Schedule II - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Schedule II - Condensed Financial Information of Registrant

PRUCO LIFE INSURANCE COMPANY

Schedule II

Condensed Financial Information of Registrant

Condensed Statements of Financial Positions

December 31, 2023 and 2022 (in thousands, except share amounts)

	December 31, 2023		December 31, 2022
ASSETS
Fixed maturities, available-for-sale, at fair value (allowance for credit losses: 2023 – $2,004; 2022 – $4,406) (amortized cost: 2023 – $24,872,031; 2022 – $19,320,369)	$	23,662,832	$	17,305,913
Fixed maturities, trading, at fair value (amortized cost: 2023 – $3,451,001; 2022 – $2,654,456)	2,773,006		1,912,377
Equity securities, at fair value (cost: 2023 – $819,617; 2022 – $143,565)	840,335		138,714
Policy loans	357,581		293,304
Short-term investments	374,407		117,491
Commercial mortgage and other loans (net of $36,527 and $19,855 allowance for credit losses at December 31, 2023 and December 31, 2022, respectively)	5,883,092		4,780,501
Other invested assets (includes $80,638 and $113,721 of assets measured at fair value at December 31, 2023 and 2022, respectively)	1,073,038		959,085
Total investments	34,964,291		25,507,385
Cash and cash equivalents	1,953,388		2,141,860
Deferred policy acquisition costs	6,704,372		6,578,551
Accrued investment income	279,567		194,413
Reinsurance recoverables	35,163,935		34,033,034
Investment in subsidiaries	1,434,641		1,026,655
Receivables from parent and affiliates	308,635		206,127
Deferred sales inducements	351,424		381,504
Income tax assets	1,670,376		1,627,136
Market risk benefit assets	1,829,584		834,613
Other assets	2,051,898		1,290,499
Separate account assets	105,111,382		100,124,288
TOTAL ASSETS	$	191,823,493	$	173,946,065
LIABILITIES AND EQUITY
LIABILITIES
Policyholders’ account balances	$	48,976,616	$	39,138,221
Future policy benefits	20,864,146		18,733,638
Market risk benefit liabilities	4,606,742		4,962,977
Cash collateral for loaned securities	218,310		86,750
Short-term debt to affiliates	180,411		126,250
Long-term debt to affiliates	0		185,563
Payables to parent and affiliates	2,658,870		2,119,579
Other liabilities	4,715,785		3,432,604
Separate account liabilities	105,111,382		100,124,288
Total liabilities	187,332,262		168,909,870
EQUITY
Common stock ($10 par value; 1,000,000 shares authorized; 250,000 shares issued and 250,000 outstanding)	2,500		2,500
Additional paid-in capital	5,052,602		6,037,914
Retained earnings / (accumulated deficit)	(532,951)		(994,154)
Accumulated other comprehensive income (loss)	(30,920)		(10,065)
Total equity	4,491,231		5,036,195
TOTAL LIABILITIES AND EQUITY	$	191,823,493	$	173,946,065

See Notes to Condensed Financial Information of Registrant

PRUCO LIFE INSURANCE COMPANY

Schedule II

Condensed Financial Information of Registrant

Condensed Statements of Operations and Comprehensive Income (Loss)

Years Ended December 31, 2023, 2022 and 2021 (in thousands)

	2023		2022		2021
REVENUES
Premiums	$	289,344	$	231,500	$	155,709
Policy charges and fee income	1,476,927		1,172,867		1,227,933
Net investment income	1,507,280		785,609		449,744
Asset administration fees	223,803		275,702		193,302
Other income (loss)	741,052		(649,316)		261,639
Realized investment gains (losses), net	(1,039,350)		322,547		(387,409)
Change in value of market risk benefits, net of related hedging gain (loss)	(157,160)		(558,535)		(4,262,200)
TOTAL REVENUES	3,041,896		1,580,374		(2,361,282)
BENEFITS AND EXPENSES
Policyholders’ benefits	448,286		430,184		41,931
Change in estimates of liability for future policy benefits	6,067		38,468		24,189
Interest credited to policyholders’ account balances	591,310		397,637		(194,393)
Amortization of deferred policy acquisition costs	513,863		500,986		307,397
General, administrative and other expenses	1,100,663		1,099,599		(574,501)
TOTAL BENEFITS AND EXPENSES	2,660,189		2,466,874		(395,377)
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES AND OPERATING JOINT VENTURE	381,707		(886,500)		(1,965,905)
Income tax expense (benefit)	16,915		(264,761)		(485,879)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES AND OPERATING JOINT VENTURE	364,792		(621,739)		(1,480,026)
Equity in earnings of subsidiaries	96,844		(69,829)		84,623
Equity in earnings of operating joint venture, net of taxes	(433)		(75,137)		702
NET INCOME (LOSS)	$	461,203	$	(766,705)	$	(1,394,701)
Other comprehensive income (loss), before tax:
Net unrealized investment gains (losses)	632,819		(1,877,552)		(143,225)
Interest rate remeasurement of future policy benefits	(50,679)		250,486		23,870
Gain (loss) from changes in non-performance risk on market risk benefits	(597,083)		1,298,259		(395,563)
Other	(11,539)		(183,909)		(97,417)
Total	(26,482)		(512,716)		(612,335)
Less: Income tax expense (benefit) related to other comprehensive income (loss)	(5,627)		(106,197)		(128,241)
Other comprehensive income (loss), net of taxes	(20,855)		(406,519)		(484,094)
Total comprehensive income (loss)	$	440,348	$	(1,173,224)	$	(1,878,795)

