond life expectancy, provided that such distributions commence within one year of your death, subject to certain special rules. In particular, if the EDB dies before the remaining interest is distributed under this stretch rule, the remaining interest must be distributed within 10 years after the EDB’s death (regardless of whether the remaining distribution period under the stretch rule was more or less than 10 years). In addition, if your minor child is an EDB, the child will cease to be an EDB on the date the child reaches the age of majority, and any remaining interest must be distributed within 10 years after that date (regardless of whether the remaining distribution period under the stretch rule was more or less than 10 years).

The new law applies if you die after 2019, subject to several exceptions. In particular, if you are an employee under a governmental plan, such as a section 403(b) plan of a public school or a governmental 457(b) plan, the new law applies if you die after 2021. In addition, if your plan is maintained pursuant to one or more collective bargaining agreements, the new law generally applies if you die after 2021 (unless the collective bargaining agreements terminate earlier).

It is important to note that under prior law, annuity payments that commenced under a method that satisfied the distribution requirements while the employee or IRA owner was alive could continue to be made under that method after the death of the employee or IRA owner. However, under the new law, if you commence taking distributions in the form of an annuity that can continue after your death, such as in the form of a joint and survivor annuity or an annuity with a guaranteed period of more than 10 years, any distributions after your death that are scheduled to be made beyond the applicable distribution period imposed under the new law might need to be commuted at the end of that period (or otherwise modified after your death if permitted under federal tax law and by Prudential) in order to comply with the new post-death distribution requirements.

The new post-death distribution requirements do not apply if annuity payments that comply with prior law commenced prior to December 20, 2019. Also, even if annuity payments have not commenced prior to December 20, 2019, the new requirements generally do not apply to an immediate annuity contract or a deferred income annuity contract (including a qualifying lifetime annuity contract, or “QLAC”)) purchased prior to that date, if you have made an irrevocable election before that date as to the method and amount of the annuity.

If your beneficiary is not an individual, such as a charity, your estate, or a trust, any remaining interest after your death generally must be distributed under prior law in accordance with the 5-year rule or the at-least-as-rapidly rule, as applicable (but not the lifetime payout rule). However, if your beneficiary is a trust and all the beneficiaries of the trust are individuals, the new law can apply pursuant to special rules that treat the beneficiaries of the trust as designated beneficiaries, including special rules allowing a beneficiary of a trust who is disabled or chronically ill to stretch the distribution of their interest over their life or life expectancy in some cases. You may wish to consult a professional tax advisor about the federal income tax consequences of your beneficiary designations.

In addition, the new post-death distribution requirements generally do not apply if the employee or IRA owner died prior to January 1, 2020. However, if the designated beneficiary of the deceased employee or IRA owner dies after January 1, 2020, any remaining interest must be distributed within 10 year of the designated beneficiary’s death. Hence, this 10-year rule will apply to (1) a contract issued prior to 2020 which continues to be held by a designated beneficiary of an employee or IRA owner who died prior to 2020, and (2) an inherited IRA issued after 2019 to the designated beneficiary of an employee or IRA owner who died prior to 2020.

• Spousal continuation. Under the new law, as under prior law, if your beneficiary is your spouse, your surviving spouse can delay the application of the post-death distribution requirements until after your surviving spouse reaches age 70½ (or age 72, for distributions required to be made after December 31, 2019, with respect to individuals who attain age 70½ after such date) by transferring the remaining interest tax-free to your surviving spouse’s own IRA, or by treating your IRA as your surviving spouse’s own IRA.

The post-death distribution requirements are complex and unclear in numerous respects. In addition, the manner in which these requirements will apply will depend on your particular facts and circumstances. You may wish to consult a professional tax adviser for tax advice as to your particular situation.

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A Beneficiary has the flexibility to take out more each year than mandated under the required minimum distribution rules. Note that in 2014, the U.S. Supreme Court ruled that Inherited IRAs, other than IRAs inherited by the owner’s spouse, do not qualify as retirement assets for purposes of protection under the federal bankruptcy laws.

Until withdrawn, amounts in a Qualified Annuity continue to be tax deferred. Amounts withdrawn each year, including amounts that are required to be withdrawn under the required minimum distribution rules, are subject to tax. You may wish to consult a professional tax adviser for tax advice as to your particular situation.

For a Roth IRA, if death occurs before the entire interest is distributed, the death benefit must be distributed under the same rules applied to IRAs where death occurs before the date required minimum distributions must begin under the Code.

10 % Additional Tax for Early Withdrawals from a Qualified Annuity You may owe a 10% additional tax on the taxable part of distributions received from an IRA, SEP, Roth IRA, TDA or qualified retirement plan before you attain age 59½. Amounts are not subject to this additional tax if:

• the amount is paid on or after you reach age 59½ or die;

• the amount received is attributable to your becoming disabled; or

• generally the amount paid or received is in the form of substantially equal payments (as defined in the Code) not less frequently than annually. (Please note that substantially equal payments must continue until the later of reaching age 59½ or five years. Modification of payments or additional contributions to the Annuity during that time period will result in retroactive application of the 10% additional tax.)

Other exceptions to this tax may apply. You should consult your tax adviser for further details.

Withholding

For 403(b) Tax Deferred annuities, we will withhold federal income tax at the rate of 20% for any eligible rollover distribution paid by us to or for a plan participant, unless such distribution is “directly” rolled over into another qualified plan, IRA (including the IRA variations described above), SEP, governmental 457(b) plan or TDA. An eligible rollover distribution is defined under the tax law as a distribution from an employer plan under 401(a), a TDA or a governmental 457(b) plan, excluding any distribution that is part of a series of substantially equal payments (at least annually) made over the life expectancy of the employee or the joint life expectancies of the employee and his designated Beneficiary, any distribution made for a specified period of 10 years or more, any distribution that is a required minimum distribution and any hardship distribution. Regulations also specify certain other items which are not considered eligible rollover distributions. We will not withhold for payments made from trustee owned Annuities or for payments under a 457 plan. For all other distributions, unless you elect otherwise, we will withhold federal income tax from the taxable portion of such distribution at an appropriate percentage. The rate of withholding on annuity payments where no mandatory withholding is required is determined on the basis of the withholding certificate that you file with us. If you do not file a certificate, we will automatically withhold federal taxes on the following basis:

• For any annuity payments not subject to mandatory withholding, you will have taxes withheld by us as if you are a married individual, with 3 exemptions; and

• For all other distributions, we will withhold at a 10% rate.

If no U.S. taxpayer identification number is provided, no election out of withholding will be allowed, and we will automatically withhold using the default withholding rules. We will provide you with forms and instructions concerning the right to elect that no amount be withheld from payments in the ordinary course. However, you should know that, in any event, you are liable for payment of federal income taxes on the taxable portion of the distributions, and you should consult with your tax adviser to find out more information on your potential liability if you fail to pay such taxes. If you are a U.S. person (which includes a resident alien), and you request a payment be delivered outside the U.S., we are required to withhold income tax. There may be additional state income tax withholding requirements.

ERISA Requirements

ERISA (the “Employee Retirement Income Security Act of 1974”) and the Code prevent a fiduciary and other “parties in interest” with respect to a plan (and, for these purposes, an IRA would also constitute a “plan”) from receiving any benefit from any party dealing with the plan, as a result of the sale of the Annuity. Administrative exemptions under ERISA generally permit the sale of insurance/annuity products to plans, provided that certain information is disclosed to the person purchasing the Annuity. This information has to do primarily with the fees, charges, discounts and other costs related to the Annuity, as well as any commissions paid to any agent selling the Annuity. Information about any applicable fees, charges, discounts, penalties or adjustments may be found in the applicable sections of this prospectus. Information about sales representatives and commissions may be found in the sections of this prospectus addressing distribution of the Annuities.

Other relevant information required by the exemptions is contained in the contract and accompanying documentation.

Please consult with your tax adviser if you have any questions about ERISA and these disclosure requirements.

Spousal Consent Rules for Retirement Plans - Qualified Annuities

If you are married at the time your payments commence, you may be required by federal law to choose an income option that provides survivor annuity income to your spouse, unless your spouse waives that right. Similarly, if you are married at the time of your death, federal law may require all or a portion of the Death Benefit to be paid to your spouse, even if you designated someone else as your Beneficiary. A brief explanation of the applicable rules follows. For more information, consult the terms of your retirement arrangement.

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Defined Benefit Plans and Money Purchase Pension Plans . If you are married at the time your payments commence, federal law requires that benefits be paid to you in the form of a “qualified joint and survivor annuity” (QJSA), unless you and your spouse waive that right, in writing. Generally, this means that you will receive a reduced payment during your life and, upon your death, your spouse will receive at least one-half of what you were receiving for life. You may elect to receive another income option if your spouse consents to the election and waives his or her right to receive the QJSA. If your spouse consents to the alternative form of payment, your spouse may not receive any benefits from the plan upon your death. Federal law also requires that the plan pay a Death Benefit to your spouse if you are married and die before you begin receiving your benefit. This benefit must be available in the form of an Annuity for your spouse’s lifetime and is called a “qualified pre-retirement survivor annuity” (QPSA). If the plan pays Death Benefits to other Beneficiaries, you may elect to have a Beneficiary other than your spouse receive the Death Benefit, but only if your spouse consents to the election and waives his or her right to receive the QPSA. If your spouse consents to the alternate Beneficiary, your spouse will receive no benefits from the plan upon your death. Any QPSA waiver prior to your attaining age 35 will become null and void on the first day of the calendar year in which you attain age 35, if still employed.

Defined Contribution Plans (including 401(k) Plans and ERISA 403(b) Annuities). Spousal consent to a distribution is generally not required. Upon your death, your spouse will receive the entire Death Benefit, even if you designated someone else as your Beneficiary, unless your spouse consents in writing to waive this right. Also, if you are married and elect an Annuity as a periodic income option, federal law requires that you receive a QJSA (as described above), unless you and your spouse consent to waive this right.

IRAs, non-ERISA 403(b) Annuities, and 457 Plans. Spousal consent to a distribution usually is not required. Upon your death, any Death Benefit will be paid to your designated Beneficiary.

ADDITIONAL CONSIDERATIONS

Reporting and Withholding for Escheated Amounts

In 2018, the Internal Revenue Service issued Revenue Ruling 2018-17, which provides that an amount transferred from an IRA to a state’s unclaimed property fund is subject to federal withholding at the time of transfer. The amount transferred is also subject to federal tax reporting. Consistent with this Ruling, beginning in 2019, we will withhold federal and state income taxes and report to the applicable Owner or Beneficiary as required by law when amounts are transferred to a state’s unclaimed property fund.

Gifts and Generation-skipping Transfers

If you transfer your Annuity to another person for less than adequate consideration, there may be gift tax consequences in addition to income tax consequences. Also, if you transfer your Annuity to a person two or more generations younger than you (such as a grandchild or grandniece) or to a person that is more than 37½ years younger than you, there may be generation-skipping transfer tax consequences.

Same Sex Marriages, Civil Unions and Domestic Partnerships

U.S. Treasury Department regulations provide that for federal tax purposes, the term “spouse” does not include individuals (whether of the opposite sex or the same sex) who have entered into a registered domestic partnership, civil union, or other similar formal relationship that is not denominated as a marriage under the laws of the state where the relationship was entered into, regardless of domicile. As a result, if a Beneficiary of a deceased Owner and the Owner were parties to such a relationship, the Beneficiary will be required by federal tax law to take distributions from the Contract in the manner applicable to non-spouse Beneficiaries and will not be able to continue the Contract.

Please consult with your tax or legal adviser before electing the Spousal Benefit for a civil union partner or domestic partner.

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OTHER INFORMATION

PRUCO LIFE OF NEW JERSEY AND THE SEPARATE ACCOUNT

Pruco Life of New Jersey.Pruco Life Insurance Company of New Jersey (Pruco Life of New Jersey) is a stock life insurance company organized in 1982 under the laws of the State of New Jersey. It is licensed to sell life insurance and annuities in New Jersey and New York, and accordingly is subject to the laws of each of those states. Pruco Life of New Jersey is an indirect wholly-owned subsidiary of The Prudential Insurance Company of America (Prudential), a New Jersey stock life insurance company that has been doing business since 1875. Prudential is a direct wholly-owned subsidiary of Prudential Financial, Inc. (Prudential Financial), a New Jersey insurance holding company. No company other than Pruco Life of New Jersey has any legal responsibility to pay amounts that it owes under its annuity contracts. Among other things, this means that where you participate in the Defined Income Benefit and the value of that benefit exceeds your current Account Value, you would rely solely on the ability of Pruco Life of New Jersey to make payments under the benefit out of its own assets. As Pruco Life of New Jersey’s ultimate parent, Prudential Financial, however, exercises significant influence over the operations and capital structure of Pruco Life of New Jersey.

Pruco Life of New Jersey incorporates by reference into the prospectus its latest annual report on Form 10-K filed pursuant to Section 13(a) or Section 15(d) of Securities Exchange Act of 1934 (Exchange Act) since the end of the fiscal year covered by its latest annual report. In addition, all documents subsequently filed by Pruco Life of New Jersey pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act also are incorporated into the prospectus by reference.

Pruco Life of New Jersey will provide to each person, including any beneficial Owner, to whom a prospectus is delivered, a copy of any or all of the information that has been incorporated by reference into the prospectus but not delivered with the prospectus. Such information will be provided upon written or oral request at no cost to the requester by writing to Pruco Life Insurance Company of New Jersey, One Corporate Drive, Shelton, CT 06484 or by calling 800-752-6342. Pruco Life of New Jersey files periodic reports as required under the Exchange Act. The SEC maintains an Internet site that contains reports, proxy, and information statements, and other information regarding issuers that file electronically with the SEC (see www.sec.gov). Our internet address is www.prudentialannuities.com.

Pursuant to the delivery obligations under Section 5 of the Securities Act of 1933 and Rule 159 thereunder, Pruco Life of New Jersey delivers this prospectus to current contract owners that reside outside of the United States. In addition, we may not market or offer benefits, features or enhancements to prospective or current contract owners while outside of the United States.

Service Providers

Pruco Life of New Jersey conducts the bulk of its operations through staff employed by it or by affiliated companies within the Prudential Financial family. Certain discrete functions have been delegated to non-affiliates that could be deemed “service providers” under the Investment Company Act of 1940. The entities engaged by Pruco Life of New Jersey may change over time. As of December 31, 2019 , non-affiliated entities that could be deemed service providers to Pruco Life of New Jersey and/or an affiliated insurer within the Pruco Life of New Jersey business unit consisted of those set forth in the table below.

Name of Service Provider	Services Provided	Address
Broadridge Investor Communication	Proxy services and regulatory mailings	51 Mercedes Way, Edgewood, NY 11717
EDM Americas	Records management and administration of annuity contracts	301 Fayetteville Street, Suite 1500, Raleigh, NC 27601
EXL Service Holdings, Inc	Administration of annuity contracts	350 Park Avenue, 10th Floor, New York, NY 10022
National Financial Services	Clearing firm for Broker Dealers	82 Devonshire Street Boston, MA 02109
Open Text, Inc	Fax Services	100 Tri-State International Parkway, Lincolnshire, IL 60069
PERSHING LLC	Clearing firm for Broker Dealers	One Pershing Plaza, Jersey City, NJ 07399
The Depository Trust Clearinghouse Corporation	Clearing and settlement services for Distributors and Carriers.	55 Water Street, 26th Floor, New York, NY 10041
Thomson Reuters	Tax reporting services	3 Times Square New York, NY 10036
Universal Wilde	Composition, printing, and mailing of contracts and benefit documents	26 Dartmouth Street, Westwood, MA 02090
Venio Systems LLC	Claim related services	4031 University Drive, Suite 100, Fairfax, VA 22030

The Separate Account.We have established a Separate Account, the Pruco Life of New Jersey Flexible Premium Variable Annuity Account (Separate Account), to hold the assets that are associated with the Annuities. The Separate Account was established under New Jersey law on May 20, 1996, and is registered with the SEC under the Investment Company Act of 1940 as a unit investment trust, which is a type of investment company. The assets of the Separate Account are held in the name of Pruco Life of New Jersey and legally belong to us. Pruco Life of New Jersey segregates the Separate Account assets from all of its other assets. Thus, Separate Account assets that are held in support of the contracts are not chargeable with liabilities arising out of any other business we may conduct. Income, gains, and losses, whether or not realized, for assets allocated to the Separate Account are, in accordance with the Annuity, credited to or charged against the Separate Account without regard to other income, gains, or losses of Pruco Life of New Jersey. The obligations under the Annuity are those of Pruco Life of New Jersey, which is the issuer of the Annuity and the depositor of the Separate Account. More detailed information about Pruco Life of New Jersey, including its audited consolidated financial statements, is provided in the Statement of Additional Information.

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In addition to rights that we specifically reserve elsewhere in this prospectus, we reserve the right to perform any or all of the following:

▪ offer new Sub-accounts, eliminate Sub-accounts, substitute Sub-accounts or combine Sub-accounts;

▪ close Sub-accounts to additional Purchase Payments on existing Annuities or close Sub-accounts for Annuities purchased on or after specified dates;

▪ combine the Separate Account with other separate accounts;

▪ deregister the Separate Account under the Investment Company Act of 1940;

▪ manage the Separate Account as a management investment company under the Investment Company Act of 1940 or in any other form permitted by law;

▪ make changes required by any change in the federal securities laws, including, but not limited to, the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, or any other changes to the Securities and Exchange Commission’s interpretation thereof;

▪ establish a provision in the Annuity for federal income taxes if we determine, in our sole discretion, that we will incur a tax as the result of the operation of the Separate Account;

▪ make any changes required by federal or state laws with respect to annuity contracts; and

▪ to the extent dictated by any underlying Portfolio, impose a redemption fee or restrict transfers within any Sub-account.

We will first notify you and receive any necessary SEC and/or state approval before making such a change. If an underlying mutual fund is liquidated, we will ask you to reallocate any amount in the liquidated fund. If you do not reallocate these amounts, we will reallocate such amounts only in accordance with guidance provided by the SEC or its staff (or after obtaining an order from the SEC, if required). We reserve the right to substitute an underlying portfolio, as allowed by applicable law. If we make a fund substitution or change, we may change the Annuity to reflect the substitution or change. We do not control the underlying mutual funds, so we cannot guarantee that any of those funds will always be available. While we can limit your ability to make any additional Purchase Payments to your Annuity, as discussed above in this Prospectus, should we offer more than one Investment Option we may limit your right to make additional Purchase Payments to any one or more of such Investment Options.

The General Account. Our general obligations and any guaranteed benefits under the Annuity are supported by our general account and are subject to our claims paying ability. Assets in the general account are not segregated for the exclusive benefit of any particular contract or obligation. General account assets are also available to our general creditors and for conducting routine business activities, such as the payment of salaries, rent and other ordinary business expenses. The general account is subject to regulation and supervision by the New Jersey Department of Banking and Insurance laws and regulations of all jurisdictions where we are authorized to do business.

Fees and Payments Received by Pruco Life of New Jersey

As detailed below, Pruco Life of New Jersey and our affiliates receive substantial payments from the underlying Portfolios and/or related entities, such as the Portfolios’ advisers and subadvisers. Because these fees and payments are made to Pruco Life of New Jersey and our affiliates, allocations you make to the underlying Portfolios benefit us financially. In selecting Portfolios available under the Annuity, we consider the payments that will be made to us. For more information on factors we consider when selecting the Portfolios under the Annuity, see “Variable Investment Options” under “Investment Options” earlier in this prospectus.

We receive Rule 12b-1 fees which compensate our affiliate, Prudential Annuities Distributors, Inc., for distribution and administrative services (including recordkeeping services and the mailing of prospectuses and reports to Owners invested in the Portfolios). These fees are paid by the underlying Portfolio out of each Portfolio’s assets and are therefore borne by Owners.

We also receive administrative services payments from the advisers of the underlying Portfolios or their affiliates (not the Portfolios), which are referred to as “revenue sharing” payments. The maximum combined 12b-1 fees and revenue sharing payments we receive with respect to a Portfolio are generally equal to an annual rate of 0.55% of the average assets allocated to the Portfolio under the Annuity. We expect to make a profit on these fees and payments and consider them when selecting the Portfolios available under the Annuity.

In addition, an adviser or subadviser of a Portfolio or a distributor of the Annuity (not the Portfolios) may also compensate us by providing reimbursement, defraying the costs of, or paying directly for, among other things, marketing and/or administrative services and/or other services they provide in connection with the Annuity. These services may include, but are not limited to: sponsoring or co-sponsoring various promotional, educational or marketing meetings and seminars attended by distributors, wholesalers, and/or broker dealer firms’ registered representatives, and creating marketing material discussing the Annuity, available options, and underlying Portfolios. The amounts paid depend on the nature of the meetings, the number of meetings attended by the adviser, subadviser, or distributor, the number of participants and attendees at the meetings, the costs expected to be incurred, and the level of the adviser’s, subadviser’s or distributor’s participation. These payments or reimbursements may not be offered by all advisers, subadvisers, or distributors and the amounts of such payments may vary between and among each adviser, subadviser, and distributor depending on their respective participation. We may also consider these payments and reimbursements when selecting the Portfolios available under the Annuity. For the annual period ended December 31, 2019, with regard to the total annual amounts that were paid (or as to which a payment amount was accrued) under the kinds of

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arrangements described in this paragraph, the amounts for any particular adviser, subadviser or distributor ranged from $25,000 to $836,969. These amounts relate to all individual variable annuity contracts issued by Pruco Life of New Jersey or its affiliates, not only the Annuity covered by this prospectus.

In addition to the payments that we receive from underlying Portfolios and/or their affiliates, those same Portfolios and/or their affiliates may make payments to us and/or other insurers within the Prudential Financial group related to the offering of investment options within variable annuities or life insurance offered by different Prudential business units.

Cyber Security Risks:We provide information about cyber security risks associated with this Annuity in the Statement of Additional Information.

LEGAL STRUCTURE OF THE UNDERLYING FUND

The underlying mutual fund is registered as an open-end management investment company under the Investment Company Act of 1940. Shares of the underlying mutual fund Portfolio are sold to Separate Accounts of life insurance companies offering variable annuity and variable life insurance products. The shares may also be sold directly to qualified pension and retirement plans.

Voting Rights

We are the legal owner of the shares of the underlying Portfolios in which the Sub-accounts invest. However, under current SEC rules, you have voting rights in relation to Account Value maintained in the Sub-accounts. If an underlying Portfolio requests a vote of shareholders, we will vote our shares based on instructions received from Owners with Account Value allocated to that Sub-account. Owners have the right to vote an amount equal to the number of shares attributable to their contracts. If we do not receive voting instructions in relation to certain shares, we will vote those shares in the same manner and proportion as the shares for which we have received instructions. This voting procedure is sometimes referred to as “mirror voting” because, as indicated in the immediately preceding sentence, we mirror the votes that are actually cast, rather than decide on our own how to vote. We will also “mirror vote” shares that are owned directly by us or an affiliate (excluding shares held in the separate account of an affiliated insurer). In addition, because all the shares of a given Portfolio held within our Separate Account are legally owned by us, we intend to vote all of such shares when that underlying Portfolio seeks a vote of its shareholders. As such, all such shares will be counted towards whether there is a quorum at the underlying Portfolio’s shareholder meeting and towards the ultimate outcome of the vote. Thus, under “mirror voting”, it is possible that the votes of a small percentage of contract holders who actually vote will determine the ultimate outcome.

We may, if required by state insurance regulations, disregard voting instructions if they would require shares to be voted so as to cause a change in the sub-classification or investment objectives of one or more of the available Variable Investment Options or to approve or disapprove an investment advisory contract for a Portfolio. In addition, we may disregard voting instructions that would require changes in the investment policy or investment adviser of one or more of the Portfolios associated with the available Variable Investment Options, provided that we reasonably disapprove such changes in accordance with applicable federal or state regulations. If we disregard Owner voting instructions, we will advise Owners of our action and the reasons for such action in the next available annual or semi-annual report.

We will furnish those Owners who have Account Value allocated to a Sub-account whose underlying Portfolio has requested a “proxy” vote with proxy materials and the necessary forms to provide us with their voting instructions. Generally, you will be asked to provide instructions for us to vote on matters such as changes in a fundamental investment strategy, adoption of a new investment advisory agreement, or matters relating to the structure of the underlying Portfolio that require a vote of shareholders. We reserve the right to change the voting procedures described above if applicable SEC rules change.

Material Conflicts

In the future, it may become disadvantageous for Separate Accounts of variable life insurance and variable annuity contracts to invest in the same underlying Portfolios. Neither the companies that invest in the Portfolios nor the Portfolios currently foresee any such disadvantage. The Board of Directors for each Portfolio intends to monitor events in order to identify any material conflict between variable life insurance and variable annuity Contract Owners and to determine what action, if any, should be taken. Material conflicts could result from such things as:

(1) changes in state insurance law;

(2) changes in federal income tax law;

(3) changes in the investment management of any Variable Investment Option; or

(4) differences between voting instructions given by variable life insurance and variable annuity Contract Owners.

Confirmations, Statements, and Reports

We send any statements and reports required by applicable law or regulation to you at your last known address of record. You should therefore give us prompt notice of any address change. We reserve the right, to the extent permitted by law and subject to your prior consent, to provide any prospectus, prospectus supplements, confirmations, statements and reports required by applicable law or regulation to you through our Internet Website at www.prudentialannuities.com or any other electronic means. We generally send a confirmation statement to you each time a financial transaction is made affecting Account Value, such as making additional Purchase Payments, transfers, exchanges or withdrawals. We also send quarterly statements detailing the activity affecting your Annuity during the calendar quarter, if there have been transactions during the quarter. We may confirm regularly scheduled transactions, including, but not limited to the Annual Maintenance Fee, systematic withdrawals (including 72(t)/72(q) payments and Required Minimum Distributions), in quarterly statements instead of confirming them immediately. You should review the information in these statements carefully.

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You may request additional reports or copies of reports previously sent. We reserve the right to charge $50 for each such additional or previously sent report, but may waive that charge in the future. We will also send an annual report and a semi-annual report containing applicable financial statements for the Portfolio to Owners or, with your prior consent, make such documents available electronically through our Internet Website or other electronic means. Beginning on January 1, 2021, paper copies of the annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from us. Instead, the reports will be made available on our website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

DISTRIBUTION OF ANNUITIES OFFERED BY PRUCO LIFE OF NEW JERSEY

Prudential Annuities Distributors, Inc. (PAD), a wholly-owned subsidiary of Prudential Annuities, Inc., is the distributor and principal underwriter of the Annuities offered through this prospectus. PAD acts as the distributor of a number of annuity and life insurance products and the AST Portfolios. PAD’s principal business address is One Corporate Drive, Shelton, Connecticut 06484. PAD is registered as a broker/dealer under the Securities Exchange Act of 1934 (Exchange Act), and is a member of the Financial Industry Regulatory Authority (FINRA). Each Annuity is offered on a continuous basis. PAD enters into distribution agreements with both affiliated and unaffiliated broker-dealers who are registered under the Exchange Act (collectively, “Firms”). The affiliated broker/dealer, Pruco Securities, LLC is an indirect wholly-owned subsidiary of Prudential Financial that sells variable annuity and variable life insurance (among other products) through its registered representatives. Applications for each Annuity are solicited by registered representatives of the Firms. PAD utilizes a network of its own registered representatives to wholesale the Annuities to Firms. Because the Annuities offered through this prospectus are insurance products as well as securities, all registered representatives who sell the Annuities are also appointed insurance agents of Pruco Life of New Jersey.

In connection with the sale and servicing of the Annuity, Firms may receive cash compensation and/or non-cash compensation. Cash compensation includes discounts, concession, fees, service fees, commissions, asset based sales charges, loans, overrides, or any cash employee benefit received in connection with the sale and distribution of variable contracts. Non-cash compensation includes any form of compensation received in connection with the sale and distribution of variable contracts that is not cash compensation, including but not limited to merchandise, gifts, travel expenses, meals and lodging.

Under the selling agreements, cash compensation in the form of commissions is paid to Firms on sales of the Annuity according to one or more schedules. The selling registered representative will receive all or a portion of the cash compensation, depending on the practice of his or her Firm. Commissions are generally based on a percentage of Purchase Payments made, up to a maximum of 5%. Alternative compensation schedules are available that generally provide a lower initial commission plus ongoing quarterly compensation based on all or a portion of Account Value. We may also provide cash compensation to the distributing Firm for providing ongoing service to you in relation to the Annuity. These payments may be made in the form of percentage payments based upon “Assets under Management” or “AUM,” (total assets), subject to certain criteria in certain Pruco Life of New Jersey products. These payments may also be made in the form of percentage payments based upon the total amount of money received as Purchase Payments under Pruco Life of New Jersey annuity products sold through the Firm.

In addition, in an effort to promote the sale of our products (which may include the placement of Pruco Life of New Jersey and/or the Annuity on a preferred or recommended company or product list and/or access to the Firm's registered representatives), we, or PAD, may enter into non-cash compensation arrangements with certain Firms with respect to certain or all registered representatives of such Firms under which such Firms may receive fixed payments or reimbursement. These types of fixed payments are made directly to or in sponsorship of the Firm and may include, but are not limited to payment for: training of sales personnel; marketing and/or administrative services and/or other services they provide to us or our affiliates; educating customers of the firm on the Annuity's features; conducting due diligence and analysis; providing office access, operations, systems and other support; holding seminars intended to educate registered representatives and make them more knowledgeable about the Annuities; conferences (national, regional and top producer); sponsorships; speaker fees; promotional items; a dedicated marketing coordinator; priority sales desk support; expedited marketing compliance approval and preferred programs to PAD; and reimbursements to Firms for marketing activities or other services provided by third-party vendors to the Firms and/or their registered representatives. To the extent permitted by FINRA rules and other applicable laws and regulations, we or PAD may also pay or allow other promotional incentives or payments in other forms of non-cash compensation (e.g., gifts, occasional meals and entertainment, sponsorship of due diligence events). Under certain circumstances, Portfolio advisers/subadvisers or other organizations with which we do business (“Entities”) may also receive incidental non-cash compensation, such as meals and nominal gifts. The amount of this non-cash compensation varies widely because some may encompass only a single event, such as a conference, and others have a much broader scope.

Cash and/or non-cash compensation may not be offered to all Firms and Entities and the terms of such compensation may differ between Firms and Entities. In addition, we or our affiliates may provide such compensation, payments and/or incentives to Firms or Entities arising out of the marketing, sale and/or servicing of variable annuities or life insurance offered by different Prudential business units.

The lists below includes the names of the Firms and Entities that we are aware (as of December 31, 2019) received compensation with respect to our annuity business generally during 2019 (or as to which a payment amount was accrued during 2019). The Firms and Entities listed include those receiving non-cash and/or cash compensation (as indicated below) in connection with marketing of products issued by Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey. Your registered representative can provide you with more information about the compensation arrangements that apply upon request. Each of these Annuities also is distributed by other selling Firms that previously were appointed only with our affiliate Prudential Annuities Life Assurance Corporation (“PALAC”). Such other selling Firms may have received compensation similar to the types discussed above with respect to their sale of PALAC annuities. In addition, such other selling Firms may, on a going forward basis, receive substantial

47

compensation that is not reflected in this 2019 retrospective depiction. During 2019, non-cash compensation received by Firms and Entities ranged from $1.00 to $433,912.73. During 2019, cash compensation received by Firms ranged from $1.10 to $18,272,777.70.

All of the Firms and Entities listed below received non-cash compensation during 2019. In addition, Firms in bold also received cash compensation during 2019.

1st Global Capital Corp.	FSC Securities Corp.	People's Securities
Acorn Financial Corporation	Garden State Securities, Inc.	Pinnancle Investments, LLC
Advisor Group	Geneos Wealth Management, Inc.	PlanMember Securities Corp.
Aegon Transamerica	Goldman Sachs & Co.	PNC Investments, LLC
ALHA	Gradient Securities, LLC	Presidential Brokerage
Allianz	Guardian	Principal Financial Services, Inc.
Allen & Company of Florida, Inc.	GWN Securities, Inc.	ProEquities
Allstate Financial Srvcs, LLC	H. Beck, Inc.	Prospera Financial Services, Inc.
AMERICAN PORTFOLIO FIN SV CS INC	H.D. Vest Investment	Prudential Annuities
Ameritas Investment Corp.	Hantz Financial Services,Inc.	Purshe Kaplan Sterling Investments
AON	Harbour Investment, Inc.	Raymond James Financial Svcs
AQR Capital Management	Hornor, Townsend & Kent, Inc.	RBC CAPITAL MARKETS CORPORATION
Arete Wealth Management	HSBC	RNR Securities, L.L.C.
AXA Advisors, LLC	Independent Financial Grp, LLC	Robert W. Baird & Co., Inc.
BBVA Securities, Inc.	Infinex Financial Group	Royal Alliance Associates
Ballew Investments	Investacorp	SAGEPOINT FINANCIAL, INC.
BB&T Investment Services, Inc.	J.J.B. Hilliard Lyons, Inc.	Scott & Stringfellow
BCG Securities, Inc.	J.P. Morgan	Securian Financial Svcs, Inc.
Berthel Fisher & Company	J.W. Cole Financial, Inc.	Securities America, Inc.
BFT Financial Group, LLC	Janney Montgomery Scott, LLC.	Securities Service Network
BlackRock Financial Management Inc.	Jennison Associates, LLC	Sigma Financial Corporation
Cadaret, Grant & Co., Inc.	Kestra Financial, Inc.	SA Stone Wealth Management
Calton & Associates, Inc	KEY INVESTMENT SERVICES LLC	Stifel Nicolaus & Co.
Cambridge Investment Research, Inc.	KMS Financial Services, Inc.	STRATEGIC FIN ALLIANCE INC
CAPE SECURITIES, INC.	Kovack Securities, Inc.	Sunbelt Securities, Inc.
Capital Analysts	Legg Mason	SunTrust Investment Services, Inc.
Capital Financial Services	Lincoln Financial Advisors	SWBC Investment Services
Capital Investment Group, Inc.	Lincoln Financial Securities Corporation	T. Rowe Price Group, Inc.
Cary Street Partners	Lincoln Investment Planning	TFS Securities, Inc.
Centaurus Financial, Inc.	Lion Street	The Ayco Company, LP.
Cetera Advisor Network LLC	LPL Financial Corporation	The Investment Center
CFD Investments, Inc.	M&T Securities	The O.N. Equity Sales Co.
Chesapeake Brokerage, LLC.	M Holdings Securities, Inc	The Prudential Insurance Company of America
Citigroup Global Markets Inc.	Merrill Lynch, P,F,S	TransAmerica Financial Advisors, Inc.
Citizens Securities, Inc.	Mercer Allied Company L.P.	Triad Advisors, Inc.
COMERICA SECURITIES, INC.	MML Investors Services, Inc.	UBS Financial Services, Inc.
Commonwealth Financial Network	Money Concepts Capital Corp.	Umpqua Investments
Comprehensive Asset Management	Morgan Stanley Smith Barney	United Planners Fin. Serv.
Crown Capital Securities, L.P.	Mutual of Omaha Bank	US Bank
Crump	National Securities Corp.	VOYA Financial Advisors
CUNA Brokerage Svcs, Inc.	New York Life Insurance Company	WADDELL & REED INC.
CUSO Financial Services, L.P.	Newbridge Securities Corp.	Wellington Asset Mgt.
David Lerner and Associates	Next Financial Group, Inc.	Wells Fargo Advisors LLC
Edward Jones & Co.	North Ridge Securities Corp.	WELLS FARGO ADVISORS LLC - WEALTH
Equity Services, Inc.	OneAmerica Securities, Inc.	Wells Fargo Investments LLC
Fidelity Investments	OPPENHEIMER & CO, INC.	Woodbury Financial Services
FTB Advisors, Inc.	Packerland Brokerage Svcs,Inc	World Equity Group, Inc.
Fortune Financial Services, Inc.	Park Avenue Securities, LLC
Founders Financial Securities, LLC	Parkland Securities

The Firms listed below received cash compensation during 2019 but did not receive any non-cash compensation.

48

ASSOCIATED SECURITIES CORP    

BFT Financial Group, LLC

WATERSTONE FINANCIAL GROUP INC

Wells Fargo Investments LLC

You should note that Firms and individual registered representatives and branch managers with some Firms participating in one of these compensation arrangements might receive greater compensation for selling the Annuities than for selling a different annuity that is not eligible for these compensation arrangements. While compensation is generally taken into account as an expense in considering the charges applicable to an annuity product, any such compensation will be paid by us or PAD and will not result in any additional charge to you or to the Separate Account. Cash and non-cash compensation varies by annuity product, and such differing compensation could be a factor in which annuity a financial professional recommends to you. Your registered representative can provide you with more information about the compensation arrangements that apply upon request.

FINANCIAL STATEMENTS

The financial statements of the Separate Account and Pruco Life of New Jersey are included in the Statement of Additional Information.

INDEMNIFICATION

Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the “Securities Act”) may be permitted to directors, officers or persons controlling the registrant pursuant to the foregoing provisions, the registrant has been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

LEGAL PROCEEDINGS

Litigation and Regulatory Matters

Pruco Life of New Jersey is subject to legal and regulatory actions in the ordinary course of our business. Pending legal and regulatory actions include proceedings specific to Pruco Life of New Jersey and proceedings generally applicable to business practices in the industry in which we operate. Pruco Life of New Jersey is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. Pruco Life of New Jersey is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, Pruco Life of New Jersey, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus.

Pruco Life of New Jersey’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. In some of Pruco Life of New Jersey’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. It is possible that Pruco Life of New Jersey’s results of operations or cash flow in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flow for such period. In light of the unpredictability of Pruco Life of New Jersey’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on Pruco Life of New Jersey’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on: the Separate Account; the ability of PAD to perform its contract with the Separate Account; or Pruco Life of New Jersey's ability to meet its obligations under the Contracts.

CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION

The following are the contents of the Statement of Additional Information:

▪ Company

▪ Experts

▪ Principal Underwriter

▪ Payments Made to Promote Sale of Our Products

▪ Cyber Security Risks

▪ Determination of Accumulation Unit Values

▪ Historical Income Growth Rates and Income Percentages

▪ Financial Statements

HOW TO CONTACT US

Please communicate with us using the telephone number and addresses below for the purposes described. Failure to send mail to the proper address may result in a delay in our receiving and processing your request.

Prudential’s Customer Service Team

49

Call our Customer Service Team at 1-888-PRU-2888 during normal business hours.

Internet

Access information about your Annuity through our website: www.prudentialannuities.com

Correspondence Sent by Regular Mail

Prudential Annuity Service Center

P.O. Box 7960

Philadelphia, PA 19176

Correspondence Sent by Overnight*, Certified or Registered Mail

Prudential Annuity Service Center

2101 Welsh Road

Dresher, PA 19025

*Please note that overnight correspondence sent through the United States Postal Service may be delivered to the P.O. Box listed above, which could delay receipt of your correspondence at our Service Center. Overnight mail sent through other methods (e.g., Federal Express, United Parcel Service) will be delivered to the address listed below.

Correspondence sent by regular mail to our Service Center should be sent to the address shown above. Your correspondence will be picked up at this address and then delivered to our Service Center. Your correspondence is not considered received by us until it is received at our Service Center. Where this prospectus refers to the day when we receive a purchase payment, request, election, notice, transfer or any other transaction request from you, we mean the day on which that item (or the last requirement needed for us to process that item) arrives in complete and proper form at our Service Center or via the appropriate telephone or fax number if the item is a type we accept by those means. There are two main exceptions: if the item arrives at our Service Center (1) on a day that is not a business day, or (2) after the close of a business day, then, in each case, we are deemed to have received that item on the next business day.

You can obtain account information by calling our automated response system and at www.prudentialannuities.com, our Internet Website. Our Customer Service representatives are also available during business hours to provide you with information about your account. You can request certain transactions through our telephone voice response system, our Internet Website or through a customer service representative. You can provide authorization for a third party, including your attorney-in-fact acting pursuant to a power of attorney, to access your account information and perform certain transactions on your account. You will need to complete a form provided by us which identifies those transactions that you wish to authorize via telephonic and electronic means and whether you wish to authorize a third party to perform any such transactions. Please note that unless you tell us otherwise, we deem that all transactions that are directed by your financial professional with respect to your Annuity have been authorized by you. We require that you or your representative provide proper identification before performing transactions over the telephone or through our Internet Website. This may include a Personal Identification Number (PIN) that will be provided to you upon issue of your Annuity or you may establish or change your PIN by calling our automated response system and at www.prudentialannuities.com, our Internet Website. Any third party that you authorize to perform financial transactions on your account will be assigned a PIN for your account.

Transactions requested via telephone are recorded. To the extent permitted by law, we will not be responsible for any claims, loss, liability or expense in connection with a transaction requested by telephone or other electronic means if we acted on such transaction instructions after following reasonable procedures to identify those persons authorized to perform transactions on your Annuity using verification methods which may include a request for your Social Security number, PIN or other form of electronic identification. We may be liable for losses due to unauthorized or fraudulent instructions if we did not follow such procedures.

Pruco Life of New Jersey does not guarantee access to telephonic, facsimile, Internet or any other electronic information or that we will be able to accept transaction instructions via such means at all times. Nor, due to circumstances beyond our control, can we provide any assurances as to the delivery of transaction instructions submitted to us by regular and/or express mail. Regular and/or express mail (if operational) will be the only means by which we will accept transaction instructions when telephonic, facsimile, Internet or any other electronic means are unavailable or delayed. Pruco Life of New Jersey reserves the right to limit, restrict or terminate telephonic, facsimile, Internet or any other electronic transaction privileges at any time.

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APPENDIX A – ACCUMULATION UNIT VALUES

The following tables show the accumulation Unit Values and the number of outstanding units for the variable investment option under the Annuity on the last business day of the periods shown. The Unit Values and number of units outstanding are for Annuities under the Separate Account with the same daily asset charge which may include other annuities offered. This information reflects Sub-Account names as of December 31, 2019. Please refer to the Investment Option section of the prospectus for information on name changes.

A-1

PRUDENTIAL DEFINED INCOME
Pruco Life Insurance Company of New Jersey
Prospectus
ACCUMULATION UNIT VALUES: Basic Death Benefit Only (1.10%)
	Accumulation Unit Value	Accumulation Unit Value	Number of Accumulation Units
Sub-Account	At Beginning of Period	At End of Period	Outstanding at End of Period
AST Multi-Sector Fixed Income Portfolio
02/25/2013 to 12/31/2013	$9.99909	$9.57903	0
01/01/2014 to 12/31/2014	$9.57903	$10.53178	16,384
01/01/2015 to 12/31/2015	$10.53178	$10.09622	46,724
01/01/2016 to 12/31/2016	$10.09622	$10.87675	42,323
01/01/2017 to 12/31/2017	$10.87675	$11.69575	65,835
01/01/2018 to 12/31/2018	$11.69575	$10.91965	58,995
01/01/2019 to 12/31/2019	$10.91965	$12.82043	80,883
*Denotes the start date of these sub-accounts

A-2

PRUDENTIAL DEFINED INCOME
Pruco Life Insurance Company of New Jersey
Prospectus
ACCUMULATION UNIT VALUES: With Defined Income Benefit - Single and Spousal Designated Lives (1.90%)
	Accumulation Unit Value	Accumulation Unit Value	Number of Accumulation Units
Sub-Account	At Beginning of Period	At End of Period	Outstanding at End of Period
AST Multi-Sector Fixed Income Portfolio
02/25/2013 to 12/31/2013	$9.99842	$9.51265	10,227,971
01/01/2014 to 12/31/2014	$9.51265	$10.37423	34,107,708
01/01/2015 to 12/31/2015	$10.37423	$9.86464	60,372,540
01/01/2016 to 12/31/2016	$9.86464	$10.54150	96,475,069
01/01/2017 to 12/31/2017	$10.54150	$11.24396	113,884,239
01/01/2018 to 12/31/2018	$11.24396	$10.41238	137,880,999
01/01/2019 to 12/31/2019	$10.41238	$12.12604	174,462,149
*Denotes the start date of these sub-accounts

A-3

APPENDIX B – DEFINED INCOME BENEFIT SAMPLE CALCULATIONS

The initial Guaranteed Income Amount (GIA) is determined on the Issue Date. It is determined by applying the applicable Income Percentage to the Account Value on the Issue Date. Additional Purchase Payments will increase the GIA by applying the amount of the Purchase Payment to the Income Percentage (based on the attained age of the youngest Designated Life) on the date the Purchase Payment is allocated to your Annuity.

For the applicable Income Percentage rates associated with any additional Purchase Payments made after the Issue Date, please see the rates disclosed in the applicable Rate Sheet Prospectus Supplement, or contact us or your financial professional. You may make additional Purchase Payments to your Annuity at any time within the first Annuity Year, however at any time during this year, with prior notice to you, we may limit your right to add additional Purchase Payments.

The following examples are purely hypothetical and are for illustrative purposes only. They are intended to provide examples of how we would calculate the Guaranteed Income Amount based on the Income Percentages and Income Growth Rate provided in the prospectus or a Rate Sheet Prospectus Supplement. They also assume that the application was signed, received, and funded within the parameters disclosed in the prospectus or on the Rate Sheet Prospectus Supplement. The hypothetical examples are also designed to show how the Rate Sheet Prospectus Supplement may change from month to month for newly issued Annuities. Please note that once your Annuity is issued, the assigned rates will not change. Please also note, your GIA would be different than the examples shown below depending on the Income Percentage and Income Growth Rate effective at the time you sign your application, your age at the time of the initial Purchase Payment is applied, the amount of your initial Purchase Payment, and whether you have elected the single or spousal version.

Hypothetical Rate Sheet Prospectus Supplement Examples:

Rate Sheet Prospectus Supplement effective between June 1 and June 30

Attained Age	Income Percentage	Income Growth Rate
60	4.50%	5.00% (for all ages)
61	4.60%
62	4.70%
63	4.80%
64	4.90%
65	5.00%

Scenario 1, calculating the GIA based on a single Purchase Payment:

Application Signed Date: June 24

Issue Date: July 5 of the same calendar year in which the application was signed

Purchase Payment Received: $100,000

Age: 62

The Income Percentages and Income Growth Rate are set based on the rates effective between June 1 and June 30. As a result, the initial Income Percentage will be 4.70%, and the Income Growth Rate assigned to the Annuity will be 5.00%. The initial Guaranteed Income Amount is $4,700, which is determined by multiplying the Account Value on the Issue Date ($100,000) by the applicable Income Percentage (4.70%).

Rate Sheet Prospectus Supplement effective between July 1 and July 31

Attained Age	Income Percentage	Income Growth Rate
60	4.70%	5.50% (for all ages)
61	4.80%
62	4.90%
63	5.00%
64	5.10%
65	5.20%

Scenario 2, calculating the GIA based on a single Purchase Payment, and one additional Purchase Payment:

Application Signed Date: July 15

Issue Date: July 17 of the same calendar year in which the application was signed

B-1

Purchase Payments Received:

▪ $100,000 on the Issue Date

▪ Additional Purchase Payment of $10,000 on November 17 of the same calendar year

Age on the Issue Date: 62

The Income Percentages and Income Growth Rate are set based on the rates effective between July 1 and July 31. As a result, the initial Income Percentage will be 4.90%, and the Income Growth Rate assigned to the annuity will be 5.50%.

The initial Guaranteed Income Amount will be $4,900, which is determined by multiplying Account Value on the Issue Date ($100,000) by the Income Percentage (4.90%).

When the additional Purchase Payment of $10,000 is deposited exactly four months later, the Designated Life is now age 63. The increase to the GIA will continue to be based on the Rate Sheet Prospectus Supplement effective between July 1 and July 31. In this scenario, the current GIA would be increased by $500 since the Income Percentage assigned to the $10,000 additional Purchase Payment was 5% based on the attained age of 63.

To calculate the new GIA for the Annuity after the additional Purchase Payment, we would first take the current GIA of $4,989.21 (the initial $4,900 GIA that has increased by 5.5% Income Growth Rate for four months). We would then add the $500 GIA increase that was applicable to the additional Purchase Payment, resulting in a new total GIA of $5,489.21.

Scenario 3, calculating the GIA based on a single Purchase Payment, where the Designated Life has attained a new age between the date the application was signed and subsequently issued:

Application Signed Date: July 1

Issue Date: July 12 of the same calendar year in which the application was signed

Purchase Payment(s) Received: $100,000

Age: 64 on the application signed date, turning age 65 prior to the Issue Date

The Income Percentage and Income Growth Rate are set based on the rates effective between July 1 and July 31. As a result, the initial Income Percentage will be 5.20% and the Income Growth Rate assigned to the annuity will be 5.50%.

The initial Guaranteed Income Amount will be $5,200, which is determined by multiplying the Account Value on the Issue Date ($100,000) by the Income Percentage (5.20%).

Scenario 4, your application was either received or funded beyond the time frames disclosed on your Rate Sheet Prospectus Supplement:The Annuity would not be issued as the application was either not received in Good Order or the Annuity was not funded within the time frames disclosed on your Rate Sheet Prospectus Supplement. As a result, you would need to submit additional paperwork if you still wish to purchase the Annuity. Your Annuity would be eligible to receive the then current rates that are being offered on the Rate Sheet Prospectus Supplement (as of the date you signed the form), which could be higher or lower than the rates on the date you had first signed the Annuity application.

B-2

PLEASE SEND ME A STATEMENT OF ADDITIONAL INFORMATION THAT CONTAINS FURTHER DETAILS ABOUT THE PRUCO LIFE OF NEW JERSEY PRUDENTIAL DEFINED INCOME (PDI) VARIABLE ANNUITY SERIES DESCRIBED IN PROSPECTUS (APRIL 27, 2020)
	(print your name)
	(address)
	(city/state/zip code)

Please see the section of this prospectus entitled “How To Contact Us” for where to send your request for a Statement of Additional Information

PDINYPROS

The Prudential Insurance Company of America

751 Broad Street

Newark, NJ 07102-3777

PART B
STATEMENT OF ADDITIONAL INFORMATION

April 27, 2020

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT
VARIABLE ANNUITY CONTRACTS

The Prudential Defined Income Variable Annuity contracts (the "Annuities" or the "Annuity") are individual variable annuity contracts issued by Pruco Life Insurance Company of New Jersey ("Pruco Life of New Jersey"), a stock life insurance company that is an indirect wholly-owned subsidiary of The Prudential Insurance Company of America ("Prudential") and is funded through the Pruco Life of New Jersey Flexible Premium Variable Annuity Account (the "Account"). The Annuity is purchased by making an initial purchase payment of $25,000 or more. Subject to certain restrictions, you can make additional purchase payments of not less than $100 at any time during the accumulation phase.

This Statement of Additional Information is not a prospectus and should be read in conjunction with the Prudential Defined Income Variable Annuity prospectus dated April 27, 2020. To obtain a copy of the prospectus, without charge, you can write to the Prudential Annuity Service Center, P.O. Box 7960, Philadelphia, Pennsylvania 19176, or contact us by telephone at (888) PRU-2888.

TABLE OF CONTENTS

		PAGE
Company		2
Experts		2
Principal Underwriter		2
Payments Made to Promote Sale of Our Products		2
Cyber Security Risk		2
Determination of Accumulation Unit Values		3
Historical Income Growth Rates and Income Percentages		5
Separate Account Financial Information		A1
Company Financial Information		B1
Pruco Life Insurance Company of New Jersey 213 Washington Street Newark, NY 07102-2992	Prudential Annuity Service Center P.O. Box 7960 Philadelphia, PA 19176 Newark, NY 07102-2992 Telephone: (888) Pru-2888

COMPANY

Pruco Life Insurance Company of New Jersey ("Pruco Life of New Jersey") is a stock life insurance company organized in 1982 under the laws of the State of New Jersey. Pruco Life of New Jersey is licensed to sell life insurance and annuities in the states of New Jersey and New York.

Pruco Life of New Jersey is a wholly-owned subsidiary of Pruco Life Insurance Company, which is a wholly-owned subsidiary of The Prudential Insurance Company of America ("Prudential"), a stock life insurance company founded in 1875 under the laws of the State of New Jersey. Prudential is a direct wholly-owned subsidiary of Prudential Financial, Inc. ("Prudential Financial"), a New Jersey insurance holding company.

EXPERTS

The financial statements of Pruco Life Insurance Company of New Jersey as of December 31, 2019 and 2018, and for each of the three years in the period ended December 31, 2019 and the financial statements of Pruco Life of New Jersey Flexible Premium Variable Annuity Account as of the dates presented and for each of the periods presented included in this Statement of Additional Information have been so included in reliance on the reports of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

PRINCIPAL UNDERWRITER

Prudential Annuities Distributors, Inc. ("PAD"), an indirect wholly-owned subsidiary of Prudential Financial, offers each Annuity on a continuous basis in those states in which annuities may be lawfully sold. It may offer the Annuities through licensed insurance producers, or through appropriately registered affiliates of Prudential, provided clearances to do so are obtained in any jurisdiction where such clearances may be necessary.

With respect to all individual annuities issued by Pruco Life of New Jersey, PAD received commissions of $77,870,844.85, $73,232,387.43 and $62,132,654.93 in 2019, 2018, and 2017, respectively. PAD retained none of those commissions.

As discussed in the prospectus, Pruco Life of New Jersey pays commissions to broker/dealers that sell the Annuities according to one or more schedules, and also may pay non-cash compensation. In addition, Pruco Life of New Jersey may pay trail commissions to selling firms to pay its registered representatives who maintain an ongoing relationship with an annuity owner. Typically, a trail commission is compensation that is paid periodically, the amount of which is linked to the value of the Annuities and the amount of time that the Annuity has been in effect.

PAYMENTS MADE TO PROMOTE SALE OF OUR PRODUCTS

In an effort to promote the sale of our products (which may include the placement of Pruco Life of New Jersey and/or each Annuity on a preferred or recommended company or product list and/or access to the firm's registered representatives), we and/or PAD may pay certain broker-dealers cash compensation in the form of: commissions according to one or more schedules; percentage payments based on “Assets Under Management” (total assets”) subject to certain criteria in certain Pruco Life products; and/or percentage payments based on the total amount of money received as purchase payments under Pruco Life annuity products sold through the broker-dealer.

In addition, we, or PAD, may pay non-cash compensation to broker-dealer firms. These non-cash compensation payments may include but are not limited to payment for: training of sales personnel; marketing and administrative services; educating customers of the firm on each Annuity's features; conducting due diligence and analysis; providing office access, operations and systems support; holding seminars intended to educate the firm's registered representatives and make them more knowledgeable about the annuity; providing a dedicated marketing coordinator; providing priority sales desk support and providing expedited marketing compliance approval. We, and/or PAD, also may compensate third-party vendors, for services that such vendors render to broker-dealer firms.

Additional examples of arrangements under which such payments may be made currently include, but are not limited to: sponsorships, conferences (national, regional and top producer), speaker fees, promotional items, and reimbursements to firms for marketing activities or services paid by the firms and/or their individual representatives. To the extent permitted by FINRA rules and other applicable laws and regulations, we, or PAD, may also pay or allow other promotional incentives or payments in other forms of non-cash compensation (e.g., gifts, occasional meals and entertainment, sponsorship of due diligence events). Under certain circumstances, Portfolio advisers/subadvisers or other organizations with which we do business (“entities”) may also receive incidental non-cash compensation, such as meals and nominal gifts. The amount of these payments varies widely because some payments may encompass only a single event, such as a conference, and others have a much broader scope.

The lists in the prospectus includes the names of the firms and entities that we are aware (as of December 31, 2018) received payment with respect to annuity business during 2018 (or as to which a payment amount was accrued during 2018). The firms listed include payments in connection with products issued by Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey. Your registered representative can provide you with more information about the compensation arrangements that apply upon the sale of the contract.

During 2019, non-cash compensation received by Firms and Entities ranged from $1.00 to $433,912.73. During 2019, cash compensation received by Firms ranged from $1.10 to $18,272,777.70.

CYBER SECURITY RISK

With the increasing use of technology and computer systems in general and, in particular, the Internet to conduct necessary business functions, Pruco Life of New Jersey is susceptible to operational, information security and related risks. These risks, which are often collectively referred to as “cyber security” risks, may include deliberate or malicious attacks, as well as unintentional events and occurrences. These risks are heightened by our offering

2

of products with certain features, including those with automatic asset transfer or re-allocation strategies, and by our employment of complex investment, trading and hedging programs. Cyber security is generally defined as the technology, operations and related protocol surrounding and protecting a user’s computer hardware, network, systems and applications and the data transmitted and stored therewith. These measures ensure the reliability of a user’s systems, as well as the security, availability, integrity, and confidentiality of data assets.

Deliberate cyber attacks can include, but are not limited to, gaining unauthorized access (including physical break-ins and attempts to fraudulently induce employees, customers or other users of these systems to disclose sensitive information in order to gain access) to computer systems in order to misappropriate and/or disclose sensitive or confidential information; deleting, corrupting or modifying data; and causing operational disruptions. Cyber attacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on websites (in order to prevent access to computer networks). In addition to deliberate breaches engineered by external actors, cyber security risks can also result from the conduct of malicious, exploited or careless insiders, whose actions may result in the destruction, release or disclosure of confidential or proprietary information stored on an organization’s systems.

Cyber security failures or breaches that could impact Pruco Life of New Jersey and Owners, whether deliberate or unintentional, could arise not only in connection with our own administration of the Annuity, but also with entities operating the Annuity’s underlying funds and with third-party service providers to Pruco Life of New Jersey. Cyber security failures originating with any of the entities involved with the offering and administration of the Annuity may cause significant disruptions in the business operations related to the Annuity. Potential impacts may include, but are not limited to, potential financial losses under the Annuity, your inability to conduct transactions under the Annuity and/or with respect to an underlying fund, an inability to calculate the accumulation unit value (AUV) with respect to the Annuity and/or the net asset value (NAV) with respect to an underlying fund, and disclosures of your personal or confidential account information.

In addition to direct impacts to you, cyber security failures of the type described above may result in adverse impacts to Pruco Life of New Jersey, including regulatory inquiries, regulatory proceedings, regulatory and/or legal and litigation costs, and reputational damage. Costs incurred by Pruco Life of New Jersey may include reimbursement and other expenses, including the costs of litigation and litigation settlements and additional compliance costs. Considerable expenses also may be incurred by Pruco Life of New Jersey in enhancing and upgrading computer systems and systems security following a cyber security failure.

The rapid proliferation of technologies, as well as the increased sophistication and activities of organized crime, hackers, terrorists, hostile foreign governments, and others continue to pose new and significant cyber security threats. Although Pruco Life of New Jersey, our service providers, and the underlying funds offered under the Annuity may have established business continuity plans and risk management systems to mitigate cyber security risks, there can be no guarantee or assurance that such plans or systems will be effective, or that all risks that exist, or may develop in the future, have been completely anticipated and identified or can be protected against. Furthermore, Pruco Life of New Jersey cannot control or assure the efficacy of the cyber security plans and systems implemented by third-party service providers, the underlying funds, and the issuers in which the underlying funds invest.

In March 2017, the New York Department of Financial Services’ (DFS) new cybersecurity regulation went into effect. The regulation requires financial institutions regulated by the New York DFS, including Pruco Life of New Jersey, to establish a cybersecurity program. The regulation includes specific technical safeguards as well as requirements regarding governance, incident planning, data management, system testing, vendor oversight and regulator notification. In addition, in October 2017, the NAIC adopted the Insurance Data Security Model Law that is consistent with the New York regulation. The Model Law in turn is expected to form the basis for legislation in other states. We are monitoring regulatory guidance and rulemaking in this area, and may be subject to increased compliance costs and regulatory requirements.

DETERMINATION OF ACCUMULATION UNIT VALUES

The value for each accumulation unit (which we refer to as the "Unit Price") is computed as of the end of each Valuation Day applicable. On any given Valuation Day, the value of a Unit in each Sub-account will be determined by multiplying the value of a Unit of that Sub-account for the preceding Valuation Day by the net investment factor for the Sub-account for the current Valuation Day. The Unit Price for a Valuation Period applies to each day in the period. The net investment factor is an index that measures the investment performance of, and charges assessed against, a Sub-account from one Valuation Period to the next. The net investment factor for a Valuation Period is: (a) divided by (b), less, (c) where:

(a) is the net result of:

(1) the net asset value per share of the underlying Portfolio shares held by that Sub-account at the end of the current Valuation Period plus the per share amount of any dividend or capital gain distribution declared and unpaid (accrued) by the Portfolio at the end of the current Valuation Period; plus or minus

(2) any per share charge or credit during the current Valuation Period as a provision for taxes attributable to the operation or maintenance of that Sub-account.

(b) is the net result of:

(1) the net asset value per share of the underlying Portfolio shares held by that Sub-account at the end of the preceding Valuation Period plus the per share amount of any dividend or capital gain distribution declared and unpaid (accrued) by the underlying Portfolio at the end of the preceding Valuation Period; plus or minus

3

(2) any per share charge or credit during the preceding Valuation Period as a provision for taxes attributable to the operation or maintenance of that Sub-account.

(c) is the Insurance Charge and any applicable charge assessed against a Sub-account for any Rider attached to this Annuity corresponding to the portion of the 365 day year (366 for a leap year) that is in the current Valuation Period.

We value the assets in each Sub-account at their fair market value in accordance with accepted accounting practices and applicable laws and regulations. The net investment factor may be greater than, equal to, or less than one.

As we have indicated in the prospectus, each Annuity allows you to select or decline any of several benefit options that carries with it a specific asset-based charge. We maintain a unique unit value corresponding to each such annuity feature. In the prospectus, we set out historical unit values corresponding to the highest and lowest combination of charges. Here, we set out the remaining historical unit values. This information reflects Sub-Account names as of December 31, 2019. Please refer to the Investment Options section of the prospectus for information on name changes.

HISTORICAL INCOME GROWTH RATES AND INCOME PERCENTAGES

The rates below apply for applications signed between April 1, 2020 and April 14, 2020.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after April 15, 2020 . Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

5.00% Annual Effective

Compounded Daily

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	2.70%	2.20%	66	5.05%	4.55%
46	2.70%	2.20%	67	5.10%	4.60%
47	2.70%	2.20%	68	5.10%	4.60%
48	2.70%	2.20%	69	5.15%	4.65%
49	2.80%	2.30%	70	5.20%	4.70%
50	2.90%	2.40%	71	5.30%	4.80%
51	3.00%	2.50%	72	5.35%	4.85%
52	3.05%	2.55%	73	5.45%	4.95%
53	3.20%	2.70%	74	5.50%	5.00%
54	3.30%	2.80%	75	5.55%	5.05%
55	3.45%	2.95%	76	5.60%	5.10%
56	3.60%	3.10%	77	5.65%	5.15%
57	3.70%	3.20%	78	5.75%	5.25%
58	3.90%	3.40%	79	5.80%	5.30%
59	4.05%	3.55%	80	5.80%	5.30%
60	4.30%	3.80%	81	5.90%	5.40%
61	4.40%	3.90%	82	6.00%	5.50%
62	4.45%	3.95%	83	6.10%	5.60%
63	4.65%	4.15%	84	6.20%	5.70%
64	4.80%	4.30%	85+	6.30%	5.80%
65	5.00%	4.50%

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The rates below apply for applications signed between March 15, 2020 and March 31, 2020.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after April 1, 2020 . Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

5.65% Annual Effective

Compounded Daily

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.35%	2.85%	66	5.70%	5.20%
46	3.35%	2.85%	67	5.75%	5.25%
47	3.35%	2.85%	68	5.75%	5.25%
48	3.35%	2.85%	69	5.80%	5.30%
49	3.45%	2.95%	70	5.85%	5.35%
50	3.55%	3.05%	71	5.95%	5.45%
51	3.65%	3.15%	72	6.00%	5.50%
52	3.70%	3.20%	73	6.10%	5.60%
53	3.85%	3.35%	74	6.15%	5.65%
54	3.95%	3.45%	75	6.20%	5.70%
55	4.10%	3.60%	76	6.25%	5.75%
56	4.25%	3.75%	77	6.30%	5.80%
57	4.35%	3.85%	78	6.40%	5.90%
58	4.55%	4.05%	79	6.45%	5.95%
59	4.70%	4.20%	80	6.45%	5.95%
60	4.95%	4.45%	81	6.55%	6.05%
61	5.05%	4.55%	82	6.65%	6.15%
62	5.10%	4.60%	83	6.75%	6.25%
63	5.30%	4.80%	84	6.85%	6.35%
64	5.45%	4.95%	85+	6.95%	6.45%
65	5.65%	5.15%

5

T he rates below apply for applications signed between November 15, 2019 and March 14, 2020.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after March 15, 2020 . Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

5.75% Annual Effective

Compounded Daily

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.60%	3.10%	66	5.80%	5.30%
46	3.75%	3.25%	67	5.85%	5.35%
47	3.85%	3.35%	68	5.85%	5.35%
48	4.00%	3.50%	69	5.90%	5.40%
49	4.15%	3.65%	70	5.95%	5.45%
50	4.20%	3.70%	71	6.05%	5.55%
51	4.30%	3.80%	72	6.10%	5.60%
52	4.40%	3.90%	73	6.20%	5.70%
53	4.55%	4.05%	74	6.25%	5.75%
54	4.65%	4.15%	75	6.35%	5.85%
55	4.75%	4.25%	76	6.40%	5.90%
56	4.85%	4.35%	77	6.45%	5.95%
57	4.95%	4.45%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.60%	6.10%
59	5.10%	4.60%	80	6.65%	6.15%
60	5.20%	4.70%	81	6.75%	6.25%
61	5.30%	4.80%	82	6.85%	6.35%
62	5.40%	4.90%	83	6.95%	6.45%
63	5.55%	5.05%	84	7.05%	6.55%
64	5.65%	5.15%	85+	7.15%	6.65%
65	5.75%	5.25%

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The rates below apply for applications signed between October 15, 2019 and November 14, 2019.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after November 15, 2019 . Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

6.00% Annual Effective

Compounded Daily

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.60%	3.10%	66	5.80%	5.30%
46	3.75%	3.25%	67	5.85%	5.35%
47	3.85%	3.35%	68	5.85%	5.35%
48	4.00%	3.50%	69	5.90%	5.40%
49	4.15%	3.65%	70	5.95%	5.45%
50	4.20%	3.70%	71	6.05%	5.55%
51	4.30%	3.80%	72	6.10%	5.60%
52	4.40%	3.90%	73	6.20%	5.70%
53	4.55%	4.05%	74	6.25%	5.75%
54	4.65%	4.15%	75	6.35%	5.85%
55	4.75%	4.25%	76	6.40%	5.90%
56	4.85%	4.35%	77	6.45%	5.95%
57	4.95%	4.45%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.60%	6.10%
59	5.10%	4.60%	80	6.65%	6.15%
60	5.20%	4.70%	81	6.75%	6.25%
61	5.30%	4.80%	82	6.85%	6.35%
62	5.40%	4.90%	83	6.95%	6.45%
63	5.55%	5.05%	84	7.05%	6.55%
64	5.65%	5.15%	85+	7.15%	6.65%
65	5.75%	5.25%

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The rates below apply for applications signed between September 15, 2019 and October 14, 2019.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after October 15, 2019 . Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

6.00% Annual Effective

Compounded Daily

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.70%	3.20%	66	5.90%	5.40%
46	3.85%	3.35%	67	5.95%	5.45%
47	3.95%	3.45%	68	5.95%	5.45%
48	4.10%	3.60%	69	6.00%	5.50%
49	4.25%	3.75%	70	6.05%	5.55%
50	4.30%	3.80%	71	6.15%	5.65%
51	4.40%	3.90%	72	6.20%	5.70%
52	4.50%	4.00%	73	6.30%	5.80%
53	4.65%	4.15%	74	6.35%	5.85%
54	4.75%	4.25%	75	6.45%	5.95%
55	4.85%	4.35%	76	6.50%	6.00%
56	4.95%	4.45%	77	6.55%	6.05%
57	5.05%	4.55%	78	6.65%	6.15%
58	5.10%	4.60%	79	6.70%	6.20%
59	5.20%	4.70%	80	6.75%	6.25%
60	5.30%	4.80%	81	6.85%	6.35%
61	5.40%	4.90%	82	6.95%	6.45%
62	5.50%	5.00%	83	7.05%	6.55%
63	5.65%	5.15%	84	7.15%	6.65%
64	5.75%	5.25%	85+	7.25%	6.75%
65	5.85%	5.35%

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The rates below apply for applications signed between July 15, 2019 and September 14, 2019.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after September 15, 2019 . Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

6.00% Annual Effective

Compounded Daily

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.85%	3.35%	66	6.05%	5.55%
46	4.00%	3.50%	67	6.10%	5.60%
47	4.10%	3.60%	68	6.10%	5.60%
48	4.25%	3.75%	69	6.15%	5.65%
49	4.40%	3.90%	70	6.20%	5.70%
50	4.45%	3.95%	71	6.30%	5.80%
51	4.55%	4.05%	72	6.35%	5.85%
52	4.65%	4.15%	73	6.45%	5.95%
53	4.80%	4.30%	74	6.50%	6.00%
54	4.90%	4.40%	75	6.60%	6.10%
55	5.00%	4.50%	76	6.65%	6.15%
56	5.10%	4.60%	77	6.70%	6.20%
57	5.20%	4.70%	78	6.80%	6.30%
58	5.25%	4.75%	79	6.85%	6.35%
59	5.35%	4.85%	80	6.90%	6.40%
60	5.45%	4.95%	81	7.00%	6.50%
61	5.55%	5.05%	82	7.10%	6.60%
62	5.65%	5.15%	83	7.20%	6.70%
63	5.80%	5.30%	84	7.30%	6.80%
64	5.90%	5.40%	85+	7.40%	6.90%
65	6.00%	5.50%

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The rates below apply for applications signed between May 15, 2019 and July 14, 2019.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after July 15, 2019 . Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

6.00% Effective

Compounded Daily

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	4.00%	3.50%	66	6.20%	5.70%
46	4.15%	3.65%	67	6.25%	5.75%
47	4.25%	3.75%	68	6.25%	5.75%
48	4.40%	3.90%	69	6.30%	5.80%
49	4.55%	4.05%	70	6.35%	5.85%
50	4.60%	4.10%	71	6.45%	5.95%
51	4.70%	4.20%	72	6.50%	6.00%
52	4.80%	4.30%	73	6.60%	6.10%
53	4.95%	4.45%	74	6.65%	6.15%
54	5.05%	4.55%	75	6.75%	6.25%
55	5.15%	4.65%	76	6.80%	6.30%
56	5.25%	4.75%	77	6.85%	6.35%
57	5.35%	4.85%	78	6.95%	6.45%
58	5.40%	4.90%	79	7.00%	6.50%
59	5.50%	5.00%	80	7.05%	6.55%
60	5.60%	5.10%	81	7.15%	6.65%
61	5.70%	5.20%	82	7.25%	6.75%
62	5.80%	5.30%	83	7.35%	6.85%
63	5.95%	5.45%	84	7.45%	6.95%
64	6.05%	5.55%	85+	7.55%	7.05%
65	6.15%	5.65%

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The rates below apply for applications signed between January 15, 2019 and May 14, 2019

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after May 15, 2019 . Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

6.00% Effective

Compounded Daily

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	4.15%	3.65%	66	6.35%	5.85%
46	4.30%	3.80%	67	6.40%	5.90%
47	4.40%	3.90%	68	6.40%	5.90%
48	4.55%	4.05%	69	6.45%	5.95%
49	4.70%	4.20%	70	6.50%	6.00%
50	4.75%	4.25%	71	6.60%	6.10%
51	4.85%	4.35%	72	6.65%	6.15%
52	4.95%	4.45%	73	6.75%	6.25%
53	5.10%	4.60%	74	6.80%	6.30%
54	5.20%	4.70%	75	6.90%	6.40%
55	5.30%	4.80%	76	6.95%	6.45%
56	5.40%	4.90%	77	7.00%	6.50%
57	5.50%	5.00%	78	7.10%	6.60%
58	5.55%	5.05%	79	7.15%	6.65%
59	5.65%	5.15%	80	7.20%	6.70%
60	5.75%	5.25%	81	7.30%	6.80%
61	5.85%	5.35%	82	7.40%	6.90%
62	5.95%	5.45%	83	7.50%	7.00%
63	6.10%	5.60%	84	7.60%	7.10%
64	6.20%	5.70%	85+	7.70%	7.20%
65	6.30%	5.80%

11

The rates below apply for applications signed between December 15, 2018 and January 14, 2019.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after January 15, 2019. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

6.00% Compounded Daily

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	4.15%	3.65%	66	6.35%	5.85%
46	4.30%	3.80%	67	6.40%	5.90%
47	4.40%	3.90%	68	6.40%	5.90%
48	4.55%	4.05%	69	6.45%	5.95%
49	4.70%	4.20%	70	6.50%	6.00%
50	4.75%	4.25%	71	6.60%	6.10%
51	4.85%	4.35%	72	6.65%	6.15%
52	4.95%	4.45%	73	6.75%	6.25%
53	5.10%	4.60%	74	6.80%	6.30%
54	5.20%	4.70%	75	6.90%	6.40%
55	5.30%	4.80%	76	6.95%	6.45%
56	5.40%	4.90%	77	7.00%	6.50%
57	5.50%	5.00%	78	7.10%	6.60%
58	5.55%	5.05%	79	7.15%	6.65%
59	5.65%	5.15%	80	7.20%	6.70%
60	5.75%	5.25%	81	7.30%	6.80%
61	5.85%	5.35%	82	7.40%	6.90%
62	5.95%	5.45%	83	7.50%	7.00%
63	6.10%	5.60%	84	7.60%	7.10%
64	6.20%	5.70%	85+	7.70%	7.20%
65	6.30%	5.80%

12

The rates below apply for applications signed between August 15, 2018 and December 14, 2018.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after December 15, 2018. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

5.00% Compounded Daily

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	4.10%	3.60%	66	6.30%	5.80%
46	4.25%	3.75%	67	6.35%	5.85%
47	4.35%	3.85%	68	6.35%	5.85%
48	4.50%	4.00%	69	6.40%	5.90%
49	4.65%	4.15%	70	6.45%	5.95%
50	4.70%	4.20%	71	6.55%	6.05%
51	4.80%	4.30%	72	6.60%	6.10%
52	4.90%	4.40%	73	6.70%	6.20%
53	5.05%	4.55%	74	6.75%	6.25%
54	5.15%	4.65%	75	6.85%	6.35%
55	5.25%	4.75%	76	6.90%	6.40%
56	5.35%	4.85%	77	6.95%	6.45%
57	5.45%	4.95%	78	7.05%	6.55%
58	5.50%	5.00%	79	7.10%	6.60%
59	5.60%	5.10%	80	7.15%	6.65%
60	5.70%	5.20%	81	7.25%	6.75%
61	5.80%	5.30%	82	7.35%	6.85%
62	5.90%	5.40%	83	7.45%	6.95%
63	6.05%	5.55%	84	7.55%	7.05%
64	6.15%	5.65%	85+	7.65%	7.15%
65	6.25%	5.75%

