FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT
STATEMENTS OF NET ASSETS
December 31, 2025
SUBACCOUNTS
PSF PGIM Government Money Market Portfolio (Class I)PSF PGIM Total Return Bond Portfolio (Class I)PSF PGIM Jennison Blend Portfolio (Class I)PSF PGIM Flexible Managed Portfolio (Class I)PSF PGIM 50/50 Balanced Portfolio (Class I)
ASSETS
Investment in the portfolios, at fair value$12,138,773 $24,425,568 $311,208,851 $230,685,072 $68,043,621 
Net Assets$12,138,773 $24,425,568 $311,208,851 $230,685,072 $68,043,621 
NET ASSETS, representing:
Accumulation units$12,138,773 $24,425,568 $311,208,851 $230,685,072 $68,043,621 
$12,138,773 $24,425,568 $311,208,851 $230,685,072 $68,043,621 
Units outstanding3,078,211 1,854,536 4,175,763 6,742,341 2,917,617 
Portfolio shares held1,213,877 1,537,166 2,135,077 3,974,588 1,373,786 
Portfolio net asset value per share$10.00 $15.89 $145.76 $58.04 $49.53 
Investment in portfolio shares, at cost$12,138,773 $17,488,338 $52,591,646 $62,859,969 $20,760,166 



STATEMENTS OF OPERATIONS
For the period ended December 31, 2025
SUBACCOUNTS
PSF PGIM Government Money Market Portfolio (Class I)PSF PGIM Total Return Bond Portfolio (Class I)PSF PGIM Jennison Blend Portfolio (Class I)PSF PGIM Flexible Managed Portfolio (Class I)PSF PGIM 50/50 Balanced Portfolio (Class I)
1/1/20251/1/20251/1/20251/1/20251/1/2025
tototototo
12/31/202512/31/202512/31/202512/31/202512/31/2025
INVESTMENT INCOME
Dividend income$488,716 $— $— $— $— 
EXPENSES
   Charges for mortality and expense risk43,031 83,917 1,014,864 771,861 230,811 
Reimbursement for excess expenses— (6,303)(183,662)(490,276)(117,268)
NET EXPENSES43,031 77,614 831,202 281,585 113,543 
NET INVESTMENT INCOME (LOSS)445,685 (77,614)(831,202)(281,585)(113,543)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received— — — — — 
Net realized gain (loss) on shares redeemed— 489,589 20,076,272 11,203,518 3,400,311 
Net change in unrealized appreciation (depreciation) on investments— 1,315,880 30,692,561 16,345,136 4,230,160 
NET GAIN (LOSS) ON INVESTMENTS— 1,805,469 50,768,833 27,548,654 7,630,471 
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS$445,685 $1,727,855 $49,937,631 $27,267,069 $7,516,928 

The accompanying notes are an integral part of these financial statements.
A1
FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT
STATEMENTS OF NET ASSETS
December 31, 2025
SUBACCOUNTS
PSF PGIM High Yield Bond Portfolio (Class I)PSF Stock Index Portfolio (Class I)PSF PGIM Jennison Value Portfolio (Class I)PSF Natural Resources Portfolio (Class I)**PSF Global Portfolio (Class I)
ASSETS
Investment in the portfolios, at fair value$4,933,149 $33,245,193 $12,088,042 $— $7,151,740 
Net Assets$4,933,149 $33,245,193 $12,088,042 $— $7,151,740 
NET ASSETS, representing:
Accumulation units$4,933,149 $33,245,193 $12,088,042 $— $7,151,740 
$4,933,149 $33,245,193 $12,088,042 $— $7,151,740 
Units outstanding425,945 808,106 360,006 — 711,605 
Portfolio shares held630,032 196,206 169,134 — 92,233 
Portfolio net asset value per share$7.83 $169.44 $71.47 $— $77.54 
Investment in portfolio shares, at cost$3,412,488 $6,931,478 $3,511,886 $— $2,094,489 



STATEMENTS OF OPERATIONS
For the period ended December 31, 2025
SUBACCOUNTS
PSF PGIM High Yield Bond Portfolio (Class I)PSF Stock Index Portfolio (Class I)PSF PGIM Jennison Value Portfolio (Class I)PSF Natural Resources Portfolio (Class I)PSF Global Portfolio (Class I)
1/1/20251/1/20251/1/20251/1/20251/1/2025
tototototo
12/31/202512/31/202512/31/20254/11/2025**12/31/2025
INVESTMENT INCOME
Dividend income$— $— $— $— $— 
EXPENSES
   Charges for mortality and expense risk17,216 109,009 39,675 5,456 22,912 
Reimbursement for excess expenses— — — — — 
NET EXPENSES17,216 109,009 39,675 5,456 22,912 
NET INVESTMENT INCOME (LOSS)(17,216)(109,009)(39,675)(5,456)(22,912)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received— — — — — 
Net realized gain (loss) on shares redeemed126,484 1,935,766 636,640 903,193 262,025 
Net change in unrealized appreciation (depreciation) on investments294,090 3,176,030 1,158,324 (1,231,395)1,052,908 
NET GAIN (LOSS) ON INVESTMENTS420,574 5,111,796 1,794,964 (328,202)1,314,933 
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS$403,358 $5,002,787 $1,755,289 $(333,658)$1,292,021 

**Subaccount was no longer available for investment as of the date presented in the Statement of Operations.
The accompanying notes are an integral part of these financial statements.
A2
FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT
STATEMENTS OF NET ASSETS
December 31, 2025
SUBACCOUNTS
PSF PGIM Government Income Portfolio (Class I)**PSF PGIM Jennison Growth Portfolio (Class I)PSF Small-Cap Stock Index Portfolio (Class I)AST Cohen & Steers Realty Portfolio**AST Large-Cap Equity Portfolio
ASSETS
Investment in the portfolios, at fair value$— $28,790,681 $7,257,473 $— $4,202,563 
Net Assets$— $28,790,681 $7,257,473 $— $4,202,563 
NET ASSETS, representing:
Accumulation units$— $28,790,681 $7,257,473 $— $4,202,563 
$— $28,790,681 $7,257,473 $— $4,202,563 
Units outstanding— 1,084,092 420,224 — 381,889 
Portfolio shares held— 135,895 108,515 — 93,870 
Portfolio net asset value per share$— $211.86 $66.88 $— $44.77 
Investment in portfolio shares, at cost$— $4,313,995 $2,345,945 $— $3,769,740 



STATEMENTS OF OPERATIONS
For the period ended December 31, 2025
SUBACCOUNTS
PSF PGIM Government Income Portfolio (Class I)PSF PGIM Jennison Growth Portfolio (Class I)PSF Small-Cap Stock Index Portfolio (Class I)AST Cohen & Steers Realty PortfolioAST Large-Cap Equity Portfolio
1/1/20251/1/20251/1/20251/1/20251/24/2025*
tototototo
4/25/2025**12/31/202512/31/20251/24/2025**12/31/2025
INVESTMENT INCOME
Dividend income$— $— $— $— $— 
EXPENSES
   Charges for mortality and expense risk1,584 96,119 24,484 889 12,967 
Reimbursement for excess expenses— — — — — 
NET EXPENSES1,584 96,119 24,484 889 12,967 
NET INVESTMENT INCOME (LOSS)(1,584)(96,119)(24,484)(889)(12,967)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received— — — — — 
Net realized gain (loss) on shares redeemed95,337 1,941,439 348,479 126,933 (22,103)
Net change in unrealized appreciation (depreciation) on investments(52,146)1,723,453 31,048 (61,492)432,823 
NET GAIN (LOSS) ON INVESTMENTS43,191 3,664,892 379,527 65,441 410,720 
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS$41,607 $3,568,773 $355,043 $64,552 $397,753 

*Date subaccount became available for investment.
**Subaccount was no longer available for investment as of the date presented in the Statement of Operations.
The accompanying notes are an integral part of these financial statements.
A3
FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended December 31, 2025
SUBACCOUNTS
PSF PGIM Government Money Market Portfolio (Class I)PSF PGIM Total Return Bond Portfolio (Class I)PSF PGIM Jennison Blend Portfolio (Class I)PSF PGIM Flexible Managed Portfolio (Class I)PSF PGIM 50/50 Balanced Portfolio (Class I)
1/1/20251/1/20251/1/20251/1/20251/1/2025
tototototo
12/31/202512/31/202512/31/202512/31/202512/31/2025
OPERATIONS
Net investment income (loss)$445,685 $(77,614)$(831,202)$(281,585)$(113,543)
Capital gains distributions received— — — — — 
Net realized gain (loss) on shares redeemed— 489,589 20,076,272 11,203,518 3,400,311 
Net change in unrealized appreciation (depreciation) on investments— 1,315,880 30,692,561 16,345,136 4,230,160 
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS445,685 1,727,855 49,937,631 27,267,069 7,516,928 
CONTRACT OWNER TRANSACTIONS
Contract owner net payments79,363 420,421 1,753,299 2,212,660 808,870 
Policy loans(223,108)(104,889)(1,154,955)(1,091,243)(293,675)
Policy loan repayments and interest1,844,524 325,406 1,947,986 1,535,306 378,599 
Surrenders, withdrawals and death benefits(22,522,468)(889,642)(11,060,829)(6,913,562)(2,017,773)
Net transfers between other subaccounts
or fixed rate option19,154,078 635,215 (3,192,627)(5,597,862)(1,837,218)
Miscellaneous transactions16,011 (7,248)(167,924)(122,948)(25,571)
Other charges(354,062)(639,215)(6,620,783)(5,427,198)(1,723,820)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CONTRACT OWNER TRANSACTIONS(2,005,662)(259,952)(18,495,833)(15,404,847)(4,710,588)
TOTAL INCREASE (DECREASE) IN NET ASSETS(1,559,977)1,467,903 31,441,798 11,862,222 2,806,340 
NET ASSETS
Beginning of period13,698,750 22,957,665 279,767,053 218,822,850 65,237,281 
End of period$12,138,773 $24,425,568 $311,208,851 $230,685,072 $68,043,621 
Beginning units3,601,759 1,873,019 4,436,529 7,228,133 3,132,064 
Units issued1,938,597 121,352 91,069 6,148 9,425 
Units redeemed(2,462,145)(139,835)(351,835)(491,940)(223,872)
Ending units3,078,211 1,854,536 4,175,763 6,742,341 2,917,617 
The accompanying notes are an integral part of these financial statements.
A4
FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended December 31, 2025
SUBACCOUNTS
PSF PGIM High Yield Bond Portfolio (Class I)PSF Stock Index Portfolio (Class I)PSF PGIM Jennison Value Portfolio (Class I)PSF Natural Resources Portfolio (Class I)PSF Global Portfolio (Class I)
1/1/20251/1/20251/1/20251/1/20251/1/2025
tototototo
12/31/202512/31/202512/31/20254/11/2025**12/31/2025
OPERATIONS
Net investment income (loss)$(17,216)$(109,009)$(39,675)$(5,456)$(22,912)
Capital gains distributions received— — — — — 
Net realized gain (loss) on shares redeemed126,484 1,935,766 636,640 903,193 262,025 
Net change in unrealized appreciation (depreciation) on investments294,090 3,176,030 1,158,324 (1,231,395)1,052,908 
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS403,358 5,002,787 1,755,289 (333,658)1,292,021 
CONTRACT OWNER TRANSACTIONS
Contract owner net payments64,961 227,836 97,440 21,690 63,973 
Policy loans(20,483)(201,563)(43,204)— (40,619)
Policy loan repayments and interest45,496 133,163 72,988 9,732 62,064 
Surrenders, withdrawals and death benefits(136,860)(773,209)(279,542)(15,650)(217,942)
Net transfers between other subaccounts
or fixed rate option(170,861)(935,196)(395,149)(5,160,855)(15,674)
Miscellaneous transactions(2,523)(24,821)(2,517)449 (4,215)
Other charges(130,126)(701,783)(266,731)(40,806)(153,071)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CONTRACT OWNER TRANSACTIONS(350,396)(2,275,573)(816,715)(5,185,440)(305,484)
TOTAL INCREASE (DECREASE) IN NET ASSETS52,962 2,727,214 938,574 (5,519,098)986,537 
NET ASSETS
Beginning of period4,880,187 30,517,979 11,149,468 5,519,098 6,165,203 
End of period$4,933,149 $33,245,193 $12,088,042 $— $7,151,740 
Beginning units457,282 869,043 386,741 232,278 745,996 
Units issued7,710 3,544 2,866 307 6,953 
Units redeemed(39,047)(64,481)(29,601)(232,585)(41,344)
Ending units425,945 808,106 360,006 — 711,605 
**Date subaccount was no longer available for investment.
The accompanying notes are an integral part of these financial statements.
A5
FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended December 31, 2025
SUBACCOUNTS
PSF PGIM Government Income Portfolio (Class I)PSF PGIM Jennison Growth Portfolio (Class I)PSF Small-Cap Stock Index Portfolio (Class I)AST Cohen & Steers Realty PortfolioAST Large-Cap Equity Portfolio
1/1/20251/1/20251/1/20251/1/20251/24/2025*
tototototo
4/25/2025**12/31/202512/31/20251/24/2025**12/31/2025
OPERATIONS
Net investment income (loss)$(1,584)$(96,119)$(24,484)$(889)$(12,967)
Capital gains distributions received— — — — — 
Net realized gain (loss) on shares redeemed95,337 1,941,439 348,479 126,933 (22,103)
Net change in unrealized appreciation (depreciation) on investments(52,146)1,723,453 31,048 (61,492)432,823 
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS41,607 3,568,773 355,043 64,552 397,753 
CONTRACT OWNER TRANSACTIONS
Contract owner net payments10,754 152,262 57,229 — 419,586 
Policy loans(2,981)(76,275)(46,841)(638)(23,794)
Policy loan repayments and interest22,173 94,106 53,552 1,253 34,247 
Surrenders, withdrawals and death benefits(17,592)(871,185)(182,330)(25,062)(86,375)
Net transfers between other subaccounts
or fixed rate option(1,479,922)(782,418)(189,182)(3,936,762)3,904,623 
Miscellaneous transactions(7,099)(12,619)(831)7,434 (341,174)
Other charges(13,928)(604,457)(155,737)(9,943)(102,303)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CONTRACT OWNER TRANSACTIONS(1,488,595)(2,100,586)(464,140)(3,963,718)3,804,810 
TOTAL INCREASE (DECREASE) IN NET ASSETS(1,446,988)1,468,187 (109,097)(3,899,166)4,202,563 
NET ASSETS
Beginning of period1,446,988 27,322,494 7,366,570 3,899,166 — 
End of period$— $28,790,681 $7,257,473 $— $4,202,563 
Beginning units303,959 1,171,481 449,236 323,497 — 
Units issued480 5,304 2,921 305 784,330 
Units redeemed(304,439)(92,693)(31,933)(323,802)(402,441)
Ending units— 1,084,092 420,224 — 381,889 
*Date subaccount became available for investment.
**Date subaccount was no longer available for investment.

The accompanying notes are an integral part of these financial statements.
A6
FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended December 31, 2024
SUBACCOUNTS
PSF PGIM Government Money Market Portfolio (Class I)PSF PGIM Total Return Bond Portfolio (Class I)PSF PGIM Jennison Blend Portfolio (Class I)PSF PGIM Flexible Managed Portfolio (Class I)PSF PGIM 50/50 Balanced Portfolio (Class I)
1/1/20241/1/20241/1/20241/1/20241/1/2024
tototototo
12/31/202412/31/202412/31/202412/31/202412/31/2024
OPERATIONS
Net investment income (loss)$580,049 $(77,373)$(775,823)$(297,255)$(114,365)
Capital gains distributions received— — — — — 
Net realized gain (loss) on shares redeemed— 488,992 19,329,095 10,743,798 3,105,275 
Net change in unrealized appreciation (depreciation) on investments— 222,226 42,363,675 20,022,201 4,764,578 
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS580,049 633,845 60,916,947 30,468,744 7,755,488 
CONTRACT OWNER TRANSACTIONS
Contract owner net payments419,096 436,568 1,829,234 2,348,745 860,426 
Policy loans(66,234)(133,520)(1,148,453)(1,058,998)(304,414)
Policy loan repayments and interest1,402,637 283,214 2,150,241 1,758,121 497,819 
Surrenders, withdrawals and death benefits(18,997,300)(969,679)(11,221,557)(7,868,728)(2,149,903)
Net transfers between other subaccounts
or fixed rate option17,650,806 (900,885)(8,152,183)(5,211,634)(1,756,353)
Miscellaneous transactions(136,279)(12,210)(416,812)(108,045)(29,857)
Other charges(371,210)(634,615)(6,124,519)(5,272,046)(1,687,072)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CONTRACT OWNER TRANSACTIONS(98,484)(1,931,127)(23,084,049)(15,412,585)(4,569,354)
TOTAL INCREASE (DECREASE) IN NET ASSETS481,565 (1,297,282)37,832,898 15,056,159 3,186,134 
NET ASSETS
Beginning of period13,217,185 24,254,947 241,934,155 203,766,691 62,051,147 
End of period$13,698,750 $22,957,665 $279,767,053 $218,822,850 $65,237,281 
Beginning units3,636,580 2,031,690 4,832,200 7,764,558 3,361,229 
Units issued1,955,191 4,009 5,008 6,472 7,372 
Units redeemed(1,990,012)(162,680)(400,679)(542,897)(236,537)
Ending units3,601,759 1,873,019 4,436,529 7,228,133 3,132,064 
The accompanying notes are an integral part of these financial statements.
A7
FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended December 31, 2024
SUBACCOUNTS
PSF PGIM High Yield Bond Portfolio (Class I)PSF Stock Index Portfolio (Class I)PSF PGIM Jennison Value Portfolio (Class I)PSF Natural Resources Portfolio (Class I)PSF Global Portfolio (Class I)
1/1/20241/1/20241/1/20241/1/20241/1/2024
tototototo
12/31/202412/31/202412/31/202412/31/202412/31/2024
OPERATIONS
Net investment income (loss)$(17,090)$(101,955)$(38,135)$(20,443)$(21,966)
Capital gains distributions received— — — — — 
Net realized gain (loss) on shares redeemed92,041 1,660,792 576,972 96,456 352,653 
Net change in unrealized appreciation (depreciation) on investments308,182 4,639,804 1,458,834 157,411 518,006 
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS383,133 6,198,641 1,997,671 233,424 848,693 
CONTRACT OWNER TRANSACTIONS
Contract owner net payments70,105 229,274 103,693 81,171 68,679 
Policy loans(26,647)(138,887)(45,811)(44,004)(27,141)
Policy loan repayments and interest50,917 236,425 136,399 71,011 48,339 
Surrenders, withdrawals and death benefits(257,365)(1,306,752)(430,195)(176,727)(304,890)
Net transfers between other subaccounts
or fixed rate option(96,019)(297,802)(299,525)(161,426)(143,058)
Miscellaneous transactions(1,263)(26,233)(14,454)(2,847)(5,049)
Other charges(130,105)(649,213)(255,106)(144,339)(145,525)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CONTRACT OWNER TRANSACTIONS(390,377)(1,953,188)(804,999)(377,161)(508,645)
TOTAL INCREASE (DECREASE) IN NET ASSETS(7,244)4,245,453 1,192,672 (143,737)340,048 
NET ASSETS
Beginning of period4,887,431 26,272,526 9,956,796 5,662,835 5,825,155 
End of period$4,880,187 $30,517,979 $11,149,468 $5,519,098 $6,165,203 
Beginning units495,649 929,279 416,326 247,894 808,785 
Units issued1,992 6,241 2,002 565 2,354 
Units redeemed(40,359)(66,477)(31,587)(16,181)(65,143)
Ending units457,282 869,043 386,741 232,278 745,996 











The accompanying notes are an integral part of these financial statements.
A8
FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended December 31, 2024
SUBACCOUNTS
PSF PGIM Government Income Portfolio (Class I)PSF PGIM Jennison Growth Portfolio (Class I)PSF Small-Cap Stock Index Portfolio (Class I)AST Cohen & Steers Realty Portfolio
1/1/20241/1/20241/1/20241/1/2024
totototo
12/31/202412/31/202412/31/202412/31/2024
OPERATIONS
Net investment income (loss)$(5,160)$(89,895)$(25,419)$(13,972)
Capital gains distributions received— — — — 
Net realized gain (loss) on shares redeemed2,308 1,877,543 297,852 4,568 
Net change in unrealized appreciation (depreciation) on investments12,456 4,885,515 282,084 260,362 
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS9,604 6,673,163 554,517 250,958 
CONTRACT OWNER TRANSACTIONS
Contract owner net payments33,084 162,466 61,282 106,767 
Policy loans(3,748)(117,976)(49,810)(26,380)
Policy loan repayments and interest12,810 162,562 60,343 91,394 
Surrenders, withdrawals and death benefits(13,915)(1,187,996)(242,389)(257,169)
Net transfers between other subaccounts
or fixed rate option(54,625)(473,285)(62,337)(96,335)
Miscellaneous transactions(187)(33,005)(2,115)(10,769)
Other charges(43,688)(561,337)(159,415)(113,255)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CONTRACT OWNER TRANSACTIONS(70,269)(2,048,571)(394,441)(305,747)
TOTAL INCREASE (DECREASE) IN NET ASSETS(60,665)4,624,592 160,076 (54,789)
NET ASSETS
Beginning of period1,507,653 22,697,902 7,206,494 3,953,955 
End of period$1,446,988 $27,322,494 $7,366,570 $3,899,166 
Beginning units318,804 1,269,203 474,526 348,697 
Units issued6,089 8,567 2,740 3,412 
Units redeemed(20,934)(106,289)(28,030)(28,612)
Ending units303,959 1,171,481 449,236 323,497 

The accompanying notes are an integral part of these financial statements.
A9
NOTES TO FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT

Note 1:    General

Pruco Life Variable Insurance Account (the “Account”) was established under the laws of the State of Arizona on November 10, 1982 as a separate investment account of Pruco Life Insurance Company (“Pruco Life”), which is a wholly-owned subsidiary of The Prudential Insurance Company of America (“Prudential”). Prudential is a wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). Under applicable insurance law, the assets and liabilities of the Account are clearly identified and distinguished from the other assets and liabilities of Pruco Life. Proceeds from purchases of Variable Life Insurance contract (the “contract” or "product") are invested in the Account. The portion of the Account’s assets applicable to the contract is not chargeable with liabilities arising out of any other business Pruco Life may conduct.

The Account is registered with the Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended, as a unit investment trust. The Account is a funding vehicle for the contract. The contract offers the option to invest in various subaccounts listed below, each of which invests in a corresponding portfolio of either The Prudential Series Fund or the Advanced Series Trust (collectively, the "Portfolios").

The corresponding subaccount names are as follows:
PSF PGIM Government Money Market Portfolio (Class I)
PSF PGIM Total Return Bond Portfolio (Class I)
PSF PGIM Jennison Blend Portfolio (Class I)
PSF PGIM Flexible Managed Portfolio (Class I)
PSF PGIM 50/50 Balanced Portfolio (Class I)
PSF PGIM High Yield Bond Portfolio (Class I)
PSF Stock Index Portfolio (Class I)
PSF PGIM Jennison Value Portfolio (Class I)
PSF Natural Resources Portfolio (Class I)*
PSF Global Portfolio (Class I)
PSF PGIM Government Income Portfolio (Class I)*
PSF PGIM Jennison Growth Portfolio (Class I)
PSF Small-Cap Stock Index Portfolio (Class I)
AST Cohen & Steers Realty Portfolio*
AST Large-Cap Equity Portfolio
*
Subaccount merged during the period ended December 31, 2025.

The following table sets forth the dates at which mergers took place in the Account. The transfers from the removed subaccounts to the surviving subaccounts for the period ended December 31, 2025 are reflected in the Statements of Changes in Net Assets as net transfers between subaccounts and purchases and sales in Note 5.

Merger DateRemoved PortfolioSurviving Portfolio
January 24, 2025AST Cohen & Steers Realty PortfolioAST Large-Cap Equity Portfolio
April 11, 2025PSF Natural Resources Portfolio (Class I)PSF PGIM Jennison Blend Portfolio (Class I)
April 25, 2025PSF PGIM Government Income Portfolio (Class I)PSF PGIM Total Return Bond Portfolio (Class I)

New sales of the product which invests in the Account have been discontinued. However, premium payments made by contract owners will continue to be received by the Account, subject to the rules of the product and any optional benefits, if elected.

