Schedule II - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2024

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 Position

December 31, 2024 and 2023 (in thousands, except share amounts)

	December 31, 2024		December 31, 2023
ASSETS
Fixed maturities, available-for-sale, at fair value (allowance for credit losses: 2024 – $40,414; 2023 – $2,004) (amortized cost: 2024 – $33,648,311; 2023 – $24,872,031)	$	31,964,802	$	23,662,832
Fixed maturities, trading, at fair value (amortized cost: 2024 – $4,391,322; 2023 – $3,451,001)	3,823,792		2,773,006
Equity securities, at fair value (cost: 2024 – $2,650,189; 2023 – $819,617)	2,623,758		840,335
Policy loans	422,891		357,581
Short-term investments (net of allowance for credit losses: 2024 – $49; 2023 – $0)	505,991		374,407
Commercial mortgage and other loans (net of $36,002 and $36,527 allowance for credit losses at December 31, 2024 and 2023, respectively)	7,281,995		5,883,092
Other invested assets (includes $12,999 and $80,638 of assets measured at fair value at December 31, 2024 and 2023, respectively)	1,363,038		1,073,038
Total investments	47,986,267		34,964,291
Cash and cash equivalents	3,144,542		1,953,388
Deferred policy acquisition costs(1)	7,389,743		6,751,597
Accrued investment income	405,115		279,567
Reinsurance recoverables and deposit receivables (includes $379,582 and $122,897 of embedded derivatives at fair value at December 31, 2024 and 2023, respectively)(1)(2)	44,233,228		36,691,407
Investment in subsidiaries	1,472,500		1,434,641
Receivables from parent and affiliates	567,631		308,635
Deferred sales inducements	322,351		351,424
Income tax assets(1)	2,013,349		1,675,310
Market risk benefit assets	2,144,919		1,829,584
Other assets(2)	1,833,801		432,913
Separate account assets	103,635,702		105,111,382
TOTAL ASSETS	$	215,149,148	$	191,784,139
LIABILITIES AND EQUITY
LIABILITIES
Policyholders’ account balances(1)	$	65,114,184	$	48,950,516
Future policy benefits	23,096,707		20,864,146
Market risk benefit liabilities(1)	3,788,800		4,619,199
Cash collateral for loaned securities	121,372		218,310
Reinsurance and funds withheld payables(1)(2)	7,192,595		2,348,162
Short-term debt to affiliates	0		180,411
Payables to parent and affiliates	3,653,229		2,658,870
Other liabilities(2)	3,950,118		2,360,473
Separate account liabilities	103,635,702		105,111,382
Total liabilities	210,552,707		187,311,469
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	4,923,299		5,052,602
Retained earnings / (accumulated deficit)(1)	272,519		(551,471)
Accumulated other comprehensive income (loss)(1)	(601,877)		(30,961)
Total equity	4,596,441		4,472,670
TOTAL LIABILITIES AND EQUITY	$	215,149,148	$	191,784,139

(1)    Amounts reflect revision to prior period Financial Statements. See Note 17 for the amounts of the errors which were revised and for additional information on these errors.

(2)    Prior period amounts have been reclassified to conform to current period presentation.

	2024		2023		2022
REVENUES
Premiums (includes $(2,740), $6,296 and $(1,419) of gains (losses) from change in estimates on deferred profit liability amortization for the year ended December 31, 2024, 2023 and 2022, respectively)	$	344,383	$	289,344	$	231,500
Policy charges and fee income	6,677,744		1,476,927		1,172,867
Net investment income	2,154,525		1,507,280		785,609
Asset administration fees	212,328		223,803		275,702
Other income (loss)(1)	743,843		747,789		(634,120)
Realized investment gains (losses), net(1)	498,953		(1,102,789)		276,094
Change in value of market risk benefits, net of related hedging gains (losses)(1)	(473,209)		(169,565)		(558,535)
TOTAL REVENUES	10,158,567		2,972,789		1,549,117
BENEFITS AND EXPENSES
Policyholders’ benefits	7,338,059		448,286		430,184
Change in estimates of liability for future policy benefits	(14,594)		6,067		38,468
Interest credited to policyholders’ account balances(1)	956,863		557,510		397,637
Amortization of deferred policy acquisition costs(1)	(285,676)		518,939		501,979
General, administrative and other expenses(1)	1,180,030		1,074,134		1,072,835
TOTAL BENEFITS AND EXPENSES	9,174,682		2,604,936		2,441,103
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES AND OPERATING JOINT VENTURE	983,885		367,853		(891,986)
Income tax expense (benefit)(1)	147,233		14,006		(265,913)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES AND OPERATING JOINT VENTURE	836,652		353,847		(626,073)
Equity in earnings of subsidiaries	(12,237)		96,844		(69,829)
Equity in earnings of operating joint venture, net of taxes	(425)		(433)		(75,137)
NET INCOME (LOSS)	$	823,990	$	450,258	$	(771,039)
Other comprehensive income (loss), before tax:
Net unrealized investment gains (losses)	(246,952)		632,819		(1,877,552)
Interest rate remeasurement of future policy benefits	45,461		(50,679)		250,486
Gain (loss) from changes in non-performance risk on market risk benefits(1)	(401,884)		(597,135)		1,298,259
Other	(118,775)		(11,539)		(183,909)
Total	(722,150)		(26,534)		(512,716)
Less: Income tax expense (benefit) related to other comprehensive income (loss)(1)	(151,234)		(5,638)		(106,197)
Other comprehensive income (loss), net of taxes	(570,916)		(20,896)		(406,519)
Total comprehensive income (loss)	$	253,074	$	429,362	$	(1,177,558)

(1)    Amounts reflect revision to prior period Financial Statements. See Note 17 for the amounts of the errors which were revised and for additional information on these errors.