13

The rates below apply for applications signed between June 15, 2018 and August 14, 2018.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after August 15, 2018. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

5.00%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.95%	3.45%	66	6.15%	5.65%
46	4.10%	3.60%	67	6.20%	5.70%
47	4.20%	3.70%	68	6.20%	5.70%
48	4.35%	3.85%	69	6.25%	5.75%
49	4.50%	4.00%	70	6.30%	5.80%
50	4.55%	4.05%	71	6.40%	5.90%
51	4.65%	4.15%	72	6.45%	5.95%
52	4.75%	4.25%	73	6.55%	6.05%
53	4.90%	4.40%	74	6.60%	6.10%
54	5.00%	4.50%	75	6.70%	6.20%
55	5.10%	4.60%	76	6.75%	6.25%
56	5.20%	4.70%	77	6.80%	6.30%
57	5.30%	4.80%	78	6.90%	6.40%
58	5.35%	4.85%	79	6.95%	6.45%
59	5.45%	4.95%	80	7.00%	6.50%
60	5.55%	5.05%	81	7.10%	6.60%
61	5.65%	5.15%	82	7.20%	6.70%
62	5.75%	5.25%	83	7.30%	6.80%
63	5.90%	5.40%	84	7.40%	6.90%
64	6.00%	5.50%	85+	7.50%	7.00%
65	6.10%	5.60%

14

The rates below apply for applications signed between March 15, 2018 and June 14, 2018.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after June 15, 2018. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

5.00%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.85%	3.35%	66	6.05%	5.55%
46	4.00%	3.50%	67	6.10%	5.60%
47	4.10%	3.60%	68	6.10%	5.60%
48	4.25%	3.75%	69	6.15%	5.65%
49	4.40%	3.90%	70	6.20%	5.70%
50	4.45%	3.95%	71	6.30%	5.80%
51	4.55%	4.05%	72	6.35%	5.85%
52	4.65%	4.15%	73	6.45%	5.95%
53	4.80%	4.30%	74	6.50%	6.00%
54	4.90%	4.40%	75	6.60%	6.10%
55	5.00%	4.50%	76	6.65%	6.15%
56	5.10%	4.60%	77	6.70%	6.20%
57	5.20%	4.70%	78	6.80%	6.30%
58	5.25%	4.75%	79	6.85%	6.35%
59	5.35%	4.85%	80	6.90%	6.40%
60	5.45%	4.95%	81	7.00%	6.50%
61	5.55%	5.05%	82	7.10%	6.60%
62	5.65%	5.15%	83	7.20%	6.70%
63	5.80%	5.30%	84	7.30%	6.80%
64	5.90%	5.40%	85+	7.40%	6.90%
65	6.00%	5.50%

15

The rates below apply for applications signed between February 15, 2018 and March 14, 2018.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or afterMarch 15, 2018. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

5.00%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.60%	3.10%	66	5.80%	5.30%
46	3.75%	3.25%	67	5.85%	5.35%
47	3.85%	3.35%	68	5.85%	5.35%
48	4.00%	3.50%	69	5.90%	5.40%
49	4.15%	3.65%	70	5.95%	5.45%
50	4.20%	3.70%	71	6.05%	5.55%
51	4.30%	3.80%	72	6.10%	5.60%
52	4.40%	3.90%	73	6.20%	5.70%
53	4.55%	4.05%	74	6.25%	5.75%
54	4.65%	4.15%	75	6.35%	5.85%
55	4.75%	4.25%	76	6.40%	5.90%
56	4.85%	4.35%	77	6.45%	5.95%
57	4.95%	4.45%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.60%	6.10%
59	5.10%	4.60%	80	6.65%	6.15%
60	5.20%	4.70%	81	6.75%	6.25%
61	5.30%	4.80%	82	6.85%	6.35%
62	5.40%	4.90%	83	6.95%	6.45%
63	5.55%	5.05%	84	7.05%	6.55%
64	5.65%	5.15%	85+	7.15%	6.65%
65	5.75%	5.25%

16

The rates below apply for applications signed between December 15, 2016 and February 14, 2018.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or afterFebruary 15, 2018. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

5.00%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.35%	2.85%	66	5.55%	5.05%
46	3.50%	3.00%	67	5.60%	5.10%
47	3.60%	3.10%	68	5.60%	5.10%
48	3.75%	3.25%	69	5.65%	5.15%
49	3.90%	3.40%	70	5.70%	5.20%
50	3.95%	3.45%	71	5.80%	5.30%
51	4.05%	3.55%	72	5.85%	5.35%
52	4.15%	3.65%	73	5.95%	5.45%
53	4.30%	3.80%	74	6.00%	5.50%
54	4.40%	3.90%	75	6.10%	5.60%
55	4.50%	4.00%	76	6.15%	5.65%
56	4.60%	4.10%	77	6.20%	5.70%
57	4.70%	4.20%	78	6.30%	5.80%
58	4.75%	4.25%	79	6.35%	5.85%
59	4.85%	4.35%	80	6.40%	5.90%
60	4.95%	4.45%	81	6.50%	6.00%
61	5.05%	4.55%	82	6.60%	6.10%
62	5.15%	4.65%	83	6.70%	6.20%
63	5.30%	4.80%	84	6.80%	6.30%
64	5.40%	4.90%	85+	6.90%	6.40%
65	5.50%	5.00%

17

The rates below apply for applications signed between September 15, 2016 and December 14, 2016.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after December 15, 2016. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

5.00%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.25%	2.75%	66	5.45%	4.95%
46	3.40%	2.90%	67	5.50%	5.00%
47	3.50%	3.00%	68	5.50%	5.00%
48	3.65%	3.15%	69	5.55%	5.05%
49	3.80%	3.30%	70	5.60%	5.10%
50	3.85%	3.35%	71	5.70%	5.20%
51	3.95%	3.45%	72	5.75%	5.25%
52	4.05%	3.55%	73	5.85%	5.35%
53	4.20%	3.70%	74	5.90%	5.40%
54	4.30%	3.80%	75	6.00%	5.50%
55	4.40%	3.90%	76	6.05%	5.55%
56	4.50%	4.00%	77	6.10%	5.60%
57	4.60%	4.10%	78	6.20%	5.70%
58	4.65%	4.15%	79	6.25%	5.75%
59	4.75%	4.25%	80	6.30%	5.80%
60	4.85%	4.35%	81	6.40%	5.90%
61	4.95%	4.45%	82	6.50%	6.00%
62	5.05%	4.55%	83	6.60%	6.10%
63	5.20%	4.70%	84	6.70%	6.20%
64	5.30%	4.80%	85+	6.80%	6.30%
65	5.40%	4.90%

18

The rates below apply for applications signed between June 15, 2016 and September 14, 2016.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after September 15, 2016. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

Income Growth Rate:

5.75%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.25%	2.75%	66	5.80%	5.30%
46	3.40%	2.90%	67	5.85%	5.35%
47	3.50%	3.00%	68	5.90%	5.40%
48	3.65%	3.15%	69	5.95%	5.45%
49	3.80%	3.30%	70	6.00%	5.50%
50	3.90%	3.40%	71	6.05%	5.55%
51	4.05%	3.55%	72	6.10%	5.60%
52	4.20%	3.70%	73	6.20%	5.70%
53	4.25%	3.75%	74	6.25%	5.75%
54	4.40%	3.90%	75	6.30%	5.80%
55	4.55%	4.05%	76	6.40%	5.90%
56	4.65%	4.15%	77	6.50%	6.00%
57	4.80%	4.30%	78	6.60%	6.10%
58	4.95%	4.45%	79	6.70%	6.20%
59	5.05%	4.55%	80	6.80%	6.30%
60	5.15%	4.65%	81	6.90%	6.40%
61	5.25%	4.75%	82	7.00%	6.50%
62	5.35%	4.85%	83	7.10%	6.60%
63	5.45%	4.95%	84	7.20%	6.70%
64	5.55%	5.05%	85+	7.30%	6.80%
65	5.75%	5.25%

19

The rates below apply for applications signed between March 15, 2016 and June 14, 2016.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after June 15, 2016. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

INCOME GROWTH RATE:

6.00%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.50%	3.00%	66	6.05%	5.55%
46	3.65%	3.15%	67	6.10%	5.60%
47	3.75%	3.25%	68	6.15%	5.65%
48	3.90%	3.40%	69	6.20%	5.70%
49	4.05%	3.55%	70	6.25%	5.75%
50	4.15%	3.65%	71	6.30%	5.80%
51	4.30%	3.80%	72	6.35%	5.85%
52	4.45%	3.95%	73	6.45%	5.95%
53	4.50%	4.00%	74	6.50%	6.00%
54	4.65%	4.15%	75	6.55%	6.05%
55	4.80%	4.30%	76	6.65%	6.15%
56	4.90%	4.40%	77	6.75%	6.25%
57	5.05%	4.55%	78	6.85%	6.35%
58	5.20%	4.70%	79	6.95%	6.45%
59	5.30%	4.80%	80	7.05%	6.55%
60	5.40%	4.90%	81	7.15%	6.65%
61	5.50%	5.00%	82	7.25%	6.75%
62	5.60%	5.10%	83	7.35%	6.85%
63	5.70%	5.20%	84	7.45%	6.95%
64	5.80%	5.30%	85+	7.55%	7.05%
65	6.00%	5.50%

20

The rates below apply for applications signed between February 15, 2016 and March 14, 2016.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after March 15, 2016. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

INCOME GROWTH RATE:

6.00%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.50%	3.00%	66	6.05%	5.55%
46	3.65%	3.15%	67	6.10%	5.60%
47	3.75%	3.25%	68	6.15%	5.65%
48	3.90%	3.40%	69	6.20%	5.70%
49	4.05%	3.55%	70	6.25%	5.75%
50	4.15%	3.65%	71	6.30%	5.80%
51	4.30%	3.80%	72	6.35%	5.85%
52	4.45%	3.95%	73	6.45%	5.95%
53	4.50%	4.00%	74	6.50%	6.00%
54	4.65%	4.15%	75	6.55%	6.05%
55	4.80%	4.30%	76	6.65%	6.15%
56	4.90%	4.40%	77	6.75%	6.25%
57	5.05%	4.55%	78	6.85%	6.35%
58	5.20%	4.70%	79	6.95%	6.45%
59	5.30%	4.80%	80	7.05%	6.55%
60	5.40%	4.90%	81	7.15%	6.65%
61	5.50%	5.00%	82	7.25%	6.75%
62	5.60%	5.10%	83	7.35%	6.85%
63	5.70%	5.20%	84	7.45%	6.95%
64	5.80%	5.30%	85+	7.55%	7.05%
65	6.00%	5.50%

21

The rates below apply for applications signed between January 15, 2016 and February 14, 2016.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after February 15, 2016. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

INCOME GROWTH RATE:

6.00%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.50%	3.00%	66	6.05%	5.55%
46	3.65%	3.15%	67	6.10%	5.60%
47	3.75%	3.25%	68	6.15%	5.65%
48	3.90%	3.40%	69	6.20%	5.70%
49	4.05%	3.55%	70	6.25%	5.75%
50	4.15%	3.65%	71	6.30%	5.80%
51	4.30%	3.80%	72	6.35%	5.85%
52	4.45%	3.95%	73	6.45%	5.95%
53	4.50%	4.00%	74	6.50%	6.00%
54	4.65%	4.15%	75	6.55%	6.05%
55	4.80%	4.30%	76	6.65%	6.15%
56	4.90%	4.40%	77	6.75%	6.25%
57	5.05%	4.55%	78	6.85%	6.35%
58	5.20%	4.70%	79	6.95%	6.45%
59	5.30%	4.80%	80	7.05%	6.55%
60	5.40%	4.90%	81	7.15%	6.65%
61	5.50%	5.00%	82	7.25%	6.75%
62	5.60%	5.10%	83	7.35%	6.85%
63	5.70%	5.20%	84	7.45%	6.95%
64	5.80%	5.30%	85+	7.55%	7.05%
65	6.00%	5.50%

22

The rates below apply for applications signed between December 15, 2015 and January 14, 2016.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after January 15, 2016. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

INCOME GROWTH RATE:

6.00%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.50%	3.00%	66	6.05%	5.55%
46	3.65%	3.15%	67	6.10%	5.60%
47	3.75%	3.25%	68	6.15%	5.65%
48	3.90%	3.40%	69	6.20%	5.70%
49	4.05%	3.55%	70	6.25%	5.75%
50	4.15%	3.65%	71	6.30%	5.80%
51	4.30%	3.80%	72	6.35%	5.85%
52	4.45%	3.95%	73	6.45%	5.95%
53	4.50%	4.00%	74	6.50%	6.00%
54	4.65%	4.15%	75	6.55%	6.05%
55	4.80%	4.30%	76	6.65%	6.15%
56	4.90%	4.40%	77	6.75%	6.25%
57	5.05%	4.55%	78	6.85%	6.35%
58	5.20%	4.70%	79	6.95%	6.45%
59	5.30%	4.80%	80	7.05%	6.55%
60	5.40%	4.90%	81	7.15%	6.65%
61	5.50%	5.00%	82	7.25%	6.75%
62	5.60%	5.10%	83	7.35%	6.85%
63	5.70%	5.20%	84	7.45%	6.95%
64	5.80%	5.30%	85+	7.55%	7.05%
65	6.00%	5.50%

23

The rates below apply for applications signed between November 15, 2015 and December 14, 2015.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after December 15, 2015. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

INCOME GROWTH RATE:

5.50%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.25%	2.75%	66	5.80%	5.30%
46	3.40%	2.90%	67	5.85%	5.35%
47	3.50%	3.00%	68	5.90%	5.40%
48	3.65%	3.15%	69	5.95%	5.45%
49	3.80%	3.30%	70	6.00%	5.50%
50	3.90%	3.40%	71	6.05%	5.55%
51	4.05%	3.55%	72	6.10%	5.60%
52	4.20%	3.70%	73	6.15%	5.65%
53	4.30%	3.80%	74	6.20%	5.70%
54	4.45%	3.95%	75	6.25%	5.75%
55	4.60%	4.10%	76	6.35%	5.85%
56	4.70%	4.20%	77	6.45%	5.95%
57	4.85%	4.35%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.65%	6.15%
59	5.10%	4.60%	80	6.75%	6.25%
60	5.25%	4.75%	81	6.85%	6.35%
61	5.35%	4.85%	82	6.95%	6.45%
62	5.45%	4.95%	83	7.05%	6.55%
63	5.55%	5.05%	84	7.15%	6.65%
64	5.65%	5.15%	85+	7.25%	6.75%
65	5.75%	5.25%

24

The rates below apply for applications signed between October 15, 2015 and November 14, 2015.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after November 15, 2015. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

INCOME GROWTH RATE:

5.50%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.25%	2.75%	66	5.80%	5.30%
46	3.40%	2.90%	67	5.85%	5.35%
47	3.50%	3.00%	68	5.90%	5.40%
48	3.65%	3.15%	69	5.95%	5.45%
49	3.80%	3.30%	70	6.00%	5.50%
50	3.90%	3.40%	71	6.05%	5.55%
51	4.05%	3.55%	72	6.10%	5.60%
52	4.20%	3.70%	73	6.15%	5.65%
53	4.30%	3.80%	74	6.20%	5.70%
54	4.45%	3.95%	75	6.25%	5.75%
55	4.60%	4.10%	76	6.35%	5.85%
56	4.70%	4.20%	77	6.45%	5.95%
57	4.85%	4.35%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.65%	6.15%
59	5.10%	4.60%	80	6.75%	6.25%
60	5.25%	4.75%	81	6.85%	6.35%
61	5.35%	4.85%	82	6.95%	6.45%
62	5.45%	4.95%	83	7.05%	6.55%
63	5.55%	5.05%	84	7.15%	6.65%
64	5.65%	5.15%	85+	7.25%	6.75%
65	5.75%	5.25%

25

The rates below apply for applications signed between September 15, 2015 and October 14, 2015.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after October 15, 2015. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

INCOME GROWTH RATE:

5.50%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.25%	2.75%	66	5.80%	5.30%
46	3.40%	2.90%	67	5.85%	5.35%
47	3.50%	3.00%	68	5.90%	5.40%
48	3.65%	3.15%	69	5.95%	5.45%
49	3.80%	3.30%	70	6.00%	5.50%
50	3.90%	3.40%	71	6.05%	5.55%
51	4.05%	3.55%	72	6.10%	5.60%
52	4.20%	3.70%	73	6.15%	5.65%
53	4.30%	3.80%	74	6.20%	5.70%
54	4.45%	3.95%	75	6.25%	5.75%
55	4.60%	4.10%	76	6.35%	5.85%
56	4.70%	4.20%	77	6.45%	5.95%
57	4.85%	4.35%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.65%	6.15%
59	5.10%	4.60%	80	6.75%	6.25%
60	5.25%	4.75%	81	6.85%	6.35%
61	5.35%	4.85%	82	6.95%	6.45%
62	5.45%	4.95%	83	7.05%	6.55%
63	5.55%	5.05%	84	7.15%	6.65%
64	5.65%	5.15%	85+	7.25%	6.75%
65	5.75%	5.25%

26

The rates below apply for applications signed between August 15, 2015 and September 14, 2015.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after September 15, 2015. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

INCOME GROWTH RATE:

5.50%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.25%	2.75%	66	5.80%	5.30%
46	3.40%	2.90%	67	5.85%	5.35%
47	3.50%	3.00%	68	5.90%	5.40%
48	3.65%	3.15%	69	5.95%	5.45%
49	3.80%	3.30%	70	6.00%	5.50%
50	3.90%	3.40%	71	6.05%	5.55%
51	4.05%	3.55%	72	6.10%	5.60%
52	4.20%	3.70%	73	6.15%	5.65%
53	4.30%	3.80%	74	6.20%	5.70%
54	4.45%	3.95%	75	6.25%	5.75%
55	4.60%	4.10%	76	6.35%	5.85%
56	4.70%	4.20%	77	6.45%	5.95%
57	4.85%	4.35%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.65%	6.15%
59	5.10%	4.60%	80	6.75%	6.25%
60	5.25%	4.75%	81	6.85%	6.35%
61	5.35%	4.85%	82	6.95%	6.45%
62	5.45%	4.95%	83	7.05%	6.55%
63	5.55%	5.05%	84	7.15%	6.65%
64	5.65%	5.15%	85+	7.25%	6.75%
65	5.75%	5.25%

27

The rates below apply for applications signed between July 15, 2015 and August 14, 2015.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after August 15, 2015. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

INCOME GROWTH RATE:

5.50%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.25%	2.75%	66	5.80%	5.30%
46	3.40%	2.90%	67	5.85%	5.35%
47	3.50%	3.00%	68	5.90%	5.40%
48	3.65%	3.15%	69	5.95%	5.45%
49	3.80%	3.30%	70	6.00%	5.50%
50	3.90%	3.40%	71	6.05%	5.55%
51	4.05%	3.55%	72	6.10%	5.60%
52	4.20%	3.70%	73	6.15%	5.65%
53	4.30%	3.80%	74	6.20%	5.70%
54	4.45%	3.95%	75	6.25%	5.75%
55	4.60%	4.10%	76	6.35%	5.85%
56	4.70%	4.20%	77	6.45%	5.95%
57	4.85%	4.35%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.65%	6.15%
59	5.10%	4.60%	80	6.75%	6.25%
60	5.25%	4.75%	81	6.85%	6.35%
61	5.35%	4.85%	82	6.95%	6.45%
62	5.45%	4.95%	83	7.05%	6.55%
63	5.55%	5.05%	84	7.15%	6.65%
64	5.65%	5.15%	85+	7.25%	6.75%
65	5.75%	5.25%

28

The rates below apply for applications signed between June 15, 2015 and July 14, 2015.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after July 15, 2015.  Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

INCOME GROWTH RATE:

5.50%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.25%	2.75%	66	5.80%	5.30%
46	3.40%	2.90%	67	5.85%	5.35%
47	3.50%	3.00%	68	5.90%	5.40%
48	3.65%	3.15%	69	5.95%	5.45%
49	3.80%	3.30%	70	6.00%	5.50%
50	3.90%	3.40%	71	6.05%	5.55%
51	4.05%	3.55%	72	6.10%	5.60%
52	4.20%	3.70%	73	6.15%	5.65%
53	4.30%	3.80%	74	6.20%	5.70%
54	4.45%	3.95%	75	6.25%	5.75%
55	4.60%	4.10%	76	6.35%	5.85%
56	4.70%	4.20%	77	6.45%	5.95%
57	4.85%	4.35%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.65%	6.15%
59	5.10%	4.60%	80	6.75%	6.25%
60	5.25%	4.75%	81	6.85%	6.35%
61	5.35%	4.85%	82	6.95%	6.45%
62	5.45%	4.95%	83	7.05%	6.55%
63	5.55%	5.05%	84	7.15%	6.65%
64	5.65%	5.15%	85+	7.25%	6.75%
65	5.75%	5.25%

29

The rates below apply for applications signed between May 15, 2015 and June 14, 2015.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after June 15, 2015. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

INCOME GROWTH RATE:

5.50%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.25%	2.75%	66	5.80%	5.30%
46	3.40%	2.90%	67	5.85%	5.35%
47	3.50%	3.00%	68	5.90%	5.40%
48	3.65%	3.15%	69	5.95%	5.45%
49	3.80%	3.30%	70	6.00%	5.50%
50	3.90%	3.40%	71	6.05%	5.55%
51	4.05%	3.55%	72	6.10%	5.60%
52	4.20%	3.70%	73	6.15%	5.65%
53	4.30%	3.80%	74	6.20%	5.70%
54	4.45%	3.95%	75	6.25%	5.75%
55	4.60%	4.10%	76	6.35%	5.85%
56	4.70%	4.20%	77	6.45%	5.95%
57	4.85%	4.35%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.65%	6.15%
59	5.10%	4.60%	80	6.75%	6.25%
60	5.25%	4.75%	81	6.85%	6.35%
61	5.35%	4.85%	82	6.95%	6.45%
62	5.45%	4.95%	83	7.05%	6.55%
63	5.55%	5.05%	84	7.15%	6.65%
64	5.65%	5.15%	85+	7.25%	6.75%
65	5.75%	5.25%

30

The rates below apply for applications signed between April 27, 2015 and May 14, 2015.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after May 15, 2015.  Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current Income Growth Rate and Income Percentages.

INCOME GROWTH RATE:

5.50%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.25%	2.75%	66	5.80%	5.30%
46	3.40%	2.90%	67	5.85%	5.35%
47	3.50%	3.00%	68	5.90%	5.40%
48	3.65%	3.15%	69	5.95%	5.45%
49	3.80%	3.30%	70	6.00%	5.50%
50	3.90%	3.40%	71	6.05%	5.55%
51	4.05%	3.55%	72	6.10%	5.60%
52	4.20%	3.70%	73	6.15%	5.65%
53	4.30%	3.80%	74	6.20%	5.70%
54	4.45%	3.95%	75	6.25%	5.75%
55	4.60%	4.10%	76	6.35%	5.85%
56	4.70%	4.20%	77	6.45%	5.95%
57	4.85%	4.35%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.65%	6.15%
59	5.10%	4.60%	80	6.75%	6.25%
60	5.25%	4.75%	81	6.85%	6.35%
61	5.35%	4.85%	82	6.95%	6.45%
62	5.45%	4.95%	83	7.05%	6.55%
63	5.55%	5.05%	84	7.15%	6.65%
64	5.65%	5.15%	85+	7.25%	6.75%
65	5.75%	5.25%

31

The rates below apply for applications signed between April 15, 2015 and April 26, 2015.

The Income Growth Rate and Income Percentages may be different than those listed below for applicable paperwork signed on or after April 27, 2015.   Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current rates.

INCOME GROWTH RATE:

5.50%

Income Percentages

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.25%	2.75%	66	5.80%	5.30%
46	3.40%	2.90%	67	5.85%	5.35%
47	3.50%	3.00%	68	5.90%	5.40%
48	3.65%	3.15%	69	5.95%	5.45%
49	3.80%	3.30%	70	6.00%	5.50%
50	3.90%	3.40%	71	6.05%	5.55%
51	4.05%	3.55%	72	6.10%	5.60%
52	4.20%	3.70%	73	6.15%	5.65%
53	4.30%	3.80%	74	6.20%	5.70%
54	4.45%	3.95%	75	6.25%	5.75%
55	4.60%	4.10%	76	6.35%	5.85%
56	4.70%	4.20%	77	6.45%	5.95%
57	4.85%	4.35%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.65%	6.15%
59	5.10%	4.60%	80	6.75%	6.25%
60	5.25%	4.75%	81	6.85%	6.35%
61	5.35%	4.85%	82	6.95%	6.45%
62	5.45%	4.95%	83	7.05%	6.55%
63	5.55%	5.05%	84	7.15%	6.65%
64	5.65%	5.15%	85+	7.25%	6.75%
65	5.75%	5.25%

32

THE RATES BELOW APPLY FOR APPLICATIONS SIGNED BETWEEN MARCH 15, 2015 AND APRIL 14, 2015.

The Income Growth Rate and Income Percentages may be different than those listed below for Applications signed on or after APRIL 15, 2015. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current rates.

INCOME GROWTH RATE:

5.50%

INCOME PERCENTAGES

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.25%	2.75%	66	5.80%	5.30%
46	3.40%	2.90%	67	5.85%	5.35%
47	3.50%	3.00%	68	5.90%	5.40%
48	3.65%	3.15%	69	5.95%	5.45%
49	3.80%	3.30%	70	6.00%	5.50%
50	3.90%	3.40%	71	6.05%	5.55%
51	4.05%	3.55%	72	6.10%	5.60%
52	4.20%	3.70%	73	6.15%	5.65%
53	4.30%	3.80%	74	6.20%	5.70%
54	4.45%	3.95%	75	6.25%	5.75%
55	4.60%	4.10%	76	6.35%	5.85%
56	4.70%	4.20%	77	6.45%	5.95%
57	4.85%	4.35%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.65%	6.15%
59	5.10%	4.60%	80	6.75%	6.25%
60	5.25%	4.75%	81	6.85%	6.35%
61	5.35%	4.85%	82	6.95%	6.45%
62	5.45%	4.95%	83	7.05%	6.55%
63	5.55%	5.05%	84	7.15%	6.65%
64	5.65%	5.15%	85+	7.25%	6.75%
65	5.75%	5.25%

33

THE RATES BELOW APPLY FOR APPLICATIONS SIGNED BETWEEN FEBRUARY 15, 2015 AND MARCH 14, 2015.

The Income Growth Rate and Income Percentages may be different than those listed below for Applications signed on or after MARCH 15, 2015. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current rates:

INCOME GROWTH RATE:

5.50%

INCOME PERCENTAGES

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.25%	2.75%	66	5.80%	5.30%
46	3.40%	2.90%	67	5.85%	5.35%
47	3.50%	3.00%	68	5.90%	5.40%
48	3.65%	3.15%	69	5.95%	5.45%
49	3.80%	3.30%	70	6.00%	5.50%
50	3.90%	3.40%	71	6.05%	5.55%
51	4.05%	3.55%	72	6.10%	5.60%
52	4.20%	3.70%	73	6.15%	5.65%
53	4.30%	3.80%	74	6.20%	5.70%
54	4.45%	3.95%	75	6.25%	5.75%
55	4.60%	4.10%	76	6.35%	5.85%
56	4.70%	4.20%	77	6.45%	5.95%
57	4.85%	4.35%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.65%	6.15%
59	5.10%	4.60%	80	6.75%	6.25%
60	5.25%	4.75%	81	6.85%	6.35%
61	5.35%	4.85%	82	6.95%	6.45%
62	5.45%	4.95%	83	7.05%	6.55%
63	5.55%	5.05%	84	7.15%	6.65%
64	5.65%	5.15%	85+	7.25%	6.75%
65	5.75%	5.25%

34

THE RATES BELOW APPLY FOR APPLICATIONS SIGNED BETWEEN JANUARY 15, 2015 AND FEBRUARY 14, 2015.

The Income Growth Rate and Income Percentages may be different than those listed below for Applications signed on or after FEBRUARY 15, 2015. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current rates:

INCOME GROWTH RATE:

5.50%

INCOME PERCENTAGES

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.25%	2.75%	66	5.80%	5.30%
46	3.40%	2.90%	67	5.85%	5.35%
47	3.50%	3.00%	68	5.90%	5.40%
48	3.65%	3.15%	69	5.95%	5.45%
49	3.80%	3.30%	70	6.00%	5.50%
50	3.90%	3.40%	71	6.05%	5.55%
51	4.05%	3.55%	72	6.10%	5.60%
52	4.20%	3.70%	73	6.15%	5.65%
53	4.30%	3.80%	74	6.20%	5.70%
54	4.45%	3.95%	75	6.25%	5.75%
55	4.60%	4.10%	76	6.35%	5.85%
56	4.70%	4.20%	77	6.45%	5.95%
57	4.85%	4.35%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.65%	6.15%
59	5.10%	4.60%	80	6.75%	6.25%
60	5.25%	4.75%	81	6.85%	6.35%
61	5.35%	4.85%	82	6.95%	6.45%
62	5.45%	4.95%	83	7.05%	6.55%
63	5.55%	5.05%	84	7.15%	6.65%
64	5.65%	5.15%	85+	7.25%	6.75%
65	5.75%	5.25%

35

THE RATES BELOW APPLY FOR APPLICATIONS SIGNED BETWEEN MAY 15, 2014 AND JANUARY 14, 2015.

The Income Growth Rate and Income Percentages may be different than those listed below for Applications signed on or after JANUARY 15, 2015. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current rates:

INCOME GROWTH RATE:

5.50%

INCOME PERCENTAGES

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.25%	2.75%	66	5.80%	5.30%
46	3.40%	2.90%	67	5.85%	5.35%
47	3.50%	3.00%	68	5.90%	5.40%
48	3.65%	3.15%	69	5.95%	5.45%
49	3.80%	3.30%	70	6.00%	5.50%
50	3.90%	3.40%	71	6.05%	5.55%
51	4.05%	3.55%	72	6.10%	5.60%
52	4.20%	3.70%	73	6.15%	5.65%
53	4.30%	3.80%	74	6.20%	5.70%
54	4.45%	3.95%	75	6.25%	5.75%
55	4.60%	4.10%	76	6.35%	5.85%
56	4.70%	4.20%	77	6.45%	5.95%
57	4.85%	4.35%	78	6.55%	6.05%
58	5.00%	4.50%	79	6.65%	6.15%
59	5.10%	4.60%	80	6.75%	6.25%
60	5.25%	4.75%	81	6.85%	6.35%
61	5.35%	4.85%	82	6.95%	6.45%
62	5.45%	4.95%	83	7.05%	6.55%
63	5.55%	5.05%	84	7.15%	6.65%
64	5.65%	5.15%	85+	7.25%	6.75%
65	5.75%	5.25%

36

THE RATES BELOW APPLY FOR APPLICATIONS SIGNED BETWEEN FEBRUARY 15, 2014 AND MAY 14, 2014.

The Income Growth Rate and Income Percentages may be different than those listed below for Applications signed on or after MAY 15, 2014. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current rates:

INCOME GROWTH RATE:

6.00%

INCOME PERCENTAGES

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.40%	2.90%	66	5.95%	5.45%
46	3.55%	3.05%	67	6.00%	5.50%
47	3.65%	3.15%	68	6.05%	5.55%
48	3.80%	3.30%	69	6.10%	5.60%
49	3.95%	3.45%	70	6.15%	5.65%
50	4.05%	3.55%	71	6.20%	5.70%
51	4.20%	3.70%	72	6.25%	5.75%
52	4.35%	3.85%	73	6.30%	5.80%
53	4.45%	3.95%	74	6.35%	5.85%
54	4.60%	4.10%	75	6.40%	5.90%
55	4.75%	4.25%	76	6.50%	6.00%
56	4.85%	4.35%	77	6.60%	6.10%
57	5.00%	4.50%	78	6.70%	6.20%
58	5.15%	4.65%	79	6.80%	6.30%
59	5.25%	4.75%	80	6.90%	6.40%
60	5.40%	4.90%	81	7.00%	6.50%
61	5.50%	5.00%	82	7.10%	6.60%
62	5.60%	5.10%	83	7.20%	6.70%
63	5.70%	5.20%	84	7.30%	6.80%
64	5.80%	5.30%	85+	7.40%	6.90%
65	5.90%	5.40%

37

THE RATES BELOW APPLY FOR APPLICATIONS SIGNED BETWEEN OCTOBER 15, 2013 AND FEBRUARY 14, 2014.

The Income Growth Rate and Income Percentages may be different than those listed below for Applications signed on or after FEBRUARY 15, 2014. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current rates.

INCOME GROWTH RATE:

6.00%

INCOME PERCENTAGES

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.50%	3.00%	66	6.05%	5.55%
46	3.65%	3.15%	67	6.10%	5.60%
47	3.75%	3.25%	68	6.15%	5.65%
48	3.90%	3.40%	69	6.20%	5.70%
49	4.05%	3.55%	70	6.25%	5.75%
50	4.15%	3.65%	71	6.30%	5.80%
51	4.30%	3.80%	72	6.35%	5.85%
52	4.45%	3.95%	73	6.40%	5.90%
53	4.55%	4.05%	74	6.45%	5.95%
54	4.70%	4.20%	75	6.50%	6.00%
55	4.85%	4.35%	76	6.60%	6.10%
56	4.95%	4.45%	77	6.70%	6.20%
57	5.10%	4.60%	78	6.80%	6.30%
58	5.25%	4.75%	79	6.90%	6.40%
59	5.35%	4.90%	80	7.00%	6.50%
60	5.50%	5.00%	81	7.10%	6.60%
61	5.60%	5.10%	82	7.20%	6.70%
62	5.70%	5.20%	83	7.30%	6.80%
63	5.80%	5.30%	84	7.40%	6.90%
64	5.90%	5.40%	85+	7.50%	7.00%
65	6.00%	5.50%

38

THE RATES BELOW APPLY FOR APPLICATIONS SIGNED BETWEEN SEPTEMBER 1, 2013 AND OCTOBER 14, 2013.

The Income Growth Rate and Income Percentages may be different than those listed below for Applications signed on or after October 15, 2013. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current rates.

INCOME GROWTH RATE:

6.00%

INCOME PERCENTAGES

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.35%	2.85%	66	5.90%	5.40%
46	3.50%	3.00%	67	5.95%	5.45%
47	3.60%	3.10%	68	6.00%	5.50%
48	3.75%	3.25%	69	6.05%	5.55%
49	3.90%	3.40%	70	6.10%	5.60%
50	4.00%	3.50%	71	6.15%	5.65%
51	4.15%	3.65%	72	6.20%	5.70%
52	4.30%	3.80%	73	6.25%	5.75%
53	4.40%	3.90%	74	6.30%	5.80%
54	4.55%	4.05%	75	6.35%	5.85%
55	4.70%	4.20%	76	6.45%	5.95%
56	4.80%	4.30%	77	6.55%	6.05%
57	4.95%	4.45%	78	6.65%	6.15%
58	5.10%	4.60%	79	6.75%	6.25%
59	5.20%	4.70%	80	6.85%	6.35%
60	5.35%	4.85%	81	6.95%	6.45%
61	5.45%	4.95%	82	7.05%	6.55%
62	5.55%	5.05%	83	7.15%	6.65%
63	5.65%	5.15%	84	7.25%	6.75%
64	5.75%	5.25%	85+	7.35%	6.85%
65	5.85%	5.35%

39

THE RATES BELOW APPLY FOR APPLICATIONS SIGNED BETWEEN JULY 15, 2013 AND AUGUST 31, 2013.

The Income Growth Rate and Income Percentages may be different than those listed below for Applications signed on or after SEPTEMBER 1, 2013. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current rates.

INCOME GROWTH RATE:

6.00%

INCOME PERCENTAGES

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.15%	2.65%	66	5.70%	5.20%
46	3.30%	2.80%	67	5.75%	5.25%
47	3.40%	2.90%	68	5.80%	5.30%
48	3.55%	3.05%	69	5.85%	5.35%
49	3.70%	3.20%	70	5.90%	5.40%
50	3.80%	3.30%	71	5.95%	5.45%
51	3.95%	3.45%	72	6.00%	5.50%
52	4.10%	3.60%	73	6.05%	5.55%
53	4.20%	3.70%	74	6.10%	5.60%
54	4.35%	3.85%	75	6.15%	5.65%
55	4.50%	4.00%	76	6.25%	5.75%
56	4.60%	4.10%	77	6.35%	5.85%
57	4.75%	4.25%	78	6.45%	5.95%
58	4.90%	4.40%	79	6.55%	6.05%
59	5.00%	4.50%	80	6.65%	6.15%
60	5.15%	4.65%	81	6.75%	6.25%
61	5.25%	4.75%	82	6.85%	6.35%
62	5.35%	4.85%	83	6.95%	6.45%
63	5.45%	4.95%	84	7.05%	6.55%
64	5.55%	5.05%	85+	7.15%	6.65%
65	5.65%	5.15%

40

THE RATES BELOW APPLY FOR APPLICATIONS SIGNED BETWEEN JUNE 17, 2013 AND JULY 14, 2013.

The Income Growth Rate and Income Percentages may be different than those listed below for Applications signed on or after JULY 15, 2013. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current rates.

INCOME GROWTH RATE:

5.50%

INCOME PERCENTAGES

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.00%	2.50%	66	5.55%	5.05%
46	3.15%	2.65%	67	5.60%	5.10%
47	3.25%	2.75%	68	5.65%	5.15%
48	3.40%	2.90%	69	5.70%	5.20%
49	3.55%	3.05%	70	5.75%	5.25%
50	3.65%	3.15%	71	5.80%	5.30%
51	3.80%	3.30%	72	5.85%	5.35%
52	3.95%	3.45%	73	5.90%	5.40%
53	4.05%	3.55%	74	5.95%	5.45%
54	4.20%	3.70%	75	6.00%	5.50%
55	4.35%	3.85%	76	6.10%	5.60%
56	4.45%	3.95%	77	6.20%	5.70%
57	4.60%	4.10%	78	6.30%	5.80%
58	4.75%	4.25%	79	6.40%	5.90%
59	4.85%	4.35%	80	6.50%	6.00%
60	5.00%	4.50%	81	6.60%	6.10%
61	5.10%	4.60%	82	6.70%	6.20%
62	5.20%	4.70%	83	6.80%	6.30%
63	5.30%	4.80%	84	6.90%	6.40%
64	5.40%	4.90%	85+	7.00%	6.0%
65	5.50%	5.00%

41

THE RATES BELOW APPLY FOR APPLICATIONS SIGNED BETWEEN MAY 1, 2013 AND JUNE 16, 2013.

The Income Growth Rate and Income Percentages may be different than those listed below for Applications signed on or after JUNE 17, 2013. Please visit www.PrudentialAnnuities.com/investor/prospectuses or work with your Financial Professional to confirm the most current rates.

INCOME GROWTH RATE:

5.50%

INCOME PERCENTAGES

The applicable guaranteed Income Percentage is based on the attained age of the Annuitant (youngest Designated Life for Spousal) as of the date the purchase payment(s) is received in Good Order, according to the following tables listed below:

Age	Single Percentage	Spousal Percentage	Age	Single Percentage	Spousal Percentage
45	3.00%	2.50%	66	5.10%	4.60%
46	3.10%	2.60%	67	5.20%	4.70%
47	3.20%	2.70%	68	5.30%	4.80%
48	3.30%	2.80%	69	5.40%	4.90%
49	3.40%	2.90%	70	5.50%	5.00%
50	3.50%	3.00%	71	5.60%	5.10%
51	3.60%	3.10%	72	5.70%	5.20%
52	3.70%	3.20%	73	5.80%	5.30%
53	3.80%	3.30%	74	5.90%	5.40%
54	3.90%	3.40%	75	600%	5.50%
55	4.00%	3.50%	76	6.10%	5.60%
56	4.10%	3.60%	77	6.20%	5.70%
57	4.20%	3.70%	78	6.30%	5.80%
58	4.30%	3.80%	79	6.40%	5.90%
59	4.40%	3.90%	80	6.50%	6.00%
60	4.50%	4.00%	81	6.60%	6.10%
61	4.60%	4.10%	82	6.70%	6.20%
62	4.70%	4.20%	83	6.80%	6.30%
63	4.80%	4.30%	84	6.90%	6.40%
64	4.90%	4.40%	85+	7.00%	6.00%
65	5.00%	4.50%

42

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	Prudential Government Money Market Portfolio		Prudential Diversified Bond Portfolio		Prudential Equity Portfolio (Class I)		Prudential Value Portfolio (Class I)		Prudential High Yield Bond Portfolio
ASSETS
Investment in the portfolios, at fair value	$	5,543,166	$	12,761,734	$	17,364,161	$	19,106,116	$	11,776,362
Net Assets	$	5,543,166	$	12,761,734	$	17,364,161	$	19,106,116	$	11,776,362
NET ASSETS, representing:
Accumulation units	$	5,543,166	$	12,761,734	$	17,364,161	$	19,106,116	$	11,776,362
	$	5,543,166	$	12,761,734	$	17,364,161	$	19,106,116	$	11,776,362
Units outstanding	4,619,847		4,326,412		3,905,194		4,885,878		2,266,883
Portfolio shares held	554,317		877,095		274,836		530,873		2,040,964
Portfolio net asset value per share	$	10.00	$	14.55	$	63.18	$	35.99	$	5.77
Investment in portfolio shares, at cost	$	5,543,166	$	9,929,354	$	7,598,615	$	10,419,923	$	10,707,374

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	Prudential Government Money Market Portfolio		Prudential Diversified Bond Portfolio			Prudential Equity Portfolio (Class I)			Prudential Value Portfolio (Class I)			Prudential High Yield Bond Portfolio
	1/1/2019		1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to		to			to			to			to
	12/31/2019		12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	110,634	$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	81,590		184,240			237,719			273,791			175,874
NET INVESTMENT INCOME (LOSS)	29,044		(184,240		)	(237,719		)	(273,791		)	(175,874		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—		—			—			—			—
Net realized gain (loss) on shares redeemed	—		486,196			1,106,794			1,036,963			73,379
Net change in unrealized appreciation (depreciation) on investments	—		893,605			3,082,402			3,220,896			1,725,467
NET GAIN (LOSS) ON INVESTMENTS	—		1,379,801			4,189,196			4,257,859			1,798,846
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	29,044	$	1,195,561		$	3,951,477		$	3,984,068		$	1,622,972

The accompanying notes are an integral part of these financial statements.

A1

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	Prudential Stock Index Portfolio		Prudential Global Portfolio		Prudential Jennison Portfolio (Class I)		Prudential Small Capitalization Stock Portfolio		T. Rowe Price International Stock Portfolio
ASSETS
Investment in the portfolios, at fair value	$	32,339,637	$	4,320,959	$	25,178,992	$	7,260,713	$	1,607,139
Net Assets	$	32,339,637	$	4,320,959	$	25,178,992	$	7,260,713	$	1,607,139
NET ASSETS, representing:
Accumulation units	$	32,339,637	$	4,320,959	$	25,178,992	$	7,260,713	$	1,607,139
	$	32,339,637	$	4,320,959	$	25,178,992	$	7,260,713	$	1,607,139
Units outstanding	5,676,245		1,262,884		4,496,474		925,004		747,722
Portfolio shares held	435,609		104,145		308,490		168,736		102,890
Portfolio net asset value per share	$	74.24	$	41.49	$	81.62	$	43.03	$	15.62
Investment in portfolio shares, at cost	$	21,600,145	$	2,085,747	$	7,532,282	$	4,679,899	$	1,450,957

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	Prudential Stock Index Portfolio			Prudential Global Portfolio			Prudential Jennison Portfolio (Class I)			Prudential Small Capitalization Stock Portfolio			T. Rowe Price International Stock Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	35,957
EXPENSES
Charges for mortality and expense risk,
and for administration	343,752			60,071			342,503			74,082			20,953
NET INVESTMENT INCOME (LOSS)	(343,752		)	(60,071		)	(342,503		)	(74,082		)	15,004
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			64,140
Net realized gain (loss) on shares redeemed	827,049			296,506			2,272,139			235,388			10,147
Net change in unrealized appreciation (depreciation) on investments	6,022,830			800,285			4,535,390			988,498			259,641
NET GAIN (LOSS) ON INVESTMENTS	6,849,879			1,096,791			6,807,529			1,223,886			333,928
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	6,506,127		$	1,036,720		$	6,465,026		$	1,149,804		$	348,932

The accompanying notes are an integral part of these financial statements.

A2

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	T. Rowe Price Equity Income Portfolio (Equity Income Class)		Invesco V.I. Core Equity Fund (Series I)		Janus Henderson VIT Research Portfolio (Institutional Shares)		Janus Henderson VIT Overseas Portfolio (Institutional Shares)		MFS® Research Series (Initial Class)
ASSETS
Investment in the portfolios, at fair value	$	6,313,544	$	7,416,914	$	5,598,237	$	4,591,201	$	1,575,854
Net Assets	$	6,313,544	$	7,416,914	$	5,598,237	$	4,591,201	$	1,575,854
NET ASSETS, representing:
Accumulation units	$	6,313,544	$	7,416,914	$	5,598,237	$	4,591,201	$	1,575,854
	$	6,313,544	$	7,416,914	$	5,598,237	$	4,591,201	$	1,575,854
Units outstanding	1,407,891		2,126,680		1,321,617		1,226,900		368,759
Portfolio shares held	232,714		212,215		137,245		137,915		53,437
Portfolio net asset value per share	$	27.13	$	34.95	$	40.79	$	33.29	$	29.49
Investment in portfolio shares, at cost	$	5,374,343	$	6,045,804	$	4,029,520	$	4,465,607	$	1,194,974

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	T. Rowe Price Equity Income Portfolio (Equity Income Class)		Invesco V.I. Core Equity Fund (Series I)			Janus Henderson VIT Research Portfolio (Institutional Shares)			Janus Henderson VIT Overseas Portfolio (Institutional Shares)			MFS® Research Series (Initial Class)
	1/1/2019		1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to		to			to			to			to
	12/31/2019		12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	136,983	$	65,927		$	23,710		$	81,102		$	11,393
EXPENSES
Charges for mortality and expense risk,
and for administration	82,187		97,506			71,924			59,506			20,235
NET INVESTMENT INCOME (LOSS)	54,796		(31,579		)	(48,214		)	21,596			(8,842		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	373,142		801,194			534,905			—			148,665
Net realized gain (loss) on shares redeemed	51,571		130,953			93,581			(37,140		)	22,068
Net change in unrealized appreciation (depreciation) on investments	800,144		756,329			878,394			983,805			222,644
NET GAIN (LOSS) ON INVESTMENTS	1,224,857		1,688,476			1,506,880			946,665			393,377
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	1,279,653	$	1,656,897		$	1,458,666		$	968,261		$	384,535

The accompanying notes are an integral part of these financial statements.

A3

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	MFS® Growth Series (Initial Class)		American Century VP Value Fund (Class I)		Franklin Small-Mid Cap Growth VIP Fund (Class 2)		Prudential Jennison 20/20 Focus Portfolio (Class I)		Davis Value Portfolio
ASSETS
Investment in the portfolios, at fair value	$	7,083,922	$	1,889,528	$	2,145,256	$	3,230,596	$	1,189,425
Net Assets	$	7,083,922	$	1,889,528	$	2,145,256	$	3,230,596	$	1,189,425
NET ASSETS, representing:
Accumulation units	$	7,083,922	$	1,889,528	$	2,145,256	$	3,230,596	$	1,189,425
	$	7,083,922	$	1,889,528	$	2,145,256	$	3,230,596	$	1,189,425
Units outstanding	1,331,254		430,174		540,942		821,087		507,113
Portfolio shares held	119,258		161,222		124,075		84,882		140,262
Portfolio net asset value per share	$	59.40	$	11.72	$	17.29	$	38.06	$	8.48
Investment in portfolio shares, at cost	$	3,847,359	$	1,198,365	$	2,377,642	$	1,207,603	$	1,368,947

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	MFS® Growth Series (Initial Class)			American Century VP Value Fund (Class I)		Franklin Small-Mid Cap Growth VIP Fund (Class 2)			Prudential Jennison 20/20 Focus Portfolio (Class I)			Davis Value Portfolio
	1/1/2019			1/1/2019		1/1/2019			1/1/2019			1/1/2019
	to			to		to			to			to
	12/31/2019			12/31/2019		12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	37,661	$	—		$	—		$	17,775
EXPENSES
Charges for mortality and expense risk,
and for administration	91,374			24,809		29,701			43,617			17,657
NET INVESTMENT INCOME (LOSS)	(91,374		)	12,852		(29,701		)	(43,617		)	118
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	573,893			104,910		298,243			—			55,958
Net realized gain (loss) on shares redeemed	286,661			74,747		(38,743		)	280,528			(114,094		)
Net change in unrealized appreciation (depreciation) on investments	1,194,171			207,605		307,696			507,385			381,690
NET GAIN (LOSS) ON INVESTMENTS	2,054,725			387,262		567,196			787,913			323,554
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	1,963,351		$	400,114	$	537,495		$	744,296		$	323,672

The accompanying notes are an integral part of these financial statements.

A4

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AB VPS Large Cap Growth Portfolio (Class B)		Prudential SP Small Cap Value Portfolio (Class I)		Janus Henderson VIT Research Portfolio (Service Shares)		SP Prudential U.S. Emerging Growth Portfolio (Class I)		Prudential SP International Growth Portfolio (Class I)
ASSETS
Investment in the portfolios, at fair value	$	442,595	$	7,008,841	$	527,065	$	6,881,101	$	1,844,509
Net Assets	$	442,595	$	7,008,841	$	527,065	$	6,881,101	$	1,844,509
NET ASSETS, representing:
Accumulation units	$	442,595	$	7,008,841	$	527,065	$	6,881,101	$	1,844,509
	$	442,595	$	7,008,841	$	527,065	$	6,881,101	$	1,844,509
Units outstanding	223,600		1,957,520		193,503		1,596,173		825,908
Portfolio shares held	7,727		251,574		13,296		366,601		198,762
Portfolio net asset value per share	$	57.28	$	27.86	$	39.64	$	18.77	$	9.28
Investment in portfolio shares, at cost	$	303,642	$	3,348,876	$	363,618	$	2,784,216	$	1,241,685

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AB VPS Large Cap Growth Portfolio (Class B)			Prudential SP Small Cap Value Portfolio (Class I)			Janus Henderson VIT Research Portfolio (Service Shares)			SP Prudential U.S. Emerging Growth Portfolio (Class I)			Prudential SP International Growth Portfolio (Class I)
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	1,491		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	5,776			105,181			7,601			102,359			27,529
NET INVESTMENT INCOME (LOSS)	(5,776		)	(105,181		)	(6,110		)	(102,359		)	(27,529		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	52,936			—			51,487			—			—
Net realized gain (loss) on shares redeemed	22,144			343,032			8,257			489,507			73,763
Net change in unrealized appreciation (depreciation) on investments	47,138			1,020,838			80,901			1,556,388			423,010
NET GAIN (LOSS) ON INVESTMENTS	122,218			1,363,870			140,645			2,045,895			496,773
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	116,442		$	1,258,689		$	134,535		$	1,943,536		$	469,244

The accompanying notes are an integral part of these financial statements.

A5

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST Goldman Sachs Large-Cap Value Portfolio		AST Cohen & Steers Realty Portfolio		AST J.P. Morgan Strategic Opportunities Portfolio		AST T. Rowe Price Large-Cap Value Portfolio		AST High Yield Portfolio
ASSETS
Investment in the portfolios, at fair value	$	—	$	30,263,469	$	167,939,344	$	77,914,802	$	32,616,152
Net Assets	$	—	$	30,263,469	$	167,939,344	$	77,914,802	$	32,616,152
NET ASSETS, representing:
Accumulation units	$	—	$	30,263,469	$	167,939,344	$	77,914,802	$	32,616,152
	$	—	$	30,263,469	$	167,939,344	$	77,914,802	$	32,616,152
Units outstanding	—		1,279,393		11,393,534		4,341,700		2,021,819
Portfolio shares held	—		2,092,909		8,077,891		4,524,669		2,866,094
Portfolio net asset value per share	$	—	$	14.46	$	20.79	$	17.22	$	11.38
Investment in portfolio shares, at cost	$	—	$	22,145,752	$	123,285,190	$	68,214,156	$	26,395,311

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Goldman Sachs Large-Cap Value Portfolio			AST Cohen & Steers Realty Portfolio			AST J.P. Morgan Strategic Opportunities Portfolio			AST T. Rowe Price Large-Cap Value Portfolio			AST High Yield Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	04/26/2019**			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	266,745			397,916			2,589,552			824,337			400,517
NET INVESTMENT INCOME (LOSS)	(266,745		)	(397,916		)	(2,589,552		)	(824,337		)	(400,517		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	12,913,480			2,627,709			6,527,845			1,158,500			1,520,573
Net change in unrealized appreciation (depreciation) on investments	(5,127,547		)	5,163,356			15,386,321			7,785,263			2,849,948
NET GAIN (LOSS) ON INVESTMENTS	7,785,933			7,791,065			21,914,166			8,943,763			4,370,521
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	7,519,188		$	7,393,149		$	19,324,614		$	8,119,426		$	3,970,004
**Date subaccount was no longer available for investment.

The accompanying notes are an integral part of these financial statements.

A6

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST Small-Cap Growth Opportunities Portfolio		AST WEDGE Capital Mid-Cap Value Portfolio		AST Small-Cap Value Portfolio		AST Mid-Cap Growth Portfolio		AST Hotchkis & Wiley Large-Cap Value Portfolio
ASSETS
Investment in the portfolios, at fair value	$	20,943,904	$	9,382,994	$	15,037,721	$	66,739,554	$	38,666,095
Net Assets	$	20,943,904	$	9,382,994	$	15,037,721	$	66,739,554	$	38,666,095
NET ASSETS, representing:
Accumulation units	$	20,943,904	$	9,382,994	$	15,037,721	$	66,739,554	$	38,666,095
	$	20,943,904	$	9,382,994	$	15,037,721	$	66,739,554	$	38,666,095
Units outstanding	822,193		447,919		734,242		2,650,573		1,732,230
Portfolio shares held	867,961		365,951		519,079		5,684,800		1,168,866
Portfolio net asset value per share	$	24.13	$	25.64	$	28.97	$	11.74	$	33.08
Investment in portfolio shares, at cost	$	14,307,583	$	7,162,474	$	12,303,107	$	46,252,431	$	27,758,312

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Small-Cap Growth Opportunities Portfolio			AST WEDGE Capital Mid-Cap Value Portfolio			AST Small-Cap Value Portfolio			AST Mid-Cap Growth Portfolio			AST Hotchkis & Wiley Large-Cap Value Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	288,154			140,833			215,823			962,943			527,322
NET INVESTMENT INCOME (LOSS)	(288,154		)	(140,833		)	(215,823		)	(962,943		)	(527,322		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	1,598,983			679,524			676,062			6,435,557			2,685,142
Net change in unrealized appreciation (depreciation) on investments	4,067,348			865,907			2,034,267			10,035,850			6,386,953
NET GAIN (LOSS) ON INVESTMENTS	5,666,331			1,545,431			2,710,329			16,471,407			9,072,095
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	5,378,177		$	1,404,598		$	2,494,506		$	15,508,464		$	8,544,773

The accompanying notes are an integral part of these financial statements.

A7

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST Loomis Sayles Large-Cap Growth Portfolio		AST MFS Growth Portfolio		AST Neuberger Berman/LSV Mid-Cap Value Portfolio		AST BlackRock Low Duration Bond Portfolio		AST QMA US Equity Alpha Portfolio
ASSETS
Investment in the portfolios, at fair value	$	58,793,071	$	24,748,221	$	33,971,697	$	24,433,615	$	33,140,113
Net Assets	$	58,793,071	$	24,748,221	$	33,971,697	$	24,433,615	$	33,140,113
NET ASSETS, representing:
Accumulation units	$	58,793,071	$	24,748,221	$	33,971,697	$	24,433,615	$	33,140,113
	$	58,793,071	$	24,748,221	$	33,971,697	$	24,433,615	$	33,140,113
Units outstanding	1,896,519		808,851		1,556,303		2,325,732		1,169,251
Portfolio shares held	920,367		741,631		962,371		2,158,447		949,573
Portfolio net asset value per share	$	63.88	$	33.37	$	35.30	$	11.32	$	34.90
Investment in portfolio shares, at cost	$	34,685,413	$	16,002,783	$	26,377,924	$	23,265,234	$	24,815,511

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Loomis Sayles Large-Cap Growth Portfolio			AST MFS Growth Portfolio			AST Neuberger Berman/LSV Mid-Cap Value Portfolio			AST BlackRock Low Duration Bond Portfolio			AST QMA US Equity Alpha Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	821,027			310,153			463,291			284,445			404,706
NET INVESTMENT INCOME (LOSS)	(821,027		)	(310,153		)	(463,291		)	(284,445		)	(404,706		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	6,458,295			2,289,558			1,611,277			292,470			2,532,387
Net change in unrealized appreciation (depreciation) on investments	8,015,083			4,486,303			4,235,829			740,847			4,024,636
NET GAIN (LOSS) ON INVESTMENTS	14,473,378			6,775,861			5,847,106			1,033,317			6,557,023
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	13,652,351		$	6,465,708		$	5,383,815		$	748,872		$	6,152,317

The accompanying notes are an integral part of these financial statements.

A8

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST T. Rowe Price Natural Resources Portfolio		AST T. Rowe Price Asset Allocation Portfolio		AST MFS Global Equity Portfolio		AST J.P. Morgan International Equity Portfolio		AST Templeton Global Bond Portfolio
ASSETS
Investment in the portfolios, at fair value	$	27,207,851	$	1,195,684,088	$	36,538,250	$	26,684,084	$	15,925,660
Net Assets	$	27,207,851	$	1,195,684,088	$	36,538,250	$	26,684,084	$	15,925,660
NET ASSETS, representing:
Accumulation units	$	27,207,851	$	1,195,684,088	$	36,538,250	$	26,684,084	$	15,925,660
	$	27,207,851	$	1,195,684,088	$	36,538,250	$	26,684,084	$	15,925,660
Units outstanding	2,633,915		66,786,868		1,614,585		1,837,297		1,540,933
Portfolio shares held	1,208,164		35,681,411		1,514,853		825,111		1,396,988
Portfolio net asset value per share	$	22.52	$	33.51	$	24.12	$	32.34	$	11.40
Investment in portfolio shares, at cost	$	24,655,054	$	783,826,750	$	25,066,396	$	21,105,569	$	15,367,939

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST T. Rowe Price Natural Resources Portfolio			AST T. Rowe Price Asset Allocation Portfolio			AST MFS Global Equity Portfolio			AST J.P. Morgan International Equity Portfolio			AST Templeton Global Bond Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	377,498			17,999,325			490,831			409,104			200,303
NET INVESTMENT INCOME (LOSS)	(377,498		)	(17,999,325		)	(490,831		)	(409,104		)	(200,303		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	193,311			53,326,646			2,803,043			1,339,988			141,459
Net change in unrealized appreciation (depreciation) on investments	3,453,620			161,726,756			6,115,409			4,586,814			76,278
NET GAIN (LOSS) ON INVESTMENTS	3,646,931			215,053,402			8,918,452			5,926,802			217,737
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	3,269,433		$	197,054,077		$	8,427,621		$	5,517,698		$	17,434

The accompanying notes are an integral part of these financial statements.

A9

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST Wellington Management Hedged Equity Portfolio		AST Capital Growth Asset Allocation Portfolio		AST Academic Strategies Asset Allocation Portfolio		AST Balanced Asset Allocation Portfolio		AST Preservation Asset Allocation Portfolio
ASSETS
Investment in the portfolios, at fair value	$	151,270,095	$	763,571,333	$	271,525,344	$	762,061,024	$	475,783,265
Net Assets	$	151,270,095	$	763,571,333	$	271,525,344	$	762,061,024	$	475,783,265
NET ASSETS, representing:
Accumulation units	$	151,270,095	$	763,571,333	$	271,525,344	$	762,061,024	$	475,783,265
	$	151,270,095	$	763,571,333	$	271,525,344	$	762,061,024	$	475,783,265
Units outstanding	10,000,155		41,083,525		19,466,804		43,886,605		31,602,913
Portfolio shares held	8,683,702		35,090,594		16,844,004		37,210,011		26,344,588
Portfolio net asset value per share	$	17.42	$	21.76	$	16.12	$	20.48	$	18.06
Investment in portfolio shares, at cost	$	109,252,969	$	501,703,885	$	210,122,639	$	491,949,805	$	351,056,497

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Wellington Management Hedged Equity Portfolio			AST Capital Growth Asset Allocation Portfolio			AST Academic Strategies Asset Allocation Portfolio			AST Balanced Asset Allocation Portfolio			AST Preservation Asset Allocation Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	2,264,493			11,611,844			4,402,472			11,671,327			7,440,780
NET INVESTMENT INCOME (LOSS)	(2,264,493		)	(11,611,844		)	(4,402,472		)	(11,671,327		)	(7,440,780		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	4,162,795			37,774,123			8,598,652			44,923,541			24,904,851
Net change in unrealized appreciation (depreciation) on investments	21,908,929			103,541,916			28,728,910			84,094,280			38,779,182
NET GAIN (LOSS) ON INVESTMENTS	26,071,724			141,316,039			37,327,562			129,017,821			63,684,033
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	23,807,231		$	129,704,195		$	32,925,090		$	117,346,494		$	56,243,253

The accompanying notes are an integral part of these financial statements.

A10

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST Fidelity Institutional AM℠ Quantitative Portfolio		AST Prudential Growth Allocation Portfolio		AST Advanced Strategies Portfolio		AST T. Rowe Price Large-Cap Growth Portfolio		AST Government Money Market Portfolio
ASSETS
Investment in the portfolios, at fair value	$	394,717,531	$	1,168,279,487	$	658,748,852	$	106,330,247	$	23,074,155
Net Assets	$	394,717,531	$	1,168,279,487	$	658,748,852	$	106,330,247	$	23,074,155
NET ASSETS, representing:
Accumulation units	$	394,717,531	$	1,168,279,487	$	658,748,852	$	106,330,247	$	23,074,155
	$	394,717,531	$	1,168,279,487	$	658,748,852	$	106,330,247	$	23,074,155
Units outstanding	25,119,485		65,524,882		36,239,627		3,187,195		2,483,844
Portfolio shares held	24,009,582		63,945,237		30,455,333		2,304,014		23,074,155
Portfolio net asset value per share	$	16.44	$	18.27	$	21.63	$	46.15	$	1.00
Investment in portfolio shares, at cost	$	275,980,905	$	894,285,091	$	411,757,380	$	66,157,838	$	23,074,155

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Fidelity Institutional AM℠ Quantitative Portfolio			AST Prudential Growth Allocation Portfolio			AST Advanced Strategies Portfolio			AST T. Rowe Price Large-Cap Growth Portfolio			AST Government Money Market Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	427,927
EXPENSES
Charges for mortality and expense risk,
and for administration	5,963,683			17,738,143			9,920,296			1,427,507			318,505
NET INVESTMENT INCOME (LOSS)	(5,963,683		)	(17,738,143		)	(9,920,296		)	(1,427,507		)	109,422
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	16,321,510			35,575,694			32,285,111			11,282,186			—
Net change in unrealized appreciation (depreciation) on investments	51,485,967			156,356,039			91,012,598			12,758,194			—
NET GAIN (LOSS) ON INVESTMENTS	67,807,477			191,931,733			123,297,709			24,040,380			—
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	61,843,794		$	174,193,590		$	113,377,413		$	22,612,873		$	109,422

The accompanying notes are an integral part of these financial statements.

A11

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST Small-Cap Growth Portfolio		AST BlackRock/Loomis Sayles Bond Portfolio		AST International Value Portfolio		AST International Growth Portfolio		AST Investment Grade Bond Portfolio
ASSETS
Investment in the portfolios, at fair value	$	27,923,218	$	191,074,981	$	14,999,156	$	24,731,561	$	109,751,462
Net Assets	$	27,923,218	$	191,074,981	$	14,999,156	$	24,731,561	$	109,751,462
NET ASSETS, representing:
Accumulation units	$	27,923,218	$	191,074,981	$	14,999,156	$	24,731,561	$	109,751,462
	$	27,923,218	$	191,074,981	$	14,999,156	$	24,731,561	$	109,751,462
Units outstanding	1,037,796		15,500,039		1,154,347		1,444,099		7,403,926
Portfolio shares held	526,357		12,910,472		698,936		1,204,655		13,191,281
Portfolio net asset value per share	$	53.05	$	14.80	$	21.46	$	20.53	$	8.32
Investment in portfolio shares, at cost	$	19,552,538	$	167,663,098	$	12,920,631	$	18,076,508	$	102,716,558

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Small-Cap Growth Portfolio			AST BlackRock/Loomis Sayles Bond Portfolio			AST International Value Portfolio			AST International Growth Portfolio			AST Investment Grade Bond Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	397,776			2,887,983			177,937			295,913			3,275,046
NET INVESTMENT INCOME (LOSS)	(397,776		)	(2,887,983		)	(177,937		)	(295,913		)	(3,275,046		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	2,347,320			5,155,927			311,769			1,259,661			23,138,442
Net change in unrealized appreciation (depreciation) on investments	4,440,078			11,279,611			2,089,555			4,994,484			(356,647		)
NET GAIN (LOSS) ON INVESTMENTS	6,787,398			16,435,538			2,401,324			6,254,145			22,781,795
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	6,389,622		$	13,547,555		$	2,223,387		$	5,958,232		$	19,506,749

The accompanying notes are an integral part of these financial statements.

A12

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST Western Asset Core Plus Bond Portfolio		AST Bond Portfolio 2019		AST Cohen & Steers Global Realty Portfolio		AST Parametric Emerging Markets Equity Portfolio		AST Goldman Sachs Small-Cap Value Portfolio
ASSETS
Investment in the portfolios, at fair value	$	128,739,295	$	—	$	8,790,411	$	25,713,559	$	34,288,722
Net Assets	$	128,739,295	$	—	$	8,790,411	$	25,713,559	$	34,288,722
NET ASSETS, representing:
Accumulation units	$	128,739,295	$	—	$	8,790,411	$	25,713,559	$	34,288,722
	$	128,739,295	$	—	$	8,790,411	$	25,713,559	$	34,288,722
Units outstanding	9,418,388		—		489,964		2,445,952		1,474,662
Portfolio shares held	9,156,422		—		588,381		2,610,514		1,369,905
Portfolio net asset value per share	$	14.06	$	—	$	14.94	$	9.85	$	25.03
Investment in portfolio shares, at cost	$	112,370,616	$	—	$	6,717,513	$	22,888,005	$	25,923,247

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Western Asset Core Plus Bond Portfolio			AST Bond Portfolio 2019			AST Cohen & Steers Global Realty Portfolio			AST Parametric Emerging Markets Equity Portfolio			AST Goldman Sachs Small-Cap Value Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019**			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	1,794,814			155,456			125,997			370,557			468,446
NET INVESTMENT INCOME (LOSS)	(1,794,814		)	(155,456		)	(125,997		)	(370,557		)	(468,446		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	3,292,254			275,406			514,019			317,140			2,217,673
Net change in unrealized appreciation (depreciation) on investments	11,081,571			(105,294		)	1,295,180			2,487,023			4,018,566
NET GAIN (LOSS) ON INVESTMENTS	14,373,825			170,112			1,809,199			2,804,163			6,236,239
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	12,579,011		$	14,656		$	1,683,202		$	2,433,606		$	5,767,793
**Date subaccount was no longer available for investment.

The accompanying notes are an integral part of these financial statements.

A13

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST AllianzGI World Trends Portfolio		AST J.P. Morgan Global Thematic Portfolio		AST Goldman Sachs Multi-Asset Portfolio		ProFund VP Consumer Services		ProFund VP Consumer Goods
ASSETS
Investment in the portfolios, at fair value	$	406,369,627	$	231,136,216	$	220,936,202	$	387,423	$	72,737
Net Assets	$	406,369,627	$	231,136,216	$	220,936,202	$	387,423	$	72,737
NET ASSETS, representing:
Accumulation units	$	406,369,627	$	231,136,216	$	220,936,202	$	387,423	$	72,737
	$	406,369,627	$	231,136,216	$	220,936,202	$	387,423	$	72,737
Units outstanding	26,974,702		14,054,368		16,100,311		13,672		3,481
Portfolio shares held	25,461,756		12,833,771		14,459,176		4,669		1,509
Portfolio net asset value per share	$	15.96	$	18.01	$	15.28	$	82.97	$	48.21
Investment in portfolio shares, at cost	$	292,286,936	$	165,376,837	$	176,594,464	$	289,683	$	75,142

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST AllianzGI World Trends Portfolio			AST J.P. Morgan Global Thematic Portfolio			AST Goldman Sachs Multi-Asset Portfolio			ProFund VP Consumer Services			ProFund VP Consumer Goods
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	1,290
EXPENSES
Charges for mortality and expense risk,
and for administration	6,031,104			3,420,589			3,243,208			5,105			1,310
NET INVESTMENT INCOME (LOSS)	(6,031,104		)	(3,420,589		)	(3,243,208		)	(5,105		)	(20		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			16,161			13,648
Net realized gain (loss) on shares redeemed	13,234,132			7,602,655			5,396,178			10,485			(1,573		)
Net change in unrealized appreciation (depreciation) on investments	50,854,727			30,664,836			24,986,534			42,535			8,573
NET GAIN (LOSS) ON INVESTMENTS	64,088,859			38,267,491			30,382,712			69,181			20,648
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	58,057,755		$	34,846,902		$	27,139,504		$	64,076		$	20,628

The accompanying notes are an integral part of these financial statements.

A14

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	ProFund VP Financials		ProFund VP Health Care		ProFund VP Industrials		ProFund VP Mid-Cap Growth		ProFund VP Mid-Cap Value
ASSETS
Investment in the portfolios, at fair value	$	337,907	$	357,469	$	352,060	$	139,954	$	316,058
Net Assets	$	337,907	$	357,469	$	352,060	$	139,954	$	316,058
NET ASSETS, representing:
Accumulation units	$	337,907	$	357,469	$	352,060	$	139,954	$	316,058
	$	337,907	$	357,469	$	352,060	$	139,954	$	316,058
Units outstanding	21,881		12,908		16,860		6,611		16,618
Portfolio shares held	7,336		4,772		4,442		3,245		7,498
Portfolio net asset value per share	$	46.06	$	74.91	$	79.25	$	43.13	$	42.15
Investment in portfolio shares, at cost	$	190,528	$	288,881	$	309,631	$	140,029	$	307,763

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	ProFund VP Financials			ProFund VP Health Care			ProFund VP Industrials			ProFund VP Mid-Cap Growth			ProFund VP Mid-Cap Value
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	1,916		$	—		$	—		$	—		$	611
EXPENSES
Charges for mortality and expense risk,
and for administration	5,083			4,460			6,130			2,331			4,477
NET INVESTMENT INCOME (LOSS)	(3,167		)	(4,460		)	(6,130		)	(2,331		)	(3,866		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	17,998			44,311			60,393			13,297			10,127
Net realized gain (loss) on shares redeemed	22,638			6,437			47,299			1,710			(1,391		)
Net change in unrealized appreciation (depreciation) on investments	52,246			7,027			12,211			25,967			47,418
NET GAIN (LOSS) ON INVESTMENTS	92,882			57,775			119,903			40,974			56,154
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	89,715		$	53,315		$	113,773		$	38,643		$	52,288

The accompanying notes are an integral part of these financial statements.

A15

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	ProFund VP Real Estate		ProFund VP Small-Cap Growth		ProFund VP Small-Cap Value		ProFund VP Telecommu-nications		ProFund VP Utilities
ASSETS
Investment in the portfolios, at fair value	$	136,712	$	135,042	$	228,181	$	22,980	$	159,406
Net Assets	$	136,712	$	135,042	$	228,181	$	22,980	$	159,406
NET ASSETS, representing:
Accumulation units	$	136,712	$	135,042	$	228,181	$	22,980	$	159,406
	$	136,712	$	135,042	$	228,181	$	22,980	$	159,406
Units outstanding	8,688		5,841		11,524		1,902		8,762
Portfolio shares held	2,102		3,767		4,688		729		3,160
Portfolio net asset value per share	$	65.05	$	35.85	$	48.67	$	31.53	$	50.44
Investment in portfolio shares, at cost	$	116,695	$	136,612	$	219,759	$	23,424	$	141,230

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	ProFund VP Real Estate		ProFund VP Small-Cap Growth			ProFund VP Small-Cap Value			ProFund VP Telecommu-nications			ProFund VP Utilities
	1/1/2019		1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to		to			to			to			to
	12/31/2019		12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	2,265	$	—		$	—		$	1,300		$	2,647
EXPENSES
Charges for mortality and expense risk,
and for administration	1,989		2,096			3,117			572			2,236
NET INVESTMENT INCOME (LOSS)	276		(2,096		)	(3,117		)	728			411
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	5,830		15,914			—			—			9,937
Net realized gain (loss) on shares redeemed	2,303		3,803			(565		)	(831		)	3,276
Net change in unrealized appreciation (depreciation) on investments	20,373		9,733			38,680			4,350			11,725
NET GAIN (LOSS) ON INVESTMENTS	28,506		29,450			38,115			3,519			24,938
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	28,782	$	27,354		$	34,998		$	4,247		$	25,349

The accompanying notes are an integral part of these financial statements.

A16

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	ProFund VP Large-Cap Growth		ProFund VP Large-Cap Value		AST Bond Portfolio 2020		AST Jennison Large-Cap Growth Portfolio		AST Bond Portfolio 2021
ASSETS
Investment in the portfolios, at fair value	$	230,721	$	239,676	$	10,875,262	$	32,554,732	$	4,076,336
Net Assets	$	230,721	$	239,676	$	10,875,262	$	32,554,732	$	4,076,336
NET ASSETS, representing:
Accumulation units	$	230,721	$	239,676	$	10,875,262	$	32,554,732	$	4,076,336
	$	230,721	$	239,676	$	10,875,262	$	32,554,732	$	4,076,336
Units outstanding	9,323		14,127		915,732		1,133,491		322,365
Portfolio shares held	3,585		5,035		1,531,727		803,622		262,144
Portfolio net asset value per share	$	64.35	$	47.60	$	7.10	$	40.51	$	15.55
Investment in portfolio shares, at cost	$	216,311	$	214,876	$	10,681,368	$	22,085,375	$	3,922,834

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	ProFund VP Large-Cap Growth			ProFund VP Large-Cap Value			AST Bond Portfolio 2020			AST Jennison Large-Cap Growth Portfolio			AST Bond Portfolio 2021
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	2,264		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	3,145			3,208			149,756			404,587			120,939
NET INVESTMENT INCOME (LOSS)	(3,145		)	(944		)	(149,756		)	(404,587		)	(120,939		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	48,206			23,421			—			—			—
Net realized gain (loss) on shares redeemed	1,487			3,093			54,677			2,469,095			316,364
Net change in unrealized appreciation (depreciation) on investments	1,367			20,703			151,479			5,694,144			(58,875		)
NET GAIN (LOSS) ON INVESTMENTS	51,060			47,217			206,156			8,163,239			257,489
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	47,915		$	46,273		$	56,400		$	7,758,652		$	136,550

The accompanying notes are an integral part of these financial statements.

