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 Universal Reinsurance Company ("PURC"), Prudential Term Reinsurance Company (“Term Re”), Gibraltar Universal Life Reinsurance Company ("GUL Re"), Dryden Arizona Reinsurance Term Company (“DART”), Lotus Re, and PALAC, a former subsidiary of Prudential Financial that was sold to Fortitude on April 1, 2022, which is discussed in Note 1. The Company also participates in reinsurance with its parent company 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 YRT 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.

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.

Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on reinsurance are recorded within “Other assets” and the corresponding funds withheld liability for assets retained under these reinsurance agreements are recorded within “Other liabilities.” Balances associated with these agreements are included in the tables below.

"Change in value of market risk benefits, net of related hedging gain (loss)" include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. The Company has entered into reinsurance agreements to transfer the risk related to the living benefit guarantees on variable annuities within the PLNJ business to Prudential Insurance. These reinsurance agreements are market risk benefits and have been accounted for in the same manner. See Note 4 for additional information related to the accounting for market risk benefits.


	September 30, 2023		December 31, 2022
	(in thousands)
Reinsurance recoverables(1)	$	36,860,011	$	37,096,562
Policy loans	(1,073,903)		(1,011,112)
Deferred policy acquisition costs(1)	(3,236,759)		(3,343,270)
Deferred sales inducements(1)	(36,080)		(38,146)
Market risk benefit assets(1)	1,108,690		543,177
Other assets(1)	1,851,596		1,146,794
Policyholders’ account balances(1)	6,026,901		7,157,639
Future policy benefits(1)	6,672,884		6,320,863
Market risk benefit liabilities(1)	286,622		120,916
Other liabilities(1)	4,039,544		2,891,433


	September 30, 2023		December 31, 2022(1)
	(in thousands)
PAR U	$	15,272,691	$	15,051,337

PURC	7,169,637		6,928,950
PARCC	2,237,002		2,437,589
GUL Re	3,096,035		3,124,697
PAR Term	1,902,278		2,040,599
Prudential Insurance	1,112,606		986,013

Term Re	1,829,064		1,830,197
Lotus Re	2,034,218		1,952,215
DART	604,117		578,462
Unaffiliated	1,602,363		2,166,503
Total reinsurance recoverables	$	36,860,011	$	37,096,562


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in thousands)
Premiums:
Direct(1)	$	457,967	$	462,478	$	1,396,506	$	1,406,822
Assumed	32		(2,653)		(90)		(10,730)
Ceded(1)	(372,859)		(398,109)		(1,144,655)		(1,210,547)
Net premiums(1)	85,140		61,716		251,761		185,545
Policy charges and fee income:
Direct(1)	753,291		746,814		2,238,266		2,295,350
Assumed(1)	151,927		149,564		453,006		455,114
Ceded(1)	(558,737)		(526,432)		(1,594,764)		(1,892,583)
Net policy charges and fee income(1)	346,481		369,946		1,096,508		857,881
Net investment income:
Direct	463,070		226,827		1,216,154		617,818
Assumed	338		349		1,024		1,167
Ceded	(2,544)		(16,414)		(13,789)		(36,795)
Net investment income	460,864		210,762		1,203,389		582,190
Asset administration fees:
Direct	81,422		84,959		242,730		271,071
Assumed	0		0		0		0
Ceded	(24,668)		(16,405)		(64,986)		(51,495)
Net asset administration fees	56,754		68,554		177,744		219,576
Other income (loss):
Direct	(89,144)		(181,634)		216,247		(855,885)
Assumed	116		3,059		(233)		550
Ceded(1)	25,473		17,168		70,736		60,206

Net Other income (loss)(1)	(63,555)		(161,407)		286,750		(795,129)
Realized investment gains (losses), net:
Direct(1)	(492,184)		(44,847)		(826,822)		1,080,351
Assumed(1)	(31,544)		122,364		189,400		(363,266)
Ceded(1)	55,472		19,754		56,181		93,686
Realized investment gains (losses), net(1)	(468,256)		97,271		(581,241)		810,771
Change in value of market risk benefits, net of related hedging gain (loss):
Direct(1)	(54,544)		29,320		152,660		(698,317)
Assumed(1)	283		0		(3,160)		0
Ceded(1)	(193,210)		(109,398)		(415,656)		(537,098)
Net change in value of market risk benefits, net of related hedging gain (loss)(1)	(247,471)		(80,078)		(266,156)		(1,235,415)
Policyholders’ benefits (including change in reserves):
Direct(1)	912,588		880,240		2,639,868		2,460,564
Assumed(1)	336,300		289,093		985,635		868,301
Ceded(1)	(1,103,479)		(1,081,648)		(3,227,951)		(2,961,322)
Net policyholders’ benefits (including change in reserves)(1)	145,409		87,685		397,552		367,543