A10
NOTES TO FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT—(Continued)

The Portfolios are open-end management investment companies, and each portfolio of The Prudential Series Fund and the Advanced Series Trust is managed by affiliates of Prudential. Each subaccount of the Account indirectly bears exposure to risks which may be interrelated and include, but are not limited to, the market, credit and liquidity risks of the portfolio in which it invests. These financial statements should be read in conjunction with the financial statements and footnotes of the Portfolios. Additional information on these Portfolios is available upon request to the appropriate companies.

The Account is an independent accounting entity established by the resolution of the insurance company’s board of directors or trustees to engage in a single line of business for the insurance company’s variable contracts. The Account is comprised of multiple subaccounts to invest in its specific corresponding Portfolio. Each subaccount of the Account constitutes a single reportable segment because its separate financial information is available, regularly evaluated and used by the chief operating decision maker (“CODM”) to measure the segment’s performance, and also to assess the allocation of resources across the segments. The accounting policies of the segments is the same as those described in Note 2: Significant Accounting Policies.

The Account’s CODM is a group of executives that include the chief financial officer, the life company investment committee and the business leaders associated with each Account. Overall business decisions for the Account are made by this group of executives, including the investment strategy, capital allocation and expense structure of each subaccount, in accordance with the contract and applicable regulations. The measure of segment profit or loss is reported on the Statements of Operations as “Net Increase (Decrease) in Net Assets Resulting from Operations” and the measure of segment assets is reported as “Net Assets” on the Statements of Net Assets. Due to the nature of the business, the segment’s significant expenses are charges for mortality and expense risk, charges for administration and/or reimbursement for excess expenses which are reported separately on the Statements of Operations and/or Statements of Changes in Net Assets.

Note 2:    Significant Accounting Policies

The Account is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services-Investment Companies, which is part of the generally accepted accounting principles in the United States of America (“GAAP”). The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and the reported amounts of increases and decreases in net assets resulting from operations during the reporting period. Actual results could differ from those estimates. The most significant estimates relate to the valuation of investments in the Portfolios. Subsequent events have been evaluated through the date these financial statements were issued, and no adjustment or disclosure is required in the financial statements.

Investments - The investments in shares of the Portfolios are stated at the reported net asset value per share of the respective Portfolios, which is based on the fair value of the underlying securities in the respective Portfolios. All changes in fair value are recorded as net change in unrealized appreciation (depreciation) on investments in the Statements of Operations of the applicable subaccounts.

Security Transactions - Purchase and sale transactions are recorded as of the trade date of the security being purchased or sold. Realized gains and losses on security transactions are determined based upon the average cost method.

Dividend Income and Distributions Received - Dividend and capital gain distributions received are reinvested in additional shares of the Portfolios and are recorded on the ex-distribution date.

A11
NOTES TO FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT—(Continued)

Note 3:    Fair Value Measurements

Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:
Level 1 - Fair value is based on unadjusted quoted prices in active markets for identical assets or liabilities that the Account can access.
Level 2 - Fair value is based on significant inputs, other than Level 1 inputs, that are observable for the investment, either directly or indirectly, for substantially the full term of the investment through corroboration with observable market data. Level 2 inputs include the reported net asset value per share of the underlying portfolio, quoted market prices in active markets for similar investments, quoted market prices in markets that are not active for identical or similar investments, and other market observable inputs.
Level 3 - Fair value is based on at least one significant unobservable input for the investment, which may require significant judgment or estimation in determining the fair value.
As of December 31, 2025, management determined that the fair value inputs for all of the Account’s investments, which consist solely of investments in open-end mutual funds registered with the SEC, were considered Level 2.

Note 4:    Taxes

Pruco Life is taxed as a “life insurance company” as defined by the Internal Revenue Code. The results of operations of the Account form a part of Prudential Financial’s consolidated federal tax return. No federal, state or local income taxes are payable by the Account. As such, no provision for tax liability has been recorded in these financial statements. Prudential management will review periodically the status of the policy in the event of changes in the tax law.

Note 5:    Purchases and Sales of Investments

The aggregate costs of purchases and proceeds from sales, excluding distributions received and reinvested, of investments in the Portfolios for the period ended December 31, 2025 were as follows:
PurchasesSales
PSF PGIM Government Money Market Portfolio (Class I)$7,494,035 $9,542,729 
PSF PGIM Total Return Bond Portfolio (Class I)1,515,514 1,853,079 
PSF PGIM Jennison Blend Portfolio (Class I)5,233,879 24,560,915 
PSF PGIM Flexible Managed Portfolio (Class I)182,563 15,868,995 
PSF PGIM 50/50 Balanced Portfolio (Class I)200,616 5,024,747 
PSF PGIM High Yield Bond Portfolio (Class I)83,071 450,682 
PSF Stock Index Portfolio (Class I)124,792 2,509,373 
PSF PGIM Jennison Value Portfolio (Class I)79,685 936,075 
PSF Natural Resources Portfolio (Class I)7,321 5,198,217 
PSF Global Portfolio (Class I)60,729 389,124 
PSF PGIM Government Income Portfolio (Class I)2,130 1,492,308 
PSF PGIM Jennison Growth Portfolio (Class I)123,975 2,320,679 
PSF Small-Cap Stock Index Portfolio (Class I)45,299 533,923 
AST Cohen & Steers Realty Portfolio3,351 3,967,958 
AST Large-Cap Equity Portfolio7,770,261 3,978,418 

A12
NOTES TO FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT—(Continued)


Note 6:    Related Party Transactions

The Account has extensive transactions and relationships with Prudential and other affiliates. Due to these relationships, it is possible that the terms of these transactions are not the same as those that would result from transactions among wholly unrelated parties. Prudential Financial and its affiliates perform various services on behalf of the portfolios of The Prudential Series Fund and the Advanced Series Trust in which the Account invests and may receive fees for the services performed. These services include, among other things, investment management, subadvisory, shareholder communications, postage, transfer agency and various other record keeping, administrative and customer service functions.

The Prudential Series Fund has entered into a management agreement with PGIM Investments LLC ("PGIM Investments"), and the Advanced Series Trust has entered into a management agreement with PGIM Investments and AST Investment Services, Inc., both indirect, wholly-owned subsidiaries of Prudential Financial (together, the “Investment Managers”). Pursuant to these agreements, the Investment Managers have responsibility for all investment advisory services and supervise the subadvisers’ performance of such services with respect to each portfolio of The Prudential Series Fund and the Advanced Series Trust. The Investment Managers have entered into subadvisory agreements with several subadvisers, including PGIM, Inc., PGIM Limited, Jennison Associates LLC, and PGIM Quantitative Solutions LLC, each of which are indirect, wholly-owned subsidiaries of Prudential Financial.

The Prudential Series Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), an indirect, wholly-owned subsidiary of Prudential Financial, which acts as the distributor of the Class I and Class II shares of the portfolios of The Prudential Series Fund. No distribution or service (12b-1) fees are paid to PIMS as distributor of the Class I shares of the portfolios of The Prudential Series Fund, which is the class of shares owned by the Account.

The Advanced Series Trust has a distribution agreement with Prudential Annuities Distributors, Inc. (“PAD”), an indirect, wholly-owned subsidiary of Prudential Financial, which acts as the distributor of the shares of each portfolio of the Advanced Series Trust. Distribution and service fees are paid to PAD by most portfolios of the Advanced Series Trust.

Prudential Mutual Fund Services LLC, an affiliate of the Investment Managers and an indirect, wholly-owned subsidiary of Prudential Financial, serves as the transfer agent of each portfolio of The Prudential Series Fund and the Advanced Series Trust.

Certain charges and fees of the portfolios of The Prudential Series Fund and the Advanced Series Trust may be waived and/or reimbursed by Prudential and its affiliates. Prudential and its affiliates reserve the right to discontinue these waivers/reimbursements at its discretion, subject to the contractual obligations of Prudential and its affiliates.

See The Prudential Series Fund and the Advanced Series Trust financial statements for further discussion of such expense and waiver/reimbursement arrangements. The subaccounts of the Account indirectly bear the expenses of the underlying portfolios of The Prudential Series Fund and the Advanced Series Trust in which it invests, including the related party expenses disclosed above.

Note 7:    Financial Highlights

A summary of units outstanding, unit values, net assets, investment income ratios, expense ratios, excluding expenses of the underlying Portfolios, and total returns by subaccount is presented below for each of the five periods preceding December 31, 2025.




A13
NOTES TO FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT—(Continued)


At the period ended
For the period ended
Units Outstanding
(000s)
Unit ValueNet
Assets
(000s)		Investment
Income
Ratio*		Expense Ratio**Total Return***
PSF PGIM Government Money Market Portfolio (Class I)
December 31, 20253,078 $3.94 $12,139 3.97 %0.35 %3.68 %
December 31, 20243,602 $3.80 $13,699 4.89 %0.35 %4.65 %
December 31, 20233,637 $3.63 $13,217 4.77 %0.35 %4.52 %
December 31, 20223,549 $3.48 $12,341 1.34 %0.35 %1.04 %
December 31, 20213,663 $3.44 $12,607 0.04 %0.35 %-0.29 %
PSF PGIM Total Return Bond Portfolio (Class I)
December 31, 20251,855 $13.17 $24,426 0.00 %0.32 %7.45 %
December 31, 20241,873 $12.26 $22,958 0.00 %0.32 %2.67 %
December 31, 20232,032 $11.94 $24,255 0.00 %0.32 %6.93 %
December 31, 20222,301 $11.16 $25,692 0.00 %0.32 %-15.08 %
December 31, 20212,428 $13.15 $31,927 0.00 %0.33 %-1.08 %
PSF PGIM Jennison Blend Portfolio (Class I)
December 31, 20254,176 $74.53 $311,209 0.00 %0.29 %18.19 %
December 31, 20244,437 $63.06 $279,767 0.00 %0.29 %25.95 %
December 31, 20234,832 $50.07 $241,934 0.00 %0.29 %32.14 %
December 31, 20225,187 $37.89 $196,526 0.00 %0.29 %-25.31 %
December 31, 20215,571 $50.73 $282,620 0.00 %0.29 %20.01 %
PSF PGIM Flexible Managed Portfolio (Class I)
December 31, 20256,742 $34.21 $230,685 0.00 %0.13 %13.02 %
December 31, 20247,228 $30.27 $218,823 0.00 %0.14 %15.36 %
December 31, 20237,765 $26.24 $203,767 0.00 %0.14 %17.77 %
December 31, 20228,297 $22.28 $184,890 0.00 %0.13 %-14.82 %
December 31, 20218,843 $26.16 $231,325 0.00 %0.14 %17.20 %
PSF PGIM 50/50 Balanced Portfolio (Class I)
December 31, 20252,918 $23.32 $68,044 0.00 %0.17 %11.97 %
December 31, 20243,132 $20.83 $65,237 0.00 %0.18 %12.83 %
December 31, 20233,361 $18.46 $62,051 0.00 %0.18 %15.25 %
December 31, 20223,612 $16.02 $57,857 0.00 %0.18 %-14.85 %
December 31, 20213,844 $18.81 $72,302 0.00 %0.18 %13.17 %
PSF PGIM High Yield Bond Portfolio (Class I)
December 31, 2025426 $11.58 $4,933 0.00 %0.35 %8.52 %
December 31, 2024457 $10.67 $4,880 0.00 %0.35 %8.23 %
December 31, 2023496 $9.86 $4,887 0.00 %0.35 %11.43 %
December 31, 2022513 $8.85 $4,540 0.00 %0.35 %-11.55 %
December 31, 2021528 $10.00 $5,282 0.00 %0.35 %7.55 %
PSF Stock Index Portfolio (Class I)
December 31, 2025808 $41.14 $33,245 0.00 %0.35 %17.15 %
December 31, 2024869 $35.12 $30,518 0.00 %0.35 %24.21 %
December 31, 2023929 $28.27 $26,273 0.00 %0.35 %25.48 %
December 31, 2022988 $22.53 $22,257 0.00 %0.35 %-18.62 %
December 31, 20211,050 $27.69 $29,060 0.00 %0.35 %27.83 %
PSF PGIM Jennison Value Portfolio (Class I)
December 31, 2025360 $33.58 $12,088 0.00 %0.35 %16.47 %
December 31, 2024387 $28.83 $11,149 0.00 %0.35 %20.54 %
December 31, 2023416 $23.92 $9,957 0.00 %0.35 %14.80 %
December 31, 2022441 $20.83 $9,183 0.00 %0.35 %-8.21 %
December 31, 2021473 $22.70 $10,746 0.00 %0.35 %27.34 %
PSF Natural Resources Portfolio (Class I) (merged April 11, 2025)
December 31, 2025— $22.27 $— 0.00 %0.35 %-6.26 %
December 31, 2024232 $23.76 $5,519 0.00 %0.35 %4.01 %
December 31, 2023248 $22.84 $5,663 0.00 %0.35 %1.63 %
December 31, 2022261 $22.48 $5,872 0.00 %0.35 %21.62 %
December 31, 2021277 $18.48 $5,119 0.00 %0.35 %25.07 %
A14
NOTES TO FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT—(Continued)


At the period ended
For the period ended
Units Outstanding
(000s)
Unit ValueNet
Assets
(000s)		Investment
Income
Ratio*		Expense Ratio**Total Return***
PSF Global Portfolio (Class I)
December 31, 2025712 $10.05 $7,152 0.00 %0.35 %21.61 %
December 31, 2024746 $8.26 $6,165 0.00 %0.35 %14.75 %
December 31, 2023809 $7.20 $5,825 0.00 %0.35 %19.18 %
December 31, 2022854 $6.04 $5,162 0.00 %0.35 %-19.08 %
December 31, 2021924 $7.47 $6,898 0.00 %0.35 %17.81 %
PSF PGIM Government Income Portfolio (Class I) (merged April 25, 2025)
December 31, 2025— $4.90 $— 0.00 %0.35 %2.93 %
December 31, 2024304 $4.76 $1,447 0.00 %0.35 %0.66 %
December 31, 2023319 $4.73 $1,508 0.00 %0.35 %4.73 %
December 31, 2022320 $4.52 $1,443 0.00 %0.35 %-13.75 %
December 31, 2021328 $5.24 $1,718 0.00 %0.35 %-3.51 %
PSF PGIM Jennison Growth Portfolio (Class I)
December 31, 20251,084 $26.56 $28,791 0.00 %0.35 %13.87 %
December 31, 20241,171 $23.32 $27,322 0.00 %0.35 %30.42 %
December 31, 20231,269 $17.88 $22,698 0.00 %0.35 %52.97 %
December 31, 20221,345 $11.69 $15,726 0.00 %0.35 %-37.82 %
December 31, 20211,465 $18.80 $27,544 0.00 %0.35 %15.60 %
PSF Small-Cap Stock Index Portfolio (Class I)
December 31, 2025420 $17.27 $7,257 0.00 %0.35 %5.32 %
December 31, 2024449 $16.40 $7,367 0.00 %0.35 %7.98 %
December 31, 2023475 $15.19 $7,206 0.00 %0.35 %15.33 %
December 31, 2022505 $13.17 $6,655 0.00 %0.35 %-16.66 %
December 31, 2021554 $15.80 $8,755 0.00 %0.35 %25.90 %
AST Cohen & Steers Realty Portfolio (merged January 24, 2025)
December 31, 2025— $12.25 $— 0.00 %0.35 %1.67 %
December 31, 2024323 $12.05 $3,899 0.00 %0.35 %6.30 %
December 31, 2023349 $11.34 $3,954 0.00 %0.35 %11.69 %
December 31, 2022370 $10.15 $3,755 0.00 %0.35 %-25.62 %
December 31, 202112 $13.65 $167 0.00 %0.35 %35.48 %
AST Large-Cap Equity Portfolio (available January 24, 2025)
December 31, 2025382 $11.00 $4,203 0.00 %0.35 %10.35 %
December 31, 2024— $— $— 0.00 %0.00 %0.00 %
December 31, 2023— $— $— 0.00 %0.00 %0.00 %
December 31, 2022— $— $— 0.00 %0.00 %0.00 %
December 31, 2021— $— $— 0.00 %0.00 %0.00 %
A15
NOTES TO FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT—(Continued)


*
These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying Portfolios, net of management fees assessed by the fund manager, divided by the average daily net assets. These ratios exclude those expenses, such as mortality and expense risk charges, that result in direct reductions in the unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying Portfolios in which the subaccount invests.
**
These amounts represent the annualized contract expenses of the Account, consisting primarily of mortality and expense risk charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying Portfolios are excluded. Expense ratio is net of the reimbursement for excess expenses. In the absence of the reimbursement for excess expenses, the expense ratio would be higher.
***
These amounts represent the total returns for the periods indicated, including changes in the value of the underlying Portfolios, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Contract owners may experience different total returns based on their investment options. Subaccounts with a date notation indicate the effective date of that subaccount in the Account. Total returns for periods less than one year are not annualized. The total return is calculated for each of the five periods preceding December 31, 2025 or for the periods indicated within. Total return may reflect the reimbursement for excess expenses. In the absence of the reimbursement for excess expenses, the total return would be lower.
Note 8:     Charges and Expenses

The following represents the various charges and expenses of the Account which are paid to Pruco Life.
The expense ratio represents the annualized contract expenses of the Account for the period indicated and includes those expenses that are charged through a reduction of the unit value, which consists solely of the mortality and expense risk charges. This fee is charged at an effective annual rate of up to 0.35%, and is applied daily against the net assets of each subaccount. Expenses of the underlying Portfolios and charges made directly to contract owner accounts through either the redemption of units or from premium payments are excluded.
Charges deducted from premium payments range from 0% to 3.2% and a premium processing charge is deducted that ranges from $30 to $48 on an annualized basis. The amount deducted for the premium processing charge is determined by the frequency of premium payments. The percentage of the premium payment deducted consists of taxes attributable to premiums, any applicable sales charge, a guaranteed minimum death benefit fee, and an additional mortality risk fee.

Reimbursement for excess expenses - Expenses, including a management fee charged by PGIM Investments, are incurred by each portfolio of The Prudential Series Fund. PSF PGIM Government Money Market Portfolio (Class I), PSF PGIM Total Return Bond Portfolio (Class I), PSF PGIM Jennison Blend Portfolio (Class I), PSF PGIM Flexible Managed Portfolio (Class I) and PSF PGIM 50/50 Balanced Portfolio (Class I) subaccounts of the Account are reimbursed by Pruco Life for expenses indirectly incurred through their investment in the respective portfolios of The Prudential Series Fund when such expenses exceed 0.40% of the average daily net assets of the respective portfolios of The Prudential Series Fund. During the period ended December 31, 2025, there was a reimbursement for excess expenses for certain subaccounts as noted in the Statements of Operations.

A16
NOTES TO FINANCIAL STATEMENTS OF
PRUCO LIFE VARIABLE INSURANCE ACCOUNT—(Continued)


Note 9:    Other

Accumulation units are the contract owner's interest allocated to the variable account during the accumulation period of the contract.

Contract owner net payments represent contract owner contributions, net of applicable deductions, charges, and state premium taxes.

Policy loans represent amounts borrowed by contract owners using the contract as the security for the loan.

Policy loan repayments and interest represent payments made by contract owners to reduce the total outstanding policy loan principal plus accrued interest.

Surrenders, withdrawals and death benefits are payments to contract owners and beneficiaries made under the terms of the contract, including amounts that contract owners have requested to be withdrawn or paid to them.

Net transfers between other subaccounts or fixed rate option are amounts that contract owners have directed to be moved among subaccounts, including permitted transfers to and from the fixed rate option.

Miscellaneous transactions primarily represent timing related adjustments on contract owner transactions, such as premiums, surrenders, transfers, etc. which are funded by the general account in order to maintain appropriate contract owner account balances.

Other charges are contract level charges assessed through the redemption of units as described in Note 8, Charges and Expenses, if applicable.
A17

Report of Independent Registered Public Accounting Firm

To the Board of Directors of Pruco Life Insurance Company and the Contract Owners of Pruco Life Variable Insurance Account

Opinions on the Financial Statements

We have audited the accompanying statements of net assets of each of the subaccounts of Pruco Life
Variable Insurance Account indicated in the table below as of the dates indicated in the table below, and the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the subaccounts of Pruco Life Variable Insurance Account as of the dates indicated in the table below, and the results of each of their operations and the changes in each of their net assets for the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.

PSF PGIM Government Money Market Portfolio (Class I) (1)PSF Natural Resources Portfolio (Class I) (2)
PSF PGIM Total Return Bond Portfolio (Class I) (1)PSF Global Portfolio (Class I) (1)
PSF PGIM Jennison Blend Portfolio (Class I) (1)PSF PGIM Government Income Portfolio (Class I) (3)
PSF PGIM Flexible Managed Portfolio (Class I) (1)PSF PGIM Jennison Growth Portfolio (Class I) (1)
PSF PGIM 50/50 Balanced Portfolio (Class I) (1)PSF Small-Cap Stock Index Portfolio (Class I) (1)
PSF PGIM High Yield Bond Portfolio (Class I) (1)AST Cohen & Steers Realty Portfolio (4)
PSF Stock Index Portfolio (Class I) (1)AST Large-Cap Equity Portfolio (5)
PSF PGIM Jennison Value Portfolio (Class I) (1)
(1) Statement of net assets as of December 31, 2025, statement of operations for the year ended December 31, 2025 and statement of changes in net assets for the years ended December 31, 2025 and 2024.
(2) Statement of net assets as of April 11, 2025 (date of merger), statement of operations for the period January 1, 2025 to April 11, 2025 (date of merger) and statement of changes in net assets for the period January 1, 2025 to April 11, 2025 (date of merger) and for the year ended December 31, 2024.
(3) Statement of net assets as of April 25, 2025 (date of merger), statement of operations for the period January 1, 2025 to April 25, 2025 (date of merger) and statement of changes in net assets for the period January 1, 2025 to April 25, 2025 (date of merger) and for the year ended December 31, 2024.
(4) Statement of net assets as of January 24, 2025 (date of merger), statement of operations for the period January 1, 2025 to January 24, 2025 (date of merger) and statement of changes in net assets for the period January 1, 2025 to January 24, 2025 (date of merger) and for the year ended December 31, 2024.
(5) Statement of net assets as of December 31, 2025, statement of operations for the period January 24, 2025 (commencement of operations) to December 31, 2025 and statement of changes in net assets for the period January 24, 2025 (commencement of operations) to December 31, 2025.

Basis for Opinions

These financial statements are the responsibility of the Pruco Life Insurance Company management. Our responsibility is to express an opinion on the financial statements of each of the subaccounts of Pruco Life Variable Insurance Account based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to each of the subaccounts of Pruco Life Variable Insurance Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as
A18

evaluating the overall presentation of the financial statements. Our procedures included confirmation of investments owned as of December 31, 2025 by correspondence with the transfer agent of the investee mutual funds. We believe that our audits provide a reasonable basis for our opinions.