A17

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	Wells Fargo VT International Equity Fund (Class 1)		Wells Fargo VT Omega Growth Fund (Class 1)		AST Bond Portfolio 2022		AST Quantitative Modeling Portfolio		AST BlackRock Global Strategies Portfolio
ASSETS
Investment in the portfolios, at fair value	$	49,933	$	557,701	$	3,322,718	$	66,031,276	$	155,802,514
Net Assets	$	49,933	$	557,701	$	3,322,718	$	66,031,276	$	155,802,514
NET ASSETS, representing:
Accumulation units	$	49,933	$	557,701	$	3,322,718	$	66,031,276	$	155,802,514
	$	49,933	$	557,701	$	3,322,718	$	66,031,276	$	155,802,514
Units outstanding	2,849		104,446		283,851		4,023,949		11,474,268
Portfolio shares held	27,436		17,488		231,065		3,490,025		9,974,553
Portfolio net asset value per share	$	1.82	$	31.89	$	14.38	$	18.92	$	15.62
Investment in portfolio shares, at cost	$	80,782	$	414,852	$	3,098,077	$	53,355,789	$	115,540,631

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	Wells Fargo VT International Equity Fund (Class 1)			Wells Fargo VT Omega Growth Fund (Class 1)			AST Bond Portfolio 2022			AST Quantitative Modeling Portfolio			AST BlackRock Global Strategies Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	1,844		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	775			8,749			94,599			417,499			2,350,657
NET INVESTMENT INCOME (LOSS)	1,069			(8,749		)	(94,599		)	(417,499		)	(2,350,657		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	18,623			63,037			—			—			—
Net realized gain (loss) on shares redeemed	(419		)	2,280			171,306			999,300			4,637,407
Net change in unrealized appreciation (depreciation) on investments	(13,590		)	88,338			70,519			10,374,777			19,465,290
NET GAIN (LOSS) ON INVESTMENTS	4,614			153,655			241,825			11,374,077			24,102,697
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	5,683		$	144,906		$	147,226		$	10,956,578		$	21,752,040

The accompanying notes are an integral part of these financial statements.

A18

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	Wells Fargo VT Opportunity Fund (Class 1)		AST Prudential Core Bond Portfolio		AST Bond Portfolio 2023		AST MFS Growth Allocation Portfolio		AST Western Asset Emerging Markets Debt Portfolio
ASSETS
Investment in the portfolios, at fair value	$	164,146	$	35,623,059	$	543,471	$	75,360,742	$	1,034,780
Net Assets	$	164,146	$	35,623,059	$	543,471	$	75,360,742	$	1,034,780
NET ASSETS, representing:
Accumulation units	$	164,146	$	35,623,059	$	543,471	$	75,360,742	$	1,034,780
	$	164,146	$	35,623,059	$	543,471	$	75,360,742	$	1,034,780
Units outstanding	6,474		2,968,124		53,583		4,961,321		89,112
Portfolio shares held	6,180		2,660,423		44,878		4,326,105		84,679
Portfolio net asset value per share	$	26.56	$	13.39	$	12.11	$	17.42	$	12.22
Investment in portfolio shares, at cost	$	124,607	$	32,211,048	$	447,928	$	58,401,501	$	912,381

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	Wells Fargo VT Opportunity Fund (Class 1)			AST Prudential Core Bond Portfolio			AST Bond Portfolio 2023			AST MFS Growth Allocation Portfolio			AST Western Asset Emerging Markets Debt Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	824		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	2,584			378,170			15,162			1,002,158			6,736
NET INVESTMENT INCOME (LOSS)	(1,760		)	(378,170		)	(15,162		)	(1,002,158		)	(6,736		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	17,030			—			—			—			—
Net realized gain (loss) on shares redeemed	783			797,587			60,215			1,835,910			8,232
Net change in unrealized appreciation (depreciation) on investments	21,543			2,141,894			(12,285		)	11,206,354			116,063
NET GAIN (LOSS) ON INVESTMENTS	39,356			2,939,481			47,930			13,042,264			124,295
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	37,596		$	2,561,311		$	32,768		$	12,040,106		$	117,559

The accompanying notes are an integral part of these financial statements.

A19

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST MFS Large-Cap Value Portfolio		AST Bond Portfolio 2024		AST AQR Emerging Markets Equity Portfolio		AST ClearBridge Dividend Growth Portfolio		AST Multi-Sector Fixed Income Portfolio
ASSETS
Investment in the portfolios, at fair value	$	20,655,454	$	1,098,051	$	3,165,263	$	17,385,877	$	2,116,571,955
Net Assets	$	20,655,454	$	1,098,051	$	3,165,263	$	17,385,877	$	2,116,571,955
NET ASSETS, representing:
Accumulation units	$	20,655,454	$	1,098,051	$	3,165,263	$	17,385,877	$	2,116,571,955
	$	20,655,454	$	1,098,051	$	3,165,263	$	17,385,877	$	2,116,571,955
Units outstanding	1,033,296		107,375		264,152		893,894		174,543,032
Portfolio shares held	884,223		94,092		258,600		790,267		153,042,079
Portfolio net asset value per share	$	23.36	$	11.67	$	12.24	$	22.00	$	13.83
Investment in portfolio shares, at cost	$	16,490,271	$	1,020,347	$	2,874,971	$	13,073,286	$	1,741,524,151

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST MFS Large-Cap Value Portfolio			AST Bond Portfolio 2024			AST AQR Emerging Markets Equity Portfolio			AST ClearBridge Dividend Growth Portfolio			AST Multi-Sector Fixed Income Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	220,029			42,277			24,021			218,228			34,614,882
NET INVESTMENT INCOME (LOSS)	(220,029		)	(42,277		)	(24,021		)	(218,228		)	(34,614,882		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	794,692			152,806			(2,604		)	1,096,145			1,690,250
Net change in unrealized appreciation (depreciation) on investments	3,550,872			19,400			454,005			2,813,652			294,984,344
NET GAIN (LOSS) ON INVESTMENTS	4,345,564			172,206			451,401			3,909,797			296,674,594
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	4,125,535		$	129,929		$	427,380		$	3,691,569		$	262,059,712

The accompanying notes are an integral part of these financial statements.

A20

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST AQR Large-Cap Portfolio		AST QMA Large-Cap Portfolio		AST Bond Portfolio 2025		AST T. Rowe Price Growth Opportunities Portfolio		AST Goldman Sachs Global Growth Allocation Portfolio
ASSETS
Investment in the portfolios, at fair value	$	2,149,089	$	1,804,267	$	718,971	$	244,962,775	$	5,096,061
Net Assets	$	2,149,089	$	1,804,267	$	718,971	$	244,962,775	$	5,096,061
NET ASSETS, representing:
Accumulation units	$	2,149,089	$	1,804,267	$	718,971	$	244,962,775	$	5,096,061
	$	2,149,089	$	1,804,267	$	718,971	$	244,962,775	$	5,096,061
Units outstanding	117,637		95,655		61,906		16,860,533		389,549
Portfolio shares held	104,173		83,454		54,385		15,464,822		371,433
Portfolio net asset value per share	$	20.63	$	21.62	$	13.22	$	15.84	$	13.72
Investment in portfolio shares, at cost	$	1,684,667	$	1,405,824	$	664,318	$	201,429,036	$	4,169,694

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST AQR Large-Cap Portfolio			AST QMA Large-Cap Portfolio			AST Bond Portfolio 2025			AST T. Rowe Price Growth Opportunities Portfolio			AST Goldman Sachs Global Growth Allocation Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	18,167			12,732			30,039			2,965,540			28,081
NET INVESTMENT INCOME (LOSS)	(18,167		)	(12,732		)	(30,039		)	(2,965,540		)	(28,081		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	65,858			39,535			142,747			765,078			95,240
Net change in unrealized appreciation (depreciation) on investments	329,720			296,361			(8,800		)	40,547,081			742,599
NET GAIN (LOSS) ON INVESTMENTS	395,578			335,896			133,947			41,312,159			837,839
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	377,411		$	323,164		$	103,908		$	38,346,619		$	809,758

The accompanying notes are an integral part of these financial statements.

A21

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST T. Rowe Price Diversified Real Growth Portfolio		AST Prudential Flexible Multi-Strategy Portfolio		AST Franklin Templeton K2 Global Absolute Return Portfolio		AST Managed Equity Portfolio		AST Managed Fixed Income Portfolio
ASSETS
Investment in the portfolios, at fair value	$	10,229,046	$	15,829,465	$	2,759,127	$	4,021,143	$	6,441,666
Net Assets	$	10,229,046	$	15,829,465	$	2,759,127	$	4,021,143	$	6,441,666
NET ASSETS, representing:
Accumulation units	$	10,229,046	$	15,829,465	$	2,759,127	$	4,021,143	$	6,441,666
	$	10,229,046	$	15,829,465	$	2,759,127	$	4,021,143	$	6,441,666
Units outstanding	714,650		1,170,474		273,312		285,089		580,859
Portfolio shares held	682,391		1,107,730		266,840		274,107		560,145
Portfolio net asset value per share	$	14.99	$	14.29	$	10.34	$	14.67	$	11.50
Investment in portfolio shares, at cost	$	7,995,995	$	13,147,612	$	2,589,563	$	3,192,309	$	5,839,615

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST T. Rowe Price Diversified Real Growth Portfolio			AST Prudential Flexible Multi-Strategy Portfolio			AST Franklin Templeton K2 Global Absolute Return Portfolio			AST Managed Equity Portfolio			AST Managed Fixed Income Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	58,523			86,183			15,878			21,900			39,840
NET INVESTMENT INCOME (LOSS)	(58,523		)	(86,183		)	(15,878		)	(21,900		)	(39,840		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	170,501			155,193			14,290			38,644			76,204
Net change in unrealized appreciation (depreciation) on investments	1,584,097			1,798,522			150,646			766,505			445,001
NET GAIN (LOSS) ON INVESTMENTS	1,754,598			1,953,715			164,936			805,149			521,205
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	1,696,075		$	1,867,532		$	149,058		$	783,249		$	481,365

\

The accompanying notes are an integral part of these financial statements.

A22

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST FQ Absolute Return Currency Portfolio		AST Jennison Global Infrastructure Portfolio		AST PIMCO Dynamic Bond Portfolio		AST Legg Mason Diversified Growth Portfolio		AST Bond Portfolio 2026
ASSETS
Investment in the portfolios, at fair value	$	452,458	$	2,107,704	$	1,898,253	$	53,391,583	$	10,189,255
Net Assets	$	452,458	$	2,107,704	$	1,898,253	$	53,391,583	$	10,189,255
NET ASSETS, representing:
Accumulation units	$	452,458	$	2,107,704	$	1,898,253	$	53,391,583	$	10,189,255
	$	452,458	$	2,107,704	$	1,898,253	$	53,391,583	$	10,189,255
Units outstanding	49,146		155,093		191,121		4,211,030		977,547
Portfolio shares held	48,185		149,165		187,946		3,905,749		884,484
Portfolio net asset value per share	$	9.39	$	14.13	$	10.10	$	13.67	$	11.52
Investment in portfolio shares, at cost	$	476,864	$	1,625,974	$	1,833,132	$	45,015,471	$	9,650,985

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST FQ Absolute Return Currency Portfolio			AST Jennison Global Infrastructure Portfolio			AST PIMCO Dynamic Bond Portfolio			AST Legg Mason Diversified Growth Portfolio			AST Bond Portfolio 2026
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	2,712			11,353			8,832			710,403			258,282
NET INVESTMENT INCOME (LOSS)	(2,712		)	(11,353		)	(8,832		)	(710,403		)	(258,282		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	(2,163		)	40,750			3,412			406,013			899,710
Net change in unrealized appreciation (depreciation) on investments	(13,326		)	426,833			66,850			7,237,832			400,353
NET GAIN (LOSS) ON INVESTMENTS	(15,489		)	467,583			70,262			7,643,845			1,300,063
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	(18,201	)	$	456,230		$	61,430		$	6,933,442		$	1,041,781

The accompanying notes are an integral part of these financial statements.

A23

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST AB Global Bond Portfolio		AST Goldman Sachs Global Income Portfolio		AST Morgan Stanley Multi-Asset Portfolio		AST Wellington Management Global Bond Portfolio		AST Neuberger Berman Long/Short Portfolio
ASSETS
Investment in the portfolios, at fair value	$	1,988,036	$	813,833	$	—	$	861,408	$	2,298,223
Net Assets	$	1,988,036	$	813,833	$	—	$	861,408	$	2,298,223
NET ASSETS, representing:
Accumulation units	$	1,988,036	$	813,833	$	—	$	861,408	$	2,298,223
	$	1,988,036	$	813,833	$	—	$	861,408	$	2,298,223
Units outstanding	176,306		72,348		—		75,864		194,594
Portfolio shares held	170,063		69,499		—		73,063		190,250
Portfolio net asset value per share	$	11.69	$	11.71	$	—	$	11.79	$	12.08
Investment in portfolio shares, at cost	$	1,831,821	$	756,943	$	—	$	789,096	$	2,045,608

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST AB Global Bond Portfolio			AST Goldman Sachs Global Income Portfolio			AST Morgan Stanley Multi-Asset Portfolio			AST Wellington Management Global Bond Portfolio			AST Neuberger Berman Long/Short Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			06/28/2019**			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	10,864			4,058			979			4,782			12,919
NET INVESTMENT INCOME (LOSS)	(10,864		)	(4,058		)	(979		)	(4,782		)	(12,919		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	23,233			2,285			1,691			10,411			18,408
Net change in unrealized appreciation (depreciation) on investments	103,027			49,739			462			38,630			288,364
NET GAIN (LOSS) ON INVESTMENTS	126,260			52,024			2,153			49,041			306,772
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	115,396		$	47,966		$	1,174		$	44,259		$	293,853
**Date subaccount was no longer available for investment.

The accompanying notes are an integral part of these financial statements.

A24

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST Wellington Management Real Total Return Portfolio		AST QMA International Core Equity Portfolio		AST Managed Alternatives Portfolio		AST Emerging Managers Diversified Portfolio		AST Columbia Adaptive Risk Allocation Portfolio
ASSETS
Investment in the portfolios, at fair value	$	—	$	1,085,455	$	2,215,545	$	—	$	—
Net Assets	$	—	$	1,085,455	$	2,215,545	$	—	$	—
NET ASSETS, representing:
Accumulation units	$	—	$	1,085,455	$	2,215,545	$	—	$	—
	$	—	$	1,085,455	$	2,215,545	$	—	$	—
Units outstanding	—		94,335		222,461		—		—
Portfolio shares held	—		86,011		217,423		—		—
Portfolio net asset value per share	$	—	$	12.62	$	10.19	$	—	$	—
Investment in portfolio shares, at cost	$	—	$	1,006,176	$	2,141,562	$	—	$	—

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Wellington Management Real Total Return Portfolio			AST QMA International Core Equity Portfolio			AST Managed Alternatives Portfolio			AST Emerging Managers Diversified Portfolio			AST Columbia Adaptive Risk Allocation Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	06/28/2019**			12/31/2019			12/31/2019			06/28/2019**			01/25/2019**
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	1,170			6,055			12,481			2,327			606
NET INVESTMENT INCOME (LOSS)	(1,170		)	(6,055		)	(12,481		)	(2,327		)	(606		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	(4,127		)	4,046			4,766			106,560			126,940
Net change in unrealized appreciation (depreciation) on investments	18,113			152,164			99,489			(24,889		)	(72,582		)
NET GAIN (LOSS) ON INVESTMENTS	13,986			156,210			104,255			81,671			54,358
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	12,816		$	150,155		$	91,774		$	79,344		$	53,752
**Date subaccount was no longer available for investment.

The accompanying notes are an integral part of these financial statements.

A25

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	Blackrock Global Allocation V.I. Fund (Class III)		JPMorgan Insurance Trust Income Builder Portfolio (Class 2)		AST Bond Portfolio 2027		NVIT Emerging Markets Fund (Class D)		AST Bond Portfolio 2028
ASSETS
Investment in the portfolios, at fair value	$	5,332,212	$	2,482,236	$	5,539,254	$	484,541	$	1,061,929
Net Assets	$	5,332,212	$	2,482,236	$	5,539,254	$	484,541	$	1,061,929
NET ASSETS, representing:
Accumulation units	$	5,332,212	$	2,482,236	$	5,539,254	$	484,541	$	1,061,929
	$	5,332,212	$	2,482,236	$	5,539,254	$	484,541	$	1,061,929
Units outstanding	427,246		198,648		531,908		36,732		100,738
Portfolio shares held	368,247		223,223		490,634		36,542		95,070
Portfolio net asset value per share	$	14.48	$	11.12	$	11.29	$	13.26	$	11.17
Investment in portfolio shares, at cost	$	5,162,993	$	2,298,978	$	5,062,852	$	397,796	$	969,318

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	Blackrock Global Allocation V.I. Fund (Class III)		JPMorgan Insurance Trust Income Builder Portfolio (Class 2)		AST Bond Portfolio 2027			NVIT Emerging Markets Fund (Class D)		AST Bond Portfolio 2028
	1/1/2019		1/1/2019		1/1/2019			1/1/2019		1/1/2019
	to		to		to			to		to
	12/31/2019		12/31/2019		12/31/2019			12/31/2019		12/31/2019
INVESTMENT INCOME
Dividend income	$	65,763	$	72,244	$	—		$	9,562	$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	34,422		14,560		176,149			6,674		39,522
NET INVESTMENT INCOME (LOSS)	31,341		57,684		(176,149		)	2,888		(39,522		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	210,071		6,081		—			—		—
Net realized gain (loss) on shares redeemed	27,099		12,372		635,981			7,283		355,477
Net change in unrealized appreciation (depreciation) on investments	606,493		215,216		394,082			73,739		(83,533		)
NET GAIN (LOSS) ON INVESTMENTS	843,663		233,669		1,030,063			81,022		271,944
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	875,004	$	291,353	$	853,914		$	83,910	$	232,422

The accompanying notes are an integral part of these financial statements.

A26

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNTS
	AST Bond Portfolio 2029		AST American Funds Growth Allocation Portfolio		AST Bond Portfolio 2030		AST BlackRock 80/20 Target Allocation ETF Portfolio		AST BlackRock 60/40 Target Allocation ETF Portfolio
ASSETS
Investment in the portfolios, at fair value	$	4,001,807	$	74,239,429	$	1,942,445	$	27,462,520	$	18,354,476
Net Assets	$	4,001,807	$	74,239,429	$	1,942,445	$	27,462,520	$	18,354,476
NET ASSETS, representing:
Accumulation units	$	4,001,807	$	74,239,429	$	1,942,445	$	27,462,520	$	18,354,476
	$	4,001,807	$	74,239,429	$	1,942,445	$	27,462,520	$	18,354,476
Units outstanding	376,784		6,508,627		173,249		2,254,409		1,561,045
Portfolio shares held	362,154		6,356,115		169,794		2,221,887		1,538,514
Portfolio net asset value per share	$	11.05	$	11.68	$	11.44	$	12.36	$	11.93
Investment in portfolio shares, at cost	$	3,905,500	$	66,180,633	$	1,956,384	$	25,475,123	$	17,240,798

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Bond Portfolio 2029			AST American Funds Growth Allocation Portfolio			AST Bond Portfolio 2030			AST BlackRock 80/20 Target Allocation ETF Portfolio			AST BlackRock 60/40 Target Allocation ETF Portfolio
	1/1/2019			1/1/2019			1/2/2019*			1/28/2019*			1/28/2019*
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	44,003			731,228			18,767			164,217			105,319
NET INVESTMENT INCOME (LOSS)	(44,003		)	(731,228		)	(18,767		)	(164,217		)	(105,319		)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	26,334			56,778			(7,590		)	18,572			3,739
Net change in unrealized appreciation (depreciation) on investments	91,651			9,425,619			(13,939		)	1,987,397			1,113,677
NET GAIN (LOSS) ON INVESTMENTS	117,985			9,482,397			(21,529		)	2,005,969			1,117,416
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	73,982		$	8,751,169		$	(40,296	)	$	1,841,752		$	1,012,097
*Date subaccount became available for investment.

The accompanying notes are an integral part of these financial statements.

A27

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF NET ASSETS

December 31, 2019

	SUBACCOUNT
	AST Dimensional Global Core Allocation Portfolio
ASSETS
Investment in the portfolios, at fair value	$	8,576
Net Assets	$	8,576
NET ASSETS, representing:
Accumulation units	$	8,576
	$	8,576
Units outstanding	833
Portfolio shares held	831
Portfolio net asset value per share	$	10.32
Investment in portfolio shares, at cost	$	8,518

STATEMENTS OF OPERATIONS

For the period ended December 31, 2019

	SUBACCOUNT
	AST Dimensional Global Core Allocation Portfolio
	11/18/2019*
	to
	12/31/2019
INVESTMENT INCOME
Dividend income	$	—
EXPENSES
Charges for mortality and expense risk,
and for administration	4
NET INVESTMENT INCOME (LOSS)	(4		)
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Capital gains distributions received	—
Net realized gain (loss) on shares redeemed	—
Net change in unrealized appreciation (depreciation) on investments	58
NET GAIN (LOSS) ON INVESTMENTS	58
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	54
*Date subaccount became available for investment.

The accompanying notes are an integral part of these financial statements.

A28

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	Prudential Government Money Market Portfolio			Prudential Diversified Bond Portfolio			Prudential Equity Portfolio (Class I)			Prudential Value Portfolio (Class I)			Prudential High Yield Bond Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	29,044		$	(184,240	)	$	(237,719	)	$	(273,791	)	$	(175,874	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	—			486,196			1,106,794			1,036,963			73,379
Net change in unrealized appreciation (depreciation) on investments	—			893,605			3,082,402			3,220,896			1,725,467
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	29,044			1,195,561			3,951,477			3,984,068			1,622,972
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	48,463			1,254			38,079			60,573			35,378
Annuity payments	(1,147		)	(86,659		)	(65,576		)	(78,998		)	(124,438		)
Surrenders, withdrawals and death benefits	(977,941		)	(1,866,134		)	(1,560,374		)	(1,894,956		)	(1,225,951		)
Net transfers between other subaccounts
or fixed rate option	238,187			121,750			(222,907		)	(154,199		)	(163,600		)
Miscellaneous transactions	(1,460		)	160			(6,979		)	(5,484		)	(133		)
Other charges	(5,414		)	(3,662		)	(8,026		)	(19,254		)	(13,399		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(699,312		)	(1,833,291		)	(1,825,783		)	(2,092,318		)	(1,492,143		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(670,268		)	(637,730		)	2,125,694			1,891,750			130,829
NET ASSETS
Beginning of period	6,213,434			13,399,464			15,238,467			17,214,366			11,645,533
End of period	$	5,543,166		$	12,761,734		$	17,364,161		$	19,106,116		$	11,776,362
Beginning units	5,292,009			4,972,262			4,371,001			5,460,664			2,557,491
Units issued	317,774			159,742			14,201			59,922			30,027
Units redeemed	(989,936		)	(805,592		)	(480,008		)	(634,708		)	(320,635		)
Ending units	4,619,847			4,326,412			3,905,194			4,885,878			2,266,883

The accompanying notes are an integral part of these financial statements.

A29

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	Prudential Stock Index Portfolio			Prudential Global Portfolio			Prudential Jennison Portfolio (Class I)			Prudential Small Capitalization Stock Portfolio			T. Rowe Price International Stock Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(343,752	)	$	(60,071	)	$	(342,503	)	$	(74,082	)	$	15,004
Capital gains distributions received	—			—			—			—			64,140
Net realized gain (loss) on shares redeemed	827,049			296,506			2,272,139			235,388			10,147
Net change in unrealized appreciation (depreciation) on investments	6,022,830			800,285			4,535,390			988,498			259,641
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	6,506,127			1,036,720			6,465,026			1,149,804			348,932
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	5,719,728			2,084			21,285			1,353,641			—
Annuity payments	(58,980		)	(522		)	(50,268		)	(11,044		)	—
Surrenders, withdrawals and death benefits	(2,215,752		)	(470,954		)	(2,573,872		)	(346,209		)	(115,355		)
Net transfers between other subaccounts
or fixed rate option	1,886,329			(16,433		)	(318,698		)	123,020			(27,612		)
Miscellaneous transactions	7,775			(5,475		)	1,333			(303		)	(27		)
Other charges	(36,843		)	(3,255		)	(15,136		)	(11,992		)	(251		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	5,302,257			(494,555		)	(2,935,356		)	1,107,113			(143,245		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	11,808,384			542,165			3,529,670			2,256,917			205,687
NET ASSETS
Beginning of period	20,531,253			3,778,794			21,649,322			5,003,796			1,401,452
End of period	$	32,339,637		$	4,320,959		$	25,178,992		$	7,260,713		$	1,607,139
Beginning units	5,459,734			1,455,883			5,051,540			831,879			821,571
Units issued	1,042,322			11,802			33,790			206,003			10,240
Units redeemed	(825,811		)	(204,801		)	(588,856		)	(112,878		)	(84,089		)
Ending units	5,676,245			1,262,884			4,496,474			925,004			747,722

The accompanying notes are an integral part of these financial statements.

A30

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	T. Rowe Price Equity Income Portfolio (Equity Income Class)			Invesco V.I. Core Equity Fund (Series I)			Janus Henderson VIT Research Portfolio (Institutional Shares)			Janus Henderson VIT Overseas Portfolio (Institutional Shares)			MFS® Research Series (Initial Class)
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	54,796		$	(31,579	)	$	(48,214	)	$	21,596		$	(8,842	)
Capital gains distributions received	373,142			801,194			534,905			—			148,665
Net realized gain (loss) on shares redeemed	51,571			130,953			93,581			(37,140		)	22,068
Net change in unrealized appreciation (depreciation) on investments	800,144			756,329			878,394			983,805			222,644
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	1,279,653			1,656,897			1,458,666			968,261			384,535
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	16,071			18,068			13,415			4,381			2,227
Annuity payments	(4,563		)	(12,029		)	—			—			(11,324		)
Surrenders, withdrawals and death benefits	(223,860		)	(491,522		)	(268,668		)	(368,126		)	(47,027		)
Net transfers between other subaccounts
or fixed rate option	(21,450		)	(36,568		)	(37,634		)	(2,203		)	(13,918		)
Miscellaneous transactions	365			72			(6		)	341			(1		)
Other charges	(1,195		)	(1,771		)	(1,247		)	(1,252		)	(376		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(234,632		)	(523,750		)	(294,140		)	(366,859		)	(70,419		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	1,045,021			1,133,147			1,164,526			601,402			314,116
NET ASSETS
Beginning of period	5,268,523			6,283,767			4,433,711			3,989,799			1,261,738
End of period	$	6,313,544		$	7,416,914		$	5,598,237		$	4,591,201		$	1,575,854
Beginning units	1,464,459			2,291,230			1,399,058			1,334,864			387,107
Units issued	13,457			8,570			4,542			32,818			906
Units redeemed	(70,025		)	(173,120		)	(81,983		)	(140,782		)	(19,254		)
Ending units	1,407,891			2,126,680			1,321,617			1,226,900			368,759

The accompanying notes are an integral part of these financial statements.

A31

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	MFS® Growth Series (Initial Class)			American Century VP Value Fund (Class I)			Franklin Small-Mid Cap Growth VIP Fund (Class 2)			Prudential Jennison 20/20 Focus Portfolio (Class I)			Davis Value Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(91,374	)	$	12,852		$	(29,701	)	$	(43,617	)	$	118
Capital gains distributions received	573,893			104,910			298,243			—			55,958
Net realized gain (loss) on shares redeemed	286,661			74,747			(38,743		)	280,528			(114,094		)
Net change in unrealized appreciation (depreciation) on investments	1,194,171			207,605			307,696			507,385			381,690
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	1,963,351			400,114			537,495			744,296			323,672
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	4,468			3,692			1,839			367			1,902
Annuity payments	(4,814		)	(24,493		)	(1,761		)	(85,529		)	(58,375		)
Surrenders, withdrawals and death benefits	(398,050		)	(160,746		)	(219,385		)	(252,372		)	(343,851		)
Net transfers between other subaccounts
or fixed rate option	(29,232		)	(5,302		)	(40,313		)	(96,771		)	(40,280		)
Miscellaneous transactions	147			(20		)	(17		)	(71		)	(17		)
Other charges	(1,718		)	(381		)	(524		)	(507		)	(309		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(429,199		)	(187,250		)	(260,161		)	(434,883		)	(440,930		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	1,534,152			212,864			277,334			309,413			(117,258		)
NET ASSETS
Beginning of period	5,549,770			1,676,664			1,867,922			2,921,183			1,306,683
End of period	$	7,083,922		$	1,889,528		$	2,145,256		$	3,230,596		$	1,189,425
Beginning units	1,420,850			478,153			609,960			945,238			720,713
Units issued	24,043			7,177			5,476			1,567			1,944
Units redeemed	(113,639		)	(55,156		)	(74,494		)	(125,718		)	(215,544		)
Ending units	1,331,254			430,174			540,942			821,087			507,113

The accompanying notes are an integral part of these financial statements.

A32

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AB VPS Large Cap Growth Portfolio (Class B)			Prudential SP Small Cap Value Portfolio (Class I)			Janus Henderson VIT Research Portfolio (Service Shares)			SP Prudential U.S. Emerging Growth Portfolio (Class I)			Prudential SP International Growth Portfolio (Class I)
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(5,776	)	$	(105,181	)	$	(6,110	)	$	(102,359	)	$	(27,529	)
Capital gains distributions received	52,936			—			51,487			—			—
Net realized gain (loss) on shares redeemed	22,144			343,032			8,257			489,507			73,763
Net change in unrealized appreciation (depreciation) on investments	47,138			1,020,838			80,901			1,556,388			423,010
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	116,442			1,258,689			134,535			1,943,536			469,244
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	—			2,201			—			8,767			1,595
Annuity payments	—			(27,586		)	—			(27,350		)	—
Surrenders, withdrawals and death benefits	(57,102		)	(456,594		)	(11,748		)	(505,036		)	(189,472		)
Net transfers between other subaccounts
or fixed rate option	4,622			63,475			(7,499		)	(211,450		)	(59,403		)
Miscellaneous transactions	(41		)	519			—			(394		)	(3,206		)
Other charges	(69		)	(16,972		)	(915		)	(13,122		)	(2,989		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(52,590		)	(434,957		)	(20,162		)	(748,585		)	(253,475		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	63,852			823,732			114,373			1,194,951			215,769
NET ASSETS
Beginning of period	378,743			6,185,109			412,692			5,686,150			1,628,740
End of period	$	442,595		$	7,008,841		$	527,065		$	6,881,101		$	1,844,509
Beginning units	253,543			2,086,442			202,010			1,767,575			964,649
Units issued	3,723			54,090			14			12,093			6,943
Units redeemed	(33,666		)	(183,012		)	(8,521		)	(183,495		)	(145,684		)
Ending units	223,600			1,957,520			193,503			1,596,173			825,908

The accompanying notes are an integral part of these financial statements.

A33

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Goldman Sachs Large-Cap Value Portfolio			AST Cohen & Steers Realty Portfolio			AST J.P. Morgan Strategic Opportunities Portfolio			AST T. Rowe Price Large-Cap Value Portfolio			AST High Yield Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	04/26/2019**			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(266,745	)	$	(397,916	)	$	(2,589,552	)	$	(824,337	)	$	(400,517	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	12,913,480			2,627,709			6,527,845			1,158,500			1,520,573
Net change in unrealized appreciation (depreciation) on investments	(5,127,547		)	5,163,356			15,386,321			7,785,263			2,849,948
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	7,519,188			7,393,149			19,324,614			8,119,426			3,970,004
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	372,538			1,638,902			4,034,830			1,875,806			2,113,117
Annuity payments	—			(6,554		)	(63,400		)	(3,282		)	(17,082		)
Surrenders, withdrawals and death benefits	(1,642,097		)	(2,528,652		)	(10,543,354		)	(4,896,703		)	(2,718,419		)
Net transfers between other subaccounts
or fixed rate option	(57,014,397		)	(1,121,742		)	9,619,605			59,373,779			969,920
Miscellaneous transactions	(70		)	(12		)	(4,713		)	(4,296		)	337
Other charges	(165,340		)	(243,987		)	(1,759,708		)	(506,229		)	(234,145		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(58,449,366		)	(2,262,045		)	1,283,260			55,839,075			113,728
TOTAL INCREASE (DECREASE) IN NET ASSETS	(50,930,178		)	5,131,104			20,607,874			63,958,501			4,083,732
NET ASSETS
Beginning of period	50,930,178			25,132,365			147,331,470			13,956,301			28,532,420
End of period	$	—		$	30,263,469		$	167,939,344		$	77,914,802		$	32,616,152
Beginning units	3,117,045			1,359,928			11,258,620			962,348			1,997,465
Units issued	218,243			371,941			1,822,127			4,384,171			557,072
Units redeemed	(3,335,288		)	(452,476		)	(1,687,213		)	(1,004,819		)	(532,718		)
Ending units	—			1,279,393			11,393,534			4,341,700			2,021,819
**Date subaccount was no longer available for investment.

The accompanying notes are an integral part of these financial statements.

A34

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Small-Cap Growth Opportunities Portfolio			AST WEDGE Capital Mid-Cap Value Portfolio			AST Small-Cap Value Portfolio			AST Mid-Cap Growth Portfolio			AST Hotchkis & Wiley Large-Cap Value Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(288,154	)	$	(140,833	)	$	(215,823	)	$	(962,943	)	$	(527,322	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	1,598,983			679,524			676,062			6,435,557			2,685,142
Net change in unrealized appreciation (depreciation) on investments	4,067,348			865,907			2,034,267			10,035,850			6,386,953
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	5,378,177			1,404,598			2,494,506			15,508,464			8,544,773
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	629,012			79,528			256,279			2,136,859			867,363
Annuity payments	—			(1,841		)	—			(6,926		)	(16,993		)
Surrenders, withdrawals and death benefits	(1,509,235		)	(584,849		)	(998,760		)	(4,969,556		)	(2,705,700		)
Net transfers between other subaccounts
or fixed rate option	1,745,404			765,877			1,319,141			316,376			1,744,713
Miscellaneous transactions	(1,697		)	(809		)	789			(1,570		)	4,871
Other charges	(169,136		)	(79,695		)	(120,535		)	(565,092		)	(313,594		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	694,348			178,211			456,914			(3,089,909		)	(419,340		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	6,072,525			1,582,809			2,951,420			12,418,555			8,125,433
NET ASSETS
Beginning of period	14,871,379			7,800,185			12,086,301			54,320,999			30,540,662
End of period	$	20,943,904		$	9,382,994		$	15,037,721		$	66,739,554		$	38,666,095
Beginning units	772,368			437,242			707,790			2,749,901			1,743,492
Units issued	276,497			168,948			270,186			768,820			539,432
Units redeemed	(226,672		)	(158,271		)	(243,734		)	(868,148		)	(550,694		)
Ending units	822,193			447,919			734,242			2,650,573			1,732,230

The accompanying notes are an integral part of these financial statements.

A35

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Loomis Sayles Large-Cap Growth Portfolio			AST MFS Growth Portfolio			AST Neuberger Berman/LSV Mid-Cap Value Portfolio			AST BlackRock Low Duration Bond Portfolio			AST QMA US Equity Alpha Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(821,027	)	$	(310,153	)	$	(463,291	)	$	(284,445	)	$	(404,706	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	6,458,295			2,289,558			1,611,277			292,470			2,532,387
Net change in unrealized appreciation (depreciation) on investments	8,015,083			4,486,303			4,235,829			740,847			4,024,636
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	13,652,351			6,465,708			5,383,815			748,872			6,152,317
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	579,018			1,217,138			878,026			2,913,015			635,587
Annuity payments	—			—			(3,751		)	(447,587		)	—
Surrenders, withdrawals and death benefits	(4,375,175		)	(1,478,341		)	(2,543,997		)	(2,138,077		)	(1,327,482		)
Net transfers between other subaccounts
or fixed rate option	3,419,676			1,364,320			3,436,589			2,917,421			1,857,633
Miscellaneous transactions	(3,191		)	395			(634		)	(1,124		)	(836		)
Other charges	(481,636		)	(180,042		)	(279,047		)	(161,647		)	(247,541		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(861,308		)	923,470			1,487,186			3,082,001			917,361
TOTAL INCREASE (DECREASE) IN NET ASSETS	12,791,043			7,389,178			6,871,001			3,830,873			7,069,678
NET ASSETS
Beginning of period	46,002,028			17,359,043			27,100,696			20,602,742			26,070,435
End of period	$	58,793,071		$	24,748,221		$	33,971,697		$	24,433,615		$	33,140,113
Beginning units	1,915,488			763,496			1,469,914			2,033,398			1,138,228
Units issued	526,263			283,810			428,520			968,234			425,981
Units redeemed	(545,232		)	(238,455		)	(342,131		)	(675,900		)	(394,958		)
Ending units	1,896,519			808,851			1,556,303			2,325,732			1,169,251

The accompanying notes are an integral part of these financial statements.

A36

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST T. Rowe Price Natural Resources Portfolio			AST T. Rowe Price Asset Allocation Portfolio			AST MFS Global Equity Portfolio			AST J.P. Morgan International Equity Portfolio			AST Templeton Global Bond Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(377,498	)	$	(17,999,325	)	$	(490,831	)	$	(409,104	)	$	(200,303	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	193,311			53,326,646			2,803,043			1,339,988			141,459
Net change in unrealized appreciation (depreciation) on investments	3,453,620			161,726,756			6,115,409			4,586,814			76,278
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	3,269,433			197,054,077			8,427,621			5,517,698			17,434
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	499,475			26,817,355			862,615			161,560			630,679
Annuity payments	—			(469,941		)	(13,804		)	—			(3,480		)
Surrenders, withdrawals and death benefits	(1,783,995		)	(81,798,532		)	(2,541,113		)	(1,618,925		)	(873,683		)
Net transfers between other subaccounts
or fixed rate option	5,213,608			29,443,538			(109,888		)	1,733,484			2,078,626
Miscellaneous transactions	(964		)	23,080			(711		)	464			(118		)
Other charges	(235,473		)	(12,712,153		)	(301,630		)	(251,735		)	(133,810		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	3,692,651			(38,696,653		)	(2,104,531		)	24,848			1,698,214
TOTAL INCREASE (DECREASE) IN NET ASSETS	6,962,084			158,357,424			6,323,090			5,542,546			1,715,648
NET ASSETS
Beginning of period	20,245,767			1,037,326,664			30,215,160			21,141,538			14,210,012
End of period	$	27,207,851		$	1,195,684,088		$	36,538,250		$	26,684,084		$	15,925,660
Beginning units	2,264,362			68,595,679			1,709,504			1,837,554			1,383,930
Units issued	1,001,679			6,701,187			374,183			635,859			441,475
Units redeemed	(632,126		)	(8,509,998		)	(469,102		)	(636,116		)	(284,472		)
Ending units	2,633,915			66,786,868			1,614,585			1,837,297			1,540,933

The accompanying notes are an integral part of these financial statements.

A37

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Wellington Management Hedged Equity Portfolio			AST Capital Growth Asset Allocation Portfolio			AST Academic Strategies Asset Allocation Portfolio			AST Balanced Asset Allocation Portfolio			AST Preservation Asset Allocation Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(2,264,493	)	$	(11,611,844	)	$	(4,402,472	)	$	(11,671,327	)	$	(7,440,780	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	4,162,795			37,774,123			8,598,652			44,923,541			24,904,851
Net change in unrealized appreciation (depreciation) on investments	21,908,929			103,541,916			28,728,910			84,094,280			38,779,182
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	23,807,231			129,704,195			32,925,090			117,346,494			56,243,253
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	7,792,313			22,603,646			2,870,646			25,589,431			16,693,455
Annuity payments	(28,053		)	(144,213		)	(84,242		)	(816,431		)	(179,441		)
Surrenders, withdrawals and death benefits	(7,015,312		)	(39,627,479		)	(16,545,747		)	(59,519,053		)	(47,992,500		)
Net transfers between other subaccounts
or fixed rate option	5,983,944			36,831,132			32,403,786			19,003,861			22,142,242
Miscellaneous transactions	367			(8,915		)	(4,753		)	(2,506		)	(14,881		)
Other charges	(1,652,057		)	(7,368,963		)	(2,357,899		)	(7,432,994		)	(4,867,838		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	5,081,202			12,285,208			16,281,791			(23,177,692		)	(14,218,963		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	28,888,433			141,989,403			49,206,881			94,168,802			42,024,290
NET ASSETS
Beginning of period	122,381,662			621,581,930			222,318,463			667,892,222			433,758,975
End of period	$	151,270,095		$	763,571,333		$	271,525,344		$	762,061,024		$	475,783,265
Beginning units	9,607,346			40,024,703			18,240,805			44,994,875			32,523,557
Units issued	1,422,698			6,750,491			4,509,526			5,864,422			5,579,393
Units redeemed	(1,029,889		)	(5,691,669		)	(3,283,527		)	(6,972,692		)	(6,500,037		)
Ending units	10,000,155			41,083,525			19,466,804			43,886,605			31,602,913

The accompanying notes are an integral part of these financial statements.

A38

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Fidelity Institutional AM℠ Quantitative Portfolio			AST Prudential Growth Allocation Portfolio			AST Advanced Strategies Portfolio			AST T. Rowe Price Large-Cap Growth Portfolio			AST Government Money Market Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(5,963,683	)	$	(17,738,143	)	$	(9,920,296	)	$	(1,427,507	)	$	109,422
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	16,321,510			35,575,694			32,285,111			11,282,186			—
Net change in unrealized appreciation (depreciation) on investments	51,485,967			156,356,039			91,012,598			12,758,194			—
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	61,843,794			174,193,590			113,377,413			22,612,873			109,422
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	10,014,978			20,131,702			14,024,171			6,404,994			1,970,809
Annuity payments	(169,528		)	(109,367		)	(153,252		)	(23,031		)	—
Surrenders, withdrawals and death benefits	(26,828,233		)	(71,825,641		)	(43,257,082		)	(9,022,851		)	(80,262,257		)
Net transfers between other subaccounts
or fixed rate option	18,908,601			76,618,772			14,358,437			2,248,111			74,981,377
Miscellaneous transactions	8,497			15,870			(858		)	9,375			(545		)
Other charges	(4,196,601		)	(12,604,750		)	(6,974,656		)	(816,096		)	(156,662		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(2,262,286		)	12,226,586			(22,003,240		)	(1,199,498		)	(3,467,278		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	59,581,508			186,420,176			91,374,173			21,413,375			(3,357,856		)
NET ASSETS
Beginning of period	335,136,023			981,859,311			567,374,679			84,916,872			26,432,011
End of period	$	394,717,531		$	1,168,279,487		$	658,748,852		$	106,330,247		$	23,074,155
Beginning units	25,093,495			64,493,332			37,242,549			3,096,538			2,871,150
Units issued	3,470,965			10,768,297			3,499,019			974,884			4,992,197
Units redeemed	(3,444,975		)	(9,736,747		)	(4,501,941		)	(884,227		)	(5,379,503		)
Ending units	25,119,485			65,524,882			36,239,627			3,187,195			2,483,844

The accompanying notes are an integral part of these financial statements.

A39

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Small-Cap Growth Portfolio			AST BlackRock/Loomis Sayles Bond Portfolio			AST International Value Portfolio			AST International Growth Portfolio			AST Investment Grade Bond Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(397,776	)	$	(2,887,983	)	$	(177,937	)	$	(295,913	)	$	(3,275,046	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	2,347,320			5,155,927			311,769			1,259,661			23,138,442
Net change in unrealized appreciation (depreciation) on investments	4,440,078			11,279,611			2,089,555			4,994,484			(356,647		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	6,389,622			13,547,555			2,223,387			5,958,232			19,506,749
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	950,122			2,862,493			733,287			904,752			—
Annuity payments	(28,251		)	(30,699		)	—			—			—
Surrenders, withdrawals and death benefits	(2,353,568		)	(16,195,658		)	(814,955		)	(1,240,360		)	(11,445,914		)
Net transfers between other subaccounts
or fixed rate option	1,093,150			21,150,379			1,725,551			28,280			(507,610,845		)
Miscellaneous transactions	3,121			(2,577		)	(2,395		)	(447		)	(5,214		)
Other charges	(217,745		)	(1,736,967		)	(104,366		)	(209,804		)	(2,552,075		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(553,171		)	6,046,971			1,537,122			(517,579		)	(521,614,048		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	5,836,451			19,594,526			3,760,509			5,440,653			(502,107,299		)
NET ASSETS
Beginning of period	22,086,767			171,480,455			11,238,647			19,290,908			611,858,761
End of period	$	27,923,218		$	191,074,981		$	14,999,156		$	24,731,561		$	109,751,462
Beginning units	1,038,246			15,038,927			1,023,641			1,475,982			50,427,163
Units issued	308,185			4,137,214			380,116			342,867			8,311,679
Units redeemed	(308,635		)	(3,676,102		)	(249,410		)	(374,750		)	(51,334,916		)
Ending units	1,037,796			15,500,039			1,154,347			1,444,099			7,403,926

The accompanying notes are an integral part of these financial statements.

A40

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Western Asset Core Plus Bond Portfolio			AST Bond Portfolio 2019			AST Cohen & Steers Global Realty Portfolio			AST Parametric Emerging Markets Equity Portfolio			AST Goldman Sachs Small-Cap Value Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019**			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(1,794,814	)	$	(155,456	)	$	(125,997	)	$	(370,557	)	$	(468,446	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	3,292,254			275,406			514,019			317,140			2,217,673
Net change in unrealized appreciation (depreciation) on investments	11,081,571			(105,294		)	1,295,180			2,487,023			4,018,566
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	12,579,011			14,656			1,683,202			2,433,606			5,767,793
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	2,447,388			—			328,572			182,669			1,324,322
Annuity payments	(17,509		)	—			—			—			(2,384		)
Surrenders, withdrawals and death benefits	(10,438,489		)	(784,702		)	(550,337		)	(1,305,816		)	(2,579,710		)
Net transfers between other subaccounts
or fixed rate option	10,827,604			(14,197,166		)	403,611			4,869,862			3,568,274
Miscellaneous transactions	(5,365		)	(175		)	(219		)	(816		)	(688		)
Other charges	(1,139,057		)	(3,571		)	(72,954		)	(252,227		)	(281,877		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	1,674,572			(14,985,614		)	108,673			3,493,672			2,027,937
TOTAL INCREASE (DECREASE) IN NET ASSETS	14,253,583			(14,970,958		)	1,791,875			5,927,278			7,795,730
NET ASSETS
Beginning of period	114,485,712			14,970,958			6,998,536			19,786,281			26,492,992
End of period	$	128,739,295		$	—		$	8,790,411		$	25,713,559		$	34,288,722
Beginning units	9,301,442			1,337,975			475,857			2,113,540			1,371,403
Units issued	2,318,886			40,129			140,772			946,088			557,278
Units redeemed	(2,201,940		)	(1,378,104		)	(126,665		)	(613,676		)	(454,019		)
Ending units	9,418,388			—			489,964			2,445,952			1,474,662
**Date subaccount was no longer available for investment.

The accompanying notes are an integral part of these financial statements.

A41

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST AllianzGI World Trends Portfolio			AST J.P. Morgan Global Thematic Portfolio			AST Goldman Sachs Multi-Asset Portfolio			ProFund VP Consumer Services			ProFund VP Consumer Goods
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(6,031,104	)	$	(3,420,589	)	$	(3,243,208	)	$	(5,105	)	$	(20	)
Capital gains distributions received	—			—			—			16,161			13,648
Net realized gain (loss) on shares redeemed	13,234,132			7,602,655			5,396,178			10,485			(1,573		)
Net change in unrealized appreciation (depreciation) on investments	50,854,727			30,664,836			24,986,534			42,535			8,573
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	58,057,755			34,846,902			27,139,504			64,076			20,628
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	6,565,037			6,426,933			7,798,185			23,043			—
Annuity payments	(78,685		)	—			(103,287		)	—			—
Surrenders, withdrawals and death benefits	(27,671,056		)	(11,200,525		)	(10,773,657		)	(24,287		)	(20,295		)
Net transfers between other subaccounts
or fixed rate option	23,243,120			12,754,555			20,194,829			55,126			(27,676		)
Miscellaneous transactions	22,059			(3,981		)	213			(23		)	(17		)
Other charges	(4,592,383		)	(2,543,164		)	(2,506,088		)	(2,953		)	(877		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(2,511,908		)	5,433,818			14,610,195			50,906			(48,865		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	55,545,847			40,280,720			41,749,699			114,982			(28,237		)
NET ASSETS
Beginning of period	350,823,780			190,855,496			179,186,503			272,441			100,974
End of period	$	406,369,627		$	231,136,216		$	220,936,202		$	387,423		$	72,737
Beginning units	27,003,521			13,553,914			14,915,693			10,696			6,026
Units issued	3,289,957			2,088,865			3,297,528			4,172			443
Units redeemed	(3,318,776		)	(1,588,411		)	(2,112,910		)	(1,196		)	(2,988		)
Ending units	26,974,702			14,054,368			16,100,311			13,672			3,481

The accompanying notes are an integral part of these financial statements.

A42

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	ProFund VP Financials			ProFund VP Health Care			ProFund VP Industrials			ProFund VP Mid-Cap Growth			ProFund VP Mid-Cap Value
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(3,167	)	$	(4,460	)	$	(6,130	)	$	(2,331	)	$	(3,866	)
Capital gains distributions received	17,998			44,311			60,393			13,297			10,127
Net realized gain (loss) on shares redeemed	22,638			6,437			47,299			1,710			(1,391		)
Net change in unrealized appreciation (depreciation) on investments	52,246			7,027			12,211			25,967			47,418
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	89,715			53,315			113,773			38,643			52,288
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	—			15,494			—			—			—
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(63,623		)	(42,090		)	(46,813		)	(11,926		)	(16,097		)
Net transfers between other subaccounts
or fixed rate option	3,957			117,503			(142,622		)	(80,321		)	67,083
Miscellaneous transactions	—			(3		)	(86		)	—			(26		)
Other charges	(3,362		)	(2,736		)	(3,745		)	(1,533		)	(2,629		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(63,028		)	88,168			(193,266		)	(93,780		)	48,331
TOTAL INCREASE (DECREASE) IN NET ASSETS	26,687			141,483			(79,493		)	(55,137		)	100,619
NET ASSETS
Beginning of period	311,220			215,986			431,553			195,091			215,439
End of period	$	337,907		$	357,469		$	352,060		$	139,954		$	316,058
Beginning units	26,264			8,520			26,594			11,255			13,737
Units issued	1,998			6,266			3,555			1,427			5,804
Units redeemed	(6,381		)	(1,878		)	(13,289		)	(6,071		)	(2,923		)
Ending units	21,881			12,908			16,860			6,611			16,618

The accompanying notes are an integral part of these financial statements.

A43

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	ProFund VP Real Estate			ProFund VP Small-Cap Growth			ProFund VP Small-Cap Value			ProFund VP Telecommu-nications			ProFund VP Utilities
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	276		$	(2,096	)	$	(3,117	)	$	728		$	411
Capital gains distributions received	5,830			15,914			—			—			9,937
Net realized gain (loss) on shares redeemed	2,303			3,803			(565		)	(831		)	3,276
Net change in unrealized appreciation (depreciation) on investments	20,373			9,733			38,680			4,350			11,725
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	28,782			27,354			34,998			4,247			25,349
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	—			—			—			—			—
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	—			(4,646		)	(5,439		)	(18,192		)	(21,195		)
Net transfers between other subaccounts
or fixed rate option	(9,015		)	(59,990		)	46,181			2,331			85,026
Miscellaneous transactions	—			—			—			—			—
Other charges	(1,220		)	(1,211		)	(1,799		)	(370		)	(1,359		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(10,235		)	(65,847		)	38,943			(16,231		)	62,472
TOTAL INCREASE (DECREASE) IN NET ASSETS	18,547			(38,493		)	73,941			(11,984		)	87,821
NET ASSETS
Beginning of period	118,165			173,535			154,240			34,964			71,585
End of period	$	136,712		$	135,042		$	228,181		$	22,980		$	159,406
Beginning units	9,378			8,799			9,396			3,272			4,763
Units issued	500			1,034			3,026			263			5,898
Units redeemed	(1,190		)	(3,992		)	(898		)	(1,633		)	(1,899		)
Ending units	8,688			5,841			11,524			1,902			8,762

The accompanying notes are an integral part of these financial statements.

A44

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	ProFund VP Large-Cap Growth			ProFund VP Large-Cap Value			AST Bond Portfolio 2020			AST Jennison Large-Cap Growth Portfolio			AST Bond Portfolio 2021
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(3,145	)	$	(944	)	$	(149,756	)	$	(404,587	)	$	(120,939	)
Capital gains distributions received	48,206			23,421			—			—			—
Net realized gain (loss) on shares redeemed	1,487			3,093			54,677			2,469,095			316,364
Net change in unrealized appreciation (depreciation) on investments	1,367			20,703			151,479			5,694,144			(58,875		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	47,915			46,273			56,400			7,758,652			136,550
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	—			—			—			1,929,289			—
Annuity payments	—			—			—			(4,037		)	—
Surrenders, withdrawals and death benefits	(925		)	(17,558		)	(1,982,237		)	(2,213,060		)	(506,543		)
Net transfers between other subaccounts
or fixed rate option	13,843			89,182			11,311,563			856,445			(1,489,319		)
Miscellaneous transactions	—			—			9			(2,897		)	17
Other charges	(2,434		)	(2,019		)	(206		)	(237,041		)	(2,215		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	10,484			69,605			9,329,129			328,699			(1,998,060		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	58,399			115,878			9,385,529			8,087,351			(1,861,510		)
NET ASSETS
Beginning of period	172,322			123,798			1,489,733			24,467,381			5,937,846
End of period	$	230,721		$	239,676		$	10,875,262		$	32,554,732		$	4,076,336
Beginning units	8,822			9,317			128,055			1,076,927			496,283
Units issued	1,217			7,474			1,025,531			353,476			247,580
Units redeemed	(716		)	(2,664		)	(237,854		)	(296,912		)	(421,498		)
Ending units	9,323			14,127			915,732			1,133,491			322,365

The accompanying notes are an integral part of these financial statements.

A45

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	Wells Fargo VT International Equity Fund (Class 1)			Wells Fargo VT Omega Growth Fund (Class 1)			AST Bond Portfolio 2022			AST Quantitative Modeling Portfolio			AST BlackRock Global Strategies Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	1,069		$	(8,749	)	$	(94,599	)	$	(417,499	)	$	(2,350,657	)
Capital gains distributions received	18,623			63,037			—			—			—
Net realized gain (loss) on shares redeemed	(419		)	2,280			171,306			999,300			4,637,407
Net change in unrealized appreciation (depreciation) on investments	(13,590		)	88,338			70,519			10,374,777			19,465,290
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	5,683			144,906			147,226			10,956,578			21,752,040
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	—			—			—			7,796,712			6,165,526
Annuity payments	—			—			—			—			(25,333		)
Surrenders, withdrawals and death benefits	—			—			(75,192		)	(3,135,950		)	(11,772,651		)
Net transfers between other subaccounts
or fixed rate option	4,912			(803		)	(1,564,379		)	(2,274,088		)	7,676,998
Miscellaneous transactions	—			—			—			1,818			3,469
Other charges	(25		)	—			(1,296		)	(307,855		)	(1,696,029		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	4,887			(803		)	(1,640,867		)	2,080,637			351,980
TOTAL INCREASE (DECREASE) IN NET ASSETS	10,570			144,103			(1,493,641		)	13,037,215			22,104,020
NET ASSETS
Beginning of period	39,363			413,598			4,816,359			52,994,061			133,698,494
End of period	$	49,933		$	557,701		$	3,322,718		$	66,031,276		$	155,802,514
Beginning units	2,550			104,602			429,009			3,831,913			11,402,260
Units issued	301			45			94,002			636,240			1,348,625
Units redeemed	(2		)	(201		)	(239,160		)	(444,204		)	(1,276,617		)
Ending units	2,849			104,446			283,851			4,023,949			11,474,268

The accompanying notes are an integral part of these financial statements.

A46

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	Wells Fargo VT Opportunity Fund (Class 1)			AST Prudential Core Bond Portfolio			AST Bond Portfolio 2023			AST MFS Growth Allocation Portfolio			AST Western Asset Emerging Markets Debt Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(1,760	)	$	(378,170	)	$	(15,162	)	$	(1,002,158	)	$	(6,736	)
Capital gains distributions received	17,030			—			—			—			—
Net realized gain (loss) on shares redeemed	783			797,587			60,215			1,835,910			8,232
Net change in unrealized appreciation (depreciation) on investments	21,543			2,141,894			(12,285		)	11,206,354			116,063
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	37,596			2,561,311			32,768			12,040,106			117,559
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	—			3,262,636			—			9,571,922			230,418
Annuity payments	—			(112,506		)	—			(29,365		)	(1,099		)
Surrenders, withdrawals and death benefits	—			(3,597,466		)	(399,462		)	(3,981,313		)	(47,390		)
Net transfers between other subaccounts
or fixed rate option	(565		)	5,484,901			(179,152		)	7,221,315			11,128
Miscellaneous transactions	—			(1,543		)	20			4,850			(7		)
Other charges	(11		)	(254,238		)	(371		)	(777,994		)	(4,280		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(576		)	4,781,784			(578,965		)	12,009,415			188,770
TOTAL INCREASE (DECREASE) IN NET ASSETS	37,020			7,343,095			(546,197		)	24,049,521			306,329
NET ASSETS
Beginning of period	127,126			28,279,964			1,089,668			51,311,221			728,451
End of period	$	164,146		$	35,623,059		$	543,471		$	75,360,742		$	1,034,780
Beginning units	6,496			2,550,988			109,728			4,069,073			71,628
Units issued	25			1,253,533			331			1,519,417			26,419
Units redeemed	(47		)	(836,397		)	(56,476		)	(627,169		)	(8,935		)
Ending units	6,474			2,968,124			53,583			4,961,321			89,112

The accompanying notes are an integral part of these financial statements.

A47

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST MFS Large-Cap Value Portfolio			AST Bond Portfolio 2024			AST AQR Emerging Markets Equity Portfolio			AST ClearBridge Dividend Growth Portfolio			AST Multi-Sector Fixed Income Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(220,029	)	$	(42,277	)	$	(24,021	)	$	(218,228	)	$	(34,614,882	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	794,692			152,806			(2,604		)	1,096,145			1,690,250
Net change in unrealized appreciation (depreciation) on investments	3,550,872			19,400			454,005			2,813,652			294,984,344
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	4,125,535			129,929			427,380			3,691,569			262,059,712
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	1,345,903			—			442,075			871,965			515,016,217
Annuity payments	—			—			(2,170		)	—			—
Surrenders, withdrawals and death benefits	(1,208,701		)	(1,023,809		)	(189,038		)	(903,381		)	(96,580,514		)
Net transfers between other subaccounts
or fixed rate option	2,326,428			(2,136,279		)	133,002			2,155,829			—
Miscellaneous transactions	35			(5		)	(98		)	253			(5,788		)
Other charges	(132,785		)	(360		)	(12,096		)	(121,435		)	(231,230		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	2,330,880			(3,160,453		)	371,675			2,003,231			418,198,685
TOTAL INCREASE (DECREASE) IN NET ASSETS	6,456,415			(3,030,524		)	799,055			5,694,800			680,258,397
NET ASSETS
Beginning of period	14,199,039			4,128,575			2,366,208			11,691,077			1,436,313,558
End of period	$	20,655,454		$	1,098,051		$	3,165,263		$	17,385,877		$	2,116,571,955
Beginning units	893,489			433,526			231,465			770,298			137,939,994
Units issued	443,846			32,386			72,144			380,480			37,935,530
Units redeemed	(304,039		)	(358,537		)	(39,457		)	(256,884		)	(1,332,492		)
Ending units	1,033,296			107,375			264,152			893,894			174,543,032

The accompanying notes are an integral part of these financial statements.

A48

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST AQR Large-Cap Portfolio			AST QMA Large-Cap Portfolio			AST Bond Portfolio 2025			AST T. Rowe Price Growth Opportunities Portfolio			AST Goldman Sachs Global Growth Allocation Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(18,167	)	$	(12,732	)	$	(30,039	)	$	(2,965,540	)	$	(28,081	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	65,858			39,535			142,747			765,078			95,240
Net change in unrealized appreciation (depreciation) on investments	329,720			296,361			(8,800		)	40,547,081			742,599
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	377,411			323,164			103,908			38,346,619			809,758
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	286,641			457,716			—			51,593,297			829,516
Annuity payments	—			—			—			(12,809		)	—
Surrenders, withdrawals and death benefits	(160,639		)	(140,375		)	(427,766		)	(3,929,340		)	(237,157		)
Net transfers between other subaccounts
or fixed rate option	(104,319		)	(27,073		)	(1,425,988		)	32,763,241			(369,414		)
Miscellaneous transactions	1,779			414			(4		)	(9,299		)	1,123
Other charges	(7,269		)	(6,408		)	(313		)	(2,575,195		)	(26,281		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	16,193			284,274			(1,854,071		)	77,829,895			197,787
TOTAL INCREASE (DECREASE) IN NET ASSETS	393,604			607,438			(1,750,163		)	116,176,514			1,007,545
NET ASSETS
Beginning of period	1,755,485			1,196,829			2,469,134			128,786,261			4,088,516
End of period	$	2,149,089		$	1,804,267		$	718,971		$	244,962,775		$	5,096,061
Beginning units	114,787			74,529			227,318			10,900,423			369,233
Units issued	31,730			33,798			39,720			6,317,606			77,155
Units redeemed	(28,880		)	(12,672		)	(205,132		)	(357,496		)	(56,839		)
Ending units	117,637			95,655			61,906			16,860,533			389,549

The accompanying notes are an integral part of these financial statements.

A49

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST T. Rowe Price Diversified Real Growth Portfolio			AST Prudential Flexible Multi-Strategy Portfolio			AST Franklin Templeton K2 Global Absolute Return Portfolio			AST Managed Equity Portfolio			AST Managed Fixed Income Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(58,523	)	$	(86,183	)	$	(15,878	)	$	(21,900	)	$	(39,840	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	170,501			155,193			14,290			38,644			76,204
Net change in unrealized appreciation (depreciation) on investments	1,584,097			1,798,522			150,646			766,505			445,001
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	1,696,075			1,867,532			149,058			783,249			481,365
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	869,764			1,968,147			132,276			353,790			646,139
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(446,788		)	(886,334		)	(203,075		)	(108,150		)	(612,361		)
Net transfers between other subaccounts
or fixed rate option	1,496,194			60,629			(147,836		)	(40,545		)	(1,277		)
Miscellaneous transactions	188			785			55			—			215
Other charges	(54,378		)	(81,298		)	(15,986		)	(21,097		)	(38,340		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	1,864,980			1,061,929			(234,566		)	183,998			(5,624		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	3,561,055			2,929,461			(85,508		)	967,247			475,741
NET ASSETS
Beginning of period	6,667,991			12,900,004			2,844,635			3,053,896			5,965,925
End of period	$	10,229,046		$	15,829,465		$	2,759,127		$	4,021,143		$	6,441,666
Beginning units	562,717			1,077,038			297,180			268,817			580,670
Units issued	221,571			181,350			24,890			34,008			98,149
Units redeemed	(69,638		)	(87,914		)	(48,758		)	(17,736		)	(97,960		)
Ending units	714,650			1,170,474			273,312			285,089			580,859

The accompanying notes are an integral part of these financial statements.

A50

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST FQ Absolute Return Currency Portfolio			AST Jennison Global Infrastructure Portfolio			AST PIMCO Dynamic Bond Portfolio			AST Legg Mason Diversified Growth Portfolio			AST Bond Portfolio 2026
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(2,712	)	$	(11,353	)	$	(8,832	)	$	(710,403	)	$	(258,282	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	(2,163		)	40,750			3,412			406,013			899,710
Net change in unrealized appreciation (depreciation) on investments	(13,326		)	426,833			66,850			7,237,832			400,353
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(18,201		)	456,230			61,430			6,933,442			1,041,781
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	17,924			245,274			697,246			6,372,169			—
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(18,325		)	(67,549		)	(79,490		)	(1,184,138		)	(1,773,411		)
Net transfers between other subaccounts
or fixed rate option	(12,449		)	(161,013		)	141,850			6,462,473			(6,240,807		)
Miscellaneous transactions	—			9			10			(171		)	371
Other charges	(2,555		)	(10,224		)	(8,029		)	(630,405		)	(2,485		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(15,405		)	6,497			751,587			11,019,928			(8,016,332		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(33,606		)	462,727			813,017			17,953,370			(6,974,551		)
NET ASSETS
Beginning of period	486,064			1,644,977			1,085,236			35,438,213			17,163,806
End of period	$	452,458		$	2,107,704		$	1,898,253		$	53,391,583		$	10,189,255
Beginning units	50,898			153,369			114,622			3,257,536			1,787,719
Units issued	3,353			20,173			95,451			1,281,459			581,637
Units redeemed	(5,105		)	(18,449		)	(18,952		)	(327,965		)	(1,391,809		)
Ending units	49,146			155,093			191,121			4,211,030			977,547

The accompanying notes are an integral part of these financial statements.

A51

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST AB Global Bond Portfolio			AST Goldman Sachs Global Income Portfolio			AST Morgan Stanley Multi-Asset Portfolio			AST Wellington Management Global Bond Portfolio			AST Neuberger Berman Long/Short Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			06/28/2019**			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(10,864	)	$	(4,058	)	$	(979	)	$	(4,782	)	$	(12,919	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	23,233			2,285			1,691			10,411			18,408
Net change in unrealized appreciation (depreciation) on investments	103,027			49,739			462			38,630			288,364
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	115,396			47,966			1,174			44,259			293,853
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	236,554			126,600			16,096			238,941			286,308
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(110,326		)	(25,807		)	(2,249		)	(32,296		)	(91,069		)
Net transfers between other subaccounts
or fixed rate option	(63,702		)	162,365			(376,936		)	(81,998		)	17,122
Miscellaneous transactions	10			7			(5		)	—			—
Other charges	(10,417		)	(3,584		)	(949		)	(4,250		)	(12,315		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	52,119			259,581			(364,043		)	120,397			200,046
TOTAL INCREASE (DECREASE) IN NET ASSETS	167,515			307,547			(362,869		)	164,656			493,899
NET ASSETS
Beginning of period	1,820,521			506,286			362,869			696,752			1,804,324
End of period	$	1,988,036		$	813,833		$	—		$	861,408		$	2,298,223
Beginning units	170,573			48,784			40,457			64,799			175,320
Units issued	34,742			26,546			2,137			23,106			37,065
Units redeemed	(29,009		)	(2,982		)	(42,594		)	(12,041		)	(17,791		)
Ending units	176,306			72,348			—			75,864			194,594
**Date subaccount was no longer available for investment.

The accompanying notes are an integral part of these financial statements.

A52

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Wellington Management Real Total Return Portfolio			AST QMA International Core Equity Portfolio			AST Managed Alternatives Portfolio			AST Emerging Managers Diversified Portfolio			AST Columbia Adaptive Risk Allocation Portfolio
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	06/28/2019**			12/31/2019			12/31/2019			06/28/2019**			01/25/2019**
OPERATIONS
Net investment income (loss)	$	(1,170	)	$	(6,055	)	$	(12,481	)	$	(2,327	)	$	(606	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	(4,127		)	4,046			4,766			106,560			126,940
Net change in unrealized appreciation (depreciation) on investments	18,113			152,164			99,489			(24,889		)	(72,582		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	12,816			150,155			91,774			79,344			53,752
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	21,529			160,761			378,837			32,086			4,014
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(1,350		)	(46,933		)	(133,278		)	(48,676		)	(6,700		)
Net transfers between other subaccounts
or fixed rate option	(398,599		)	(58,285		)	(42,961		)	(837,147		)	(1,556,714		)
Miscellaneous transactions	14			13			121			(5		)	(9		)
Other charges	(1,123		)	(5,905		)	(11,889		)	(2,311		)	(728		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(379,529		)	49,651			190,830			(856,053		)	(1,560,137		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(366,713		)	199,806			282,604			(776,709		)	(1,506,385		)
NET ASSETS
Beginning of period	366,713			885,649			1,932,941			776,709			1,506,385
End of period	$	—		$	1,085,455		$	2,215,545		$	—		$	—
Beginning units	42,775			89,509			203,173			73,170			134,059
Units issued	2,793			26,985			46,426			2,949			275
Units redeemed	(45,568		)	(22,159		)	(27,138		)	(76,119		)	(134,334		)
Ending units	—			94,335			222,461			—			—
**Date subaccount was no longer available for investment.

The accompanying notes are an integral part of these financial statements.

A53

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	Blackrock Global Allocation V.I. Fund (Class III)			JPMorgan Insurance Trust Income Builder Portfolio (Class 2)			AST Bond Portfolio 2027			NVIT Emerging Markets Fund (Class D)			AST Bond Portfolio 2028
	1/1/2019			1/1/2019			1/1/2019			1/1/2019			1/1/2019
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	31,341		$	57,684		$	(176,149	)	$	2,888		$	(39,522	)
Capital gains distributions received	210,071			6,081			—			—			—
Net realized gain (loss) on shares redeemed	27,099			12,372			635,981			7,283			355,477
Net change in unrealized appreciation (depreciation) on investments	606,493			215,216			394,082			73,739			(83,533		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	875,004			291,353			853,914			83,910			232,422
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	574,043			265,555			—			49,903			—
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(236,792		)	(152,765		)	(931,201		)	(38,629		)	(211,917		)
Net transfers between other subaccounts
or fixed rate option	(1,127,440		)	(67,278		)	(7,237,289		)	11,883			(3,886,206		)
Miscellaneous transactions	200			(25		)	(191		)	—			27,361
Other charges	(32,776		)	(14,060		)	(3,099		)	(703		)	(468		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(822,765		)	31,427			(8,171,780		)	22,454			(4,071,230		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	52,239			322,780			(7,317,866		)	106,364			(3,838,808		)
NET ASSETS
Beginning of period	5,279,973			2,159,456			12,857,120			378,177			4,900,737
End of period	$	5,332,212		$	2,482,236		$	5,539,254		$	484,541		$	1,061,929
Beginning units	494,628			195,355			1,345,255			34,561			509,661
Units issued	51,148			28,665			280,988			5,576			347,094
Units redeemed	(118,530		)	(25,372		)	(1,094,335		)	(3,405		)	(756,017		)
Ending units	427,246			198,648			531,908			36,732			100,738

The accompanying notes are an integral part of these financial statements.

A54

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNTS
	AST Bond Portfolio 2029			AST American Funds Growth Allocation Portfolio			AST Bond Portfolio 2030			AST BlackRock 80/20 Target Allocation ETF Portfolio			AST BlackRock 60/40 Target Allocation ETF Portfolio
	1/1/2019			1/1/2019			1/2/2019*			1/28/2019*			1/28/2019*
	to			to			to			to			to
	12/31/2019			12/31/2019			12/31/2019			12/31/2019			12/31/2019
OPERATIONS
Net investment income (loss)	$	(44,003	)	$	(731,228	)	$	(18,767	)	$	(164,217	)	$	(105,319	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	26,334			56,778			(7,590		)	18,572			3,739
Net change in unrealized appreciation (depreciation) on investments	91,651			9,425,619			(13,939		)	1,987,397			1,113,677
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	73,982			8,751,169			(40,296		)	1,841,752			1,012,097
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	—			40,213,182			—			24,903,441			17,179,100
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(268,320		)	(643,807		)	(179,466		)	(24,312		)	(47,151		)
Net transfers between other subaccounts
or fixed rate option	4,046,505			3,012,611			2,144,996			842,826			268,466
Miscellaneous transactions	—			7,102			17,211			582			234
Other charges	(302		)	(580,327		)	—			(101,769		)	(58,270		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	3,777,883			42,008,761			1,982,741			25,620,768			17,342,379
TOTAL INCREASE (DECREASE) IN NET ASSETS	3,851,865			50,759,930			1,942,445			27,462,520			18,354,476
NET ASSETS
Beginning of period	149,942			23,479,499			—			—			—
End of period	$	4,001,807		$	74,239,429		$	1,942,445		$	27,462,520		$	18,354,476
Beginning units	15,549			2,482,095			—			—			—
Units issued	413,422			4,168,166			674,795			2,318,854			1,571,372
Units redeemed	(52,187		)	(141,634		)	(501,546		)	(64,445		)	(10,327		)
Ending units	376,784			6,508,627			173,249			2,254,409			1,561,045
*Date subaccount became available for investment.

The accompanying notes are an integral part of these financial statements.

A55

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2019

	SUBACCOUNT
	AST Dimensional Global Core Allocation Portfolio
	11/18/2019*
	to
	12/31/2019
OPERATIONS
Net investment income (loss)	$	(4	)
Capital gains distributions received	—
Net realized gain (loss) on shares redeemed	—
Net change in unrealized appreciation (depreciation) on investments	58
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	54
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	8,522
Annuity payments	—
Surrenders, withdrawals and death benefits	—
Net transfers between other subaccounts
or fixed rate option	—
Miscellaneous transactions	—
Other charges	—
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	8,522
TOTAL INCREASE (DECREASE) IN NET ASSETS	8,576
NET ASSETS
Beginning of period	—
End of period	$	8,576
Beginning units	—
Units issued	833
Units redeemed	—
Ending units	833
*Date subaccount became available for investment.

The accompanying notes are an integral part of these financial statements.