See Notes to Condensed Financial Information of Registrant

PRUCO LIFE INSURANCE COMPANY

Schedule II

Condensed Financial Information of Registrant

Condensed Statements of Cash Flows

Years Ended December 31, 2023, 2022 and 2021 (in thousands)

	2023		2022		2021
Net cash flows from (used in) operating activities	$	2,365,722	$	1,813,780	$	(1,014,479)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale	1,622,501		1,586,432		1,150,169
Fixed maturities, trading	95,872		901,690		914,082
Equity securities	189,210		242,247		100,151
Policy loans	152,275		140,937		144,925
Ceded policy loans	(117,589)		(110,477)		(11,560)
Short-term investments	444,983		622,072		221,613
Commercial mortgage and other loans	157,116		178,564		258,743
Other invested assets	17,405		57,335		296,278
Payments for the purchase/origination of:
Fixed maturities, available-for-sale	(6,762,400)		(6,674,455)		(2,278,457)
Fixed maturities, trading	(857,717)		(425,267)		(97,523)
Equity securities	(678,790)		(281,502)		(98,122)
Policy loans	(236,886)		(122,982)		(104,528)
Ceded policy loans	147,961		69,369		10,391
Short-term investments	(679,224)		(551,161)		(307,596)
Commercial mortgage and other loans	(1,239,173)		(1,024,697)		(561,310)
Other invested assets	(174,680)		(149,837)		(125,329)
Capital contributions to subsidiaries	(323,909)		(325,000)		(100,000)
Other, net	(56,531)		(316,170)		(68,135)
Cash flows from (used in) investing activities	(8,299,576)		(6,182,902)		(656,208)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders’ account deposits	10,508,549		9,500,054		5,130,649
Ceded policyholders’ account deposits	(870,031)		(902,233)		(817,978)
Policyholders’ account withdrawals	(3,287,164)		(3,343,369)		(3,413,219)
Ceded policyholders’ account withdrawals	360,211		398,101		78,517
Contributed / (return of) capital	(995,000)		0		776,657
Other, net	28,817		75,814		340,224
Cash flows from (used in) financing activities	5,745,382		5,728,367		2,094,850
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(188,472)		1,359,245		424,163
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	2,141,860		782,615		358,452
CASH AND CASH EQUIVALENTS, END OF YEAR	$	1,953,388	$	2,141,860	$	782,615
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid (refund)	$	57,749	$	61,613	$	384,472
Interest paid	$	4,377	$	7,863	$	6,323

Significant Non-Cash Transactions

Refer to the Consolidated Statements of Cash Flows included in Part II, Item 8 of this Annual Report on Form 10-K as the items listed were related to Pruco Life Insurance Company.

See Notes to Condensed Financial Information of Registrant

PRUCO LIFE INSURANCE COMPANY

Schedule II

Condensed Financial Information of Registrant

Notes to Condensed Financial Information of Registrant

1.ORGANIZATION AND PRESENTATION

Pruco Life Insurance Company, (“Pruco Life”) is a wholly-owned subsidiary of The Prudential Insurance Company of America, which in turn is a direct wholly-owned subsidiary of Prudential Financial, Inc. Pruco Life is a stock life insurance company organized in 1971 under the laws of the State of Arizona. It is licensed to sell life insurance and annuities in the District of Columbia, Guam and in all states except New York, and sells such products primarily through affiliated and unaffiliated distributors.

The condensed financial information of Pruco Life should be read in conjunction with the consolidated financial statements of Pruco Life and its subsidiaries and the notes thereto (the “Consolidated Financial Statements”). The condensed financial statements of Pruco Life reflect its direct wholly-owned subsidiary and majority-owned subsidiaries using the equity method of accounting.