/s/ PricewaterhouseCoopers LLP
New York, New York
April 7, 2026

We have served as the auditor of one or more of the subaccounts of Pruco Life Variable Insurance Account since at least 2014. We have not been able to determine the specific year we began serving as auditor of one or more of the subaccounts of Pruco Life Variable Insurance Account.
A19
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
CONSOLIDATED FINANCIAL STATEMENTS INDEX
 Page
B-2
B-3
B-5
B-6
B-7
B-8
B-11
B-11
B-12
B-26
B-40
B-41
B-49
B-65
B-67
B-69
B-80
B-85
B-90
B-99
B-102
B-105
B-105
B-112
B-115
B-116
B-1
Table of Contents                                    
Management’s Annual Report on Internal Control Over Financial Reporting
Management of Pruco Life Insurance Company (together with its consolidated subsidiaries, the “Company”) is responsible for establishing and maintaining adequate internal control over financial reporting. Management conducted an assessment of the effectiveness, as of December 31, 2025, of the Company’s internal control over financial reporting, based on the framework established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Based on our assessment under that framework, management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2025.
Our internal control over financial reporting is a process designed by or under the supervision of our principal executive and principal financial officers to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and the directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on our financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
This Annual Report does not include an attestation report of the Company’s registered public accounting firm, PricewaterhouseCoopers LLP, regarding the internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this Annual Report.
March 6, 2026
B-2
Table of Contents                                    
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholder of Pruco Life Insurance Company
Opinion on the Financial Statements
We have audited the accompanying consolidated statements of financial position of Pruco Life Insurance Company and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive income (loss), of equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes and financial statement schedules listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
B-3
Table of Contents                                    
Valuation of Guaranteed Benefit Features Associated with Certain Annuity and Life Products Included in the Market Risk Benefits and the Liability for Future Policy Benefits

As described in Notes 2, 6, 9 and 11 to the consolidated financial statements, the Company issues certain annuity and life contracts which contain guaranteed benefit features. Certain of the guarantees associated with variable annuity contracts are accounted for as market risk benefits. The market risk benefits represent contracts or contract features that expose the Company to other than nominal capital market risk, primarily related to deferred annuities with guaranteed minimum benefits. The benefits are accounted for using a fair value measurement methodology. The fair value of market risk benefits is calculated as the present value of expected future benefit payments to contractholders less the present value of expected future fees attributable to the market risk benefits, based on assumptions a market participant would use in valuing the market risk benefits. On a quarterly basis, changes in the fair value of market risk benefits are recorded in net income, net of related hedges, except for the portion of the change attributable to changes in the Company’s non-performance risk which is recorded in other comprehensive income. This methodology could result in either a liability or asset balance, given changing capital market conditions and various actuarial assumptions. As of December 31, 2025, the fair value of the obligations associated with these guarantees accounted for as market risk benefit assets was $2.65 billion and for market risk benefit liabilities was $4.30 billion. As there is no observable active market for the transfer of these obligations, the valuations are calculated using internally-developed models with option pricing techniques. The models are based on a risk neutral valuation framework and incorporate premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows. The significant inputs to the valuation models for these market risk benefits include capital market assumptions, such as interest rate levels and volatility assumptions, the Company’s market-perceived non-performance risk under the contract, as well as actuarially determined assumptions, including contractholder behavior, such as lapse rates, benefit utilization rates, withdrawal rates and mortality rates (collectively, the significant market risk benefit assumptions). For certain life insurance products that include certain other contract features, including no-lapse guarantees, additional insurance reserves are established when associated assessments are recognized. The liability for no-lapse guarantee features is included within the additional insurance reserves balance in Note 9. As of December 31, 2025, the additional insurance reserve was $18.52 billion, recorded within the liability for future policy benefits. As disclosed by management, this liability is established using current best estimate assumptions, including mortality rates, lapse rates, and premium pattern rates, as well as interest rate and equity market return assumptions (collectively, the significant additional insurance reserve assumptions), and is based on the ratio of the present value of total expected excess payments (i.e., payments in excess of account value) over the life of the contract divided by the present value of total expected assessments (i.e., benefit ratio). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date.

The principal considerations for our determination that performing procedures relating to the valuation of guaranteed benefit features associated with certain annuity and life products that are accounted for as market risk benefits and those that are included in the liability for future policy benefits is a critical audit matter are (i) the significant judgment by management when determining the valuation model for the benefit features accounted for as market risk benefits due to the lack of an observable market for these guarantees and when developing the aforementioned significant assumptions for the guaranteed benefit features accounted for as market risk benefits and additional insurance reserves, (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence related to management's model for market risk benefits recorded at fair value and the aforementioned assumptions used by management in the valuation of the liabilities for the guaranteed benefit features accounted for as market risk benefits and additional insurance reserves, and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the valuation of guaranteed benefit features associated with certain annuity and life products included in market risk benefits and the liability for future policy benefits, including controls over the model for the benefit features accounted for as market risk benefits and development of the assumptions used in the valuation of the liabilities for the guaranteed benefit features accounted for as market risk benefits and additional insurance reserves. These procedures also included, among others, (i) testing management’s process for determining the valuation of guaranteed benefit features associated with certain annuity and life products included in market risk benefits and the liability for future policy benefits, (ii) the use of professionals with specialized skill and knowledge to assist in evaluating (a) the appropriateness of management’s model for market risk benefits recorded at fair value and (b) the reasonableness of the aforementioned assumptions used in the valuation based on industry knowledge and data as well as historical Company data and experience. The procedures also included testing the completeness and accuracy of data used to develop the aforementioned assumptions and testing that the aforementioned assumptions are accurately reflected in the models.


/s/ PricewaterhouseCoopers LLP

New York, New York
March 6, 2026

We have served as the Company's auditor since 1996.
B-4
Table of Contents                                    

PRUCO LIFE INSURANCE COMPANY
Consolidated Statements of Financial Position
December 31, 2025 and 2024 (in thousands, except share amounts)
December 31, 2025December 31, 2024
ASSETS
Fixed maturities, available-for-sale, at fair value (allowance for credit losses: 2025 – $14,282;
2024 – $40,414) (amortized cost: 2025 – $48,230,218; 2024 – $36,980,933)(1)
$47,624,171 $34,986,160 
Fixed maturities, trading, at fair value (amortized cost: 2025 – $5,241,598; 2024 – $4,415,277)
4,892,507 3,845,045 
Equity securities, at fair value (cost: 2025 – $2,826,642; 2024 – $2,650,542)
2,869,631 2,623,820 
Policy loans1,666,965 1,541,480 
Short-term investments (net of allowance for credit losses: 2025 – $0; 2024 – $49)
320,794 517,386 
Commercial mortgage and other loans (net of $51,190 and $37,715 allowance for credit losses at December 31, 2025 and 2024, respectively)
10,082,667 7,759,323 
Other invested assets (includes $133,830 and $68,623 of assets measured at fair value at December 31, 2025 and 2024, respectively)(1)
2,297,535 1,582,094 
Total investments69,754,270 52,855,308 
Cash and cash equivalents(1)2,876,388 3,325,698 
Deferred policy acquisition costs8,655,183 7,807,060 
Accrued investment income(1)618,033 466,394 
Reinsurance recoverables and deposit receivables (net of $145 and $10 allowance for credit losses; includes $804,855 and $645,193 of embedded derivatives at fair value at December 31, 2025 and 2024, respectively)
54,370,370 48,247,817 
Receivables from parent and affiliates963,452 678,028 
Deferred sales inducements297,413 322,351 
Income tax assets(1)1,741,122 2,120,654 
Market risk benefit assets2,655,866 2,637,363 
Other assets(1)1,852,055 1,850,800 
Separate account assets118,609,218 118,143,256 
TOTAL ASSETS$262,393,370 $238,454,729 
LIABILITIES AND EQUITY
LIABILITIES
Policyholders’ account balances$86,592,965 $69,628,318 
Future policy benefits28,230,098 25,113,767 
Market risk benefit liabilities4,482,417 4,281,244 
Cash collateral for loaned securities22,622 121,372 
Reinsurance and funds withheld payables (includes $265 and $0 of embedded derivatives at fair value at December 31, 2025 and 2024, respectively)
11,377,505 8,611,141 
Payables to parent and affiliates(1)2,497,217 3,653,848 
Other liabilities(1)2,537,050 4,199,803 
Separate account liabilities118,609,218 118,143,256 
Total liabilities254,349,092 233,752,749 
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 17)
EQUITY
Common stock ($10 par value; 1,000,000 shares authorized; 250,000 shares issued and outstanding)
2,500 2,500 
Additional paid-in capital5,806,878 4,923,299 
Retained earnings / (accumulated deficit)2,104,835 272,519 
Accumulated other comprehensive income (loss)8,855 (601,877)
Total Pruco Life Insurance Company equity7,923,068 4,596,441 
Noncontrolling interests121,210 105,539 
Total equity8,044,278 4,701,980 
TOTAL LIABILITIES AND EQUITY$262,393,370 $238,454,729 
(1) See Note 4 for details of balances associated with variable interest entities.


See Notes to Consolidated Financial Statements
B-5
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Consolidated Statements of Operations and Comprehensive Income (Loss)
Years Ended December 31, 2025, 2024, and 2023 (in thousands)

202520242023
REVENUES
Premiums (includes $2,301, $(2,690) and $6,978 of gains (losses) from changes in estimates on deferred profit liability amortization for the years ended December 31, 2025, 2024, and 2023, respectively)
$547,201 $393,127 $328,897 
Policy charges and fee income1,707,338 7,382,797 1,536,606 
Net investment income3,210,522 2,422,017 1,675,522 
Asset administration fees205,332 223,563 232,950 
Other income (loss)2,261,776 759,756 751,363 
Realized investment gains (losses), net(1,430,425)451,417 (1,147,099)
Change in value of market risk benefits, net of related hedging gains (losses)(506,994)(433,955)(106,773)
TOTAL REVENUES5,994,750 11,198,722 3,271,466 
BENEFITS AND EXPENSES
Policyholders’ benefits779,722 8,352,333 503,789 
Change in estimates of liability for future policy benefits(79,505)(20,643)3,952 
Interest credited to policyholders’ account balances1,177,660 1,037,731 621,645 
Amortization of deferred policy acquisition costs663,527 (372,201)539,510 
General, administrative and other expenses1,186,839 1,228,443 1,124,923 
TOTAL BENEFITS AND EXPENSES3,728,243 10,225,663 2,793,819 
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE2,266,507 973,059 477,647 
Income tax expense (benefit)420,583 135,149 26,468 
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE
1,845,924 837,910 451,179 
Equity in earnings of operating joint venture, net of taxes(335)(425)(433)
NET INCOME (LOSS)$1,845,589 $837,485 $450,746 
Less: Income (loss) attributable to noncontrolling interests13,273 13,495 488
NET INCOME (LOSS) ATTRIBUTABLE TO PRUCO LIFE INSURANCE COMPANY$1,832,316 $823,990 $450,258 
Other comprehensive income (loss), before tax:
Foreign currency translation adjustments3,326 (4,595)2,419 
Net unrealized investment gains (losses)995,445 (335,093)691,952 
Interest rate remeasurement of future policy benefits(40,022)58,676 (60,978)
Gain (loss) from changes in non-performance risk on market risk benefits(185,092)(441,138)(659,927)
Total773,657 (722,150)(26,534)
Less: Income tax expense (benefit) related to other comprehensive income (loss)162,925 (151,234)(5,638)
Other comprehensive income (loss), net of taxes610,732 (570,916)(20,896)
Comprehensive income (loss)2,456,321 266,569 429,850 
Less: Comprehensive income (loss) attributable to noncontrolling interests13,273 13,495 488 
Comprehensive income (loss) attributable to Pruco Life Insurance Company$2,443,048 $253,074 $429,362 








See Notes to Consolidated Financial Statements
B-6
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Consolidated Statements of Equity
Years Ended December 31, 2025, 2024, and 2023 (in thousands)
  Common  Stock  Additional  Paid-in
Capital		Retained Earnings / (Accumulated Deficit)Accumulated
Other
  Comprehensive  Income (Loss)		Total Pruco Life Insurance Company EquityNoncontrolling InterestsTotal 
Equity
Balance, December 31, 2022$2,500 $6,037,914 $(1,001,729)$(10,065)$5,028,620 $0 $5,028,620 
Return of capital(1,400,000)(1,400,000)(1,400,000)
Contributed capital412,382 412,382 412,382 
Contributions from noncontrolling interests29,706 29,706 
Contributed (distributed) capital-parent/child asset transfers2,306 2,306 2,306 
Comprehensive income (loss):
Net income (loss)450,258 450,258 488 450,746 
Other comprehensive income (loss), net of tax(20,896)(20,896)0 (20,896)
Total comprehensive income (loss)450,258 (20,896)429,362 488 429,850 
Balance, December 31, 20232,500 5,052,602 (551,471)(30,961)4,472,670 30,194 4,502,864 
Return of capital(550,000)(550,000)(550,000)
Contributed capital415,696 415,696 415,696 
Contributions from noncontrolling interests250,422 250,422 
Distributions to noncontrolling interests(188,572)(188,572)
Contributed (distributed) capital-parent/child asset transfers5,001 5,001 5,001 
Comprehensive income (loss):
Net income (loss)823,990 823,990 13,495 837,485 
Other comprehensive income (loss), net of tax(570,916)(570,916)0 (570,916)
Total comprehensive income (loss)823,990 (570,916)253,074 13,495 266,569 
Balance, December 31, 20242,500 4,923,299 272,519 (601,877)4,596,441 105,539 4,701,980 
Contributed capital852,924 852,924 852,924 
Contributions from noncontrolling interests185,851 185,851 
Distributions to noncontrolling interests(183,453)(183,453)
Contributed (distributed) capital-parent/child asset transfers30,655 30,655 30,655 
Comprehensive income (loss):
Net income (loss)1,832,316 1,832,316 13,273 1,845,589 
Other comprehensive income (loss), net of tax610,732 610,732 0 610,732 
Total comprehensive income (loss)1,832,316 610,732 2,443,048 13,273 2,456,321 
Balance, December 31, 2025$2,500 $5,806,878 $2,104,835 $8,855 $7,923,068 $121,210 $8,044,278 



See Notes to Consolidated Financial Statements
B-7
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Consolidated Statements of Cash Flows
Years Ended December 31, 2025, 2024, and 2023 (in thousands)

202520242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)$1,845,589 $837,485 $450,746 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Policy charges and fee income(20,050)53,496 69,986 
Interest credited to policyholders’ account balances1,177,660 1,037,731 621,645 
Realized investment (gains) losses, net1,430,425 (451,417)1,147,099 
Change in value of market risk benefits, net of related hedging (gains) losses506,994 433,955 106,773 
Change in:
Future policy benefits and other insurance liabilities2,242,861 2,689,669 2,241,530 
Reinsurance related-balances(2,205,000)(1,124,001)(678,725)
Accrued investment income(135,863)(116,571)(110,760)
Net payables to (receivables from) parent and affiliates(175,547)(36,204)(120,565)
Deferred policy acquisition costs(848,123)(950,022)(581,925)
Income taxes207,081 (228,166)(40,796)
Derivatives, net441,940 1,461,192 (282,729)
Other, net(306,688)(126,696)(362,384)
Cash flows from (used in) operating activities4,161,279 3,480,451 2,459,895 
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale6,359,317 4,240,000 1,736,809 
Fixed maturities, trading1,570,879 802,378 97,693 
Equity securities2,558,597 961,421 189,237 
Policy loans214,557 188,153 182,973 
Ceded policy loans(112,060)(113,148)(119,787)
Short-term investments887,118 1,303,977 456,983 
Commercial mortgage and other loans490,870 731,440 167,888 
Other invested assets280,923 99,852 19,693 
Notes receivable from parent and affiliates245,595 722 4,500 
Payments for the purchase/origination of:
Fixed maturities, available-for-sale(17,330,688)(13,766,055)(7,544,596)
Fixed maturities, trading(2,560,208)(1,819,224)(857,717)
Equity securities(2,925,243)(2,373,486)(678,847)
Policy loans(307,747)(255,811)(1,162,959)
Ceded policy loans99,749 125,795 151,019 
Short-term investments(795,865)(1,441,031)(690,173)
Commercial mortgage and other loans(2,725,871)(2,392,198)(1,341,450)
Other invested assets(939,389)(460,721)(190,826)
Notes receivable from parent and affiliates(378,745)(367,700)(44)
Derivatives, net(108,334)171,230 (55,091)
Other, net(22,519)(3,264)(4,808)
Cash flows from (used in) investing activities(15,499,064)(14,367,670)(9,639,503)
B-8
Table of Contents                                    
202520242023
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders’ account deposits16,982,148 17,265,165 12,101,043 
Affiliated ceded policyholders’ account deposits(2,093,412)(1,169,002)(1,189,331)
Policyholders’ account withdrawals(4,832,965)(3,980,496)(3,695,248)
Affiliated ceded policyholders’ account withdrawals685,223 764,421 625,238 
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities
(98,745)(96,928)131,577 
Contributed capital 620,000 0 405,000 
Return of capital0 (550,000)(1,400,000)
Contributed (distributed) capital - parent/child asset transfers0 6,332 2,919 
Net change in all other financing arrangements (maturities 90 days or less)0 0 (584)
Repayments of debt (maturities longer than 90 days)0 (180,411)(121,772)
Drafts outstanding(24,063)(84,531)(885)
Contributions from noncontrolling interests185,851 250,422 29,706 
Distributions to noncontrolling interests(183,453)(188,572)0 
Other, net(352,109)36,725 34,110 
Cash flows from (used in) financing activities10,888,475 12,073,125 6,921,773 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS(449,310)1,185,906 (257,835)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR3,325,698 2,139,792 2,397,627 
CASH AND CASH EQUIVALENTS, END OF YEAR$2,876,388 $3,325,698 $2,139,792 
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid (refunded), net(1)$198,691 $363,208 $67,203 
Interest paid$852 $2,644 $4,533 
(1) See Note 13 for additional information regarding the income taxes paid (refunded), net amount by jurisdiction for the year ended December 31, 2025.


Significant Non-Cash Transactions During The Year

2025
"Cash flows from (used in) operating activities" for the year ended December 31, 2025 excludes certain non-cash activities in the amount of $(1,397) million related to the affiliated reinsurance transaction with The Prudential Insurance Company of America ("Prudential Insurance") effective October 1, 2025. See Note 12 for additional information.

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 $7,218 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"). See Note 12 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 $(102) million related to the affiliated reinsurance transaction with Prudential Arizona Reinsurance Captive Company ("PARCC"), effective October 1, 2024. See Note 12 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 $1,129 million related to the affiliated reinsurance transaction with Prudential Universal Reinsurance Entity Company ("PURE") and Prudential Insurance, effective January 1, 2024. See Note 12 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 16 for additional information.
B-9
Table of Contents                                    

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 12 for more details regarding this transaction.
































































See Notes to Consolidated Financial Statements
B-10
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements

1. BUSINESS AND BASIS OF PRESENTATION

Pruco Life Insurance Company, (“Pruco Life”) is a wholly-owned subsidiary of Prudential Insurance, which in turn is a direct wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). 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.

Pruco Life has one wholly-owned insurance subsidiary, Pruco Life Insurance Company of New Jersey, (“PLNJ”). PLNJ is a stock life insurance company organized in 1982 under the laws of the State of New Jersey. It is licensed to sell life insurance and annuities in New Jersey and New York only. Pruco Life and its subsidiaries are together referred to as the "Company", "we" or "our" and all financial information is shown on a consolidated basis.

Basis of Presentation

The Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Consolidated Financial Statements include the accounts of Pruco Life and entities over which the Company exercises control, including majority-owned subsidiaries, and variable interest entities ("VIEs") in which the Company is considered the primary beneficiary. Intercompany balances and transactions have been eliminated.

Segment Information

Although there are separate products within Pruco Life, the Company is organized as a single reportable segment and manages the business activities on a consolidated basis. The accounting policies are the same as those described in Note 2.

The Company analyzes operating performance using “Income (loss) from operations before income taxes and equity in earnings of operating joint venture”, as determined in accordance with U.S. GAAP. This is the measure of profit or loss used by the Company’s chief operating decision maker to evaluate performance and allocate resources. The measure of segment assets is reported as “Total Assets” on the Consolidated Statements of Financial Position. Segment revenue is reported as “Total Revenues” on the Consolidated Statements of Operations and Comprehensive Income (Loss). As the Company has one reportable segment, there are no intersegment revenues. The Company discloses all significant expense categories separately on the Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company’s chief operating decision maker is a group of Prudential Financial executives that include the chief financial officer, controller, treasurer, and business leaders, which include the Company’s chief executive officer and chief financial officer. Overall business decisions for the Company are made by this group of executives. Such business decisions include the allocation of capital, distribution/sale of products, and allocation/deployment of overall Prudential Financial resources.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates include those used in determining future policy benefits; policyholders' account balances and reinsurance related to the fair value of embedded derivative instruments associated with the index-linked features of certain universal life and annuity products; market risk benefits; the valuation of investments including derivatives, the measurement of allowance for credit losses, and the recognition of other-than-temporary impairments; reinsurance recoverables; any provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters.

B-11
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Reclassifications

Certain amounts in prior periods have been reclassified to conform to the current period presentation.

2. SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS

ASSETS

Fixed maturities, available-for-sale, at fair value ("AFS debt securities") includes bonds, notes and redeemable preferred stock that are carried at fair value. See Note 6 for additional information regarding the determination of fair value. The purchased cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts to maturity or, if applicable, call date.

AFS debt securities, where fair value is below amortized cost, are reviewed quarterly to determine whether the amortized cost basis of the security is recoverable. For mortgage-backed and asset-backed AFS debt securities, a credit impairment will be recognized in earnings as an allowance for credit losses and reported in “Realized investment gains (losses), net,” to the extent the amortized cost exceeds the net present value of projected future cash flows (the “net present value”) for the security. A credit impairment recorded cannot exceed the difference between the amortized cost and fair value of the respective security. The net present value used to measure a credit impairment is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the AFS debt security at the date of acquisition. Once the Company has deemed all or a portion of the amortized cost uncollectible, the allowance is removed from the balance sheet by writing down the amortized cost basis of the AFS debt security. Any amount of an AFS debt security’s change in fair value not recorded as an allowance for credit losses will be recorded in Other Comprehensive Income (loss) (“OCI”).

For all other AFS debt securities, qualitative factors are first considered including, but not limited to, the extent of the decline and the reasons for the decline in value (e.g., credit events, currency or interest-rate related, including general credit spread widening), and the financial condition of the issuer. If analysis of these qualitative factors results in the security needing to be impaired, a credit impairment will be recognized and measured using the same process for mortgage-backed and asset-backed AFS debt securities.

When an AFS debt security's fair value is below amortized cost and the Company has the intent to sell the AFS debt security, or it is more likely than not the Company will be required to sell the AFS debt security before its anticipated recovery, the amortized cost basis of the AFS debt security is written down to fair value and any previously recognized allowance is reversed. The write-down is reported in "Realized investment gains (losses), net".

Interest income, including amortization of premium and accretion of discount, are included in “Net investment income” under the effective yield method. Prepayment premiums are also included in “Net investment income”.

For high credit quality mortgage-backed and asset-backed AFS debt securities (those rated AA or above), the amortized cost and effective yield of the securities are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost are recorded as a charge or credit to “Net investment income” in accordance with the retrospective method.

For mortgage-backed and asset-backed AFS debt securities rated below AA, the effective yield is adjusted prospectively for any changes in the estimated timing and amount of cash flows unless the investment is purchased with credit deterioration or an allowance is currently recorded for the respective security. If an investment is impaired, any changes in the estimated timing and amount of cash flows will be recorded as the credit impairment, as opposed to a yield adjustment. If the asset is purchased with credit deterioration (or previously impaired), the effective yield will be adjusted if there are favorable changes in cash flows subsequent to the allowance being reduced to zero.

B-12
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
For mortgage-backed and asset-backed AFS debt securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. These assumptions can significantly impact income recognition, unrealized gains and loss recorded in OCI, and the amount of impairment recognized in earnings. The payment priority of the respective security is also considered. For all other AFS debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. The Company has developed these estimates using information based on its historical experience as well as using market observable data, such as industry analyst reports and forecasts, sector credit ratings and other data relevant to the collectability of a security, such as the general payment terms of the security and the security’s position within the capital structure of the issuer.

Fixed maturities, trading, at fair value ("Trading debt securities") includes debt securities that are carried at fair value. See Note 6 for additional information regarding the determination of fair value. Realized and unrealized gains and losses for these investments are reported in “Other income (loss),” and interest income from these investments is reported in “Net investment income”.

Equity securities, at fair value consists of common stock and mutual fund shares carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income (loss),” and dividend income is reported in “Net investment income” on the ex-dividend date.

Policy loans represents funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in “Net investment income” at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies.

Short-term investments primarily consists of highly liquid debt instruments with a maturity of twelve months or less and greater than three months when purchased. These investments are generally carried at fair value or amortized cost that approximates fair value and include certain money market investments, funds managed similar to regulated money market funds, short-term debt securities issued by government-sponsored entities and other highly liquid debt instruments.

Commercial mortgage and other loans consist of commercial mortgage loans, agricultural property loans, residential mortgage loans, as well as certain other collateralized loans. Commercial mortgage and other loans held for investment are generally carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses and net of any current expected credit loss ("CECL") allowance. Certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans, and certain unfunded mortgage loan commitments where the Company cannot unconditionally cancel the commitment) are also subject to a CECL allowance. See Note 17 for additional information.

Commercial mortgage and other loans acquired, including those related to the acquisition of a business, are recorded at fair value when purchased, reflecting any premiums or discounts to unpaid principal balances. Interest income, and the amortization of the related premiums or discounts, are included in “Net investment income” under the effective yield method. Prepayment fees are also included in “Net investment income”.

The CECL allowance represents the Company’s best estimate of expected credit losses over the remaining life of the assets or off-balance sheet credit exposures. The determination of the allowance considers historical credit loss experience, current conditions, and reasonable and supportable forecasts. The allowance is calculated separately for commercial mortgage loans, agricultural property loans, residential mortgage loans, and other collateralized loans.