A56

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	Prudential Government Money Market Portfolio			Prudential Diversified Bond Portfolio			Prudential Equity Portfolio (Class I)			Prudential Value Portfolio (Class I)			Prudential High Yield Bond Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	5,790		$	(200,576	)	$	(267,642	)	$	(328,607	)	$	193,723
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	—			334,832			1,752,163			2,053,752			(70,449		)
Net change in unrealized appreciation (depreciation) on investments	—			(392,846		)	(2,312,937		)	(3,911,475		)	(435,732		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	5,790			(258,590		)	(828,416		)	(2,186,330		)	(312,458		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	37,720			12,346			15,664			38,275			34,407
Annuity payments	(251,687		)	(259,170		)	(132,396		)	(130,837		)	(178,323		)
Surrenders, withdrawals and death benefits	(1,237,535		)	(1,811,848		)	(2,836,950		)	(4,825,490		)	(2,262,472		)
Net transfers between other subaccounts
or fixed rate option	208,203			116,806			(178,398		)	(82,645		)	147,406
Miscellaneous transactions	511			636			964			8,640			1,078
Other charges	(6,995		)	(4,103		)	(9,351		)	(21,254		)	(14,222		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(1,249,783		)	(1,945,333		)	(3,140,467		)	(5,013,311		)	(2,272,126		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(1,243,993		)	(2,203,923		)	(3,968,883		)	(7,199,641		)	(2,584,584		)
NET ASSETS
Beginning of period	7,457,427			15,603,387			19,207,350			24,414,007			14,230,117
End of period	$	6,213,434		$	13,399,464		$	15,238,467		$	17,214,366		$	11,645,533
Beginning units	6,350,227			5,696,899			5,154,163			6,701,694			3,034,797
Units issued	2,562,933			152,936			34,934			56,040			108,535
Units redeemed	(3,621,151		)	(877,573		)	(818,096		)	(1,297,070		)	(585,841		)
Ending units	5,292,009			4,972,262			4,371,001			5,460,664			2,557,491

The accompanying notes are an integral part of these financial statements.

A57

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	Prudential Stock Index Portfolio			Prudential Global Portfolio			Prudential Jennison Portfolio (Class I)			Prudential Small Capitalization Stock Portfolio			T. Rowe Price International Stock Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(314,371	)	$	(72,604	)	$	(384,462	)	$	(66,738	)	$	(1,114	)
Capital gains distributions received	—			—			—			—			152,670
Net realized gain (loss) on shares redeemed	2,110,647			632,688			3,766,205			333,774			59,396
Net change in unrealized appreciation (depreciation) on investments	(3,150,736		)	(875,419		)	(3,372,091		)	(910,581		)	(459,641		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(1,354,460		)	(315,335		)	9,652			(643,545		)	(248,689		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	2,581,014			4,647			21,889			929,862			—
Annuity payments	(167,502		)	(4,954		)	(100,130		)	(9,553		)	(17,289		)
Surrenders, withdrawals and death benefits	(2,719,646		)	(1,292,431		)	(4,552,696		)	(479,182		)	(265,454		)
Net transfers between other subaccounts
or fixed rate option	153,801			(74,145		)	(620,543		)	677,678			76,056
Miscellaneous transactions	12,840			305			1,561			23			(23		)
Other charges	(15,899		)	(3,593		)	(16,730		)	(2,529		)	(284		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(155,392		)	(1,370,171		)	(5,266,649		)	1,116,299			(206,994		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(1,509,852		)	(1,685,506		)	(5,256,997		)	472,754			(455,683		)
NET ASSETS
Beginning of period	22,041,105			5,464,300			26,906,319			4,531,042			1,857,135
End of period	$	20,531,253		$	3,778,794		$	21,649,322		$	5,003,796		$	1,401,452
Beginning units	5,984,257			1,894,908			6,090,270			759,728			921,074
Units issued	963,795			11,424			45,180			167,754			35,763
Units redeemed	(1,488,318		)	(450,449		)	(1,083,910		)	(95,603		)	(135,266		)
Ending units	5,459,734			1,455,883			5,051,540			831,879			821,571

The accompanying notes are an integral part of these financial statements.

A58

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	T. Rowe Price Equity Income Portfolio (Equity Income Class)			Invesco V.I. Core Equity Fund (Series I)			Janus Henderson VIT Research Portfolio (Institutional Shares)			Janus Henderson VIT Overseas Portfolio (Institutional Shares)			MFS® Research Series (Initial Class)
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	35,511		$	(38,425	)	$	(45,024	)	$	16,173		$	(10,216	)
Capital gains distributions received	531,896			463,817			246,626			—			165,789
Net realized gain (loss) on shares redeemed	215,257			243,385			223,531			(15,717		)	41,742
Net change in unrealized appreciation (depreciation) on investments	(1,415,449		)	(1,413,381		)	(567,506		)	(770,940		)	(269,811		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(632,785		)	(744,604		)	(142,373		)	(770,484		)	(72,496		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	3,103			15,508			8,667			9,544			—
Annuity payments	(339,224		)	(99,936		)	(46,448		)	(43,616		)	—
Surrenders, withdrawals and death benefits	(500,875		)	(754,516		)	(644,466		)	(341,124		)	(113,123		)
Net transfers between other subaccounts
or fixed rate option	658			14,707			(95,814		)	69,745			(13,960		)
Miscellaneous transactions	409			181			368			193			—
Other charges	(1,349		)	(1,973		)	(1,358		)	(1,484		)	(428		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(837,278		)	(826,029		)	(779,051		)	(306,742		)	(127,511		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(1,470,063		)	(1,570,633		)	(921,424		)	(1,077,226		)	(200,007		)
NET ASSETS
Beginning of period	6,738,586			7,854,400			5,355,135			5,067,025			1,461,745
End of period	$	5,268,523		$	6,283,767		$	4,433,711		$	3,989,799		$	1,261,738
Beginning units	1,671,518			2,558,949			1,625,103			1,420,966			422,911
Units issued	7,280			19,292			5,076			20,277			1,626
Units redeemed	(214,339		)	(287,011		)	(231,121		)	(106,379		)	(37,430		)
Ending units	1,464,459			2,291,230			1,399,058			1,334,864			387,107

The accompanying notes are an integral part of these financial statements.

A59

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	MFS® Growth Series (Initial Class)			American Century VP Value Fund (Class I)			Franklin Small-Mid Cap Growth VIP Fund (Class 2)			Prudential Jennison 20/20 Focus Portfolio (Class I)			Davis Value Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(86,301	)	$	4,857		$	(38,926	)	$	(48,206	)	$	(11,361	)
Capital gains distributions received	425,417			125			310,796			—			268,600
Net realized gain (loss) on shares redeemed	734,323			78,102			(129,237		)	267,586			(20,975		)
Net change in unrealized appreciation (depreciation) on investments	(885,074		)	(279,234		)	(201,553		)	(413,543		)	(462,701		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	188,365			(196,150		)	(58,920		)	(194,163		)	(226,437		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	1,150			540			—			3,562			1,940
Annuity payments	(9,448		)	(2,971		)	(2,981		)	—			(99,945		)
Surrenders, withdrawals and death benefits	(1,292,286		)	(150,186		)	(1,054,117		)	(245,208		)	(260,680		)
Net transfers between other subaccounts
or fixed rate option	(62,687		)	(29,032		)	(5,782		)	(142,879		)	(97,772		)
Miscellaneous transactions	(57		)	1			176			(56		)	46
Other charges	(1,863		)	(436		)	(570		)	(552		)	(327		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(1,365,191		)	(182,084		)	(1,063,274		)	(385,133		)	(456,738		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(1,176,826		)	(378,234		)	(1,122,194		)	(579,296		)	(683,175		)
NET ASSETS
Beginning of period	6,726,596			2,054,898			2,990,116			3,500,479			1,989,858
End of period	$	5,549,770		$	1,676,664		$	1,867,922		$	2,921,183		$	1,306,683
Beginning units	1,743,915			525,052			909,525			1,058,086			935,097
Units issued	24,826			1,919			5,648			11,485			5,767
Units redeemed	(347,891		)	(48,818		)	(305,213		)	(124,333		)	(220,151		)
Ending units	1,420,850			478,153			609,960			945,238			720,713

The accompanying notes are an integral part of these financial statements.

A60

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AB VPS Large Cap Growth Portfolio (Class B)			Prudential SP Small Cap Value Portfolio (Class I)			Janus Henderson VIT Research Portfolio (Service Shares)			SP Prudential U.S. Emerging Growth Portfolio (Class I)			Prudential SP International Growth Portfolio (Class I)
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(9,944	)	$	(120,134	)	$	(5,807	)	$	(108,648	)	$	(30,358	)
Capital gains distributions received	83,955			—			22,885			—			—
Net realized gain (loss) on shares redeemed	157,180			512,674			21,053			577,432			69,217
Net change in unrealized appreciation (depreciation) on investments	(201,296		)	(1,500,664		)	(54,904		)	(1,035,654		)	(306,096		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	29,895			(1,108,124		)	(16,773		)	(566,870		)	(267,237		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	—			24,474			30			27,539			19,016
Annuity payments	—			(27,586		)	—			(62,878		)	(2,808		)
Surrenders, withdrawals and death benefits	(416,308		)	(742,356		)	(47,935		)	(845,354		)	(248,624		)
Net transfers between other subaccounts
or fixed rate option	(67,702		)	(84,692		)	(7,572		)	(94,686		)	21,106
Miscellaneous transactions	(25		)	(260		)	(1		)	571			65
Other charges	(82		)	(18,622		)	(820		)	(14,542		)	(3,090		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(484,117		)	(849,042		)	(56,298		)	(989,350		)	(214,335		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(454,222		)	(1,957,166		)	(73,071		)	(1,556,220		)	(481,572		)
NET ASSETS
Beginning of period	832,965			8,142,275			485,763			7,242,370			2,110,312
End of period	$	378,743		$	6,185,109		$	412,692		$	5,686,150		$	1,628,740
Beginning units	562,620			2,331,536			226,785			2,025,937			1,092,745
Units issued	3,281			14,466			2,912			14,130			28,475
Units redeemed	(312,358		)	(259,560		)	(27,687		)	(272,492		)	(156,571		)
Ending units	253,543			2,086,442			202,010			1,767,575			964,649

The accompanying notes are an integral part of these financial statements.

A61

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST Goldman Sachs Large-Cap Value Portfolio			AST Cohen & Steers Realty Portfolio			AST J.P. Morgan Strategic Opportunities Portfolio			AST T. Rowe Price Large-Cap Value Portfolio			AST High Yield Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(929,051	)	$	(397,696	)	$	(2,736,343	)	$	(224,568	)	$	(411,974	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	2,684,789			1,297,466			7,017,349			544,974			1,235,809
Net change in unrealized appreciation (depreciation) on investments	(7,627,291		)	(2,552,968		)	(15,639,282		)	(2,042,530		)	(1,799,590		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(5,871,553		)	(1,653,198		)	(11,358,276		)	(1,722,124		)	(975,755		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	912,183			1,764,053			5,870,866			1,279,091			3,071,136
Annuity payments	—			—			(46,436		)	—			—
Surrenders, withdrawals and death benefits	(4,141,587		)	(1,318,399		)	(9,321,382		)	(532,874		)	(1,890,633		)
Net transfers between other subaccounts
or fixed rate option	(7,239,185		)	(2,732,579		)	(13,706,786		)	892,425			(1,410,070		)
Miscellaneous transactions	269			(75		)	(2,034		)	(492		)	38
Other charges	(557,970		)	(230,931		)	(1,764,516		)	(131,522		)	(230,789		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(11,026,290		)	(2,517,931		)	(18,970,288		)	1,506,628			(460,318		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(16,897,843		)	(4,171,129		)	(30,328,564		)	(215,496		)	(1,436,073		)
NET ASSETS
Beginning of period	67,828,021			29,303,494			177,660,034			14,171,797			29,968,493
End of period	$	50,930,178		$	25,132,365		$	147,331,470		$	13,956,301		$	28,532,420
Beginning units	3,729,480			1,478,395			12,622,002			852,770			2,026,029
Units issued	237,649			281,269			842,538			246,392			458,140
Units redeemed	(850,084		)	(399,736		)	(2,205,920		)	(136,814		)	(486,704		)
Ending units	3,117,045			1,359,928			11,258,620			962,348			1,997,465

The accompanying notes are an integral part of these financial statements.

A62

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST Small-Cap Growth Opportunities Portfolio			AST WEDGE Capital Mid-Cap Value Portfolio			AST Small-Cap Value Portfolio			AST Mid-Cap Growth Portfolio			AST Hotchkis & Wiley Large-Cap Value Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(301,941	)	$	(154,233	)	$	(239,315	)	$	(982,247	)	$	(514,466	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	2,553,348			698,986			1,121,881			4,140,084			2,197,916
Net change in unrealized appreciation (depreciation) on investments	(4,290,839		)	(2,295,588		)	(3,663,362		)	(6,521,972		)	(7,375,571		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(2,039,432		)	(1,750,835		)	(2,780,796		)	(3,364,135		)	(5,692,121		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	959,063			166,770			615,878			1,915,247			1,280,702
Annuity payments	—			—			—			—			(46,837		)
Surrenders, withdrawals and death benefits	(2,103,996		)	(763,108		)	(1,037,315		)	(4,578,374		)	(1,769,900		)
Net transfers between other subaccounts
or fixed rate option	(1,081,160		)	(560,889		)	(1,422,383		)	(2,655,190		)	2,179,752
Miscellaneous transactions	1,071			(33		)	115			536			1,148
Other charges	(173,183		)	(84,023		)	(125,815		)	(554,281		)	(308,906		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(2,398,205		)	(1,241,283		)	(1,969,520		)	(5,872,062		)	1,335,959
TOTAL INCREASE (DECREASE) IN NET ASSETS	(4,437,637		)	(2,992,118		)	(4,750,316		)	(9,236,197		)	(4,356,162		)
NET ASSETS
Beginning of period	19,309,016			10,792,303			16,836,617			63,557,196			34,896,824
End of period	$	14,871,379		$	7,800,185		$	12,086,301		$	54,320,999		$	30,540,662
Beginning units	865,182			495,956			804,909			3,009,467			1,682,687
Units issued	245,031			52,805			147,741			443,819			416,022
Units redeemed	(337,845		)	(111,519		)	(244,860		)	(703,385		)	(355,217		)
Ending units	772,368			437,242			707,790			2,749,901			1,743,492

The accompanying notes are an integral part of these financial statements.

A63

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST Loomis Sayles Large-Cap Growth Portfolio			AST MFS Growth Portfolio			AST Neuberger Berman/LSV Mid-Cap Value Portfolio			AST BlackRock Low Duration Bond Portfolio			AST QMA US Equity Alpha Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(880,069	)	$	(286,659	)	$	(514,425	)	$	(279,093	)	$	(400,814	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	7,206,197			2,436,518			2,331,117			88,438			1,997,000
Net change in unrealized appreciation (depreciation) on investments	(8,156,163		)	(2,216,756		)	(7,877,525		)	67,806			(4,437,680		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(1,830,035		)	(66,897		)	(6,060,833		)	(122,849		)	(2,841,494		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	671,799			937,042			1,418,486			1,834,899			1,551,917
Annuity payments	(22,079		)	—			(2,758		)	—			—
Surrenders, withdrawals and death benefits	(4,088,093		)	(894,693		)	(2,243,604		)	(1,792,366		)	(1,165,757		)
Net transfers between other subaccounts
or fixed rate option	(7,863,851		)	(86,872		)	(2,618,783		)	(347,884		)	(77,154		)
Miscellaneous transactions	(307		)	312			1,354			54			78
Other charges	(504,401		)	(160,725		)	(296,125		)	(152,803		)	(232,193		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(11,806,932		)	(204,936		)	(3,741,430		)	(458,100		)	76,891
TOTAL INCREASE (DECREASE) IN NET ASSETS	(13,636,967		)	(271,833		)	(9,802,263		)	(580,949		)	(2,764,603		)
NET ASSETS
Beginning of period	59,638,995			17,630,876			36,902,959			21,183,691			28,835,038
End of period	$	46,002,028		$	17,359,043		$	27,100,696		$	20,602,742		$	26,070,435
Beginning units	2,373,911			764,067			1,637,849			2,080,890			1,143,077
Units issued	230,797			321,614			219,279			478,643			278,968
Units redeemed	(689,220		)	(322,185		)	(387,214		)	(526,135		)	(283,817		)
Ending units	1,915,488			763,496			1,469,914			2,033,398			1,138,228

The accompanying notes are an integral part of these financial statements.

A64

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST T. Rowe Price Natural Resources Portfolio			AST T. Rowe Price Asset Allocation Portfolio			AST MFS Global Equity Portfolio			AST J.P. Morgan International Equity Portfolio			AST Templeton Global Bond Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(413,432	)	$	(18,599,856	)	$	(515,779	)	$	(433,749	)	$	(209,225	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	821,475			40,788,953			1,809,461			1,075,166			119,255
Net change in unrealized appreciation (depreciation) on investments	(5,148,853		)	(101,507,442		)	(5,116,272		)	(5,935,504		)	186,105
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(4,740,810		)	(79,318,345		)	(3,822,590		)	(5,294,087		)	96,135
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	647,062			42,649,462			1,159,107			135,036			691,714
Annuity payments	—			(235,309		)	—			—			—
Surrenders, withdrawals and death benefits	(1,459,018		)	(64,488,580		)	(2,016,416		)	(2,039,682		)	(1,149,585		)
Net transfers between other subaccounts
or fixed rate option	(3,957,277		)	(55,228,069		)	(1,265,773		)	797,101			(1,338,747		)
Miscellaneous transactions	2,459			347			721			416			(261		)
Other charges	(248,771		)	(12,576,197		)	(305,842		)	(253,197		)	(140,397		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(5,015,545		)	(89,878,346		)	(2,428,203		)	(1,360,326		)	(1,937,276		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(9,756,355		)	(169,196,691		)	(6,250,793		)	(6,654,413		)	(1,841,141		)
NET ASSETS
Beginning of period	30,002,122			1,206,523,355			36,465,953			27,795,951			16,051,153
End of period	$	20,245,767		$	1,037,326,664		$	30,215,160		$	21,141,538		$	14,210,012
Beginning units	2,762,430			73,973,025			1,834,933			1,958,892			1,577,249
Units issued	363,783			3,329,545			240,953			428,187			243,789
Units redeemed	(861,851		)	(8,706,891		)	(366,382		)	(549,525		)	(437,108		)
Ending units	2,264,362			68,595,679			1,709,504			1,837,554			1,383,930

The accompanying notes are an integral part of these financial statements.

A65

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST Wellington Management Hedged Equity Portfolio			AST Capital Growth Asset Allocation Portfolio			AST Academic Strategies Asset Allocation Portfolio			AST Balanced Asset Allocation Portfolio			AST Preservation Asset Allocation Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(2,258,923	)	$	(11,849,944	)	$	(4,848,695	)	$	(12,133,885	)	$	(7,785,466	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	4,586,128			32,690,940			16,585,524			33,411,809			19,137,617
Net change in unrealized appreciation (depreciation) on investments	(11,504,305		)	(76,746,824		)	(39,067,826		)	(68,999,841		)	(32,233,216		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(9,177,100		)	(55,905,828		)	(27,330,997		)	(47,721,917		)	(20,881,065		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	8,402,534			37,131,459			3,686,334			30,700,524			21,347,852
Annuity payments	(19,293		)	(81,558		)	(83,492		)	(578,275		)	(81,618		)
Surrenders, withdrawals and death benefits	(6,923,019		)	(43,158,761		)	(18,321,312		)	(45,437,834		)	(33,806,551		)
Net transfers between other subaccounts
or fixed rate option	(11,039,496		)	(36,232,106		)	(50,578,154		)	(39,922,121		)	(33,223,676		)
Miscellaneous transactions	(2,274		)	3,529			1,345			17,973			(3,259		)
Other charges	(1,578,748		)	(7,052,339		)	(2,470,612		)	(7,328,160		)	(4,864,953		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(11,160,296		)	(49,389,776		)	(67,765,891		)	(62,547,893		)	(50,632,205		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(20,337,396		)	(105,295,604		)	(95,096,888		)	(110,269,810		)	(71,513,270		)
NET ASSETS
Beginning of period	142,719,058			726,877,534			317,415,351			778,162,032			505,272,245
End of period	$	122,381,662		$	621,581,930		$	222,318,463		$	667,892,222		$	433,758,975
Beginning units	10,482,954			42,943,788			23,441,366			48,857,191			36,076,003
Units issued	839,442			4,011,079			1,502,401			2,598,086			2,452,387
Units redeemed	(1,715,050		)	(6,930,164		)	(6,702,962		)	(6,460,402		)	(6,004,833		)
Ending units	9,607,346			40,024,703			18,240,805			44,994,875			32,523,557

The accompanying notes are an integral part of these financial statements.

A66

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST Fidelity Institutional AM℠ Quantitative Portfolio			AST Prudential Growth Allocation Portfolio			AST Advanced Strategies Portfolio			AST T. Rowe Price Large-Cap Growth Portfolio			AST Government Money Market Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(6,330,610	)	$	(19,166,600	)	$	(10,381,300	)	$	(1,408,764	)	$	(422	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	14,111,788			35,769,549			29,741,673			9,703,670			—
Net change in unrealized appreciation (depreciation) on investments	(44,354,938		)	(123,151,125		)	(66,509,751		)	(6,319,003		)	—
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(36,573,760		)	(106,548,176		)	(47,149,378		)	1,975,903			(422		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	14,823,756			27,884,716			18,910,313			5,789,853			2,539,055
Annuity payments	(6,417		)	(138,927		)	(48,645		)	—			—
Surrenders, withdrawals and death benefits	(19,893,702		)	(64,984,742		)	(40,608,772		)	(6,033,601		)	(63,470,076		)
Net transfers between other subaccounts
or fixed rate option	(29,639,346		)	(110,217,323		)	(37,242,325		)	(2,727,653		)	69,750,550
Miscellaneous transactions	(8,623		)	5,779			(2,372		)	2,923			76
Other charges	(4,222,034		)	(12,867,794		)	(6,965,721		)	(772,854		)	(146,553		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(38,946,366		)	(160,318,291		)	(65,957,522		)	(3,741,332		)	8,673,052
TOTAL INCREASE (DECREASE) IN NET ASSETS	(75,520,126		)	(266,866,467		)	(113,106,900		)	(1,765,429		)	8,672,630
NET ASSETS
Beginning of period	410,656,149			1,248,725,778			680,481,579			86,682,301			17,759,381
End of period	$	335,136,023		$	981,859,311		$	567,374,679		$	84,916,872		$	26,432,011
Beginning units	27,846,464			74,416,651			41,197,022			3,187,695			1,958,472
Units issued	1,346,549			3,176,355			1,424,411			741,962			4,488,512
Units redeemed	(4,099,518		)	(13,099,674		)	(5,378,884		)	(833,119		)	(3,575,834		)
Ending units	25,093,495			64,493,332			37,242,549			3,096,538			2,871,150

The accompanying notes are an integral part of these financial statements.

A67

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST Small-Cap Growth Portfolio			AST BlackRock/Loomis Sayles Bond Portfolio			AST International Value Portfolio			AST International Growth Portfolio			AST Investment Grade Bond Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(401,469	)	$	(3,062,167	)	$	(187,676	)	$	(293,925	)	$	(2,876,790	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	2,810,206			3,029,049			395,498			906,146			632,817
Net change in unrealized appreciation (depreciation) on investments	(4,853,114		)	(4,649,536		)	(2,681,101		)	(3,951,364		)	5,247,027
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(2,444,377		)	(4,682,654		)	(2,473,279		)	(3,339,143		)	3,003,054
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	1,067,289			2,449,944			848,100			1,690,044			—
Annuity payments	—			(75,126		)	—			—			—
Surrenders, withdrawals and death benefits	(1,826,650		)	(12,242,628		)	(1,062,625		)	(1,290,766		)	(9,014,352		)
Net transfers between other subaccounts
or fixed rate option	126,369			(15,311,186		)	(93,691		)	1,205,950			525,281,764
Miscellaneous transactions	832			175			818			1,512			(96		)
Other charges	(213,725		)	(1,780,210		)	(103,902		)	(206,571		)	(2,144,116		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(845,885		)	(26,959,031		)	(411,300		)	1,400,169			514,123,200
TOTAL INCREASE (DECREASE) IN NET ASSETS	(3,290,262		)	(31,641,685		)	(2,884,579		)	(1,938,974		)	517,126,254
NET ASSETS
Beginning of period	25,377,029			203,122,140			14,123,226			21,229,882			94,732,507
End of period	$	22,086,767		$	171,480,455		$	11,238,647		$	19,290,908		$	611,858,761
Beginning units	1,070,361			17,408,451			1,066,618			1,387,880			6,924,968
Units issued	326,473			1,662,570			213,349			403,191			59,289,652
Units redeemed	(358,588		)	(4,032,094		)	(256,326		)	(315,089		)	(15,787,457		)
Ending units	1,038,246			15,038,927			1,023,641			1,475,982			50,427,163

The accompanying notes are an integral part of these financial statements.

A68

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST Western Asset Core Plus Bond Portfolio			AST Bond Portfolio 2019			AST Cohen & Steers Global Realty Portfolio			AST Parametric Emerging Markets Equity Portfolio			AST Goldman Sachs Small-Cap Value Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(1,370,549	)	$	(183,717	)	$	(127,640	)	$	(402,075	)	$	(503,514	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	1,267,418			13,540			333,396			1,003,085			2,401,570
Net change in unrealized appreciation (depreciation) on investments	(2,677,961		)	76,860			(716,491		)	(4,693,599		)	(6,839,065		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(2,781,092		)	(93,317		)	(510,735		)	(4,092,589		)	(4,941,009		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	1,629,087			—			148,244			210,912			1,038,895
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(6,215,222		)	(3,556,213		)	(357,851		)	(1,548,524		)	(1,898,944		)
Net transfers between other subaccounts
or fixed rate option	46,182,844			17,751,564			(1,103,225		)	(2,580,472		)	(2,625,393		)
Miscellaneous transactions	861			252			(8		)	229			227
Other charges	(818,778		)	(367		)	(72,341		)	(256,457		)	(293,620		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	40,778,792			14,195,236			(1,385,181		)	(4,174,312		)	(3,778,835		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	37,997,700			14,101,919			(1,895,916		)	(8,266,901		)	(8,719,844		)
NET ASSETS
Beginning of period	76,488,012			869,039			8,894,452			28,053,182			35,212,836
End of period	$	114,485,712		$	14,970,958		$	6,998,536		$	19,786,281		$	26,492,992
Beginning units	5,998,902			76,083			562,771			2,535,577			1,536,950
Units issued	5,275,393			1,603,751			54,888			622,954			192,991
Units redeemed	(1,972,853		)	(341,859		)	(141,802		)	(1,044,991		)	(358,538		)
Ending units	9,301,442			1,337,975			475,857			2,113,540			1,371,403

The accompanying notes are an integral part of these financial statements.

A69

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST AllianzGI World Trends Portfolio			AST J.P. Morgan Global Thematic Portfolio			AST Goldman Sachs Multi-Asset Portfolio			ProFund VP Consumer Services			ProFund VP Consumer Goods
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(6,505,092	)	$	(3,504,851	)	$	(3,426,169	)	$	(3,883	)	$	(372	)
Capital gains distributions received	—			—			—			13,425			23,004
Net realized gain (loss) on shares redeemed	14,709,558			7,045,833			7,900,010			20,211			3,226
Net change in unrealized appreciation (depreciation) on investments	(47,683,361		)	(23,728,031		)	(23,504,207		)	(33,920		)	(47,399		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(39,478,895		)	(20,187,049		)	(19,030,366		)	(4,167		)	(21,541		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	12,559,989			13,955,136			9,632,453			—			—
Annuity payments	(41,153		)	(53,751		)	(69,617		)	—			—
Surrenders, withdrawals and death benefits	(20,321,612		)	(9,116,489		)	(10,746,804		)	(1,733		)	(2,782		)
Net transfers between other subaccounts
or fixed rate option	(36,585,657		)	(15,987,751		)	(29,615,737		)	15,993			(29,673		)
Miscellaneous transactions	(3,502		)	(3,063		)	(1,687		)	—			—
Other charges	(4,725,140		)	(2,465,199		)	(2,521,807		)	(2,288		)	(1,191		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(49,117,075		)	(13,671,117		)	(33,323,199		)	11,972			(33,646		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(88,595,970		)	(33,858,166		)	(52,353,565		)	7,805			(55,187		)
NET ASSETS
Beginning of period	439,419,750			224,713,662			231,540,068			264,636			156,161
End of period	$	350,823,780		$	190,855,496		$	179,186,503		$	272,441		$	100,974
Beginning units	30,615,987			14,486,829			17,513,557			10,299			7,822
Units issued	1,336,736			1,421,398			1,310,026			2,306			876
Units redeemed	(4,949,202		)	(2,354,313		)	(3,907,890		)	(1,909		)	(2,672		)
Ending units	27,003,521			13,553,914			14,915,693			10,696			6,026

The accompanying notes are an integral part of these financial statements.

A70

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	ProFund VP Financials			ProFund VP Health Care			ProFund VP Industrials			ProFund VP Mid-Cap Growth			ProFund VP Mid-Cap Value
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(3,503	)	$	(3,330	)	$	(7,520	)	$	(4,263	)	$	(3,197	)
Capital gains distributions received	—			15,506			—			24,557			29,913
Net realized gain (loss) on shares redeemed	18,697			18,129			26,080			1,787			(764		)
Net change in unrealized appreciation (depreciation) on investments	(56,512		)	(21,308		)	(90,066		)	(53,233		)	(63,615		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(41,318		)	8,997			(71,506		)	(31,152		)	(37,663		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	—			—			—			—			—
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(1,185		)	(7,320		)	(6,129		)	(6,189		)	(3,473		)
Net transfers between other subaccounts
or fixed rate option	28,398			(7,677		)	(72,492		)	(74,303		)	29,579
Miscellaneous transactions	—			—			—			—			26
Other charges	(3,031		)	(2,046		)	(4,825		)	(2,457		)	(1,938		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	24,182			(17,043		)	(83,446		)	(82,949		)	24,194
TOTAL INCREASE (DECREASE) IN NET ASSETS	(17,136		)	(8,046		)	(154,952		)	(114,101		)	(13,469		)
NET ASSETS
Beginning of period	328,356			224,032			586,505			309,192			228,908
End of period	$	311,220		$	215,986		$	431,553		$	195,091		$	215,439
Beginning units	24,257			9,089			31,029			15,473			12,476
Units issued	5,281			1,379			2,799			1,549			3,840
Units redeemed	(3,274		)	(1,948		)	(7,234		)	(5,767		)	(2,579		)
Ending units	26,264			8,520			26,594			11,255			13,737

The accompanying notes are an integral part of these financial statements.

A71

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	ProFund VP Real Estate			ProFund VP Small-Cap Growth			ProFund VP Small-Cap Value			ProFund VP Telecommu-nications			ProFund VP Utilities
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	843		$	(2,854	)	$	(1,352	)	$	1,841		$	402
Capital gains distributions received	14,687			13,319			7,800			—			2,243
Net realized gain (loss) on shares redeemed	1,984			6,375			108			(146		)	3,115
Net change in unrealized appreciation (depreciation) on investments	(26,509		)	(27,590		)	(36,835		)	(8,704		)	(5,390		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(8,995		)	(10,750		)	(30,279		)	(7,009		)	370
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	—			—			—			—			—
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	—			(2,389		)	(591		)	(963		)	(1,240		)
Net transfers between other subaccounts
or fixed rate option	(2,017		)	(8,258		)	139,452			(4,638		)	(3,193		)
Miscellaneous transactions	—			—			—			—			—
Other charges	(1,113		)	(1,656		)	(876		)	(395		)	(680		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(3,130		)	(12,303		)	137,985			(5,996		)	(5,113		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(12,125		)	(23,053		)	107,706			(13,005		)	(4,743		)
NET ASSETS
Beginning of period	130,290			196,588			46,534			47,969			76,328
End of period	$	118,165		$	173,535		$	154,240		$	34,964		$	71,585
Beginning units	9,606			9,258			2,406			3,754			5,148
Units issued	1,423			1,799			7,853			391			1,548
Units redeemed	(1,651		)	(2,258		)	(863		)	(873		)	(1,933		)
Ending units	9,378			8,799			9,396			3,272			4,763

The accompanying notes are an integral part of these financial statements.

A72

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	ProFund VP Large-Cap Growth			ProFund VP Large-Cap Value			AST Bond Portfolio 2020			AST Jennison Large-Cap Growth Portfolio			AST Bond Portfolio 2021
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(3,011	)	$	(997	)	$	(27,861	)	$	(394,048	)	$	(166,040	)
Capital gains distributions received	8,692			—			—			—			—
Net realized gain (loss) on shares redeemed	5,957			3,424			8,804			3,067,904			116,822
Net change in unrealized appreciation (depreciation) on investments	(16,737		)	(20,176		)	(2,828		)	(3,601,881		)	(129,831		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(5,099		)	(17,749		)	(21,885		)	(928,025		)	(179,049		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	—			—			—			2,238,495			—
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	—			(1,649		)	(45,708		)	(1,734,583		)	(2,425,860		)
Net transfers between other subaccounts
or fixed rate option	(25,961		)	(18,728		)	302,371			(422,434		)	830,081
Miscellaneous transactions	—			—			—			619			1
Other charges	(2,317		)	(1,475		)	(201		)	(227,591		)	(2,550		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(28,278		)	(21,852		)	256,462			(145,494		)	(1,598,328		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(33,377		)	(39,601		)	234,577			(1,073,519		)	(1,777,377		)
NET ASSETS
Beginning of period	205,699			163,399			1,255,156			25,540,900			7,715,223
End of period	$	172,322		$	123,798		$	1,489,733		$	24,467,381		$	5,937,846
Beginning units	10,195			10,840			105,764			1,072,808			628,145
Units issued	895			1,265			46,105			387,578			159,629
Units redeemed	(2,268		)	(2,788		)	(23,814		)	(383,459		)	(291,491		)
Ending units	8,822			9,317			128,055			1,076,927			496,283

The accompanying notes are an integral part of these financial statements.

A73

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	Wells Fargo VT International Equity Fund (Class 1)			Wells Fargo VT Omega Growth Fund (Class 1)			AST Bond Portfolio 2022			AST Quantitative Modeling Portfolio			AST BlackRock Global Strategies Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	4,321		$	(7,915	)	$	(118,086	)	$	(353,042	)	$	(2,398,362	)
Capital gains distributions received	10,056			47,523			—			—			—
Net realized gain (loss) on shares redeemed	82			3,564			128,209			506,744			4,486,711
Net change in unrealized appreciation (depreciation) on investments	(22,969		)	(47,694		)	(169,947		)	(4,375,386		)	(12,537,710		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(8,510		)	(4,522		)	(159,824		)	(4,221,684		)	(10,449,361		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	—			—			—			16,162,688			12,208,919
Annuity payments	—			—			—			—			(20,260		)
Surrenders, withdrawals and death benefits	—			—			(926,271		)	(1,568,075		)	(8,766,047		)
Net transfers between other subaccounts
or fixed rate option	1,984			(5,165		)	(1,296,347		)	854,481			(11,452,331		)
Miscellaneous transactions	—			—			24			(34		)	2,324
Other charges	(27		)	—			(1,620		)	(247,297		)	(1,616,719		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	1,957			(5,165		)	(2,224,214		)	15,201,763			(9,644,114		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(6,553		)	(9,687		)	(2,384,038		)	10,980,079			(20,093,475		)
NET ASSETS
Beginning of period	45,916			423,285			7,200,397			42,013,982			153,791,969
End of period	$	39,363		$	413,598		$	4,816,359		$	52,994,061		$	133,698,494
Beginning units	2,430			105,758			617,220			2,823,660			12,230,883
Units issued	176			—			117,110			1,246,831			1,181,891
Units redeemed	(56		)	(1,156		)	(305,321		)	(238,578		)	(2,010,514		)
Ending units	2,550			104,602			429,009			3,831,913			11,402,260

The accompanying notes are an integral part of these financial statements.

A74

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	Wells Fargo VT Opportunity Fund (Class 1)			AST Prudential Core Bond Portfolio			AST Bond Portfolio 2023			AST MFS Growth Allocation Portfolio			AST Western Asset Emerging Markets Debt Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(1,910	)	$	(324,991	)	$	(20,955	)	$	(1,013,490	)	$	(5,967	)
Capital gains distributions received	13,401			—			—			—			—
Net realized gain (loss) on shares redeemed	11,215			258,755			(8,629		)	2,976,717			3,128
Net change in unrealized appreciation (depreciation) on investments	(33,792		)	(446,808		)	38			(8,265,006		)	(55,677		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(11,086		)	(513,044		)	(29,546		)	(6,301,779		)	(58,516		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	—			2,069,363			—			4,831,010			143,453
Annuity payments	—			—			—			(33,611		)	—
Surrenders, withdrawals and death benefits	(400		)	(1,948,984		)	(310,396		)	(3,704,727		)	(21,276		)
Net transfers between other subaccounts
or fixed rate option	(32,319		)	2,477,207			97,173			(7,602,485		)	(80,619		)
Miscellaneous transactions	—			251			—			631			14
Other charges	(11		)	(218,825		)	(355		)	(743,466		)	(3,414		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(32,730		)	2,379,012			(213,578		)	(7,252,648		)	38,158
TOTAL INCREASE (DECREASE) IN NET ASSETS	(43,816		)	1,865,968			(243,124		)	(13,554,427		)	(20,358		)
NET ASSETS
Beginning of period	170,942			26,413,996			1,332,792			64,865,648			748,809
End of period	$	127,126		$	28,279,964		$	1,089,668		$	51,311,221		$	728,451
Beginning units	7,970			2,336,855			131,168			4,640,874			68,309
Units issued	—			831,491			13,953			953,461			21,980
Units redeemed	(1,474		)	(617,358		)	(35,393		)	(1,525,262		)	(18,661		)
Ending units	6,496			2,550,988			109,728			4,069,073			71,628

The accompanying notes are an integral part of these financial statements.

A75

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST MFS Large-Cap Value Portfolio			AST Bond Portfolio 2024			AST AQR Emerging Markets Equity Portfolio			AST ClearBridge Dividend Growth Portfolio			AST Multi-Sector Fixed Income Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(232,438	)	$	(93,178	)	$	(23,291	)	$	(217,399	)	$	(25,426,919	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	1,078,338			(40,626		)	37,574			887,773			599,523
Net change in unrealized appreciation (depreciation) on investments	(2,707,312		)	29,146			(579,497		)	(1,504,994		)	(73,854,608		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(1,861,412		)	(104,658		)	(565,214		)	(834,620		)	(98,682,004		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	1,104,453			—			756,673			356,695			327,332,988
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(985,819		)	(1,053,695		)	(144,112		)	(645,697		)	(73,394,061		)
Net transfers between other subaccounts
or fixed rate option	(1,501,562		)	1,046,373			(117,906		)	(2,097,207		)	—
Miscellaneous transactions	(890		)	(78		)	173			161			(14,560		)
Other charges	(133,476		)	(541		)	(10,186		)	(117,344		)	(208,618		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(1,517,294		)	(7,941		)	484,642			(2,503,392		)	253,715,749
TOTAL INCREASE (DECREASE) IN NET ASSETS	(3,378,706		)	(112,599		)	(80,572		)	(3,338,012		)	155,033,745
NET ASSETS
Beginning of period	17,577,745			4,241,174			2,446,780			15,029,089			1,281,279,813
End of period	$	14,199,039		$	4,128,575		$	2,366,208		$	11,691,077		$	1,436,313,558
Beginning units	972,002			432,244			193,188			930,640			113,950,074
Units issued	303,337			291,074			96,542			135,281			24,967,594
Units redeemed	(381,850		)	(289,792		)	(58,265		)	(295,623		)	(977,674		)
Ending units	893,489			433,526			231,465			770,298			137,939,994

The accompanying notes are an integral part of these financial statements.

A76

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST AQR Large-Cap Portfolio			AST QMA Large-Cap Portfolio			AST Bond Portfolio 2025			AST T. Rowe Price Growth Opportunities Portfolio			AST Goldman Sachs Global Growth Allocation Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(14,834	)	$	(11,869	)	$	(35,224	)	$	(2,098,447	)	$	(27,174	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	48,118			28,327			(6,206		)	1,204,393			54,923
Net change in unrealized appreciation (depreciation) on investments	(193,615		)	(125,536		)	57,018			(14,991,878		)	(483,093		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(160,331		)	(109,078		)	15,588			(15,885,932		)	(455,344		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	456,463			240,341			—			70,615,062			507,421
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(110,484		)	(29,778		)	(338,535		)	(2,594,477		)	(202,991		)
Net transfers between other subaccounts
or fixed rate option	110,415			10,106			2,489,447			(27,613,922		)	21,342
Miscellaneous transactions	88			198			(32		)	(11,911		)	583
Other charges	(6,338		)	(4,837		)	(99		)	(1,720,260		)	(25,560		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	450,144			216,030			2,150,781			38,674,492			300,795
TOTAL INCREASE (DECREASE) IN NET ASSETS	289,813			106,952			2,166,369			22,788,560			(154,549		)
NET ASSETS
Beginning of period	1,465,672			1,089,877			302,765			105,997,701			4,243,065
End of period	$	1,755,485		$	1,196,829		$	2,469,134		$	128,786,261		$	4,088,516
Beginning units	86,348			62,727			27,638			8,173,030			344,821
Units issued	41,499			19,663			298,207			5,948,030			57,031
Units redeemed	(13,060		)	(7,861		)	(98,527		)	(3,220,637		)	(32,619		)
Ending units	114,787			74,529			227,318			10,900,423			369,233

The accompanying notes are an integral part of these financial statements.

A77

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST T. Rowe Price Diversified Real Growth Portfolio			AST Prudential Flexible Multi-Strategy Portfolio			AST Franklin Templeton K2 Global Absolute Return Portfolio			AST Managed Equity Portfolio			AST Managed Fixed Income Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(45,549	)	$	(77,828	)	$	(17,565	)	$	(21,987	)	$	(36,419	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	108,264			144,242			25,877			147,127			13,025
Net change in unrealized appreciation (depreciation) on investments	(624,380		)	(1,042,930		)	(190,877		)	(569,403		)	(54,415		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(561,665		)	(976,516		)	(182,565		)	(444,263		)	(77,809		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	910,701			2,298,417			463,470			749,029			1,197,522
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(258,963		)	(533,060		)	(285,876		)	(182,608		)	(368,691		)
Net transfers between other subaccounts
or fixed rate option	(161,299		)	295,530			(173,555		)	(608,181		)	(158,444		)
Miscellaneous transactions	54			(288		)	(2		)	1,285			71
Other charges	(41,651		)	(72,978		)	(17,383		)	(20,396		)	(35,680		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	448,842			1,987,621			(13,346		)	(60,871		)	634,778
TOTAL INCREASE (DECREASE) IN NET ASSETS	(112,823		)	1,011,105			(195,911		)	(505,134		)	556,969
NET ASSETS
Beginning of period	6,780,814			11,888,899			3,040,546			3,559,030			5,408,956
End of period	$	6,667,991		$	12,900,004		$	2,844,635		$	3,053,896		$	5,965,925
Beginning units	527,888			921,908			299,365			273,406			518,715
Units issued	80,052			229,587			47,000			60,486			135,178
Units redeemed	(45,223		)	(74,457		)	(49,185		)	(65,075		)	(73,223		)
Ending units	562,717			1,077,038			297,180			268,817			580,670

The accompanying notes are an integral part of these financial statements.

A78

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST FQ Absolute Return Currency Portfolio			AST Jennison Global Infrastructure Portfolio			AST PIMCO Dynamic Bond Portfolio			AST Legg Mason Diversified Growth Portfolio			AST Bond Portfolio 2026
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(2,867	)	$	(10,106	)	$	(5,404	)	$	(610,917	)	$	(388,628	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	(791		)	15,960			417			364,150			(248,897		)
Net change in unrealized appreciation (depreciation) on investments	(27,085		)	(162,090		)	(2,865		)	(3,358,543		)	180,414
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(30,743		)	(156,236		)	(7,852		)	(3,605,310		)	(457,111		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	9,450			240,291			247,566			10,116,371			—
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(36,574		)	(20,906		)	(28,106		)	(580,783		)	(2,548,896		)
Net transfers between other subaccounts
or fixed rate option	17,591			(91,418		)	90,195			(5,624,637		)	3,545,871
Miscellaneous transactions	(1		)	(29		)	—			(486		)	(16		)
Other charges	(2,800		)	(9,314		)	(4,949		)	(508,491		)	(5,372		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	(12,334		)	118,624			304,706			3,401,974			991,587
TOTAL INCREASE (DECREASE) IN NET ASSETS	(43,077		)	(37,612		)	296,854			(203,336		)	534,476
NET ASSETS
Beginning of period	529,141			1,682,589			788,382			35,641,549			16,629,330
End of period	$	486,064		$	1,644,977		$	1,085,236		$	35,438,213		$	17,163,806
Beginning units	51,998			142,618			82,555			3,030,888			1,675,958
Units issued	4,492			25,030			45,247			1,131,510			1,189,076
Units redeemed	(5,592		)	(14,279		)	(13,180		)	(904,862		)	(1,077,315		)
Ending units	50,898			153,369			114,622			3,257,536			1,787,719

The accompanying notes are an integral part of these financial statements.

A79

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST AB Global Bond Portfolio			AST Goldman Sachs Global Income Portfolio			AST Morgan Stanley Multi-Asset Portfolio			AST Wellington Management Global Bond Portfolio			AST Neuberger Berman Long/Short Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(10,463	)	$	(3,287	)	$	(1,697	)	$	(3,230	)	$	(8,803	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	9,546			253			(6		)	978			7,510
Net change in unrealized appreciation (depreciation) on investments	(1,443		)	(1,517		)	(1,185		)	20,673			(152,191		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(2,360		)	(4,551		)	(2,888		)	18,421			(153,484		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	556,274			16,069			103,328			153,064			529,116
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(103,180		)	(12,102		)	(3,611		)	(9,213		)	(55,973		)
Net transfers between other subaccounts
or fixed rate option	(215,740		)	14,717			82,379			81,330			497,003
Miscellaneous transactions	2			(2		)	—			—			586
Other charges	(10,092		)	(3,076		)	(1,660		)	(2,961		)	(7,815		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	227,264			15,606			180,436			222,220			962,917
TOTAL INCREASE (DECREASE) IN NET ASSETS	224,904			11,055			177,548			240,641			809,433
NET ASSETS
Beginning of period	1,595,617			495,231			185,321			456,111			994,891
End of period	$	1,820,521		$	506,286		$	362,869		$	696,752		$	1,804,324
Beginning units	149,189			47,284			20,401			43,524			89,079
Units issued	59,817			3,412			21,517			24,334			96,905
Units redeemed	(38,433		)	(1,912		)	(1,461		)	(3,059		)	(10,664		)
Ending units	170,573			48,784			40,457			64,799			175,320

The accompanying notes are an integral part of these financial statements.

A80

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST Wellington Management Real Total Return Portfolio			AST QMA International Core Equity Portfolio			AST Managed Alternatives Portfolio			AST Emerging Managers Diversified Portfolio			AST Columbia Adaptive Risk Allocation Portfolio
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(1,949	)	$	(5,639	)	$	(10,931	)	$	(5,263	)	$	(8,319	)
Capital gains distributions received	—			—			—			—			—
Net realized gain (loss) on shares redeemed	(71		)	6,720			1,756			17,900			19,762
Net change in unrealized appreciation (depreciation) on investments	(20,086		)	(167,123		)	(65,284		)	(69,624		)	(95,975		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(22,106		)	(166,042		)	(74,459		)	(56,987		)	(84,532		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	102,852			291,493			619,750			55,565			257,784
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(4,778		)	(39,970		)	(88,937		)	(69,181		)	(42,901		)
Net transfers between other subaccounts
or fixed rate option	7,846			26,857			(132,446		)	(83,279		)	51,295
Miscellaneous transactions	—			(26		)	73			(90		)	(5		)
Other charges	(1,870		)	(5,397		)	(10,188		)	(5,235		)	(7,894		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	104,050			272,957			388,252			(102,220		)	258,279
TOTAL INCREASE (DECREASE) IN NET ASSETS	81,944			106,915			313,793			(159,207		)	173,747
NET ASSETS
Beginning of period	284,769			778,734			1,619,148			935,916			1,332,638
End of period	$	366,713		$	885,649		$	1,932,941		$	776,709		$	1,506,385
Beginning units	31,206			66,377			163,567			82,091			112,243
Units issued	12,086			31,293			70,301			6,770			37,458
Units redeemed	(517		)	(8,161		)	(30,695		)	(15,691		)	(15,642		)
Ending units	42,775			89,509			203,173			73,170			134,059

The accompanying notes are an integral part of these financial statements.

A81

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	Blackrock Global Allocation V.I. Fund (Class III)			JPMorgan Insurance Trust Income Builder Portfolio (Class 2)			AST Bond Portfolio 2027			NVIT Emerging Markets Fund (Class D)			AST Bond Portfolio 2028
	1/1/2018			1/1/2018			1/1/2018			1/1/2018			1/1/2018
	to			to			to			to			to
	12/31/2018			12/31/2018			12/31/2018			12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	12,852		$	(12,125	)	$	(295,812	)	$	(5,660	)	$	(83,630	)
Capital gains distributions received	262,524			3,191			—			—			—
Net realized gain (loss) on shares redeemed	(50,633		)	4,095			(238,983		)	5,392			4,753
Net change in unrealized appreciation (depreciation) on investments	(751,911		)	(106,226		)	151,240			(93,025		)	176,483
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	(527,168		)	(111,065		)	(383,555		)	(93,293		)	97,606
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	3,617,298			399,798			—			170			—
Annuity payments	—			—			—			—			—
Surrenders, withdrawals and death benefits	(40,599		)	(82,758		)	(2,134,115		)	(24,950		)	(363,653		)
Net transfers between other subaccounts
or fixed rate option	(1,635,503		)	530,883			2,396,222			35,016			5,121,001
Miscellaneous transactions	(67		)	(3		)	(183		)	(2		)	26
Other charges	(33,870		)	(11,601		)	(4,224		)	(796		)	(572		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	1,907,259			836,319			257,700			9,438			4,756,802
TOTAL INCREASE (DECREASE) IN NET ASSETS	1,380,091			725,254			(125,855		)	(83,855		)	4,854,408
NET ASSETS
Beginning of period	3,899,882			1,434,202			12,982,975			462,032			46,329
End of period	$	5,279,973		$	2,159,456		$	12,857,120		$	378,177		$	4,900,737
Beginning units	335,511			122,558			1,311,487			34,190			4,647
Units issued	330,466			82,259			942,475			5,167			842,019
Units redeemed	(171,349		)	(9,462		)	(908,707		)	(4,796		)	(337,005		)
Ending units	494,628			195,355			1,345,255			34,561			509,661

The accompanying notes are an integral part of these financial statements.

A82

FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

STATEMENTS OF CHANGES IN NET ASSETS

For the period ended December 31, 2018

	SUBACCOUNTS
	AST Bond Portfolio 2029			AST American Funds Growth Allocation Portfolio
	1/2/2018*			4/30/2018*
	to			to
	12/31/2018			12/31/2018
OPERATIONS
Net investment income (loss)	$	(626	)	$	(101,329	)
Capital gains distributions received	—			—
Net realized gain (loss) on shares redeemed	879			(202,169		)
Net change in unrealized appreciation (depreciation) on investments	4,656			(1,366,823		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	4,909			(1,670,321		)
CONTRACT OWNER TRANSACTIONS
Contract owner net payments	—			26,288,413
Annuity payments	—			—
Surrenders, withdrawals and death benefits	(1,857		)	(9,720		)
Net transfers between other subaccounts
or fixed rate option	146,900			(1,077,550		)
Miscellaneous transactions	—			1,079
Other charges	(10		)	(52,402		)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CONTRACT OWNER TRANSACTIONS	145,033			25,149,820
TOTAL INCREASE (DECREASE) IN NET ASSETS	149,942			23,479,499
NET ASSETS
Beginning of period	—			—
End of period	$	149,942		$	23,479,499
Beginning units	—			—
Units issued	19,143			2,726,623
Units redeemed	(3,594		)	(244,528		)
Ending units	15,549			2,482,095

* Date subaccount became available for investment.

The accompanying notes are an integral part of these financial statements.

A83

NOTES TO FINANCIAL STATEMENTS OF

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

DECEMBER 31, 2019

Note 1:    General

Pruco Life of New Jersey Flexible Premium Variable Annuity Account (the “Account”) was established under the laws of the State of New Jersey on May 20, 1996 as a separate investment account of Pruco Life Insurance Company of New Jersey (“Pruco Life of New Jersey”), which is a wholly-owned subsidiary of Pruco Life Insurance Company (an Arizona domiciled company), which in turn is wholly-owned by The Prudential Insurance Company of America (“Prudential”). Prudential is a wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). Under applicable insurance law, the assets and liabilities of the Account are clearly identified and distinguished from the other assets and liabilities of Pruco Life of New Jersey. Proceeds from purchases of the variable annuity contracts listed below (individually, a “contract” or “product” and collectively, the “contracts” or “products”) are invested in the Account. The portion of the Account’s assets applicable to the contracts is not chargeable with liabilities arising out of any other business Pruco Life of New Jersey may conduct.

Discovery Choice	Strategic Partners Advisor
Discovery Select	Strategic Partners FlexElite
Prudential Defined Income Annuity	Strategic Partners FlexElite 2
Prudential Premier Advisor Variable Annuity Series	Strategic Partners Plus
Prudential Premier Investment Variable Annuity B, C Series	Strategic Partners Plus 3
Prudential Premier Retirement Variable Annuity	Strategic Partners Select
Prudential Premier Retirement Variable Annuity X, B, L, C Series	Strategic Partners Variable Annuity One
Prudential Premier Variable Annuity B, L, X Series	Strategic Partners Variable Annuity One 3
Prudential Premier Variable Annuity Bb Series

The Account is registered with the Securities and Exchange Commission ("SEC") under the Investment Company Act of 1940, as amended, as a unit investment trust. The Account is a funding vehicle for the contracts. The contracts offer the option to invest in various subaccounts listed below, each of which invests in a corresponding portfolio of either The Prudential Series Fund, the Advanced Series Trust or one of the non-Prudential administered funds (collectively, the “Portfolios”). Investment options vary by contract.

The corresponding subaccount names are as follows:

Prudential Government Money Market Portfolio	Janus Henderson VIT Research Portfolio
Prudential Diversified Bond Portfolio	(Service Shares)
Prudential Equity Portfolio (Class I)	SP Prudential U.S. Emerging Growth Portfolio
Prudential Value Portfolio (Class I)	(Class I)
Prudential High Yield Bond Portfolio	Prudential SP International Growth Portfolio (Class I)
Prudential Stock Index Portfolio	AST Goldman Sachs Large-Cap Value Portfolio*
Prudential Global Portfolio	AST Cohen & Steers Realty Portfolio
Prudential Jennison Portfolio (Class I)	AST J.P. Morgan Strategic Opportunities Portfolio
Prudential Small Capitalization Stock Portfolio	AST T. Rowe Price Large-Cap Value Portfolio
T. Rowe Price International Stock Portfolio	AST High Yield Portfolio
T. Rowe Price Equity Income Portfolio (Equity	AST Small-Cap Growth Opportunities Portfolio
Income Class)	AST WEDGE Capital Mid-Cap Value Portfolio
Invesco V.I. Core Equity Fund (Series I)	AST Small-Cap Value Portfolio
Janus Henderson VIT Research Portfolio	AST Mid-Cap Growth Portfolio (formerly AST
(Institutional Shares)	Goldman Sachs Mid-Cap Growth Portfolio)
Janus Henderson VIT Overseas Portfolio	AST Hotchkis & Wiley Large-Cap Value Portfolio
(Institutional Shares)	AST Loomis Sayles Large-Cap Growth Portfolio
MFS® Research Series (Initial Class)	AST MFS Growth Portfolio
MFS® Growth Series (Initial Class)	AST Neuberger Berman/LSV Mid-Cap Value Portfolio
American Century VP Value Fund (Class I)	AST BlackRock Low Duration Bond Portfolio
Franklin Small-Mid Cap Growth VIP Fund (Class 2)	AST QMA US Equity Alpha Portfolio
Prudential Jennison 20/20 Focus Portfolio (Class I)	AST T. Rowe Price Natural Resources Portfolio
Davis Value Portfolio	AST T. Rowe Price Asset Allocation Portfolio
AB VPS Large Cap Growth Portfolio (Class B)	AST MFS Global Equity Portfolio
Prudential SP Small Cap Value Portfolio (Class I)	AST J.P. Morgan International Equity Portfolio

A84

Note 1: General (Continued)

AST Templeton Global Bond Portfolio	AST Bond Portfolio 2023
AST Wellington Management Hedged Equity Portfolio	AST MFS Growth Allocation Portfolio (formerly
AST Capital Growth Asset Allocation Portfolio	AST New Discovery Asset Allocation Portfolio)
AST Academic Strategies Asset Allocation Portfolio	AST Western Asset Emerging Markets Debt Portfolio
AST Balanced Asset Allocation Portfolio	AST MFS Large-Cap Value Portfolio
AST Preservation Asset Allocation Portfolio	AST Bond Portfolio 2024
AST Fidelity Institutional AM℠ Quantitative Portfolio	AST AQR Emerging Markets Equity Portfolio
AST Prudential Growth Allocation Portfolio	AST ClearBridge Dividend Growth Portfolio
AST Advanced Strategies Portfolio	AST Multi-Sector Fixed Income Portfolio
AST T. Rowe Price Large-Cap Growth Portfolio	AST AQR Large-Cap Portfolio
AST Government Money Market Portfolio	AST QMA Large-Cap Portfolio
AST Small-Cap Growth Portfolio	AST Bond Portfolio 2025
AST BlackRock/Loomis Sayles Bond Portfolio	AST T. Rowe Price Growth Opportunities Portfolio
AST International Value Portfolio	AST Goldman Sachs Global Growth Allocation
AST International Growth Portfolio	Portfolio
AST Investment Grade Bond Portfolio	AST T. Rowe Price Diversified Real Growth Portfolio
AST Western Asset Core Plus Bond Portfolio	AST Prudential Flexible Multi-Strategy Portfolio
AST Bond Portfolio 2019***	AST Franklin Templeton K2 Global Absolute Return
AST Cohen & Steers Global Realty Portfolio	Portfolio
(formerly AST Global Real Estate Portfolio)	AST Managed Equity Portfolio
AST Parametric Emerging Markets Equity Portfolio	AST Managed Fixed Income Portfolio
AST Goldman Sachs Small-Cap Value Portfolio	AST FQ Absolute Return Currency Portfolio
AST AllianzGI World Trends Portfolio	AST Jennison Global Infrastructure Portfolio
(formerly AST RCM World Trends Portfolio)	AST PIMCO Dynamic Bond Portfolio
AST J.P. Morgan Global Thematic Portfolio	AST Legg Mason Diversified Growth Portfolio
AST Goldman Sachs Multi-Asset Portfolio	AST Bond Portfolio 2026
ProFund VP Consumer Services	AST AB Global Bond Portfolio
ProFund VP Consumer Goods	AST Goldman Sachs Global Income Portfolio
ProFund VP Financials	AST Morgan Stanley Multi-Asset Portfolio***
ProFund VP Health Care	AST Wellington Management Global Bond Portfolio
ProFund VP Industrials	AST Neuberger Berman Long/Short Portfolio
ProFund VP Mid-Cap Growth	AST Wellington Management Real Total Return
ProFund VP Mid-Cap Value	Portfolio***
ProFund VP Real Estate	AST QMA International Core Equity Portfolio
ProFund VP Small-Cap Growth	AST Managed Alternatives Portfolio
ProFund VP Small-Cap Value	AST Emerging Managers Diversified Portfolio***
ProFund VP Telecommunications	AST Columbia Adaptive Risk Allocation Portfolio*
ProFund VP Utilities	Blackrock Global Allocation V.I. Fund (Class III)
ProFund VP Large-Cap Growth	JPMorgan Insurance Trust Income Builder
ProFund VP Large-Cap Value	Portfolio (Class 2)
AST Bond Portfolio 2020	AST Bond Portfolio 2027
AST Jennison Large-Cap Growth Portfolio	NVIT Emerging Markets Fund (Class D)
AST Bond Portfolio 2021	AST Bond Portfolio 2028
Wells Fargo VT International Equity Fund (Class 1)	AST Bond Portfolio 2029
Wells Fargo VT Omega Growth Fund (Class 1)	AST American Funds Growth Allocation Portfolio
AST Bond Portfolio 2022	AST Bond Portfolio 2030
AST Quantitative Modeling Portfolio	AST BlackRock 80/20 Target Allocation ETF Portfolio
AST BlackRock Global Strategies Portfolio	AST BlackRock 60/40 Target Allocation ETF Portfolio
Wells Fargo VT Opportunity Fund (Class 1)	AST Dimensional Global Core Allocation Portfolio
AST Prudential Core Bond Portfolio	Wells Fargo VT Small Cap Growth Fund (Class 1)**

* Subaccount was no longer available for investment as of December 31, 2019.

** Subaccount was available for investment but had no assets as of December 31, 2019, and had no activity during 2019.

*** Subaccount liquidated during the period ended December 31, 2019.

The following table sets forth the dates at which mergers took place in the Account. The transfers from the removed subaccounts to the surviving subaccounts for the period ended December 31, 2019 are reflected in the Statements of Changes in Net Assets as net transfers between subaccounts and purchases and sales in Note 5.

A85

Note 1: General (Continued)

Merger Date	Removed Portfolio	Surviving Portfolio
January 25, 2019	AST Columbia Adaptive Risk Allocation Portfolio	AST T. Rowe Price Diversified Real Growth Portfolio
April 26, 2019	AST Goldman Sachs Large-Cap Value Portfolio	AST T. Rowe Price Large-Cap Value Portfolio

The Portfolios are open-end management investment companies, and each portfolio of The Prudential Series Fund and the Advanced Series Trust is managed by affiliates of Prudential. Each subaccount of the Account indirectly bears exposure to the market, credit and liquidity risks of the portfolio in which it invests. These financial statements should be read in conjunction with the financial statements and footnotes of the Portfolios. Additional information on these Portfolios is available upon request to the appropriate companies.

New sales of certain products which invest in the Account have been discontinued. However, premium payments made by contract owners will continue to be received by the Account.

Note 2: Significant Accounting Policies

The Account is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services-Investment Companies, which is part of the accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and the reported amounts of increases and decreases in net assets resulting from operations during the reporting period. Actual results could differ from those estimates. The most significant estimates relate to the valuation of investment in the Portfolios. Subsequent events have been evaluated through the date these financial statements were issued.

Investments - The investments in shares of the Portfolios are stated at the reported net asset value per share of the respective Portfolios, which is based on the fair value of the underlying securities in the respective Portfolios. All changes in fair value are recorded as net change in unrealized appreciation (depreciation) on investments in the Statements of Operations of the applicable subaccounts.

Security Transactions - Purchase and sale transactions are recorded as of the trade date of the security being purchased or sold. Realized gains and losses on security transactions are determined based upon the average cost method.

Dividend Income and Distributions Received - Dividend and capital gain distributions received are reinvested in additional shares of the Portfolios and are recorded on the ex-distribution date.

Note 3: Fair Value Measurements

Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level 1 - Fair value is based on unadjusted quoted prices in active markets for identical assets or liabilities

that the Account can access.

Level 2 - Fair value is based on significant inputs, other than Level 1 inputs, that are observable for the investment, either directly or indirectly, for substantially the full term of the investment through corroboration with observable market data. Level 2 inputs include the reported net asset value per share of the underlying portfolio, quoted market prices in active markets for similar investments, quoted market prices in markets that are not active for identical or similar investments, and other market observable inputs.

A86

Note 3: Fair Value Measurements (Continued)

Level 3 - Fair value is based on at least one significant unobservable input for the investment, which may require significant judgment or estimation in determining the fair value.

As of December 31, 2019, management determined that the fair value inputs for all of the Account’s investments, which consist solely of investments in open-end mutual funds registered with the SEC, were considered Level 2.

Note 4: Taxes

Pruco Life of New Jersey is taxed as a “life insurance company” as defined by the Internal Revenue Code. The results of operations of the Account form a part of Prudential Financial’s consolidated federal tax return. No federal, state or local income taxes are payable by the Account. As such, no provision for tax liability has been recorded in these financial statements. Prudential management will review periodically the status of the policy in the event of changes in the tax law.

Note 5: Purchases and Sales of Investments

The aggregate costs of purchases and proceeds from sales, excluding distributions received and reinvested, of investments in the Portfolios for the period ended December 31, 2019 were as follows:

	Purchases		Sales
Prudential Government Money Market Portfolio	$	352,780	$	1,133,682
Prudential Diversified Bond Portfolio	442,718		2,460,249
Prudential Equity Portfolio (Class I)	43,837		2,107,340
Prudential Value Portfolio (Class I)	209,710		2,575,819
Prudential High Yield Bond Portfolio	147,140		1,815,157
Prudential Stock Index Portfolio	11,077,183		6,118,678
Prudential Global Portfolio	30,682		585,306
Prudential Jennison Portfolio (Class I)	136,121		3,413,981
Prudential Small Capitalization Stock Portfolio	1,994,908		961,876
T. Rowe Price International Stock Portfolio	17,460		181,659
T. Rowe Price Equity Income Portfolio (Equity Income Class)	45,177		361,996
Invesco V.I. Core Equity Fund (Series I)	19,443		640,699
Janus Henderson VIT Research Portfolio (Institutional Shares)	15,188		381,252
Janus Henderson VIT Overseas Portfolio (Institutional Shares)	96,737		523,102
MFS® Research Series (Initial Class)	2,635		93,289
MFS® Growth Series (Initial Class)	115,085		635,656
American Century VP Value Fund (Class I)	25,064		237,122
Franklin Small-Mid Cap Growth VIP Fund (Class 2)	18,082		307,944
Prudential Jennison 20/20 Focus Portfolio (Class I)	3,324		481,824
Davis Value Portfolio	3,018		461,605
AB VPS Large Cap Growth Portfolio (Class B)	7,071		65,437
Prudential SP Small Cap Value Portfolio (Class I)	159,649		699,787
Janus Henderson VIT Research Portfolio (Service Shares)	11		27,774
SP Prudential U.S. Emerging Growth Portfolio (Class I)	34,932		885,876
Prudential SP International Growth Portfolio (Class I)	13,598		294,602
AST Goldman Sachs Large-Cap Value Portfolio	3,714,110		62,430,222
AST Cohen & Steers Realty Portfolio	7,818,175		10,478,135
AST J.P. Morgan Strategic Opportunities Portfolio	23,899,321		25,205,614
AST T. Rowe Price Large-Cap Value Portfolio	72,223,097		17,208,359

A87

Note 5: Purchases and Sales of Investments (Continued)

	Purchases		Sales
AST High Yield Portfolio	$	7,948,940	$	8,235,728
AST Small-Cap Growth Opportunities Portfolio	5,983,959		5,577,766
AST WEDGE Capital Mid-Cap Value Portfolio	3,350,131		3,312,753
AST Small-Cap Value Portfolio	5,075,554		4,834,463
AST Mid-Cap Growth Portfolio	17,199,145		21,251,998
AST Hotchkis & Wiley Large-Cap Value Portfolio	11,054,606		12,001,269
AST Loomis Sayles Large-Cap Growth Portfolio	14,292,788		15,975,123
AST MFS Growth Portfolio	7,542,732		6,929,415
AST Neuberger Berman/LSV Mid-Cap Value Portfolio	8,493,175		7,469,280
AST BlackRock Low Duration Bond Portfolio	9,854,695		7,057,140
AST QMA US Equity Alpha Portfolio	11,204,899		10,692,245
AST T. Rowe Price Natural Resources Portfolio	9,424,482		6,109,330
AST T. Rowe Price Asset Allocation Portfolio	102,597,829		159,293,808
AST MFS Global Equity Portfolio	7,409,149		10,004,512
AST J.P. Morgan International Equity Portfolio	8,248,752		8,633,008
AST Templeton Global Bond Portfolio	4,498,632		3,000,720
AST Wellington Management Hedged Equity Portfolio	18,743,405		15,926,697
AST Capital Growth Asset Allocation Portfolio	109,845,810		109,172,445
AST Academic Strategies Asset Allocation Portfolio	58,123,384		46,244,065
AST Balanced Asset Allocation Portfolio	89,566,416		124,415,435
AST Preservation Asset Allocation Portfolio	76,654,940		98,314,683
AST Fidelity Institutional AM℠ Quantitative Portfolio	47,419,648		55,645,616
AST Prudential Growth Allocation Portfolio	170,079,123		175,590,679
AST Advanced Strategies Portfolio	53,965,338		85,888,874
AST T. Rowe Price Large-Cap Growth Portfolio	26,417,923		29,044,927
AST Government Money Market Portfolio	44,754,621		48,540,405
AST Small-Cap Growth Portfolio	7,164,021		8,114,968
AST BlackRock/Loomis Sayles Bond Portfolio	47,725,968		44,566,981
AST International Value Portfolio	4,490,351		3,131,166
AST International Growth Portfolio	5,146,687		5,960,179
AST Investment Grade Bond Portfolio	114,746,485		639,635,579
AST Western Asset Core Plus Bond Portfolio	29,396,896		29,517,138
AST Bond Portfolio 2019	458,026		15,599,097
AST Cohen & Steers Global Realty Portfolio	2,284,942		2,302,266
AST Parametric Emerging Markets Equity Portfolio	9,202,532		6,079,418
AST Goldman Sachs Small-Cap Value Portfolio	11,799,086		10,239,596
AST AllianzGI World Trends Portfolio	42,856,295		51,399,307
AST J.P. Morgan Global Thematic Portfolio	29,512,285		27,499,056
AST Goldman Sachs Multi-Asset Portfolio	41,306,581		29,939,593
ProFund VP Consumer Services	85,628		39,826
ProFund VP Consumer Goods	7,855		58,030
ProFund VP Financials	24,247		92,357
ProFund VP Health Care	139,540		55,830
ProFund VP Industrials	65,575		264,971
ProFund VP Mid-Cap Growth	26,629		122,740

A88

Note 5: Purchases and Sales of Investments (Continued)

	Purchases		Sales
ProFund VP Mid-Cap Value	$	100,341	$	56,487
ProFund VP Real Estate	7,064		19,287
ProFund VP Small-Cap Growth	21,591		89,535
ProFund VP Small-Cap Value	54,951		19,125
ProFund VP Telecommunications	2,998		19,802
ProFund VP Utilities	95,267		35,031
ProFund VP Large-Cap Growth	26,100		18,761
ProFund VP Large-Cap Value	110,925		44,528
AST Bond Portfolio 2020	12,135,487		2,956,114
AST Jennison Large-Cap Growth Portfolio	8,292,395		8,368,283
AST Bond Portfolio 2021	3,132,097		5,251,096
Wells Fargo VT International Equity Fund (Class 1)	4,897		786
Wells Fargo VT Omega Growth Fund (Class 1)	130		9,683
AST Bond Portfolio 2022	1,110,616		2,846,083
AST Quantitative Modeling Portfolio	8,821,196		7,158,058
AST BlackRock Global Strategies Portfolio	15,834,654		17,833,331
Wells Fargo VT Opportunity Fund (Class 1)	524		3,684
AST Prudential Core Bond Portfolio	14,270,392		9,866,779
AST Bond Portfolio 2023	3,208		597,335
AST MFS Growth Allocation Portfolio	20,341,622		9,334,365
AST Western Asset Emerging Markets Debt Portfolio	288,179		106,145
AST MFS Large-Cap Value Portfolio	7,646,020		5,535,169
AST Bond Portfolio 2024	331,064		3,533,794
AST AQR Emerging Markets Equity Portfolio	778,519		430,866
AST ClearBridge Dividend Growth Portfolio	6,509,663		4,724,660
AST Multi-Sector Fixed Income Portfolio	400,998,134		17,414,331
AST AQR Large-Cap Portfolio	488,644		490,618
AST QMA Large-Cap Portfolio	512,060		240,518
AST Bond Portfolio 2025	452,689		2,336,800
AST T. Rowe Price Growth Opportunities Portfolio	80,170,646		5,306,292
AST Goldman Sachs Global Growth Allocation Portfolio	892,046		722,340
AST T. Rowe Price Diversified Real Growth Portfolio	2,788,755		982,298
AST Prudential Flexible Multi-Strategy Portfolio	2,174,239		1,198,494
AST Franklin Templeton K2 Global Absolute Return Portfolio	238,619		489,063
AST Managed Equity Portfolio	415,036		252,938
AST Managed Fixed Income Portfolio	1,039,708		1,085,173
AST FQ Absolute Return Currency Portfolio	31,334		49,450
AST Jennison Global Infrastructure Portfolio	242,679		247,536
AST PIMCO Dynamic Bond Portfolio	933,653		190,899
AST Legg Mason Diversified Growth Portfolio	14,436,625		4,127,100
AST Bond Portfolio 2026	6,043,647		14,318,262
AST AB Global Bond Portfolio	373,215		331,960
AST Goldman Sachs Global Income Portfolio	292,157		36,634
AST Morgan Stanley Multi-Asset Portfolio	19,313		384,334
AST Wellington Management Global Bond Portfolio	255,000		139,385

A89

Note 5: Purchases and Sales of Investments (Continued)

	Purchases		Sales
AST Neuberger Berman Long/Short Portfolio	$	401,511	$	214,383
AST Wellington Management Real Total Return Portfolio	24,930		405,629
AST QMA International Core Equity Portfolio	286,678		243,083
AST Managed Alternatives Portfolio	455,243		276,893
AST Emerging Managers Diversified Portfolio	33,697		892,077
AST Columbia Adaptive Risk Allocation Portfolio	3,063		1,563,806
Blackrock Global Allocation V.I. Fund (Class III)	580,751		1,437,938
JPMorgan Insurance Trust Income Builder Portfolio (Class 2)	331,881		315,012
AST Bond Portfolio 2027	2,802,384		11,150,313
NVIT Emerging Markets Fund (Class D)	63,477		47,698
AST Bond Portfolio 2028	3,375,846		7,486,597
AST Bond Portfolio 2029	4,334,146		600,266
AST American Funds Growth Allocation Portfolio	42,831,583		1,554,049
AST Bond Portfolio 2030	7,036,756		5,072,782
AST BlackRock 80/20 Target Allocation ETF Portfolio	26,211,606		755,055
AST BlackRock 60/40 Target Allocation ETF Portfolio	17,377,012		139,952
AST Dimensional Global Core Allocation Portfolio	8,522		4

Note 6: Related Party Transactions

The Account has extensive transactions and relationships with Prudential and other affiliates. Due to these relationships, it is possible that the terms of these transactions are not the same as those that would result from transactions among wholly unrelated parties. Prudential Financial and its affiliates perform various services on behalf of the portfolios of The Prudential Series Fund and the Advanced Series Trust in which the Account invests and may receive fees for the services performed. These services include, among other things, investment management, subadvisory, shareholder communications, postage, transfer agency and various other record keeping, administrative and customer service functions.

