The Company participates in reinsurance with its affiliates Prudential Arizona Reinsurance Captive Company (“PARCC”), Prudential Arizona Reinsurance Term Company (“PAR Term”), PAR U, PURE, Prudential Term Reinsurance Company (“Term Re”), Dryden Arizona Reinsurance Term Company (“DART”), Lotus Reinsurance Company Ltd. (“Lotus Re”), PALAC, a former subsidiary of Prudential Financial that was sold to Fortitude on April 1, 2022, and prior to January 1, 2024 with its affiliates Prudential Universal Reinsurance Company (“PURC”) and Gibraltar Universal Life Reinsurance Company (“GUL Re”). 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 yearly renewable term (“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.

Effective January 2024, the Company entered into an agreement with Somerset Reinsurance Ltd. (“Somerset Re”) to coinsure a closed block of guaranteed universal life (“GUL”) policies to PURE, a wholly-owned subsidiary of Prudential Insurance, with retrocession by PURE of such liabilities on a modified coinsurance basis, to Somerset Re. This transaction is effective as of January 1, 2024, whereby, the Company recaptured all risks associated with the subject GUL policies from PAR U, PURC and GUL Re and subsequently established YRT reinsurance for the subject GUL business with Prudential Insurance. As a result of the transactions, the Company recognized a $971 million pre-tax recapture loss and a $1,186 million DRG that will be amortized into income over the estimated remaining life of the reinsured policies.

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.


	March 31, 2024		December 31, 2023
	(in thousands)
Reinsurance recoverables	$	41,060,869	$	38,709,651
Policy loans	(1,094,070)		(1,082,584)
Deferred policy acquisition costs	(3,190,663)		(3,195,161)
Deferred sales inducements	(34,683)		(35,313)
Market risk benefit assets	1,064,022		1,165,378
Other assets	2,198,467		1,897,410
Policyholders’ account balances	5,901,708		5,977,108
Future policy benefits	7,109,698		7,026,209
Market risk benefit liabilities	302,169		249,538
Other liabilities	7,655,980		4,397,862


	March 31, 2024		December 31, 2023
	(in thousands)
Deferred policy acquisition costs	$	68,424	$	71,315
Market risk benefit assets	715,512		745,662
Other assets	2,099,315		1,795,422
Policyholders’ account balances	1,817,895		1,830,579
Future policy benefits	130		453
Market risk benefit liabilities	157,687		131,594
Other liabilities	2,179,341		1,915,205


	March 31, 2024		December 31, 2023
	(in thousands)
PAR U	$	18,857,410	$	15,722,061
PURC	0		7,565,968
PARCC	2,212,090		2,304,270
GUL Re	0		3,211,899
PAR Term	2,048,613		2,101,004
Prudential Insurance	4,039,611		1,311,525
Term Re	2,040,735		2,080,564
Lotus Re	2,062,495		2,051,831
DART	779,290		744,043
PURE	7,445,335		0
Unaffiliated	1,575,290		1,616,486
Total reinsurance recoverables	$	41,060,869	$	38,709,651


	Three Months Ended March 31,
		2024		2023
		(in thousands)
Premiums:
Direct		$	459,628	$	462,067
Assumed		33		(156)
Ceded		(367,479)		(385,255)
Net premiums		92,182		76,656
Policy charges and fee income:
Direct		771,189		735,938
Assumed		258,770		152,600
Ceded		1,898,786		(502,047)
Net policy charges and fee income		2,928,745		386,491
Net investment income:
Direct		519,052		350,323
Assumed		330		343
Ceded		(14,062)		(1,216)
Net investment income(1)		505,320		349,450
Asset administration fees:
Direct		82,688		80,356
Assumed		0		0
Ceded		(26,056)		(16,154)
Net asset administration fees		56,632		64,202
Other income (loss):
Direct		44,816		225,734
Assumed		325		(293)
Ceded		168,344		19,406