For commercial mortgage and agricultural property loans, the allowance is calculated using an internally developed CECL model that pools together loans that share similar risk characteristics. Similar risk characteristics used to create the pools include, but are not limited to, vintage, maturity, credit rating, and collateral type.

B-13
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Key inputs to the CECL model include unpaid principal balances, internal credit ratings, annual expected loss factors, average lives of the loans adjusted for prepayment considerations, current and historical interest rate assumptions, and other factors influencing the Company’s view of the current stage of the economic cycle and future economic conditions. Subjective considerations include a review of whether historical loss experience is representative of current market conditions and the Company’s view of the credit cycle. Model assumptions and factors are reviewed and updated as appropriate. Information about certain key inputs is detailed below.

Key factors in determining the internal credit ratings for commercial mortgage and agricultural property loans include loan-to-value and debt-service-coverage ratios. Other factors include amortization, loan term, and estimated market value growth rate and volatility for the property type and region. The loan-to-value ratio compares the carrying amount of the loan to the fair value of the underlying property or properties collateralizing the loan, and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the carrying amount of the loan exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the carrying amount of the loan. The debt service coverage ratio is a property’s net operating income as a percentage of its debt service payments. Debt service coverage ratios less than 1.0 indicates that property operations do not generate enough income to cover the loan’s current debt payments. A debt service coverage ratio greater than 1.0 indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage loan and agricultural property loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a quality re-rating process, whereby the internal quality rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary quality rating system. See Note 3 for additional information related to the loan-to-value ratios and debt service coverage ratios related to the Company’s commercial mortgage and agricultural property loan portfolios.

Annual expected loss rates are based on historical default and loss experience factors. Using average lives, the annual expected loss rates are converted into life-of-loan loss expectations.

When individual loans no longer have the credit risk characteristics of the commercial mortgage or agricultural property loan pools, they are removed from the pools and are evaluated individually for an allowance. The allowance is determined based on the outstanding loan balance less the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent.

For residential mortgage loans, the allowance is calculated using an internally developed CECL model that pools together loans that share similar risk characteristics. The estimated lifetime loss of the pool is calculated from the risk profiles of the loans, including borrower credit score, loan-to-value ratio, property type, and several key attributes of the loan and property including: loan type, loan age, loan performance history, and current performing or nonperforming status. Estimated lifetime loss rates are calculated by weighting projected losses in multiple economic scenarios based on the Company’s view of the current stage of the economic cycle and future economic conditions. The scenario losses are calibrated to industry historical experience of defaults, loss severities, and prepayment rates in multiple economic cycles, reflective of similar loan characteristics.

The CECL allowance on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. The change in allowance is reported in “Realized investment gains (losses), net”. As it relates to unfunded commitments that are in scope of this guidance, the CECL allowance is reported in “Other liabilities”, and the change in the allowance is reported in “Realized investment gains (losses), net”.

The CECL allowance for other collateralized loans carried at amortized cost is determined based on probability of default and loss given default assumptions by sector, credit quality and average lives of the loans. Additions to or releases of the allowance are reported in “Realized investment gains (losses), net”.

Once the Company has deemed a portion of the amortized cost to be uncollectible, the uncollectible portion of allowance is removed from the balance sheet by writing down the amortized cost basis of the loan. The carrying amount of the loan is not adjusted for subsequent recoveries in value.

Interest received on loans that are past due is either applied against the principal or reported as net investment income based on the Company’s assessment as to the collectability of the principal. The Company defines “past due” as principal or interest not collected at least 30 days past the scheduled contractual due date. See Note 3 for additional information about the Company’s past due loans.

B-14
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
The Company discontinues accruing interest on loans after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability. When the Company discontinues accruing interest on a loan, any accrued but uncollectible interest on the loan and other loans backed by the same collateral, if any, is charged against interest income in the same period. Generally, a loan is restored to accrual status only after all delinquent interest and principal are brought current and, in the case of loans where the payment of interest has been interrupted for a substantial period, or the loan has been modified, a regular payment performance has been established.

Commercial mortgage and other loans are occasionally restructured. These restructurings generally include one or more of the following: full or partial payoffs outside of the original contract terms; changes to interest rates; extensions of maturity; or additions or modifications to covenants. Additionally, the Company may accept assets in full or partial satisfaction of the debt.

All restructurings are evaluated under the modification guidance in ASC 310-20. When a loan is modified, the Company evaluates whether the restructuring results in a continuation of the existing loan or a new loan. For modifications that result in a continuation of the existing loan, the CECL allowance of the loan is remeasured using the modified terms, including the loan’s post-modification effective yield, and the allowance is adjusted accordingly.

For modifications that result in a new loan, any CECL allowance is reversed and a direct write-down of the loan is recorded for the amount of the allowance, and any additional loss, net of recoveries, or any gain is recorded for the difference between the fair value of the new loan and the recorded investment in the loan. The new loan is evaluated prospectively for credit impairment based on the CECL allowance process noted above.

Other invested assets consist of the Company’s non-coupon investments in limited partnerships and limited liability companies ("LPs/LLCs"), other than operating joint ventures, as well as derivative assets. LPs/LLCs interests are accounted for using either the equity method of accounting, or at fair value. The Company’s income from investments in LPs/LLCs accounted for using the equity method, other than the Company’s investments in operating joint ventures, is included in “Net investment income”. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three-month lag. For the investments reported at fair value with changes in fair value reported in current earnings, the associated realized and unrealized gains and losses are reported in “Other income (loss)”. The Company consolidates LPs in certain other instances where it is deemed to exercise control, or is considered the primary beneficiary of a variable interest entity. See Note 4 for additional information about VIEs.

Cash and cash equivalents includes cash on hand, amounts due from banks, certain money market investments, funds managed similar to regulated money market funds, other debt instruments with maturities of three months or less when purchased, other than cash equivalents that are included in "Fixed maturities, available-for-sale, at fair value,” and receivables related to securities purchased under agreements to resell (see also "Securities sold under agreements to repurchase" below.) The Company also engages in overnight borrowing and lending of funds with Prudential Financial and affiliates which are considered cash and cash equivalents. These assets are generally carried at fair value or amortized cost which approximates fair value.

Deferred policy acquisition costs ("DAC") represents costs directly related to the successful acquisition of new and renewal insurance and annuity business. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully acquired contracts. In each reporting period, previously capitalized DAC is amortized and included in “Amortization of deferred policy acquisition costs”.

DAC for most long-duration contracts is amortized on a constant-level basis at a grouped contract level over the expected life of the underlying insurance contracts. Contracts are grouped consistent with the groupings used to estimate the liability for future policy benefits (or other related balances) for the corresponding contracts. Since contracts within a grouping may be of different sizes, contracts within a group are weighted to achieve appropriate amortization and to ensure that DAC is derecognized when a policy is no longer in force. The constant-level basis used to weight contracts within a grouping and amortize DAC is generally defined as follows:

•Life insurance contracts – DAC associated with life insurance contracts is generally amortized in proportion to the initial face amount of life insurance in force. This is applicable to traditional and universal life insurance products.

•Payout annuity contracts – DAC associated with payout annuity contracts is amortized in proportion to annual benefit payments.
B-15
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)

•Deferred annuity contracts – DAC associated with fixed and variable deferred annuity contracts is amortized in proportion to deposits.

For single premium immediate annuities without life contingencies, acquisition expenses are deferred and amortized over the expected life of the contracts using the interest method.

Current period DAC amortization reflects the impact of changes in actual insurance in force during the period and changes in future assumptions effected as of the end of the quarter, where applicable. The Company typically updates actuarial assumptions annually in the second quarter, unless a material change is observed in an interim period that is indicative of a long-term trend. Generally, the Company does not expect trends to change significantly in the short-term and, to the extent these trends may change, the Company expects such changes to be gradual over the long-term.

Assumptions used for DAC are consistent with those used in estimating the liability for future policy benefits (or any other related balance) for the corresponding contract. Determining the level of aggregation and actuarial assumptions used in projecting in force terminations requires judgment. Internal criteria are developed to determine the level of aggregation by considering both qualitative and quantitative materiality thresholds.

The assumptions used in projecting in force terminations are mortality, mortality improvement, and lapse assumptions. These assumptions are generally based on the Company’s experience, industry experience and/or other factors, as applicable. For variable deferred annuity contracts, lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefits and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.

For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If policyholders surrender traditional life insurance policies in exchange for life insurance policies that do not have fixed and guaranteed terms, the Company immediately charges to expense the remaining unamortized DAC on the surrendered policies. For other internal replacement transactions, except those that involve the addition of a non-integrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. See Note 7 for additional information regarding DAC.

Accrued investment income primarily includes accruals of interest and dividend income from investments that have been earned but not yet received.

Reinsurance recoverables and deposit receivables includes amounts recoverable under reinsurance agreements and receivables that follow the deposit method of accounting (see “Reinsurance” below).

Market risk benefit assets represents market risk benefits ("MRBs") in an asset position and are presented separately from MRBs in a liability position. See “Market risk benefit liabilities” below. MRB assets also reflect ceded MRBs resulting from reinsurance of the Company's Prudential Defined Income ("PDI") traditional variable annuity contracts. See Note 12 for additional information regarding the reinsurance of PDI.

Deferred Sales Inducements ("DSI") are amounts that are credited to a policyholders’ account balance primarily as an inducement to purchase fixed and/or variable deferred annuity contracts. The Company defers sales inducements and amortizes them over the expected life of the policy using the same methodology, factors and assumptions used to amortize DAC. The Company records amortization of DSI in “Interest credited to policyholders’ account balances”. Unlike DAC, DSI are considered contractual cash flows and, as a result, are subject to periodic recoverability testing. See Note 7 for additional information regarding DSI.

Income tax assets primarily represents the net deferred tax asset and the Company’s estimated taxes receivable for the current year and open audit years.

The Company is a member of the federal income tax return of Prudential Financial and primarily files separate company state and local tax returns. Pursuant to the tax allocation arrangement with Prudential Financial, total federal income tax expense is determined on a separate company basis. Members record tax benefits to the extent tax losses or tax credits are recognized in the consolidated federal tax provision.
B-16
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)

The application of U.S. GAAP requires the Company to evaluate the recoverability of the Company’s deferred tax assets and establish a valuation allowance if necessary to reduce the Company’s deferred tax assets to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. See Note 13 for a discussion of factors considered when evaluating the need for a valuation allowance.

U.S. GAAP prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that a company has taken or expects to take on tax returns. The application of this guidance is a two-step process. First, the Company determines whether it is more likely than not, based on the technical merits, that the tax position will be sustained upon examination. If a tax position does not meet the more likely than not recognition threshold, the benefit of that position is not recognized in the financial statements. The second step is measurement. The Company measures the tax position as the largest amount of benefit that is greater than 50% likely to be realized upon ultimate resolution with a taxing authority that has full knowledge of all relevant information. This measurement considers the amounts and probabilities of the outcomes that could be realized upon ultimate settlement using the facts, circumstances, and information available at the reporting date.

The Company accrues a liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by the Internal Revenue Service ("IRS") or other taxing jurisdictions. Audit periods remain open for review until the statute of limitations has passed. Generally, for tax years which produce net operating losses, capital losses or tax credit carryforwards (“tax attributes”), the statute of limitations does not close, to the extent of these tax attributes, until the expiration of the statute of limitations for the tax year in which they are fully utilized. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company classifies all interest and penalties related to tax uncertainties as income tax expense. See Note 13 for additional information regarding income taxes.

Other assets consists primarily of deferred reinsurance losses ("DRL") (see "Reinsurance" below) which are amortized over the expected life of the reinsured contracts on a constant-level basis, receivables resulting from sales of securities that had not yet settled at the balance sheet date, premiums due, prepaid tax expenses, and the Company’s investments in operating joint ventures. Investments in operating joint ventures are generally accounted for under the equity method. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary.

Separate account assets represents segregated funds that are invested for certain policyholders, and other customers. The assets consist primarily of equity securities, fixed maturities, real estate-related investments, real estate mortgage loans, short-term investments and derivative instruments and are reported at fair value. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. The investment income and realized investment gains or losses from separate account assets generally accrue to the policyholders and are not included in the Company’s results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income”. Asset administration fees charged to the accounts are included in “Asset administration fees”. Seed money that the Company invests in separate accounts is reported in the appropriate general account asset line. Investment income and realized investment gains or losses from seed money invested in separate accounts accrue to the Company and are included in the Company’s results of operations. See Note 8 for additional information regarding separate account arrangements with contractual guarantees. See also “Separate account liabilities” below.

LIABILITIES

Future policy benefits primarily consists of the present value of expected future payments to or on behalf of policyholders, where the timing and amount of such payments depend on policyholder mortality or morbidity, less the present value of expected future net premiums (where net premiums are gross premiums multiplied by the Net-To-Gross ("NTG") ratio discussed below). The liability for future policy benefits is accrued over time as premium revenue is recognized. See Note 9 for additional information regarding future policy benefits.

B-17
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
The reserving methodology used for non-participating traditional and limited-payment contracts include the following:

•Cash Flow Assumptions. In measuring the liability for future policy benefits, the net premium valuation methodology is utilized. Under this methodology, a liability for future policy benefits is established using current best estimate insurance assumptions and interest rate assumptions locked-in at contract issuance date. The NTG ratio is calculated as the ratio of the present value of expected policy benefits and non-level claim settlement expenses divided by the present value of expected gross premiums. The NTG ratio is applied to gross premiums, as premium revenue is recognized, to determine net premiums. The liability is then determined as the present value of expected future policy benefits and non-level claim settlement expenses less the present value of expected future net premiums. The result of the net premium valuation methodology is that the liability at any point in time represents an accumulation of the portion of premiums received to date expected to fund future benefits (i.e., net premiums received to date), less any benefits and expenses already paid. The liability does not necessarily reflect the full policyholder obligation the Company expects to pay at the conclusion of the contract since a portion of that obligation would be funded by net premiums received in the future and would be recognized in the liability at that time. For purposes of liability measurement, contracts are grouped into cohorts based primarily on issue year and major product line.

The NTG ratio is generally updated quarterly for actual experience and annually in the second quarter of each year for future cash flow assumption updates during the Company’s annual assumptions review process unless a material change is observed in an interim period that is indicative of a long-term trend, with the exception of claim settlement expense assumptions which the Company has made an entity-wide election to lock-in as of contract issuance. The NTG ratio is subject to a retrospective unlocking method whereby the Company updates its best estimate of cash flows expected over the life of the cohort using actual historical experience and updated future cash flow assumptions. These updated cash flows are used to calculate the revised NTG ratio, which is used to derive an updated liability for future policy benefits as of the beginning of the current reporting period, discounted at the original contract issuance discount rate. The updated liability for future policy benefit amount as of the beginning of the quarter is then compared to the carrying amount of the liability as of that same date, before the updates for actual experience or future cash flow assumptions, to determine the current period change in liability estimate. This current period change in the liability is the liability remeasurement gain or loss that is recorded through current period earnings in “Change in estimates of liability for future policy benefits”. In subsequent periods, the revised NTG ratio is used to measure the liability for future policy benefits, subject to future revisions.

If a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and non-level claim settlement expenses, the NTG ratio is capped at 100%. In these instances, all changes in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately. While the liability for future policy benefits cannot be less than zero (i.e., a contra-liability) at the cohort level and thus the balance is floored at zero (i.e., “flooring”), the NTG ratio may be negative. This would be the case whereby conditions have improved such that the present value of future net premiums plus the existing liability for future policy benefits as of the valuation date exceed the present value of expected future policy benefits and non-level claim settlement expenses. In this case, the negative NTG ratio would be applied going forward to gross premiums received, effectively amortizing the gain into income and reducing the liability over time.

In addition, for limited-payment contracts, the liability for future policy benefits also includes a Deferred Profit Liability ("DPL") representing gross premiums received in excess of net premiums and is generally recognized in revenue in a constant relationship with insurance in force for life contracts or with the amount of expected future benefit payments for annuity contracts. The DPL is subject to a retrospective unlocking adjustment consistent with the liability for future policy benefits discussed above. The DPL cannot be less than zero (i.e., a contra-liability) at the cohort level and thus the balance is floored at zero (i.e., “flooring”).

•Discount Rate Assumption. The locked-in discount rate is generally based on expected investment returns at contract inception for contracts issued prior to January 1, 2021 and the upper medium grade fixed income corporate instrument yield (i.e., global single A) at contract inception for contracts issued on or after January 1, 2021. The discount rate in effect at contract inception is locked-in for the calculation of the NTG ratio and accretion of interest cost on the liability through net income. However, for balance sheet remeasurement purposes, the discount rate is updated using the current single A rate at each reporting period, with the effect on the liability resulting from such update recorded in “Interest rate remeasurement of future policy benefits" in OCI.

B-18
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
The methodology used in constructing the single A discount rate curve for discounting cash flows used to calculate the liability for future policy benefits is intended to be reflective of the characteristics of the applicable insurance liabilities. The single A discount rate curve is developed by reference to upper medium grade (low credit risk) fixed income instrument yields that reflect the duration characteristics of the applicable insurance liabilities. The single A discount curve for the United States is developed using government bond rates plus public corporate A spreads in the observable periods. The definition of upper medium grade is based on Moody’s Investor Service, Inc. ("Moody's") definition which includes the spectrum of A (i.e., A- to A+). Liquidity is considered in defining the observable period and linear extrapolation is performed to the Company's ultimate long-term economic assumptions. Annually, the Company performs a comprehensive review of the economic assumptions, including long-term interest rate assumptions and equity return assumptions, generally utilizing relevant economic outlook information and industry surveys as the primary basis.

The Company’s liability for future policy benefits also includes net liabilities for guaranteed benefits related to certain long-duration life contracts, such as no-lapse guarantee contract features (Additional Insurance Reserves or "AIR" liability), for which a liability is established when associated assessments are recognized (which include investment margin on policyholders' account balances deposited to fixed and indexed funds and all policy charges including charges for administration, mortality, expense, surrender, and other charges). This liability is established using current best estimate assumptions and is based on the ratio of the present value of total expected excess payments (i.e., payments in excess of account value) over the life of the contract divided by the present value of total expected assessments (i.e., benefit ratio). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date. The liability does not necessarily reflect the full policyholder obligation the Company expects to pay at the conclusion of the contract since a portion of that excess payment would be funded by assessments received in the future and would be recognized in the liability at that time. The reserves are subject to adjustments based on annual reviews of assumptions and quarterly adjustments for experience as described below, including market performance. These adjustments reflect the impact on the benefit ratio of using actual historical experience from the issuance date to the balance sheet date plus updated estimates of future experience. The updated benefit ratio is then applied to all prior periods’ assessments to derive an adjustment to the reserve recognized through a benefit or charge to current period earnings. Any adjustments to this liability related to net unrealized gains (losses) on securities classified as available-for-sale are included in AOCI.

For universal life type contracts and participating contracts, the Company performs premium deficiency tests using best estimate assumptions as of the testing date, at a minimum, on an annual basis, and on a quarterly basis for business whose profitability is closely tied to equity market performance. If the liabilities determined based on these best estimate assumptions are greater than the net reserves (i.e., GAAP reserves including unearned revenue reserves ("URR"), net of reinsurance and any DSI asset), the existing net reserves are adjusted by first reducing assets, such as DSI or deferred reinsurance loss, by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency is more than these asset balances for insurance contracts, the net reserves are increased by the excess through a charge to current period earnings included in "Policyholders' benefits". Since investment yields are used as the discount rate, the premium deficiency test is also performed using a discount rate based on the market yield (i.e., assuming what would be the impact if any unrealized gains (losses) were realized as of the testing date). In the event that by using the market yield a deficiency occurs, an adjustment is established for the deficiency and is included in AOCI.

The Company’s liability for future policy benefits also includes a liability for unpaid claims and claim adjustment expenses. The Company does not establish claim liabilities until a loss has been incurred. However, unpaid claims and claim adjustment expenses include estimates of claims that the Company believes have been incurred but have not yet been reported as of the balance sheet date. Expense assumptions included in the liability only include claim related expenses and exclude acquisition costs and non-claim related costs such as costs relating to investments, general administration, policy maintenance, product development, market research, and general overhead.

Policyholders’ account balances represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance, as applicable. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. The unearned revenue liability represents policy charges for services to be provided in future periods. The charges are deferred as incurred and are generally amortized over the expected life of the contract using the same methodology, factors, and assumption used to amortize DAC. See Note 10 for additional information regarding policyholders’ account balances. Policyholders' account balances also include amounts representing the fair value of embedded derivative instruments associated with the index-linked features of certain universal life and annuity products. The changes in the fair value of the embedded derivatives are recorded in net income. For additional information regarding the valuation of these embedded derivatives, see Note 6.

B-19
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Market risk benefit liabilities represents contracts or contract features that provide protection to the contractholder and exposes the Company to other than nominal capital market risk, primarily related to deferred annuities with guaranteed minimum benefits associated with annuities products including guaranteed minimum death benefits (“GMDB”), guaranteed minimum income benefits (“GMIB”), guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”). The benefits are accounted for using a fair value measurement framework. If a contract contains multiple market risk benefits, the benefits are bundled together and accounted for as a single compound market risk benefit. Market risk benefits in an asset position are presented separately from those in a liability position as there is no legal right of offset between contracts. The fair value of market risk benefits is calculated as the present value of expected future benefit payments to contractholders less the present value of expected future rider fees attributable to the market risk benefits. The fair value of market risk benefits is based on assumptions a market participant would use in valuing market risk benefits. For additional information regarding the valuation of market risk benefits, see Note 6. On a quarterly basis, changes in the fair value of market risk benefits are recorded in net income, net of related hedges, in "Change in value of market risk benefits, net of related hedging gains (losses)", except for the portion of the change attributable to changes in the Company’s non-performance risk ("NPR") which is recorded in OCI. See Note 11 for additional information regarding market risk benefits. See "Reinsurance" below for information regarding the reinsurance of MRBs.

Cash collateral for loaned securities represents liabilities to return cash proceeds from security lending transactions. Securities lending transactions are used primarily to earn spread income. As part of securities lending transactions, the Company transfers U.S. and foreign debt and equity securities, as well as U.S. government and government agency securities, and receives cash as collateral. Cash proceeds from securities lending transactions are primarily used to earn spread income, and are typically invested in cash equivalents, short-term investments or fixed maturities. Securities lending transactions are treated as financing arrangements and are recorded at the amount of cash received. The Company obtains collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. The Company monitors the market value of the securities loaned on a daily basis with additional collateral obtained as necessary. Substantially all of the Company’s securities lending transactions are with large brokerage firms and large banks. Income and expenses associated with securities lending transactions used to earn spread income are reported as "Net investment income".

Securities sold under agreements to repurchase represents liabilities associated with securities repurchase agreements that are used primarily to earn spread income. As part of securities repurchase agreements, the Company transfers U.S. government and government agency securities to a third-party, and receives cash as collateral. For securities repurchase agreements, the cash received is typically invested in cash equivalents, short-term investments or fixed maturities. Receivables associated with securities purchased under agreements to resell are generally reflected as cash equivalents. As part of securities resale agreements, the Company invests cash and receives as collateral U.S. government securities or other debt securities.

Securities repurchase and resale agreements that satisfy certain criteria are treated as secured borrowing or secured lending arrangements. These agreements are carried at the amounts at which the securities will be subsequently resold or reacquired, as specified in the respective transactions. For securities purchased under agreements to resell, the Company’s policy is to take possession or control of the securities either directly or through a third-party custodian. These securities are valued daily, and additional securities or cash collateral is received, or returned, when appropriate to protect against credit exposure. Securities to be resold are the same, or substantially the same, as the securities received. The majority of these transactions are with large brokerage firms and large banks. For securities sold under agreements to repurchase, the market value of the securities to be repurchased is monitored, and additional collateral is obtained where appropriate, to protect against credit exposure. The Company obtains collateral in an amount at least equal to 95% of the fair value of the securities sold. Securities to be repurchased are the same, or substantially the same, as those sold. The majority of these transactions are with highly rated money market funds. Income and expenses related to these transactions executed within the insurance companies used to earn spread income are reported as “Net investment income”.

Reinsurance and funds withheld payables represents amounts payable under reinsurance agreements (see “Reinsurance” below). Reinsurance and funds withheld payables may also include derivative instruments for which fair values are determined as described below under "Derivative Financial Instruments".

Other liabilities consists primarily of deferred reinsurance gains ("DRG") (see "Reinsurance" below), accrued expenses, technical overdrafts, payables resulting from purchases of securities that had not yet settled at the balance sheet date. The amortization method for DRG is amortized over the expected life of the reinsured contracts on a constant-level basis.