The Prudential Series Fund has entered into a management agreement with PGIM Investments LLC (“PGIM Investments”), and the Advanced Series Trust has entered into a management agreement with PGIM Investments and AST Investment Services, Inc., both indirect, wholly-owned subsidiaries of Prudential Financial (together, the “Investment Managers”). Pursuant to these agreements, the Investment Managers have responsibility for all investment advisory services and supervise the subadvisers’ performance of such services with respect to each portfolio of The Prudential Series Fund and the Advanced Series Trust. The Investment Managers have entered into subadvisory agreements with several subadvisers, including PGIM, Inc., Jennison Associates LLC, and QMA LLC (formerly Quantitative Management Associates LLC), each of which are indirect, wholly-owned subsidiaries of Prudential Financial.

The Prudential Series Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), an indirect, wholly-owned subsidiary of Prudential Financial, which acts as the distributor of the Class I and Class II shares of the portfolios of The Prudential Series Fund. No distribution or service (12b-1) fees are paid to PIMS as distributor of the Class I shares of the portfolios of The Prudential Series Fund, which is the class of shares owned by the Account.

The Advanced Series Trust has a distribution agreement with Prudential Annuities Distributors, Inc. (“PAD”), an indirect, wholly-owned subsidiary of Prudential Financial, which acts as the distributor of the shares of each portfolio of the Advanced Series Trust. Distribution and service fees are paid to PAD by most portfolios of the Advanced Series Trust.

Prudential Mutual Fund Services LLC, an affiliate of the Investment Managers and an indirect, wholly-owned subsidiary of Prudential Financial, serves as the transfer agent of each portfolio of The Prudential Series Fund and the Advanced Series Trust.

A90

Note 6: Related Party Transactions (Continued)

Certain charges and fees of the portfolios of The Prudential Series Fund and the Advanced Series Trust may be waived and/or reimbursed by Prudential and its affiliates. Prudential and its affiliates reserve the right to discontinue these waivers/reimbursements at its discretion, subject to the contractual obligations of Prudential and its affiliates.

See The Prudential Series Fund and the Advanced Series Trust financial statements for further discussion of such expense and waiver/reimbursement arrangements. The Account indirectly bears the expenses of the underlying portfolios of The Prudential Series Fund and the Advanced Series Trust in which it invests, including the related party expenses disclosed above.

In 2016, Prudential Financial self-reported to the SEC and the U.S. Department of Labor (“DOL”), and notified other regulators, that in some cases it failed to maximize securities lending income for the benefit of certain portfolios of The Prudential Series Fund and the Advanced Series Trust due to a long-standing restriction benefitting Prudential Financial that limited the availability of loanable securities. Prudential Financial has removed the restriction and implemented a remediation plan for the benefit of customers. As part of Prudential Financial’s review of this matter, in 2018 it further self-reported to the SEC, and notified other regulators, that in some cases it failed to timely process foreign tax reclaims for certain portfolios of The Prudential Series Fund and the Advanced Series Trust. Prudential Financial has corrected the foreign tax reclaim process and has implemented a remediation plan for the benefit of customers. The DOL’s review of the securities lending matter is closed. In September 2019, Prudential Financial reached a settlement of these matters with the SEC. As part of the settlement Prudential Financial agreed to pay a fine of $5 million and disgorgement of $27.6 million, and consented to the entry of an Administrative Order containing findings that two subsidiaries of Prudential Financial violated certain sections of the Investment Advisers Act of 1940 and the Investment Advisers Act Rules and ordering the subsidiaries to cease and desist from committing or causing any violations and any future violations of those provisions. In reaching this settlement, Prudential Financial neither admitted nor denied the SEC’s findings.

Note 7: Financial Highlights

Pruco Life of New Jersey sells a number of variable annuity products that are funded through the Account. These products have unique combinations of features and fees that are charged against the contract owner’s account balance. Differences in the fee structures result in a variety of unit values, expense ratios and total returns.

In the table below, the units, the net assets, the investment income ratio, and the ranges of lowest to highest unit values, expense ratios, and total returns are presented for the products offered by Pruco Life of New Jersey and funded through the Account. Only product designs within each subaccount that had units outstanding during the respective periods were considered when determining the ranges. The summary may not reflect the minimum and maximum contract charges as contract owners may not have selected all available contract options offered by Pruco Life of New Jersey.

A91

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*			Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	Prudential Government Money Market Portfolio
December 31, 2019	4,620	$	0.92	to	$	9.84	$	5,543	1.91	%		1.00	%	to	1.75	%	0.17	%	to	0.91	%
December 31, 2018	5,292	$	0.92	to	$	9.75	$	6,213	1.51	%		1.00	%	to	1.75	%	-0.24	%	to	0.52	%
December 31, 2017	6,350	$	0.92	to	$	9.70	$	7,457	0.55	%		1.00	%	to	1.75	%	-1.19	%	to	-0.44	%
December 31, 2016	7,027	$	0.93	to	$	9.74	$	8,291	0.09	%		1.00	%	to	1.75	%	-1.58	%	to	-0.90	%
December 31, 2015	7,672	$	0.94	to	$	9.83	$	9,166	0.00	%	(1)	1.00	%	to	1.80	%	-1.85	%	to	-0.99	%
	Prudential Diversified Bond Portfolio
December 31, 2019	4,326	$	2.40	to	$	2.95	$	12,762	0.00	%		1.35	%	to	1.65	%	9.10	%	to	9.42	%
December 31, 2018	4,972	$	2.20	to	$	2.70	$	13,399	0.00	%		1.35	%	to	1.65	%	-1.78	%	to	-1.49	%
December 31, 2017	5,697	$	2.24	to	$	2.74	$	15,603	0.00	%		1.35	%	to	1.65	%	5.27	%	to	5.58	%
December 31, 2016	6,274	$	2.12	to	$	2.60	$	16,285	0.00	%		1.35	%	to	1.65	%	3.88	%	to	4.19	%
December 31, 2015	7,285	$	2.05	to	$	2.50	$	18,162	0.00	%		1.35	%	to	1.65	%	-1.88	%	to	-1.59	%
	Prudential Equity Portfolio (Class I)
December 31, 2019	3,905	$	2.70	to	$	4.70	$	17,364	0.00	%		1.35	%	to	1.80	%	26.60	%	to	27.17	%
December 31, 2018	4,371	$	2.13	to	$	3.70	$	15,238	0.00	%		1.35	%	to	1.80	%	-6.55	%	to	-6.13	%
December 31, 2017	5,154	$	2.28	to	$	3.94	$	19,207	0.00	%		1.35	%	to	1.80	%	23.56	%	to	24.11	%
December 31, 2016	5,867	$	1.84	to	$	3.18	$	17,601	0.00	%		1.35	%	to	1.80	%	1.95	%	to	2.39	%
December 31, 2015	6,571	$	1.80	to	$	3.11	$	19,282	0.00	%		1.35	%	to	1.80	%	0.55	%	to	0.99	%
	Prudential Value Portfolio (Class I)
December 31, 2019	4,886	$	2.54	to	$	5.13	$	19,106	0.00	%		1.35	%	to	1.80	%	23.83	%	to	24.38	%
December 31, 2018	5,461	$	2.05	to	$	4.13	$	17,214	0.00	%		1.35	%	to	1.80	%	-11.48	%	to	-11.09	%
December 31, 2017	6,702	$	2.32	to	$	4.64	$	24,414	0.00	%		1.35	%	to	1.80	%	14.92	%	to	15.43	%
December 31, 2016	7,755	$	2.02	to	$	4.03	$	24,239	0.00	%		1.35	%	to	1.80	%	9.43	%	to	9.92	%
December 31, 2015	8,663	$	1.84	to	$	3.66	$	24,661	0.00	%		1.35	%	to	1.80	%	-9.82	%	to	-9.42	%
	Prudential High Yield Bond Portfolio
December 31, 2019	2,267	$	2.70	to	$	19.13	$	11,776	0.00	%		1.35	%	to	1.80	%	14.27	%	to	14.78	%
December 31, 2018	2,557	$	2.36	to	$	16.68	$	11,646	2.95	%		1.35	%	to	1.80	%	-3.02	%	to	-2.58	%
December 31, 2017	3,035	$	2.43	to	$	17.13	$	14,230	6.09	%		1.35	%	to	1.80	%	5.90	%	to	6.39	%
December 31, 2016	3,347	$	2.29	to	$	16.11	$	14,952	6.43	%		1.35	%	to	1.80	%	14.19	%	to	14.69	%
December 31, 2015	3,995	$	2.00	to	$	14.05	$	15,391	6.19	%		1.35	%	to	1.80	%	-4.17	%	to	-3.74	%
	Prudential Stock Index Portfolio
December 31, 2019	5,676	$	2.29	to	$	12.34	$	32,340	0.00	%		0.48	%	to	1.95	%	8.05	%	to	30.35	%
December 31, 2018	5,460	$	1.77	to	$	9.47	$	20,531	0.00	%		0.55	%	to	1.95	%	-6.26	%	to	-4.55	%
December 31, 2017	5,984	$	1.89	to	$	4.31	$	22,041	1.59	%		1.35	%	to	1.75	%	19.38	%	to	19.85	%
December 31, 2016	6,973	$	1.58	to	$	3.60	$	21,657	1.84	%		1.35	%	to	1.75	%	9.92	%	to	10.34	%
December 31, 2015	7,938	$	1.43	to	$	3.26	$	22,239	1.49	%		1.35	%	to	1.75	%	-0.56	%	to	-0.16	%
	Prudential Global Portfolio
December 31, 2019	1,263	$	1.77	to	$	3.86	$	4,321	0.00	%		1.40	%	to	1.75	%	28.15	%	to	28.59	%
December 31, 2018	1,456	$	1.38	to	$	3.00	$	3,779	0.00	%		1.40	%	to	1.75	%	-8.92	%	to	-8.60	%
December 31, 2017	1,895	$	1.51	to	$	3.28	$	5,464	0.00	%		1.40	%	to	1.75	%	22.70	%	to	23.12	%
December 31, 2016	2,057	$	1.23	to	$	2.67	$	4,846	0.00	%		1.35	%	to	1.75	%	2.65	%	to	3.06	%
December 31, 2015	2,247	$	1.19	to	$	2.59	$	5,125	0.00	%		1.35	%	to	1.80	%	0.56	%	to	1.01	%
	Prudential Jennison Portfolio (Class I)
December 31, 2019	4,496	$	2.25	to	$	6.56	$	25,179	0.00	%		1.35	%	to	1.80	%	30.99	%	to	31.57	%
December 31, 2018	5,052	$	1.71	to	$	4.99	$	21,649	0.00	%		1.35	%	to	1.80	%	-2.54	%	to	-2.11	%
December 31, 2017	6,090	$	1.75	to	$	5.10	$	26,906	0.00	%		1.35	%	to	1.80	%	34.29	%	to	34.88	%
December 31, 2016	7,092	$	1.30	to	$	3.78	$	23,229	0.00	%		1.35	%	to	1.80	%	-2.64	%	to	-2.22	%
December 31, 2015	8,014	$	1.34	to	$	3.87	$	26,666	0.00	%		1.35	%	to	1.80	%	9.51	%	to	10.00	%
	Prudential Small Capitalization Stock Portfolio
December 31, 2019	925	$	5.28	to	$	10.80	$	7,261	0.00	%		0.48	%	to	1.90	%	4.55	%	to	21.75	%
December 31, 2018	832	$	4.37	to	$	8.87	$	5,004	0.00	%		0.55	%	to	1.90	%	-11.25	%	to	-9.95	%
December 31, 2017	760	$	4.85	to	$	5.97	$	4,531	0.00	%		1.35	%	to	1.40	%	11.44	%	to	11.50	%
December 31, 2016	843	$	4.35	to	$	5.36	$	4,487	0.00	%		1.35	%	to	1.40	%	24.76	%	to	24.82	%
December 31, 2015	947	$	3.49	to	$	4.29	$	4,041	0.00	%		1.35	%	to	1.40	%	-3.64	%	to	-3.58	%

A92

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*		Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	T. Rowe Price International Stock Portfolio
December 31, 2019	748	$	2.15	to	$	2.15	$	1,607	2.39	%	1.40	%	to	1.40	%	26.00	%	to	26.00	%
December 31, 2018	822	$	1.71	to	$	1.71	$	1,401	1.33	%	1.40	%	to	1.40	%	-15.40	%	to	-15.40	%
December 31, 2017	921	$	2.02	to	$	2.02	$	1,857	1.12	%	1.40	%	to	1.40	%	26.12	%	to	26.12	%
December 31, 2016	996	$	1.60	to	$	1.60	$	1,593	1.04	%	1.40	%	to	1.40	%	0.72	%	to	0.72	%
December 31, 2015	1,075	$	1.21	to	$	1.59	$	1,706	0.92	%	1.35	%	to	1.40	%	-2.28	%	to	-2.23	%
	T. Rowe Price Equity Income Portfolio (Equity Income Class)
December 31, 2019	1,408	$	3.01	to	$	4.48	$	6,314	2.32	%	1.35	%	to	1.40	%	24.65	%	to	24.71	%
December 31, 2018	1,464	$	2.41	to	$	3.60	$	5,269	1.98	%	1.35	%	to	1.40	%	-10.76	%	to	-10.71	%
December 31, 2017	1,672	$	2.70	to	$	4.03	$	6,739	1.73	%	1.35	%	to	1.40	%	14.42	%	to	14.48	%
December 31, 2016	1,844	$	2.36	to	$	3.52	$	6,453	2.31	%	1.35	%	to	1.40	%	17.53	%	to	17.59	%
December 31, 2015	2,066	$	2.01	to	$	3.00	$	6,158	1.80	%	1.35	%	to	1.40	%	-8.14	%	to	-8.10	%
	Invesco V.I. Core Equity Fund (Series I)
December 31, 2019	2,127	$	1.80	to	$	3.49	$	7,417	0.94	%	1.40	%	to	1.65	%	26.87	%	to	27.18	%
December 31, 2018	2,291	$	1.42	to	$	2.75	$	6,284	0.88	%	1.40	%	to	1.65	%	-10.88	%	to	-10.66	%
December 31, 2017	2,559	$	1.59	to	$	3.08	$	7,854	1.03	%	1.40	%	to	1.65	%	11.34	%	to	11.62	%
December 31, 2016	2,877	$	1.43	to	$	2.76	$	7,913	0.75	%	1.40	%	to	1.65	%	8.48	%	to	8.75	%
December 31, 2015	3,193	$	1.32	to	$	2.53	$	8,076	1.12	%	1.40	%	to	1.65	%	-7.29	%	to	-7.07	%
	Janus Henderson VIT Research Portfolio (Institutional Shares)
December 31, 2019	1,322	$	2.12	to	$	4.25	$	5,598	0.46	%	1.35	%	to	1.40	%	33.65	%	to	33.72	%
December 31, 2018	1,399	$	1.50	to	$	3.18	$	4,434	0.53	%	1.35	%	to	1.65	%	-4.17	%	to	-3.88	%
December 31, 2017	1,625	$	1.57	to	$	3.31	$	5,355	0.39	%	1.35	%	to	1.65	%	25.81	%	to	26.18	%
December 31, 2016	1,822	$	1.24	to	$	2.62	$	4,762	0.54	%	1.35	%	to	1.65	%	-1.13	%	to	-0.84	%
December 31, 2015	1,976	$	1.26	to	$	2.65	$	5,209	0.62	%	1.35	%	to	1.65	%	3.63	%	to	3.94	%
	Janus Henderson VIT Overseas Portfolio (Institutional Shares)
December 31, 2019	1,227	$	2.05	to	$	3.78	$	4,591	1.90	%	1.35	%	to	1.65	%	24.96	%	to	25.33	%
December 31, 2018	1,335	$	1.64	to	$	3.02	$	3,990	1.74	%	1.35	%	to	1.65	%	-16.33	%	to	-16.09	%
December 31, 2017	1,421	$	1.96	to	$	3.60	$	5,067	1.65	%	1.35	%	to	1.65	%	29.00	%	to	29.38	%
December 31, 2016	1,645	$	1.52	to	$	2.78	$	4,518	5.06	%	1.35	%	to	1.65	%	-7.96	%	to	-7.70	%
December 31, 2015	1,734	$	1.65	to	$	3.01	$	5,143	0.59	%	1.35	%	to	1.65	%	-10.07	%	to	-9.81	%
	MFS® Research Series (Initial Class)
December 31, 2019	369	$	4.27	to	$	4.27	$	1,576	0.78	%	1.40	%	to	1.40	%	31.11	%	to	31.11	%
December 31, 2018	387	$	3.26	to	$	3.26	$	1,262	0.69	%	1.40	%	to	1.40	%	-5.70	%	to	-5.70	%
December 31, 2017	423	$	3.46	to	$	3.46	$	1,462	1.34	%	1.40	%	to	1.40	%	21.67	%	to	21.67	%
December 31, 2016	497	$	2.84	to	$	2.84	$	1,412	0.77	%	1.40	%	to	1.40	%	7.24	%	to	7.24	%
December 31, 2015	555	$	2.65	to	$	2.65	$	1,470	0.72	%	1.40	%	to	1.40	%	-0.59	%	to	-0.59	%
	MFS® Growth Series (Initial Class)
December 31, 2019	1,331	$	2.97	to	$	5.32	$	7,084	0.00	%	1.35	%	to	1.40	%	36.24	%	to	36.31	%
December 31, 2018	1,421	$	2.06	to	$	3.91	$	5,550	0.09	%	1.35	%	to	1.65	%	0.99	%	to	1.29	%
December 31, 2017	1,744	$	2.04	to	$	3.86	$	6,727	0.10	%	1.35	%	to	1.65	%	29.28	%	to	29.66	%
December 31, 2016	1,932	$	1.58	to	$	2.98	$	5,752	0.04	%	1.35	%	to	1.65	%	0.78	%	to	1.08	%
December 31, 2015	2,093	$	1.56	to	$	2.95	$	6,166	0.15	%	1.35	%	to	1.65	%	5.81	%	to	6.12	%
	American Century VP Value Fund (Class I)
December 31, 2019	430	$	3.77	to	$	4.40	$	1,890	2.11	%	1.35	%	to	1.40	%	25.28	%	to	25.34	%
December 31, 2018	478	$	2.85	to	$	3.51	$	1,677	1.65	%	1.35	%	to	1.65	%	-10.63	%	to	-10.37	%
December 31, 2017	525	$	3.19	to	$	3.92	$	2,055	1.63	%	1.35	%	to	1.65	%	6.98	%	to	7.30	%
December 31, 2016	639	$	2.98	to	$	3.65	$	2,317	1.73	%	1.35	%	to	1.65	%	18.53	%	to	18.88	%
December 31, 2015	702	$	2.51	to	$	3.07	$	2,144	2.11	%	1.35	%	to	1.65	%	-5.45	%	to	-5.16	%
	Franklin Small-Mid Cap Growth VIP Fund (Class 2)
December 31, 2019	541	$	2.27	to	$	4.00	$	2,145	0.00	%	1.35	%	to	1.65	%	29.30	%	to	29.68	%
December 31, 2018	610	$	1.75	to	$	3.09	$	1,868	0.00	%	1.35	%	to	1.65	%	-6.92	%	to	-6.64	%
December 31, 2017	910	$	1.88	to	$	3.31	$	2,990	0.00	%	1.35	%	to	1.65	%	19.43	%	to	19.79	%
December 31, 2016	976	$	1.58	to	$	2.76	$	2,682	0.00	%	1.35	%	to	1.65	%	2.49	%	to	2.79	%
December 31, 2015	1,038	$	1.54	to	$	2.69	$	2,775	0.00	%	1.35	%	to	1.65	%	-4.24	%	to	-3.95	%

A93

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*		Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	Prudential Jennison 20/20 Focus Portfolio (Class I)
December 31, 2019	821	$	3.63	to	$	3.94	$	3,231	0.00	%	1.35	%	to	1.65	%	26.83	%	to	27.21	%
December 31, 2018	945	$	2.87	to	$	3.09	$	2,921	0.00	%	1.35	%	to	1.65	%	-6.90	%	to	-6.62	%
December 31, 2017	1,058	$	3.08	to	$	3.32	$	3,500	0.00	%	1.35	%	to	1.65	%	28.18	%	to	28.56	%
December 31, 2016	1,190	$	2.40	to	$	2.58	$	3,064	0.00	%	1.35	%	to	1.65	%	-0.04	%	to	0.27	%
December 31, 2015	1,431	$	2.40	to	$	2.58	$	3,678	0.00	%	1.35	%	to	1.65	%	4.54	%	to	4.86	%
	Davis Value Portfolio
December 31, 2019	507	$	2.34	to	$	2.37	$	1,189	1.40	%	1.35	%	to	1.40	%	29.36	%	to	29.42	%
December 31, 2018	721	$	1.81	to	$	1.83	$	1,307	0.76	%	1.35	%	to	1.40	%	-14.80	%	to	-14.76	%
December 31, 2017	935	$	2.13	to	$	2.15	$	1,990	0.74	%	1.35	%	to	1.40	%	20.94	%	to	21.00	%
December 31, 2016	1,081	$	1.76	to	$	1.77	$	1,902	1.23	%	1.35	%	to	1.40	%	10.34	%	to	10.39	%
December 31, 2015	1,240	$	1.59	to	$	1.61	$	1,977	0.77	%	1.35	%	to	1.40	%	0.19	%	to	0.24	%
	AB VPS Large Cap Growth Portfolio (Class B)
December 31, 2019	224	$	1.98	to	$	1.98	$	443	0.00	%	1.40	%	to	1.40	%	32.51	%	to	32.51	%
December 31, 2018	254	$	1.49	to	$	1.49	$	379	0.00	%	1.40	%	to	1.40	%	0.90	%	to	0.90	%
December 31, 2017	563	$	1.48	to	$	1.48	$	833	0.00	%	1.40	%	to	1.40	%	29.86	%	to	29.86	%
December 31, 2016	683	$	1.14	to	$	1.14	$	779	0.00	%	1.40	%	to	1.40	%	0.95	%	to	0.95	%
December 31, 2015	692	$	1.13	to	$	1.13	$	782	0.00	%	1.40	%	to	1.40	%	9.32	%	to	9.32	%
	Prudential SP Small Cap Value Portfolio (Class I)
December 31, 2019	1,958	$	2.81	to	$	3.79	$	7,009	0.00	%	1.35	%	to	1.80	%	20.61	%	to	21.15	%
December 31, 2018	2,086	$	2.33	to	$	3.13	$	6,185	0.00	%	1.35	%	to	1.80	%	-15.33	%	to	-14.95	%
December 31, 2017	2,332	$	2.75	to	$	3.69	$	8,142	0.00	%	1.35	%	to	1.80	%	10.22	%	to	10.70	%
December 31, 2016	2,654	$	2.50	to	$	3.33	$	8,385	0.00	%	1.35	%	to	1.80	%	23.25	%	to	23.79	%
December 31, 2015	3,128	$	2.03	to	$	2.69	$	7,996	0.00	%	1.35	%	to	1.80	%	-7.04	%	to	-6.62	%
	Janus Henderson VIT Research Portfolio (Service Shares)
December 31, 2019	194	$	1.66	to	$	3.73	$	527	0.31	%	1.40	%	to	1.75	%	32.90	%	to	33.36	%
December 31, 2018	202	$	1.25	to	$	2.79	$	413	0.35	%	1.40	%	to	1.75	%	-4.52	%	to	-4.19	%
December 31, 2017	227	$	1.30	to	$	2.92	$	486	0.24	%	1.40	%	to	1.75	%	25.37	%	to	25.80	%
December 31, 2016	251	$	1.04	to	$	2.32	$	427	0.38	%	1.40	%	to	1.75	%	-1.45	%	to	-1.10	%
December 31, 2015	283	$	1.05	to	$	2.34	$	468	0.47	%	1.40	%	to	1.75	%	3.27	%	to	3.63	%
	SP Prudential U.S. Emerging Growth Portfolio (Class I)
December 31, 2019	1,596	$	2.60	to	$	5.80	$	6,881	0.00	%	1.35	%	to	1.80	%	35.27	%	to	35.88	%
December 31, 2018	1,768	$	1.92	to	$	4.27	$	5,686	0.00	%	1.35	%	to	1.80	%	-9.48	%	to	-9.08	%
December 31, 2017	2,026	$	2.12	to	$	4.70	$	7,242	0.00	%	1.35	%	to	1.80	%	20.27	%	to	20.81	%
December 31, 2016	2,245	$	1.76	to	$	3.89	$	6,710	0.00	%	1.35	%	to	1.80	%	2.48	%	to	2.93	%
December 31, 2015	2,621	$	1.71	to	$	3.78	$	7,527	0.00	%	1.35	%	to	1.80	%	-4.09	%	to	-3.66	%
	Prudential SP International Growth Portfolio (Class I)
December 31, 2019	826	$	1.21	to	$	3.01	$	1,845	0.00	%	1.35	%	to	1.80	%	30.04	%	to	30.62	%
December 31, 2018	965	$	0.93	to	$	2.30	$	1,629	0.00	%	1.35	%	to	1.80	%	-14.37	%	to	-13.98	%
December 31, 2017	1,093	$	1.08	to	$	2.68	$	2,110	0.00	%	1.35	%	to	1.80	%	33.42	%	to	34.00	%
December 31, 2016	1,283	$	0.81	to	$	2.00	$	1,815	0.00	%	1.35	%	to	1.80	%	-5.28	%	to	-4.86	%
December 31, 2015	1,379	$	0.85	to	$	2.10	$	2,065	0.00	%	1.35	%	to	1.80	%	1.54	%	to	1.98	%
	AST Goldman Sachs Large-Cap Value Portfolio (Merged April 26, 2019)
December 31, 2019	—	$	12.72	to	$	24.15	$	—	0.00	%	0.55	%	to	2.85	%	13.85	%	to	14.70	%
December 31, 2018	3,117	$	11.10	to	$	21.15	$	50,930	0.00	%	0.55	%	to	2.85	%	-11.15	%	to	-9.03	%
December 31, 2017	3,729	$	12.25	to	$	23.57	$	67,828	0.00	%	0.55	%	to	2.85	%	6.63	%	to	9.14	%
December 31, 2016	2,985	$	11.25	to	$	21.90	$	50,303	0.00	%	0.55	%	to	2.85	%	8.37	%	to	10.93	%
December 31, 2015	3,144	$	10.18	to	$	20.01	$	48,225	0.00	%	0.55	%	to	2.85	%	-7.34	%	to	6.09	%
	AST Cohen & Steers Realty Portfolio
December 31, 2019	1,279	$	10.22	to	$	37.33	$	30,263	0.00	%	0.35	%	to	2.85	%	1.14	%	to	30.49	%
December 31, 2018	1,360	$	10.86	to	$	29.01	$	25,132	0.00	%	0.55	%	to	2.85	%	-7.48	%	to	-5.28	%
December 31, 2017	1,478	$	11.50	to	$	31.05	$	29,303	0.00	%	0.55	%	to	2.85	%	3.23	%	to	5.66	%
December 31, 2016	1,423	$	10.92	to	$	29.79	$	27,148	0.00	%	0.55	%	to	2.85	%	1.84	%	to	4.24	%
December 31, 2015	1,351	$	10.51	to	$	28.98	$	25,076	0.00	%	0.55	%	to	2.85	%	1.86	%	to	10.36	%

A94

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*		Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	AST J.P. Morgan Strategic Opportunities Portfolio
December 31, 2019	11,394	$	13.14	to	$	17.59	$	167,939	0.00	%	0.55	%	to	2.85	%	11.34	%	to	13.98	%
December 31, 2018	11,259	$	11.64	to	$	15.56	$	147,331	0.00	%	0.55	%	to	2.85	%	-7.84	%	to	-5.65	%
December 31, 2017	12,622	$	12.45	to	$	16.63	$	177,660	0.00	%	0.55	%	to	2.85	%	8.95	%	to	11.53	%
December 31, 2016	13,084	$	11.26	to	$	15.04	$	167,396	0.00	%	0.55	%	to	2.85	%	0.89	%	to	3.27	%
December 31, 2015	13,597	$	11.01	to	$	14.68	$	170,786	0.00	%	0.55	%	to	2.85	%	-3.03	%	to	-0.73	%
	AST T. Rowe Price Large-Cap Value Portfolio
December 31, 2019	4,342	$	10.60	to	$	24.14	$	77,915	0.00	%	0.48	%	to	2.85	%	6.16	%	to	25.28	%
December 31, 2018	962	$	10.15	to	$	19.53	$	13,956	0.00	%	0.55	%	to	2.70	%	-12.16	%	to	-10.21	%
December 31, 2017	853	$	11.32	to	$	22.06	$	14,172	0.00	%	0.55	%	to	2.70	%	13.41	%	to	15.91	%
December 31, 2016	817	$	9.78	to	$	19.29	$	11,983	0.00	%	0.55	%	to	2.70	%	3.27	%	to	5.55	%
December 31, 2015	871	$	9.28	to	$	18.53	$	12,193	0.00	%	0.55	%	to	2.70	%	-8.60	%	to	-6.58	%
	AST High Yield Portfolio
December 31, 2019	2,022	$	10.24	to	$	20.46	$	32,616	0.00	%	0.35	%	to	2.85	%	2.23	%	to	14.66	%
December 31, 2018	1,997	$	11.29	to	$	18.09	$	28,532	0.00	%	0.55	%	to	2.85	%	-4.79	%	to	-2.53	%
December 31, 2017	2,026	$	11.59	to	$	18.82	$	29,968	0.00	%	0.55	%	to	2.85	%	4.42	%	to	6.88	%
December 31, 2016	1,860	$	10.86	to	$	17.85	$	26,105	0.00	%	0.55	%	to	2.85	%	12.12	%	to	14.76	%
December 31, 2015	1,944	$	9.48	to	$	15.77	$	24,161	0.00	%	0.55	%	to	2.85	%	-6.31	%	to	-3.24	%
	AST Small-Cap Growth Opportunities Portfolio
December 31, 2019	822	$	10.90	to	$	37.13	$	20,944	0.00	%	0.48	%	to	2.70	%	8.73	%	to	35.73	%
December 31, 2018	772	$	10.82	to	$	27.73	$	14,871	0.00	%	0.55	%	to	2.70	%	-13.27	%	to	-11.34	%
December 31, 2017	865	$	12.22	to	$	31.72	$	19,309	0.00	%	0.55	%	to	2.70	%	24.25	%	to	26.99	%
December 31, 2016	865	$	9.64	to	$	25.32	$	15,464	0.00	%	0.55	%	to	2.70	%	4.80	%	to	7.11	%
December 31, 2015	957	$	9.67	to	$	23.97	$	16,131	0.00	%	0.55	%	to	2.85	%	-1.55	%	to	1.00	%
	AST WEDGE Capital Mid-Cap Value Portfolio
December 31, 2019	448	$	10.22	to	$	29.48	$	9,383	0.00	%	0.35	%	to	2.70	%	1.67	%	to	18.49	%
December 31, 2018	437	$	10.58	to	$	25.23	$	7,800	0.00	%	0.55	%	to	2.70	%	-18.79	%	to	-16.99	%
December 31, 2017	496	$	12.78	to	$	30.81	$	10,792	0.00	%	0.55	%	to	2.70	%	15.34	%	to	17.88	%
December 31, 2016	540	$	10.88	to	$	26.50	$	10,080	0.00	%	0.55	%	to	2.70	%	10.93	%	to	13.37	%
December 31, 2015	588	$	9.63	to	$	23.70	$	9,799	0.00	%	0.55	%	to	2.85	%	-9.27	%	to	0.53	%
	AST Small-Cap Value Portfolio
December 31, 2019	734	$	10.61	to	$	29.03	$	15,038	0.00	%	0.48	%	to	2.85	%	5.76	%	to	21.31	%
December 31, 2018	708	$	11.20	to	$	24.26	$	12,086	0.00	%	0.55	%	to	2.85	%	-19.45	%	to	-17.53	%
December 31, 2017	805	$	13.62	to	$	29.83	$	16,837	0.00	%	0.55	%	to	2.85	%	4.30	%	to	6.76	%
December 31, 2016	774	$	12.80	to	$	28.33	$	15,415	0.00	%	0.55	%	to	2.85	%	25.53	%	to	28.49	%
December 31, 2015	731	$	9.99	to	$	22.35	$	11,604	0.00	%	0.55	%	to	2.85	%	-7.04	%	to	4.08	%
	AST Mid-Cap Growth Portfolio
December 31, 2019	2,651	$	10.39	to	$	34.61	$	66,740	0.00	%	0.35	%	to	2.85	%	3.60	%	to	29.44	%
December 31, 2018	2,750	$	11.84	to	$	27.11	$	54,321	0.00	%	0.55	%	to	2.85	%	-7.09	%	to	-4.88	%
December 31, 2017	3,009	$	12.49	to	$	28.89	$	63,557	0.00	%	0.55	%	to	2.85	%	23.48	%	to	26.39	%
December 31, 2016	3,115	$	9.91	to	$	23.18	$	52,769	0.00	%	0.55	%	to	2.85	%	-1.25	%	to	1.09	%
December 31, 2015	3,314	$	9.83	to	$	23.25	$	56,160	0.00	%	0.55	%	to	2.85	%	-8.37	%	to	2.12	%
	AST Hotchkis & Wiley Large-Cap Value Portfolio
December 31, 2019	1,732	$	10.67	to	$	31.02	$	38,666	0.00	%	0.35	%	to	2.85	%	6.16	%	to	28.81	%
December 31, 2018	1,743	$	11.60	to	$	24.42	$	30,541	0.00	%	0.55	%	to	2.85	%	-16.61	%	to	-14.63	%
December 31, 2017	1,683	$	13.63	to	$	29.00	$	34,897	0.00	%	0.55	%	to	2.45	%	16.28	%	to	18.54	%
December 31, 2016	1,645	$	11.53	to	$	24.81	$	29,101	0.00	%	0.55	%	to	2.45	%	16.96	%	to	19.23	%
December 31, 2015	1,715	$	9.70	to	$	21.09	$	25,607	0.00	%	0.55	%	to	2.85	%	-10.46	%	to	1.55	%
	AST Loomis Sayles Large-Cap Growth Portfolio
December 31, 2019	1,897	$	10.76	to	$	41.81	$	58,793	0.00	%	0.48	%	to	2.85	%	8.21	%	to	30.91	%
December 31, 2018	1,915	$	14.30	to	$	32.38	$	46,002	0.00	%	0.55	%	to	2.85	%	-5.48	%	to	-3.23	%
December 31, 2017	2,374	$	14.82	to	$	33.93	$	59,639	0.00	%	0.55	%	to	2.85	%	29.21	%	to	32.26	%
December 31, 2016	2,615	$	11.24	to	$	26.01	$	50,429	0.00	%	0.55	%	to	2.85	%	2.57	%	to	5.00	%
December 31, 2015	2,625	$	10.74	to	$	25.11	$	48,900	0.00	%	0.55	%	to	2.85	%	6.94	%	to	11.97	%

A95

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*		Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	AST MFS Growth Portfolio
December 31, 2019	809	$	10.72	to	$	39.33	$	24,748	0.00	%	0.35	%	to	2.45	%	7.58	%	to	37.02	%
December 31, 2018	763	$	13.95	to	$	29.10	$	17,359	0.00	%	0.55	%	to	2.70	%	-0.62	%	to	1.59	%
December 31, 2017	764	$	13.78	to	$	29.05	$	17,631	0.00	%	0.55	%	to	2.70	%	27.19	%	to	29.99	%
December 31, 2016	776	$	10.63	to	$	22.66	$	13,999	0.00	%	0.55	%	to	2.70	%	-0.83	%	to	1.35	%
December 31, 2015	737	$	10.53	to	$	22.66	$	13,390	0.00	%	0.55	%	to	2.85	%	4.17	%	to	9.59	%
	AST Neuberger Berman/LSV Mid-Cap Value Portfolio
December 31, 2019	1,556	$	10.44	to	$	33.24	$	33,972	0.00	%	0.48	%	to	2.85	%	4.52	%	to	20.35	%
December 31, 2018	1,470	$	10.61	to	$	28.00	$	27,101	0.00	%	0.55	%	to	2.85	%	-18.84	%	to	-16.90	%
December 31, 2017	1,638	$	12.81	to	$	34.17	$	36,903	0.00	%	0.55	%	to	2.85	%	10.56	%	to	13.16	%
December 31, 2016	1,524	$	11.35	to	$	30.61	$	31,209	0.00	%	0.55	%	to	2.85	%	14.87	%	to	17.58	%
December 31, 2015	1,466	$	9.69	to	$	26.40	$	25,865	0.00	%	0.55	%	to	2.85	%	-8.33	%	to	1.07	%
	AST BlackRock Low Duration Bond Portfolio
December 31, 2019	2,326	$	9.39	to	$	12.46	$	24,434	0.00	%	0.48	%	to	2.25	%	0.70	%	to	4.05	%
December 31, 2018	2,033	$	9.14	to	$	12.05	$	20,603	0.00	%	0.55	%	to	2.30	%	-1.58	%	to	0.19	%
December 31, 2017	2,081	$	9.17	to	$	12.10	$	21,184	0.00	%	0.55	%	to	2.45	%	-0.78	%	to	1.15	%
December 31, 2016	1,750	$	9.25	to	$	12.03	$	17,746	0.00	%	0.55	%	to	2.45	%	-0.85	%	to	1.08	%
December 31, 2015	1,644	$	9.32	to	$	11.97	$	16,588	0.00	%	0.55	%	to	2.45	%	-1.98	%	to	-0.07	%
	AST QMA US Equity Alpha Portfolio
December 31, 2019	1,169	$	10.81	to	$	38.35	$	33,140	0.00	%	0.48	%	to	2.70	%	8.35	%	to	23.78	%
December 31, 2018	1,138	$	13.04	to	$	31.42	$	26,070	0.00	%	0.55	%	to	2.70	%	-10.71	%	to	-8.72	%
December 31, 2017	1,143	$	14.33	to	$	34.90	$	28,835	0.00	%	0.55	%	to	2.45	%	19.26	%	to	21.58	%
December 31, 2016	1,042	$	11.82	to	$	29.10	$	22,155	0.00	%	0.55	%	to	2.45	%	12.04	%	to	14.21	%
December 31, 2015	945	$	10.39	to	$	25.83	$	17,758	0.00	%	0.55	%	to	2.45	%	0.55	%	to	8.03	%
	AST T. Rowe Price Natural Resources Portfolio
December 31, 2019	2,634	$	8.49	to	$	14.29	$	27,208	0.00	%	0.48	%	to	2.70	%	4.54	%	to	16.22	%
December 31, 2018	2,264	$	7.33	to	$	12.40	$	20,246	0.00	%	0.55	%	to	2.70	%	-18.92	%	to	-17.11	%
December 31, 2017	2,762	$	8.87	to	$	15.09	$	30,002	0.00	%	0.55	%	to	2.70	%	7.34	%	to	9.70	%
December 31, 2016	2,692	$	8.11	to	$	13.87	$	26,931	0.00	%	0.55	%	to	2.70	%	21.26	%	to	23.93	%
December 31, 2015	2,763	$	6.56	to	$	11.28	$	22,535	0.00	%	0.55	%	to	2.70	%	-21.43	%	to	0.94	%
	AST T. Rowe Price Asset Allocation Portfolio
December 31, 2019	66,787	$	15.39	to	$	22.74	$	1,195,684	0.00	%	0.55	%	to	2.85	%	17.40	%	to	20.18	%
December 31, 2018	68,596	$	12.92	to	$	19.18	$	1,037,327	0.00	%	0.55	%	to	2.85	%	-8.04	%	to	-5.85	%
December 31, 2017	73,973	$	13.85	to	$	20.66	$	1,206,523	0.00	%	0.55	%	to	2.85	%	12.13	%	to	14.77	%
December 31, 2016	75,755	$	12.18	to	$	18.25	$	1,092,303	0.00	%	0.55	%	to	2.85	%	4.49	%	to	6.95	%
December 31, 2015	75,978	$	11.49	to	$	17.30	$	1,040,968	0.00	%	0.55	%	to	2.85	%	-2.81	%	to	-0.51	%
	AST MFS Global Equity Portfolio
December 31, 2019	1,615	$	10.53	to	$	29.94	$	36,538	0.00	%	0.35	%	to	2.85	%	6.47	%	to	29.24	%
December 31, 2018	1,710	$	11.72	to	$	23.49	$	30,215	0.00	%	0.55	%	to	2.85	%	-12.15	%	to	-10.05	%
December 31, 2017	1,835	$	13.07	to	$	26.48	$	36,466	0.00	%	0.55	%	to	2.85	%	20.32	%	to	23.16	%
December 31, 2016	1,738	$	10.65	to	$	21.80	$	28,494	0.00	%	0.55	%	to	2.85	%	4.07	%	to	6.52	%
December 31, 2015	1,697	$	10.03	to	$	20.75	$	26,340	0.00	%	0.55	%	to	2.85	%	-4.27	%	to	3.91	%
	AST J.P. Morgan International Equity Portfolio
December 31, 2019	1,837	$	12.64	to	$	19.39	$	26,684	0.00	%	0.55	%	to	2.70	%	23.79	%	to	26.52	%
December 31, 2018	1,838	$	10.11	to	$	15.54	$	21,142	0.00	%	0.55	%	to	2.70	%	-19.71	%	to	-17.92	%
December 31, 2017	1,959	$	12.48	to	$	19.20	$	27,796	0.00	%	0.55	%	to	2.70	%	26.14	%	to	28.92	%
December 31, 2016	1,912	$	9.80	to	$	15.10	$	21,272	0.00	%	0.55	%	to	2.70	%	-0.81	%	to	1.37	%
December 31, 2015	1,946	$	9.78	to	$	15.10	$	21,587	0.00	%	0.55	%	to	2.70	%	-5.42	%	to	-3.33	%
	AST Templeton Global Bond Portfolio
December 31, 2019	1,541	$	8.81	to	$	12.61	$	15,926	0.00	%	0.48	%	to	2.85	%	-1.29	%	to	1.05	%
December 31, 2018	1,384	$	8.92	to	$	12.55	$	14,210	0.00	%	0.55	%	to	2.85	%	-0.92	%	to	1.44	%
December 31, 2017	1,577	$	9.01	to	$	12.45	$	16,051	0.00	%	0.55	%	to	2.85	%	-0.86	%	to	1.48	%
December 31, 2016	1,412	$	9.08	to	$	12.34	$	14,302	0.00	%	0.55	%	to	2.85	%	1.39	%	to	3.78	%
December 31, 2015	1,447	$	8.96	to	$	11.96	$	14,209	0.00	%	0.55	%	to	2.85	%	-7.34	%	to	3.76	%

A96

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*		Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	AST Wellington Management Hedged Equity Portfolio
December 31, 2019	10,000	$	13.52	to	$	22.66	$	151,270	0.00	%	0.55	%	to	2.85	%	17.12	%	to	19.89	%
December 31, 2018	9,607	$	11.54	to	$	19.16	$	122,382	0.00	%	0.55	%	to	2.85	%	-7.72	%	to	-5.52	%
December 31, 2017	10,483	$	12.51	to	$	20.56	$	142,719	0.00	%	0.55	%	to	2.85	%	10.37	%	to	12.97	%
December 31, 2016	10,414	$	11.33	to	$	18.45	$	126,793	0.00	%	0.55	%	to	2.85	%	3.50	%	to	5.94	%
December 31, 2015	10,527	$	10.95	to	$	17.66	$	122,261	0.00	%	0.55	%	to	2.85	%	-3.46	%	to	-1.18	%
	AST Capital Growth Asset Allocation Portfolio
December 31, 2019	41,084	$	16.53	to	$	24.35	$	763,571	0.00	%	0.55	%	to	2.85	%	18.76	%	to	21.58	%
December 31, 2018	40,025	$	13.72	to	$	20.31	$	621,582	0.00	%	0.55	%	to	2.85	%	-8.91	%	to	-6.74	%
December 31, 2017	42,944	$	14.85	to	$	22.08	$	726,878	0.00	%	0.55	%	to	2.85	%	14.54	%	to	17.24	%
December 31, 2016	41,918	$	12.78	to	$	19.09	$	614,943	0.00	%	0.55	%	to	2.85	%	3.80	%	to	6.25	%
December 31, 2015	41,418	$	12.14	to	$	18.22	$	581,755	0.00	%	0.55	%	to	2.85	%	-2.33	%	to	-0.02	%
	AST Academic Strategies Asset Allocation Portfolio
December 31, 2019	19,467	$	12.46	to	$	17.44	$	271,525	0.00	%	0.55	%	to	2.85	%	12.75	%	to	15.42	%
December 31, 2018	18,241	$	10.90	to	$	15.32	$	222,318	0.00	%	0.55	%	to	2.85	%	-10.77	%	to	-8.64	%
December 31, 2017	23,441	$	12.04	to	$	17.01	$	317,415	0.00	%	0.55	%	to	2.85	%	9.39	%	to	11.97	%
December 31, 2016	24,273	$	10.85	to	$	15.40	$	297,040	0.00	%	0.55	%	to	2.85	%	3.31	%	to	5.75	%
December 31, 2015	26,419	$	10.35	to	$	14.76	$	309,924	0.00	%	0.55	%	to	2.85	%	-5.98	%	to	-3.75	%
	AST Balanced Asset Allocation Portfolio
December 31, 2019	43,887	$	11.03	to	$	21.65	$	762,061	0.00	%	0.35	%	to	2.85	%	10.20	%	to	18.76	%
December 31, 2018	44,995	$	12.98	to	$	18.48	$	667,892	0.00	%	0.55	%	to	2.85	%	-7.66	%	to	-5.46	%
December 31, 2017	48,857	$	13.86	to	$	19.82	$	778,162	0.00	%	0.55	%	to	2.85	%	11.64	%	to	14.28	%
December 31, 2016	50,063	$	12.23	to	$	17.59	$	708,457	0.00	%	0.55	%	to	2.85	%	3.28	%	to	5.71	%
December 31, 2015	51,044	$	11.68	to	$	16.87	$	693,958	0.00	%	0.55	%	to	2.85	%	-2.39	%	to	-0.08	%
	AST Preservation Asset Allocation Portfolio
December 31, 2019	31,603	$	13.31	to	$	17.70	$	475,783	0.00	%	0.55	%	to	2.85	%	11.47	%	to	14.11	%
December 31, 2018	32,524	$	11.77	to	$	15.72	$	433,759	0.00	%	0.55	%	to	2.85	%	-5.62	%	to	-3.38	%
December 31, 2017	36,076	$	12.29	to	$	16.50	$	505,272	0.00	%	0.55	%	to	2.85	%	7.00	%	to	9.53	%
December 31, 2016	35,110	$	11.32	to	$	15.27	$	457,043	0.00	%	0.55	%	to	2.85	%	2.53	%	to	4.95	%
December 31, 2015	36,445	$	10.89	to	$	14.76	$	458,433	0.00	%	0.55	%	to	2.85	%	-2.71	%	to	-0.41	%
	AST Fidelity Institutional AM℠ Quantitative Portfolio
December 31, 2019	25,119	$	13.63	to	$	20.32	$	394,718	0.00	%	0.85	%	to	2.85	%	16.58	%	to	18.98	%
December 31, 2018	25,093	$	11.63	to	$	17.27	$	335,136	0.00	%	0.55	%	to	2.85	%	-10.39	%	to	-8.25	%
December 31, 2017	27,846	$	12.92	to	$	19.08	$	410,656	0.00	%	0.55	%	to	2.85	%	13.16	%	to	15.83	%
December 31, 2016	28,026	$	11.35	to	$	16.70	$	362,213	0.00	%	0.55	%	to	2.85	%	1.29	%	to	3.68	%
December 31, 2015	27,216	$	10.85	to	$	16.33	$	345,930	0.00	%	0.55	%	to	2.85	%	-1.89	%	to	0.44	%
	AST Prudential Growth Allocation Portfolio
December 31, 2019	65,525	$	14.36	to	$	22.61	$	1,168,279	0.00	%	0.55	%	to	2.85	%	15.78	%	to	18.52	%
December 31, 2018	64,493	$	12.34	to	$	19.34	$	981,859	0.00	%	0.55	%	to	2.85	%	-10.24	%	to	-8.11	%
December 31, 2017	74,417	$	13.67	to	$	21.34	$	1,248,726	0.00	%	0.55	%	to	2.85	%	12.80	%	to	15.46	%
December 31, 2016	44,092	$	12.06	to	$	18.74	$	649,227	0.00	%	0.55	%	to	2.85	%	6.96	%	to	9.49	%
December 31, 2015	44,717	$	10.78	to	$	17.35	$	610,546	0.00	%	0.55	%	to	2.85	%	-3.45	%	to	-1.16	%
	AST Advanced Strategies Portfolio
December 31, 2019	36,240	$	15.66	to	$	23.73	$	658,749	0.00	%	0.55	%	to	2.85	%	18.39	%	to	21.19	%
December 31, 2018	37,243	$	13.04	to	$	19.85	$	567,375	0.00	%	0.55	%	to	2.85	%	-8.58	%	to	-6.41	%
December 31, 2017	41,197	$	14.06	to	$	21.51	$	680,482	0.00	%	0.55	%	to	2.85	%	13.60	%	to	16.28	%
December 31, 2016	42,484	$	12.20	to	$	18.75	$	612,274	0.00	%	0.55	%	to	2.85	%	4.06	%	to	6.52	%
December 31, 2015	43,453	$	11.56	to	$	17.85	$	596,745	0.00	%	0.55	%	to	2.85	%	-2.07	%	to	0.25	%
	AST T. Rowe Price Large-Cap Growth Portfolio
December 31, 2019	3,187	$	10.74	to	$	46.89	$	106,330	0.00	%	0.35	%	to	2.85	%	7.75	%	to	27.52	%
December 31, 2018	3,097	$	15.05	to	$	37.28	$	84,917	0.00	%	0.55	%	to	2.85	%	0.89	%	to	3.29	%
December 31, 2017	3,188	$	14.62	to	$	36.60	$	86,682	0.00	%	0.55	%	to	2.85	%	33.97	%	to	37.13	%
December 31, 2016	3,130	$	10.69	to	$	27.06	$	63,382	0.00	%	0.55	%	to	2.85	%	-0.22	%	to	2.13	%
December 31, 2015	3,269	$	10.50	to	$	26.86	$	65,667	0.00	%	0.55	%	to	2.85	%	6.46	%	to	9.50	%

A97

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*		Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	AST Government Money Market Portfolio
December 31, 2019	2,484	$	8.11	to	$	10.02	$	23,074	1.68	%	0.48	%	to	2.45	%	-0.80	%	to	1.13	%
December 31, 2018	2,871	$	8.17	to	$	9.92	$	26,432	1.32	%	0.55	%	to	2.45	%	-1.20	%	to	0.74	%
December 31, 2017	1,958	$	8.08	to	$	9.86	$	17,759	0.34	%	0.55	%	to	2.55	%	-2.15	%	to	-0.21	%
December 31, 2016	2,162	$	8.25	to	$	9.90	$	19,816	0.00	%	0.55	%	to	2.55	%	-2.48	%	to	-0.56	%
December 31, 2015	1,773	$	8.46	to	$	9.97	$	16,358	0.00	%	0.55	%	to	2.85	%	-2.85	%	to	-0.26	%
	AST Small-Cap Growth Portfolio
December 31, 2019	1,038	$	10.38	to	$	38.45	$	27,923	0.00	%	0.35	%	to	2.85	%	3.62	%	to	29.40	%
December 31, 2018	1,038	$	11.94	to	$	30.13	$	22,087	0.00	%	0.55	%	to	2.85	%	-11.03	%	to	-8.91	%
December 31, 2017	1,070	$	13.15	to	$	33.54	$	25,377	0.00	%	0.55	%	to	2.85	%	20.39	%	to	23.24	%
December 31, 2016	1,134	$	10.70	to	$	27.59	$	22,257	0.00	%	0.55	%	to	2.85	%	8.89	%	to	11.46	%
December 31, 2015	1,209	$	9.64	to	$	25.10	$	21,630	0.00	%	0.55	%	to	2.85	%	-2.09	%	to	0.23	%
	AST BlackRock/Loomis Sayles Bond Portfolio
December 31, 2019	15,500	$	10.13	to	$	15.79	$	191,075	0.00	%	0.35	%	to	2.85	%	0.97	%	to	8.62	%
December 31, 2018	15,039	$	9.94	to	$	14.62	$	171,480	0.00	%	0.55	%	to	2.85	%	-3.51	%	to	-1.21	%
December 31, 2017	17,408	$	10.15	to	$	14.89	$	203,122	0.00	%	0.55	%	to	2.85	%	1.40	%	to	3.79	%
December 31, 2016	16,578	$	9.87	to	$	14.43	$	188,386	0.00	%	0.55	%	to	2.85	%	1.26	%	to	3.66	%
December 31, 2015	17,618	$	9.61	to	$	14.00	$	195,239	0.00	%	0.55	%	to	2.85	%	-4.90	%	to	-1.67	%
	AST International Value Portfolio
December 31, 2019	1,154	$	10.53	to	$	17.12	$	14,999	0.00	%	0.48	%	to	2.70	%	7.85	%	to	19.36	%
December 31, 2018	1,024	$	8.93	to	$	14.54	$	11,239	0.00	%	0.55	%	to	2.70	%	-18.41	%	to	-16.60	%
December 31, 2017	1,067	$	10.84	to	$	17.68	$	14,123	0.00	%	0.55	%	to	2.70	%	19.51	%	to	22.14	%
December 31, 2016	1,019	$	8.98	to	$	14.68	$	11,047	0.00	%	0.55	%	to	2.70	%	-2.13	%	to	0.03	%
December 31, 2015	978	$	9.08	to	$	14.88	$	10,620	0.00	%	0.55	%	to	2.70	%	-9.67	%	to	2.47	%
	AST International Growth Portfolio
December 31, 2019	1,444	$	10.89	to	$	22.75	$	24,732	0.00	%	0.48	%	to	2.55	%	10.22	%	to	31.38	%
December 31, 2018	1,476	$	10.39	to	$	17.56	$	19,291	0.00	%	0.55	%	to	2.55	%	-15.50	%	to	-13.81	%
December 31, 2017	1,388	$	12.16	to	$	20.65	$	21,230	0.00	%	0.55	%	to	2.55	%	32.07	%	to	34.68	%
December 31, 2016	1,400	$	9.09	to	$	15.55	$	15,906	0.00	%	0.55	%	to	2.55	%	-6.17	%	to	-4.31	%
December 31, 2015	1,421	$	9.57	to	$	16.47	$	16,885	0.00	%	0.55	%	to	2.85	%	0.21	%	to	7.39	%
	AST Investment Grade Bond Portfolio
December 31, 2019	7,404	$	11.08	to	$	18.19	$	109,751	0.00	%	0.55	%	to	2.25	%	8.73	%	to	10.62	%
December 31, 2018	50,427	$	10.16	to	$	16.54	$	611,859	0.00	%	0.55	%	to	2.25	%	-2.52	%	to	-0.82	%
December 31, 2017	6,925	$	10.39	to	$	16.78	$	94,733	0.00	%	0.85	%	to	2.25	%	1.97	%	to	3.43	%
December 31, 2016	18,562	$	10.16	to	$	16.27	$	239,554	0.00	%	0.55	%	to	2.25	%	1.87	%	to	3.63	%
December 31, 2015	17,268	$	9.94	to	$	15.79	$	219,367	0.00	%	0.85	%	to	2.25	%	-1.10	%	to	0.31	%
	AST Western Asset Core Plus Bond Portfolio
December 31, 2019	9,418	$	10.29	to	$	15.16	$	128,739	0.00	%	0.35	%	to	2.85	%	2.43	%	to	11.68	%
December 31, 2018	9,301	$	10.58	to	$	13.64	$	114,486	0.00	%	0.55	%	to	2.85	%	-5.07	%	to	-2.80	%
December 31, 2017	5,999	$	10.92	to	$	14.09	$	76,488	0.00	%	0.55	%	to	2.85	%	3.29	%	to	5.72	%
December 31, 2016	5,382	$	10.37	to	$	13.39	$	65,782	0.00	%	0.55	%	to	2.85	%	2.16	%	to	4.57	%
December 31, 2015	5,181	$	9.94	to	$	12.86	$	61,122	0.00	%	0.55	%	to	2.85	%	-1.65	%	to	0.68	%
	AST Bond Portfolio 2019 (Liquidated December 31, 2019)
December 31, 2019	—	$	10.44	to	$	11.49	$	—	0.00	%	1.90	%	to	2.85	%	-1.49	%	to	-0.53	%
December 31, 2018	1,338	$	10.60	to	$	11.55	$	14,971	0.00	%	1.90	%	to	2.85	%	-2.31	%	to	-1.36	%
December 31, 2017	76	$	10.98	to	$	11.71	$	869	0.00	%	1.90	%	to	2.70	%	-1.95	%	to	-1.15	%
December 31, 2016	104	$	11.20	to	$	11.84	$	1,210	0.00	%	1.90	%	to	2.70	%	-1.29	%	to	-0.48	%
December 31, 2015	111	$	11.24	to	$	13.16	$	1,305	0.00	%	1.90	%	to	2.85	%	-1.81	%	to	-0.85	%
	AST Cohen & Steers Global Realty Portfolio
December 31, 2019	490	$	10.41	to	$	26.37	$	8,790	0.00	%	0.48	%	to	2.85	%	3.77	%	to	24.44	%
December 31, 2018	476	$	10.44	to	$	21.49	$	6,999	0.00	%	0.55	%	to	2.85	%	-7.44	%	to	-5.24	%
December 31, 2017	563	$	11.05	to	$	22.99	$	8,894	0.00	%	0.55	%	to	2.85	%	7.73	%	to	10.28	%
December 31, 2016	557	$	10.05	to	$	21.14	$	8,056	0.00	%	0.55	%	to	2.85	%	-1.97	%	to	0.34	%
December 31, 2015	571	$	10.05	to	$	21.36	$	8,312	0.00	%	0.55	%	to	2.85	%	-2.94	%	to	5.49	%

A98

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*		Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	AST Parametric Emerging Markets Equity Portfolio
December 31, 2019	2,446	$	9.24	to	$	15.45	$	25,714	0.00	%	0.48	%	to	2.85	%	5.94	%	to	12.72	%
December 31, 2018	2,114	$	8.22	to	$	13.89	$	19,786	0.00	%	0.55	%	to	2.85	%	-16.51	%	to	-14.52	%
December 31, 2017	2,536	$	9.64	to	$	16.48	$	28,053	0.00	%	0.55	%	to	2.85	%	22.79	%	to	25.68	%
December 31, 2016	2,293	$	7.70	to	$	13.30	$	20,397	0.00	%	0.55	%	to	2.85	%	9.17	%	to	11.74	%
December 31, 2015	2,518	$	6.91	to	$	12.06	$	20,210	0.00	%	0.55	%	to	2.85	%	-19.10	%	to	0.59	%
	AST Goldman Sachs Small-Cap Value Portfolio
December 31, 2019	1,475	$	10.47	to	$	32.33	$	34,289	0.00	%	0.48	%	to	2.70	%	4.13	%	to	21.96	%
December 31, 2018	1,371	$	11.49	to	$	26.88	$	26,493	0.00	%	0.55	%	to	2.70	%	-16.40	%	to	-14.54	%
December 31, 2017	1,537	$	13.48	to	$	31.89	$	35,213	0.00	%	0.55	%	to	2.70	%	9.17	%	to	11.57	%
December 31, 2016	1,476	$	12.12	to	$	28.98	$	30,919	0.00	%	0.55	%	to	2.70	%	20.96	%	to	23.63	%
December 31, 2015	1,530	$	9.84	to	$	23.77	$	26,257	0.00	%	0.55	%	to	2.85	%	-8.19	%	to	2.45	%
	AST AllianzGI World Trends Portfolio
December 31, 2019	26,975	$	13.17	to	$	18.66	$	406,370	0.00	%	0.55	%	to	2.85	%	14.68	%	to	17.40	%
December 31, 2018	27,004	$	11.42	to	$	16.12	$	350,824	0.00	%	0.55	%	to	2.85	%	-10.54	%	to	-8.41	%
December 31, 2017	30,616	$	12.70	to	$	17.84	$	439,420	0.00	%	0.55	%	to	2.85	%	12.93	%	to	15.59	%
December 31, 2016	31,176	$	11.19	to	$	15.65	$	391,848	0.00	%	0.55	%	to	2.85	%	1.84	%	to	4.24	%
December 31, 2015	31,704	$	10.93	to	$	15.22	$	387,734	0.00	%	0.55	%	to	2.85	%	-3.01	%	to	-0.72	%
	AST J.P. Morgan Global Thematic Portfolio
December 31, 2019	14,054	$	14.68	to	$	21.65	$	231,136	0.00	%	0.55	%	to	2.85	%	16.03	%	to	18.77	%
December 31, 2018	13,554	$	12.47	to	$	18.48	$	190,855	0.00	%	0.55	%	to	2.85	%	-10.03	%	to	-7.88	%
December 31, 2017	14,487	$	13.66	to	$	20.34	$	224,714	0.00	%	0.55	%	to	2.85	%	13.63	%	to	16.31	%
December 31, 2016	13,671	$	11.85	to	$	17.73	$	185,732	0.00	%	0.55	%	to	2.85	%	2.23	%	to	4.64	%
December 31, 2015	12,956	$	11.43	to	$	17.18	$	172,310	0.00	%	0.55	%	to	2.85	%	-3.87	%	to	-1.59	%
	AST Goldman Sachs Multi-Asset Portfolio
December 31, 2019	16,100	$	12.67	to	$	17.27	$	220,936	0.00	%	0.55	%	to	2.85	%	12.72	%	to	15.38	%
December 31, 2018	14,916	$	11.08	to	$	15.17	$	179,187	0.00	%	0.55	%	to	2.85	%	-9.72	%	to	-7.57	%
December 31, 2017	17,514	$	12.10	to	$	16.65	$	231,540	0.00	%	0.55	%	to	2.85	%	9.09	%	to	11.67	%
December 31, 2016	14,821	$	10.93	to	$	15.11	$	179,412	0.00	%	0.55	%	to	2.85	%	2.26	%	to	4.68	%
December 31, 2015	14,934	$	10.54	to	$	14.64	$	175,525	0.00	%	0.55	%	to	2.85	%	-3.73	%	to	-1.45	%
	ProFund VP Consumer Services
December 31, 2019	14	$	11.18	to	$	35.37	$	387	0.00	%	0.35	%	to	1.50	%	12.25	%	to	23.95	%
December 31, 2018	11	$	25.39	to	$	28.53	$	272	0.00	%	0.55	%	to	1.50	%	-0.88	%	to	0.06	%
December 31, 2017	10	$	25.61	to	$	28.51	$	265	0.00	%	0.55	%	to	1.50	%	16.62	%	to	17.72	%
December 31, 2016	8	$	21.96	to	$	21.96	$	173	0.00	%	1.50	%	to	1.50	%	2.65	%	to	2.65	%
December 31, 2015	11	$	21.40	to	$	21.40	$	236	0.00	%	1.50	%	to	1.50	%	3.14	%	to	3.14	%
	ProFund VP Consumer Goods
December 31, 2019	3	$	20.89	to	$	20.89	$	73	1.47	%	1.50	%	to	1.50	%	24.69	%	to	24.69	%
December 31, 2018	6	$	16.76	to	$	16.76	$	101	1.22	%	1.50	%	to	1.50	%	-16.07	%	to	-16.07	%
December 31, 2017	8	$	19.22	to	$	19.96	$	156	0.82	%	1.50	%	to	1.90	%	12.92	%	to	13.36	%
December 31, 2016	14	$	17.02	to	$	17.61	$	243	1.10	%	1.50	%	to	1.90	%	1.62	%	to	2.02	%
December 31, 2015	7	$	17.26	to	$	17.26	$	113	1.06	%	1.50	%	to	1.50	%	2.62	%	to	2.62	%
	ProFund VP Financials
December 31, 2019	22	$	13.71	to	$	24.59	$	338	0.52	%	0.55	%	to	1.90	%	27.84	%	to	29.55	%
December 31, 2018	26	$	10.72	to	$	18.98	$	311	0.38	%	0.55	%	to	1.90	%	-12.11	%	to	-10.92	%
December 31, 2017	24	$	12.20	to	$	21.31	$	328	0.34	%	0.55	%	to	1.90	%	15.99	%	to	17.54	%
December 31, 2016	27	$	10.52	to	$	18.13	$	308	0.36	%	0.55	%	to	1.90	%	13.17	%	to	14.69	%
December 31, 2015	32	$	9.29	to	$	15.81	$	325	0.34	%	0.55	%	to	1.90	%	-3.33	%	to	-2.04	%
	ProFund VP Health Care
December 31, 2019	13	$	11.06	to	$	32.12	$	357	0.00	%	0.35	%	to	1.90	%	10.35	%	to	18.71	%
December 31, 2018	9	$	24.11	to	$	27.06	$	216	0.00	%	0.55	%	to	1.90	%	2.48	%	to	3.86	%
December 31, 2017	9	$	23.53	to	$	26.05	$	224	0.00	%	0.55	%	to	1.90	%	18.67	%	to	20.25	%
December 31, 2016	10	$	19.83	to	$	21.66	$	197	0.00	%	0.55	%	to	1.90	%	-5.84	%	to	-4.58	%
December 31, 2015	16	$	21.70	to	$	22.70	$	358	0.00	%	0.55	%	to	1.50	%	3.47	%	to	4.45	%

A99

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*		Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	ProFund VP Industrials
December 31, 2019	17	$	19.95	to	$	20.89	$	352	0.00	%	1.50	%	to	1.90	%	28.06	%	to	28.56	%
December 31, 2018	27	$	15.58	to	$	16.25	$	432	0.11	%	1.50	%	to	1.90	%	-14.40	%	to	-14.06	%
December 31, 2017	31	$	18.20	to	$	18.90	$	587	0.20	%	1.50	%	to	1.90	%	20.12	%	to	20.59	%
December 31, 2016	32	$	15.15	to	$	15.68	$	493	0.17	%	1.50	%	to	1.90	%	15.36	%	to	15.81	%
December 31, 2015	17	$	13.13	to	$	13.53	$	231	0.10	%	1.50	%	to	1.90	%	-5.22	%	to	-4.85	%
	ProFund VP Mid-Cap Growth
December 31, 2019	7	$	20.27	to	$	21.23	$	140	0.00	%	1.50	%	to	1.90	%	21.93	%	to	22.41	%
December 31, 2018	11	$	16.63	to	$	17.34	$	195	0.00	%	1.50	%	to	1.90	%	-13.63	%	to	-13.29	%
December 31, 2017	15	$	19.25	to	$	20.00	$	309	0.00	%	1.50	%	to	1.90	%	16.11	%	to	16.56	%
December 31, 2016	18	$	16.58	to	$	17.16	$	304	0.00	%	1.50	%	to	1.90	%	10.78	%	to	11.21	%
December 31, 2015	6	$	15.43	to	$	15.43	$	91	0.00	%	1.50	%	to	1.50	%	-1.20	%	to	-1.20	%
	ProFund VP Mid-Cap Value
December 31, 2019	17	$	18.32	to	$	19.18	$	316	0.21	%	1.50	%	to	1.90	%	21.77	%	to	22.25	%
December 31, 2018	14	$	15.04	to	$	15.69	$	215	0.10	%	1.50	%	to	1.90	%	-14.92	%	to	-14.58	%
December 31, 2017	12	$	17.68	to	$	18.37	$	229	0.31	%	1.50	%	to	1.90	%	8.55	%	to	8.98	%
December 31, 2016	15	$	16.29	to	$	16.85	$	245	0.11	%	1.50	%	to	1.90	%	22.03	%	to	22.51	%
December 31, 2015	1	$	13.76	to	$	13.76	$	17	0.15	%	1.50	%	to	1.50	%	-9.58	%	to	-9.58	%
	ProFund VP Real Estate
December 31, 2019	9	$	15.74	to	$	15.74	$	137	1.69	%	1.50	%	to	1.50	%	24.89	%	to	24.89	%
December 31, 2018	9	$	12.60	to	$	12.60	$	118	2.16	%	1.50	%	to	1.50	%	-7.10	%	to	-7.10	%
December 31, 2017	10	$	13.56	to	$	13.56	$	130	0.98	%	1.50	%	to	1.50	%	6.46	%	to	6.46	%
December 31, 2016	9	$	12.74	to	$	12.74	$	116	1.77	%	1.50	%	to	1.50	%	4.17	%	to	4.17	%
December 31, 2015	10	$	11.87	to	$	17.45	$	122	0.65	%	0.55	%	to	1.90	%	-1.55	%	to	-0.23	%
	ProFund VP Small-Cap Growth
December 31, 2019	6	$	22.11	to	$	23.15	$	135	0.00	%	1.50	%	to	1.90	%	16.90	%	to	17.36	%
December 31, 2018	9	$	18.92	to	$	19.73	$	174	0.00	%	1.50	%	to	1.90	%	-7.52	%	to	-7.15	%
December 31, 2017	9	$	20.45	to	$	21.25	$	197	0.00	%	1.50	%	to	1.90	%	10.87	%	to	11.30	%
December 31, 2016	11	$	18.45	to	$	19.09	$	209	0.00	%	1.50	%	to	1.90	%	18.00	%	to	18.46	%
December 31, 2015	6	$	16.11	to	$	16.11	$	98	0.00	%	1.50	%	to	1.50	%	-0.32	%	to	-0.32	%
	ProFund VP Small-Cap Value
December 31, 2019	12	$	18.94	to	$	19.83	$	228	0.00	%	1.50	%	to	1.90	%	20.28	%	to	20.75	%
December 31, 2018	9	$	15.75	to	$	16.42	$	154	0.00	%	1.50	%	to	1.90	%	-15.82	%	to	-15.49	%
December 31, 2017	2	$	18.71	to	$	19.43	$	47	0.01	%	1.50	%	to	1.90	%	7.67	%	to	8.09	%
December 31, 2016	4	$	17.38	to	$	20.65	$	69	0.00	%	0.55	%	to	1.90	%	26.38	%	to	28.07	%
December 31, 2015	5	$	14.17	to	$	16.12	$	75	0.00	%	0.55	%	to	1.50	%	-9.63	%	to	-8.78	%
	ProFund VP Telecommunications
December 31, 2019	2	$	12.08	to	$	12.08	$	23	3.39	%	1.50	%	to	1.50	%	13.07	%	to	13.07	%
December 31, 2018	3	$	10.69	to	$	10.69	$	35	5.90	%	1.50	%	to	1.50	%	-16.37	%	to	-16.37	%
December 31, 2017	4	$	12.78	to	$	12.78	$	48	4.52	%	1.50	%	to	1.50	%	-3.57	%	to	-3.57	%
December 31, 2016	5	$	13.25	to	$	13.25	$	61	1.62	%	1.50	%	to	1.50	%	19.86	%	to	19.86	%
December 31, 2015	7	$	11.05	to	$	11.05	$	79	1.77	%	1.50	%	to	1.50	%	0.02	%	to	0.02	%
	ProFund VP Utilities
December 31, 2019	9	$	18.19	to	$	18.19	$	159	1.76	%	1.50	%	to	1.50	%	21.06	%	to	21.06	%
December 31, 2018	5	$	15.03	to	$	15.03	$	72	2.05	%	1.50	%	to	1.50	%	1.36	%	to	1.36	%
December 31, 2017	5	$	14.27	to	$	14.83	$	76	2.25	%	1.50	%	to	1.90	%	8.58	%	to	9.01	%
December 31, 2016	6	$	13.15	to	$	13.60	$	83	1.65	%	1.50	%	to	1.90	%	12.94	%	to	13.38	%
December 31, 2015	7	$	12.00	to	$	16.60	$	79	2.27	%	0.55	%	to	1.50	%	-7.79	%	to	-6.92	%
	ProFund VP Large-Cap Growth
December 31, 2019	9	$	23.71	to	$	24.83	$	231	0.00	%	1.50	%	to	1.90	%	26.49	%	to	26.99	%
December 31, 2018	9	$	18.75	to	$	19.55	$	172	0.00	%	1.50	%	to	1.90	%	-3.70	%	to	-3.32	%
December 31, 2017	10	$	19.47	to	$	20.22	$	206	0.00	%	1.50	%	to	1.90	%	22.96	%	to	23.45	%
December 31, 2016	9	$	15.83	to	$	16.38	$	148	0.05	%	1.50	%	to	1.90	%	3.06	%	to	3.47	%
December 31, 2015	17	$	15.83	to	$	15.83	$	274	0.00	%	1.50	%	to	1.50	%	2.22	%	to	2.22	%