	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
Change in estimates of liability for future policy benefits:
Direct(1)	(44,155)	(69,944)	(61,510)	1,748,781
Assumed(1)	(17,580)	(12,640)	8,071	676,754
Ceded(1)	68,300	79,649	54,469	(2,382,670)
Net change in estimates of liability for future policy benefits(1)	6,565	(2,935)	1,030	42,865
Interest credited to policyholders’ account balances:
Direct(1)	228,399	259,175	666,947	593,160
Assumed	33,602	(52,300)	100,065	49,803
Ceded(1)	(98,927)	(109,226)	(299,900)	(324,377)
Net interest credited to policyholders’ account balances(1)	163,074	97,649	467,112	318,586
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization(1)	(57,368)	146,690	(280,393)	(71,962)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022(1)		2023		2022(1)
	(in thousands)
Premiums:
Assumed(2)	$	32	$	(2,653)	$	(100)	$	(16,061)
Ceded(2)	(13,942)		(10,036)		(47,319)		(32,606)

Policy charges and fee income:
Assumed	460		1,929		1,383		13,350
Ceded	(39,143)		(21,196)		(101,419)		(59,453)

Net investment income:
Ceded	10,109		(4,122)		23,022		195

Asset administration fees:
Ceded	(7,464)		0		(15,204)		0

Other income (loss):
Assumed	185		3,059		(53)		549
Ceded	7,887		1,622		17,540		1,622

Realized investment gains (losses), net:
Assumed	(31,544)		122,365		189,400		(159,280)
Ceded(2)	41,007		19,601		40,378		92,377

Change in value of market risk benefits, net of related hedging gain (loss):
Assumed(2)	283		0		(3,160)		0
Ceded(2)	(70,693)		(20,174)		(150,791)		(106,676)

Policyholders’ benefits (including change in reserves):
Assumed	265		587		545		1,941
Ceded(2)	(42,655)		(18,206)		(106,475)		(61,248)

Change in estimates of liability for future policy benefits:
Ceded	(1,407)		0		(1,823)		(6,594)

Interest credited to policyholders’ account balances:
Assumed	3,651		(83,932)		8,750		(86,713)
Ceded	85		0		0		0

Effective April 1, 2016, the Company entered into a reinsurance agreement to reinsure its variable annuity base contracts, along with the living benefit guarantees to PALAC, excluding the PLNJ business, which was reinsured to Prudential Insurance. This reinsurance agreement excluded business reinsured externally. As of December 31, 2020, the Company discontinued the sales of traditional variable annuities with guaranteed living benefit riders. This discontinuation had no impact on the reinsurance agreement between PALAC, Prudential Insurance, and the Company.

Effective July 1, 2021, the Company recaptured the risks related to its business, as discussed above, that had previously been reinsured to PALAC from April 1, 2016 through June 30, 2021. The recapture did not impact PLNJ, which continued to reinsure its business to Prudential Insurance. The product risks related to the previously reinsured business that were being managed in PALAC, were transferred to the Company. In addition, the living benefit hedging program related to the previously reinsured living benefit riders were being managed within the Company.

Pruco Life reinsures an amount equal to 70% of all the risks associated with its Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates from January 1, 2011 through December 31, 2013, with PURC and 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates from January 1, 2014 through December 31, 2016.

Prior to July 1, 2019, the Company reinsured 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. Effective July 1, 2019, the Company amended the coinsurance agreement to increase the percentage from 90% to 100% of the policy risk amount reinsured. The amended agreement does not impact contracts issued by PLNJ, which remain at the original percentage.

Effective January 1, 2017, Pruco Life entered into an automatic coinsurance agreement with GUL Re to reinsure an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates on or after January 1, 2017 through December 31, 2019, excluding those policies that are subject to principle-based reserving.

Prior to July 1, 2019, 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. Effective July 1, 2019, the Company amended the coinsurance agreement to increase the percentage from 95% to 100% of the policy risk amount reinsured. The amended agreement does not impact contracts issued by PLNJ, which remain at the original percentage.

The Company has a YRT reinsurance agreement with Prudential Insurance and reinsures the majority of all mortality risks not otherwise reinsured. This agreement was terminated for new business effective January 1, 2020, with certain new business (primarily universal life policies) terminated as early as 2017. The Company now reinsures a portion of the mortality risk directly to third-party reinsurers and retains all of the non-reinsured portion of the mortality risk. Effective July 1, 2019, certain term life insurance policies were recaptured and subsequently reinsured to PARCC and PAR Term as noted above. As of January 1, 2022, most of the variable life insurance policies were recaptured resulting in a $305 million loss recorded through "Policy charges and fee income." Those policies were then reinsured to Lotus Re as mentioned below.