Separate account liabilities primarily represents the contractholders’ account balances in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. See also “Separate account assets” above.
B-20
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)

Short-term and long-term debt liabilities are primarily carried at an amount equal to unpaid principal balance, net of unamortized discount or premium and debt issuance costs. Original-issue discount or premium and debt-issue costs are recognized as a component of interest expense over the period the debt is expected to be outstanding, using the interest method of amortization. Interest expense is generally presented within “General, administrative and other expenses” in the Company’s Consolidated Statements of Operations. Short-term debt is debt coming due in the next twelve months, including that portion of debt otherwise classified as long-term. The short-term debt caption may exclude short-term debt items for which the Company has the intent and ability to refinance on a long-term basis in the near term. See Note 16 for additional information regarding short-term and long-term debt.

Commitments and contingent liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. Management evaluates whether there are incremental legal or other costs directly associated with the ultimate resolution of the matter that are reasonably estimable and, if so, they are included in the accrual. These accruals are generally reported in “Other liabilities”.

REVENUES, BENEFITS AND EXPENSES

Insurance Revenue and Expense Recognition

Premiums from individual life products, other than universal and variable life contracts, are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium (i.e., the portion of the gross premium required to provide for all expected future policy benefits and non-level claim settlement expenses) is generally deferred and recognized into revenue in a constant relationship to insurance in force. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized as described in "Future policy benefits" above.

Premiums from single premium immediate annuities with life contingencies are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium is generally deferred and recognized into revenue based on expected future benefit payments. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized as described in "Future policy benefits" above.

Certain individual annuity contracts provide the contractholder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount. These benefits are generally accounted for as market risk benefits (see “Market risk benefits” above).

Amounts received from policyholders as payment for universal or variable individual life contracts, deferred fixed or variable annuities and other contracts without life contingencies are reported as deposits to “Policyholders’ account balances” and/or “Separate account liabilities”. Revenues from these contracts are reflected in “Policy charges and fee income” consisting primarily of fees assessed during the period against the policyholders’ account balances for mortality and other benefit charges, policy administration charges and surrender charges. In addition to fees, the Company earns investment income from the investment of deposits in the Company’s general account portfolio. Fees assessed that represent compensation to the Company for services to be provided in future periods and certain other fees are generally deferred and amortized into revenue over the life of the related contracts using the same methodology, factors, and assumption used to amortize DAC as described above. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration, interest credited to policyholders’ account balances and amortization of DAC and DSI.

Policyholders’ account balances also include amounts representing the fair value of embedded derivative instruments associated with the index-linked features of certain universal life and annuity products where changes in the value of the embedded derivatives are recorded through "Realized investment gains (losses), net". For additional information regarding the valuation of these embedded derivatives, see Note 6.

B-21
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Asset administration fees primarily include asset administration fee income received on contractholders’ account balances invested in The Prudential Series Funds, which are a portfolio of mutual fund investments related to the Company’s separate account products. Also, the Company receives fee income calculated on contractholder separate account balances invested in the Advanced Series Trust ("AST") (see Note 16). In addition, the Company receives fees from contractholders’ account balances invested in funds managed by companies other than affiliates of Prudential Insurance. Asset administration fees are recognized as income when earned.

Other income (loss) includes realized and unrealized gains or losses from investments reported as “Fixed maturities, trading, at fair value”, “Equity securities, at fair value”, and “Other invested assets” that are measured at fair value as well as interest income related to affiliated cash collateral. See Note 16 for more information related to affiliated cash collateral. Other income (loss) in 2025 also includes the recognition of previously deferred reinsurance gains.

Realized investment gains (losses), net includes realized gains or losses from sales and maturities of investments, changes to the allowance for credit losses, other impairments, fair value changes on mortgage loans where the fair value option has been elected, and derivative gains or losses. The derivative gains or losses include the impact of maturities, terminations and changes in fair value of the derivative instruments, including embedded derivatives, and other hedging instruments. Realized investment gains (losses) from the sales of securities are generally calculated using the specific identification method.

OTHER ACCOUNTING POLICIES

Derivative Financial Instruments

Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns, and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and NPR used in valuation models. Derivative financial instruments generally used by the Company include swaps, futures, forwards and options and may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties, while others are bilateral contracts between two counterparties. Derivative positions are carried at fair value, generally by obtaining quoted market prices or through the use of valuation models.

Derivatives are used to manage the interest rate and currency characteristics of assets or liabilities. Additionally, derivatives may be used to reduce exposure to risks such as interest rate, credit, foreign currency and equity associated with assets held or expected to be purchased or sold, and liabilities incurred or expected to be incurred. As discussed in detail below and in Note 5, all realized and unrealized changes in fair value of derivatives are recorded in current earnings, with the exception of cash flow hedges. Cash flows from derivatives are reported in the operating, investing or financing activities sections in the Consolidated Statements of Cash Flows based on the nature and purpose of the derivative.

Derivatives are recorded either as assets, within “Other invested assets”, or as liabilities, within “Payables to parent and affiliates”, except for embedded derivatives which are recorded with the associated host contract. The Company nets the fair value of all derivative financial instruments with counterparties for which a master netting arrangement has been executed.

The Company designates derivatives as either (1) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge); or (2) a derivative that does not qualify for hedge accounting.

To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. Effectiveness of the hedge is formally assessed at inception and throughout the life of the hedging relationship.

The Company formally documents at inception all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives designated as cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions.

B-22
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in its fair value are recorded in AOCI until earnings are affected by the variability of cash flows being hedged (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). At that time, the related portion of deferred gains or losses on the derivative instrument is reclassified and reported in the Consolidated Statements of Operations line item associated with the hedged item.

If it is determined that a derivative no longer qualifies as an effective cash flow hedge or management removes the hedge designation, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net”. The component of AOCI related to discontinued cash flow hedges is reclassified to the Consolidated Statements of Operations line associated with the hedged cash flows consistent with the earnings impact of the original hedged cash flows.

When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, or because it is probable that the forecasted transaction will not occur by the end of the specified time period, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net”. Any asset or liability that was recorded pursuant to recognition of the firm commitment is removed from the balance sheet and recognized currently in “Realized investment gains (losses), net”. Gains and losses that were in AOCI pursuant to the hedge of a forecasted transaction are recognized immediately in “Realized investment gains (losses), net”.

If a derivative does not qualify for hedge accounting, all changes in its fair value, including net receipts and payments, are included in “Realized investment gains (losses), net” without considering changes in the fair value of the economically associated assets or liabilities.

The Company is a party to financial instruments that contain derivative instruments that are “embedded” in the financial instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that (1) the embedded instrument possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded instrument qualifies as an embedded derivative that is separated from the host contract, carried at fair value, and changes in its fair value are included in “Realized investment gains (losses), net”. For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company may elect to carry the entire instrument at fair value and report it within "Other invested assets" and "Reinsurance recoverable and deposit receivables", or as liabilities, within “Payables to parent and affiliates” or "Reinsurance and funds withheld payables".

The Company sells variable annuity contracts that include optional living benefit features that may be treated from an accounting perspective as embedded derivatives. The embedded derivatives related to the living benefit features and the related reinsurance agreements are carried at fair value and included in “Future policy benefits" and “Reinsurance recoverables and deposit receivables”. Additionally, changes in the fair value are determined using valuation models as described in Note 6 and are recorded in “Realized investment gains (losses), net".

B-23
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Reinsurance

The Company participates in reinsurance arrangements in various capacities as either the ceding entity or as the reinsurer (i.e., assuming entity). See Note 12 for additional information regarding the Company’s reinsurance arrangements. Reinsurance assumed business is generally accounted for consistent with direct business. Amounts currently recoverable under reinsurance agreements are included in “Reinsurance recoverables and deposit receivables” and amounts payable are included in “Reinsurance and funds withheld payables”. “Reinsurance recoverables and deposit receivables” also includes deposit receivables where the Company has ceded fixed indexed annuities, including from coinsurance with funds withheld arrangements and receivables from modified coinsurance arrangements where the Company is the cedant, and in certain instances are net of the payables under these arrangements which generally reflect the fair value of the invested assets retained by the cedant. “Reinsurance and funds withheld payables” also includes amounts payable to the reinsurer under coinsurance with funds withheld arrangements where the Company is the cedant, and generally reflect the fair value of the invested assets retained by the Company. The receivables and payables associated with each of these coinsurance with funds withheld and modified coinsurance arrangements each contain an embedded derivative that is bifurcated and accounted for at fair value separately from the host contract, with changes in fair value recorded through “Realized investment gains (losses), net”, and are ultimately presented net within “Reinsurance recoverables and deposit receivables”. Revenues and benefits and expenses include amounts assumed under reinsurance agreements and are reflected net of reinsurance ceded.

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. Reinsurance recoverables are reported on the Consolidated Statements of Financial Position net of the CECL allowance. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. The CECL allowance does not apply to reinsurance recoverables with affiliated counterparties under common control. Additions to or releases of the allowance are reported in “Policyholders’ benefits”. Reinsurance premiums, commissions, expense reimbursements, benefits and reserves related to reinsured long-duration contracts under coinsurance arrangements are accounted for over the life of the underlying reinsured contracts using assumptions consistent with those used to account for the underlying contracts. For reinsurance of in force blocks of non-participating traditional and limited-payment contracts, the current value of the direct liability as of inception of the reinsurance agreement is used to calculate the reinsurance recoverable and cost of reinsurance such that there is no immediate other comprehensive income or loss from recognition of the reinsurance recoverable at inception. Consistent with the direct liability, the reinsurance recoverable for non-participating traditional and limited-payment contracts is remeasured each period using current single A rates with the effect on the reinsurance recoverable resulting from such updates recorded in "Interest rate remeasurement of future policy benefits" in OCI. For reinsurance of limited-payment contracts, the Company establishes a cost of reinsurance asset relating to the direct DPL and amortizes this balance through “Premiums” using the same methodology and assumptions used to amortize the direct DPL.

For reinsurance of existing in force blocks of long-duration contracts that transfer significant insurance risk, the difference between the fair value of the net consideration exchanged and the net liabilities ceded related to the underlying reinsured contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. This initial net cost of reinsurance is deferred and amortized into income over the remaining life of the reinsured policies on a basis consistent with the methodologies and assumptions used for amortizing DAC. This initial net cost of reinsurance may result in a deferred reinsurance gain which is recorded in "Other liabilities" and amortized through "Other income (loss)", or a deferred reinsurance loss which is recorded in "Other assets" and amortized through "General, administrative and other expenses".

Consistent with direct contracts, reinsurance agreements may also include features that meet the definition of an MRB and, if so, are accounted for at fair value. The fair value of direct or assumed MRBs reflects the Company's NPR, while the fair value of ceded MRBs reflects the counterparty credit risk of the reinsurer. Changes in the fair value of ceded MRBs, including the impact of changes in counterparty credit risk, are recorded in net income in "Change in value of market risk benefits, net of related hedging gains (losses)".

B-24
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Coinsurance arrangements contrast with the Company’s yearly renewable term ("YRT") arrangements, where only mortality risk is transferred to the reinsurer and premiums are paid to the reinsurer to reinsure that risk. The mortality risk that is reinsured under YRT arrangements represents the difference between the stated death benefits in the underlying reinsured contracts and the corresponding reserves or account value carried by the Company on those same contracts. The premiums paid to the reinsurer are based upon negotiated amounts, not on the actual premiums paid by the underlying contractholders to the Company. As YRT arrangements are usually entered into by the Company with the expectation that the contracts will be in force for the lives of the underlying policies, they are considered to be long-duration reinsurance contracts. The cost of reinsurance for universal life products is generally recognized based on the gross assessments of the underlying direct policies. The cost of reinsurance for term insurance products is generally recognized in proportion to direct premiums over the life of the underlying policies.

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in “Reinsurance and funds withheld payables” and deposits made are included in “Reinsurance recoverables and deposit receivables”. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as “Other income (loss)” or “General, administrative and other expenses”, as appropriate.

RECENT ACCOUNTING PRONOUNCEMENTS

Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates ("ASUs") to the FASB Accounting Standards Codification ("ASC"). The Company considers the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of December 31, 2025, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material.

ASUs adopted during the year ended December 31, 2025

StandardDescriptionEffective date and method of adoptionEffect on the financial statements or other significant matters
ASU 2023-09—Income Taxes (Topic 740) Improvements to Income Tax DisclosuresThis ASU requires entities to provide additional information primarily related to the effective tax rate reconciliation and income taxes paid.January 1, 2025 using the prospective method.Adoption of the ASU did not have an impact on the Company's Consolidated Financial Statements but resulted in expanded disclosures in the Notes to the Consolidated Financial Statements.

ASUs issued but not yet adopted as of December 31, 2025

StandardDescriptionEffective date and method of adoptionEffect on the financial statements or other significant matters
ASU 2024-03—Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement ExpensesThis ASU requires public companies to disclose, in interim and annual reporting periods, additional information about certain expenses in the notes to financial statements.Effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted and applied either prospectively or retrospectively.The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.
B-25
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
3. INVESTMENTS
Fixed Maturity Securities
The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated:
 December 31, 2025
 Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Allowance for Credit LossesFair
Value
 (in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies$1,196,805 $24,151 $103,636 $0 $1,117,320 
Obligations of U.S. states and their political subdivisions460,634 1,245 27,351 0 434,528 
Foreign government securities456,138 7,187 38,590 0 424,735 
U.S. public corporate securities19,566,876 302,845 801,659 75 19,067,987 
U.S. private corporate securities6,790,444 99,408 175,094 12,146 6,702,612 
Foreign public corporate securities5,306,445 100,625 85,439 415 5,321,216 
Foreign private corporate securities7,093,850 331,109 241,209 300 7,183,450 
Asset-backed securities(1)5,051,514 31,060 5,180 1,346 5,076,048 
Commercial mortgage-backed securities1,370,898 17,493 34,081 0 1,354,310 
Residential mortgage-backed securities(2)936,614 9,989 4,638 0 941,965 
Total fixed maturities, available-for-sale$48,230,218 $925,112 $1,516,877 $14,282 $47,624,171 
(1)    Includes credit-tranched securities collateralized by loan obligations, home equity loans, auto loans and education loans.
(2)    Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

 December 31, 2024
 Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Allowance for Credit LossesFair
Value
 (in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies$1,199,628 $8,357 $108,744 $0 $1,099,241 
Obligations of U.S. states and their political subdivisions570,253 1,156 30,343 0 541,066 
Foreign government securities362,154 646 52,466 0 310,334 
U.S. public corporate securities14,134,828 60,917 957,316 1 13,238,428 
U.S. private corporate securities6,030,898 35,828 301,451 11,178 5,754,097 
Foreign public corporate securities3,804,503 21,136 126,767 21 3,698,851 
Foreign private corporate securities5,838,939 43,334 511,426 29,214 5,341,633 
Asset-backed securities(1)3,728,073 31,431 8,841 0 3,750,663 
Commercial mortgage-backed securities944,652 4,567 53,444 0 895,775 
Residential mortgage-backed securities(2)367,005 861 11,794 0 356,072 
Total fixed maturities, available-for-sale$36,980,933 $208,233 $2,162,592 $40,414 $34,986,160 
(1)    Includes credit-tranched securities collateralized by loan obligations, home equity loans, auto loans and education loans.
(2)    Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
B-26
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
The following tables set forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated:
 December 31, 2025
 Less Than Twelve MonthsTwelve Months or MoreTotal
 Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
 (in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies$187,705 $7,191 $386,544 $96,445 $574,249 $103,636 
Obligations of U.S. states and their political subdivisions34,212 853 259,746 26,498 293,958 27,351 
Foreign government securities54,155 214 159,018 38,376 213,173 38,590 
U.S. public corporate securities1,659,501 31,308 4,933,894 770,153 6,593,395 801,461 
U.S. private corporate securities673,009 7,201 2,616,271 167,702 3,289,280 174,903 
Foreign public corporate securities391,306 3,528 759,461 81,911 1,150,767 85,439 
Foreign private corporate securities183,588 2,294 2,000,967 238,882 2,184,555 241,176 
Asset-backed securities158,585 349 40,059 3,301 198,644 3,650 
Commercial mortgage-backed securities54,331 212 400,953 33,869 455,284 34,081 
Residential mortgage-backed securities9,148 8 109,013 4,630 118,161 4,638 
  Total fixed maturities, available-for-sale$3,405,540 $53,158 $11,665,926 $1,461,767 $15,071,466 $1,514,925 

 December 31, 2024
 Less Than Twelve MonthsTwelve Months or MoreTotal
 Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
 (in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies$377,531 $13,829 $238,723 $94,915 $616,254 $108,744 
Obligations of U.S. states and their political subdivisions226,731 5,019 212,060 25,324 438,791 30,343 
Foreign government securities118,168 2,615 171,166 49,851 289,334 52,466 
U.S. public corporate securities4,320,552 105,145 4,677,336 852,171 8,997,888 957,316 
U.S. private corporate securities1,999,008 41,931 2,379,755 259,489 4,378,763 301,420 
Foreign public corporate securities1,088,644 20,465 716,172 106,294 1,804,816 126,759 
Foreign private corporate securities1,977,169 69,399 2,107,705 440,330 4,084,874 509,729 
Asset-backed securities363,744 5,510 140,090 3,331 503,834 8,841 
Commercial mortgage-backed securities101,821 1,356 489,490 52,088 591,311 53,444 
Residential mortgage-backed securities142,961 1,946 123,853 9,848 266,814 11,794 
  Total fixed maturities, available-for-sale$10,716,329 $267,215 $11,256,350 $1,893,641 $21,972,679 $2,160,856 

B-27
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
As of December 31, 2025 and 2024, the gross unrealized losses on fixed maturity, available-for-sale securities without an allowance of $1,469 million and $2,059 million, respectively, related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $46 million and $102 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of December 31, 2025, the $1,462 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the finance, consumer non-cyclical and utility sectors. As of December 31, 2024, the $1,894 million of gross unrealized losses of twelve months or more were concentrated in the Company's corporate securities within the finance, consumer non-cyclical and utility sectors.
In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for credit losses related to these fixed maturity securities was not warranted at December 31, 2025. This conclusion was based on a detailed analysis of the underlying credit and cash flows for each security. Gross unrealized losses are primarily attributable to increases in interest rates, general credit spread widening and foreign currency exchange rate movements. As of December 31, 2025, the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis.

The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated:
 December 31, 2025
 Amortized CostFair Value
 (in thousands)
Fixed maturities, available-for-sale:
Due in one year or less$1,745,409 $1,738,607 
Due after one year through five years15,738,281 15,930,893 
Due after five years through ten years12,444,358 12,660,246 
Due after ten years10,943,144 9,922,102 
Asset-backed securities5,051,514 5,076,048 
Commercial mortgage-backed securities1,370,898 1,354,310 
Residential mortgage-backed securities936,614 941,965 
Total fixed maturities, available-for-sale$48,230,218 $47,624,171 
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they do not have a single maturity date.
The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on write-downs and the allowance for credit losses of fixed maturities, for the periods indicated:
Years Ended December 31
202520242023
  (in thousands) 
Fixed maturities, available-for-sale:
Proceeds from sales(1)$2,589,307 $2,097,519 $460,596 
Proceeds from maturities/prepayments3,663,766 2,300,919 1,218,844 
Gross investment gains from sales and maturities27,112 23,978 11,482 
Gross investment losses from sales and maturities(58,814)(143,432)(43,078)
Write-downs recognized in earnings(2)(76,892)(9,534)(2,358)
(Addition to) release of allowance for credit losses26,180 (38,406)2,761 
(1)Excludes activity from non-cash related proceeds due to the timing of trade settlements of $106.2 million, $(158.4) million and $57.4 million for the years ended December 31, 2025, 2024, and 2023, respectively.
(2)Amounts represent write-downs of credit adverse securities and securities actively marketed for sale.


B-28
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
The following tables set forth the balance of and changes in the allowance for credit losses for fixed maturity securities, as of and for the periods indicated:
Year Ended December 31, 2025
U.S. Treasury Securities and Obligations of U.S. StatesForeign Government SecuritiesU.S. and Foreign Corporate SecuritiesAsset-Backed SecuritiesCommercial Mortgage-Backed SecuritiesResidential Mortgage-Backed SecuritiesTotal
(in thousands)
Fixed maturities, available-for-sale:
Balance, beginning of period$0 $0 $40,414 $0 $0 $0 $40,414 
Additions to allowance for credit losses not previously recorded0 0 26,779 3,500 0 0 30,279 
Reductions for securities sold during the period0 0 (2,127)(925)0 0 (3,052)
Additions (reductions) on securities with previous allowance0 0 4,072 (1,229)0 0 2,843 
Write-downs charged against the allowance0 0 (56,202)0 0 0 (56,202)
Balance, end of period$0 $0 $12,936 $1,346 $0 $0 $14,282 

Year Ended December 31, 2024
U.S. Treasury Securities and Obligations of U.S. StatesForeign Government SecuritiesU.S. and Foreign Corporate SecuritiesAsset-Backed SecuritiesCommercial Mortgage-Backed SecuritiesResidential Mortgage-Backed SecuritiesTotal
(in thousands)
Fixed maturities, available-for-sale:
Balance, beginning of period$0 $0 $2,000 $1 $0 $7 $2,008 
Additions to allowance for credit losses not previously recorded0 0 39,600 0 0 5 39,605 
Reductions for securities sold during the period0 0 (2,002)0 0 0 (2,002)
Additions (reductions) on securities with previous allowance0 0 337 (1)0 (12)324 
Assets transferred (to) from parent and affiliates0 0 479 0 0 0 479 
Balance, end of period$0 $0 $40,414 $0 $0 $0 $40,414 

See Note 2 for additional information about the Company's methodology for developing its allowance and expected losses.

For the year ended December 31, 2025, the net decrease in the allowance for credit losses on available-for-sale securities was primarily related to write-downs of distressed securities, partially offset by net additions in the communications and transportation sectors within corporate securities due to adverse projected cash flows.

For the year ended December 31, 2024, the net increase in the allowance for credit losses on available-for-sale securities was primarily related to net additions within the consumer cyclical, consumer non-cyclical and energy sectors within corporate securities due to adverse projected cash flows.

The Company did not have any fixed maturity securities purchased with credit deterioration as of both December 31, 2025 and 2024.
B-29
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Fixed Maturities, Trading
The net change in unrealized gains (losses) from fixed maturities, trading still held at period end, recorded within “Other income (loss),” was $231.7 million, $(182.9) million and $65.6 million during the years ended December 31, 2025, 2024 and 2023, respectively.
Equity Securities
The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income (loss)," was $(86.3) million, $(34.2) million and $25.8 million during the years ended December 31, 2025, 2024 and 2023, respectively.
Commercial Mortgage and Other Loans
The following table sets forth the composition of “Commercial mortgage and other loans”, as of the dates indicated:
 December 31, 2025December 31, 2024
 Amount% of
Total		Amount% of
Total
($ in thousands)
Commercial mortgage and agricultural property loans by property type:
Apartments/Multi-Family$2,612,457 27.4 %$1,949,926 25.0 %
Health Care Senior Living(1)119,507 1.3 134,195 1.7 
Hospitality108,227 1.0 97,603 1.3 
Industrial3,448,599 36.2 2,906,413 37.3 
Office525,136 5.5 556,586 7.1 
Retail865,298 9.1 693,949 9.0 
Self-Storage(1)665,544 7.0 543,701 7.0 
Other(1)119,202 1.3 72,645 0.9 
Total commercial mortgage loans8,463,970 88.8 6,955,018 89.3 
Agricultural property loans1,068,014 11.2 830,041 10.7 
Total commercial mortgage and agricultural property loans9,531,984 100.0 %7,785,059 100.0 %
Allowance for credit losses(45,604)(37,715)
Total net commercial mortgage and agricultural property loans9,486,380 7,747,344 
Other loans:
Residential mortgage loans
589,937 0 
Other collateralized loans11,936 11,979 
Total other loans 601,873 11,979 
Allowance for credit losses
(5,586)0 
Total net other loans596,287 11,979 
Total net commercial mortgage and other loans$10,082,667 $7,759,323 
(1) Prior period amounts have been updated to conform to current period presentation.

As of December 31, 2025, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States with the largest concentrations in California (23%), Florida (8%) and Texas (8%) and included loans secured by properties in Europe (8%), Australia (1%) and Mexico (1%).
As of December 31, 2025, the residential mortgage loans were secured by properties geographically dispersed throughout the United States with the largest concentrations in Florida (13%), California (10%) and New York (9%).