A100

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*		Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	ProFund VP Large-Cap Value
December 31, 2019	14	$	16.24	to	$	17.01	$	240	1.06	%	1.50	%	to	1.90	%	27.35	%	to	27.86	%
December 31, 2018	9	$	12.75	to	$	13.30	$	124	0.86	%	1.50	%	to	1.90	%	-12.30	%	to	-11.96	%
December 31, 2017	11	$	14.54	to	$	15.11	$	163	1.07	%	1.50	%	to	1.90	%	11.32	%	to	11.76	%
December 31, 2016	10	$	13.06	to	$	13.52	$	133	1.16	%	1.50	%	to	1.90	%	13.28	%	to	13.73	%
December 31, 2015	12	$	11.88	to	$	11.88	$	144	0.55	%	1.50	%	to	1.50	%	-6.14	%	to	-6.14	%
	AST Bond Portfolio 2020
December 31, 2019	916	$	11.05	to	$	12.18	$	10,875	0.00	%	1.90	%	to	2.85	%	0.55	%	to	1.57	%
December 31, 2018	128	$	10.88	to	$	12.00	$	1,490	0.00	%	1.90	%	to	2.85	%	-2.58	%	to	-1.59	%
December 31, 2017	106	$	11.05	to	$	12.20	$	1,255	0.00	%	1.90	%	to	2.85	%	-1.98	%	to	-0.99	%
December 31, 2016	321	$	11.16	to	$	12.32	$	3,882	0.00	%	1.90	%	to	2.85	%	-0.94	%	to	0.06	%
December 31, 2015	365	$	10.97	to	$	12.32	$	4,432	0.00	%	1.90	%	to	2.85	%	-1.37	%	to	-0.37	%
	AST Jennison Large-Cap Growth Portfolio
December 31, 2019	1,133	$	11.00	to	$	34.75	$	32,555	0.00	%	0.48	%	to	2.70	%	10.47	%	to	31.87	%
December 31, 2018	1,077	$	13.70	to	$	26.47	$	24,467	0.00	%	0.55	%	to	2.70	%	-4.28	%	to	-2.15	%
December 31, 2017	1,073	$	14.05	to	$	27.17	$	25,541	0.00	%	0.55	%	to	2.70	%	32.17	%	to	35.08	%
December 31, 2016	1,031	$	10.43	to	$	20.20	$	18,697	0.00	%	0.55	%	to	2.70	%	-4.12	%	to	-2.01	%
December 31, 2015	1,078	$	10.68	to	$	20.71	$	20,138	0.00	%	0.55	%	to	2.70	%	7.65	%	to	11.41	%
	AST Bond Portfolio 2021
December 31, 2019	322	$	11.75	to	$	13.45	$	4,076	0.00	%	1.75	%	to	2.85	%	2.07	%	to	3.26	%
December 31, 2018	496	$	11.52	to	$	13.02	$	5,938	0.00	%	1.75	%	to	2.85	%	-2.80	%	to	-1.66	%
December 31, 2017	628	$	11.85	to	$	13.24	$	7,715	0.00	%	1.75	%	to	2.85	%	-1.31	%	to	-0.16	%
December 31, 2016	892	$	12.00	to	$	13.27	$	11,124	0.00	%	1.75	%	to	2.85	%	-0.87	%	to	0.28	%
December 31, 2015	1,175	$	12.11	to	$	13.23	$	14,680	0.00	%	1.75	%	to	2.85	%	-1.12	%	to	0.03	%
	Wells Fargo VT International Equity Fund (Class 1)
December 31, 2019	3	$	17.53	to	$	17.53	$	50	4.13	%	1.75	%	to	1.75	%	13.52	%	to	13.52	%
December 31, 2018	3	$	15.44	to	$	15.44	$	39	11.56	%	1.75	%	to	1.75	%	-18.30	%	to	-18.30	%
December 31, 2017	2	$	18.90	to	$	18.90	$	46	3.04	%	1.75	%	to	1.75	%	22.72	%	to	22.72	%
December 31, 2016	3	$	15.40	to	$	15.40	$	40	3.17	%	1.75	%	to	1.75	%	1.48	%	to	1.48	%
December 31, 2015	3	$	15.17	to	$	15.63	$	39	4.26	%	1.50	%	to	1.75	%	0.54	%	to	0.78	%
	Wells Fargo VT Omega Growth Fund (Class 1)
December 31, 2019	104	$	5.33	to	$	5.56	$	558	0.00	%	1.50	%	to	1.75	%	35.03	%	to	35.36	%
December 31, 2018	105	$	3.95	to	$	4.11	$	414	0.00	%	1.50	%	to	1.75	%	-1.22	%	to	-0.98	%
December 31, 2017	106	$	4.00	to	$	4.15	$	423	0.24	%	1.50	%	to	1.75	%	32.64	%	to	32.96	%
December 31, 2016	107	$	3.01	to	$	3.12	$	322	0.00	%	1.50	%	to	1.75	%	-0.96	%	to	-0.72	%
December 31, 2015	106	$	3.04	to	$	3.14	$	324	0.00	%	1.50	%	to	1.75	%	-0.13	%	to	0.12	%
	AST Bond Portfolio 2022
December 31, 2019	284	$	11.11	to	$	12.12	$	3,323	0.00	%	1.90	%	to	2.85	%	2.87	%	to	3.88	%
December 31, 2018	429	$	10.80	to	$	11.67	$	4,816	0.00	%	1.90	%	to	2.85	%	-3.01	%	to	-2.05	%
December 31, 2017	617	$	11.13	to	$	11.92	$	7,200	0.00	%	1.90	%	to	2.85	%	-1.32	%	to	-0.36	%
December 31, 2016	721	$	11.28	to	$	11.96	$	8,478	0.00	%	1.90	%	to	2.85	%	-1.07	%	to	-0.10	%
December 31, 2015	924	$	11.40	to	$	12.35	$	10,940	0.00	%	1.30	%	to	2.85	%	-0.81	%	to	0.79	%
	AST Quantitative Modeling Portfolio
December 31, 2019	4,024	$	10.55	to	$	18.04	$	66,031	0.00	%	0.48	%	to	2.40	%	5.73	%	to	20.54	%
December 31, 2018	3,832	$	11.57	to	$	14.97	$	52,994	0.00	%	0.55	%	to	2.40	%	-8.73	%	to	-7.04	%
December 31, 2017	2,824	$	12.49	to	$	16.10	$	42,014	0.00	%	0.55	%	to	2.40	%	15.43	%	to	17.54	%
December 31, 2016	1,960	$	10.66	to	$	13.70	$	24,699	0.00	%	0.55	%	to	2.40	%	3.84	%	to	5.74	%
December 31, 2015	1,494	$	10.11	to	$	12.96	$	17,788	0.00	%	0.55	%	to	2.40	%	-2.20	%	to	4.38	%
	AST BlackRock Global Strategies Portfolio
December 31, 2019	11,474	$	12.62	to	$	14.97	$	155,803	0.00	%	0.55	%	to	2.55	%	14.70	%	to	16.97	%
December 31, 2018	11,402	$	11.00	to	$	12.79	$	133,698	0.00	%	0.55	%	to	2.55	%	-7.65	%	to	-5.80	%
December 31, 2017	12,231	$	11.91	to	$	13.58	$	153,792	0.00	%	0.55	%	to	2.55	%	9.82	%	to	11.99	%
December 31, 2016	11,986	$	10.85	to	$	12.13	$	136,040	0.00	%	0.55	%	to	2.55	%	4.31	%	to	6.37	%
December 31, 2015	12,009	$	10.40	to	$	11.40	$	129,616	0.00	%	0.55	%	to	2.55	%	-5.41	%	to	-3.53	%

A101

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*		Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	Wells Fargo VT Opportunity Fund (Class 1)
December 31, 2019	6	$	25.33	to	$	25.85	$	164	0.55	%	1.50	%	to	1.75	%	29.54	%	to	29.86	%
December 31, 2018	6	$	19.55	to	$	19.91	$	127	0.43	%	1.50	%	to	1.75	%	-8.54	%	to	-8.31	%
December 31, 2017	8	$	21.38	to	$	21.71	$	171	0.87	%	1.50	%	to	1.75	%	18.65	%	to	18.95	%
December 31, 2016	9	$	18.01	to	$	18.25	$	168	2.27	%	1.50	%	to	1.75	%	10.59	%	to	10.86	%
December 31, 2015	10	$	16.29	to	$	16.46	$	163	0.40	%	1.50	%	to	1.75	%	-4.52	%	to	-4.28	%
	AST Prudential Core Bond Portfolio
December 31, 2019	2,968	$	10.14	to	$	12.81	$	35,623	0.00	%	0.48	%	to	2.70	%	1.09	%	to	9.15	%
December 31, 2018	2,551	$	10.03	to	$	11.74	$	28,280	0.00	%	0.55	%	to	2.70	%	-3.51	%	to	-1.36	%
December 31, 2017	2,337	$	10.40	to	$	11.90	$	26,414	0.00	%	0.55	%	to	2.70	%	2.82	%	to	5.09	%
December 31, 2016	1,830	$	10.11	to	$	11.32	$	19,811	0.00	%	0.55	%	to	2.70	%	1.40	%	to	3.64	%
December 31, 2015	1,336	$	9.84	to	$	10.92	$	14,106	0.00	%	0.55	%	to	2.70	%	-2.96	%	to	-0.82	%
	AST Bond Portfolio 2023
December 31, 2019	54	$	9.90	to	$	10.92	$	543	0.00	%	1.30	%	to	2.55	%	3.86	%	to	5.14	%
December 31, 2018	110	$	9.53	to	$	10.39	$	1,090	0.00	%	1.30	%	to	2.55	%	-2.76	%	to	-1.55	%
December 31, 2017	131	$	9.80	to	$	10.55	$	1,333	0.00	%	1.30	%	to	2.55	%	-0.83	%	to	0.39	%
December 31, 2016	181	$	9.88	to	$	10.51	$	1,835	0.00	%	1.30	%	to	2.55	%	-0.62	%	to	0.61	%
December 31, 2015	97	$	9.80	to	$	10.45	$	982	0.00	%	1.30	%	to	2.85	%	-0.22	%	to	1.39	%
	AST MFS Growth Allocation Portfolio
December 31, 2019	4,961	$	11.30	to	$	16.91	$	75,361	0.00	%	0.35	%	to	2.85	%	12.85	%	to	22.09	%
December 31, 2018	4,069	$	11.85	to	$	13.85	$	51,311	0.00	%	0.55	%	to	2.85	%	-10.90	%	to	-8.78	%
December 31, 2017	4,641	$	13.30	to	$	15.18	$	64,866	0.00	%	0.55	%	to	2.85	%	13.18	%	to	15.85	%
December 31, 2016	4,533	$	11.72	to	$	13.11	$	55,405	0.00	%	0.55	%	to	2.85	%	1.36	%	to	3.75	%
December 31, 2015	4,408	$	11.40	to	$	12.63	$	52,607	0.00	%	0.55	%	to	2.85	%	-4.06	%	to	-1.78	%
	AST Western Asset Emerging Markets Debt Portfolio
December 31, 2019	89	$	10.28	to	$	12.52	$	1,035	0.00	%	0.48	%	to	1.95	%	2.98	%	to	14.22	%
December 31, 2018	72	$	9.21	to	$	10.99	$	728	0.00	%	0.55	%	to	1.95	%	-8.50	%	to	-7.18	%
December 31, 2017	68	$	10.06	to	$	11.86	$	749	0.00	%	0.55	%	to	1.95	%	7.18	%	to	8.70	%
December 31, 2016	43	$	9.39	to	$	10.93	$	435	0.00	%	0.55	%	to	1.95	%	8.45	%	to	10.00	%
December 31, 2015	36	$	8.65	to	$	9.95	$	326	0.00	%	0.55	%	to	1.95	%	-4.97	%	to	0.60	%
	AST MFS Large-Cap Value Portfolio
December 31, 2019	1,033	$	10.60	to	$	22.43	$	20,655	0.00	%	0.48	%	to	2.45	%	6.32	%	to	28.64	%
December 31, 2018	893	$	11.87	to	$	17.44	$	14,199	0.00	%	0.55	%	to	2.85	%	-12.73	%	to	-10.65	%
December 31, 2017	972	$	13.33	to	$	19.51	$	17,578	0.00	%	0.55	%	to	2.85	%	14.01	%	to	16.70	%
December 31, 2016	926	$	11.45	to	$	16.72	$	14,586	0.00	%	0.55	%	to	2.85	%	10.22	%	to	12.82	%
December 31, 2015	571	$	10.18	to	$	14.82	$	8,033	0.00	%	0.55	%	to	2.85	%	-3.55	%	to	6.06	%
	AST Bond Portfolio 2024
December 31, 2019	107	$	9.81	to	$	10.66	$	1,098	0.00	%	1.30	%	to	2.45	%	5.31	%	to	6.57	%
December 31, 2018	434	$	9.32	to	$	10.00	$	4,129	0.00	%	1.30	%	to	2.45	%	-3.09	%	to	-1.93	%
December 31, 2017	432	$	9.61	to	$	10.20	$	4,241	0.00	%	1.30	%	to	2.45	%	-0.80	%	to	0.38	%
December 31, 2016	39	$	9.69	to	$	10.16	$	387	0.00	%	1.30	%	to	2.45	%	-0.58	%	to	0.60	%
December 31, 2015	71	$	9.63	to	$	10.10	$	704	0.00	%	1.30	%	to	2.85	%	-0.09	%	to	1.52	%
	AST AQR Emerging Markets Equity Portfolio
December 31, 2019	264	$	10.73	to	$	14.01	$	3,165	0.00	%	0.48	%	to	1.90	%	9.66	%	to	17.16	%
December 31, 2018	231	$	9.29	to	$	11.98	$	2,366	0.00	%	0.55	%	to	1.90	%	-20.50	%	to	-19.40	%
December 31, 2017	193	$	11.68	to	$	14.89	$	2,447	0.00	%	0.55	%	to	1.90	%	32.39	%	to	34.21	%
December 31, 2016	66	$	8.82	to	$	11.12	$	635	0.00	%	0.55	%	to	1.90	%	11.22	%	to	12.74	%
December 31, 2015	31	$	7.93	to	$	8.27	$	251	0.00	%	0.55	%	to	1.90	%	-17.13	%	to	-15.99	%
	AST ClearBridge Dividend Growth Portfolio
December 31, 2019	894	$	10.53	to	$	21.18	$	17,386	0.00	%	0.48	%	to	2.85	%	5.92	%	to	30.31	%
December 31, 2018	770	$	13.08	to	$	16.26	$	11,691	0.00	%	0.55	%	to	2.85	%	-7.49	%	to	-5.29	%
December 31, 2017	931	$	13.85	to	$	17.16	$	15,029	0.00	%	0.55	%	to	2.85	%	15.04	%	to	17.75	%
December 31, 2016	1,026	$	11.80	to	$	14.58	$	14,260	0.00	%	0.55	%	to	2.85	%	11.63	%	to	14.26	%
December 31, 2015	440	$	10.36	to	$	12.76	$	5,391	0.00	%	0.55	%	to	2.70	%	-6.18	%	to	7.54	%

A102

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*		Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	AST Multi-Sector Fixed Income Portfolio
December 31, 2019	174,543	$	12.13	to	$	12.82	$	2,116,572	0.00	%	1.10	%	to	1.90	%	16.46	%	to	17.41	%
December 31, 2018	137,940	$	10.41	to	$	10.92	$	1,436,314	0.00	%	1.10	%	to	1.90	%	-7.40	%	to	-6.64	%
December 31, 2017	113,950	$	11.24	to	$	11.70	$	1,281,280	0.00	%	1.10	%	to	1.90	%	6.66	%	to	7.53	%
December 31, 2016	96,517	$	10.54	to	$	10.88	$	1,017,452	0.00	%	1.10	%	to	1.90	%	6.86	%	to	7.73	%
December 31, 2015	60,419	$	9.86	to	$	10.10	$	596,025	0.00	%	1.10	%	to	1.90	%	-4.91	%	to	-4.14	%
	AST AQR Large-Cap Portfolio
December 31, 2019	118	$	10.72	to	$	19.88	$	2,149	0.00	%	0.48	%	to	1.95	%	7.63	%	to	21.90	%
December 31, 2018	115	$	12.48	to	$	16.31	$	1,755	0.00	%	0.55	%	to	1.95	%	-9.94	%	to	-8.64	%
December 31, 2017	86	$	13.70	to	$	17.85	$	1,466	0.00	%	0.55	%	to	1.95	%	19.76	%	to	21.46	%
December 31, 2016	64	$	11.32	to	$	14.70	$	907	0.00	%	0.55	%	to	1.90	%	8.60	%	to	10.09	%
December 31, 2015	27	$	10.32	to	$	13.35	$	355	0.00	%	0.55	%	to	1.90	%	-0.21	%	to	7.26	%
	AST QMA Large-Cap Portfolio
December 31, 2019	96	$	10.77	to	$	20.84	$	1,804	0.00	%	0.48	%	to	1.95	%	7.89	%	to	24.50	%
December 31, 2018	75	$	12.76	to	$	16.74	$	1,197	0.00	%	0.55	%	to	1.95	%	-8.97	%	to	-7.66	%
December 31, 2017	63	$	13.85	to	$	18.13	$	1,090	0.00	%	0.55	%	to	1.95	%	19.05	%	to	20.74	%
December 31, 2016	48	$	11.49	to	$	15.01	$	698	0.00	%	0.55	%	to	1.95	%	8.70	%	to	10.25	%
December 31, 2015	24	$	10.44	to	$	13.62	$	311	0.00	%	0.55	%	to	1.90	%	-0.39	%	to	8.62	%
	AST Bond Portfolio 2025
December 31, 2019	62	$	11.11	to	$	11.78	$	719	0.00	%	1.90	%	to	2.85	%	5.62	%	to	6.65	%
December 31, 2018	227	$	10.52	to	$	11.05	$	2,469	0.00	%	1.90	%	to	2.85	%	-3.58	%	to	-2.63	%
December 31, 2017	28	$	10.91	to	$	11.16	$	303	0.00	%	2.30	%	to	2.85	%	-1.07	%	to	-0.51	%
December 31, 2016	44	$	11.03	to	$	11.57	$	484	0.00	%	1.30	%	to	2.85	%	-0.44	%	to	1.16	%
December 31, 2015	2,806	$	11.08	to	$	11.44	$	31,560	0.00	%	1.30	%	to	2.85	%	-0.91	%	to	0.69	%
	AST T. Rowe Price Growth Opportunities Portfolio
December 31, 2019	16,861	$	11.25	to	$	15.33	$	244,963	0.00	%	0.35	%	to	1.95	%	12.25	%	to	24.04	%
December 31, 2018	10,900	$	11.53	to	$	12.36	$	128,786	0.00	%	0.55	%	to	1.95	%	-9.45	%	to	-8.15	%
December 31, 2017	8,173	$	12.74	to	$	13.46	$	105,998	0.00	%	0.55	%	to	1.95	%	18.06	%	to	19.74	%
December 31, 2016	5,808	$	10.79	to	$	11.24	$	63,454	0.00	%	0.55	%	to	1.95	%	3.40	%	to	4.87	%
December 31, 2015	3,680	$	10.43	to	$	10.72	$	38,695	0.00	%	0.55	%	to	1.95	%	-0.48	%	to	0.94	%
	AST Goldman Sachs Global Growth Allocation Portfolio
December 31, 2019	390	$	10.51	to	$	13.30	$	5,096	0.00	%	0.48	%	to	0.86	%	5.26	%	to	19.90	%
December 31, 2018	369	$	10.94	to	$	11.09	$	4,089	0.00	%	0.55	%	to	0.86	%	-10.25	%	to	-9.97	%
December 31, 2017	345	$	12.19	to	$	12.32	$	4,243	0.00	%	0.55	%	to	0.86	%	15.71	%	to	16.07	%
December 31, 2016	310	$	10.53	to	$	10.62	$	3,290	0.00	%	0.55	%	to	0.86	%	4.79	%	to	5.11	%
December 31, 2015	276	$	10.05	to	$	10.12	$	2,782	0.00	%	0.55	%	to	0.83	%	-1.79	%	to	4.89	%
	AST T. Rowe Price Diversified Real Growth Portfolio
December 31, 2019	715	$	10.53	to	$	14.64	$	10,229	0.00	%	0.48	%	to	0.86	%	5.36	%	to	21.40	%
December 31, 2018	563	$	11.60	to	$	12.10	$	6,668	0.00	%	0.55	%	to	0.86	%	-7.91	%	to	-7.62	%
December 31, 2017	528	$	12.60	to	$	13.14	$	6,781	0.00	%	0.55	%	to	0.86	%	17.65	%	to	18.02	%
December 31, 2016	503	$	10.71	to	$	11.16	$	5,491	0.00	%	0.55	%	to	0.86	%	6.40	%	to	11.77	%
December 31, 2015	430	$	10.07	to	$	10.28	$	4,400	0.00	%	0.55	%	to	0.86	%	-1.02	%	to	3.84	%
	AST Prudential Flexible Multi-Strategy Portfolio
December 31, 2019	1,170	$	10.49	to	$	13.85	$	15,829	0.00	%	0.48	%	to	0.86	%	5.03	%	to	14.24	%
December 31, 2018	1,077	$	11.40	to	$	12.12	$	12,900	0.00	%	0.55	%	to	0.86	%	-7.34	%	to	-7.05	%
December 31, 2017	922	$	12.30	to	$	13.04	$	11,889	0.00	%	0.55	%	to	0.86	%	15.96	%	to	16.32	%
December 31, 2016	761	$	10.61	to	$	11.21	$	8,453	0.00	%	0.55	%	to	0.86	%	6.54	%	to	6.87	%
December 31, 2015	540	$	9.96	to	$	10.49	$	5,627	0.00	%	0.55	%	to	0.86	%	-0.83	%	to	1.37	%
	AST Franklin Templeton K2 Global Absolute Return Portfolio
December 31, 2019	273	$	9.95	to	$	10.67	$	2,759	0.00	%	0.48	%	to	0.86	%	3.62	%	to	5.47	%
December 31, 2018	297	$	9.44	to	$	10.13	$	2,845	0.00	%	0.55	%	to	0.86	%	-6.25	%	to	-5.96	%
December 31, 2017	299	$	10.05	to	$	10.79	$	3,041	0.00	%	0.55	%	to	0.86	%	6.59	%	to	6.92	%
December 31, 2016	284	$	9.42	to	$	10.11	$	2,702	0.00	%	0.55	%	to	0.86	%	1.47	%	to	1.79	%
December 31, 2015	183	$	9.26	to	$	9.95	$	1,707	0.00	%	0.55	%	to	0.73	%	-4.35	%	to	0.93	%

A103

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*		Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	AST Managed Equity Portfolio
December 31, 2019	285	$	10.69	to	$	14.22	$	4,021	0.00	%	0.48	%	to	0.86	%	7.42	%	to	24.80	%
December 31, 2018	269	$	11.23	to	$	11.39	$	3,054	0.00	%	0.55	%	to	0.86	%	-12.87	%	to	-12.59	%
December 31, 2017	273	$	12.89	to	$	13.03	$	3,559	0.00	%	0.55	%	to	0.86	%	23.12	%	to	23.50	%
December 31, 2016	213	$	10.47	to	$	10.55	$	2,245	0.00	%	0.55	%	to	0.86	%	4.30	%	to	4.63	%
December 31, 2015	135	$	10.04	to	$	10.09	$	1,362	0.00	%	0.55	%	to	0.73	%	-2.12	%	to	4.46	%
	AST Managed Fixed Income Portfolio
December 31, 2019	581	$	10.12	to	$	11.15	$	6,442	0.00	%	0.48	%	to	0.86	%	0.95	%	to	8.20	%
December 31, 2018	581	$	10.17	to	$	10.30	$	5,966	0.00	%	0.55	%	to	0.86	%	-1.70	%	to	-1.39	%
December 31, 2017	519	$	10.34	to	$	10.45	$	5,409	0.00	%	0.55	%	to	0.86	%	3.01	%	to	3.33	%
December 31, 2016	444	$	10.03	to	$	10.12	$	4,487	0.00	%	0.55	%	to	0.86	%	2.64	%	to	2.96	%
December 31, 2015	264	$	9.77	to	$	9.84	$	2,594	0.00	%	0.55	%	to	0.86	%	-2.41	%	to	-1.06	%
	AST FQ Absolute Return Currency Portfolio
December 31, 2019	49	$	9.03	to	$	9.99	$	452	0.00	%	0.55	%	to	0.86	%	-4.03	%	to	0.45	%
December 31, 2018	51	$	9.40	to	$	10.40	$	486	0.00	%	0.55	%	to	0.86	%	-6.28	%	to	-5.98	%
December 31, 2017	52	$	10.01	to	$	11.08	$	529	0.00	%	0.55	%	to	0.86	%	-3.86	%	to	-3.56	%
December 31, 2016	43	$	10.39	to	$	11.51	$	454	0.00	%	0.55	%	to	0.86	%	14.14	%	to	14.49	%
December 31, 2015	17	$	9.08	to	$	10.07	$	155	0.00	%	0.55	%	to	0.86	%	-6.38	%	to	-3.25	%
	AST Jennison Global Infrastructure Portfolio
December 31, 2019	155	$	10.55	to	$	13.69	$	2,108	0.00	%	0.48	%	to	0.86	%	6.20	%	to	27.63	%
December 31, 2018	153	$	10.66	to	$	10.73	$	1,645	0.00	%	0.55	%	to	0.86	%	-9.35	%	to	-9.06	%
December 31, 2017	143	$	11.74	to	$	11.81	$	1,683	0.00	%	0.55	%	to	0.73	%	17.99	%	to	18.20	%
December 31, 2016	106	$	9.95	to	$	10.01	$	1,054	0.00	%	0.55	%	to	0.73	%	7.32	%	to	7.52	%
December 31, 2015	54	$	9.26	to	$	9.28	$	505	0.00	%	0.55	%	to	0.68	%	-10.95	%	to	-10.83	%
	AST PIMCO Dynamic Bond Portfolio
December 31, 2019	191	$	9.72	to	$	10.16	$	1,898	0.00	%	0.48	%	to	0.86	%	1.52	%	to	4.74	%
December 31, 2018	115	$	9.29	to	$	9.69	$	1,085	0.00	%	0.55	%	to	0.86	%	-1.17	%	to	-0.86	%
December 31, 2017	83	$	9.38	to	$	9.79	$	788	0.00	%	0.55	%	to	0.86	%	-1.16	%	to	-0.86	%
December 31, 2016	64	$	9.47	to	$	9.89	$	619	0.00	%	0.55	%	to	0.86	%	0.18	%	to	0.49	%
December 31, 2015	20	$	9.44	to	$	9.86	$	185	0.00	%	0.55	%	to	0.73	%	-2.92	%	to	-0.98	%
	AST Legg Mason Diversified Growth Portfolio
December 31, 2019	4,211	$	12.36	to	$	13.29	$	53,392	0.00	%	0.55	%	to	1.95	%	15.95	%	to	17.60	%
December 31, 2018	3,258	$	10.66	to	$	11.30	$	35,438	0.00	%	0.55	%	to	1.95	%	-8.01	%	to	-6.69	%
December 31, 2017	3,031	$	11.59	to	$	12.00	$	35,642	0.00	%	0.85	%	to	1.95	%	12.38	%	to	13.63	%
December 31, 2016	1,809	$	10.31	to	$	10.63	$	18,833	0.00	%	0.55	%	to	1.95	%	6.80	%	to	8.32	%
December 31, 2015	789	$	9.66	to	$	9.78	$	7,654	0.00	%	0.85	%	to	1.95	%	-2.84	%	to	-1.75	%
	AST Bond Portfolio 2026 (Available January 2, 2015)
December 31, 2019	978	$	9.97	to	$	10.80	$	10,189	0.00	%	1.30	%	to	2.85	%	6.89	%	to	8.62	%
December 31, 2018	1,788	$	9.33	to	$	9.94	$	17,164	0.00	%	1.30	%	to	2.85	%	-3.88	%	to	-2.32	%
December 31, 2017	1,676	$	9.70	to	$	10.18	$	16,629	0.00	%	1.30	%	to	2.85	%	-0.49	%	to	1.11	%
December 31, 2016	2,384	$	9.75	to	$	10.07	$	23,603	0.00	%	1.30	%	to	2.85	%	-0.83	%	to	0.77	%
December 31, 2015	382	$	9.83	to	$	9.99	$	3,786	0.00	%	1.30	%	to	2.85	%	-1.68	%	to	-0.10	%
	AST AB Global Bond Portfolio (Available July 13, 2015)
December 31, 2019	176	$	10.03	to	$	11.40	$	1,988	0.00	%	0.48	%	to	0.86	%	0.15	%	to	6.56	%
December 31, 2018	171	$	10.46	to	$	10.70	$	1,821	0.00	%	0.55	%	to	0.86	%	-0.50	%	to	-0.19	%
December 31, 2017	149	$	10.51	to	$	10.72	$	1,596	0.00	%	0.55	%	to	0.86	%	1.67	%	to	1.98	%
December 31, 2016	120	$	10.34	to	$	10.51	$	1,261	0.00	%	0.55	%	to	0.86	%	4.26	%	to	4.58	%
December 31, 2015	30	$	9.92	to	$	10.05	$	298	0.00	%	0.55	%	to	0.86	%	-0.90	%	to	0.54	%
	AST Goldman Sachs Global Income Portfolio (Available July 13, 2015)
December 31, 2019	72	$	10.05	to	$	11.42	$	814	0.00	%	0.48	%	to	0.86	%	0.32	%	to	9.04	%
December 31, 2018	49	$	10.25	to	$	10.48	$	506	0.00	%	0.55	%	to	0.86	%	-1.14	%	to	-0.83	%
December 31, 2017	47	$	10.37	to	$	10.57	$	495	0.00	%	0.55	%	to	0.86	%	1.22	%	to	1.54	%
December 31, 2016	21	$	10.24	to	$	10.41	$	214	0.00	%	0.55	%	to	0.86	%	2.56	%	to	2.88	%
December 31, 2015	4	$	10.11	to	$	10.11	$	40	0.00	%	0.55	%	to	0.55	%	1.14	%	to	1.14	%

A104

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*		Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	AST Morgan Stanley Multi-Asset Portfolio (Available July 13, 2015) (Liquidated June 28, 2019)
December 31, 2019	—	$	8.95	to	$	9.04	$	—	0.00	%	0.55	%	to	0.86	%	0.17	%	to	0.32	%
December 31, 2018	40	$	8.93	to	$	9.02	$	363	0.00	%	0.55	%	to	0.86	%	-1.51	%	to	-1.20	%
December 31, 2017	20	$	9.05	to	$	9.14	$	185	0.00	%	0.55	%	to	0.86	%	-0.86	%	to	-0.55	%
December 31, 2016	16	$	9.11	to	$	9.19	$	148	0.00	%	0.55	%	to	0.86	%	-3.58	%	to	-3.28	%
December 31, 2015	3	$	9.44	to	$	9.44	$	26	0.00	%	0.55	%	to	0.55	%	-5.64	%	to	-5.64	%
	AST Wellington Management Global Bond Portfolio (Available July 13, 2015)
December 31, 2019	76	$	9.96	to	$	11.50	$	861	0.00	%	0.48	%	to	0.86	%	-0.78	%	to	6.40	%
December 31, 2018	65	$	10.47	to	$	10.81	$	697	0.00	%	0.55	%	to	0.86	%	2.58	%	to	2.90	%
December 31, 2017	44	$	10.28	to	$	10.51	$	456	0.00	%	0.55	%	to	0.86	%	1.53	%	to	1.84	%
December 31, 2016	32	$	10.13	to	$	10.32	$	329	0.00	%	0.55	%	to	0.86	%	1.79	%	to	2.10	%
December 31, 2015	19	$	10.10	to	$	10.10	$	194	0.00	%	0.55	%	to	0.68	%	0.98	%	to	1.04	%
	AST Neuberger Berman Long/Short Portfolio (Available July 13, 2015)
December 31, 2019	195	$	10.21	to	$	12.06	$	2,298	0.00	%	0.48	%	to	0.86	%	2.35	%	to	15.18	%
December 31, 2018	175	$	10.19	to	$	10.49	$	1,804	0.00	%	0.55	%	to	0.86	%	-7.60	%	to	-7.31	%
December 31, 2017	89	$	11.00	to	$	11.34	$	995	0.00	%	0.55	%	to	0.86	%	12.18	%	to	12.52	%
December 31, 2016	70	$	9.79	to	$	10.09	$	701	0.00	%	0.55	%	to	0.86	%	2.46	%	to	2.78	%
December 31, 2015	16	$	9.54	to	$	9.84	$	157	0.00	%	0.55	%	to	0.73	%	-4.61	%	to	-0.05	%
	AST Wellington Management Real Total Return Portfolio (Available July 13, 2015) (Liquidated June 28, 2019)
December 31, 2019	—	$	8.77	to	$	9.08	$	—	0.00	%	0.55	%	to	0.86	%	3.35	%	to	3.51	%
December 31, 2018	43	$	8.48	to	$	8.78	$	367	0.00	%	0.55	%	to	0.86	%	-6.57	%	to	-6.28	%
December 31, 2017	31	$	9.06	to	$	9.38	$	285	0.00	%	0.55	%	to	0.86	%	0.56	%	to	0.88	%
December 31, 2016	28	$	8.99	to	$	9.32	$	257	0.00	%	0.55	%	to	0.86	%	-4.44	%	to	-4.14	%
December 31, 2015	7	$	9.39	to	$	9.40	$	66	0.00	%	0.55	%	to	0.68	%	-6.10	%	to	-6.04	%
	AST QMA International Core Equity Portfolio (Available July 13, 2015)
December 31, 2019	94	$	10.60	to	$	11.97	$	1,085	0.00	%	0.48	%	to	0.86	%	6.98	%	to	16.21	%
December 31, 2018	90	$	9.66	to	$	10.32	$	886	0.00	%	0.55	%	to	0.86	%	-16.16	%	to	-15.89	%
December 31, 2017	66	$	11.50	to	$	12.29	$	779	0.00	%	0.55	%	to	0.86	%	23.52	%	to	23.90	%
December 31, 2016	29	$	9.29	to	$	9.94	$	278	0.00	%	0.55	%	to	0.86	%	-0.27	%	to	0.04	%
December 31, 2015	6	$	9.31	to	$	9.31	$	57	0.00	%	0.55	%	to	0.55	%	-7.60	%	to	-7.60	%
	AST Managed Alternatives Portfolio (Available July 13, 2015)
December 31, 2019	222	$	9.88	to	$	10.10	$	2,216	0.00	%	0.48	%	to	0.73	%	1.30	%	to	4.69	%
December 31, 2018	203	$	9.45	to	$	9.58	$	1,933	0.00	%	0.55	%	to	0.73	%	-4.10	%	to	-3.93	%
December 31, 2017	164	$	9.85	to	$	9.99	$	1,619	0.00	%	0.55	%	to	0.86	%	1.68	%	to	1.99	%
December 31, 2016	107	$	9.67	to	$	9.81	$	1,040	0.00	%	0.55	%	to	0.86	%	0.06	%	to	0.38	%
December 31, 2015	57	$	9.65	to	$	9.79	$	555	0.00	%	0.55	%	to	0.86	%	-3.51	%	to	-1.88	%
	AST Emerging Managers Diversified Portfolio (Available July 13, 2015) (Liquidated June 28, 2019)
December 31, 2019	—	$	11.67	to	$	11.97	$	—	0.00	%	0.55	%	to	0.73	%	10.34	%	to	10.44	%
December 31, 2018	73	$	10.57	to	$	10.84	$	777	0.00	%	0.55	%	to	0.73	%	-7.12	%	to	-6.95	%
December 31, 2017	82	$	11.35	to	$	11.68	$	936	0.00	%	0.55	%	to	0.73	%	13.47	%	to	13.67	%
December 31, 2016	40	$	9.99	to	$	10.29	$	400	0.00	%	0.55	%	to	0.73	%	2.74	%	to	2.93	%
December 31, 2015	12	$	9.70	to	$	10.01	$	116	0.00	%	0.55	%	to	0.73	%	-2.95	%	to	2.05	%
	AST Columbia Adaptive Risk Allocation Portfolio (Available July 13, 2015) (Merged January 25, 2019)
December 31, 2019	—	$	11.56	to	$	11.86	$	—	0.00	%	0.55	%	to	0.86	%	3.55	%	to	3.57	%
December 31, 2018	134	$	11.16	to	$	11.45	$	1,506	0.00	%	0.55	%	to	0.86	%	-5.73	%	to	-5.43	%
December 31, 2017	112	$	11.82	to	$	12.13	$	1,333	0.00	%	0.55	%	to	0.86	%	12.74	%	to	13.09	%
December 31, 2016	83	$	10.46	to	$	10.74	$	868	0.00	%	0.55	%	to	0.86	%	8.71	%	to	9.05	%
December 31, 2015	39	$	9.61	to	$	9.87	$	383	0.00	%	0.55	%	to	0.73	%	-3.85	%	to	0.79	%
	Blackrock Global Allocation V.I. Fund (Class III) (Available August 24, 2015)
December 31, 2019	427	$	10.52	to	$	12.53	$	5,332	1.18	%	0.48	%	to	0.86	%	5.41	%	to	17.11	%
December 31, 2018	495	$	10.59	to	$	10.70	$	5,280	0.84	%	0.55	%	to	0.86	%	-8.38	%	to	-8.09	%
December 31, 2017	336	$	11.55	to	$	11.64	$	3,900	1.35	%	0.55	%	to	0.86	%	12.73	%	to	13.08	%
December 31, 2016	308	$	10.25	to	$	10.29	$	3,165	1.57	%	0.55	%	to	0.86	%	2.92	%	to	3.24	%
December 31, 2015	143	$	9.96	to	$	9.97	$	1,424	1.44	%	0.55	%	to	0.86	%	1.58	%	to	1.70	%

A105

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*		Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	JPMorgan Insurance Trust Income Builder Portfolio (Class 2) (Available August 24, 2015)
December 31, 2019	199	$	10.29	to	$	12.60	$	2,482	3.10	%	0.48	%	to	0.86	%	2.82	%	to	13.64	%
December 31, 2018	195	$	10.97	to	$	11.08	$	2,159	0.00	%	0.55	%	to	0.86	%	-5.74	%	to	-5.44	%
December 31, 2017	123	$	11.64	to	$	11.72	$	1,434	3.85	%	0.55	%	to	0.86	%	10.75	%	to	11.09	%
December 31, 2016	106	$	10.51	to	$	10.55	$	1,115	3.99	%	0.55	%	to	0.86	%	5.29	%	to	5.62	%
December 31, 2015	54	$	9.98	to	$	9.99	$	534	5.36	%	0.55	%	to	0.73	%	2.00	%	to	2.07	%
	AST Bond Portfolio 2027 (Available January 4, 2016)
December 31, 2019	532	$	10.06	to	$	10.72	$	5,539	0.00	%	1.30	%	to	2.85	%	7.53	%	to	9.27	%
December 31, 2018	1,345	$	9.35	to	$	9.81	$	12,857	0.00	%	1.30	%	to	2.85	%	-4.09	%	to	-2.53	%
December 31, 2017	1,311	$	9.75	to	$	10.07	$	12,983	0.00	%	1.30	%	to	2.85	%	-0.23	%	to	1.37	%
December 31, 2016	2,001	$	9.77	to	$	9.93	$	19,710	0.00	%	1.30	%	to	2.85	%	-2.26	%	to	-0.69	%
December 31, 2015	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
	NVIT Emerging Markets Fund (Class D) (Available August 5, 2016)
December 31, 2019	37	$	13.14	to	$	13.30	$	485	2.31	%	1.40	%	to	1.75	%	20.47	%	to	20.89	%
December 31, 2018	35	$	10.91	to	$	11.00	$	378	0.35	%	1.40	%	to	1.75	%	-19.13	%	to	-18.85	%
December 31, 2017	34	$	13.49	to	$	13.55	$	462	0.89	%	1.40	%	to	1.75	%	38.68	%	to	39.15	%
December 31, 2016	46	$	9.73	to	$	9.74	$	445	0.80	%	1.40	%	to	1.75	%	-3.95	%	to	-3.81	%
December 31, 2015	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
	AST Bond Portfolio 2028 (Available January 3, 2017)
December 31, 2019	101	$	10.37	to	$	10.68	$	1,062	0.00	%	1.50	%	to	2.45	%	8.86	%	to	9.94	%
December 31, 2018	510	$	9.52	to	$	9.72	$	4,901	0.00	%	1.50	%	to	2.45	%	-4.47	%	to	-3.51	%
December 31, 2017	5	$	9.97	to	$	9.97	$	46	0.00	%	2.45	%	to	2.45	%	-0.30	%	to	-0.30	%
December 31, 2016	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2015	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
	AST Bond Portfolio 2029 (Available January 2, 2018)
December 31, 2019	377	$	10.51	to	$	10.73	$	4,002	0.00	%	1.50	%	to	2.55	%	9.51	%	to	10.64	%
December 31, 2018	16	$	9.60	to	$	9.65	$	150	0.00	%	1.90	%	to	2.45	%	-4.02	%	to	-3.48	%
December 31, 2017	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2016	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2015	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
	AST American Funds Growth Allocation Portfolio (Available April 30, 2018)
December 31, 2019	6,509	$	11.30	to	$	11.57	$	74,239	0.00	%	0.55	%	to	1.95	%	19.92	%	to	21.63	%
December 31, 2018	2,482	$	9.42	to	$	9.51	$	23,479	0.00	%	0.55	%	to	1.95	%	-5.28	%	to	-4.38	%
December 31, 2017	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2016	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2015	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
	AST Bond Portfolio 2030 (Available January 2, 2019)
December 31, 2019	173	$	11.16	to	$	11.29	$	1,942	0.00	%	1.30	%	to	2.45	%	11.60	%	to	12.93	%
December 31, 2018	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2017	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2016	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2015	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
	AST BlackRock 80/20 Target Allocation ETF Portfolio (Available January 28, 2019)
December 31, 2019	2,254	$	12.12	to	$	12.25	$	27,463	0.00	%	0.85	%	to	1.95	%	15.93	%	to	17.13	%
December 31, 2018	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2017	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2016	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2015	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
	AST BlackRock 60/40 Target Allocation ETF Portfolio (Available January 28, 2019)
December 31, 2019	1,561	$	11.70	to	$	11.83	$	18,354	0.00	%	0.85	%	to	1.95	%	12.97	%	to	14.14	%
December 31, 2018	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2017	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2016	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2015	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%

A106

Note 7: Financial Highlights (Continued)

	At the year ended								For the year ended
	Units (000s)	Unit Value Lowest — Highest					Net Assets (000s)		Investment Income Ratio*		Expense Ratio** Lowest — Highest					Total Return*** Lowest — Highest
	AST Dimensional Global Core Allocation Portfolio (Available November 18, 2019)
December 31, 2019	1	$	10.30	to	$	10.30	$	9	0.00	%	1.45	%	to	1.45	%	3.02	%	to	3.02	%
December 31, 2018	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2017	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2016	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%
December 31, 2015	—	$	—	to	$	—	$	—	0.00	%	0.00	%	to	0.00	%	0.00	%	to	0.00	%

* These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying Portfolios, net of management fees assessed by the fund manager, divided by the average daily net assets. These ratios exclude those expenses, such as mortality and expense risk and administration charges, that result in direct reductions in the unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying Portfolios in which the subaccount invests.

** These amounts represent the annualized contract expenses of the Account, consisting primarily of mortality and expense risk and administration charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying Portfolios are excluded.

*** These amounts represent the total returns for the periods indicated, including changes in the value of the underlying Portfolios, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Product designs within a subaccount with no activity during the period were excluded from the range of total returns for that period. Product designs within a subaccount which were offered after a fiscal year began are included in the range of total returns for that period, and their respective total returns may not correspond to the total returns of a product offering with a comparable expense ratio that was presented for the full period. Contract owners may experience different total returns based on their investment options. Subaccounts with a date notation indicate the effective date of that subaccount in the Account. Total returns for periods less than one year are not annualized. The total return is calculated for each of the five years in the period ended December 31, 2019 or from the effective date of the subaccount through the end of the reporting period.

(1) Amount is less than 0.01%.

Note 8: Charges and Expenses

The following represents the various charges and expenses of the Account which are paid to Pruco Life of New Jersey.

A. Mortality and Expense Risk Charges

The mortality and expense risk charges are applied daily against the net assets of each subaccount. Mortality risk is the risk that contract owners may live longer than estimated and expense risk is the risk that the cost of issuing and administering the contracts may exceed related charges assessed by Pruco Life of New Jersey. These charges are assessed through a reduction in unit values.

B. Administration Charge

The administration charge is applied daily against the net assets of each subaccount. Administration charges include costs associated with issuing the contracts, establishing and maintaining records, and providing reports to contract owners. This charge is assessed through a reduction in unit values.

The following are the base and maximum combined mortality and expense risk and administration charges of the respective contracts.

A107

Note 8: Charges and Expenses (Continued)

Products	Base	Maximum
Discovery Choice	1.35%	1.65%
Discovery Select	1.40%	1.40%
Prudential Defined Income Annuity	1.10%	1.90%
Prudential Premier Advisor Variable Annuity Series(1)	0.35% / 0.55%	1.55%
Prudential Premier Investment Variable Annuity B Series(2)	0.48% / 0.55%	0.73%
Prudential Premier Investment Variable Annuity C Series	0.68%	0.86%
Prudential Premier Retirement Variable Annuity	0.85%	0.85%
Prudential Premier Retirement Variable Annuity B Series	1.30%	2.30%
Prudential Premier Retirement Variable Annuity C Series	1.30%	2.75%
Prudential Premier Retirement Variable Annuity L Series	1.30%	2.70%
Prudential Premier Retirement Variable Annuity X Series	1.30%	2.85%
Prudential Premier Variable Annuity B Series	1.15%	2.15%
Prudential Premier Variable Annuity Bb Series	0.95%	1.95%
Prudential Premier Variable Annuity L Series	1.50%	2.50%
Prudential Premier Variable Annuity X Series	1.55%	2.55%
Strategic Partners Advisor	1.40%	2.25%
Strategic Partners FlexElite	1.60%	2.45%
Strategic Partners FlexElite 2	1.65%	2.50%
Strategic Partners Plus	1.40%	2.40%
Strategic Partners Plus 3	1.40%	2.35%
Strategic Partners Select	1.52%	1.52%
Strategic Partners Variable Annuity One	1.40%	2.40%
Strategic Partners Variable Annuity One 3	1.40%	2.35%

⁽¹⁾    Effective February 25, 2019, the base charge on Prudential Premier Advisor Variable Annuity Series product was reduced to 0.35%. Contracts issued under this product on or after February 25, 2019 will have a base charge of 0.35%.

⁽²⁾    Effective September 16, 2019, the base charge on Prudential Premier Investment Variable Annuity B Series product was reduced to 0.48%. Contracts issued under this product on or after September 16, 2019 will have a base charge of 0.48%.

C. Withdrawal Charges

A withdrawal charge may be assessed upon full or partial contract owner redemptions. These charges relate to the expenses of selling and distributing the contracts, including sales commissions, printing of prospectuses, sales administration, preparation of sales literature and other promotional activities. No withdrawal charge is imposed whenever earnings are withdrawn. The range for withdrawal charges is 0%-9%. The charge is assessed through the redemption of units.

D. Other Related Charges

For certain products with Highest Daily Lifetime Seven benefit options, the optional benefit fee is a percentage of the protected withdrawal value and is deducted pro rata from the subaccounts on a quarterly basis.

For certain products with Highest Daily Lifetime Income, Highest Daily Lifetime Six Plus, and Highest Daily Lifetime Seven Plus benefit options, the optional benefit fee is assessed against the greater of the unadjusted account value or the protected withdrawal value and is deducted pro rata from the subaccounts on a quarterly basis.

An annual maintenance fee is charged if purchase payments or account value is less than a stated amount (varies by product).

A108

Note 8: Charges and Expenses (Continued)

A quarterly premium-based charge is applicable to certain products, which ranges from 0.15% to 0.84% annualized.

These other related charges are assessed through the redemption of units.

Note 9: Other

Accumulation units are the basic valuation units used to calculate a contract owner's interest allocated to the variable account before the annuitization date.

Contract owner net payments represent contract owner contributions, net of applicable deductions, charges, and state premium taxes, including transfers from the general account as a remittance of remediation credits to contract owners.

Annuity payments represent transfers to the general account at the time of contract annuitization which are used to establish the fixed payout account from which future annuity payments are distributed under the terms of the contracts.

Surrenders, withdrawals and death benefits are payments to contract owners and beneficiaries made under the terms of the contracts, including amounts that contract owners have requested to be withdrawn or paid to them.

Net transfers between other subaccounts or fixed rate option are amounts that contract owners have directed to be moved among subaccounts, including permitted transfers to and from the guaranteed interest account and market value adjustment account.

Miscellaneous transactions primarily represent timing related adjustments on contract owner transactions, such as premiums, surrenders, transfers, etc. which are funded by the general account in order to maintain appropriate contract owner account balances.

Other charges are contract level charges assessed through the redemption of units as described in Note 8, Charges and Expenses.

Note 10: Subsequent Events

On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and national governments have implemented a range of policies and actions to combat it. The extent of the impact of COVID-19 on world economies, and ultimately on the portfolios in which the subaccounts invest, is highly uncertain and cannot be predicted at this time. Management will continue to monitor developments, and their impact on the fair value of the portfolios, which may be materially adversely affected if the financial markets and/or the overall economy are impacted for an extended period.

A109

Report of Independent Registered Public Accounting Firm

Tothe Board of Directors ofPruco Life Insurance Company of New Jersey and

the Contract Owners of Pruco Life of New Jersey Flexible Premium Variable Annuity Account

Opinions on the Financial Statements

We have audited the accompanying statements of net assets of each of the subaccounts of Pruco Life of New Jersey Flexible Premium Variable Annuity Account indicated in the table below as of the dates indicated in the table below, and the related statements of operationsand of changes in net assets for each of the periods indicated in the table below,including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the subaccounts of Pruco Life of New Jersey Flexible Premium Variable Annuity Account as of the dates indicated in the table below, and the results of each of their operations and the changes in each of their net assets for the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.

Prudential Government Money Market Portfolio (1)	ProFund VP Consumer Goods (1)
Prudential Diversified Bond Portfolio (1)	ProFund VP Financials (1)
Prudential Equity Portfolio (Class I) (1)	ProFund VP Health Care (1)
Prudential Value Portfolio (Class I) (1)	ProFund VP Industrials (1)
Prudential High Yield Bond Portfolio (1)	ProFund VP Mid-Cap Growth (1)
Prudential Stock Index Portfolio (1)	ProFund VP Mid-Cap Value (1)
Prudential Global Portfolio (1)	ProFund VP Real Estate (1)
Prudential Jennison Portfolio (Class I) (1)	ProFund VP Small-Cap Growth (1)
Prudential Small Capitalization Stock Portfolio (1)	ProFund VP Small-Cap Value (1)
T. Rowe Price International Stock Portfolio (1)	ProFund VP Telecommunications (1)
T. Rowe Price Equity Income Portfolio (Equity Income Class) (1)	ProFund VP Utilities (1)
Invesco V.I. Core Equity Fund (Series I) (1)	ProFund VP Large-Cap Growth (1)
Janus Henderson VIT Research Portfolio (Institutional Shares) (1)	ProFund VP Large-Cap Value (1)
Janus Henderson VIT Overseas Portfolio (Institutional Shares) (1)	AST Bond Portfolio 2020 (1)
MFS® Research Series (Initial Class) (1)	AST Jennison Large-Cap Growth Portfolio (1)
MFS® Growth Series (Initial Class) (1)	AST Bond Portfolio 2021 (1)
American Century VP Value Fund (Class I) (1)	Wells Fargo VT International Equity Fund (Class 1) (1)
Franklin Small-Mid Cap Growth VIP Fund (Class 2) (1)	Wells Fargo VT Omega Growth Fund (Class 1) (1)
Prudential Jennison 20/20 Focus Portfolio (Class I) (1)	AST Bond Portfolio 2022 (1)
Davis Value Portfolio (1)	AST Quantitative Modeling Portfolio (1)
AB VPS Large Cap Growth Portfolio (Class B) (1)	AST BlackRock Global Strategies Portfolio (1)
Prudential SP Small Cap Value Portfolio (Class I) (1)	Wells Fargo VT Opportunity Fund (Class 1) (1)
Janus Henderson VIT Research Portfolio (Service Shares) (1)	AST Prudential Core Bond Portfolio (1)
SP Prudential U.S. Emerging Growth Portfolio (Class I) (1)	AST Bond Portfolio 2023 (1)
Prudential SP International Growth Portfolio (Class I) (1)	AST MFS Growth Allocation Portfolio (1)
AST Goldman Sachs Large-Cap Value Portfolio (2)	AST Western Asset Emerging Markets Debt Portfolio (1)
AST Cohen & Steers Realty Portfolio (1)	AST MFS Large-Cap Value Portfolio (1)
AST J.P. Morgan Strategic Opportunities Portfolio (1)	AST Bond Portfolio 2024 (1)
AST T. Rowe Price Large-Cap Value Portfolio (1)	AST AQR Emerging Markets Equity Portfolio (1)
AST High Yield Portfolio (1)	AST ClearBridge Dividend Growth Portfolio (1)
AST Small-Cap Growth Opportunities Portfolio (1)	AST Multi-Sector Fixed Income Portfolio (1)
AST WEDGE Capital Mid-Cap Value Portfolio (1)	AST AQR Large-Cap Portfolio (1)
AST Small-Cap Value Portfolio (1)	AST QMA Large-Cap Portfolio (1)
AST Mid-Cap Growth Portfolio (1)	AST Bond Portfolio 2025 (1)
AST Hotchkis & Wiley Large-Cap Value Portfolio (1)	AST T. Rowe Price Growth Opportunities Portfolio (1)
AST Loomis Sayles Large-Cap Growth Portfolio (1)	AST Goldman Sachs Global Growth Allocation Portfolio (1)
AST MFS Growth Portfolio (1)	AST T. Rowe Price Diversified Real Growth Portfolio (1)
AST Neuberger Berman/LSV Mid-Cap Value Portfolio (1)	AST Prudential Flexible Multi-Strategy Portfolio (1)
AST BlackRock Low Duration Bond Portfolio (1)	AST Franklin Templeton K2 Global Absolute Return Portfolio (1)

A110

AST QMA US Equity Alpha Portfolio (1)	AST Managed Equity Portfolio (1)
AST T. Rowe Price Natural Resources Portfolio (1)	AST Managed Fixed Income Portfolio (1)
AST T. Rowe Price Asset Allocation Portfolio (1)	AST FQ Absolute Return Currency Portfolio (1)
AST MFS Global Equity Portfolio (1)	AST Jennison Global Infrastructure Portfolio (1)
AST J.P. Morgan International Equity Portfolio (1)	AST PIMCO Dynamic Bond Portfolio (1)
AST Templeton Global Bond Portfolio (1)	AST Legg Mason Diversified Growth Portfolio (1)
AST Wellington Management Hedged Equity Portfolio (1)	AST Bond Portfolio 2026 (1)
AST Capital Growth Asset Allocation Portfolio (1)	AST AB Global Bond Portfolio (1)
AST Academic Strategies Asset Allocation Portfolio (1)	AST Goldman Sachs Global Income Portfolio (1)
AST Balanced Asset Allocation Portfolio (1)	AST Morgan Stanley Multi-Asset Portfolio (3)
AST Preservation Asset Allocation Portfolio (1)	AST Wellington Management Global Bond Portfolio (1)
AST Fidelity Institutional AM℠ Quantitative Portfolio (1)	AST Neuberger Berman Long/Short Portfolio (1)
AST Prudential Growth Allocation Portfolio (1)	AST Wellington Management Real Total Return Portfolio (3)
AST Advanced Strategies Portfolio (1)	AST QMA International Core Equity Portfolio (1)
AST T. Rowe Price Large-Cap Growth Portfolio (1)	AST Managed Alternatives Portfolio (1)
AST Government Money Market Portfolio (1)	AST Emerging Managers Diversified Portfolio (3)
AST Small-Cap Growth Portfolio (1)	AST Columbia Adaptive Risk Allocation Portfolio (4)
AST BlackRock/Loomis Sayles Bond Portfolio (1)	Blackrock Global Allocation V.I. Fund (Class III) (1)
AST International Value Portfolio (1)	JPMorgan Insurance Trust Income Builder Portfolio (Class 2) (1)
AST International Growth Portfolio (1)	AST Bond Portfolio 2027 (1)
AST Investment Grade Bond Portfolio (1)	NVIT Emerging Markets Fund (Class D) (1)
AST Western Asset Core Plus Bond Portfolio (1)	AST Bond Portfolio 2028 (1)
AST Bond Portfolio 2019 (1)	AST Bond Portfolio 2029 (5)
AST Cohen & Steers Global Realty Portfolio (1)	AST American Funds Growth Allocation Portfolio (6)
AST Parametric Emerging Markets Equity Portfolio (1)	AST Bond Portfolio 2030 (7)
AST Goldman Sachs Small-Cap Value Portfolio (1)	AST BlackRock 80/20 Target Allocation ETF Portfolio (8)
AST AllianzGI World Trends Portfolio (1)	AST BlackRock 60/40 Target Allocation ETF Portfolio (8)
AST J.P. Morgan Global Thematic Portfolio (1)	AST Dimensional Global Core Allocation Portfolio (9)
AST Goldman Sachs Multi-Asset Portfolio (1)	ProFund VP Consumer Services (1)
(1)      Statement of net assets as of December 31,2019, statement of operations for the year ended December 31, 2019 and statement of changes in net assets for the years ended December 31, 2019 and 2018.
(2)     Statement of net assets as of April 26, 2019 (date of merger), statement of operations for the period January 1, 2019 to April 26, 2019 and statement of changes in net assets for the period January 1, 2019 to April 26, 2019 and for the year ended December 31, 2018.
(3)     Statement of net assets as of June 28, 2019 (date of liquidation), statement of operations for the period January 1, 2019 to June 28, 2019 and statement of changes in net assets for the period January 1, 2019 to June 28, 2019 and for the year ended December 31, 2018.
(4)     Statement of net assets as of January 25, 2019 (date of merger), statement of operations for the period January 1, 2019 to January 25, 2019 and statement of changes in net assets for the period January 1, 2019 to January 25, 2019 and for the year ended December 31, 2018.
(5)     Statement of net assets as of December 31, 2019, statement of operations for the year ended December 31, 2019 and statement of changes in net assets for the year ended December 31, 2019 and for the period ended January 2, 2018 (commencement of operations) to December 31, 2018.
(6)     Statement of net assets as of December 31, 2019, statement of operations for the year ended December 31, 2019 and statement of changes in net assets for the year ended December 31, 2019 and for the period ended April 30, 2018 (commencement of operations) to December 31, 2018.
(7)      Statement of net assets as of December 31, 2019, statement of operations and statement of changes in net assets for the period January 2, 2019 (commencement of operations) to December 31, 2019.
(8)     Statement of net assets as of December 31, 2019, statement of operations and statement of changes in net assets for the period January 28, 2019 (commencement of operations) to December 31, 2019.
(9)     Statement of net assets as of December 31, 2019, statement of operations and statement of changes in net assets for the period November 18, 2019 (commencement of operations) to December 31, 2019.

A111

Basis for Opinions

These financial statements are the responsibility of the Pruco Life Insurance Company of New Jersey management. Our responsibility is to express an opinion on the financial statements of each of the subaccounts of Pruco Life of New Jersey Flexible Premium Variable Annuity Account based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to each of the subaccounts of Pruco Life of New Jersey Flexible Premium Variable Annuity Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of investments owned as of December 31, 2019 by correspondence with the transfer agents of the investee mutual funds. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP

New York, New York

April 7, 2020

We have served as the auditor of one or more of the subaccounts of Pruco Life of New Jersey Flexible Premium Variable Annuity Account since 1996.

A112

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

FINANCIAL STATEMENTS INDEX

	Page
Management’s Annual Report on Internal Control Over Financial Reporting	B-2
Statements of Financial Position as of December 31, 2019 and 2018	B-3
Statements of Operations and Comprehensive Income for the years ended December 31, 2019, 2018 and 2017	B-4
Statements of Equity for the years ended December 31, 2019, 2018 and 2017	B-5
Statements of Cash Flows for the years ended December 31, 2019, 2018 and 2017	B-6
Notes to Financial Statements:	B-7
1      Business and Basis of Presentation	B-7
2      Significant Accounting Policies and Pronouncements	B-7
3      Investments	B-22
4     Derivative Instruments	B-32
5      Fair Value of Assets and Liabilities	B-38
6      Deferred Policy Acquisition Costs	B-52
7      Policyholders’ Liabilities	B-52
8      Certain Long-duration Contracts with Guarantees	B-53
9     Reinsurance	B-56
10    Income Taxes	B-60
11    Equity	B-63
12    Statutory Net Income and Surplus and Dividend Restriction	B-67
13    Related Party Transactions	B-67
14    Commitments, Contingent Liabilities and Litigation and Regulatory Matters	B-70
15    Quarterly Results of Operations (Unaudited)	B-71
Report of Independent Registered Public Accounting Firm	B-72

B-1

Management’s Annual Report on Internal Control Over Financial Reporting

Management of Pruco Life Insurance Company of New Jersey (the “Company”) is responsible for establishing and maintaining adequate internal control over financial reporting. Management conducted an assessment of the effectiveness, as of December 31, 2019, of the Company’s internal control over financial reporting, based on the framework established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on our assessment under that framework, management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2019.

Our internal control over financial reporting is a process designed by or under the supervision of our principal executive and principal financial officers to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and the directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on our financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

This Annual Report does not include an attestation report of the Company’s registered public accounting firm, PricewaterhouseCoopers LLP, regarding the internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this Annual Report.

March 5, 2020

B-2

Pruco Life Insurance Company of New Jersey

Statements of Financial Position

As of December 31, 2019 and 2018 (in thousands, except share amounts)

	December 31, 2019		December 31, 2018
ASSETS
Fixed maturities, available for sale, at fair value (amortized cost: 2019–$1,437,796 ; 2018–$1,297,892)	$	1,550,096	$	1,277,824
Fixed maturities, trading, at fair value (amortized cost: 2019–$14,221; 2018–$7,446)	13,700		5,770
Equity securities, at fair value (cost: 2019–$5,139; 2018–$8,136)	7,512		9,870
Policy loans	211,986		206,448
Commercial mortgage and other loans	143,098		118,636
Other invested assets (includes $24,726 and $10,673 measured at fair value at December 31, 2019 and 2018, respectively)	89,536		58,413
Total investments	2,015,928		1,676,961
Cash and cash equivalents	55,924		70,441
Deferred policy acquisition costs	178,813		165,478
Accrued investment income	19,539		17,764
Reinsurance recoverables	3,200,642		2,723,518
Receivables from parent and affiliates	32,820		40,388
Income taxes receivable	6,268		19,134
Other assets	21,203		23,973
Separate account assets	15,904,208		13,382,345
TOTAL ASSETS	$	21,435,345	$	18,120,002
LIABILITIES AND EQUITY
LIABILITIES
Policyholders' account balances	$	2,424,120	$	2,314,958
Future policy benefits	2,302,959		1,820,092
Cash collateral for loaned securities	2,481		2,702
Short-term debt to affiliates	89		0
Payables to parent and affiliates	24,958		20,413
Other liabilities	140,628		134,771
Separate account liabilities	15,904,208		13,382,345
Total liabilities	$	20,799,443	$	17,675,281
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 14)
EQUITY
Common stock ($5 par value; 400,000 shares authorized; issued and outstanding)	2,000		2,000
Additional paid-in capital	268,021		213,261
Retained earnings	280,246		243,827
Accumulated other comprehensive income (loss)	85,635		(14,367		)
Total equity	635,902		444,721
TOTAL LIABILITIES AND EQUITY	$	21,435,345	$	18,120,002

See Notes to Financial Statements

B-3

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Statements of Operations and Comprehensive Income

Years Ended December 31, 2019, 2018 and 2017 (in thousands)

	2019			2018			2017
REVENUES
Premiums	$	12,931		$	13,007		$	13,967
Policy charges and fee income	65,735			62,567			44,203
Net investment income	76,788			67,811			66,651
Asset administration fees	5,844			5,356			9,075
Other income	4,622			1,004			4,111
Realized investment gains (losses), net:
Other-than-temporary impairments on fixed maturity securities	(5,095		)	(125		)	(80		)
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income	(379		)	0			0
Other realized investment gains (losses), net	(11,914		)	(9,148		)	(13,958		)
Total realized investment gains (losses), net	(17,388		)	(9,273		)	(14,038		)
TOTAL REVENUES	148,532			140,472			123,969
BENEFITS AND EXPENSES
Policyholders’ benefits	25,613			19,829			12,255
Interest credited to policyholders’ account balances	37,746			35,936			32,959
Amortization of deferred policy acquisition costs	14,850			15,972			12,538
General, administrative and other expenses	36,980			37,507			36,898
TOTAL BENEFITS AND EXPENSES	115,189			109,244			94,650
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES	33,343			31,228			29,319
Income tax expense (benefit)	(3,412		)	(53		)	(5,938		)
NET INCOME (LOSS)	$	36,755		$	31,281		$	35,257
Other comprehensive income (loss), before tax:
Foreign currency translation adjustments	10			(1,187		)	43
Net unrealized investment gains (losses)	126,575			(67,692		)	32,210
Total	126,585			(68,879		)	32,253
Less: Income tax expense (benefit) related to other comprehensive income (loss)	26,583			(14,464		)	10,084
Other comprehensive income (loss), net of taxes	100,002			(54,415		)	22,169
Comprehensive income (loss)	$	136,757		$	(23,134	)	$	57,426

See Notes to Financial Statements

B-4

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Statements of Equity

Years Ended December 31, 2019, 2018 and 2017 (in thousands)

	Common   Stock		Additional   Paid-in Capital			Retained Earnings			Accumulated Other   Comprehensive   Income			Total Equity
Balance, December 31, 2016	$	2,000	$	209,786		$	282,810		$	12,161		$	506,757
Contributed capital			1,300									1,300
Dividend to parent						(100,000		)				(100,000		)
Contributed (distributed) capital- parent/child asset transfers			875									875
Comprehensive income:
Net income (loss)						35,257						35,257
Other comprehensive income (loss), net of tax									22,169			22,169
Total comprehensive income (loss)												57,426
Balance, December 31, 2017	2,000		211,961			218,067			34,330			466,358
Cumulative effect of adoption of ASU 2016-01						372			(175		)	197
Cumulative effect of adoption of ASU 2018-02						(5,893		)	5,893			0
Contributed capital			1,300									1,300
Dividend to parent
Contributed (distributed) capital- parent/child asset transfers
Comprehensive income:
Net income (loss)						31,281						31,281
Other comprehensive income (loss), net of tax									(54,415		)	(54,415		)
Total comprehensive income (loss)												(23,134		)
Balance, December 31, 2018	2,000		213,261			243,827			(14,367		)	444,721
Cumulative effect of adoption of accounting changes (1)						(336		)				(336		)
Contributed capital			59,536									59,536
Dividend to parent						0						0
Contributed (distributed) capital- parent/child asset transfers			(4,776		)							(4,776		)
Comprehensive income:
Net income (loss)						36,755						36,755
Other comprehensive income (loss), net of tax									100,002			100,002
Total comprehensive income (loss)												136,757
Balance, December 31, 2019	$	2,000	$	268,021		$	280,246		$	85,635		$	635,902

(1) Includes the impact from the adoption of ASUs 2017-08 and 2017-12. See Note 2.

See Notes to Financial Statements

B-5

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Statements of Cash Flows

Years Ended December 31, 2019, 2018 and 2017 (in thousands)

	2019			2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	36,755		$	31,281		$	35,257
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Policy charges and fee income	(26,433		)	(21,780		)	(9,816		)
Interest credited to policyholders’ account balances	37,746			35,936			32,959
Realized investment (gains) losses, net	17,388			9,273			14,038
Amortization and other non-cash items	(10,762		)	(7,850		)	(10,893		)
Change in:
Future policy benefits	256,062			201,654			192,407
Reinsurance recoverables	(246,914		)	(209,954		)	(194,653		)
Accrued investment income	(1,775		)	(1,184		)	(751		)
Net payables to/receivables from parent and affiliates	5,723			856			2,978
Deferred policy acquisition costs	(24,349		)	(14,771		)	(12,060		)
Income taxes	(12,357		)	(4,963		)	(6,323		)
Derivatives, net	1,194			(4,777		)	7,191
Other, net	(3,014		)	21,047			(1,314		)
Cash flows from (used in) operating activities	29,264			34,768			49,020
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale	72,095			73,692			191,284
Equity securities	3,353			1,939			5
Policy loans	27,022			23,009			21,743
Ceded policy loans	(1,576		)	(1,990		)	(2,015		)
Short-term investments	0			0			32,985
Commercial mortgage and other loans	9,788			4,209			55,580
Other invested assets	1,679			2,502			2,875
Payments for the purchase/origination of:
Fixed maturities, available-for-sale	(166,382		)	(167,311		)	(263,909		)
Fixed maturities, trading	(6,776		)	0			0
Equity securities	(50		)	(2,002		)	(2,000		)
Policy loans	(24,529		)	(28,537		)	(20,053		)
Ceded policy loans	2,337			2,734			2,461
Short-term investments	0			0			(21,981		)
Commercial mortgage and other loans	(33,817		)	(1,595		)	(15,623		)
Other invested assets	(16,980		)	(7,186		)	(4,444		)
Notes receivable from parent and affiliates, net	6,362			455			331
Derivatives, net	(561		)	161			213
Other, net	(410		)	(282		)	(402		)
Cash flows from (used in) investing activities	(128,445		)	(100,202		)	(22,950		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders’ account deposits	553,804			555,153			503,455
Ceded policyholders’ account deposits	(342,648		)	(337,536		)	(332,727		)
Policyholders’ account withdrawals	(342,230		)	(311,159		)	(268,989		)
Ceded policyholders’ account withdrawals	224,910			187,237			155,696
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities	(221		)	(12,505		)	153
Dividend to parent	0			0			(100,000		)
Contributed (distributed) capital - parent/child asset transfers	0			0			1,347
Net change in financing arrangements (maturities 90 days or less)	89			0			0
Drafts outstanding	(9,040		)	10,067			2,629
Cash flows from (used in) financing activities	84,664			91,257			(38,436		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(14,517		)	25,823			(12,366		)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	70,441			44,618			56,984
CASH AND CASH EQUIVALENTS, END OF YEAR	$	55,924		$	70,441		$	44,618
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid (refund)	$	8,946		$	4,910		$	346
Interest paid	$	100		$	5		$	3

Significant Non-Cash Transactions

In December of 2019, the Company received $60 million of non-cash assets from its parent, Pruco Life Insurance Company. See Note 13 for additional information. There were no significant non-cash transactions for the years ended December 31, 2018 and 2017.

See Notes to Financial Statements

B-6

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements

1. BUSINESS AND BASIS OF PRESENTATION

Pruco Life Insurance Company of New Jersey (“PLNJ”) is a wholly-owned subsidiary of Pruco Life Insurance Company (“Pruco Life”), which in turn is a wholly-owned subsidiary of The Prudential Insurance Company of America (“Prudential Insurance”). Prudential Insurance is a direct wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). PLNJ is a stock life insurance company organized in 1982 under the laws of the State of New Jersey. It is licensed to sell life insurance and annuities in New Jersey and New York only, and sells such products primarily through affiliated and unaffiliated distributors.

Through March 31, 2016, the Company reinsured the majority of its variable annuity living benefit guarantees to its affiliated companies, Pruco Reinsurance, Ltd. ("Pruco Re") and Pruco Life. Effective April 1, 2016, the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to Pruco Re and Pruco Life. In addition, the Company reinsured the variable annuity base contracts, along with the living benefit guarantees, to Prudential Insurance under a coinsurance and modified coinsurance agreement. This reinsurance agreement covers new and in force business. The product risks related to the reinsured business are being managed in Prudential Insurance. In addition, the living benefit hedging program related to the reinsured living benefit guarantees is being managed within Prudential Insurance.

Basis of Presentation

The Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates include those used in determining DAC and related amortization; fair value of embedded derivative instruments associated with index-linked features of certain universal life products; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters.

Reclassifications

Certain amounts in prior periods have been reclassified to conform to the current period presentation.

2. SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS

ASSETS

Fixed maturities, available-for-sale, at fair value are comprised of bonds, notes and redeemable preferred stock. Fixed maturities classified as “available-for-sale” are carried at fair value. See Note 5 for additional information regarding the determination of fair value. The associated unrealized gains and losses, net of tax, and the effect on DAC, DSI, future policy benefits, reinsurance recoverables, and policyholders’ account balances that would result from the realization of unrealized gains and losses, are included in “Accumulated other comprehensive income (loss)” (“AOCI”). The purchased cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts to maturity or, if applicable, call date.

B-7

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. Additionally, prepayment premiums are also included in “Net investment income”. For mortgage-backed and asset-backed securities, the effective yield is based on estimated cash flows, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also vary based on other assumptions regarding the underlying collateral, including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of OTTI recognized in earnings and other comprehensive income (loss) ("OCI"). For high credit quality mortgage-backed and asset-backed securities (those rated AA or above), cash flows are provided quarterly, and the amortized cost and effective yield of the securities are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost are recorded as a charge or credit to "Net investment income" in accordance with the retrospective method. For mortgage-backed and asset-backed securities rated below AA or those for which an OTTI has been recorded, the effective yield is adjusted prospectively for any changes in estimated cash flows. See the discussion below on realized investment gains and losses for a description of the accounting for impairments.

Fixed maturities, trading, at fair value consists of fixed maturities that are carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income,” and interest and dividend income from these investments is reported in “Net investment income”.

Equity securities, at fairvalue is comprised of common stock and mutual fund shares, which are carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income,” and dividend income is reported in “Net investment income” on the ex-dividend date.

Effective January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities using a modified retrospective method. Adoption of this ASU impacted the Company’s accounting and presentation related to equity investments. The most significant impact is that the changes in fair value of equity securities previously classified as “available-for-sale” are reported in net income within “Other income” in the Statements of Operations. Prior to this, the changes in fair value on equity securities classified as “available-for-sale” were reported in AOCI. The impact of this standard resulted in an increase to retained earnings of $372 thousand, a reduction to AOCI of $175 thousand, and an increase to equity of $197 thousand upon adoption on January 1, 2018.

Policy loans represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in “Net investment income” at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies.

Commercial mortgage and other loans consist of commercial mortgage loans and agricultural property loans. Commercial mortgage and other loans held for investment are generally carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses and net of an allowance for losses. Commercial mortgage and other loans acquired, including those related to the acquisition of a business, are recorded at fair value when purchased, reflecting any premiums or discounts to unpaid principal balances. Interest income, and the amortization of the related premiums or discounts, are included in “Net investment income” under the effective yield method. Prepayment fees are also included in “Net investment income”.

Impaired loans include those loans for which it is probable that amounts due will not all be collected according to the contractual terms of the loan agreement. The Company defines “past due” as principal or interest not collected at least 30 days past the scheduled contractual due date. Interest received on loans that are past due, including impaired and non-impaired loans as well as loans that were previously modified in a troubled debt restructuring, is either applied against the principal or reported as net investment income based on the Company’s assessment as to the collectability of the principal. See Note 3 for additional information about the Company’s past due loans.

The Company discontinues accruing interest on loans after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability. When the Company discontinues accruing interest on a loan, any accrued but uncollectible interest on the loan and other loans backed by the same collateral, if any, is charged to interest income in the same period. Generally, a loan is restored to accrual status only after all delinquent interest and principal are brought current and, in the case of loans where the payment of interest has been interrupted for a substantial period, or the loan has been modified, a regular payment performance has been established.

B-8

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The Company reviews the performance and credit quality of the commercial mortgage and other loan portfolio on an on-going basis. Loans are placed on watch list status based on a predefined set of criteria and are assigned one of two categories. Loans are classified as “closely monitored” when it is determined that there is a collateral deficiency or other credit events that may lead to a potential loss of principal or interest. Loans “not in good standing” are those loans where the Company has concluded that there is a high probability of loss of principal, such as when the loan is delinquent or in the process of foreclosure. As described below, in determining the allowance for losses, the Company evaluates each loan on the watch list to determine if it is probable that amounts due will not be collected according to the contractual terms of the loan agreement.