	2024		2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash flows from (used in) operating activities	$	3,363,590	$	2,365,722	$	1,813,780
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale	3,425,809		1,622,501		1,586,432
Fixed maturities, trading	800,588		95,872		901,690
Equity securities	957,650		189,210		242,247
Policy loans	157,478		152,275		140,937
Ceded policy loans	(87,521)		(117,589)		(110,477)
Short-term investments	1,280,677		444,983		622,072
Commercial mortgage and other loans	724,559		157,116		178,564
Other invested assets	73,632		17,405		57,335
Notes receivable from parent and affiliates(1)	722		3,858		832
Payments for the purchase/origination of:
Fixed maturities, available-for-sale	(12,273,347)		(6,762,400)		(6,674,455)
Fixed maturities, trading	(1,819,224)		(857,717)		(425,267)
Equity securities	(2,373,213)		(678,790)		(281,502)
Policy loans	(222,724)		(236,886)		(122,982)
Ceded policy loans	117,552		147,961		69,369
Short-term investments	(1,412,350)		(679,224)		(551,161)
Commercial mortgage and other loans	(2,145,910)		(1,239,173)		(1,024,697)
Other invested assets	(406,031)		(174,680)		(149,837)
Notes receivable from parent and affiliates(1)	(297,850)		(31)		(25)
Capital contributions to subsidiaries	(549,964)		(323,909)		(325,000)
Return of capital from subsidiaries	414,859		0		0
Other, net	164,779		(60,358)		(316,977)
Cash flows from (used in) investing activities	(13,469,829)		(8,299,576)		(6,182,902)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders’ account deposits	16,148,664		10,508,549		9,500,054
Ceded policyholders’ account deposits	(826,393)		(870,031)		(902,233)
Policyholders’ account withdrawals	(3,600,010)		(3,287,164)		(3,343,369)
Ceded policyholders’ account withdrawals	454,788		360,211		398,101
Contributed capital	0		405,000		0
Return of capital	(550,000)		(1,400,000)		0
Other, net	(329,656)		28,817		75,814
Cash flows from (used in) financing activities	11,297,393		5,745,382		5,728,367
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,191,154		(188,472)		1,359,245
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	1,953,388		2,141,860		782,615
CASH AND CASH EQUIVALENTS, END OF YEAR	$	3,144,542	$	1,953,388	$	2,141,860
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid (refunded), net	$	360,742	$	57,749	$	61,613
Interest paid	$	2,644	$	4,377	$	7,863

(1)    Prior period amounts have been updated to conform to current period presentation.

Significant Non-Cash Transactions

2024

"Cash flows from (used in) operating activities" and "Cash flows from (used in) investing activities" for the year ended December 31, 2024, excludes certain non-cash activities in the amount of $(7,469) million primarily related to reinsurance recoverables and $6,722 million related to invested asset transfers, respectively. These transactions are associated with the unaffiliated reinsurance agreement with Wilton Reassurance Company and Wilton Reinsurance Bermuda Limited (collectively, "Wilton Re"), effective October 1, 2024. Associated with the transaction with Wilton Re, "Cash flows from (used in) operating activities" and "Cash flows from (used in) investing activities" for the year ended December 31, 2024, exclude largely offsetting affiliated non-cash activities in the amount of $7,190 million, primarily related to reinsurance recoverables and payables, and $(6,722) million related to invested asset transfers, respectively. These are related to the recapture of the risks associated with the business that had previously been reinsured with Prudential Arizona Reinsurance Universal Company ("PAR U") as well as assumption of those recaptured by Pruco Life Insurance Company of New Jersey from PAR U. See Note 11 for additional information.

"Cash flows from (used in) operating activities" for the year ended December 31, 2024 excludes certain non-cash activities in the amount of $(78) million related to the affiliated reinsurance transaction with Prudential Arizona Reinsurance Captive Company, effective October 1, 2024. See Note 11 for additional information.

"Cash flows from (used in) operating activities" for the year ended December 31, 2024 excludes certain non-cash activities in the amount of $936 million related to the affiliated reinsurance transaction with Prudential Universal Reinsurance Entity Company and The Prudential Insurance Company of America, effective January 1, 2024. See Note 11 for additional information.

"Cash flows from (used in) investing activities" and "Cash flows from (used in) financing activities" for the year ended December 31, 2024 excludes non-cash activities related to invested asset transfers in the amount of $416 million, related to capital contributions the Company received from Prudential Insurance. See Note 15 for additional information.

2023

"Cash flows from (used in) operating activities" for the year ended December 31, 2023 excludes certain non-cash activities in the amount of $475 million related to the novated indexed variable annuities under the reinsurance agreement with Fortitude Life Insurance & Annuity Company (“FLIAC”). See Note 11 for more details regarding this transaction.

2022

"Cash flows from (used in) operating activities" for the year ended December 31, 2022 excludes certain non-cash activities in the amount of $531 million related to the Company entering into an affiliated reinsurance agreement with Lotus Reinsurance Company Ltd. ("Lotus Re") on January 1, 2022 and $4,656 million related to the indexed variable annuities novated to the Company in connection with the reinsurance agreement with FLIAC. See Note 11 for more details regarding these transactions. The Company also received $18 million of non-cash assets from Prudential Insurance. See Note 15 for additional information.

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.