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. Under interest rate total return swaps, the company agrees with counterparties to exchange, at specified intervals, the difference between the return on a fixed income market index and Secured Overnight Financing Rate (“SOFR”) plus an associated funding spread based on a notional amount.

The Company also uses interest rate swaptions, caps and floors to manage interest rate risk. A swaption is an option to enter into a swap with a forward starting effective date. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. In an interest rate cap, the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. Similarly, in an interest rate floor, the buyer receives payments at the end of each period in which the interest rate is below the agreed strike price. Swaptions, caps and floors are included in interest rate options.

In standardized exchange-traded interest rate futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the daily market values of underlying referenced investments. The Company enters into exchange-traded futures with regulated futures commission's merchants who are members of a trading exchange.

Equity total return swaps are contracts whereby the Company agrees with counterparties to exchange, at specified intervals, the difference between the return on an asset (or market index) and Secured Overnight Financing Rate (“SOFR”) plus an associated funding spread based on a notional amount. The Company generally uses total return swaps to hedge the effect of adverse changes in equity indices.

In standardized exchange-traded equity futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the daily market values of underlying referenced equity indices. The Company enters into exchange-traded futures with regulated futures commission's merchants who are members of a trading exchange.

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.

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.

The Company offers certain products (for example, indexed annuities and index-linked universal life) which may include features that are accounted for as embedded derivatives; related to certain of these derivatives, the Company has entered into reinsurance agreements with both affiliated and unaffiliated parties. See Note 11 for additional information on the reinsurance agreements.

The Company sells synthetic guarantees in the form of stable value wrap guarantees on third-party banked owned life insurance contracts. The synthetic guarantees are issued in respect of assets that are owned by the third-party insurer, who invest the assets according to the contract terms agreed to with the Company. The contracts establish policyholder balances and credit interest thereon. The policyholder balances are supported by the underlying assets. In connection with certain policyholder-initiated withdrawals, the contract guarantees that after all underlying assets are liquidated, any remaining policyholder balances will be paid by the Company. These guarantees are accounted for as derivatives and recorded at fair value.

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 and deposit receivables. 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, 2024						December 31, 2023
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
Interest Rate Swaps	$	2,851	$	0	$	(209)	$	3,064	$	0	$	(238)
Foreign Currency Swaps	3,308,842		202,606		(27,523)		2,274,636		121,243		(54,044)
Total Derivatives Designated as Hedge Accounting Instruments	$	3,311,693	$	202,606	$	(27,732)	$	2,277,700	$	121,243	$	(54,282)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate
Interest Rate Swaps	$	174,170,160	$	9,029,399	$	(20,888,553)	$	163,179,764	$	6,605,817	$	(17,820,436)
Interest Rate Futures	1,518,400		1,967		(1,443)		1,332,600		3,055		(210)
Interest Rate Options	29,135,000		279,414		(1,406,265)		29,738,000		189,112		(969,718)
Interest Rate Forwards	0		0		0		1,458,000		741		(3,196)
Interest Rate Total Return Swaps	223,721		1,472		(2,121)		0		0		0
Foreign Currency
Foreign Currency Forwards	1,146,861		30,078		(181)		744,576		1,772		(12,232)
Credit
Credit Default Swaps	911,850		9,606		0		643,280		7,727		0
Currency/Interest Rate
Foreign Currency Swaps	2,285,052		164,152		(9,277)		2,237,331		96,618		(31,294)
Equity
Equity Total Return Swaps	23,025,217		1,160,080		(1,182,913)		15,049,993		418,084		(803,452)
Equity Options	117,107,059		4,453,762		(3,717,637)		49,247,510		1,600,335		(1,552,706)
Equity Futures	1,802,205		15		(6,060)		418,973		1,232		(500)
Synthetic GICs	3,958,847		143		(31)		311,302		1		0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	$	355,284,372	$	15,130,088	$	(27,214,481)	$	264,361,329	$	8,924,494	$	(21,193,744)
Total Derivatives(1)(2)	$	358,596,065	$	15,332,694	$	(27,242,213)	$	266,639,029	$	9,045,737	$	(21,248,026)

The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverable and deposit receivables), and repurchase and reverse repurchase agreements that are offset in the Consolidated 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 Consolidated Statements of Financial Position.


	December 31, 2024
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position		Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives	$	15,332,538	$	(15,308,195)	$	24,343	$	0	$	24,343
Securities purchased under agreements to resell	0		0		0		0		0
Total Assets	$	15,332,538	$	(15,308,195)	$	24,343	$	0	$	24,343
Offsetting of Financial Liabilities:
Derivatives	$	27,242,182	$	(23,619,586)	$	3,622,596	$	(3,622,596)	$	0

Total Liabilities	$	27,242,182	$	(23,619,586)	$	3,622,596	$	(3,622,596)	$	0


	December 31, 2023
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position		Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives	$	9,045,718	$	(9,028,019)	$	17,699	$	0	$	17,699
Securities purchased under agreements to resell	25,000		0		25,000		0		25,000
Total Assets	$	9,070,718	$	(9,028,019)	$	42,699	$	0	$	42,699
Offsetting of Financial Liabilities:
Derivatives	$	21,248,026	$	(18,596,679)	$	2,651,347	$	(2,651,347)	$	0

Total Liabilities	$	21,248,026	$	(18,596,679)	$	2,651,347	$	(2,651,347)	$	0

For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below and Note 15. 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 Consolidated Financial Statements.