Loan-to-value and debt service coverage ratios are measures commonly used to assess the quality of commercial mortgage loans. The loan-to-value ratio compares the amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. The debt service coverage ratio compares a property’s net operating income to its debt service payments. Debt service coverage ratios less than 1.0 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt service coverage ratio greater than 1.0 times indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage loan and agricultural property loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a quality re-rating process, whereby the internal quality rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary quality rating system. The loan-to-value ratio is the most significant of several inputs used to establish the internal credit rating of a loan which in turn drives the allowance for losses. Other key factors considered in determining the internal credit rating include debt service coverage ratios, amortization, loan term, and estimated market value growth rate and volatility for the property type and region. See Note 3 for additional information related to the loan-to-value ratios and debt service coverage ratios related to the Company’s commercial mortgage and agricultural loan portfolios.

The allowance for losses includes a loan specific reserve for each impaired loan that has a specifically identified loss and a portfolio reserve for probable incurred but not specifically identified losses. For impaired commercial mortgage and other loans, the allowances for losses are determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or based upon the fair value of the collateral if the loan is collateral dependent. The portfolio reserves for probable incurred but not specifically identified losses in the commercial mortgage and agricultural loan portfolios consider the current credit composition of the portfolio based on an internal quality rating as described above. The portfolio reserves are determined using past loan experience, including historical credit migration, loss probability and loss severity factors by property type. These factors are reviewed and updated as appropriate.

The allowance for losses on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. “Realized investment gains (losses), net” includes changes in the allowance for losses. “Realized investment gains (losses), net” also includes gains and losses on sales, certain restructurings, and foreclosures.

When a commercial mortgage or other loan is deemed to be uncollectible, any specific valuation allowance associated with the loan is reversed and a direct write down of the carrying amount of the loan is made. The carrying amount of the loan is not adjusted for subsequent recoveries in value.

Commercial mortgage and other loans are occasionally restructured in a troubled debt restructuring. These restructurings generally include one or more of the following: full or partial payoffs outside of the original contract terms; changes to interest rates; extensions of maturity; or additions or modifications to covenants. Additionally, the Company may accept assets in full or partial satisfaction of the debt as part of a troubled debt restructuring. When restructurings occur, they are evaluated individually to determine whether the restructuring or modification constitutes a “troubled debt restructuring” as defined by authoritative accounting guidance. If the borrower is experiencing financial difficulty and the Company has granted a concession, the restructuring, including those that involve a partial payoff or the receipt of assets in full satisfaction of the debt is deemed to be a troubled debt restructuring. Based on the Company’s credit review process described above, these loans generally would have been deemed impaired prior to the troubled debt restructuring, and specific allowances for losses would have been established prior to the determination that a troubled debt restructuring has occurred.

B-9

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

In a troubled debt restructuring where the Company receives assets in full satisfaction of the debt, any specific valuation allowance is reversed and a direct write-down of the loan is recorded for the amount of the allowance, and any additional loss, net of recoveries, or any gain is recorded for the difference between the fair value of the assets received and the recorded investment in the loan. When assets are received in partial settlement, the same process is followed, and the remaining loan is evaluated prospectively for impairment based on the credit review process noted above. When a loan is restructured in a troubled debt restructuring, the impairment of the loan is remeasured using the modified terms and the loan’s original effective yield, and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loans in accordance with the income recognition policy noted above. Additionally, the loan continues to be subject to the credit review process noted above.

In situations where a loan has been restructured in a troubled debt restructuring and the loan has subsequently defaulted, this factor is considered when evaluating the loan for a specific allowance for losses in accordance with the credit review process noted above.

See Note 3 for additional information about commercial mortgage and other loans that have been restructured in a troubled debt restructuring.

Other invested assets consist of the Company’s non-coupon investments in Limited Partnerships and Limited Liability Companies ("LPs/LLCs") and derivative assets. LPs/LLCs interests are accounted for using either the equity method of accounting, or at fair value with changes in fair value reported in “Other income”. The Company’s income from investments in LPs/LLCs accounted for using the equity method is included in “Net investment income”. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three-month lag. For the investments reported at fair value with changes in fair value reported in current earnings, the associated realized and unrealized gains and losses are reported in “Other income”.

Realized investment gains (losses) are computed using the specific identification method. Realized investment gains and losses are generated from numerous sources, including the sales of fixed maturity securities, investments in joint ventures and limited partnerships and other types of investments, as well as adjustments to the cost basis of investments for net OTTI recognized in earnings. Realized investment gains and losses also reflect changes in the allowance for losses on commercial mortgage and other loans, and fair value changes on embedded derivatives and free-standing derivatives that do not qualify for hedge accounting treatment. See “Derivative Financial Instruments” below for additional information regarding the accounting for derivatives.

The Company’s available-for-sale securities with unrealized losses are reviewed quarterly to identify OTTI in value. In evaluating whether a decline in value is other-than-temporary, the Company considers several factors including, but not limited to the following: (1) the extent and the duration of the decline; (2) the reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); and (3) the financial condition of and near-term prospects of the issuer.

An OTTI is recognized in earnings for a debt security in an unrealized loss position when the Company either (1) has the intent to sell the debt security or (2) it is more likely than not will be required to sell the debt security before its anticipated recovery. For all debt securities in unrealized loss positions that do not meet either of these two criteria, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. The Company may use the estimated fair value of collateral as a proxy for the net present value if it believes that the security is dependent on the liquidation of collateral for recovery of its investment. If the net present value is less than the amortized cost of the investment, an OTTI is recognized.

When an OTTI of a debt security has occurred, the amount of the OTTI recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the debt security meets either of these two criteria, the OTTI recognized in earnings is equal to the entire difference between the security’s amortized cost basis and its fair value at the impairment measurement date. For OTTI of debt securities that do not meet these criteria, the net amount recognized in earnings is equal to the difference between the amortized cost of the debt security and its net present value calculated as described above. Any difference between the fair value and the net present value of the debt security at the impairment measurement date is recorded in OCI. Unrealized gains or losses on securities for which an OTTI has been recognized in earnings is tracked as a separate component of AOCI.

B-10

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The split between the amount of an OTTI recognized in OCI and the net amount recognized in earnings for debt securities is driven principally by assumptions regarding the amount and timing of projected cash flows. For mortgage-backed and asset-backed securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries which vary based on the asset type and geographic location, as well as the vintage year of the security. For structured securities, the payment priority within the tranche structure is also considered. For all other debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. The Company has developed these estimates using information based on its historical experience as well as using market observable data, such as industry analyst reports and forecasts, sector credit ratings and other data relevant to the collectability of a security, such as the general payment terms of the security and the security’s position within the capital structure of the issuer.

The new cost basis of an impaired security is not adjusted for subsequent increases in estimated fair value. In periods subsequent to the recognition of an OTTI, the impaired security is accounted for as if it had been purchased on the measurement date of the impairment. For debt securities, the discount (or reduced premium) based on the new cost basis may be accreted into net investment income in future periods, including increases in cash flows on a prospective basis. In certain cases where there are decreased cash flow expectations, the security is reviewed for further cash flow impairments.

Unrealized investment gains and losses are also considered in determining certain other balances, including DAC, DSI, certain future policy benefits, reinsurance recoverables, policyholders’ account balances and deferred tax assets or liabilities. These balances are adjusted, as applicable, for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. Each of these balances is discussed in greater detail below.

Cash and cash equivalents include cash on hand, amounts due from banks, certain money market investments, funds managed similar to regulated money market funds, other debt instruments with maturities of three months or less when purchased, other than cash equivalents that are included in "Fixed maturities, available-for-sale, at fair value,” and receivables related to securities purchased under agreements to resell (see also "Securities sold under agreements to purchase" below.) The Company also engages in overnight borrowing and lending of funds with Prudential Financial and affiliates which are considered cash and cash equivalents. These assets are generally carried at fair value or amortized cost which approximates fair value.

Deferred policy acquisition costs are directly related to the successful acquisition of new and renewal insurance and annuity business that have been deferred to the extent such costs are deemed recoverable from future profits. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully negotiated contracts. In each reporting period, capitalized DAC is amortized to “Amortization of DAC”, net of the accrual of imputed interest on DAC balances. DAC is subject to periodic recoverability testing. DAC, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI.

B-11

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

DAC related to universal and variable life products and fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. The Company uses a reversion to the mean approach for equities to derive future equity return assumptions. However, if the projected equity return calculated using this approach is greater than the maximum equity return assumption, the maximum equity return is utilized. Gross profits also include impacts from the embedded derivatives associated with certain of the optional living benefit features of variable annuity contracts, and index-linked crediting features of indexed universal life contracts and related hedging activities. In calculating gross profits, profits and losses related to contracts issued by the Company that are reported in affiliated legal entities other than the Company as a result of, for example, reinsurance agreements with those affiliated entities are also included. The Company is an indirect subsidiary of Prudential Financial, a United States Securities and Exchange Commission (the "SEC") registrant, and has extensive transactions and relationships with other subsidiaries of Prudential Financial, including reinsurance agreements, as described in Note 9. Incorporating all product-related profits and losses in gross profits, including those that are reported in affiliated legal entities, produces a DAC amortization pattern representative of the total economics of the products. Total gross profits include both actual gross profits and estimates of gross profits for future periods. The Company regularly evaluates and adjusts DAC balances with a corresponding charge or credit to current period earnings, representing a cumulative adjustment to all prior periods’ amortization, for the impact of actual gross profits and changes in the Company's projections of estimated future gross profits. Adjustments to DAC balances include: (i) annual review of assumptions that reflect the comprehensive review of the assumptions used in estimating gross profits for future periods, (ii) quarterly adjustments for current period experience (also referred to as “experience true-up” adjustments) that reflect the impact of differences between actual gross profits for a given period and the previously estimated expected gross profits for that period, and (iii) quarterly adjustments for market performance (also referred to as “experience unlocking”) that reflect the impact of changes to the Company's estimate of total gross profits to reflect actual fund performance and market conditions.

For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If policyholders surrender traditional life insurance policies in exchange for life insurance policies that do not have fixed and guaranteed terms, the Company immediately charges to expense the remaining unamortized DAC on the surrendered policies. For other internal replacement transactions, except those that involve the addition of a nonintegrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. See Note 6 for additional information regarding DAC.

Accrued investment income primarily includes accruals of interest and dividend income from investments that have been earned but not yet received.

Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates and third-party reinsurers. For additional information about these arrangements see Note 9.

Income taxes asset primarily represents the net deferred tax asset and the Company’s estimated taxes receivable for the current year and open audit years.

The Company is a member of the federal income tax return of Prudential Financial and primarily files separate company state and local tax returns. Pursuant to the tax allocation arrangement with Prudential Financial, total federal income tax expense is determined on a separate company basis. Members record tax benefits to the extent tax losses or tax credits are recognized in the consolidated federal tax provision.

Items required by tax regulations to be included in the tax return may differ from the items reflected in the financial statements. As a result, the effective tax rate reflected in the financial statements may be different than the actual rate applied on the tax return. Some of these differences are permanent such as expenses that are not deductible in the Company’s tax return, and some differences are temporary, reversing over time, such as valuation of insurance reserves. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in future years for which the Company has already recorded the tax benefit in the Company’s Statements of Operations. Deferred tax liabilities generally represent tax expense recognized in the Company’s financial statements for which payment has been deferred, or expenditures for which the Company has already taken a deduction in the Company’s tax returns but have not yet been recognized in the Company’s financial statements.

B-12

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. The application of U.S. GAAP requires the Company to evaluate the recoverability of the Company’s deferred tax assets and establish a valuation allowance if necessary to reduce the Company’s deferred tax assets to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. See Note 10 for a discussion of factors considered when evaluating the need for a valuation allowance.

In December of 2017, SEC staff issued "SAB 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act" ("SAB 118"), which allowed registrants to record provisional amounts during a 'measurement period' not to extend beyond one year. Under the relief provided by SAB 118, a company could recognize provisional amounts when it did not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the change in tax law. See Note 10 for a discussion of provisional amounts related to The United States Tax Cuts and Jobs Act of 2017 ("Tax Act of 2017") recorded in 2017 and adjustments to provisional amounts recorded in 2018.

U.S. GAAP prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that a company has taken or expects to take on tax returns. The application of this guidance is a two-step process. First, the Company determines whether it is more likely than not, based on the technical merits, that the tax position will be sustained upon examination. If a tax position does not meet the more likely than not recognition threshold, the benefit of that position is not recognized in the financial statements. The second step is measurement. The Company measures the tax position as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate resolution with a taxing authority that has full knowledge of all relevant information. This measurement considers the amounts and probabilities of the outcomes that could be realized upon ultimate settlement using the facts, circumstances, and information available at the reporting date.

The Company’s liability for income taxes includes a liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by the Internal Revenue Service (“IRS”) or other taxing jurisdictions. Audit periods remain open for review until the statute of limitations has passed. Generally, for tax years which produce net operating losses, capital losses or tax credit carryforwards (“tax attributes”), the statute of limitations does not close, to the extent of these tax attributes, until the expiration of the statute of limitations for the tax year in which they are fully utilized. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company classifies all interest and penalties related to tax uncertainties as income tax expense. See Note 10 for additional information regarding income taxes.

Effective January 1, 2018, the Company adopted ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Loss), which allowed a reclassification from AOCI to retained earnings for stranded effects resulting from the Tax Act of 2017. The Company elected to apply the ASU subsequent to recording the adoption impacts of ASU 2016-01 as described above. As a result, the Company reclassified stranded effects resulting from the Tax Act of 2017 by increasing AOCI and decreasing retained earnings, each by $5.9 million upon adoption on January 1, 2018. Stranded effects unrelated to the Tax Act of 2017 are generally released from AOCI when an entire portfolio of the type of item related to the stranded effect is liquidated, sold or extinguished (i.e., portfolio approach).

Other assets consist primarily of premiums due and deferred loss on reinsurance with affiliates.

Separate account assets represent segregated funds that are invested for certain contractholders and other customers. The assets consist primarily of equity securities, fixed maturities, and real estate related investments and are reported at fair value. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Investment risks associated with market value changes are borne by the contractholders, except to the extent of minimum guarantees made by the Company with respect to certain accounts. The investment income and realized investment gains or losses from separate accounts generally accrue to the contractholders and are not included in the Company’s results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income”. Asset administration fees charged to the accounts are included in “Asset administration fees”. See Note 8 for additional information regarding separate account arrangements with contractual guarantees. See also “Separate account liabilities” below.

Short-term investments primarily consist of highly liquid debt instruments with a maturity of twelve months or less and greater than three months when purchased. These investments are generally carried at fair value or amortized cost that approximates fair value and include certain money market investments, funds managed similar to regulated money market funds, short-term debt securities issued by government sponsored entities and other highly liquid debt instruments.

B-13

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

LIABILITIES

Policyholders’ account balances liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance, as applicable. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. See Note 7 for additional information regarding policyholders’ account balances.

Future policy benefits liability includes liabilities related to certain long-duration life and annuity contracts, which are discussed more fully in Note 8. These liabilities represent reserves for the guaranteed minimum death and optional living benefit features on our variable annuity products and no lapse guarantees for our variable and universal life products. The optional living benefits are primarily accounted for as embedded derivatives, with fair values calculated as the present value of future expected benefit payments to customers less the present value of assessed rider fees attributable to the embedded derivative feature. For additional information regarding the valuation of these optional living benefit features, see Note 5.

The Company’s liability for future policy benefits also includes reserves based on the present value of estimated future payments to or on behalf of policyholders related to contracts that have fixed and guaranteed terms, where the timing and amount of payment depends on policyholder mortality and maintenance expenses less the present value of future net premiums. Expected mortality is generally based on Company experience, industry data and/or other factors. Interest rate assumptions are based on factors such as market conditions and expected investment returns. Although mortality, morbidity and interest rate assumptions are “locked-in” upon the issuance of new insurance or annuity business with fixed and guaranteed terms, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by recognizing a premium deficiency. A premium deficiency exists when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. If a premium deficiency is recognized, the assumptions without a provision for the risk of adverse deviation as of the premium deficiency test date are locked-in and used in subsequent valuations. The net reserves continue to be subject to premium deficiency testing. Any adjustments to future policy benefit reserves related to net unrealized gains on securities classified as available-for-sale are included in AOCI. See Note 7 for additional information regarding future policy benefits.

Cash collateral for loaned securities represent liabilities to return cash proceeds from security lending transactions. Securities lending transactions are used primarily to earn spread income or to facilitate trading activity. As part of securities lending transactions, the Company transfers U.S. and foreign debt and equity securities, as well as U.S. government and government agency securities, and receives cash as collateral. Cash proceeds from securities lending transactions are primarily used to earn spread income, and are typically invested in cash equivalents, short-term investments or fixed maturities. Securities lending transactions are treated as financing arrangements and are recorded at the amount of cash received. The Company obtains collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. The Company monitors the market value of the securities loaned on a daily basis with additional collateral obtained as necessary. Substantially all of the Company’s securities lending transactions are with large brokerage firms and large banks. Income and expenses associated with securities lending transactions used to earn spread income are reported as “Net investment income.”

Securities sold under agreements to repurchase represent liabilities associated with securities repurchase agreements which are used primarily to earn spread income. As part of securities repurchase agreements, the Company transfers U.S. government and government agency securities to a third-party, and receives cash as collateral. For securities repurchase agreements, the cash received is typically invested in cash equivalents, short-term investments or fixed maturities. Receivables associated with securities purchased under agreements to resell are generally reflected as cash equivalents (see also "Cash and cash equivalents" above). As part of securities resale agreements, the Company invests cash and receives as collateral U.S. government securities or other debt securities.

Securities repurchase and resale agreements that satisfy certain criteria are treated as secured borrowing or secured lending arrangements. These agreements are carried at the amounts at which the securities will be subsequently resold or reacquired, as specified in the respective transactions. For securities purchased under agreements to resell, the Company’s policy is to take possession or control of the securities either directly or through a third-party custodian. These securities are valued daily and additional securities or cash collateral is received, or returned, when appropriate to protect against credit exposure. Securities to be resold are the same, or substantially the same, as the securities received. The majority of these transactions are with large brokerage firms and large banks. For securities sold under agreements to repurchase, the market value of the securities to be repurchased is monitored, and additional collateral is obtained where appropriate, to protect against credit exposure. The Company obtains collateral in an amount at least equal to 95% of the fair value of the securities sold. Securities to be repurchased are the same, or substantially the same, as those sold. The majority of these transactions are with highly rated money market funds. Income and expenses related to these transactions executed within the insurance companies used to earn spread income are reported as “Net investment income.”

B-14

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Other liabilities consist primarily of accrued expenses, reinsurance payables and technical overdrafts.

Separate account liabilities primarily represent the contractholders’ account balance in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. See also “Separate account assets” above.

Short-term and long-term debt liabilities are primarily carried at an amount equal to unpaid principal balance, net of unamortized discount or premium and debt issue costs. Original-issue discount or premium and debt-issue costs are recognized as a component of interest expense over the period the debt is expected to be outstanding, using the interest method of amortization. Interest expense is generally presented within “General, administrative and other expenses” in the Company’s Statements of Operations. Short-term debt is debt coming due in the next twelve months, including that portion of debt otherwise classified as long-term. The short-term debt caption may exclude short-term debt items for which the Company has the intent and ability to refinance on a long-term basis in the near term. See Note 13 for additional information regarding short-term and long-term debt.

Commitments and contingent liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. Management evaluates whether there are incremental legal or other costs directly associated with the ultimate resolution of the matter that are reasonably estimable and, if so, they are included in the accrual. These accruals are generally reported in “Other liabilities”.

REVENUES AND BENEFITS AND EXPENSES

Insurance Revenue and Expense Recognition

Premiums from individual life products, other than universal and variable life contracts, are recognized when due. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium valuation methodology.

Premiums from single premium immediate annuities with life contingencies are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium is generally deferred and recognized into revenue based on expected future benefit payments. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium methodology.

Certain individual annuity contracts provide the contractholder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount. These benefits are accounted for as insurance contracts. The Company also provides contracts with certain living benefits which are considered embedded derivatives. See Note 5 for information regarding the valuation of these embedded derivatives and Note 8 for additional information regarding these contracts.

Amounts received as payment for universal or variable individual life contracts, deferred fixed or variable annuities and other contracts without life contingencies are reported as deposits to “Policyholders’ account balances” and/or “Separate account liabilities.” Revenues from these contracts are reflected in “Policy charges and fee income” consisting primarily of fees assessed during the period against the policyholders’ account balances for mortality and other benefit charges, policy administration charges and surrender charges. In addition to fees, the Company earns investment income from the investment of deposits in the Company’s general account portfolio. Fees assessed that represent compensation to the Company for services to be provided in future periods and certain other fees are generally deferred and amortized into revenue over the life of the related contracts in proportion to estimated gross profits. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration, interest credited to policyholders’ account balances and amortization of DAC and DSI.

Policyholders’ account balances also include amounts representing the fair value of embedded derivative instruments associated with the index-linked features of certain universal life products. For additional information regarding the valuation of these embedded derivatives, see Note 5.

Asset administration fees primarily include asset administration fee income received on contractholders’ account balances invested in The Prudential Series Funds, which are a portfolio of mutual fund investments related to the Company’s separate account products. Also, the Company receives fee income calculated on contractholder separate account balances invested in the Advanced Series Trust ("AST") (see Note 13). In addition, the Company receives fees from contractholders’ account balances invested in funds managed by companies other than affiliates of Prudential Insurance. Asset administration fees are recognized as income when earned.

Other income includes realized and unrealized gains or losses from investments reported as “Fixed maturities, trading, at fair value”, “Equity securities, at fair value”, and “Other invested assets” that are measured at fair value.

B-15

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

OTHER ACCOUNTING POLICIES

Derivative Financial Instruments

Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns, and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk ("NPR") used in valuation models. Derivative financial instruments generally used by the Company include swaps, futures, forwards and options and may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties, while others are bilateral contracts between two counterparties. Derivative positions are carried at fair value, generally by obtaining quoted market prices or through the use of valuation models.

Derivatives are used to manage the interest rate and currency characteristics of assets or liabilities. Additionally, derivatives may be used to seek to reduce exposure to interest rate, credit, foreign currency and equity risks associated with assets held or expected to be purchased or sold, and liabilities incurred or expected to be incurred. As discussed in detail below and in Note 4, all realized and unrealized changes in fair value of derivatives are recorded in current earnings, with the exception of cash flow hedges. Cash flows from derivatives are reported in the operating, investing or financing activities sections in the Statements of Cash Flows based on the nature and purpose of the derivative.

Derivatives are recorded either as assets, within "Other invested assets", or as liabilities, within “Payables to parent and affiliates”, except for embedded derivatives which are recorded with the associated host contract. The Company nets the fair value of all derivative financial instruments with counterparties for which a master netting arrangement has been executed.

The Company designates derivatives as either (1) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge); or (2) a derivative that does not qualify for hedge accounting.

To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. Effectiveness of the hedge is formally assessed at inception and throughout the life of the hedging relationship.

The Company formally documents at inception all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives designated as cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions.

When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in its fair value are recorded in AOCI until earnings are affected by the variability of cash flows being hedged (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). At that time, the related portion of deferred gains or losses on the derivative instrument is reclassified and reported in the Statements of Operations line item associated with the hedged item.

If it is determined that a derivative no longer qualifies as an effective cash flow hedge or management removes the hedge designation, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net”. The component of AOCI related to discontinued cash flow hedges is reclassified to the Statements of Operations line associated with the hedged cash flows consistent with the earnings impact of the original hedged cash flows.

When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, or because it is probable that the forecasted transaction will not occur by the end of the specified time period, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net”. Any asset or liability that was recorded pursuant to recognition of the firm commitment is removed from the balance sheet and recognized currently in “Realized investment gains (losses), net”. Gains and losses that were in AOCI pursuant to the hedge of a forecasted transaction are recognized immediately in “Realized investment gains (losses), net”.

If a derivative does not qualify for hedge accounting, all changes in its fair value, including net receipts and payments, are included in “Realized investment gains (losses), net” without considering changes in the fair value of the economically associated assets or liabilities.

B-16

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The Company is a party to financial instruments that contain derivative instruments that are “embedded” in the financial instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that (1) the embedded instrument possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded instrument qualifies as an embedded derivative that is separated from the host contract, carried at fair value, and changes in its fair value are included in “Realized investment gains (losses), net.” For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company may elect to carry the entire instrument at fair value and report it within “Fixed maturities, trading, at fair value" or "Equity securities, at fair value".

The Company sells variable annuity contracts that include optional living benefit features that may be treated from an accounting perspective as embedded derivatives. The Company has reinsurance agreements to transfer the risks related to certain of these benefit features to affiliates, Pruco Re and Pruco Life through March 31, 2016. Effective April 1, 2016, the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to Pruco Re and Pruco Life. In addition, the Company reinsured the variable annuity base contracts, along with the living benefit guarantees, to Prudential Insurance under a coinsurance and modified coinsurance agreement. See Note 1 for additional information. The embedded derivatives related to the living benefit features and the related reinsurance agreements are carried at fair value and included in “Future policy benefits” and “Reinsurance recoverables”. Changes in the fair value are determined using valuation models as described in Note 5 and are recorded in “Realized investment gains (losses), net”.

Accounting for Certain Reinsurance Contracts in the Individual Life Business

In 2017, the Company recognized a pre-tax charge of $2 million, reflecting a change in estimate of reinsurance cash flows associated with universal life products as well as a change in method of reflecting these cash flows in the financial statements. Under the previous method of accounting, with the exception of recoveries pertaining to no lapse guarantees, reinsurance cash flows (e.g., premiums and recoveries) were generally recognized as they occurred. Under the new method, the expected reinsurance cash flows are recognized more ratably over the life of the underlying reinsured policies. In conjunction with this change, the way in which reinsurance is reflected in estimated gross profits used for the amortization of unearned revenue reserves and DAC was also revised. The change represents a change in accounting estimate effected by a change in accounting principle and was included within the Company’s annual reviews and update of assumptions and other refinements. The change in accounting estimate reflected insights gained from revised cash flow modeling enabled by a systems conversion, which prompted the change to a preferable accounting method. This new methodology is viewed as preferable as the Company believes it better reflects the economics of reinsurance transactions by aligning the results of reinsurance activity more closely to the underlying direct insurance activity and by better reflecting the profit pattern of this business for purposes of the amortization of the balances noted above.

The impacts of the pre-tax charge of $2 million in the second quarter of 2017 were as follows:

	Impact of Change in Accounting for Certain Reinsurance Contracts(1)
	(in millions)
Decrease in Policy charges and fee income	$	(10	)
Decrease in Policyholders' benefits	10
Increase in Amortization of deferred policy acquisition costs	(2		)
Pre-tax charge to income	$	(2	)

(1) The corresponding impacts to the Statement of Financial Position were a $13 million increase in "Other liabilities", a $9 million increase in "Reinsurance recoverables", a $4 million decrease in "Policyholders’ account balances" and a $2 million decrease in "Deferred policy acquisition costs".

B-17

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

RECENT ACCOUNTING PRONOUNCEMENTS

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB Accounting Standards Codification ("ASC"). The Company considers the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of December 31, 2019, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material.

ASU adopted during the year ended December 31, 2019

Standard	Description	Effective date and method of adoption	Effect on the financial statements or other significant matters
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities	This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date.	January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	Adoption of the ASU did not have a significant impact on the Financial Statements and Notes to the Financial Statements. The impact of the cumulative-effect adjustment to retained earnings was immaterial.
ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities	This ASU makes targeted changes to the existing hedge accounting model to better portray the economics of an entity’s risk management activities and to simplify the use of hedge accounting. The ASU eliminates separate measurement and recording of hedge ineffectiveness. It requires entities to present the earnings effect of the hedging instrument in the same income statement line item in which the hedged item is reported and also requires expanded disclosures.	January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	Adoption of the ASU did not have a significant impact on the Financial Statements and Notes to the Financial Statements. The impact of the cumulative-effect adjustment to retained earnings and AOCI related to ineffectiveness of the hedge instruments outstanding at the date of the adoption was immaterial. See Note 4 for additional required disclosures.

ASU issued but not yet adopted as of December 31, 2019 — ASU 2018-12

ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018 and is expected to have a significant impact on the Company's Financial Statements and Notes to the Financial Statements. In October 2019, the FASB issued ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date to affirm its decision to defer the effective date of ASU 2018-12 to January 1, 2022 (with early adoption permitted), representing a one year extension from the original effective date of January 1, 2021. This ASU will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. Outlined below are four key areas of change, although there are other less significant changes not noted below. In addition to the impacts to the balance sheet upon adoption, the Company also expects an impact to how earnings emerge thereafter.

B-18

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

ASU 2018-12 Amended Topic	Description	Method of adoption	Effect on the financial statements or other significant matters
Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products	Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Statements of Operations.	An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) a full retrospective transition method.	The options for method of adoption and the impacts of such methods are under assessment.
Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products	Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield and will be required to be updated each quarter with the impact recorded through OCI.	As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI.	Upon adoption, under either transition method, there will be an adjustment to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between the discount rate locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed.

B-19

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Amortization of DAC and other balances	Requires DAC and other balances, such as unearned revenue reserves and DSI, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability.	An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its liability for future policy benefits, as described above, it is required to also use a retrospective transition method for DAC and other balances.	The options for method of adoption and the impacts of such methods are under assessment. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI.
Market Risk Benefits	Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value, and record market risk benefit assets and liabilities separately on the Statements of Financial Position. Changes  in fair value of market risk benefits are recorded in net income, except for the portion of the change that is attributable to changes in an entity’s non-performance risk ("NPR"), which is recognized in OCI.	An entity shall adopt the guidance for market risk benefits using the retrospective transition method which includes a cumulative-effect adjustment on the balance sheet as of the earliest period presented. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the balance of the market risk benefits upon adoption.	Upon adoption, the Company expects an impact to retained earnings for the difference between the fair value and carrying value of benefits not currently measured at fair value (e.g., guaranteed minimum death benefits ("GMDB") on variable annuities) and an impact from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The magnitude of such adjustments is currently being assessed.

B-20

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Other ASUs issued but not yet adopted as of December 31, 2019

Standard	Description	Effective date and method of adoption	Effect on the financial statements or other significant matters
ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current OTTI standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities.	January 1, 2020 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. However, prospective application is required for purchased credit deteriorated assets previously accounted for under ASC 310-30 and for debt securities for which an OTTI was recognized prior to the date of adoption. Early adoption was permitted beginning January 1, 2019.	Adoption of this guidance will result in 1) the recognition of an allowance for credit losses based on the current expected credit loss model on financial assets carried at amortized cost and certain off-balance sheet credit exposures; and 2) related adjustments to retained earnings. We expect the cumulative impact of the adoption to retained earnings, primarily attributable to the reserves for commercial mortgage and other loans, to be immaterial.

B-21

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

3. INVESTMENTS

Fixed Maturity Securities

The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated:

	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	14,983	$	1,032	$	0	$	16,015	$	0
Obligations of U.S. states and their political subdivisions	123,505		10,172		0		133,677		0
Foreign government bonds	70,287		6,993		0		77,280		0
U.S. public corporate securities	627,880		70,167		527		697,520		0
U.S. private corporate securities	222,952		10,416		153		233,215		0
Foreign public corporate securities	53,115		4,958		80		57,993		0
Foreign private corporate securities	161,597		4,505		2,210		163,892		0
Asset-backed securities(1)	17,816		753		27		18,542		0
Commercial mortgage-backed securities	141,593		5,796		0		147,389		0
Residential mortgage-backed securities(2)	4,068		509		4		4,573		(50		)
Total fixed maturities, available-for-sale	$	1,437,796	$	115,301	$	3,001	$	1,550,096	$	(50	)

(1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, and education loans.

(2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.1 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	15,388	$	940	$	0	$	16,328	$	0
Obligations of U.S. states and their political subdivisions	121,031		1,830		555		122,306		0
Foreign government bonds	68,720		96		3,522		65,294		0
U.S. public corporate securities	486,872		8,798		14,945		480,725		0
U.S. private corporate securities	231,953		1,935		7,522		226,366		0
Foreign public corporate securities	49,684		476		1,945		48,215		0
Foreign private corporate securities	149,611		736		5,584		144,763		0
Asset-backed securities(1)	22,352		1,040		41		23,351		(40		)
Commercial mortgage-backed securities	147,464		915		3,173		145,206		0
Residential mortgage-backed securities(2)	4,817		460		7		5,270		(66		)
Total fixed maturities, available-for-sale	$	1,297,892	$	17,226	$	37,294	$	1,277,824	$	(106	)

(1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, education loans and other asset types.

(2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.2 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

B-22

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated:

	December 31, 2019
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses
	(in thousands)
Fixed maturities, available-for-sale:
Obligations of U.S. states and their political subdivisions	$	0	$	0	$	0	$	0	$	0	$	0
Foreign government bonds	0		0		400		0		400		0
U.S. public corporate securities	16,892		190		1,073		337		17,965		527
U.S. private corporate securities	7,350		140		4,757		13		12,107		153
Foreign public corporate securities	2,054		23		2,427		57		4,481		80
Foreign private corporate securities	10,659		281		27,048		1,929		37,707		2,210
Asset-backed securities	1,488		12		2,985		15		4,473		27
Commercial mortgage-backed securities	0		0		0		0		0		0
Residential mortgage-backed securities	91		4		0		0		91		4
Total fixed maturities, available-for-sale	$	38,534	$	650	$	38,690	$	2,351	$	77,224	$	3,001
	December 31, 2018
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in thousands)
Fixed maturities, available-for-sale:
Obligations of U.S. states and their political subdivisions	$	36,191	$	356	$	7,585	$	199	$	43,776	$	555
Foreign government bonds	28,009		1,002		30,924		2,520		58,933		3,522
U.S. public corporate securities	182,958		7,696		124,396		7,249		307,354		14,945
U.S. private corporate securities	57,562		4,549		106,828		2,973		164,390		7,522
Foreign public corporate securities	20,062		695		16,791		1,250		36,853		1,945
Foreign private corporate securities	97,538		4,321		14,107		1,263		111,645		5,584
Asset-backed securities	7,762		41		0		0		7,762		41
Commercial mortgage-backed securities	26,453		163		61,338		3,010		87,791		3,173
Residential mortgage-backed securities	535		4		243		3		778		7
Total fixed maturities, available-for-sale	$	457,070	$	18,827	$	362,212	$	18,467	$	819,282	$	37,294

B-23

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

As of December 31, 2019 and 2018, the gross unrealized losses on fixed maturity securities were composed of $2.4 million and $31.0 million, respectively, related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $0.6 million and $6.3 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of December 31, 2019, the $2.4 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the finance, consumer non-cyclical and energy sectors. As of December 31, 2018, the $18.5 million of gross unrealized losses of twelve months or more were concentrated in commercial mortgage-backed securities and in the Company’s corporate securities within the finance, utility and consumer non-cyclical sectors. In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for OTTI for these fixed maturity securities was not warranted at either December 31, 2019 or 2018. These conclusions were based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to general credit spread widening, increases in interest rates and foreign currency exchange rate movements. As of December 31, 2019, the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis.

The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated:

	December 31, 2019
	Amortized Cost		Fair Value
	(in thousands)
Fixed maturities, available-for-sale:
Due in one year or less	$	32,713	$	33,124
Due after one year through five years	180,902		184,943
Due after five years through ten years	248,373		256,672
Due after ten years	812,331		904,853
Asset-backed securities	17,816		18,542
Commercial mortgage-backed securities	141,593		147,389
Residential mortgage-backed securities	4,068		4,573
Total fixed maturities, available-for-sale	$	1,437,796	$	1,550,096

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they do not have a single maturity date.

B-24

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated:

	Years Ended December 31,
	2019			2018			2017
	(in thousands)
Fixed maturities, available-for-sale:
Proceeds from sales(1)	$	12,801		$	3,530		$	103,740
Proceeds from maturities/prepayments	59,294			70,152			87,544
Gross investment gains from sales and maturities	164			172			88
Gross investment losses from sales and maturities	(709		)	(219		)	(989		)
OTTI recognized in earnings(2)	(5,474		)	(125		)	(80		)

(1) Includes $0.0 million, $0.0 million and $0.0 million of non-cash related proceeds due to the timing of trade settlements for the years ended December 31, 2019, 2018 and 2017, respectively.

(2) Excludes the portion of OTTI amounts remaining in OCI, representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment.

The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated:

	Years Ended December 31,
	2019			2018
	(in thousands)
Credit loss impairments:
Balance in OCI, beginning of period	$	179		$	561
New credit loss impairments	3,021			0
Increases due to the passage of time on previously recorded credit losses	22			30
Reductions for securities which matured, paid down, prepaid or were sold during the period	(19		)	(412		)
Reductions for securities impaired to fair value during the period(1)	(3,040		)	0
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected	(74		)	0
Balance in OCI, end of period	$	89		$	179

(1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.

Equity Securities

The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income,” was $0.6 million and $(1.0) million during the years ended December 31, 2019 and 2018, respectively. The net change in unrealized gains (losses) from equity securities, still held at period end, recorded within "Other comprehensive income (loss)," was $0.2 million during the year ended December 31, 2017.

B-25

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Commercial Mortgage and Other Loans

The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated:

	December 31, 2019					December 31, 2018
	Amount (in thousands)			% of Total		Amount (in thousands)			% of Total
Commercial mortgage and agricultural property loans by property type:
Apartments/Multi-Family	$	47,568		33.2	%	$	41,775		35.2	%
Hospitality	14,266			10.0		9,988			8.4
Industrial	18,907			13.2		12,264			10.3
Office	24,035			16.7		16,930			14.3
Other	18,853			13.2		19,024			16.0
Retail	16,174			11.3		13,838			11.6
Total commercial mortgage loans	139,803			97.6		113,819			95.8
Agricultural property loans	3,460			2.4		4,968			4.2
Total commercial mortgage and agricultural property loans by property type	143,263			100.0	%	118,787			100.0	%
Allowance for credit losses	(165		)			(151		)
Total commercial mortgage and other loans	$	143,098				$	118,636

As of December 31, 2019, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in New York (13%), Illinois (13%) and Texas (11%)) and included loans secured by properties in Europe (10%).

B-26

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated:

	Commercial Mortgage Loans			Agricultural Property Loans			Total
	(in thousands)
Balance at December 31, 2016	$	207		$	2		$	209
Addition to (release of) allowance for credit losses	(28		)	(1		)	(29		)
Charge-offs, net of recoveries	0			0			0
Balance at December 31, 2017	$	179		$	1		$	180
Addition to (release of) allowance for credit losses	(29		)	0			(29		)
Charge-offs, net of recoveries	0			0			0
Balance at December 31, 2018	$	150		$	1		$	151
Addition to (release of) allowance for credit losses	14			0			14
Charge-offs, net of recoveries	0			0			0
Balance at December 31, 2019	$	164		$	1		$	165

The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated:

	December 31, 2019
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	164		1		165
Total ending balance(1)	$	164	$	1	$	165
Recorded investment(2):
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	139,803		3,460		143,263
Total ending balance(1)	$	139,803	$	3,460	$	143,263

(1) As of December 31, 2019, there were no loans acquired with deteriorated credit quality.

(2) Recorded investment reflects the carrying value gross of related allowance.

	December 31, 2018
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	150		1		151
Total ending balance(1)	$	150	$	1	$	151
Recorded investment(2):
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	113,819		4,968		118,787
Total ending balance(1)	$	113,819	$	4,968	$	118,787

(1) As of December 31, 2018, there were no loans acquired with deteriorated credit quality.

(2) Recorded investment reflects the carrying value gross of related allowance.

B-27

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans based upon the recorded investment gross of allowance for credit losses, as of the dates indicated:

	December 31, 2019
	Debt Service Coverage Ratio
	> 1.2X		1.0X to <1.2X		< 1.0X		Total
	(in thousands)
Loan-to-Value Ratio:
0%-59.99%	$	93,315	$	1,131	$	0	$	94,446
60%-69.99%	42,726		1,877		0		44,603
70%-79.99%	2,695		1,519		0		4,214
80% or greater	0		0		0		0
Total commercial mortgage and agricultural property loans	$	138,736	$	4,527	$	0	$	143,263

	December 31, 2018
	Debt Service Coverage Ratio
	> 1.2X		1.0X to <1.2X		< 1.0X		Total
	(in thousands)
Loan-to-Value Ratio:
0%-59.99%	$	88,427	$	1,210	$	0	$	89,637
60%-69.99%	19,975		5,513		0		25,488
70%-79.99%	2,102		1,560		0		3,662
80% or greater	0		0		0		0
Total commercial mortgage and agricultural property loans	$	110,504	$	8,283	$	0	$	118,787

The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated:

	December 31, 2019
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Loans		Non-Accrual Status(2)
	(in thousands)
Commercial mortgage loans	$	139,803	$	0	$	0	$	0	$	139,803	$	0
Agricultural property loans	3,460		0		0		0		3,460		0
Total	$	143,263	$	0	$	0	$	0	$	143,263	$	0

(1) As of December 31, 2019, there were no loans in this category accruing interest.

(2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2.

B-28

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

	December 31, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Loans		Non-Accrual Status(2)
	(in thousands)
Commercial mortgage loans	$	113,819	$	0	$	0	$	0	$	113,819	$	0
Agricultural property loans	4,968		0		0		0		4,968		0
Total	$	118,787	$	0	$	0	$	0	$	118,787	$	0

(1) As of December 31, 2018, there were no loans in this category accruing interest.

(2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2.

Other Invested Assets

The following table sets forth the composition of “Other invested assets,” as of the dates indicated: 

	December 31,
	2019		2018
	(in thousands)
Company's investment in separate accounts	$	3,418	$	3,008
LPs/LLCs:
Equity method:
Private equity	26,609		15,081
Hedge funds	30,629		28,266
Real estate-related	4,154		1,385
Subtotal equity method	61,392		44,732
Fair value:
Private equity	774		920
Hedge funds	78		105
Real estate-related	2,490		1,856
Subtotal fair value	3,342		2,881
Total LPs/LLCs	64,734		47,613
Derivative instruments	21,384		7,792
Total other invested assets	$	89,536	$	58,413

As of both December 31, 2019 and 2018, the Company had no significant equity method investments.

B-29

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Net Investment Income

The following table sets forth “Net investment income” by investment type, for the periods indicated:

	Years Ended December 31,
	2019			2018			2017
	(in thousands)
Fixed maturities, available-for-sale	$	57,518		$	52,235		$	48,232
Fixed maturities, trading	376			322			306
Equity securities, at fair value	363			364			363
Commercial mortgage and other loans	5,130			5,006			6,088
Policy loans	11,458			11,071			10,618
Short-term investments and cash equivalents	997			655			457
Other invested assets	4,459			1,869			4,224
Gross investment income	80,301			71,522			70,288
Less: investment expenses	(3,513		)	(3,711		)	(3,637		)
Net investment income	$	76,788		$	67,811		$	66,651

The carrying value of non-income producing assets included less than $1 million in available-for-sale fixed maturities, as of December 31, 2019. Non-income producing assets represent investments that had not produced income for the twelve months preceding December 31, 2019.

B-30

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Realized Investment Gains (Losses), Net 

The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: 

	Years Ended December 31,
	2019			2018			2017
	(in thousands)
Fixed maturities(1)	$	(6,019	)	$	(172	)	$	(981	)
Equity securities(2)	0			0			(1		)
Commercial mortgage and other loans	(14		)	29			29
LPs/LLCs	(519		)	49			16
Derivatives	(10,839		)	(9,178		)	(13,098		)
Short-term investments and cash equivalents	3			(1		)	(3		)
Realized investment gains (losses), net	$	(17,388	)	$	(9,273	)	$	(14,038	)

(1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading.

(2) Effective January 1, 2018, realized gains (losses) on equity securities are recorded within “Other income.”

Net Unrealized Gains (Losses) on Investments within AOCI

The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated:

	December 31,
	2019		2018			2017
	(in thousands)
Fixed maturity securities, available-for-sale—with OTTI	$	51	$	143		$	162
Fixed maturity securities, available-for-sale—all other	112,249		(20,211		)	56,909
Equity securities, available-for-sale(1)	0		0			270
Derivatives designated as cash flow hedges(2)	3,193		1,793			(5,036		)
Affiliated notes	480		509			682
Other investments	66		145			(288		)
Net unrealized gains (losses) on investments	$	116,039	$	(17,621	)	$	52,699

(1) Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded within “Other income.”

(2) For more information on cash flow hedges, see Note 4.

Repurchase Agreements and Securities Lending

In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of both December 31, 2019 and 2018, the Company had no repurchase agreements.

B-31

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated:

	December 31, 2019						December 31, 2018
	Remaining Contractual Maturities of the Agreements						Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Up to 30 Days		Total		Overnight & Continuous		Up to 30 Days		Total
	(in thousands)
U.S. public corporate securities	0		0		0		437		0		437
Foreign public corporate securities	2,481		0		2,481		2,265		0		2,265
Total cash collateral for loaned securities(1)	$	2,481	$	0	$	2,481	$	2,702	$	0	$	2,702

(1) The Company did not have agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated.

Securities Pledged, Restricted Assets and Special Deposits

The Company pledges as collateral investment securities it owns to unaffiliated parties through certain transactions, including securities lending, securities sold under agreements to repurchase, collateralized borrowings and postings of collateral with derivative counterparties. The following table sets forth the carrying value of investments pledged to third parties and the carrying amount of the associated liabilities supported by the pledged collateral, as of the dates indicated: 

	December 31,
	2019		2018
	(in thousands)
Pledged collateral:
Fixed maturity securities, available-for-sale	$	2,427	$	2,640
Total securities pledged	$	2,427	$	2,640
Liabilities supported by the pledged collateral:
Cash collateral for loaned securities	$	2,481	$	2,702
Total liabilities supported by the pledged collateral	$	2,481	$	2,702

In the normal course of its business activities, the Company accepts collateral that can be sold or repledged. The primary sources of this collateral are securities purchased under agreements to resell. As of December 31, 2019 and 2018, the fair value of this collateral was $0 million and $10 million, respectively, none of which had either been sold or repledged.

As of December 31, 2019 and 2018, there were available-for-sale fixed maturities of $0.5 million and $0.5 million, respectively, on deposit with governmental authorities or trustees as required by certain insurance laws.

4. DERIVATIVE INSTRUMENTS

Types of Derivative Instruments and Derivative Strategies

Interest Rate Contracts

Interest rate swaps are used by the Company to reduce risks from changes in interest rates, manage interest rate exposures arising from mismatches between assets and liabilities and to hedge against changes in their values it owns or anticipates acquiring or selling.

Swaps may be attributed to specific assets or liabilities or to a portfolio of assets or liabilities. Under interest rate swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed upon notional principal amount.

B-32

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Equity Contracts

Equity options are used by the Company to manage its exposure to the equity markets which impacts the value of assets and liabilities it owns or anticipates acquiring or selling.

Equity index options are contracts which will settle in cash based on differentials in the underlying indices at the time of exercise and the strike price. The Company uses combinations of purchases and sales of equity index options to hedge the effects of adverse changes in equity indices within a predetermined range.

Foreign Exchange Contracts

Currency derivatives, including currency swaps and forwards, are used by the Company to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell.

Under currency forwards, the Company agrees with counterparties to deliver a specified amount of an identified currency at a specified future date. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company executes forward sales of the hedged currency in exchange for U.S. dollars at a specified exchange rate. The maturities of these forwards correspond with the future periods in which the non-U.S. dollar-denominated earnings are expected to be generated.

Under currency swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between one currency and another at an exchange rate and calculated by reference to an agreed principal amount. Generally, the principal amount of each currency is exchanged at the beginning and termination of the currency swap by each party.

Credit Contracts

The Company writes credit protection to gain exposure similar to investment in public fixed maturity cash instruments. With these credit derivatives the Company sells credit protection on a single name reference, or certain index reference, and in return receives a quarterly premium. This premium or credit spread generally corresponds to the difference between the yield on the referenced name (or an index’s referenced names) public fixed maturity cash instruments and swap rates, at the time the agreement is executed. If there is an event of default by the referenced name or one of the referenced names in the index, as defined by the agreement, then the Company is obligated to pay the referenced amount of the contract to the counterparty and receive in return the referenced defaulted security or similar security or (in the case of a credit default index) pay the referenced amount less the auction recovery rate.

In addition to selling credit protection, the Company purchases credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio.

Embedded Derivatives

The Company sells certain products (for example, variable annuities and index-linked universal life), which may include guaranteed benefit features that are accounted for as embedded derivatives. Related to certain of these derivatives, the Company has entered into reinsurance agreements (previously reinsured to Pruco Re and Pruco Life) with an affiliate, Prudential Insurance, effective April 1, 2016. See Note 1 for additional information on the reinsurance agreements.

These embedded derivatives and reinsurance agreements, also accounted for as derivatives, are carried at fair value and marked to market through “Realized investment gains (losses), net” based on the change in value of the underlying contractual guarantees, which are determined using valuation models, as described in Note 5.

B-33

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Primary Risks Managed by Derivatives

The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account the netting effects of master netting agreements and cash collateral.

	December 31, 2019							December 31, 2018
Primary Underlying Risk/Instrument Type	Gross Notional		Fair Value					Gross Notional		Fair Value
			Assets		Liabilities					Assets		Liabilities
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Currency/Interest Rate
Foreign Currency Swaps	$	131,212	$	4,653	$	(1,504	)	$	119,611	$	3,787	$	(2,271	)
Total Derivatives Designated as Hedge Accounting Instruments:	$	131,212	$	4,653	$	(1,504	)	$	119,611	$	3,787	$	(2,271	)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate
Interest Rate Swaps	$	32,075	$	3,005	$	(5	)	$	59,075	$	2,360	$	0
Credit
Credit Default Swaps	0		0		0			756		0		(9		)
Currency/Interest Rate
Foreign Currency Swaps	33,224		2,691		(579		)	16,815		2,364		(111		)
Foreign Currency
Foreign Currency Forwards	1,858		0		(36		)	1,460		21		0
Equity
Equity Options	379,350		24,064		(10,919		)	281,400		2,616		(749		)
Total Derivatives Not Qualifying as Hedge Accounting Instruments	$	446,507	$	29,760	$	(11,539	)	$	359,506	$	7,361	$	(869	)
Total Derivatives (1)(2)	$	577,719	$	34,413	$	(13,043	)	$	479,117	$	11,148	$	(3,140	)

(1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $761 million and $489 million as of December 31, 2019 and 2018, respectively included in “Future policy benefits” and $134 million and $2 million as of December 31, 2019 and 2018, respectively included in “Policyholders’ account balances". The fair value of the related reinsurance, included in "Reinsurance recoverables" or "Other liabilities" was an asset of $761 million and $489 million as of December 31, 2019 and 2018, respectively.

(2) Recorded in "Other invested assets" and "Other liabilities" on the Statements of Financial Position.

B-34

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Offsetting Assets and Liabilities

The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements, that are offset in the Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Statements of Financial Position. 

	December 31, 2019
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statement of Financial Position			Net Amounts Presented in the Statement of Financial Position		Financial Instruments/ Collateral(1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives(1)	$	34,413	$	(13,029	)	$	21,384	$	(21,384	)	$	0
Securities purchased under agreements to resell	0		0			0		0			0
Total Assets	$	34,413	$	(13,029	)	$	21,384	$	(21,384	)	$	0
Offsetting of Financial Liabilities:
Derivatives(1)	$	13,043	$	(13,043	)	$	0	$	0		$	0
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	13,043	$	(13,043	)	$	0	$	0		$	0

	December 31, 2018
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statement of Financial Position			Net Amounts Presented in the Statement of Financial Position		Financial Instruments/ Collateral(1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives(1)	$	11,148	$	(3,355	)	$	7,793	$	(7,307	)	$	486
Securities purchased under agreements to resell	10,000		0			10,000		(10,000		)	0
Total Assets	$	21,148	$	(3,355	)	$	17,793	$	(17,307	)	$	486
Offsetting of Financial Liabilities:
Derivatives(1)	$	3,140	$	(3,140	)	$	0	$	0		$	0
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	3,140	$	(3,140	)	$	0	$	0		$	0

(1) Amounts exclude the excess of collateral received/pledged from/to the counterparty.

For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below and Note 13. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Financial Statements.

B-35

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Cash Flow Hedges

The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit and equity derivatives in any of its cash flow hedge accounting relationships.

The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. 

	Year Ended December 31, 2019
	Realized Investment Gains (Losses)			Net Investment Income		Other Income			AOCI(1)
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	569		$	1,693	$	(418	)	$	1,391
Total cash flow hedges	569			1,693		(418		)	1,391
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	1,393			0		0			0
Currency	38			0		0			0
Currency/Interest Rate	216			0		(9		)	0
Credit	(1		)	0		0			0
Equity	10,544			0		0			0
Embedded Derivatives	(23,598		)	0		0			0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	(11,408		)	0		(9		)	0
Total	$	(10,839	)	$	1,693	$	(427	)	$	1,391

	Year Ended December 31, 2018(2)
	Realized Investment Gains (Losses)			Net Investment Income		Other Income		AOCI(1)
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	(305	)	$	1,360	$	638	$	6,829
Total cash flow hedges	(305		)	1,360		638		6,829
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(583		)	0		0		0
Currency	98			0		0		0
Currency/Interest Rate	1,682			0		13		0
Credit	(2		)	0		0		0
Equity	(3,793		)	0		0		0
Embedded Derivatives	(6,275		)	0		0		0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	(8,873		)	0		13		0
Total	$	(9,178	)	$	1,360	$	651	$	6,829

B-36

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

	Year Ended December 31, 2017(2)
	Realized Investment Gains (Losses)			Net Investment Income		Other Income			AOCI(1)
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	(68	)	$	814	$	(873	)	$	(10,009	)
Total cash flow hedges	(68		)	814		(873		)	(10,009		)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	124			0		0			0
Currency	(106		)	0		0			0
Currency/Interest Rate	(1,765		)	0		(20		)	0
Credit	(46		)	0		0			0
Equity	3,497			0		0			0
Embedded Derivatives	(14,734		)	0		0			0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	(13,030		)	0		(20		)	0
Total	$	(13,098	)	$	814	$	(893	)	$	(10,009	)

(1) Net change in AOCI.

(2) Prior period amounts have been updated to conform to current period presentation.

Presented below is a rollforward of current period cash flow hedges in AOCI before taxes:

	(in thousands)
Balance, December 31, 2016	$	4,973
Amount recorded in AOCI
Currency/Interest Rate	(10,136		)
Total amount recorded in AOCI	(10,136		)
Amount reclassified from AOCI to income
Currency/Interest Rate	127
Total amount reclassified from AOCI to income	127
Balance, December 31, 2017	$	(5,036	)
Amount recorded in AOCI
Currency/Interest Rate	8,522
Total amount recorded in AOCI	8,522
Amount reclassified from AOCI to income
Currency/Interest Rate	(1,693		)
Total amount reclassified from AOCI to income	(1,693		)
Balance, December 31, 2018	$	1,793
Cumulative-effect adjustment from the adoption of ASU 2017-12(1)	9
Amount recorded in AOCI
Currency/Interest Rate	3,235
Total amount recorded in AOCI	3,235
Amount reclassified from AOCI to income
Currency/Interest Rate	(1,844		)
Total amount reclassified from AOCI to income	(1,844		)
Balance, December 31, 2019	$	3,193

(1) See Note 2 for details.

B-37

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The changes in fair value of cash flow hedges are deferred in AOCI and are included in “Net unrealized investment gains (losses)” in the Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using December 31, 2019 values, it is estimated that a pre-tax gain of $1.7 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending December 31, 2020.

The exposures the Company is hedging with these qualifying cash flow hedges include the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments.

There were no material amounts reclassified from AOCI into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging.

Credit Derivatives

The Company has no exposure from credit derivative positions where it has written credit protection as of December 31, 2019 and 2018.

The Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. The Company has outstanding notional amounts of $0 million and $1 million reported as of December 31, 2019 and 2018, respectively with a fair value of $0 million for both periods.

Credit Risk

The Company is exposed to credit-related losses in the event of non-performance by counterparty to financial derivative transactions with a positive fair value. The Company manages credit risk by entering into derivative transactions with its affiliate, Prudential Global Funding LLC (“PGF”), related to its OTC derivatives. PGF, in turn, manages its credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review.

Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position.

5. FAIR VALUE OF ASSETS AND LIABILITIES

Fair Value Measurement – Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level 1 - Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. The Company’s Level 1 assets and liabilities primarily include certain cash equivalents.

Level 2 - Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. The Company’s Level 2 assets and liabilities include: fixed maturities (corporate public and private bonds, most government securities, certain asset-backed and mortgage-backed securities, etc.), certain equity securities (mutual funds, which do not trade in active markets because they are not publicly available), certain cash equivalents, and certain OTC derivatives.

Level 3 - Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. The Company’s Level 3 assets and liabilities primarily include: certain private fixed maturities and equity securities, certain manually priced public fixed maturities, certain highly structured OTC derivative contracts and embedded derivatives resulting from reinsurance or certain products with guaranteed benefits.

B-38

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Assets and Liabilities by Hierarchy Level – The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.

	As of December 31, 2019
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	16,015	$	0	$	0		$	16,015
Obligations of U.S. states and their political subdivisions	0		133,677		0		0			133,677
Foreign government bonds	0		77,280		0		0			77,280
U.S. corporate public securities	0		697,520		0		0			697,520
U.S. corporate private securities	0		232,903		312		0			233,215
Foreign corporate public securities	0		57,993		0		0			57,993
Foreign corporate private securities	0		163,026		866		0			163,892
Asset-backed securities(2)	0		18,542		0		0			18,542
Commercial mortgage-backed securities	0		147,389		0		0			147,389
Residential mortgage-backed securities	0		4,573		0		0			4,573
Subtotal	0		1,548,918		1,178		0			1,550,096
Fixed maturities, trading	0		13,700		0		0			13,700
Equity securities	0		207		7,305		0			7,512
Cash equivalents	0		55,896		0		0			55,896
Other invested assets(3)	0		34,413		0		(13,029		)	21,384
Reinsurance recoverables	0		0		760,558		0			760,558
Receivables from parent and affiliates	0		2,433		0		0			2,433
Subtotal excluding separate account assets	0		1,655,567		769,041		(13,029		)	2,411,579
Separate account assets(4)(5)	0		13,927,275		0		0			13,927,275
Total assets	$	0	$	15,582,842	$	769,041	$	(13,029	)	$	16,338,854
Future policy benefits(6)	$	0	$	0	$	760,558	$	0		$	760,558
Policyholders' account balances	0		0		133,793		0			133,793
Payables to parent and affiliates	0		13,043		0		(13,043		)	0
Total liabilities	$	0	$	13,043	$	894,351	$	(13,043	)	$	894,351

B-39

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

	As of December 31, 2018
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	16,328	$	0	$	0		$	16,328
Obligations of U.S. states and their political subdivisions	0		122,306		0		0			122,306
Foreign government bonds	0		65,294		0		0			65,294
U.S. corporate public securities	0		480,725		0		0			480,725
U.S. corporate private securities	0		224,278		2,088		0			226,366
Foreign corporate public securities	0		48,215		0		0			48,215
Foreign corporate private securities	0		143,969		794		0			144,763
Asset-backed securities(2)	0		23,351		0		0			23,351
Commercial mortgage-backed securities	0		145,206		0		0			145,206
Residential mortgage-backed securities	0		5,270		0		0			5,270
Subtotal	0		1,274,942		2,882		0			1,277,824
Fixed maturities, trading	0		5,770		0		0			5,770
Equity securities	0		3,248		6,622		0			9,870
Cash equivalents	19,972		39,946		0		0			59,918
Other invested assets(3)	0		11,148		0		(3,355		)	7,793
Reinsurance recoverables	0		0		488,825		0			488,825
Receivables from parent and affiliates	0		8,824		0		0			8,824
Subtotal excluding separate account assets	19,972		1,343,878		498,329		(3,355		)	1,858,824
Separate account assets(4)(5)	0		11,648,322		0		0			11,648,322
Total assets	$	19,972	$	12,992,200	$	498,329	$	(3,355	)	$	13,507,146
Future policy benefits(6)	$	0	$	0	$	488,825	$	0		$	488,825
Policyholders' account balances	0		0		1,949		0			1,949
Payables to parent and affiliates	0		3,140		0		(3,140		)	0
Total liabilities	$	0	$	3,140	$	490,774	$	(3,140	)	$	490,774

(1) “Netting” amounts represent cash collateral of $0.0 million and $0.2 million as of December 31, 2019 and 2018, respectively.

(2) Includes credit tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At December 31, 2019 and 2018, the fair values of such investments were $3.3 million and $2.9 million, respectively.

(4) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate owned life insurance fund, for which fair value is measured at NAV per share (or its equivalent). At December 31, 2019 and 2018, the fair value of such investments was $1,977 million and $1,734 million respectively.

(5) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Statements of Financial Position.

(6) As ofDecember 31, 2019, the net embedded derivative liability position of $761 million includes $60 million of embedded derivatives in an asset position and $821 million of embedded derivatives in a liability position. As of December 31, 2018, the net embedded derivative liability position of $489 million includes $60 million of embedded derivatives in an asset position and $549 million of embedded derivatives in a liability position.

B-40

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The methods and assumptions the Company uses to estimate the fair value of assets and liabilities measured at fair value on a recurring basis are summarized below.

Fixed Maturity Securities – The fair values of the Company’s public fixed maturity securities are generally based on prices obtained from independent pricing services. Prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type. The pricing hierarchy is updated for new financial products and recent pricing experience with various vendors. Consistent with the fair value hierarchy described above, securities with validated quotes from pricing services are generally reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. Typical inputs used by these pricing services include but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flow, prepayment speeds, and default rates. If the pricing information received from third-party pricing services is deemed not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process with the pricing service or classify the securities as Level 3. If the pricing service updates the price to be more consistent with the presented market observations, the security remains within Level 2.

Internally-developed valuations or indicative broker quotes are also used to determine fair value in circumstances where vendor pricing is not available, or where the Company ultimately concludes that pricing information received from the independent pricing services is not reflective of market activity. If the Company concludes the values from both pricing services and brokers are not reflective of market activity, it may override the information with an internally-developed valuation. As of December 31, 2019 and 2018, overrides on a net basis were not material. Pricing service overrides, internally-developed valuations and indicative broker quotes are generally included in Level 3 in the fair value hierarchy.

The Company conducts several specific price monitoring activities. Daily analyses identify price changes over predetermined thresholds defined at the financial instrument level. Various pricing integrity reports are reviewed on a daily and monthly basis to determine if pricing is reflective of market activity or if it would warrant any adjustments. Other procedures performed include, but are not limited to, reviews of third-party pricing services methodologies, reviews of pricing trends, and back testing.

The fair values of private fixed maturities, which are originated by internal private asset managers, are primarily determined using discounted cash flow models. These models primarily use observable inputs that include Treasury or similar base rates plus estimated credit spreads to value each security. The credit spreads are obtained through a survey of private market intermediaries who are active in both primary and secondary transactions, and consider, among other factors, the credit quality and the reduced liquidity associated with private placements. Internal adjustments are made to reflect variation in observed sector spreads. Since most private placements are valued using standard market observable inputs and inputs derived from, or corroborated by, market observable data including, but not limited to observed prices and spreads for similar publicly or privately traded issues, they have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model may incorporate significant unobservable inputs, which reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the price of a security, a Level 3 classification is made.

Equity Securities – Equity securities consist principally of investments in common and preferred stock of publicly traded companies, privately traded securities, as well as mutual fund shares. The fair values of most publicly traded equity securities are based on quoted market prices in active markets for identical assets and are classified within Level 1 in the fair value hierarchy. Estimated fair values for most privately traded equity securities are determined using discounted cash flow, earnings multiple and other valuation models that require a substantial level of judgment around inputs and therefore are classified within Level 3. The fair values of mutual fund shares that transact regularly (but do not trade in active markets because they are not publicly available) are based on transaction prices of identical fund shares and are classified within Level 2 in the fair value hierarchy.

Derivative Instruments – Derivatives are recorded at fair value either as assets within “Other invested assets”, or as liabilities within “Payables to parent and affiliates”, except for embedded derivatives which are recorded with the associated host contract. The fair values of derivative contracts can be affected by changes in interest rates, foreign exchange rates, credit spreads, market volatility, expected returns, NPR, liquidity and other factors.

The Company's exchange-traded futures and options include treasury and equity futures. Exchange-traded futures and options are valued using quoted prices in active markets and are classified within Level 1 in the fair value hierarchy.

B-41

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The majority of the Company’s derivative positions are traded in the OTC derivative market and are classified within Level 2 in the fair value hierarchy. OTC derivatives classified within Level 2 are valued using models that utilize actively quoted or observable market input values from external market data providers, third-party pricing vendors and/or recent trading activity. The Company’s policy is to use mid-market pricing in determining its best estimate of fair value. The fair values of most OTC derivatives, including interest rate and cross-currency swaps, currency forward contracts and single name credit default swaps are determined using discounted cash flow models. The fair values of European style option contracts are determined using Black-Scholes option pricing models. These models’ key inputs include the contractual terms of the respective contract, along with significant observable inputs, including interest rates, currency rates, credit spreads, equity prices, index dividend yields, NPR, volatility and other factors.

The Company’s cleared interest rate swaps and credit derivatives linked to an index are valued using models that utilize actively quoted or observable market inputs, including Overnight Indexed Swap discount rates, obtained from external market data providers, third-party pricing vendors and/or recent trading activity. These derivatives are classified as Level 2 in the fair value hierarchy.

Cash Equivalents and Short-Term Investments – Cash equivalents and short-term investments include money market instruments and other highly liquid debt instruments. Certain money market instruments are valued using unadjusted quoted prices in active markets that are accessible for identical assets and are primarily classified as Level 1. The remaining instruments in this category are generally fair valued based on market observable inputs, and these investments have primarily been classified within Level 2.

Separate Account Assets – Separate account assets include fixed maturity securities, treasuries, equity securities, real estate, mutual funds and commercial mortgage loans for which values are determined consistent with similar instruments described above under “Fixed Maturity Securities” and “Equity Securities”.

Receivables from Parent and Affiliates – Receivables from parent and affiliates carried at fair value include affiliated bonds within the Company’s legal entity where fair value is determined consistent with similar securities described above under “Fixed Maturity Securities” managed by affiliated asset managers.

Reinsurance Recoverables – Reinsurance recoverables carried at fair value include the reinsurance of the Company’s living benefit guarantees on certain variable annuity contracts. These guarantees are accounted for as embedded derivatives and are recorded in “Reinsurance recoverables” or “Other liabilities” when fair value is in an asset or liability position, respectively. The methods and assumptions used to estimate the fair value are consistent with those described below in “Future policy benefits”. The reinsurance agreements covering these guarantees are derivatives with fair value determined in the same manner as the living benefit guarantee.

Future Policy Benefits – The liability for future policy benefits is related to guarantees primarily associated with the living benefit features of certain variable annuity contracts, including guaranteed minimum accumulation benefits ("GMAB"), guaranteed withdrawal benefits ("GMWB") and guaranteed minimum income and withdrawal benefits ("GMIWB"), accounted for as embedded derivatives. The fair values of these liabilities are calculated as the present value of future expected benefit payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. This methodology could result in either a liability or contra-liability balance, given changing capital market conditions and various actuarial assumptions. Since there is no observable active market for the transfer of these obligations, the valuations are calculated using internally developed models with option pricing techniques. The models are based on a risk neutral valuation framework and incorporate premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows. The determination of these risk premiums requires the use of management's judgment.

The significant inputs to the valuation models for these embedded derivatives include capital market assumptions, such as interest rate levels and volatility assumptions, the Company’s market-perceived NPR, as well as actuarially determined assumptions, including contractholder behavior, such as lapse rates, benefit utilization rates, withdrawal rates and mortality rates. Since many of these assumptions are unobservable and are considered to be significant inputs to the liability valuation, the liability included in future policy benefits has been reflected within Level 3 in the fair value hierarchy.

Capital market inputs and actual policyholders’ account values are updated each quarter based on capital market conditions as of the end of the quarter, including interest rates, equity markets and volatility. In the risk neutral valuation, the initial swap curve drives the total return used to grow the policyholders’ account values. The Company’s discount rate assumption is based on the London Inter-Bank Offered Rate ("LIBOR") swap curve adjusted for an additional spread relative to LIBOR to reflect NPR.

Actuarial assumptions, including contractholder behavior and mortality, are reviewed at least annually, and updated based upon emerging experience, future expectations and other data, including any observable market data. These assumptions are generally updated annually unless a material change that the Company feels is indicative of a long-term trend is observed in an interim period.

B-42

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Policyholders' Account Balances – The liability for policyholders’ account balances is related to certain embedded derivative instruments associated with certain universal life products that provide the policyholders with the index-linked interest credited over contract specified term periods. The fair values of these liabilities are determined using discounted cash flow models which include capital market assumptions such as interest rates and equity index volatility assumptions, the Company’s market-perceived NPR and actuarially determined assumptions for mortality, lapses and projected hedge costs.

As there is no observable active market for these liabilities, the fair value is determined as the present value of account balances paid to policyholders in excess of contractually guaranteed minimums using option pricing techniques for index term periods that contain deposits as of the valuation date, and the expected option budget for future index term periods, where the terms of index crediting rates have not yet been declared by the company. Premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows are also incorporated in the fair value of these liabilities. The determination of these risk premiums requires the use of management’s judgment, and hence these liabilities are reflected within Level 3 in the fair value hierarchy.

Capital market inputs, including interest rates and equity markets volatility, and actual policyholders’ account values are updated each quarter. Actuarial assumptions are reviewed at least annually and updated based upon emerging experience, future expectations and other data, including any observable market data. Aside from these annual updates, assumptions are generally updated only if a material change is observed in an interim period that the Company believes is indicative of a long-term trend.

Quantitative Information Regarding Internally-Priced Level 3 Assets and Liabilities – The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.

B-43

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

	As of December 31, 2019
	Fair Value		Valuation  Techniques	Unobservable Inputs	Minimum		Maximum		Weighted Average		Impact of Increase in Input on Fair Value(1)
	(in thousands)
Assets:
Reinsurance recoverables	$	760,558	Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
Future policy benefits(3)	$	760,558	Discounted cash flow	Lapse rate(5)	1	%	18	%			Decrease
				Spread over LIBOR(6)	0.10	%	1.23	%			Decrease
				Utilization rate(7)	43	%	97	%			Increase
				Withdrawal rate	See table footnote (8) below.
				Mortality rate(9)	0	%	15	%			Decrease
				Equity volatility curve	13	%	23	%			Increase
Policyholders' account balances(4)	$	133,793	Discounted cash flow	Lapse rate(5)	1	%	6	%			Decrease
				Spread over LIBOR(6)	0.10	%	1.23	%			Decrease
				Mortality rate(9)	0	%	24	%			Decrease
				Equity volatility curve	10	%	23	%			Increase
	As of December 31, 2018
	Fair Value		Valuation  Techniques	Unobservable Inputs	Minimum		Maximum		Weighted Average		Impact of Increase in Input on Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	2,882	Discounted cash flow	Discount rate	7	%	16.33	%	9.93	%	Decrease
Reinsurance recoverables	$	488,825	Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
Future policy benefits(3)	$	488,825	Discounted cash flow	Lapse rate(5)	1	%	13	%			Decrease
				Spread over LIBOR(6)	0.36	%	1.60	%			Decrease
				Utilization rate(7)	50	%	97	%			Increase
				Withdrawal rate	See table footnote (8) below.
				Mortality rate(9)	0	%	15	%			Decrease
				Equity volatility curve	18	%	22	%			Increase

(1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2) Includes assets classified as fixed maturities available-for-sale.

(3) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

B-44

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

(4) Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s life products that are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(5) Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives.

(6) The spread over the LIBOR swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt.

(7) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.

(8) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of both December 31, 2019 and 2018, the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(9) The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age and duration. A mortality improvement assumption is also incorporated into the overall mortality table.

Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows:

Corporate Securities - The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term, and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors.

Future Policy Benefits – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is generally highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money.

Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.

B-45

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

	Year Ended December 31, 2019
	Fair Value, beginning of period			Total realized and unrealized gains (losses)(1)			Purchases		Sales			Issuances			Settlements			Other		Transfers into Level 3		Transfers out of Level 3			Fair Value, end of period			Unrealized gains (losses) for assets still held(2)
	(in thousands)
Fixed maturities, available-for-sale:
Corporate securities(3)	$	2,882		$	(2,133	)	$	428	$	0		$	0		$	(638	)	$	0	$	639	$	0		$	1,178		$	(4,880	)
Structured securities(4)	0			442			0		(10		)	0			(68		)	0		24,960		(25,324		)	0			0
Other assets:
Equity securities	6,622			683			0		0			0			0			0		0		0			7,305			683
Reinsurance recoverables	488,825			174,913			96,820		0			0			0			0		0		0			760,558			191,215
Receivables from parent and affiliates	0			0			0		0			0			0			0		0		0			0			0
Liabilities:
Future policy benefits	(488,825		)	(174,913		)	0		0			(96,820		)	0			0		0		0			(760,558		)	(191,215		)
Policyholders' account balances(5)	(1,949		)	(108,588		)	0		0			(23,256		)	0			0		0		0			(133,793		)	(107,158		)

B-46

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

	Year Ended December 31, 2019
	Total realized and unrealized gains (losses)									Unrealized gains (losses) for assets still held(2)
	Realized investment gains (losses), net(1)			Other income (loss)		Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net			Other income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	(4,895	)	$	0	$	3,018	$	186	$	(4,880	)	$	0
Other assets:
Equity securities	0			683		0		0		0			683
Reinsurance recoverables	174,913			0		0		0		191,215			0
Receivables from parent and affiliates	0			0		0		0		0			0
Liabilities:
Future policy benefits	(174,913		)	0		0		0		(191,215		)	0
Policyholders' account balances	(108,588		)	0		0		0		(107,158		)	0

	Year Ended December 31, 2018
	Fair Value, beginning of period			Total realized and unrealized gains (losses)(1)			Purchases		Sales			Issuances			Settlements			Other		Transfers into Level 3		Transfers out of Level 3			Fair Value, end of period			Unrealized gains (losses) for assets still held(2)
	(in thousands)
Fixed maturities, available-for-sale:
Corporate securities(3)	$	14,516		$	(2,881	)	$	555	$	(45	)	$	0		$	(9,263	)	$	0	$	0	$	0		$	2,882		$	0
Structured securities(4)	11,575			(28		)	9,797		(196		)	0			(2,693		)	0		196		(18,651		)	0			0
Other assets:
Equity securities	7,428			(806		)	0		0			0			0			0		0		0			6,622			(806		)
Reinsurance recoverables	472,157			(70,180		)	86,848		0			0			0			0		0		0			488,825			(54,376		)
Receivables from parent and affiliates	0			(18		)	0		0			0			0			0		6,047		(6,029		)	0			0
Liabilities:
Future policy benefits	(472,157		)	70,180			0		0			(86,848		)	0			0		0		0			(488,825		)	54,376
Policyholders' account balances(5)	(5,463		)	3,567			0		0			0			(53		)	0		0		0			(1,949		)	3,567

B-47

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

	Year Ended December 31, 2018
	Total realized and unrealized gains (losses)											Unrealized gains (losses) for assets still held(2)
	Realized investment gains (losses), net(1)			Other income (loss)			Included in other comprehensive income (loss)			Net investment income		Realized investment gains (losses), net			Other income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	160		$	0		$	(3,222	)	$	153	$	0		$	0
Other assets:
Equity securities	0			(806		)	0			0		0			(806		)
Reinsurance recoverables	(70,180		)	0			0			0		(54,376		)	0
Receivables from parent and affiliates	0			0			(18		)	0		0			0
Liabilities:
Future policy benefits	70,180			0			0			0		54,376			0
Policyholders' account balances	3,567			0			0			0		3,567			0

B-48

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The following tables summarize the portion of changes in fair values of Level 3 assets and liabilities included in earnings and OCI for the year ended December 31, 2017, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held as of December 31, 2017.