Net other income (loss)(1)		213,485		244,847
Realized investment gains (losses), net:
Direct		98,442		(245,923)
Assumed		(9,167)		138,666
Ceded		19,368		(13,422)
Realized investment gains (losses), net(1)		108,643		(120,679)
Change in value of market risk benefits, net of related hedging gain (loss):
Direct		313,886		33,120
Assumed		(466)		(6,217)
Ceded		(221,829)		(6,701)
Net change in value of market risk benefits, net of related hedging gain (loss)		91,591		20,202
Policyholders’ benefits (including change in reserves):
Direct		951,647		878,785
Assumed		287,411		317,287
Ceded		2,852,743		(1,090,890)
Net policyholders’ benefits (including change in reserves)(1)		4,091,801		105,182


	Three Months Ended March 31,
		2024	2023
Change in estimates of liability for future policy benefits:
Direct		139,586	(48,501)
Assumed		(9,510)	1,807
Ceded		(142,081)	42,292
Net change in estimates of liability for future policy benefits		(12,005)	(4,402)
Interest credited to policyholders’ account balances:
Direct		278,098	222,575
Assumed		46,148	38,506
Ceded		(99,988)	(100,859)
Net interest credited to policyholders’ account balances		224,258	160,222
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization		(390,041)	(117,830)


	Three Months Ended March 31,
		2024		2023
		(in thousands)
Premiums:
Assumed		$	30	$	(166)
Ceded		(25,152)		(16,575)

Policy charges and fee income:
Assumed		272		540
Ceded		(42,012)		(23,938)

Net investment income(1):
Ceded		0		10,920

Asset administration fees:
Ceded		(7,316)		0

Other income (loss)(1):
Assumed		429		(293)
Ceded		21,804		1,622

Realized investment gains (losses), net(1):
Assumed		(9,167)		138,666
Ceded		25,225		(14,581)

Change in value of market risk benefits, net of related hedging gain (loss):
Assumed		(466)		(6,217)
Ceded		(98,008)		(4,773)

Policyholders’ benefits (including change in reserves)(1):
Assumed		333		91
Ceded		(146,828)		(27,702)

Change in estimates of liability for future policy benefits:
Ceded		91,873		0

Interest credited to policyholders’ account balances:
Assumed		17,459		7,469

The gross and net amounts of life insurance face amount in force as of March 31, 2024 and 2023 were as follows:


	2024		2023
	(in thousands)
Direct gross life insurance face amount in force	$	1,136,350,824	$	1,098,986,043
Assumed gross life insurance face amount in force	35,289,794		36,379,128
Reinsurance ceded	(1,034,508,027)		(1,012,593,512)
Net life insurance face amount in force	$	137,132,591	$	122,771,659

Effective July 1, 2012, PLNJ reinsures 95% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain other universal life policies, with effective dates through December 31, 2019, excluding those policies that are subject to principle-based reserving.

Effective January 1, 2024, Pruco Life recaptured the policies equal to 70% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain other universal life policies, with effective dates prior to January 1, 2011. Effective January 1, 2024, Pruco Life reinsures 25% of the risks associated with universal life policies with effective dates prior to January 1, 2015 and 100% of the risks associated with universal life policies with effective dates beginning January 1, 2015.

Pruco Life reinsures 70% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain other universal life 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 other universal life 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 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain other universal life 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. Effective January 1, 2024, the Company recaptured all GUL policies with Prudential Insurance and subsequently entered into a YRT reinsurance agreement with Prudential Insurance to reinsure the mortality risk for the totality of GUL policies reinsured to PURE.

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 January 1, 2018, the Company entered into an automatic coinsurance agreement with DART to reinsure 95% of the risks associated with its term life insurance policies with effective dates on or after January 1, 2018 through December 31, 2019, excluding those policies that are subject to principle-based reserving.

Effective April 1, 2023, the Company entered into an agreement with AuguStar, 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 DRG 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 FLIAC's 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 March 31, 2024, 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.

Effective October 1, 2021, the Company entered into a reinsurance agreement with Somerset Re to coinsure business, on a quota share funds withheld basis, related to fixed index annuities. Under the reinsurance agreement, the Company cedes to Somerset Re its quota share of the insurance liabilities with respect to the reinsured contracts. The deposit assets on reinsurance totaled $1,929 million and $1,618 million at March 31, 2024 and December 31, 2023, respectively. The funds withheld liabilities totaled $1,790 million and $1,518 million at March 31, 2024 and December 31, 2023, respectively.

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. 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 March 31, 2024, $2.3 billion of HDI v.3.0 account values are reinsured to Union Hamilton.