B-30
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
The following table sets forth the balance of and changes in the allowance for credit losses for commercial mortgage and other loans, as of and for the periods ended:
Commercial Mortgage LoansAgricultural Property LoansResidential
Mortgage Loans		Total
 (in thousands)
Balance at December 31, 2022$19,665 $598 $0 $20,263 
Addition to (release of) allowance for expected losses17,093 333 0 17,426 
Balance at December 31, 202336,758 931 0 37,689 
Addition to (release of) allowance for expected losses5,613 3,780 0 9,393 
Write-downs charged against allowance(9,367)0 0 (9,367)
Balance at December 31, 202433,004 4,711 0 37,715 
Addition to (release of) allowance for expected losses12,327 2,573 5,586 20,486 
Write-downs charged against allowance(1,915)(5,096)0 (7,011)
Balance at December 31, 2025$43,416 $2,188 $5,586 $51,190 

See Note 2 for additional information about the Company's methodology for developing the allowance and expected losses.
For the year ended December 31, 2025, the net increase to the allowance for credit losses on commercial mortgage and other loans was primarily related to increases in loan specific allowances in commercial mortgage loans within the retail sector and in agricultural property loans along with the establishment of general reserves for residential mortgage loans, partially offset by write-downs against loan-specific reserves within agricultural property loans and the retail sector of commercial mortgage loans.
For the year ended December 31, 2024, net additions to the allowance for credit losses on commercial mortgage and other loans were primarily related to increases in loan-specific allowances in commercial mortgage loans within the retail and office sectors and in agricultural property loans.

The following table sets forth the write-downs of commercial mortgage and other loans by origination year for the year ended December 31, 2025:
December 31, 2025
Amortized Cost by Origination Year
20252024202320222021PriorTotal
(in thousands)
Commercial mortgage loans
$0 $0 $0 $0 $0 $1,915 $1,915 
Agricultural property loans
0 0 3,461 1,635 0 0 5,096 
Total$0 $0 $3,461 $1,635 $0 $1,915 $7,011 

For the year ended December 31, 2024, there were $9.4 million of write-downs charged against the allowance related to a loan originated in 2016.
The following tables set forth key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the dates indicated:
B-31
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
December 31, 2025
Amortized Cost by Origination Year
20252024202320222021PriorRevolving LoansTotal
(in thousands)
Commercial mortgage loans
Loan-to-Value Ratio:
0%-59.99%$583,935 $386,956 $339,226 $432,721 $516,692 $1,248,164 $12,429 $3,520,123 
60%-69.99%1,119,839 1,128,626 453,007 144,375 318,216 192,472 0 3,356,535 
70%-79.99%112,150 223,390 344,004 68,791 266,035 118,452 0 1,132,822 
80% or greater0 1,196 0 76,282 160,304 216,708 0 454,490 
Total$1,815,924 $1,740,168 $1,136,237 $722,169 $1,261,247 $1,775,796 $12,429 $8,463,970 
Debt Service Coverage Ratio:
Greater than 1.2x$1,709,249 $1,718,881 $944,699 $704,034 $1,261,247 $1,656,396 $10,839 $8,005,345 
1.0 - 1.2x94,819 12,972 191,538 0 0 47,395 1,590 348,314 
Less than 1.0x11,856 8,315 0 18,135 0 72,005 0 110,311 
Total$1,815,924 $1,740,168 $1,136,237 $722,169 $1,261,247 $1,775,796 $12,429 $8,463,970 
Agricultural property loans
Loan-to-Value Ratio:
0%-59.99%$226,434 $242,422 $74,777 $198,123 $126,275 $61,392 $35,759 $965,182 
60%-69.99%13,068 29,560 19,282 0 4,950 0 17,083 83,943 
70%-79.99%0 0 0 0 0 0 0 0 
80% or greater0 0 0 6,061 0 0 12,828 18,889 
Total$239,502 $271,982 $94,059 $204,184 $131,225 $61,392 $65,670 $1,068,014 
Debt Service Coverage Ratio:
Greater than 1.2x$239,502 $260,566 $85,966 $158,503 $124,612 $47,718 $52,842 $969,709 
1.0 - 1.2x0 10,473 2,358 4,755 0 10,298 0 27,884 
Less than 1.0x0 943 5,735 40,926 6,613 3,376 12,828 70,421 
Total$239,502 $271,982 $94,059 $204,184 $131,225 $61,392 $65,670 $1,068,014 

B-32
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
December 31, 2024
Amortized Cost by Origination Year
20242023202220212020PriorRevolving LoansTotal
(in thousands)
Commercial mortgage loans
Loan-to-Value Ratio:
0%-59.99%$452,940 $232,276 $306,684 $482,596 $134,403 $1,138,394 $6,479 $2,753,772 
60%-69.99%972,161 541,849 273,258 360,457 110,515 303,107 0 2,561,347 
70%-79.99%362,701 365,111 134,208 330,355 6,774 77,399 0 1,276,548 
80% or greater1,196 0 56,204 84,761 3,870 217,320 0 363,351 
Total$1,788,998 $1,139,236 $770,354 $1,258,169 $255,562 $1,736,220 $6,479 $6,955,018 
Debt Service Coverage Ratio:
Greater than 1.2x$1,728,895 $962,290 $755,350 $1,256,699 $255,562 $1,616,904 $0 $6,575,700 
1.0 - 1.2x60,103 176,946 15,004 0 0 59,871 6,479 318,403 
Less than 1.0x0 0 0 1,470 0 59,445 0 60,915 
Total$1,788,998 $1,139,236 $770,354 $1,258,169 $255,562 $1,736,220 $6,479 $6,955,018 
Agricultural property loans
Loan-to-Value Ratio:
0%-59.99%$241,715 $89,569 $163,820 $126,368 $23,488 $38,478 $18,834 $702,272 
60%-69.99%29,560 19,396 49,210 0 0 0 0 98,166 
70%-79.99%0 0 0 5,213 0 0 0 5,213 
80% or greater0 0 7,295 0 1,657 0 15,438 24,390 
Total$271,275 $108,965 $220,325 $131,581 $25,145 $38,478 $34,272 $830,041 
Debt Service Coverage Ratio:
Greater than 1.2x$259,647 $95,087 $211,030 $129,865 $23,488 $38,478 $18,834 $776,429 
1.0 - 1.2x11,628 13,878 9,295 0 0 0 15,438 50,239 
Less than 1.0x0 0 0 1,716 1,657 0 0 3,373 
Total$271,275 $108,965 $220,325 $131,581 $25,145 $38,478 $34,272 $830,041 
Residential mortgage loans primarily include fixed-rate, amortizing mortgage loans on rental properties owned by borrowers with Fair Isaac Corporation ("FICO") scores typically considered prime or above. The primary credit quality indicator is whether a loan is performing or nonperforming. The Company defines nonperforming residential mortgage loans as those that are 90 days or more past due and/or in nonaccrual status.
December 31, 2025
Amortized Cost by Origination Year
20252024202320222021PriorTotal
(in thousands)
Residential mortgage loans
Performance indicators:
Performing
$571,247 $18,549 $141 $0 $0 $0 $589,937 
Nonperforming
0 0 0 0 0 0 0 
Total$571,247 $18,549 $141 $0 $0 $0 $589,937 

B-33
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
See Note 2 for additional information about the Company’s commercial mortgage and other loans credit quality monitoring process.
The Company may grant loan modifications in its commercial mortgage and other loan portfolios to borrowers experiencing financial difficulties. These loan modifications may be in the form of principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or some combination thereof. The amount, timing and extent of modifications granted and subsequent performance are considered in determining any allowance for credit losses.
The following tables set forth the amortized cost basis of loan modifications made to borrowers experiencing financial difficulties during the periods indicated:
Year Ended December 31, 2025
Term
Extension		Other Than Insignificant Delay in Payment% of
Amortized Cost
($ in thousands)
Commercial mortgage loans$0 $0 0.0 %
Year Ended December 31, 2024
Term
Extension		Other Than Insignificant Delay in Payment% of
Amortized Cost
($ in thousands)
Commercial mortgage loans$14,546 $4,570 0.2 %

During the year ended December 31, 2024, the modifications added less than one year to the weighted average life in the commercial mortgage loan portfolio.

The Company did not have any commitments to lend additional funds to borrowers experiencing financial difficulties on modified loans as of both December 31, 2025 and 2024.

The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated:
December 31, 2025
Current30-59 Days Past Due60-89 Days Past Due90 Days or More Past Due(1)Total LoansNon-Accrual Status(2)
(in thousands)
Commercial mortgage loans$8,462,579 $0 $0 $1,391 $8,463,970 $2,586 
Agricultural property loans1,033,714 0 0 34,300 1,068,014 38,649 
Residential mortgage loans588,368 1,569 0 0 589,937 0
Other collateralized loans11,936 0 0 0 11,936 0
Total $10,096,597 $1,569 $0 $35,691 $10,133,857 $41,235 
(1)As of December 31, 2025, there were no loans in this category accruing interest.
(2)For additional information regarding the Company’s policies for accruing interest on loans, see Note 2.

B-34
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
December 31, 2024
Current30-59 Days Past Due60-89 Days Past Due90 Days or More Past Due(1)Total LoansNon-Accrual Status(2)
(in thousands)
Commercial mortgage loans$6,951,093 $0 $0 $3,925 $6,955,018 $5,120 
Agricultural property loans804,804 0 2,505 22,732 830,041 24,765 
Residential mortgage loans0 0 0 0 0 0 
Other collateralized loans11,979 0 0 0 11,979 0 
Total $7,767,876 $0 $2,505 $26,657 $7,797,038 $29,885 
(1)As of December 31, 2024, there were no loans in this category accruing interest.
(2)For additional information regarding the Company’s policies for accruing interest on loans, see Note 2.

Loans on non-accrual status recognized interest of $0.5 million and $0.7 million for the years ended December 31, 2025 and 2024, respectively. Loans on non-accrual status that did not have a related allowance for credit losses were $21.2 million and $2.0 million as of December 31, 2025 and 2024, respectively.
For the years ended December 31, 2025 and 2024, there were $589.9 million and $12.6 million, respectively, of commercial mortgage and other loans acquired, other than those through direct origination. For the year ended December 31, 2025, there were $100.0 million commercial mortgage and other loans sold. For the year ended December 31, 2024, there were no commercial mortgage and other loans sold.
The Company did not have any commercial mortgage and other loans purchased with credit deterioration as of both December 31, 2025 and 2024.
Other Invested Assets
The following table sets forth the composition of “Other invested assets”, as of the dates indicated:
December 31,
20252024
 (in thousands)
LPs/LLCs:
Equity method:
Private equity$374,958 $388,822 
Hedge funds1,671,779 1,024,534 
Real estate-related68,373 75,730 
Subtotal equity method2,115,110 1,489,086 
Fair value:
Private equity19,523 28,094 
Hedge funds52,591 14 
Real estate-related15,233 16,016 
Subtotal fair value87,347 44,124 
Total LPs/LLCs2,202,457 1,533,210 
Derivative instruments46,483 24,499 
Other(1)48,595 24,385 
Total other invested assets$2,297,535 $1,582,094 
(1)Includes tax advantaged investments and investments in separate account funds.

B-35
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Equity Method Investments

The following tables set forth summarized combined financial information for significant LP/LLC interests accounted for under the equity method, including the Company’s investments in operating joint ventures. Changes between periods in the tables below reflect changes in the activities within the operating joint ventures and LPs/LLCs, as well as changes in the Company’s level of investment in such entities:
 December 31,
 20252024
 (in thousands)
STATEMENTS OF FINANCIAL POSITION
Total assets(1)$64,973,949 $66,477,439 
Total liabilities(2)$10,051,385 $1,894,242 
Partners’ capital54,922,564 64,583,197 
Total liabilities and partners’ capital$64,973,949 $66,477,439 
Equity in LP/LLC interests included above$1,858,303 $1,338,056 
Equity in LP/LLC interests not included above325,315 230,687 
Carrying value$2,183,618 $1,568,743 
(1)Amount represents gross assets of each fund where the Company has a significant investment. These assets consist primarily of investments in real estate, investments in securities and other miscellaneous assets.
(2)Amount represents gross liabilities of each fund where the Company has a significant investment. These liabilities consist primarily of third-party borrowed funds and other miscellaneous liabilities.
 Years Ended December 31,
 202520242023
 (in thousands)
STATEMENTS OF OPERATIONS
Total revenues(1)$4,783,207 $1,678,772 $3,465,807 
Total expenses(2)(924,378)(473,445)(979,287)
Net earnings (losses)$3,858,829 $1,205,327 $2,486,520 
Equity in net earnings (losses) of LP/LLC interests included above$137,546 $57,119 $17,795 
Equity in net earnings (losses) of LP/LLC interests not included above31,862 18,193 11,792 
Total equity in net earnings (losses)$169,408 $75,312 $29,587 
(1)Amount represents gross revenue of each fund where the Company has a significant investment. This revenue consists of income from investments in real estate, investments in securities and other income.
(2)Amount represents gross expenses of each fund where the Company has a significant investment. These expenses consist primarily of interest expense, investment management fees, salary expenses and other expenses.


Accrued Investment Income

The following table sets forth the composition of “Accrued investment income,” as of the dates indicated:
December 31,
20252024
(in thousands)
Fixed maturities$531,247 $396,173 
Equity securities218 436 
Commercial mortgage and other loans46,092 29,437 
Policy loans31,288 30,820 
Short-term investments and cash equivalents9,188 9,528 
Total accrued investment income$618,033 $466,394 

There were no write-downs on accrued investment income for the years ended December 31, 2025 and 2024.
B-36
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Net Investment Income
The following table sets forth “Net investment income” by investment type, for the periods indicated: 
Years Ended December 31,
202520242023
 (in thousands)
Fixed maturities, available-for-sale$2,182,678 $1,622,898 $1,139,581 
Fixed maturities, trading211,123 156,407 96,128 
Equity securities63,218 30,698 14,772 
Commercial mortgage and other loans444,449 328,853 231,994 
Policy loans66,917 65,825 48,118 
Other invested assets249,245 140,376 98,369 
Short-term investments and cash equivalents122,337 182,094 123,857 
Gross investment income3,339,967 2,527,151 1,752,819 
Less: investment expenses(129,445)(105,134)(77,297)
Net investment income$3,210,522 $2,422,017 $1,675,522 

The carrying value of non-income producing assets included $19.1 million in fixed maturities, available-for-sale and $0.2 million in fixed maturities, trading as of December 31, 2025. Non-income producing assets represent investments that had not produced income for the twelve months preceding December 31, 2025.
Realized Investment Gains (Losses), Net
The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated:
Years Ended December 31,
202520242023
(in thousands)
Fixed maturities(1)$(82,414)$(167,394)$(31,193)
Commercial mortgage and other loans(21,697)(11,113)(17,854)
LPs/LLCs(2)(6)576 (272)
Derivatives(1,129,307)713,403 (1,136,331)
Short-term investments and cash equivalents142 974 2,033 
Ceded income on modified coinsurance assets(2)(3)(191,080)(85,069)37,120 
Other(2)(6,063)40 (602)
Realized investment gains (losses), net$(1,430,425)$451,417 $(1,147,099)
(1)Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading.
(2)Prior period amounts have been updated to conform to current period presentation.
(3)Includes changes in the value of reinsurance and funds withheld payables, primarily reflecting the impact of net investment income on withheld assets that are ceded to certain reinsurance counterparties.

B-37
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Net Unrealized Gains (Losses) on Investments within AOCI
The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: 
December 31,
202520242023
(in thousands)
Fixed maturity securities, available-for-sale with an allowance$(1,352)$893 $1,987 
Fixed maturity securities, available-for-sale without an allowance(590,413)(1,955,252)(1,406,265)
Derivatives designated as cash flow hedges(1)(132,690)110,565 11,934 
Affiliated notes(2,094)(3,276)(8,760)
Other investments(2)12,147 785 (1,089)
Net unrealized gains (losses) on investments$(714,402)$(1,846,285)$(1,402,193)
(1)For additional information regarding cash flow hedges, see Note 5.
(2)Includes net unrealized gains (losses) on certain joint ventures that are strategic in nature and are included in "Other assets".

Repurchase Agreements and Securities Lending
In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of both December 31, 2025 and 2024, the Company had no repurchase agreements.
The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated:
December 31, 2025December 31, 2024
Remaining Contractual Maturities of the AgreementsRemaining Contractual Maturities of the Agreements
Overnight & ContinuousUp to 30 DaysTotalOvernight & ContinuousUp to 30 DaysTotal
(in thousands)
Obligations of U.S. states and their political subdivisions$1,123 $0 $1,123 $1,139 $0 $1,139 
U.S. public corporate securities3,227 0 3,227 6,949 0 6,949 
U.S. private corporate securities0 0 0 18 0 18 
Foreign public corporate securities18,272 0 18,272 10,100 0 10,100 
Equity securities0 0 0 103,166 0 103,166 
Total cash collateral for loaned securities(1)$22,622 $0 $22,622 $121,372 $0 $121,372 
(1)The Company did not have any agreements with remaining contractual maturities greater than thirty days, as of the dates indicated.

B-38
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Securities Pledged, Restricted Assets and Special Deposits
The Company pledges as collateral investment securities it owns through certain transactions, including securities lending, securities sold under agreements to repurchase, collateralized borrowings and postings of collateral with derivative counterparties. The following table sets forth the carrying value of investments pledged to third-parties and the carrying amount of the associated liabilities supported by the pledged collateral, as of the dates indicated:
December 31,
20252024
 (in thousands)
Securities pledged:
Fixed maturities, available-for-sale$5,661,731 $3,856,216 
Fixed maturities, trading0 17 
Equity securities0 100,601 
Total securities pledged$5,661,731 $3,956,834 
Liabilities supported by the pledged collateral:
Cash collateral for loaned securities$22,622 $121,372 
Other liabilities2,482,215 3,622,596 
Total liabilities supported by the pledged collateral$2,504,837 $3,743,968 
In the normal course of its business activities, the Company accepts collateral that can be sold or repledged. The primary sources of this collateral are securities purchased under agreements to resell. As of both December 31, 2025 and 2024, there was $0.0 million of collateral that could be sold or repledged.
As of December 31, 2025 and 2024, there were $0.0 million and $3.6 million, respectively, on deposit with governmental authorities or trustees as required by certain insurance laws.

B-39
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
4. VARIABLE INTEREST ENTITIES

In the normal course of its activities, the Company enters into relationships with various special-purpose entities and other entities that are deemed to be VIEs. A VIE is an entity that either (1) has equity investors that lack certain essential characteristics of a controlling financial interest (including the ability to control activities of the entity, the obligation to absorb the entity’s expected losses and the right to receive the entity’s expected residual returns) or (2) lacks sufficient equity to finance its own activities without financial support provided by other entities, which in turn would be expected to absorb at least some of the expected losses of the VIE.

The Company is the primary beneficiary if the Company has (1) the power to direct the activities of the VIE that most significantly impact the economic performance of the entity and (2) the obligation to absorb losses of the entity that could be potentially significant to the VIE or the right to receive benefits from the entity that could be potentially significant. If the Company determines that it is the VIE’s primary beneficiary, it consolidates the VIE.

Consolidated Variable Interest Entities

The Company is the primary beneficiary of certain VIEs in which the Company has invested, as part of its investment activities, but for which it is not the investment manager. The Company’s involvement in the structuring of these investments combined with its economic interest indicates that the Company is the primary beneficiary. The Company has not provided material financial support or other support that was not contractually required to these VIEs.

The table below reflects the carrying amount and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported:

December 31, 2025December 31, 2024
(in thousands)
Fixed maturities, available-for-sale, at fair value$39,593 $0 
Other invested assets52,590 0 
Accrued investment income129 0 
Cash and cash equivalents157 0 
Income tax assets14 0 
Other assets84 0 
Total assets of consolidated variable interest entities$92,567 $0 
Payables to parent and affiliates$739 $0 
Other liabilities3,945 0 
Total liabilities of consolidated variable interest entities$4,684 $0 

Unconsolidated Variable Interest Entities

The Company has determined that it is not the primary beneficiary of certain VIEs. These VIEs consist of investment funds for which the Company has determined that it is not the primary beneficiary as it does not have both (1) the power to direct the activities of the VIE that most significantly impact the economic performance of the entity and (2) the obligation to absorb losses of the entity that could be potentially significant to the VIE or the right to receive benefits from the entity that could be potentially significant. The Company’s maximum exposure to loss resulting from its relationship with unconsolidated VIEs is limited to its investment in the VIEs, which was $80 million and $0 million as of December 31, 2025 and 2024, respectively. These investments are reflected in “Other invested assets”. There are no liabilities associated with these unconsolidated VIEs on the Company’s Consolidated Statements of Financial Position.
B-40
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
5. DERIVATIVES AND HEDGING
Types of Derivative Instruments and Derivative Strategies
Interest Rate Contracts
Interest rate swaps, interest rate total return swaps, options, and futures are used by the Company to reduce risks from changes in interest rates, manage interest rate exposures arising from mismatches between assets and liabilities and to hedge against changes in the values it owns or anticipates acquiring or selling.

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 Contracts
Equity options, equity total return swaps, and futures are used by the Company to manage its exposure to the equity markets which impacts the value of assets and liabilities it owns or anticipates acquiring or selling.
Equity index options are contracts which will settle in cash based on differentials in the underlying indices at the time of exercise and the strike price. The Company uses combinations of purchases and sales of equity index options to hedge the effects of adverse changes in equity indices within a predetermined range.
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 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.
Foreign Exchange Contracts
Currency derivatives, including currency swaps and forwards, are used by the Company to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell.
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.
B-41
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Credit Contracts
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.
In addition to selling credit protection, the Company purchases credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio.
Embedded Derivatives
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 12 for additional information on the reinsurance agreements.
These embedded derivatives and reinsurance agreements, also accounted for as derivatives, are carried at fair value and marked to market through “Realized investment gains (losses), net” based on the change in value of the underlying contractual guarantees, which are determined using valuation models, as described in Note 6.
Synthetic Guarantees
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.


















B-42
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Primary Risks Managed by Derivatives
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, 2025December 31, 2024
Primary Underlying Risk/Instrument TypeFair ValueFair Value
Gross
Notional		AssetsLiabilitiesGross
Notional		AssetsLiabilities
 (in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Currency/Interest Rate
Interest Rate Swaps$2,664 $0 $(103)$2,851 $0 $(209)
Foreign Currency Swaps4,731,873 84,065 (215,779)3,308,842 202,606 (27,523)
Total Derivatives Designated as Hedge Accounting Instruments$4,734,537 $84,065 $(215,882)$3,311,693 $202,606 $(27,732)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate
Interest Rate Swaps$191,366,960 $8,656,717 $(20,427,373)$174,170,160 $9,029,399 $(20,888,553)
Interest Rate Futures2,076,700 2,227 (1,587)1,518,400 1,967 (1,443)
Interest Rate Options27,025,000 133,690 (1,331,534)29,135,000 279,414 (1,406,265)
Interest Rate Forwards0 0 0 0 0 0 
Interest Rate Total Return Swaps
843,143 215,517 (219,681)223,721 1,472 (2,121)
Foreign Currency
Foreign Currency Forwards2,388,287 1,918 (12,705)1,146,861 30,078 (181)
Credit
Credit Default Swaps874,950 9,667 0 911,850 9,606 0 
Currency/Interest Rate
Foreign Currency Swaps2,138,269 51,698 (55,778)2,285,052 164,152 (9,277)
Equity
Equity Total Return Swaps
31,287,562 2,697,977 (2,473,729)23,025,217 1,160,080 (1,182,913)
Equity Options199,267,054 9,954,651 (8,727,823)117,107,059 4,453,762 (3,717,637)
Equity Futures836,190 2,208 (4,586)1,802,205 15 (6,060)
Synthetic GICs4,186,284 0 0 3,958,847 143 (31)
Total Derivatives Not Qualifying as Hedge Accounting Instruments$462,290,399 $21,726,270 $(33,254,796)$355,284,372 $15,130,088 $(27,214,481)
Total Derivatives(1)(2)$467,024,936 $21,810,335 $(33,470,678)$358,596,065 $15,332,694 $(27,242,213)
(1)Excludes embedded derivatives which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $17,801 million and $11,968 million as of December 31, 2025 and 2024, respectively, primarily included in "Policyholders' account balances".
(2)Recorded in “Other invested assets”, “Payables to parent and affiliates” and "Other liabilities" on the Consolidated Statements of Financial Position.