On January 2, 2013, Pruco Life began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Financial Services Group, Inc. ("Hartford Financial"). The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U. In May 2018, Hartford Financial sold a group of operating subsidiaries, which includes two of Prudential Insurance's counterparties to these reinsurance arrangements. There was no impact to the terms, rights or obligations of Prudential Insurance, or operation of these reinsurance arrangements, as a result of this change in control of such counterparties. Similarly, there was no impact to the Company's reinsurance arrangements with respect to such GUL business as a result of this change in control. In January 2021, there was a definitive agreement announced to subsequently sell the two counterparties mentioned above, which were then acquired by Sixth Street in July 2021. There was no impact to the terms, rights or obligations of the Company, or operation of these reinsurance arrangements, as a result of this change in control of such counterparties.

Effective April 1, 2016, PLNJ entered into a reinsurance agreement to reinsure its variable annuity base contracts, along with the living benefit guarantees to Prudential Insurance. This reinsurance agreement covers new and in force business. Effective February 1, 2023, PLNJ began selling indexed variable annuities products, which is reinsured to Prudential Insurance through the existing reinsurance agreement. The reinsurance of the indexed variable annuities transfers all significant risks, including mortality risk, embedded in the reinsured contracts to Prudential Insurance. As a result of the agreement, reinsurance payables includes the ceded modified coinsurance arrangement, which reflects the value of the invested assets retained by the Company and the associated asset returns.

Effective January 1, 2022 the Company recaptured the risks that were previously ceded to Lotus Re from October 1, 2021 through December 31, 2021. Immediately thereafter, the Company entered into a reinsurance agreement with Lotus Re to cede 100% of the risks associated with a closed block of variable life business on a coinsurance and modified coinsurance basis including policies in the extended term policy status. The amount of the net liabilities associated with the transaction for coinsurance and modified coinsurance were $1,387 million and $14,037 million, respectively. As part of the consideration, the Company also ceded to Lotus Re $855 million of policy loan assets associated with the reinsured policies while receiving $820 million in cash from Lotus Re. As a result, the Company recorded a $1,352 million deferred gain, which will be recognized over the remaining life of the underlying policies. In tandem with the transaction, effective January 1, 2022, Lotus Re established an automatic YRT agreement with the Company to cede back a portion of the mortality risks associated with the reinsured policies for the purposes of the Company maintaining YRT reinsurance with external counterparties.

Effective April 1, 2023, the Company entered into an agreement with Ohio National, an affiliate of Constellation Insurance Holdings, Inc., to reinsure approximately $10 billion of account values of PDI traditional variable annuity contracts with guaranteed living benefits. This block represents approximately 10% of the Company’s remaining legacy in force traditional variable annuity block by account value. The Company ceded 100% of separate account liabilities under modified coinsurance and 100% of general account liabilities under coinsurance of its PDI traditional variable annuity contracts. The general account liabilities associated with PDI's guaranteed living and death benefits and the corresponding reinsurance of those liabilities are accounted for as market risk benefits. As a result of the transaction, the Company recognized a $277 million deferred reinsurance gain that will be amortized into income over the estimated remaining life of the reinsured policies.

Effective December 1, 2021, the Company entered into a reinsurance agreement with FLIAC under which the Company assumed all of its indexed variable annuities under modified coinsurance. The reinsurance of the indexed variable annuities transfers all significant risks, including mortality risk, embedded in the reinsured contracts to the Company. As a result of the agreement, "Reinsurance recoverables" includes the assumed modified coinsurance receivable, which reflects the value of the invested assets retained by FLIAC and the associated asset returns. The Company also assumed via coinsurance all of FLIAC’s fixed indexed annuities and fixed annuities with a guaranteed lifetime withdrawal income feature which are accounted for under deposit accounting. The reinsurance agreement offers the policyholders the opportunity to novate their contracts from FLIAC to the Company and any such novated contracts shall cease to be reinsured under this agreement. As of September 30, 2023, the total account value of contracts novated from FLIAC to the Company were $5.3 billion for indexed variable annuities contracts and $2.0 billion for fixed annuities and fixed indexed annuities contracts, which is approximately 80% of the total reinsured block.

Between April 1, 2015 and December 31, 2016, the Company, excluding its subsidiary, reinsured approximately 50% of the new business related to “highest daily” living benefits rider guarantees on HDI v.3.0 product, available with Prudential Premier® Retirement Variable Annuity, to Union Hamilton Reinsurance Ltd. ("Union Hamilton"). This reinsurance remains in force for the duration of the underlying annuity contracts. New sales of HDI v.3.0 subsequent to December 31, 2016 are not covered by this external reinsurance agreement. As of September 30, 2023, $2.3 billion of HDI v.3.0 account values are reinsured to Union Hamilton.