	Year Ended December 31, 2017
	Total realized and unrealized gains (losses)									Unrealized gains (losses) for assets still held(2)
	Realized investment gains (losses), net(1)			Other income (loss)		Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net			Other income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	5		$	0	$	81	$	165	$	(62	)	$	0
Other assets:
Equity securities	0			696		0		0		0			696
Reinsurance recoverables	(44,680		)	0		0		0		(31,829		)	0
Receivables from parent and affiliates	0			0		0		0		0			0
Liabilities:
Future policy benefits	44,680			0		0		0		31,829			0
Policyholders' account balances	(3,421		)	0		0		0		(3,421		)	0

(1) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts.

(2) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

(3) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities.

(4) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities.

(5) Issuances and settlements for Policyholders' account balances are presented net in the rollforward.

Fair Value of Financial Instruments

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.

B-49

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

	December 31, 2019
	Fair Value								Carrying Amount(1)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	148,855	$	148,855	$	143,098
Policy loans	0		0		211,986		211,986		211,986
Cash and cash equivalents	28		0		0		28		28
Accrued investment income	0		19,539		0		19,539		19,539
Reinsurance recoverables	0		0		26,400		26,400		26,286
Receivables from parent and affiliates	0		30,387		0		30,387		30,387
Other assets	0		3,071		0		3,071		3,071
Total assets	$	28	$	52,997	$	387,241	$	440,266	$	434,395
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	192,239	$	40,475	$	232,714	$	232,600
Cash collateral for loaned securities	0		2,481		0		2,481		2,481
Short-term debt to affiliates	0		89		0		89		89
Payables to parent and affiliates	0		24,958		0		24,958		24,958
Other liabilities	0		41,310		0		41,310		41,310
Total liabilities	$	0	$	261,077	$	40,475	$	301,552	$	301,438

	December 31, 2018
	Fair Value								Carrying Amount (1)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	119,659	$	119,659	$	118,636
Policy loans	0		0		206,448		206,448		206,448
Cash and cash equivalents	523		10,000		0		10,523		10,523
Accrued investment income	0		17,764		0		17,764		17,764
Reinsurance recoverables	0		0		0		0		0
Receivables from parent and affiliates	0		31,564		0		31,564		31,564
Other assets	0		4,193		0		4,193		4,193
Total assets	$	523	$	63,521	$	326,107	$	390,151	$	389,128
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	179,239	$	40,349	$	219,588	$	220,553
Cash collateral for loaned securities	0		2,702		0		2,702		2,702
Short-term debt to affiliates	0		0		0		0		0
Payables to parent and affiliates	0		20,413		0		20,413		20,413
Other liabilities	0		58,357		0		58,357		58,357
Total liabilities	$	0	$	260,711	$	40,349	$	301,060	$	302,025

(1) Carrying values presented herein differ from those in the Company’s Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.

B-50

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The fair values presented above have been determined by using available market information and by applying market valuation methodologies, as described in more detail below.

Commercial Mortgage and Other Loans

The fair value of most commercial mortgage loans is based upon the present value of the expected future cash flows discounted at the appropriate U.S. Treasury rate or foreign government bond rate (for non-U.S. dollar-denominated loans) plus an appropriate credit spread for loans of similar quality, average life, and currency. The quality ratings for these loans, a primary determinant of the credit spreads and a significant component of the pricing process, are based on an internally-developed methodology. Certain commercial mortgage loans are valued incorporating other factors, including the terms of the loans, the principal exit strategies for the loans, prevailing interest rates and credit risk.

Policy Loans

The Company's valuation technique for policy loans is to discount cash flows at the current policy loan coupon rate. Policy loans are fully collateralized by the cash surrender value of underlying insurance policies. As a result, the carrying value of the policy loans approximates the fair value.

Cash and Cash Equivalents, Accrued Investment Income, Receivables from Parent and Affiliates and Other Assets

The Company believes that due to the short-term nature of certain assets, the carrying value approximates fair value. These assets include: cash and cash equivalent instruments, accrued investment income, and other assets that meet the definition of financial instruments, including receivables, unsettled trades and accounts receivable.

Reinsurance Recoverables

Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements between the Company and related parties. See Note 9 for additional information about the Company's reinsurance arrangements.

Policyholders’ Account Balances - Investment Contracts

Only the portion of policyholders’ account balances related to products that are investment contracts (those without significant mortality or morbidity risk) are reflected in the table above. For fixed deferred annuities, payout annuities and other similar contracts without life contingencies, fair values are generally derived using discounted projected cash flows based on interest rates that are representative of the Company’s financial strength ratings, and hence reflect the Company’s own NPR. For those balances that can be withdrawn by the customer at any time without prior notice or penalty, the fair value is the amount estimated to be payable to the customer as of the reporting date, which is generally the carrying value.

Cash Collateral for Loaned Securities

Cash collateral for loaned securities represents the collateral received or paid in connection with loaning or borrowing securities. Due to the short-term nature of these transactions, the carrying value approximates fair value.

Short-term Debt to Affiliates

The fair value of short-term debt is generally determined by either prices obtained from independent pricing services, which are validated by the Company, or discounted cash flow models. These fair values consider the Company’s own NPR. Discounted cash flow models predominately use market observable inputs such as the borrowing rates currently available to the Company for debt and financial instruments with similar terms and remaining maturities. For debt with a maturity of less than 90 days, the carrying value approximates fair value.

Other Liabilities and Payables to Parent and Affiliates

Other liabilities and payables to parent and affiliates are primarily payables, such as unsettled trades, drafts, escrow deposits and accrued expense payables. Due to the short term until settlement of most of these liabilities, the Company believes that carrying value approximates fair value.

B-51

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

6. DEFERRED POLICY ACQUISITION COSTS

The balances of and changes in DAC as of and for the years ended December 31, are as follows:

	2019			2018			2017
	(in thousands)
Balance, beginning of year	$	165,478		$	145,451		$	135,759
Capitalization of commissions, sales and issue expenses	39,199			30,742			24,599
Amortization- Impact of assumption and experience unlocking and true-ups	(5,341		)	(6,328		)	(2,875		)
Amortization- All other	(9,509		)	(9,644		)	(9,663		)
Change in unrealized investment gains and losses	(11,014		)	5,257			(2,369		)
Balance, end of year	$	178,813		$	165,478		$	145,451

7. POLICYHOLDERS’ LIABILITIES

Future Policy Benefits

Future policy benefits at December 31 for the years indicated are as follows: 

	2019		2018
	(in thousands)
Life insurance	$	1,505,953	$	1,299,165
Individual annuities and supplementary contracts	32,057		27,619
Other contract liabilities	764,949		493,308
Total future policy benefits	$	2,302,959	$	1,820,092

Life insurance liabilities include reserves for death benefits. Individual annuities and supplementary contract liabilities include reserves for life contingent immediate annuities. Other contract liabilities include unearned premiums and certain other reserves for annuities and individual life products.

Future policy benefits for individual non-participating traditional life insurance policies are generally equal to the present value of future benefit payments and related expenses, less the present value of future net premiums. Assumptions as to mortality, morbidity and persistency are based on the Company’s experience, industry data, and/or other factors, when the basis of the reserve is established. Interest rates used in the determination of the present values range from 2.3% to 7.0%.

Future policy benefits for individual annuities and supplementary contracts with life contingencies are generally equal to the present value of expected future payments. Assumptions as to mortality are based on the Company’s experience, industry data, and/or other factors when the basis of the reserve is established. The interest rates used in the determination of the present value range from 0.0% to 7.3%.

The Company’s liability for future policy benefits are primarily liabilities for guaranteed benefits related to certain long-duration life and annuity contracts. Liabilities for guaranteed benefits with embedded derivative features are primarily in "Other contract liabilities" in the above table. The remaining liabilities for guaranteed benefits are primarily reflected with the underlying contract. The interest rates used in the determination of the present values range from 1.9% to 3.3%. See Note 8 for additional information regarding liabilities for guaranteed benefits related to certain long-duration contracts.

B-52

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Policyholders’ Account Balances

Policyholders’ account balances at December 31 for the years indicated are as follows:

	2019		2018
	(in thousands)
Interest-sensitive life contracts	$	1,851,262	$	1,767,831
Individual annuities	360,497		345,790
Guaranteed interest accounts	20,111		22,088
Other	192,250		179,249
Total policyholders’ account balances	$	2,424,120	$	2,314,958

Policyholders’ account balances represent an accumulation of account deposits plus credited interest less withdrawals, expenses and mortality charges, if applicable. These policyholders’ account balances also include provisions for benefits under non-life contingent payout annuities. Interest crediting rates for interest-sensitive life contracts range from 1.9% to 4.6%. Interest crediting rates for individual annuities range from 0.0% to 4.9%. Interest crediting rates for guaranteed interest accounts range from 1.5% to 4.1%. Interest crediting rates range from 0.5% to 3.5% for other.

8. CERTAIN LONG-DURATION CONTRACTS WITH GUARANTEES

The Company issues variable annuity contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. The Company also issues variable annuity contracts with general and separate account options where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals (“return of net deposits”). In certain of these variable annuity contracts, the Company also contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return (“minimum return”), and/or (2) the highest contract value on a specified date adjusted for any withdrawals (“contract value”). These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods. The Company also issued annuity contracts with market value adjusted investment options (“MVAs”), which provide for a return of principal plus a fixed rate of return if held to maturity, or, alternatively, a “market adjusted value” if surrendered prior to maturity or if funds are reallocated to other investment options. The market value adjustment may result in a gain or loss to the Company, depending on crediting rates or an indexed rate at surrender, as applicable. The Company also issued fixed deferred annuity contracts without MVA that have a guaranteed credited rate and annuity benefit.

In addition, the Company issues certain variable life, variable universal life and universal life contracts where the Company contractually guarantees to the contractholder a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse (“no-lapse guarantee”). Variable life and variable universal life contracts are offered with general and separate account options.

The assets supporting the variable portion of all variable annuities are carried at fair value and reported as “Separate account assets” with an equivalent amount reported as “Separate account liabilities.” Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in “Policy charges and fee income” and changes in liabilities for minimum guarantees are generally included in “Policyholders’ benefits” or “Realized investment gains (losses), net.”

For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality.

For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality.

B-53

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior.

The Company’s contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed may not be mutually exclusive. The liabilities related to the net amount at risk are reflected within “Future policy benefits”. As of December 31, 2019 and 2018, the Company had the following guarantees associated with these contracts, by product and guarantee type:

	December 31, 2019				December 31, 2018
	In the Event of Death(1)		At Annuitization/ Accumulation(1)(2)		In the Event of Death(1)		At Annuitization/ Accumulation(1)(2)
	(in thousands)
Annuity Contracts
Return of net deposits
Account value	$	9,457,044	N/A		$	7,954,281	N/A
Net amount at risk	$	2,624	N/A		$	66,895	N/A
Average attained age of contractholders	67 years		N/A		66 years		N/A
Minimum return or contract value
Account value	$	1,974,634	$	10,662,525	$	1,820,257	$	9,082,737
Net amount at risk	$	1,784	$	174,773	$	148,719	$	381,856
Average attained age of contractholders	69 years		68 years		68 years		66 years
Average period remaining until earliest expected annuitization	N/A		0 years		N/A		0 years

(1) Balances are gross of reinsurance.

(2) Includes income and withdrawal benefits.

	December 31, 2019		December 31, 2018
	In the Event of Death(1)
	(in thousands)
Variable Life, Variable Universal Life and Universal Life Contracts
Separate account value	$	866,213	$	768,008
General account value	$	1,040,548	$	943,528
Net amount at risk	$	18,594,133	$	18,364,626
Average attained age of contractholders	54 years		54 years

(1) Balances are gross of reinsurance.

B-54

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows:

	December 31, 2019(1)		December 31, 2018(1)
	(in thousands)
Equity funds	$	5,909,051	$	4,884,603
Bond funds	5,016,141		4,419,587
Money market funds	167,616		145,921
Total	$	11,092,808	$	9,450,111

(1) Balances are gross of reinsurance.

In addition to the amounts invested in separate account investment options above, $339 million at December 31, 2019 and $324 million at December 31, 2018 of account balances of variable annuity contracts with guarantees, inclusive of contracts with MVA features were invested in general account investment options. For the years ended December 31, 2019, 2018 and 2017, there were no transfers of assets, other than cash, from the general account to any separate account, and accordingly no gains or losses recorded.

Liabilities for Guarantee Benefits

The table below summarizes the changes in general account liabilities for guarantees. The liabilities for GMDB, and GMIB are included in “Future policy benefits” and the related changes in the liabilities are included in “Policyholders’ benefits.” GMAB, GMWB, and GMIWB are accounted for as embedded derivatives and are recorded at fair value within “Future policy benefits.” Changes in the fair value of these derivatives, including changes in the Company’s own risk of non-performance, along with any fees attributed or payments made relating to the derivative, are recorded in “Realized investment gains (losses), net.” See Note 5 for additional information regarding the methodology used in determining the fair value of these embedded derivatives.

	GMDB						GMIB			GMWB/GMIWB/GMAB		Total
	Variable Annuity			Variable Life, Variable Universal Life & Universal Life			Variable Annuity
	(in thousands)
Balance at December 31, 2016	$	10,635		$	137,319		$	1,116		$	434,713	$	583,783
Incurred guarantee benefits(1)	893			47,907			(570		)	37,443		85,673
Paid guarantee benefits	(154		)	(250		)	(11		)	0		(415		)
Change in unrealized investment gains and losses	161			11,265			2			0		11,428
Balance at December 31, 2017	11,535			196,241			537			472,156		680,469
Incurred guarantee benefits(1)	1,913			52,918			10			16,669		71,510
Paid guarantee benefits	(964		)	(5,636		)	0			0		(6,600		)
Change in unrealized investment gains and losses	(216		)	(18,681		)	(4		)	0		(18,901		)
Balance at December 31, 2018	12,268			224,842			543			488,825		726,478
Incurred guarantee benefits(1)	2,846			115,994			68			271,733		390,641
Paid guarantee benefits	63			(15,638		)	(50		)	0		(15,625		)
Change in unrealized investment gains and losses	459			51,351			5			0		51,815
Balance at December 31, 2019	$	15,636		$	376,549		$	566		$	760,558	$	1,153,309

(1) Incurred guarantee benefits include the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features considered to be derivatives.

B-55

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The GMDB, which includes the liability for no-lapse guarantees, and GMIB liability are established when associated assessments (which include all policy charges including charges for administration, mortality, expense, surrender, and other, regardless of how characterized) are recognized. This liability is established using current best estimate assumptions and is based on the ratio of the present value of total expected excess payments (e.g., payments in excess of account value) over the life of the contract divided by the present value of total expected assessments (i.e., benefit ratio). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date. Similar to as described above for DAC, the reserves are subject to adjustments based on annual reviews of assumptions and quarterly adjustments for experience, including market performance. These adjustments reflect the impact on the benefit ratio of using actual historical experience from the issuance date to the balance sheet date plus updated estimates of future experience. The updated benefit ratio is then applied to all prior periods’ assessments to derive an adjustment to the reserve recognized through a benefit or charge to current period earnings.

The GMAB features provide the contractholder with a guaranteed return of initial account value or an enhanced value if applicable. The most significant of the Company’s GMAB features are the guaranteed return option features, which includes an automatic rebalancing element that reduces the Company’s exposure to these guarantees. The GMAB liability is calculated as the present value of future expected payments in excess of the account balance less the present value of future expected rider fees attributable to the embedded derivative feature.

The GMWB features provide the contractholder with access to a guaranteed remaining balance if the account value is reduced to zero through a combination of market declines and withdrawals. The guaranteed remaining balance is generally equal to the protected value under the contract, which is initially established as the greater of the account value or cumulative deposits when withdrawals commence, less cumulative withdrawals. The contractholder also has the option, after a specified time period, to reset the guaranteed remaining balance to the then-current account value, if greater. The contractholder accesses the guaranteed remaining balance through payments over time, subject to maximum annual limits. The GMWB liability is calculated as the present value of future expected payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature.

The GMIWB features, taken collectively, provide a contractholder two optional methods to receive guaranteed minimum payments over time, a “withdrawal” option or an “income” option. The withdrawal option (which was available under only one of the GMIWBs and is no longer offered) guarantees that a contractholder can withdraw an amount each year until the cumulative withdrawals reach a total guaranteed balance. The income option (which varies among the Company’s GMIWBs) in general, guarantees the contractholder the ability to withdraw an amount each year for life (or for joint lives, in the case of any spousal version of the benefit) where such amount is equal to a percentage of a protected value under the benefit. The contractholder also has the potential to increase this annual amount, based on certain subsequent increases in account value that may occur. The GMIWB can be elected by the contractholder upon issuance of an appropriate deferred variable annuity contract or at any time following contract issue prior to annuitization. Certain GMIWB features include an automatic rebalancing element that reduces the Company’s exposure to these guarantees. The GMIWB liability is calculated as the present value of future expected payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature.

Sales Inducements

The Company defers sales inducements and amortizes them over the anticipated life of the policy using the same methodology and assumptions used to amortize DAC. The Company has offered various types of sales inducements, including: (1) a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s initial deposit and (2) additional credits after a certain number of years a contract is held.

There were no deferred sales inducements balances at December 31, 2019 and 2018 because they were fully ceded.

9.    REINSURANCE

The Company participates in reinsurance with its affiliates Prudential Arizona Reinsurance Captive Company (“PARCC”), Prudential Arizona Reinsurance Term Company (“PAR Term”), Prudential Arizona Reinsurance Universal Company (“PAR U”), Prudential Term Reinsurance Company (“Term Re”) and Dryden Arizona Reinsurance Term Company (“DART”), its parent companies, Pruco Life and Prudential Insurance, as well as third parties. The reinsurance agreements provide risk diversification and additional capacity for future growth, limit the maximum net loss potential, manage statutory capital, and facilitate the Company's capital market hedging program. Life reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term and coinsurance. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. The Company believes a material reinsurance liability resulting from such inability of reinsurers to meet their obligations is unlikely.

B-56

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Reserves related to reinsured long-duration contracts are accounted for using assumptions consistent with those used to account for the underlying contracts. Amounts recoverable from reinsurers for long-duration reinsurance arrangements are estimated in a manner consistent with the claim liabilities and policy benefits associated with the reinsured policies. Reinsurance policy charges and fee income ceded for universal life and variable annuity products are accounted for as a reduction of policy charges and fee income. Reinsurance premiums ceded for term insurance products are accounted for as a reduction of premiums.

Realized investment gains and losses include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. The Company has entered into a reinsurance agreement to transfer the risk related to living benefit guarantees on variable annuities to Prudential Insurance. These reinsurance agreements are derivatives and have been accounted for in the same manner as embedded derivatives and the changes in the fair value of these derivatives are recognized through “Realized investment gains (losses), net”. See Note 4 for additional information related to the accounting for embedded derivatives.

Reinsurance amounts included in the Company’s Statements of Financial Position as of December 31, were as follows:

	2019			2018
	(in thousands)
Reinsurance recoverables	$	3,200,642		$	2,723,518
Policy loans	(18,627		)	(17,297		)
Deferred policy acquisition costs	(736,575		)	(754,569		)
Deferred sales inducements	(47,423		)	(52,875		)
Other assets	16,540			17,959
Other liabilities	93,557			65,225

The reinsurance recoverables by counterparty are broken out below:

	December 31, 2019		December 31, 2018
	(in thousands)
Prudential Insurance	$	1,245,450	$	924,847
PAR U	1,027,304		922,904
PARCC	458,441		480,627
PAR Term	219,757		205,972
Term Re	190,633		156,303
DART	38,651		13,367
Pruco Life	16,428		15,013
Unaffiliated	3,978		4,485
Total reinsurance recoverables	$	3,200,642	$	2,723,518

B-57

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Reinsurance amounts, included in the Company’s Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, were as follows:

	2019			2018			2017
	(in thousands)
Premiums:
Direct	$	248,613		$	238,622		$	231,167
Ceded	(235,682		)	(225,615		)	(217,200		)
Net premiums	12,931			13,007			13,967
Policy charges and fee income:
Direct	405,167			361,697			409,874
Ceded(1)	(339,432		)	(299,130		)	(365,671		)
Net policy charges and fee income	65,735			62,567			44,203
Net investment income:
Direct	77,462			68,467			67,243
Ceded	(674		)	(656		)	(592		)
Net investment income	76,788			67,811			66,651
Asset administration fees:
Direct	38,013			36,214			38,743
Ceded	(32,169		)	(30,858		)	(29,668		)
Net asset administration fees	5,844			5,356			9,075
Realized investment gains (losses), net:
Direct	(184,219		)	70,414			41,810
Ceded	166,831			(79,687		)	(55,848		)
Realized investment gains (losses), net	(17,388		)	(9,273		)	(14,038		)
Policyholders’ benefits (including change in reserves):
Direct	436,729			296,335			291,003
Ceded(2)	(411,116		)	(276,506		)	(278,748		)
Net policyholders’ benefits (including change in reserves)	25,613			19,829			12,255
Interest credited to policyholders’ account balances:
Direct	67,354			67,490			54,624
Ceded	(29,608		)	(31,554		)	(21,665		)
Net interest credited to policyholders’ account balances	37,746			35,936			32,959
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization	$	(182,460	)	$	(161,905	)	$	(165,870	)

(1) Includes $(4) million of unaffiliated activity for each of the years ended December 31, 2019, 2018 and 2017.

(2) Includes $(2) million, $(4) million and $(0.2) million of unaffiliated activity for the years ended December 31, 2019, 2018 and 2017, respectively.

The gross and net amounts of life insurance face amount in force as of December 31, were as follows:

	2019			2018			2017
	(in thousands)
Direct gross life insurance face amount in force	$	148,591,760		$	140,943,939		$	136,020,588
Reinsurance ceded	(135,331,837		)	(128,863,466		)	(123,974,595		)
Net life insurance face amount in force	$	13,259,923		$	12,080,473		$	12,045,993

B-58

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Information regarding significant affiliated reinsurance agreements is described below.

Prudential Insurance

The Company has a yearly renewable term reinsurance agreement with Prudential Insurance and reinsures the majority of all mortality risks not otherwise reinsured. Effective July 1, 2017, this agreement was terminated for certain new business, primarily Universal Life business, and such business was reinsured to Pruco Life under a yearly renewable term reinsurance agreement. Effective April 1, 2016 the Company entered into a reinsurance agreement with Prudential Insurance to reinsure its variable annuity base contracts, along with the living benefit guarantees.

PAR U

Effective July 1, 2012, the Company reinsures an amount equal to 95% of all risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, excluding those policies that are subject to principle-based reserving.

PARCC

The Company reinsures 90% of the risks under its term life insurance policies, with effective dates prior to January 1, 2010 through an automatic coinsurance agreement with PARCC.

PAR Term

The Company reinsures 95% of the risks under its term life insurance policies, with effective dates January 1, 2010 through December 31, 2013, through an automatic coinsurance agreement with PAR Term.

Term Re

The Company reinsures 95% of the risks under its term life insurance policies, with effective dates on or after January 1, 2014 through December 31, 2017, through an automatic coinsurance agreement with Term Re.

Pruco Life

Effective July 1, 2017, the Company entered into a yearly renewable term reinsurance agreement with Pruco Life for new business, primarily covering Universal Life policies. Under this agreement the majority of all mortality risk is ceded to Pruco Life. The Company also reinsures certain Corporate Owned Life Insurance (“COLI”) policies with Pruco Life. Through March 31, 2016, the Company reinsured Prudential Defined Income ("PDI") living benefit guarantees with Pruco Life. Effective April 1, 2016, the Company recaptured PDI living benefit guarantees from Pruco Life and reinsured them with Prudential Insurance. See Note 1 for additional information related to the Variable Annuities Recapture.

DART

Effective January 1, 2018, the Company entered into an automatic coinsurance agreement with DART to reinsure an amount equal to 95% of the risks associated with its term life insurance policies with effective dates on or after January 1, 2018, excluding those policies that are subject to principle-based reserving.

B-59

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

10. INCOME TAXES

The following schedule discloses significant components of income tax expense (benefit) for each year presented:

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Current tax expense (benefit):
U.S. Federal	$	7,030		$	8,435		$	4,514
Total	7,030			8,435			4,514
Deferred tax expense (benefit):
U.S. Federal	(10,442		)	(8,488		)	(10,452		)
Total	(10,442		)	(8,488		)	(10,452		)
Income tax expense (benefit) from operations	(3,412		)	(53		)	(5,938		)
Income tax expense (benefit) reported in equity related to:
Other comprehensive income (loss)	26,583			(14,464		)	10,084
Additional paid-in capital	0			0			471
Total income tax expense (benefit)	$	23,171		$	(14,517	)	$	4,617

Reconciliation of Expected Tax at Statutory Rates to Reported Income Tax Expense (Benefit)

The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% applicable for 2019 and 2018 and 35% applicable for 2017, and reported income tax expense (benefit) are summarized as follows:

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Expected federal income tax expense	$	7,002		$	6,559		$	10,262
Non-taxable investment income	(6,578		)	(5,171		)	(15,687		)
Tax credits	(3,689		)	(3,525		)	(2,611		)
Domestic production activities deduction, net	0			0			(1,045		)
Changes in tax law	0			(61		)	2,507
Settlements with taxing authorities	0			2,098			0
Other	(147		)	47			636
Reported income tax expense (benefit)	$	(3,412	)	$	(53	)	$	(5,938	)
Effective tax rate	(10.2		)%	(0.2		)%	(20.3		)%

B-60

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The effective tax rate is the ratio of “Income tax expense (benefit)” divided by “Income (loss) from operations before income taxes.” The Company’s effective tax rate for fiscal years 2019, 2018 and 2017 was (10.2)%, (0.2)% and (20.3)%, respectively. The following is a description of items that had the most significant impact on the difference between the Company’s statutory U.S. federal income tax rate of 21% applicable for 2019 and 2018 and 35% applicable for 2017, and the Company's effective tax rate during the periods presented:

Changes in Tax Law. The following is a list of notable changes in tax law that impacted the Company’s effective tax rate for the periods presented:

Tax Act of 2017 - On December 22, 2017, the Tax Act of 2017 was enacted into U.S. law. As a result, the Company recognized a $2.5 million tax expense in “Income tax expense (benefit)” in the Company’s Statements of Operations for the year ended December 31, 2017. In accordance with SEC Staff Accounting Bulletin 118, in 2017 the Company recorded the effects of the Tax Act of 2017 using reasonable estimates due to the need for further analysis of the provisions within the Tax Act of 2017 and collection, preparation and analysis of relevant data necessary to complete the accounting. During 2018, the Company completed the collection, preparation and analysis of data relevant to the Tax Act of 2017, and interpreted any additional guidance issued by the IRS, U.S. Department of the Treasury, or other standard-setting organizations, and recognized a $0.1 million decrease in income tax expense for a total of $2.4 million recognized from the reduction in net deferred tax assets to reflect the reduction in the U.S. tax rate from 35% to 21%.

Non-Taxable Investment Income. The U.S. Dividends Received Deduction (“DRD”) reduces the amount of dividend income subject to U.S. tax and accounts for most of the non-taxable investment income shown in the table above. More specifically, the U.S. DRD constitutes $6 million of the total $7 million of 2019 non-taxable investment income, $5 million of the total $5 million of 2018 non-taxable investment income, and $15 million of the total $16 million of 2017 non-taxable investment income. The DRD for the current period was estimated using information from 2018, current year investment results, and current year’s equity market performance. The actual current year DRD can vary based on factors such as, but not limited to, changes in the amount of dividends received that are eligible for the DRD, changes in the amount of distributions received from fund investments, changes in the account balances of variable life and annuity contracts, and the Company’s taxable income before the DRD.

Other. This line item represents insignificant reconciling items that are individually less than 5% of the computed expected federal income tax expense (benefit) and have therefore been aggregated for purposes of this reconciliation in accordance with relevant disclosure guidance.

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

	As of December 31,
	2019		2018
	(in thousands)
Deferred tax assets:
Insurance reserves	$	29,213	$	19,049
Net unrealized loss on securities	0		4,077
Deferred policy acquisition cost	9,720		6,653
Employee benefits	840		0
Other	393		440
Deferred tax assets	40,166		30,219
Deferred tax liabilities:
Net unrealized gain on securities	23,698		0
Investments	5,677		5,364
Deferred tax liabilities	29,375		5,364
Net deferred tax asset (liability)	$	10,791	$	24,855

B-61

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

The application of U.S. GAAP requires the Company to evaluate the recoverability of deferred tax assets and establish a valuation allowance if necessary to reduce the deferred tax asset to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, the Company considers many factors, including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) in which tax jurisdictions they were generated and the timing of their reversal; (4) taxable income in prior carryback years as well as projected taxable earnings exclusive of reversing temporary differences and carryforwards; (5) the length of time that carryovers can be utilized in the various taxing jurisdictions; (6) any unique tax rules that would impact the utilization of the deferred tax assets; and (7) any tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused. Although realization is not assured, management believes it is more likely than not that the deferred tax assets, net of valuation allowances, will be realized.

The Company had no valuation allowance as of December 31, 2019, and 2018. Adjustments to the valuation allowance will be made if there is a change in management’s assessment of the amount of deferred tax asset that is realizable.

The Company’s "Income (loss) from operations before income taxes" includes income from domestic operations of $33 million, $31 million and $29 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Tax Audit and Unrecognized Tax Benefits

The Company’s liability for income taxes includes the liability for unrecognized tax benefits and interest that relate to tax years still subject to review by the IRS or other taxing authorities. The completion of review or the expiration of the Federal statute of limitations for a given audit period could result in an adjustment to the liability for income taxes.

The following table reconciles the total amount of unrecognized tax benefits at the beginning and end of the periods indicated.

	2019		2018			2017
	(in thousands)
Balance at January 1,	$	0	$	3,019		$	948
Increases in unrecognized tax benefits-prior years	0		0			1,237
(Decreases) in unrecognized tax benefits-prior years	0		0			0
Increases in unrecognized tax benefits-current year	0		0			834
(Decreases) in unrecognized tax benefits-current year	0		0			0
Settlements with taxing authorities	0		(3,019		)	0
Balance at December 31,	$	0	$	0		$	3,019
Unrecognized tax benefits that, if recognized, would favorably impact the effective rate	$	0	$	0		$	3,019

The Company does not anticipate any significant changes within the next twelve months to its total unrecognized tax benefits related to tax years for which the statute of limitations has not expired.

The Company classifies all interest and penalties related to tax uncertainties as income tax expense (benefit).

At December 31, 2019, the Company remains subject to examination in the U.S. for tax years 2015 through 2019.

The Company participates in the IRS’s Compliance Assurance Program. Under this program, the IRS assigns an examination team to review completed transactions as they occur in order to reach agreement with the Company on how they should be reported in the relevant tax returns. If disagreements arise, accelerated resolution programs are available to resolve the disagreements in a timely manner.

B-62

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

11.    EQUITY

Accumulated Other Comprehensive Income (Loss)

AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Statements of Comprehensive Income. Each of the components that comprise OCI are described in further detail in Note 2 (Foreign Currency Translation Adjustment and Net Unrealized Investment Gains (Losses)). The balance of and changes in each component of AOCI as of and for the years ended December 31, are as follows:

	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustment			Net Unrealized Investment Gains (Losses)(1)			Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2016	$	(70	)	$	12,231		$	12,161
Change in OCI before reclassifications	43			31,228			31,271
Amounts reclassified from AOCI	0			982			982
Income tax benefit (expense)	(15		)	(10,069		)	(10,084		)
Balance, December 31, 2017	$	(42	)	$	34,372		$	34,330
Change in OCI before reclassifications	(1,187		)	(66,171		)	(67,358		)
Amounts reclassified from AOCI	0			(1,521		)	(1,521		)
Income tax benefit (expense)	248			14,216			14,464
Cumulative effect of adoption of ASU 2016-01	0			(175		)	(175		)
Cumulative effect of adoption of ASU 2018-02	(8		)	5,901			5,893
Balance, December 31, 2018	$	(989	)	$	(13,378	)	$	(14,367	)
Change in OCI before reclassifications	10			122,400			122,410
Amounts reclassified from AOCI	0			4,175			4,175
Income tax benefit (expense)	(2		)	(26,581		)	(26,583		)
Balance, December 31, 2019	$	(981	)	$	86,616		$	85,635

(1) Includes cash flow hedges of $3 million, $2 million and $(5) million as of December 31, 2019, 2018 and 2017, respectively.

Reclassifications out of Accumulated Other Comprehensive Income (Loss)

	Year Ended December 31, 2019			Year Ended December 31, 2018			Year Ended December 31, 2017
	(in thousands)
Amounts reclassified from AOCI (1)(2):
Net unrealized investment gains (losses):
Cash flow hedges - Currency/Interest rate(3)	$	1,844		$	1,693		$	(127	)
Net unrealized investment gains (losses) on available-for-sale securities(4)	(6,019		)	(172		)	(855		)
Total net unrealized investment gains (losses)	(4,175		)	1,521			(982		)
Total reclassifications for the period	$	(4,175	)	$	1,521		$	(982	)

(1) All amounts are shown before tax.

(2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.

(3) See Note 4 for additional information on cash flow hedges.

(4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits and policyholders’ account balances.

B-63

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Net Unrealized Investment Gains (Losses)

Net unrealized investment gains (losses) on securities classified as available-for-sale, certain other invested assets and other assets are included in the Company’s Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from “Other comprehensive income (loss)” those items that are included as part of “Net income” for a period that had been part of “Other comprehensive income (loss)” in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows:

B-64

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized

	Net Unrealized Gains (Losses) on Investments			Deferred Policy Acquisition Costs and Other Costs(2)			Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3)			Deferred Income Tax (Liability) Benefit			Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses)
	(in thousands)
Balance, December 31, 2016	$	147		$	162		$	134		$	(155	)	$	288
Net investment gains (losses) on investments arising during the period	23			0			0			(7		)	16
Reclassification adjustment for (gains) losses included in net income	(12		)	0			0			4			(8		)
Reclassification adjustment for OTTI losses excluded from net income(1)	4			0			0			(1		)	3
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			(225		)	0			80			(145		)
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities	0			0			(25		)	9			(16		)
Balance, December 31, 2017	$	162		$	(63	)	$	109		$	(70	)	$	138
Net investment gains (losses) on investments arising during the period	3			0			0			(1		)	2
Reclassification adjustment for (gains) losses included in net income	(22		)	0			0			5			(17		)
Reclassification adjustment for OTTI losses excluded from net income	0			0			0			0			0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			9			0			(2		)	7
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities	0			0			(67		)	14			(53		)
Balance, December 31, 2018	$	143		$	(54	)	$	42		$	(54	)	$	77
Net investment gains (losses) on investments arising during the period	(532		)	0			0			112			(420		)
Reclassification adjustment for (gains) losses included in net income	647			0			0			(136		)	511
Reclassification adjustment for OTTI losses excluded from net income(1)	(207		)	0			0			43			(164		)
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			22			0			(5		)	17
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities	0			0			(8		)	2			(6		)
Balance, December 31, 2019	$	51		$	(32	)	$	34		$	(38	)	$	15

(1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

(2) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.

(3) "Other liabilities" primarily includes reinsurance payables.

B-65

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

All Other Net Unrealized Investment Gains (Losses) in AOCI

	Net Unrealized Gains (Losses) on Investments(1)			Deferred Policy Acquisition Costs and Other Costs(3)			Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(4)			Deferred Income Tax (Liability) Benefit			Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses)
	(in thousands)
Balance, December 31, 2016	$	18,666		$	(6,408	)	$	6,115		$	(6,430	)	$	11,943
Net investment gains (losses) on investments arising during the period	34,845			0			0			(10,920		)	23,925
Reclassification adjustment for (gains) losses included in net income	(970		)	0			0			304			(666		)
Reclassification adjustment for OTTI losses excluded from net income(2)	(4		)	0			0			1			(3		)
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			6,443			0			(2,293		)	4,150
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities	0			0			(7,869		)	2,754			(5,115		)
Balance, December 31, 2017	$	52,537		$	35		$	(1,754	)	$	(16,584	)	$	34,234
Net investment gains (losses) on investments arising during the period	(68,532		)	0			0			14,392			(54,140		)
Reclassification adjustment for (gains) losses included in net income	(1,499		)	0			0			315			(1,184		)
Reclassification adjustment for OTTI losses excluded from net income	0			0			0			0			0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			3,134			0			(658		)	2,476
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities	0			0			(718		)	151			(567		)
Cumulative effect of adoption of ASU 2016-01	(270		)	0			0			95			(175		)
Cumulative effect of adoption of ASU 2018-02	0			0			0			5,901			5,901
Balance, December 31, 2018	$	(17,764	)	$	3,169		$	(2,472	)	$	3,612		$	(13,455	)
Net investment gains (losses) on investments arising during the period	130,017			0			0			(27,303		)	102,714
Reclassification adjustment for (gains) losses included in net income	3,528			0			0			(741		)	2,787
Reclassification adjustment for OTTI losses excluded from net income(2)	207			0			0			(43		)	164
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			5,836			0			(1,226		)	4,610
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities	0			0			(12,935		)	2,716			(10,219		)
Balance, December 31, 2019	$	115,988		$	9,005		$	(15,407	)	$	(22,985	)	$	86,601

(1) Includes cash flow hedges. See Note 4 for information on cash flow hedges.

B-66

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

(2) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

(3) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.

(4) "Other liabilities" primarily includes reinsurance payables.

12. STATUTORY NET INCOME AND SURPLUS AND DIVIDEND RESTRICTIONS

The Company is required to prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the New Jersey Department of Banking and Insurance. Statutory accounting practices primarily differ from U.S. GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions and valuing investments, deferred taxes, and certain assets on a different basis.

Statutory net income of the Company amounted to $38 million, $33 million and $33 million for the years ended December 31, 2019, 2018 and 2017, respectively. Statutory surplus of the Company amounted to $339 million and $234 million at December 31, 2019 and 2018, respectively.

The Company does not utilize prescribed or permitted practices that vary materially from the statutory accounting practices prescribed by the NAIC.

The Company is subject to New Jersey law, which limits the amount of dividends that insurance companies can pay to stockholders without approval of the New Jersey Department of Banking and Insurance. The maximum dividend, which may be paid in any twelve-month period without notification or approval, is limited to the greater of 10% of statutory surplus as of December 31 of the preceding year or the net gain from operations of the preceding calendar year. Cash dividends may only be paid out of surplus derived from realized net profits. Based on these limitations, there is a capacity to pay a dividend of $43 million in 2020 without prior approval. The Company paid dividends to Pruco Life of $0 million, $0 million and $100 million in 2019, 2018 and 2017, respectively.

13. RELATED PARTY TRANSACTIONS

The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties.

Expense Charges and Allocations

The majority of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into general and administrative expenses and agency distribution expenses.

The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business production processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. The Company reviews its allocation methodology periodically which it may adjust accordingly. General and administrative expenses include allocations of stock compensation expenses related to a stock-based awards program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock based-awards program was $0.1 million for each of the years ended December 31, 2019, 2018 and 2017. The expense charged to the Company for the deferred compensation program was $0.6 million, $0.7 million and $1 million for the years ended December 31, 2019, 2018 and 2017, respectively.

The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded, non-contributory defined benefit pension plans. Some of these benefits are based on final earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during a career. The Company’s share of net expense for the pension plans was $2 million, $3 million and $3 million for each of the years ended December 31, 2019, 2018 and 2017, respectively.

The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $3 million, $3 million and $4 million for the years ended December 31, 2019, 2018 and 2017, respectively.

B-67

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company’s expense for its share of the voluntary savings plan was $1 million for each of the years ended December 31, 2019, 2018 and 2017.

The Company is charged distribution expenses from Prudential Insurance’s agency network for both its domestic life and annuity products through a transfer pricing agreement, which is intended to reflect a market-based pricing arrangement.

The Company pays commissions and certain other fees to Prudential Annuities Distributors, Inc. (“PAD”) in consideration for PAD’s marketing and underwriting of the Company’s annuity products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s annuity products. Commissions and fees paid by the Company to PAD were $78 million, $73 million and $62 million for the years ended December 31, 2019, 2018 and 2017, respectively.

The Company is charged for its share of corporate expenses incurred by Prudential Financial to benefit its businesses, such as advertising, executive oversight, external affairs and philanthropic activity.  The Company’s share of corporate expenses was $13 million, $8 million and $8 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Corporate-Owned Life Insurance

The Company has sold three Corporate Owned Life Insurance ("COLI") policies to Prudential Insurance and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $2,743 million at December 31, 2019 and $2,239 million at December 31, 2018. Fees related to these COLI policies were $26 million, $25 million and $25 million for the years ended December 31, 2019, 2018 and 2017, respectively. The Company retains 10% of the mortality risk associated with these COLI policies up to $0.1 million per individual policy.

Affiliated Investment Management Expenses

In accordance with an agreement with PGIM, Inc. (“PGIM”), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $2 million for each of the years ended December 31, 2019, 2018 and 2017. These expenses are recorded as “Net investment income” in the Statements of Operations and Comprehensive Income (Loss).

Derivative Trades

In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 4 for additional information.

Joint Ventures

The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other invested assets" includes $37 million and $33 million as of December 31, 2019 and 2018, respectively. "Net investment income" related to these ventures includes a gain of $2 million, $0.3 million and $2 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Affiliated Asset Administration Fee Income

The Company has a revenue sharing agreement with AST Investment Services, Inc. ("ASTISI") and PGIM Investments LLC ("PGIM Investments") whereby the Company receives fee income based on policyholders' separate account balances invested in the AST. Income received from ASTISI and PGIM Investments related to this agreement was $32 million, $31 million and $29 million for the years ended December 31, 2019, 2018 and 2017, respectively. These revenues are recorded as “Asset administration fees” in the Statements of Operations and Comprehensive Income (Loss).

The Company has a revenue sharing agreement with PGIM Investments, whereby the Company receives fee income based on policyholders’ separate account balances invested in The Prudential Series Fund. Income received from Prudential Investments related to this agreement was $6 million, $5 million and $9 million for the years ended December 31, 2019, 2018 and 2017, respectively. These revenues are recorded as “Asset administration fees” in the Statements of Operations and Comprehensive Income (Loss).

B-68

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Affiliated Notes Receivable

Affiliated notes receivable included in “Receivables from parent and affiliates” at December 31, were as follows:

	Maturity Dates			Interest Rates				2019		2018
								(in thousands)
U.S. dollar floating rate notes			2028	3.83%	-	4.25	%	$	0	$	6,001
U.S. dollar fixed rate notes	2026	-	2027	0.00%	-	14.85	%	2,433		2,823
Total long-term notes receivable - affiliated(1)								$	2,433	$	8,824

(1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances.

The affiliated notes receivable shown above are classified as available-for-sale securities carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates.

Accrued interest receivable related to these loans was $0.0 million and $0.1 million for the year end December 31, 2019 and 2018, respectively, and is included in “Other assets”. Revenues related to these loans were $0.2 million, $0.3 million and $0.3 million for the years ended December 31, 2019, 2018 and 2017, respectively, and are included in “Other income”.

Affiliated Asset Transfers

The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid-in capital" ("APIC") and "Realized investment gains (losses), net", respectively. The table below shows affiliated asset trades for the years ended December 31, 2019 and 2018:

Affiliate	Date	Transaction	Security Type	Fair Value		Book Value		APIC, Net of Tax Increase/(Decrease)		Realized Investment Gain (Loss)
				(in thousands)
Gibraltar Universal Life Reinsurance Company	May 2018	Purchase	Fixed Maturities	$	17,904	$	17,904	$	0	$	0
Prudential Annuities Life Assurance Corporation	April 2019	Sale	Equity Securities	$	3,293	$	2,995	$	0	$	298

Debt Agreements

The Company is authorized to borrow funds up to $200 million from affiliates to meet its capital and other funding needs. The short team debt was $0.1 million as of December 31, 2019. There was no debt outstanding for 2018 and 2017.

The total interest expense to the Company related to loans payable to affiliates was $0.1 million, $0.0 million and $0.0 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Contributed Capital and Dividends

In December 2019, the Company receive capital contribution in the amount of $60 million from Pruco Life. In March of 2018 and 2017, the Company received capital contributions in the amount of $1 million from Pruco Life.

Through 2019 and 2018, the Company did not pay any dividends. In June of 2017, the Company paid a dividend in the amount of $100 million to Pruco Life.

Reinsurance with Affiliates

As discussed in Note 9, the Company participates in reinsurance transactions with certain affiliates.

B-69

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

14. COMMITMENTS AND CONTINGENT LIABILITIES

Commitments

The Company has made commitments to fund commercial mortgage loans. As of December 31, 2019, there were $4 million outstanding commitments to fund commercial loans, and none as of December 31, 2018. The Company has made commitments to purchase or fund investments, mostly private fixed maturities. As of December 31, 2019 and 2018, $48 million and $41 million, respectively, of these commitments were outstanding.

Contingent Liabilities

On an ongoing basis, the Company and its regulators review its operations including, but not limited to, sales and other customer interface procedures and practices, and procedures for meeting obligations to its customers and other parties. These reviews may result in the modification or enhancement of processes or the imposition of other action plans, including concerning management oversight, sales and other customer interface procedures and practices, and the timing or computation of payments to customers and other parties. In certain cases, if appropriate, the Company may offer customers or other parties remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines.

The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. For additional discussion of these matters, see “Litigation and Regulatory Matters” below.

It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position.

Litigation and Regulatory Matters

The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain.

The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of December 31, 2019, the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $10 million. This estimate is not an indication of expected loss, if any, or the Company's maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews.

B-70

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Notes to Financial Statements—(Continued)

Behfarin v. Pruco Life

In July 2017, a putative class action complaint entitled Richard Behfarin v. Pruco Life Insurance Company was filed in the United States District Court for the Central District of California, alleging that the Company imposes charges on owners of universal life policies to cure defaults and/or reinstate lapses, that are inconsistent with the applicable universal life policy. The complaint includes claims for breach of contract, breach of implied covenant of good faith and fair dealing, and violation of California law, and seeks unspecified damages along with declaratory and injunctive relief. In September 2017, the Company filed its answer to the complaint. In September 2018, plaintiff filed a motion for class certification. In October 2019, plaintiff filed: (1) the First Amended Complaint adding Prudential Insurance Company of America and Pruco Life Insurance Company of New Jersey as defendants; and (2) a motion seeking preliminary certification of a settlement class, appointment of a class representative and class counsel, and preliminary approval of the proposed class action settlement. In November 2019, the court issued an order granting the motion for preliminary approval of the settlement.

Securities Lending and Foreign Tax Reclaim Matter

In 2016, Prudential Financial self-reported to the SEC and the U.S. Department of Labor ("DOL"), and notified other regulators, that in some cases it failed to maximize securities lending income for the benefit of certain separate account investments due to a long-standing restriction benefiting Prudential Financial that limited the availability of loanable securities. Prudential Financial has removed the restriction and implemented a remediation plan for the benefit of customers. As part of Prudential Financial’s review of this matter, in 2018 it further self-reported to the SEC, and notified other regulators, that in some cases it failed to timely process foreign tax reclaims for the separate account investments. Prudential Financial has corrected the foreign tax reclaim process and has implemented a remediation plan for the benefit of customers.

The DOL’s review of the securities lending matter is closed. In September 2019, Prudential Financial reached a settlement of these matters with the SEC. As part of the settlement Prudential Financial agreed to pay a fine of $5 million and disgorgement of $27.6 million, and consented to the entry of an Administrative Order containing findings that two of its subsidiaries violated certain sections of the Investment Advisers Act of 1940 and the Investment Advisers Act Rules and ordering the subsidiaries to cease and desist from committing or causing any violations and any future violations of those provisions. In reaching this settlement, Prudential Financial neither admitted nor denied the SEC’s findings.

Summary

The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial position.

15. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The unaudited quarterly results of operations for the years ended December 31, 2019 and 2018 are summarized in the table below:

	Three months ended
	March 31		June 30		September 30		December 31
	(in thousands)
2019
Total revenues	$	38,475	$	43,080	$	36,173	$	30,804
Total benefits and expenses	27,353		33,388		27,560		26,888
Income (loss) from operations before income taxes	11,122		9,692		8,613		3,916
Net income (loss)	$	10,545	$	10,497	$	8,366	$	7,347
2018
Total revenues	$	41,606	$	40,709	$	22,789	$	35,368
Total benefits and expenses	30,839		33,648		15,100		29,657
Income (loss) from operations before income taxes	10,767		7,061		7,689		5,711
Net income (loss)	$	10,020	$	6,316	$	7,539	$	7,406

B-71

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholder of

Pruco Life Insurance Company of New Jersey:

Opinion on the Financial Statements

We have audited the accompanying statements of financial position of Pruco Life Insurance Company of New Jersey (the "Company") as of December 31, 2019 and 2018, and the related statements of operations and comprehensive income, of equity and of cash flows for each of the three years in the period ended December 31, 2019 including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018 and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019 in conformity with accounting principles generally accepted in the United States of America.

Changes in Accounting Principles

As discussed in Note 2 to the financial statements, the Company changed the manner in which it accounts for certain financial assets and liabilities and the manner in which its accounts for certain tax effects originally recognized in accumulated other comprehensive income in 2018 and the manner in which it accounts for certain reinsurance costs in 2017.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Significant Transactions with Related Parties

As discussed in Note 13 to the financial statements, the Company has entered into significant transactions with The Prudential Insurance Company of America, and other affiliates, who are related parties.

/s/ PricewaterhouseCoopers LLP

New York, New York

March 5, 2020

We have served as the Company's auditor since 1996.

B-72

PART C

OTHER INFORMATION

ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS:

(a) Financial Statements

(1) Financial Statements of the subaccounts of Pruco Life of New Jersey Flexible Premium Variable Annuity Account (Registrant) consisting of the Statements of Net Assets as of the dates presented, and the Statements of Operations and the Statements of Changes in Net Assets for each of the periods presented, and the Notes relating thereto appear at the end of the Statement of Additional Information (Part B of the Registration Statement).

(2) Financial Statements of Pruco Life Insurance Company of New Jersey (Depositor) consisting of the Statements of Financial Position as of December 31, 2019 and 2018, and the related Statements of Operations and Comprehensive Income, of Equity and of Cash Flows for each of the three years in the period ended December 31, 2019, including the related Notes and Financial Statement Schedule appear at the end of the Statement of Additional Information (Part B of the Registration Statement).

(b) Exhibits:

(1) Resolution of the Board of Directors of Pruco Life Insurance Company of New Jersey establishing the Pruco Life of New Jersey Flexible Premium Variable Annuity Account. (Note 2)

(2) Agreements for custody of securities and similar investments—Not Applicable.

(3) (a) Distribution and Underwriting Agreement by and among Pruco Life Insurance Company of New Jersey (Depositor) and Prudential Annuities Distributors, Inc. "PAD" (Underwriter). (Note 3)

(b) (1) Specimen Affiliated Insurer Amendment to Selling Agreement. (Note 6)

(b) (2) List of Broker Dealers selling under Original Selling Agreement. (Note 8)

(b) (3) List of Broker Dealers that executed Amendment to Selling Agreement. (Note 8)

(4)(a) Specimen Variable Annuity Contract (including schedule pages) (P-BBND(2/13)-NY). (Note 10)

(4)(b) Specimen Lifetime Income with Death Benefit Rider (P-RID-LI-DB(5/14)-NY). (Note 13)

(4)(c) Specimen Medically Related Surrender Endorsement (P-END-MRS(2/13)-NY). (Note 10)

(4)(d) Specimen Individual Retirement Annuity Endorsement P-END-IRA (2/10) - NY. (Note 9)

(4)(e) Specimen Roth Individual Retirement Annuity Endorsement P-END-ROTH (2/10) - NY. (Note 9)

(4)(f) Specimen Beneficiary Individual Retirement Annuity Endorsement P-END-IRABEN (2/10) - NY. (Note 9)

(4)(g) Specimen Beneficiary Roth Individual Retirement Annuity Endorsement P-END-ROTHBEN (2/10) - NY. (Note 9)

(4)(h) Specimen 403(b) Annuity Endorsement (P-END-403 (2/10) - NY. (Note 9)

(4)(i) Amendatory Tax Endorsement (Note 11)

(5) Application for Variable Annuity Contract (including schedule pages) (P-BBND-APP(2/13)-NY). (Note 10)

(6) (a) Articles of Incorporation of Pruco Life of New Jersey Insurance Company, as amended. (Note 4)

(b) By-laws of Pruco Life Insurance Company of New Jersey. (Note 5)

(c) Certificate of Amendment to the Certificate of Incorporation dated October 1, 2012. (Note 12)

(d) Certificate of Amendment to the Certificate of Incorporation dated September 3, 2019. (Note 15)

(7) Contracts of reinsurance -- Not applicable.

(8) Other material contracts performed in whole or in part after the date the registration statement is filed:

(a) Fund Participation Agreement dated May 1, 2005, as amended and restated June 8, 2005, by and among Pruco Life Insurance Company of New Jersey, American Skandia Trust, American Skandia Investment Services, Inc., Prudential Investments LLC, American Skandia Marketing, Inc., and Prudential Investment Management Services LLC. (Note 6)

(b) Shareholder Information Agreement (Sample Rule 22C-2). (Note 7)

(c) Amendment effective as of February 25, 2013 to Fund Participation Agreement between Advanced Series Trust, Prudential Investments LLC, AST Investment Services, Inc., Prudential Annuities Distributors, Inc., Prudential Investment Management Services LLC and Pruco Life Insurance Company of New Jersey. (Note 11)

(9) Opinion of Counsel. (Note 10)

(10) Written Consent of Independent Registered Public Accounting Firm. (Note 1)

(11) All financial statements omitted from Item 23, Financial Statements—Not Applicable.

(12) Agreements in consideration for providing initial capital between or among Registrant, Depositor, Underwriter, or initial Contract owners--Not Applicable.

(13)    Powers of Attorney:

(a) Dylan J. Tyson (Note 1)

(b) Susan M. Mann (Note 1)

(d) Nandini Mongia (Note 14)

(e) Candace J. Woods (Note 1)

(f) Salene Hitchcock-Gear (Note 1)

(g) Caroline A. Feeney (Note 1)

(Note 1) Filed Herewith.

(Note 2) Incorporated by reference to Form N-4, Registration No. 333-18117, filed December 18, 1996 on behalf of the Pruco Life of New Jersey Flexible Premium Variable Annuity Account.

(Note 3) Incorporated by reference to Post-Effective Amendment No. 9, Form N-4, Registration No. 333-131035, filed December 18, 2007 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.

(Note 4) Incorporated by reference to Form S-6, Registration No. 002-89780, filed April 28,1997 on behalf of the Pruco Life of New Jersey Variable Appreciable Account.

(Note 5) Incorporated by reference to Form S-6, Registration No. 333-85117 filed August 13, 1999 on behalf of the Pruco Life of New Jersey Variable Appreciable Account.

(Note 6) Incorporated by reference to Pre-Effective Amendment No. 1 to Registration No. 333-162678, filed February 3, 2010 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.

(Note 7) Incorporated by reference to Post-Effective Amendment No. 3, Form N-4, Registration No. 333-131035, filed April 19, 2007 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.

(Note 8) Incorporated by reference to Post-Effective Amendment No. 1 to Registration No. 333-162678, filed April 19, 2010 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.

(Note 9) Incorporated by reference to Pre-Effective Amendment No. 1 to Form N-4, Registration No. 333-162678, as filed February 3, 2010 on behalf of the Pruco Life of New Jersey Flexible Premium Variable Annuity Account.

(Note 10) Incorporated by reference to Pre-Effective Amendment No. 1 to Form N-4, Registration No. 333-184542, filed January 31, 2013 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.

(Note 11) Incorporated by reference to Post-Effective Amendment No. 1 to Form N-4, Registration No. 333-184542, filed April 12, 2013 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.

(Note 12) Incorporated by reference to the Annual Report on Form 10-K for the year ended December 31, 2013, filed March 15, 2013, on behalf of Pruco Life Insurance Company of New Jersey.

(Note 13) Incorporated by reference to Post-Effective Amendment No. 2 to Form N-4, Registration No. 333-184542, filed January 28. 2014 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.

(Note 14) Incorporated by reference to Post-Effective Amendment No. 12, Form N-4 Registration Statement No. 333-184889, filed April 8, 2019 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.

(Note 15) Incorporated by reference to the Annual Report on Form 10-K for the year ended December 31, 2019, filed March 5, 2020, on behalf of Pruco Life Insurance Company of New Jersey.

ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR (ENGAGED DIRECTLY OR INDIRECTLY, IN REGISTRANT’S VARIABLE ANNUITY BUSINESS:

NAME AND PRINCIPAL BUSINESS ADDRESS	POSITION AND OFFICES WITH DEPOSITOR
Dylan J. Tyson One Corporate Drive Shelton, Connecticut 06484-6208	President, Chief Executive Officer, and Director
Susan M. Mann 213 Washington Street Newark, New Jersey 07102-2917	Vice President, Director, Chief Accounting Officer, and Chief Financial Officer
Markus Coombs 213 Washington Street Newark, New Jersey 07102-2917	Vice President and Director
Lynn K. Stone One Corporate Drive Shelton, Connecticut 06484-6208	Vice President, Chief Legal Officer, and Secretary
Candace J. Woods 751 Broad Street Newark, New Jersey 07102-3714	Director
Salene Hitchcock-Gear 213 Washington Street Newark, New Jersey 07102-2917	Director
Caroline A. Feeney 213 Washington Street Newark, New Jersey 07102-2917	Director
Nandini Mongia 280 Trumbull Street Hartford, Connecticut 06103	Director and Treasurer
Todd Bryden 280 Trumbull Street Hartford, Connecticut 06103	Chief Actuary and Senior Vice President

ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR

REGISTRANT:

The Registrant separate account may be deemed to be under common control (or where indicated, identical to) the following separate accounts that are sponsored either by the depositor or an insurer that is an affiliate of the depositor: The Prudential Discovery Premier Group Variable Contract Account, The Prudential Variable Appreciable Account, The Prudential Individual Variable Contract Account, The Prudential Variable Contract Account GI-2, The Prudential Qualified Individual Variable Contract Account, The Prudential Variable Contract Account-24, The Prudential Discovery Select Group Variable Annuity Contract Account (separate accounts of Prudential); the Pruco Life Flexible Premium Variable Annuity Account; the Pruco Life PRUvider Variable Appreciable Account; the Pruco Life Variable Universal Account, the Pruco Life Variable Insurance Account, the Pruco Life Variable Appreciable Account, the Pruco Life Single Premium Variable Life Account, the Pruco Life Single Premium Variable Annuity Account (separate accounts of Pruco Life Insurance Company ("Pruco Life"); the Pruco Life of New Jersey Flexible Premium Variable Annuity Account; the Pruco Life of New Jersey Variable Insurance Account, the Pruco Life of New Jersey Variable Appreciable Account, the Pruco Life of New Jersey Single Premium Variable Life Account, and the Pruco Life of New Jersey Single Premium Variable Annuity Account (separate accounts of Pruco Life Insurance Company of New Jersey ("Pruco Life of New Jersey"). Pruco Life, a life insurance company organized under the laws of Arizona, is a direct wholly-owned subsidiary of The Prudential Insurance Company of America and an indirect wholly-owned subsidiary of Prudential Financial, Inc. Pruco Life of New Jersey, a life insurance company organized under the laws of New Jersey, is a direct wholly-owned subsidiary of Pruco Life, and an indirect wholly-owned subsidiary of Prudential Financial, Inc.

The subsidiaries of Prudential Financial Inc. ("PFI") are listed under Exhibit 21.1 of the Annual Report on Form 10-K of PFI (Registration No. 001-16707), filed on February 14, 2020, the text of which is hereby incorporated by reference. In addition to those subsidiaries, Prudential holds all of the voting securities of Prudential's Gibraltar Fund, Inc., a Maryland corporation, in three of its separate accounts. Prudential's Gibraltar Fund, Inc. is registered as an open-end, diversified, management investment company under the Investment Company Act of 1940 (the "Act"). The separate accounts listed above are registered as unit investment trusts under the Act. Registrant may also be deemed to be under common control with The Prudential Variable Contract Account-2, The Prudential Variable Contract Account-10, and The Prudential Variable Account Contract Account-11, (separate accounts of The Prudential Insurance Company of America which are registered as open-end, diversified management investment companies).

ITEM 27. NUMBER OF CONTRACT OWNERS: As of January 31, 2020, there were 9,097 Qualified contract owners and 3,958 Non-Qualified contract owners.

ITEM 28. INDEMNIFICATION:

The Registrant, in conjunction with certain of its affiliates, maintains insurance on behalf of any person who is or was a trustee, director, officer, employee, or agent of the Registrant, or who is or was serving at the request of the Registrant as a trustee, director, officer, employee or agent of

such other affiliated trust or corporation, against any liability asserted against and incurred by him or her arising out of his or her position with such trust or corporation.

New Jersey, being the state of organization of Pruco Life Insurance Company of New Jersey ("PLNJ"), permits entities organized under its jurisdiction to indemnify directors and officers with certain limitations. The relevant provisions of New Jersey law permitting indemnification can be found in Section 14A:3-5 of the New Jersey Statutes Annotated. The text of PLNJ's By-law, Article V, which relates to indemnification of officers and directors, is incorporated by reference to Exhibit 1A(6)(c) to Form S-6 filed August 13, 1999 on behalf of the Pruco Life of New Jersey Variable Appreciable Account.

Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended (the "Securities Act") may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

ITEM 29. PRINCIPAL UNDERWRITERS:

(a) Prudential Annuities Distributors, Inc. (PAD)

PAD serves as principal underwriter for variable annuities issued by each of Pruco Life Insurance Company, Pruco Life Insurance Company of New Jersey, and Prudential Annuities Life Assurance Corporation. Each of those insurers is part of Prudential Annuities, a business unit of Prudential Financial, that primarily issues individual variable annuity contracts. The separate accounts of those insurance companies, through which the bulk of the variable annuities are issued, are the Pruco Life Flexible Premium Variable Annuity Account, the Pruco Life of New Jersey Flexible Premium Variable Annuity Account, and Prudential Annuities Life Assurance Corporation Variable Account B.

(b) Information concerning the directors and officers of PAD is set forth below:

NAME	POSITIONS AND OFFICES WITH UNDERWRITER
James F. Mullery One Corporate Drive Shelton, Connecticut 06484-6208	President & CEO and Director
Ann Nanda One Corporate Drive Shelton, Connecticut 06484-6208	Senior Vice President and Director
Susan M. Mann 213 Washington Street Newark, New Jersey 07102-2917	Senior Vice President and Director
Dianne D. Bogoian One Corporate Drive Shelton, Connecticut 06484-6208	Senior Vice President and Director
Elizabeth Guerrera One Corporate Drive Shelton, Connecticut 06484-6208	Chief Operating Officer, Vice President and Director
Kevin M. Brayton 280 Trumbull Street Hartford, Connecticut 06103-3509	Senior Vice President and Director
Christopher J. Hagan 2101 Welsh Road Dresher, Pennsylvania 19025-5000	Vice President
Francine B. Boucher 751 Broad Street Newark, New Jersey 07102-3714	Chief Legal Officer, Vice President and Secretary
Matthew Sun 213 Washington Street Newark, New Jersey 07102-2917	Treasurer
Robert P. Smit Three Gateway Center Newark, New Jersey 07102-4061	Chief Financial Officer and Controller
William Wilcox 280 Trumbull Street Hartford, Connecticut 06103-3509	Vice President and Chief Compliance Officer
Lynn K. Stone One Corporate Drive Shelton, Connecticut 06484-6208	Vice President
Charles H. Smith 751 Broad Street Newark, New Jersey 07102-3714	AML Officer
Scott P. Haggerty One Corporate Drive Shelton, Connecticut 06484-6208	Vice President

ITEM 29. PRINCIPAL UNDERWRITERS:

(c) Commissions received by PAD during 2018 with respect to all individual annuities issued by Pruco Life of New Jersey.

NAME OF PRINCIPAL UNDERWRITER	NET UNDERWRITING DISCOUNTS AND COMMISSIONS	COMPENSATION ON REDEMPTION	BROKERAGE COMMISSIONS	COMPENSATION
Prudential Annuities Distributors, Inc.*	$77,870,844.85	$-0-	$-0-	$-0-

* PAD did not retain any of these commissions.

ITEM 30. LOCATION OF ACCOUNTS AND RECORDS

All accounts, books or other documents required to be maintained by Section 31(a) of the Investment Company Act of 1940 and the rules promulgated thereunder are maintained by the Registrant through The Prudential Insurance Company of America, at its offices in Shelton, Connecticut and Fort Washington, Pennsylvania.

ITEM 31. MANAGEMENT SERVICES

Summary of any contract not discussed in Part A and Part B of the registration statement under which management-related services are provided to the Registrant—Not applicable.

ITEM 32. UNDERTAKINGS

(a) Registrant undertakes to file a post-effective amendment to this Registrant Statement as frequently as is necessary to ensure that the audited financial statements in the Registration Statement are never more than 16 months old for so long as payments under the variable annuity contracts may be accepted.

(b) Registrant undertakes to include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a statement of additional information, or (2) a postcard or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a statement of additional information.

(c) Registrant undertakes to deliver any statement of additional information and any financial statements required to be made available under this Form promptly upon written or oral request.

(d) Restrictions on withdrawal under Section 403(b) Contracts are imposed in reliance upon, and in compliance with, a no-action letter issued by the Chief of the Office of Insurance Products and Legal Compliance of the U.S. Securities and Exchange Commission to the American Council of Life Insurance on November 28, 1988.

(e) Pruco Life of New Jersey hereby represents that the fees and charges deducted under the contracts described in this Registration Statement are in the aggregate reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Pruco Life of New Jersey.

EXHIBITS

Exhibit No.	Description
(1)	Resolution of the Board of Directors of Pruco Life Insurance Company establishing the Pruco Life Flexible Premium Variable Annuity Account. Incorporated by reference to Form N-4, Registration No. 333-18117, filed December 18, 1996 on behalf of the Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(3) (a)	Distribution and Principal Underwriting Agreement by and among Pruco Life Insurance Company (Depositor) and Prudential Annuities Distributors, Inc. "PAD" (Underwriter). Incorporated by reference to Post-Effective Amendment No. 9, Form N-4, Registration No. 333-131035, filed December 18, 2007 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(b) (1)	Specimen Affiliated Insurer Amendment to Selling Agreement. Incorporated by reference to Pre-Effective Amendment No. 1 to Registration No. 333-162678, filed February 3, 2010 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(b) (2)	List of Broker Dealers selling under Original Selling Agreement. Incorporated by reference to Post-Effective Amendment No. 1 to Registration No. 333-162678, filed April 19, 2010 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(b) (3)	List of Broker Dealers that executed Amendment to Selling Agreement. Incorporated by reference to Post-Effective Amendment No. 1 to Registration No. 333-162678, filed April 19, 2010 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(4) (a)	Specimen Variable Annuity Contract (including schedule pages) (P-BBND(2/13)-NY). Incorporated by reference to Pre-Effective Amendment No. 1 to Form N-4, Registration No. 333-184542, filed January 31, 2013 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(b)	Specimen Lifetime Income with Death Benefit Rider (P-RID-LI-DB(5/14)-NY). Incorporated by reference to Post-Effective Amendment No. 2 to Form N-4, Registration No. 333-184542, filed January 28. 2014 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(c)	Specimen Medically Related Surrender Endorsement (P-END-MRS(2/13)-NY). Incorporated by reference to Pre-Effective Amendment No. 1 to Form N-4, Registration No. 333-184542, filed January 31, 2013 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(d)	Specimen Individual Retirement Annuity Endorsement P-END-IRA (2/10) - NY. Incorporated by reference to Pre-Effective Amendment No. 1 to Form N-4, Registration No. 333-162678, as filed February 3, 2010 on behalf of the Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(e)	Specimen Roth Individual Retirement Annuity Endorsement P-END-ROTH (2/10) - NY. Incorporated by reference to Pre-Effective Amendment No. 1 to Form N-4, Registration No. 333-162678, as filed February 3, 2010 on behalf of the Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(f)	Specimen Beneficiary Individual Retirement Annuity Endorsement P-END-IRABEN (2/10) - NY. Incorporated by reference to Pre-Effective Amendment No. 1 to Form N-4, Registration No. 333-162678, as filed February 3, 2010 on behalf of the Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(g)	Specimen Beneficiary Roth Individual Retirement Annuity Endorsement P-END-ROTHBEN (2/10) - NY. Incorporated by reference to Pre-Effective Amendment No. 1 to Form N-4, Registration No. 333-162678, as filed February 3, 2010 on behalf of the Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(h)	Specimen 403(b) Annuity Endorsement (P-END-403 (2/10) - NY. Incorporated by reference to Pre-Effective Amendment No. 1 to Form N-4, Registration No. 333-162678, as filed February 3, 2010 on behalf of the Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(i)	Amendatory Tax Endorsement. Incorporated by reference to Post-Effective Amendment No. 1 to Form N-4, Registration No. 333-184542, filed April 12, 2013 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(5)	Application for Variable Annuity Contract (including schedule pages) (P-BBND-APP(2/13)-NY). Incorporated by reference to Pre-Effective Amendment No. 1 to Form N-4, Registration No. 333-184542, filed January 31, 2013 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.

(6) (a)	Articles of Incorporation of Pruco Life Insurance Company, as amended through October 19, 1993. Incorporated by reference to Form N-4, Registration No. 333-06701, filed June 24, 1996 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.
(b)	By-laws of Pruco Life Insurance Company, as amended through May 6, 1997. Incorporated by reference to Form 10-Q, as filed August 15, 1997, on behalf of Pruco Life Insurance Company.
(c)	Certificate of Amendment to the Certificate of Incorporation dated October 1, 2012. Incorporated by reference to the Annual Report on Form 10-K for the year ended December 31, 2013, filed March 15, 2013, on behalf of Pruco Life Insurance Company of New Jersey.
(d)	Certificate of Amendment to the Certificate of Incorporation dated September 3, 2019. Incorporated by reference to the Annual Report on Form 10-K for the year ended December 31, 2019, filed March 5, 2020, on behalf of Pruco Life Insurance Company of New Jersey.
(8)(a)	Fund Participation Agreement dated May 1, 2005, as amended and restated June 8, 2005, by and among Pruco Life Insurance Company of New Jersey, American Skandia Trust, American Skandia Investment Services, Inc., Prudential Investments LLC, American Skandia Marketing, Inc., and Prudential Investment Management Services LLC. Incorporated by reference to Pre-Effective Amendment No. 1 to Registration No. 333-162678, filed February 3, 2010 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(8)(b)	Shareholder Information Agreement (Sample Rule 22C-2). Incorporated by reference to Post-Effective Amendment No. 3, Form N-4, Registration No. 333-131035, filed April 19, 2007 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(8)(c)	Amendment effective as of February 25, 2013 to Fund Participation Agreement between Advanced Series Trust, Prudential Investments LLC, AST Investment Services, Inc., Prudential Annuities Distributors, Inc., Prudential Investment Management Services LLC and Pruco Life Insurance Company of New Jersey. Incorporated by reference to Post-Effective Amendment No. 1 to Form N-4, Registration No. 333-184542, filed April 12, 2013 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(9)	Opinion of Counsel. Incorporated by reference to Pre-Effective Amendment No. 1 to Form N-4, Registration No. 333-184542, filed January 31, 2013 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(10)	Written Consent of Independent Registered Public Accounting Firm. Filed Herewith.
(13) (a)	Power of Attorney for Dylan J. Tyson. Filed Herewith.
(13) (b)	Power of Attorney for Susan M. Mann. Filed Herewith.
(13) (d)	Power of Attorney for Nandini Mongia. Incorporated by reference to Post-Effective Amendment No. 12 to Registration No. 333184889, filed April 8, 2019 on behalf of Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(13) (e)	Power of Attorney for Candace J. Woods. Filed Herewith.
(13) (f)	Power of Attorney for Salene Hitchcock-Gear. Filed Herewith.
(13) (g)	Power of Attorney for Caroline A. Feeney. Filed Herewith.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets the requirements of Securities Act Rule 485(b) for effectiveness of this Registration Statement, and has duly caused this post-effective amendment to be signed on its behalf in the City of Newark and the State of New Jersey on this 7th day of April 2020.

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

REGISTRANT

BY: PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

DEPOSITOR

By:	Dylan J. Tyson*
	Dylan J. Tyson President and Chief Executive Officer

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

DEPOSITOR

By:	Dylan J. Tyson*
	Dylan J. Tyson President and Chief Executive Officer

SIGNATURES

As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the date indicated.

SIGNATURE	TITLE
Dylan J. Tyson*	Director, President and Chief Executive Officer	April 7, 2020
Dylan J. Tyson
Susan M. Mann*	Chief Financial Officer, Chief Accounting Officer, Vice President and Director (Principal Accounting Officer)	April 7, 2020
Susan M. Mann
	Director
Markus Coombs
Nandini Mongia*	Director	April 7, 2020
Nandini Mongia
Candace J. Woods*	Director	April 7, 2020
Candace J. Woods
Salene Hitchcock-Gear*	Director	April 7, 2020
Salene Hitchcock-Gear
Caroline A. Feeney*	Director	April 7, 2020
Caroline A. Feeney

By:	/s/ Douglas E. Scully
	Douglas E. Scully

* Executed by Douglas E. Scully on behalf of those indicated pursuant to Power of Attorney.