The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps and interest rate 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, or equity derivatives in any of its cash flow hedge accounting relationships.


	Year Ended December 31, 2024
	Realized Investment Gains (Losses)		Change in Value of Market Risk Benefits, Net of Related Hedging Gains (Losses)		Net Investment Income		Other Income (Loss)		Change in AOCI
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Interest Rate	$	3	$	0	$	(118)	$	0	$	46
Currency/Interest Rate	2,256		0		48,523		34,827		98,585
Total cash flow hedges	2,259		0		48,405		34,827		98,631
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	35,600		(2,094,268)		0		0		0
Currency	54,543		0		0		0		0
Currency/Interest Rate	77,166		0		0		523		0
Credit	16,856		0		0		0		0
Equity	3,207,538		(761,850)		0		0		0
Embedded Derivatives	(2,680,559)		0		0		0		0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	711,144		(2,856,118)		0		523		0
Total	$	713,403	$	(2,856,118)	$	48,405	$	35,350	$	98,631


	Year Ended December 31, 2023
	Realized Investment Gains (Losses)		Change in Value of Market Risk Benefits, Net of Related Hedging Gains (Losses)		Net Investment Income		Other Income (Loss)		Change in AOCI
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Interest Rate	$	2	$	0	$	(118)	$	0	$	72
Currency/Interest Rate	(636)		0		43,934		(26,206)		(126,765)
Total cash flow hedges	(634)		0		43,816		(26,206)		(126,693)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	25,329		(1,555,807)		0		0		0
Currency	(16,012)		0		0		0		0
Currency/Interest Rate	(102,238)		0		0		(257)		0
Credit	14,350		0		0		0		0
Equity	1,744,218		(821,996)		0		0		0
Embedded Derivatives(1)	(2,798,232)		0		0		0		0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	(1,132,585)		(2,377,803)		0		(257)		0
Total	$	(1,133,219)	$	(2,377,803)	$	43,816	$	(26,463)	$	(126,693)


	Year Ended December 31, 2022
	Realized Investment Gains (Losses)		Change in Value of Market Risk Benefits, Net of Related Hedging Gains (Losses)		Net Investment Income		Other Income (Loss)		Change in AOCI
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Interest Rate	$	1	$	0	$	(8)	$	0	$	(312)
Currency/Interest Rate	7,636		0		36,734		34,070		99,043
Total cash flow hedges	7,637		0		36,726		34,070		98,731
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	661,978		(5,230,085)		0		0		0
Currency	18,952		0		0		0		0
Currency/Interest Rate	107,388		0		0		557		0
Credit	(15,904)		0		0		0		0
Equity	40,076		1,050,139		0		0		0
Embedded Derivatives(1)	(359,268)		0		0		0		0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	453,222		(4,179,946)		0		557		0
Total	$	460,859	$	(4,179,946)	$	36,726	$	34,627	$	98,731


	(in thousands)
Balance, December 31, 2021	$	39,896
Amount recorded in AOCI
Interest Rate	(319)
Currency/Interest Rate	177,483
Total amount recorded in AOCI	177,164
Amount reclassified from AOCI to income
Interest Rate	7
Currency/Interest Rate	(78,440)
Total amount reclassified from AOCI to income	(78,433)
Balance, December 31, 2022	$	138,627
Amount recorded in AOCI
Interest Rate	(44)
Currency/Interest Rate	(109,673)
Total amount recorded in AOCI	(109,717)
Amount reclassified from AOCI to income
Interest Rate	116
Currency/Interest Rate	(17,092)
Total amount reclassified from AOCI to income	(16,976)
Balance, December 31, 2023	$	11,934
Amount recorded in AOCI
Interest Rate	(69)
Currency/Interest Rate	184,191
Total amount recorded in AOCI	184,122
Amount reclassified from AOCI to income
Interest Rate	115
Currency/Interest Rate	(85,606)
Total amount reclassified from AOCI to income	(85,491)
Balance, December 31, 2024	$	110,565

The changes in fair value of cash flow hedges are deferred in AOCI and are included in "Net unrealized investment gains (losses)" in the Consolidated Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using December 31, 2024 values, it is estimated that a pre-tax gain of $41 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending December 31, 2025.

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, where the Company has written credit protection on certain index references, have outstanding notional amounts of $912 million and $643 million as of December 31, 2024 and 2023, respectively. These credit derivatives are reported at fair value as an asset of $10 million and $8 million as of December 31, 2024 and 2023, respectively. As of December 31, 2024 the notional amount of these credit derivatives had $877 million in NAIC 3 and $35 million in NAIC 6.

The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial derivative transactions with a positive fair value. The Company manages credit risk by entering into derivative transactions with regulated derivatives exchanges for exchange traded derivatives and its affiliate, Prudential Global Funding LLC (“PGF”), related to its over-the-counter ("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 agreements, 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.