B-43
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Offsetting Assets and Liabilities
The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables 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, 2025
 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$21,810,330 $(21,763,852)$46,478 $0 $46,478 
Total Assets$21,810,330 $(21,763,852)$46,478 $0 $46,478 
Offsetting of Financial Liabilities:
Derivatives$33,470,678 $(30,988,463)$2,482,215 $(2,482,215)$0 
Total Liabilities$33,470,678 $(30,988,463)$2,482,215 $(2,482,215)$0 

 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 
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 
(1)Amounts exclude the excess of collateral received/pledged from/to the counterparty.

For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below and Note 16. 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.
B-44
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Cash Flow Hedges
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.
The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship.
  
Year Ended December 31, 2025
 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 $(63)$0 $90 
Currency/Interest Rate3,904 0 56,229 (80,651)(243,345)
Total cash flow hedges3,907 0 56,166 (80,651)(243,255)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate50,408 (791,731)0 0 0 
Currency(149,674)0 0 0 0 
Currency/Interest Rate(120,149)0 0 (1,037)0 
Credit14,684 0 0 0 0 
Equity3,505,905 (744,447)0 0 0 
Embedded Derivatives(4,434,388)0 0 0 0 
Total Derivatives Not Qualifying as Hedge Accounting Instruments(1,133,214)(1,536,178)0 (1,037)0 
Total$(1,129,307)$(1,536,178)$56,166 $(81,688)$(243,255)

B-45
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
  
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 Rate2,256 0 48,523 34,827 98,585 
Total cash flow hedges2,259 0 48,405 34,827 98,631 
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate35,600 (2,094,268)0 0 0 
Currency54,543 0 0 0 0 
Currency/Interest Rate77,166 0 0 523 0 
Credit16,856 0 0 0 0 
Equity3,207,538 (761,850)0 0 0 
Embedded Derivatives(2,680,559)0 0 0 0 
Total Derivatives Not Qualifying as Hedge Accounting Instruments711,144 (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 $72 
Currency/Interest Rate(636)0 43,934 (26,206)(126,765)
Total cash flow hedges(634)0 43,816 (26,206)(126,693)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate25,329 (1,555,807)0 0 0 
Currency(16,012)0 0 0 0 
Currency/Interest Rate(102,238)0 0 (257)0 
Credit14,350 0 0 0 0 
Equity1,744,218 (821,996)0 0 0 
Embedded Derivatives(2,798,232)0 0 0 0 
Total Derivatives Not Qualifying as Hedge Accounting Instruments(1,132,585)(2,377,803)0 (257)0 
Total$(1,133,219)$(2,377,803)$43,816 $(26,463)$(126,693)


B-46
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Presented below is a rollforward of current period cash flow hedges in AOCI before taxes:
(in thousands)
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 Rate116 
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 Rate184,191 
Total amount recorded in AOCI184,122 
Amount reclassified from AOCI to income
Interest Rate115 
Currency/Interest Rate(85,606)
Total amount reclassified from AOCI to income(85,491)
Balance, December 31, 2024$110,565 
Amount recorded in AOCI
Interest Rate30 
Currency/Interest Rate(263,863)
Total amount recorded in AOCI(263,833)
Amount reclassified from AOCI to income
Interest Rate60 
Currency/Interest Rate20,518 
Total amount reclassified from AOCI to income20,578 
Balance, December 31, 2025$(132,690)

B-47
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
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, 2025 values, it is estimated that a pre-tax gain of $38 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending December 31, 2026.

The exposures the Company is hedging with these qualifying cash flow hedges include the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments.

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
Credit derivatives, where the Company has written credit protection on certain index references, have outstanding notional amounts of $875 million and $912 million as of December 31, 2025 and 2024, respectively. These credit derivatives are reported at fair value as an asset of $10 million and $10 million as of December 31, 2025 and 2024, respectively. As of December 31, 2025 the notional amount of these credit derivatives had the following NAIC ratings: $845 million in NAIC 3 and $30 million in NAIC 6.
The Company has no exposure on purchased credit protection as of December 31, 2025 and 2024.
Counterparty Credit Risk
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 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.
Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position.
B-48
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
6. FAIR VALUE OF ASSETS AND LIABILITIES
Fair Value Measurement - Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:
Level 1 - Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. The Company’s Level 1 assets and liabilities primarily include certain cash equivalents and short-term investments, equity securities, and derivative contracts that trade on an active exchange market included in other invested assets and other liabilities.
Level 2 - Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. The Company’s Level 2 assets and liabilities include: fixed maturities (corporate public and private bonds, most government securities, certain asset-backed and mortgage-backed securities, etc.), certain equity securities (mutual funds, which do not trade in active markets because they are not publicly available), certain cash equivalents (primarily commercial paper), short-term investments, certain OTC derivatives, separate account assets, receivables from parent and affiliates, other liabilities and embedded derivatives associated with certain reinsurance arrangements.
Level 3 - Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. The Company’s Level 3 assets and liabilities primarily include: certain private fixed maturities and equity securities, certain manually priced public equity securities and fixed maturities, certain highly structured OTC derivative contracts, contracts or contract features pertaining to living benefit features (market risk benefits) of the Company's variable annuity contracts, embedded derivatives associated with the index-linked features of certain universal life and annuity products, receivables from parent and affiliates, short-term investments, cash equivalents and other liabilities.
B-49
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Assets and Liabilities by Hierarchy Level – The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.
 December 31, 2025
Level 1Level 2Level 3Netting(1)Total
(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies$0 $1,117,320 $0 $$1,117,320 
Obligations of U.S. states and their political subdivisions0 434,528 0 434,528 
Foreign government securities0 424,735 0 424,735 
U.S. corporate public securities0 19,067,987 0 19,067,987 
U.S. corporate private securities0 5,860,168 842,444 6,702,612 
Foreign corporate public securities0 5,312,470 8,746 5,321,216 
Foreign corporate private securities0 6,722,526 460,924 7,183,450 
Asset-backed securities(2)0 3,814,974 1,261,074 5,076,048 
Commercial mortgage-backed securities0 1,278,970 75,340 1,354,310 
Residential mortgage-backed securities0 933,162 8,803 941,965 
Subtotal0 44,966,840 2,657,331 47,624,171 
Market risk benefit assets0 0 2,655,866 2,655,866 
Fixed maturities, trading0 4,738,551 153,956 4,892,507 
Equity securities2,731,986 135,295 2,350 2,869,631 
Short-term investments0 271,028 164 271,192 
Cash equivalents50,286 2,464,769 0 2,515,055 
Other invested assets(3)285,479 21,524,856 0 (21,763,852)46,483 
Reinsurance recoverables and deposit receivables0 0 804,855 804,855 
Receivables from parent and affiliates0 291,583 358,188 649,771 
Subtotal excluding separate account assets3,067,751 74,392,922 6,632,710 (21,763,852)62,329,531 
Separate account assets(4)(5)567,387 110,105,979 21,982 110,695,348 
Total assets$3,635,138 $184,498,901 $6,654,692 $(21,763,852)$173,024,879 
Market risk benefit liabilities$0 $0 $4,482,417 $$4,482,417 
Policyholders' account balances0 0 18,606,282 18,606,282 
Reinsurance and funds withheld payables0 2650 265 
Payables to parent and affiliates0 33,211,800 0 (30,731,963)2,479,837 
Other liabilities258,878 0 0 (256,500)2,378 
Total liabilities$258,878 $33,212,065 $23,088,699 $(30,988,463)$25,571,179 
B-50
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
 December 31, 2024
 Level 1Level 2Level 3Netting(1)Total
 (in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies$0 $1,099,241 $0 $$1,099,241 
Obligations of U.S. states and their political subdivisions0 541,066 0 541,066 
Foreign government securities0 309,686 648 310,334 
U.S. corporate public securities0 13,238,428 0 13,238,428 
U.S. corporate private securities0 4,996,400 757,697 5,754,097 
Foreign corporate public securities0 3,692,124 6,727 3,698,851 
Foreign corporate private securities0 4,906,450 435,183 5,341,633 
Asset-backed securities(2)0 3,126,089 624,574 3,750,663 
Commercial mortgage-backed securities0 820,457 75,318 895,775 
Residential mortgage-backed securities0 356,072 0 356,072 
Subtotal0 33,086,013 1,900,147 34,986,160 
Market risk benefit assets0 0 2,637,363 2,637,363 
Fixed maturities, trading0 3,778,760 66,285 3,845,045 
Equity securities2,587,791 15,514 20,515 2,623,820 
Short-term investments0 390,745 105,540 496,285 
Cash equivalents0 2,851,250 33 2,851,283 
Other invested assets(3)2,302 15,330,249 143 (15,308,195)24,499 
Reinsurance recoverables and deposit receivables0 0 645,193 645,193 
Receivables from parent and affiliates0 169,072 351,390 520,462 
Subtotal excluding separate account assets2,590,093 55,621,603 5,726,609 (15,308,195)48,630,110 
Separate account assets(4)(5)273,288 111,415,717 10,547 111,699,552 
Total assets$2,863,381 $167,037,320 $5,737,156 $(15,308,195)$160,329,662 
Market risk benefit liabilities$0 $0 $4,281,244 $$4,281,244 
Policyholders' account balances0 0 12,624,585 12,624,585 
Payables to parent and affiliates0 27,232,920 0 (23,617,643)3,615,277 
Other liabilities7,988 1,274 31 (1,943)7,350 
Total liabilities$7,988 $27,234,194 $16,905,860 $(23,619,586)$20,528,456 
(1)"Netting" amounts represent cash collateral of $(9,225) million and $(8,311) million as of December 31, 2025 and 2024, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting agreements.
(2)Includes credit-tranched securities collateralized by loan obligations, home equity loans, auto loans and education loans.
(3)Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At December 31, 2025 and 2024, the fair value of such investments was $87 million and $44 million, respectively.
(4)Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Consolidated Statements of Financial Position.
(5)Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate-owned life insurance fund. At December 31, 2025 and 2024, the fair value of such investments was $7,914 million and $6,444 million, respectively.
B-51
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
The methods and assumptions the Company uses to estimate the fair value of assets and liabilities measured at fair value on a recurring basis are summarized below.
Fixed Maturity Securities – The fair values of the Company’s public fixed maturity securities are generally based on prices obtained from independent pricing services. Prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type. The pricing hierarchy is updated for new financial products and recent pricing experience with various vendors. Consistent with the fair value hierarchy described above, securities with validated quotes from pricing services are generally reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. Typical inputs used by these pricing services include but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flow, prepayment speeds, and default rates. If the pricing information received from third-party pricing services is deemed not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process with the pricing service or classify the securities as Level 3. If the pricing service updates the price to be more consistent with the presented market observations, the security remains within Level 2.
Internally-developed valuations or indicative broker quotes are also used to determine fair value in circumstances where vendor pricing is not available, or where the Company ultimately concludes that pricing information received from the independent pricing services is not reflective of market activity. If the Company concludes the values from both pricing services and brokers are not reflective of market activity, it may override the information with an internally-developed valuation. As of December 31, 2025 and 2024, overrides on a net basis were not material. Pricing service overrides, internally-developed valuations and indicative broker quotes are generally included in Level 3 in the fair value hierarchy.
The Company conducts several specific price monitoring activities. Daily analyses identify price changes over predetermined thresholds defined at the financial instrument level. Various pricing integrity reports are reviewed on a daily and monthly basis to determine if pricing is reflective of market activity or if it would warrant any adjustments. Other procedures performed include, but are not limited to, reviews of third-party pricing services methodologies, reviews of pricing trends and back testing.
The fair values of private fixed maturities, which are originated by internal private asset managers, are primarily determined using discounted cash flow models. These models primarily use observable inputs that include Treasury or similar base rates plus estimated credit spreads to value each security. The credit spreads are obtained through a survey of private market intermediaries who are active in both primary and secondary transactions, and consider, among other factors, the credit quality and the reduced liquidity associated with private placements. Internal adjustments are made to reflect variation in observed sector spreads. Since most private placements are valued using standard market observable inputs and inputs derived from, or corroborated by, market observable data including, but not limited to observed prices and spreads for similar publicly or privately traded issues, they have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model may incorporate significant unobservable inputs, which reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the price of a security, a Level 3 classification is made.
Equity Securities – Equity securities consist principally of investments in common and preferred stock of publicly traded companies, privately traded securities, as well as mutual fund shares. The fair values of most publicly traded equity securities are based on quoted prices in active markets for identical assets and are classified within Level 1 in the fair value hierarchy. Estimated fair values for most privately traded equity securities are determined using discounted cash flow, earnings multiple and other valuation models that require a substantial level of judgment around inputs and therefore are classified within Level 3. The fair values of mutual fund shares that transact regularly (but do not trade in active markets because they are not publicly available) are based on transaction prices of identical fund shares and are classified within Level 2 in the fair value hierarchy.
Cash Equivalents and Short-Term Investments – Cash equivalents and short-term investments include money market instruments, commercial paper and other highly liquid debt instruments. Certain money market instruments are valued using unadjusted quoted prices in active markets that are accessible for identical assets and are primarily classified as Level 1. The remaining instruments in this category are generally fair valued based on market observable inputs and these investments have primarily been classified within Level 2.
Derivative Instruments – Derivatives are recorded at fair value either as assets within "Other invested assets", or as liabilities within "Payables to parent and affiliates" or "Other liabilities", except for embedded derivatives which are recorded with the associated host contract. The fair values of derivative contracts can be affected by changes in interest rates, foreign exchange rates, credit spreads, market volatility, expected returns, NPR, liquidity and other factors.
The Company's exchange-traded futures and options include treasury and equity futures. Exchange-traded futures and options are valued using quoted prices in active markets and are classified within Level 1 in the fair value hierarchy.
B-52
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
The majority of the Company’s derivative positions are traded in the OTC derivative market and are classified within Level 2 in the fair value hierarchy. OTC derivatives classified within Level 2 are valued using models that utilize actively quoted or observable market inputs from external market data providers, third-party pricing vendors and/or recent trading activity. The Company’s policy is to use mid-market pricing in determining its best estimate of fair value. The fair values of most OTC derivatives, including interest rate and cross-currency swaps, currency forward contracts and credit default swaps are determined using discounted cash flow models. The fair values of European style option contracts are determined using Black-Scholes option pricing models. These models’ key inputs include the contractual terms of the respective contract, along with significant observable inputs, including interest rates, currency rates, credit spreads, equity prices, index dividend yields, NPR, volatility and other factors.
The Company’s cleared interest rate swaps and credit derivatives linked to an index are valued using models that utilize actively quoted or observable market inputs, including SOFR, obtained from external market data providers, third-party pricing vendors and/or recent trading activity. These derivatives are classified as Level 2 in the fair value hierarchy.
Reinsurance Recoverables and Deposit Receivables – Reinsurance recoverables and deposit receivables primarily include (1) an embedded derivative associated with net receivables from modified coinsurance arrangements where the Company is the cedant; and (2) an embedded derivatives on deposit receivables where the Company has ceded fixed indexed annuities. The methods and assumptions used to estimate the fair value are consistent with those described below in "Policyholders' account balances".
Receivables from Parent and Affiliates – Receivables from parent and affiliates carried at fair value include affiliated bonds within the Company’s legal entity where fair value is determined consistent with similar securities described above under "Fixed Maturity Securities" managed by affiliated asset managers.
Separate Account Assets – Separate account assets include fixed maturity securities, treasuries, equity securities, real estate, mutual funds and commercial mortgage loans for which values are determined consistent with similar instruments described above under "Fixed Maturity Securities" and "Equity Securities".
Market Risk Benefits – Market risk benefit liabilities (or assets) represent contracts or contract features that provide protection to the contractholder and expose the insurance entity to other than nominal capital market risk, primarily related to deferred annuities with guaranteed minimum benefits in the annuities products including GMDB, GMIB, GMAB, GMWB and GMIWB. The benefits are bundled together and accounted for as single compound market risk benefits using a fair value measurement framework.
The fair value of these market risk benefits is calculated as the present value of expected future benefit payments to contractholders less the present value of expected future rider fees attributable to the market risk benefits. The fair value of these benefit features is based on assumptions a market participant would use in valuing market risk benefits. This methodology could result in either a liability or asset balance, given changing capital market conditions and various actuarial assumptions. Since there is no observable active market for the transfer of these obligations, the valuations are calculated using internally-developed models with option pricing techniques. The models are based on a risk neutral valuation framework and incorporate premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows. The determination of these risk premiums requires the use of management’s judgment.

The significant inputs to the valuation models for these market risk benefits include capital market assumptions, such as interest rate levels and volatility assumptions, the Company’s market-perceived NPR, as well as actuarially determined assumptions, including contractholder behavior, such as lapse rates, benefit utilization rates, withdrawal rates, and mortality rates. Since many of these assumptions are unobservable and are considered to be significant inputs to the valuations, the assets and liabilities included in market risk benefits have been reflected within Level 3 in the fair value hierarchy.

Capital market inputs and actual policyholders’ account values are updated each quarter based on capital market conditions as of the end of the quarter, including interest rates, equity markets and volatility. In the risk neutral valuation, the initial swap curve drives the total return used to grow the policyholders’ account values. The Company’s discount rate assumption is based on the SOFR swap curve adjusted for an additional spread relative to SOFR to reflect the Company’s market-perceived NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with the Company issued funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt.

B-53
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Actuarial assumptions, including contractholder behavior and mortality, are reviewed at least annually, and updated based upon Company emerging experience and industry studies, future expectations and other data, including any observable market data. These assumptions are generally updated annually unless a material change that the Company feels is indicative of a long-term trend is observed in an interim period.
Policyholders' Account Balances – The liability for policyholders’ account balances is related to certain embedded derivative instruments associated with certain universal life and annuity products that provide policyholders with index-linked interest credited over contract specified term periods. The fair values of these liabilities are determined using discounted cash flow models which include capital market assumptions such as interest rates and equity index volatility assumptions, the Company’s market-perceived NPR and actuarially determined assumptions for mortality, lapses and projected hedge costs.
As there is no observable active market for these liabilities, the fair value is determined as the present value of account balances paid to policyholders in excess of contractually guaranteed minimums using option pricing techniques for index term periods that contain deposits as of the valuation date, and the expected option cost for future index term periods, where the terms of index crediting rates have not yet been declared by the Company. Premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows are also incorporated in the fair value of these liabilities. Since the valuation of these liabilities requires the use of management’s judgment to determine these risk premiums and the use of unobservable inputs, these liabilities are reflected within Level 3 in the fair value hierarchy.
Capital market inputs, including interest rates and equity market volatility, and actual policyholders’ account values are updated each quarter. Actuarial assumptions are reviewed at least annually and updated based upon emerging Company experience, future expectations and other data, including any observable market data. Aside from these annual updates, assumptions are generally updated only if a material change is observed in an interim period that the Company believes is indicative of a long-term trend.
Reinsurance and Funds Withheld Payables – Reinsurance and funds withheld payables primarily includes an embedded derivative associated with certain funds withheld reinsurance arrangements that are described in Note 12. The fair value is determined based on the valuation of the underlying funds withheld assets identified to support the payable due to the applicable reinsurance counterparties.
Other Liabilities – Other liabilities include certain derivative instruments. The fair values of derivative instruments are determined consistent with those described above under "Derivative Instruments".

B-54
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Quantitative Information Regarding Internally-Priced Level 3 Assets and Liabilities - The tables below present quantitative information regarding significant internally-priced Level 3 assets and liabilities.
 December 31, 2025
 Fair Value    Valuation  
Techniques		Unobservable 
Inputs  		Minimum  MaximumWeighted
Average		Impact of 
Increase in Input on Fair Value(1)(2)
 (in thousands)
Assets:
Corporate securities(3)$1,187,393 Discounted cash flowDiscount rate1.85 %25.50 %9.62 %Decrease
Market comparablesEBITDA multiple(4)7.00 X7.00 X7.00 XIncrease
LiquidationLiquidation value12.01 %30.83 %28.88 %Increase
Asset-backed securities$403,303 Discounted cash flow Discount rate 2.10 %10.05 %5.42 %Decrease
Commercial mortgage-backed securities$75,340 Discounted cash flowLiquidity premium0.90 %0.90 %0.90 %Decrease
Market risk benefit assets(5)$2,655,866 Discounted cash flowLapse rate(6)1 %20 %Increase
Spread over SOFR(7)0.38 %1.61 %Increase
Utilization rate(8)37 %94 %Decrease
Withdrawal rateSee table footnote (9) below.
Mortality rate(10)0 %16 %Increase
Equity volatility curve15 %25 %Decrease
Reinsurance recoverables and deposit receivables(11)$804,855 Discounted cash flowLapse rate(6)0 %80 %Decrease
Spread over SOFR(7)0.38 %1.61 %Decrease
Option budget(13)(2)%9 %Increase
Receivables from parent and affiliates$354,207 LiquidationLiquidation value100 %100 %100 %Increase
Liabilities:
Market risk benefit liabilities(5)$4,482,417 Discounted cash flowLapse rate(6)1 %20 %Decrease
Spread over SOFR(7)0.38 %1.61 %Decrease
Utilization rate(8)37 %94 %Increase
Withdrawal rateSee table footnote (9) below.
Mortality rate(10)0 %16 %Decrease
Equity volatility curve15 %25 %Increase
Policyholders' account balances(12)$18,606,282 Discounted cash flowLapse rate(6)0 %80 %Decrease
Spread over SOFR(7)0.38 %1.61 %Decrease
Mortality rate(10)0 %23 %Decrease
Option budget(13)(2)%9 %Increase

B-55
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
 December 31, 2024
 Fair ValueValuation 
Techniques		Unobservable 
Inputs   		MinimumMaximumWeighted
Average		Impact of 
Increase in Input on Fair Value(1)(2)
 (in thousands)
Assets:
Corporate securities(3)$1,130,627 Discounted cash flowDiscount rate2.15 %20.00 %11.15 %Decrease
Market comparablesEBITDA multiple(4)5.0 X5.0 X5.0 XIncrease
LiquidationLiquidation value75.00 %75.00 %75.00 %Increase
Asset-backed securities$90,370 Discounted cash flowDiscount rate2.30 %10.70 %6.18 %Decrease
Commercial mortgage-backed securities$75,318 Discounted cash flowLiquidity premium1.00 %1.00 %1.00 %Decrease
Market risk benefit assets(5)$2,637,363 Discounted cash flowLapse rate(6)1 %20 %Increase
Spread over SOFR(7)0.29 %1.79 %Increase
Utilization rate(8)37 %94 %Decrease
Withdrawal rateSee table footnote (9) below.
Mortality rate(10)0 %16 %Increase
Equity volatility curve16 %25 %Decrease
Reinsurance recoverables and deposit receivables(11)$645,193 Discounted cash flowLapse rate(6)0 %80 %Decrease
Spread over SOFR(7)0.29 %1.71 %Decrease
Option budget(13)(1)%7 %Increase
Receivables from parent and affiliates$328,001 LiquidationLiquidation value100 %100 %100 %Increase
Liabilities:
Market risk benefit liabilities(5)$4,281,244 Discounted cash flowLapse rate(6)1 %20 %Decrease
Spread over SOFR(7)0.29 %1.79 %Decrease
Utilization rate(8)37 %94 %Increase
Withdrawal rateSee table footnote (9) below.
Mortality rate(10)0 %16 %Decrease
Equity volatility curve16 %25 %Increase
Policyholders' account balances(12)$12,624,585 Discounted cash flowLapse rate(6)0 %80 %Decrease
Spread over SOFR(7)0.29 %1.73 %Decrease
Mortality rate(10)0 %23 %Decrease
Option budget(13)(1)%7 %Increase
(1)Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.
(2)Directional impacts for MRB assets and liabilities are associated with the directional impacts of direct and assumed MRBs.
(3)Includes assets classified as fixed maturities, available-for-sale and fixed maturities, trading.
(4)Represents multiple of earnings before interest, taxes, depreciation and amortization ("EBITDA"), and are amounts used when the Company has determined that market participants would use such multiples when valuing the investments.
(5)Market risk benefits primarily represent fair value for all living benefit guarantees including accumulation, withdrawal and income benefits. Since the valuation methodology for these assets and liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.
B-56
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
(6)Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these balances.
(7)The spread over the SOFR swap curve represents the premium added to the proxy for the risk-free rate (SOFR) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees as of December 31, 2025 and 2024, respectively. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements are insurance liabilities and are therefore senior to debt. Effective April 2023, the Company entered into an agreement with The Ohio National Life Insurance Company, now known as AuguStar Life Insurance Company ("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. See Note 12 for additional information regarding this transaction. As a result of this transaction, a ceded MRB asset balance was established to fair value the reinsurance reimbursements to the Company. The establishment of the fair value also required an estimate of NPR for AuguStar, which may differ from the Company's; however, the NPR spreads for AuguStar were developed using a methodology similar to that of the Company.
(8)The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.
(9)The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of both December 31, 2025 and 2024, the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.
(10)The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 50 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age and duration. A mortality improvement assumption is also incorporated into the overall mortality table.
(11)Includes deposit assets related to reinsurance agreements using deposit method of accounting and modified coinsurance agreements, which include amounts representing the fair value of embedded derivative instruments associated with the index-linked features of certain annuity products.
(12)Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s life and annuity products that are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.
(13)Option budget estimates the expected long-term cost of options used to hedge exposures associated with equity price and interest rate changes. The level of option budget determines future costs of the options, which impacts the growth in account value and the valuation of embedded derivatives.

Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another or multiple inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows:
Corporate Securities – The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term, and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. During weaker economic cycles, as the expectations of default increase, credit spreads widen, which results in a decrease in fair value.
Commercial Mortgage-backed Securities – Interrelationships may exist between the prepayment rate, the default rate and/or loss severity, depending on specific market conditions. In stronger economic cycles, prepayment rates are generally driven by underlying property appreciation and subsequent cash-out refinances, while default rates and loss severity may be lower. During weaker economic cycles, prepayment rates may decline, while default rates and loss severity increase. Generally, a change in the assumption used for the probability of default would be accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment rates. The impact of these factors on average life and economics varies with the deal structure and tranche subordination.
Market Risk Benefits – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is generally highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money.
B-57
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)

Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods (excluding MRBs disclosed in Note 11). When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.
Year Ended December 31, 2025(6)
Fair Value, beginning of periodTotal realized and unrealized gains (losses)PurchasesSalesIssuancesSettlementsOther(1)Transfers into
Level 3(7)		Transfers out of Level 3(7)Fair Value, end of periodUnrealized gains (losses) for assets and liabilities still held(2)
(in thousands)
Fixed maturities, available-for-sale:
Foreign government$648 $(8)$0 $0 $0 $(640)$0 $0 $0 $0 $0 
Corporate securities(3)1,199,607 (18,352)1,298,618 (929,011)0 (275,269)(3,819)54,950 (14,610)1,312,114 (26,070)
Structured securities(4)699,892 6,535 879,448 (38,219)0 (229,224)(30,444)292,257 (235,028)1,345,217 4,813 
Other assets:
Fixed maturities, trading66,285 22,926 565,106 0 0 (46,805)26,461 2,166 (482,183)153,956 26,447 
Equity securities20,515 (140)2,249 0 0 0 0 0 (20,274)2,350 (140)
Other invested assets143 (143)0 0 0 0 0 0 0 0 (143)
Short-term investments105,540 (201)4,018 (104,545)0 (25,279)(1,741)22,372 0 164 (226)
Cash equivalents33 (46)2,660 (35)0 (2,305)(307)0 0 0 (80)
Reinsurance recoverables and deposit receivables(5)645,193 (19,866)179,528 0 0 0 0 0 0 804,855 (337,374)
Separate account assets10,547 520 12,710 (789)0 (1,006)0 0 0 21,982 533 
Receivables from parent and affiliates351,390 (8,467)159,069 (16,034)0 (135,122)30,792 0 (23,440)358,188 (588)
Liabilities:
Policyholders' account balances(5)(12,624,585)(4,407,178)0 0 (1,574,519)0 0 0 0 (18,606,282)675,999 
Other liabilities(31)31 0 0 0 0 0 0 0 0 31 
Notes issued by consolidated variable interest entities0 0 0 0 (17,538)17,538 0 0 0 0 0 
B-58
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Year Ended December 31, 2025
Total realized and unrealized gains (losses)Unrealized gains (losses) for assets and liabilities still held(2)
Realized investment gains (losses), netOther income (loss)Interest credited to policyholders' account balancesIncluded in other comprehensive income (loss)Net investment incomeRealized investment gains (losses), netOther income (loss)Interest credited to policyholders' account balancesIncluded in other comprehensive income (loss)
(in thousands)
Fixed maturities, available-for-sale$(51,531)$0 $0 $38,751 $955 $(57,441)$0 $0 $36,184 
Other assets:
Fixed maturities, trading0 23,182 0 0 (256)0 26,447 0 0 
Equity securities0 (140)0 0 0 0 (140)0 0 
Other invested assets(143)0 0 0 0 (143)0 0 0 
Short-term investments184 0 0 (385)0 125 0 0 (351)
Cash equivalents(46)0 0 0 0 (80)0 0 0 
Reinsurance recoverables and deposit receivables(19,866)0 0 0 0 (337,374)0 0 0 
Separate account assets0 0 520 0 0 0 0 533 0 
Receivables from parent and affiliates(7,689)0 0 (778)0 0 0 0 (588)
Liabilities:
Policyholders' account balances(4,407,178)0 0 0 0 675,999 0 0 0 
Other liabilities31 0 0 0 0 31 0 0 0 
Notes issued by consolidated variable interest entities0 0 0 0 0 0 0 0 0 
B-59
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Year Ended December 31, 2024(6)
Fair Value, beginning of periodTotal realized and unrealized gains (losses)PurchasesSalesIssuancesSettlementsOther(1)Transfers into
Level 3(7)		Transfers out of Level 3(7)Fair Value, end of periodUnrealized gains (losses) for assets and liabilities still held(2)
(in thousands)
Fixed maturities, available-for-sale:
Foreign government$682 $(34)$0 $0 $0 $0 $0 $0 $0 $648 $(44)
Corporate securities(3)1,014,343 (69,658)1,172,201 (702,073)0 (183,577)(64,672)33,043 0 1,199,607 (61,011)
Structured securities(4)177,237 (5,386)771,208 (40,508)0 (96,067)65,480 34,578 (206,650)699,892 (3,394)
Other assets:
Fixed maturities, trading34,048 (9,654)261,968 (52)0 (2,261)0 18,842 (236,606)66,285 (9,705)
Equity securities28,709 (2,135)273 (6,120)0 (6,332)6,120 0 0 20,515 (230)
Other invested assets1 142 0 0 0 0 0 0 0 143 142 
Short-term investments1,759 1,539 117,046 (13,113)0 (1,488)(203)0 0 105,540 321 
Cash equivalents0 (41)744 0 0 (65)(605)0 0 33 (41)
Reinsurance recoverables and deposit receivables(5)192,642 26,029 333,291 0 0 0 93,231 0 0 645,193 (122,807)
Separate account assets5,985 457 5,823 (2,050)0 (126)0 458 0 10,547 457 
Receivables from parent and affiliates0 90 418,916 (51,199)0 0 0 0 (16,417)351,390 90 
Liabilities:
Policyholders' account balances(5)(7,697,627)(2,687,101)0 0 (2,286,786)0 46,929 0 0 (12,624,585)1,254,144 
Other liabilities0 (31)0 0 0 0 0 0 0 (31)(31)
B-60
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Year Ended December 31, 2024
Total realized and unrealized gains (losses)Unrealized gains (losses) for assets and liabilities still held(2)
Realized investment gains (losses), netOther income (loss)Interest credited to policyholders' account balancesIncluded in other comprehensive income (loss)Net investment incomeRealized investment gains (losses), netOther income (loss)Interest credited to policyholders' account balancesIncluded in other comprehensive income (loss)
(in thousands)
Fixed maturities, available-for-sale$(54,924)$0 $0 $(19,313)$(841)$(40,765)$0 $0 $(23,684)
Other assets:
Fixed maturities, trading0 (9,661)0 0 7 0 (9,705)0 0 
Equity securities0 (2,135)0 0 0 0 (230)0 0 
Other invested assets142 0 0 0 0 142 0 0 0 
Short-term investments1,142 0 0 385 12 (64)0 0 385 
Cash equivalents(41)0 0 0 0 (41)0 0 0 
Reinsurance recoverables and deposit receivables26,029 0 0 0 0 (122,807)0 0 0 
Separate account assets0 0 457 0 0 0 0 457 0 
Receivables from parent and affiliates0 0 0 90 0 0 0 0 90 
Liabilities:
Policyholders' account balances(2,687,101)0 0 0 0 1,254,144 0 0 0 
Other liabilities(31)0 0 0 0 (31)0 0 0 
Year Ended December 31, 2023
Total realized and unrealized gains (losses)Unrealized gains (losses) for assets and liabilities still held(2)
Realized investment gains (losses), netOther income (loss)Interest credited to policyholders' account balancesIncluded in other comprehensive income (loss)Net investment incomeRealized investment gains (losses), netOther income (loss)Interest credited to policyholders' account balancesIncluded in other comprehensive income (loss)
(in thousands)
Fixed maturities, available-for-sale$(2,081)$0 $0 $(2,808)$490 $(2,904)$0 $0 $(2,420)
Other assets:
Fixed maturities, trading0 1,080 0 0 3 0 1,225 0 0 
Equity securities0 (928)0 0 0 0 (928)0 0 
Other invested assets1 0 0 0 0 1 0 0 0 
Short-term investments1,857 0 0 (73)789 0 0 0 0 
Reinsurance recoverables and deposit receivables(104,596)0 0 0 0 (119,067)0 0 0 
Separate account assets0 0 408 0 0 0 0 406 0 
Liabilities:
Policyholders' account balances(2,649,136)0 0 0 0 (368,507)0 0 0 
(1)"Other" includes additional activity not allocated to the specific categories within the rollforward of Level 3 Assets and Liabilities.
(2)Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.
(3)Includes U.S. corporate private, foreign corporate public, foreign corporate private, and foreign government bonds.
(4)Includes asset-backed, commercial mortgage-backed, and residential mortgage-backed securities.
B-61
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
(5)Purchases/issuances and settlements for Policyholders' account balances and Reinsurance recoverables and deposit receivables are presented net in the rollforward.
(6)Excludes MRB assets of $2,656 million and $2,637 million and MRB liabilities of $4,482 million and $4,281 million as of December 31, 2025 and 2024, respectively. See Note 11 for additional information.
(7)Transfers into or out of Level 3 are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such positions still held at the end of the quarter.
Fair Value of Financial Instruments
The tables below present the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.
 December 31, 2025
Fair ValueCarrying
Amount(1)
Level 1Level 2Level 3TotalTotal
 (in thousands)
Assets:
Commercial mortgage and other loans$0 $0 $10,113,511 $10,113,511 $10,082,667 
Policy loans0 0 1,666,965 1,666,965 1,666,965 
Short-term investments49,602 0 0 49,602 49,602 
Cash and cash equivalents361,333 0 0 361,333 361,333 
Accrued investment income0 618,033 0 618,033 618,033 
Reinsurance recoverables and deposit receivables0 0 4,588,399 4,588,399 4,589,685 
Receivables from parent and affiliates0 313,681 0 313,681 313,681 
Other assets0 267,560 0 267,560 267,560 
Total assets$410,935 $1,199,274 $16,368,875 $17,979,084 $17,949,526 
Liabilities:
Policyholders’ account balances - investment contracts$0 $762,066 $14,868,285 $15,630,351 $15,644,802 
Cash collateral for loaned securities0 22,622 0 22,622 22,622 
Reinsurance and funds withheld payables0 2,886,507 0 2,886,507 2,886,507 
Payables to parent and affiliates0 17,380 0 17,380 17,380 
Other liabilities0 657,530 30,794 688,324 688,324 
Total liabilities$0 $4,346,105 $14,899,079 $19,245,184 $19,259,635 
B-62
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
 December 31, 2024
  
Fair ValueCarrying
Amount(1)
 Level 1Level 2Level 3TotalTotal
 (in thousands)
Assets:
Commercial mortgage and other loans$0 $0 $7,534,909 $7,534,909 $7,759,323 
Policy loans0 0 1,541,480 1,541,480 1,541,480 
Short-term investments21,101 0 0 21,101 21,101 
Cash and cash equivalents474,415 0 0 474,415 474,415 
Accrued investment income0 466,394 0 466,394 466,394 
Reinsurance recoverables and deposit receivables0 0 2,355,489 2,355,489 2,357,292 
Receivables from parent and affiliates0 157,566 0 157,566 157,566 
Other assets0 203,493 0 203,493 203,493 
Total assets$495,516 $827,453 $11,431,878 $12,754,847 $12,981,064 
Liabilities:
Policyholders’ account balances - investment contracts$0 $815,520 $9,995,841 $10,811,361 $10,826,931 
Cash collateral for loaned securities0 121,372 0 121,372 121,372 
Reinsurance and funds withheld payables0 2,602,140 0 2,602,140 2,602,140 
Payables to parent and affiliates0 38,571 0 38,571 38,571 
Other liabilities0 849,278 31,606 880,884 880,884 
Total liabilities$0 $4,426,881 $10,027,447 $14,454,328 $14,469,898 
(1)Carrying values presented herein differ from those in the Company’s Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.
The fair values presented above have been determined by using available market information and by applying market valuation methodologies, as described in more detail below.
Commercial Mortgage and Other Loans
The fair value of most commercial mortgage loans is based upon the present value of the expected future cash flows discounted at the appropriate U.S. Treasury rate or foreign government bond rate (for non-U.S. dollar-denominated loans) plus an appropriate credit spread for loans of similar quality, average life and currency. The quality ratings for these loans, a primary determinant of the credit spreads and a significant component of the pricing process, are based on an internally-developed methodology. Certain commercial mortgage loans are valued incorporating other factors, including the terms of the loans, the relative strength of the underlying collateral, the principal exit strategies for the loans, prevailing interest rates and credit risk.
Policy Loans
The Company's valuation technique for policy loans is to discount cash flows at the current policy loan coupon rate. Policy loans are fully collateralized by the cash surrender value of underlying insurance policies. As a result, the carrying value of the policy loans approximates the fair value.
B-63
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Short-Term Investments, Cash and Cash Equivalents, Accrued Investment Income, Receivables from Parent and Affiliates and Other Assets
The Company believes that due to the short-term nature of certain assets, the carrying value approximates fair value. These assets include: certain short-term investments, which are not securities, recorded at amortized cost, cash and cash equivalent instruments; accrued investment income; receivables from parent and affiliates; and other assets that meet the definition of financial instruments, including receivables such as unsettled trades and accounts receivable.
Reinsurance Recoverables and Deposit Receivables
Reinsurance recoverables and deposit receivables include receivables from modified coinsurance arrangements and other reinsurance arrangements between the Company, its affiliates, and third-parties. See Note 12 for additional information about the Company's reinsurance arrangements. Deposit receivables primarily consist of deposit assets related to the reinsurance agreements. Deposits made are included in "Reinsurance recoverables and deposit receivables". The deposit assets are adjusted as amounts are paid, consistent with the underlying contracts.
Policyholders’ Account Balances - Investment Contracts
Only the portion of policyholders’ account balances related to products that are investment contracts (those without significant mortality or morbidity risk) are reflected in the table above. For fixed deferred annuities, payout annuities and other similar contracts without life contingencies, fair values are generally derived using discounted projected cash flows based on interest rates that are representative of the Company’s financial strength ratings, and hence reflect the Company’s NPR. For those balances that can be withdrawn by the customer at any time without prior notice or penalty, the fair value is the amount estimated to be payable to the customer as of the reporting date, which is generally the carrying value.
Cash Collateral for Loaned Securities
Cash collateral for loaned securities represents the collateral received or paid in connection with loaning or borrowing securities. Due to the short-term nature of these transactions, the carrying value approximates fair value.
Reinsurance and Funds Withheld Payables
Reinsurance and funds withheld payables include amounts payable to the reinsurer under coinsurance with funds withheld arrangements where the Company is the cedant. Deposits received are included in "Reinsurance and funds withheld payables". The deposit liabilities are adjusted as amounts are received, consistent with the underlying contracts.
Payables to Parent and Affiliates
Payables to parent and affiliates is primarily related to accrued expense payables. Due to the short-term until settlement of most of these liabilities, the Company believes that carrying value approximates fair value.
Other Liabilities
Other liabilities are primarily payables, such as unsettled trades, drafts, and escrow deposits. Due to the short-term until settlement of most of these liabilities, the Company believes that carrying value approximates fair value.


B-64
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
7. DEFERRED POLICY ACQUISITION COSTS, DEFERRED REINSURANCE AND DEFERRED SALES INDUCEMENTS

Deferred Policy Acquisition Costs

The following table shows a rollforward for the lines of business that contain DAC balances, along with a reconciliation to the Company's total DAC balance: 
Fixed AnnuitiesVariable AnnuitiesTerm LifeVariable / Universal LifeTotal
 (in thousands)
Balance, December 31, 2022$102,251 $3,759,819 $648,837 $2,445,290 $6,956,197 
Capitalization117,851 263,869 159,000 580,715 1,121,435 
Amortization expense(22,165)(331,368)(63,949)(122,028)(539,510)
Other(1)0 (393,385)0 (1)(393,386)
Balance, December 31, 2023197,937 3,298,935 743,888 2,903,976 7,144,736 
Capitalization216,410 430,520 183,463 703,465 1,533,858 
Amortization expense(42,705)(356,254)(63,447)(140,951)(603,357)
Other(2)(3)0 0 (249,836)(18,341)(268,177)
Balance, December 31, 2024371,642 3,373,201 614,068 3,448,149 7,807,060 
Capitalization185,807 387,360 184,695 735,656 1,493,518 
Amortization expense(59,503)(403,516)(48,252)(152,256)(663,527)
Other(1,235)16,937 (637)3,067 18,132 
Balance, December 31, 2025$496,711 $3,373,982 $749,874 $4,034,616 $8,655,183 
(1)    Includes the impact of the reinsurance agreement with AuguStar. See Note 12 for additional information.
(2)    Includes the impacts of the Universal Life reinsurance transaction with PAR U and PURE. See Note 12 for additional information.
(3)    Includes the impacts of the Term Life reinsurance transaction with PARCC. See Note 12 for additional information.

Deferred Reinsurance Losses

The following table shows a rollforward for the lines of business that contain DRL balances, along with a reconciliation to the Company's total DRL balance:

Variable AnnuitiesTerm LifeVariable /
Universal Life		Total
(in thousands)
Balance, December 31, 2022$223,515 $69,378 $0 $292,893 
Amortization(29,403)(8,374)0 (37,777)
Other(1)0 0 (1)
Balance, December 31, 2023194,111 61,004 0 255,115 
Amortization(29,876)(15,345)(9,528)(54,749)
Other(1)(2)3 351,025 979,000 1,330,028 
Balance, December 31, 2024164,238 396,684 969,472 1,530,394 
Amortization(29,685)(36,797)(37,800)(104,282)
Other4 0 0 4 
Balance, December 31, 2025$134,557 $359,887 $931,672 $1,426,116 
(1)    Includes $979 million DRL related to the reinsurance transaction with Wilton Re. See Note 12 for additional information.
(2)    Includes $351 million DRL related to the reinsurance transaction with PARCC. See Note 12 for additional information.

B-65
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Deferred Reinsurance Gains

The following table shows a rollforward for the lines of business that contain DRG balances, along with a reconciliation to the Company's total DRG balance:
Fixed AnnuitiesVariable AnnuitiesVariable / Universal LifeInternationalTotal
(in thousands)
Balance, December 31, 2022$57,898 $0 $1,434,958 $0 $1,492,856 
Amortization(9,790)(15,612)(71,462)0 (96,864)
Other(1)(34)277,333 0 0 277,299 
Balance, December 31, 202348,074 261,721 1,363,496 0 1,673,291 
Amortization(10,516)(20,061)(121,190)0 (151,767)
Other(2)(3)(10)(32)1,797,303 0 1,797,261 
Balance, December 31, 202437,548 241,628 3,039,609 0 3,318,785 
Amortization(9,303)(19,298)(120,590)(726)(149,917)
Other(4)159 76 (1,396,768)13,208 (1,383,325)
Balance, December 31, 2025$28,404 $222,406 $1,522,251 $12,482 $1,785,543 
(1)    Includes the impact of the reinsurance agreement with AuguStar. See Note 12 for additional information.
(2)    Includes the impact of the Universal Life reinsurance transaction with PAR U, PURE and Prudential Insurance effective January 1, 2024, including $1,207 million of DRG, partially offset by a $116 million write-off of the DRG that was recognized with the previous reinsurance agreement. See Note 12 for additional information.
(3)    Includes the impact of the Universal Life reinsurance transaction with PAR U and Prudential Insurance effective October 2024, including $798 million DRG, partially offset by a $94 million write-off of the DRG that was recognized with the previous reinsurance agreement. See Note 12 for additional information.
(4) Includes the impact of recognizing the previously existing DRG, attributable to the recapture of certain YRT transactions from Prudential Insurance effective October 1, 2025. See Note 12 for additional information.


Deferred Sales Inducements

The following table shows a rollforward of DSI balances for variable annuity products, which is the only line of business that contains a DSI balance, along with a reconciliation to the Company's total DSI balance:

Variable Annuities
(in thousands)
Balance, December 31, 2022$381,504 
Capitalization1,514 
Amortization expense(31,625)
Other31 
Balance, December 31, 2023351,424 
Capitalization1,243 
Amortization expense(30,316)
Balance, December 31, 2024322,351 
Capitalization4,047 
Amortization expense(29,370)
Other385 
Balance, December 31, 2025$297,413 


B-66
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
8. SEPARATE ACCOUNTS
The Company issues variable annuity and variable life insurance contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. Most variable annuity and variable life insurance contracts are offered with both separate and general account options. See Note 10 for additional information.
The assets supporting the variable portion of variable annuity and variable life insurance contracts are carried at fair value and reported as “Separate account assets” with an equivalent amount reported as “Separate account liabilities”. The liabilities related to the net amount at risk are reflected within "Future policy benefits" or "Market risk benefit liabilities" (or "assets", if applicable). Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in “Policy charges and fee income” and changes in liabilities for minimum guarantees are generally included in “Policyholders’ benefits” or “Change in value of market risk benefits, net of related hedging gains (losses)”.

Separate Account Assets

The aggregate fair value of assets, by major investment asset category, supporting separate accounts is as follows:

December 31, 2025December 31, 2024
(in thousands)
Asset Type:
U.S. Treasury securities and obligations of U.S. government authorities and agencies$16,501 $15,548 
Obligations of U.S. states and their political subdivisions authorities146 115 
 U.S. corporate securities57,197 24,458 
 Foreign corporate securities5,399 3,158 
Asset-backed securities0 1,099 
Mortgage-backed securities156 82 
Mutual funds:
Equity74,323,288 73,226,610 
Fixed Income30,602,384 33,828,097 
Other5,363,232 4,431,975 
Equity securities285,502 126,792 
Other invested assets7,916,554 6,444,077 
Short-term investments2,690 2,559 
   Cash and cash equivalents36,169 38,686 
Total$118,609,218 $118,143,256 

For the periods ended December 31, 2025, 2024, and 2023, there were no transfers of assets, other than cash, from the general account to a separate account; therefore, no gains or losses were recorded.

B-67
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Separate Account Liabilities
The balances of and changes in separate account liabilities as of and for the periods indicated are as follows:
Year Ended December 31, 2025
Variable AnnuitiesVariable LifeTotal
(in thousands)
Balance, beginning of period$85,183,055 $32,960,201 $118,143,256 
     Deposits554,841 4,087,138 4,641,979 
     Investment performance9,669,502 4,751,811 14,421,313 
     Policy charges(1,974,025)(1,009,626)(2,983,651)
     Surrenders and withdrawals(14,062,933)(699,640)(14,762,573)
     Benefit payments(81,959)(357,630)(439,589)
     Net transfers (to) from general account9,237 (551,221)(541,984)
     Other5,986 124,481 130,467 
Balance, end of period$79,303,704 $39,305,514 $118,609,218 
Cash surrender value(1)$78,673,352 $37,814,966 $116,488,318 
Year Ended December 31, 2024
Variable AnnuitiesVariable LifeTotal
(in thousands)
Balance, beginning of period$92,383,121 $26,805,364 $119,188,485 
Deposits601,236 3,513,738 4,114,974 
Investment performance8,395,586 4,657,022 13,052,608 
Policy charges(2,210,261)(923,275)(3,133,536)
Surrenders and withdrawals(13,827,431)(450,573)(14,278,004)
Benefit payments(66,029)(285,680)(351,709)
Net transfers (to) from general account(100,193)(380,869)(481,062)
Other7,026 24,474 31,500 
Balance, end of period$85,183,055 $32,960,201 $118,143,256 
Cash surrender value(1)$84,325,382 $29,592,881 $113,918,263 
B-68
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Year Ended December 31, 2023
Variable AnnuitiesVariable LifeTotal
(in thousands)
Balance, beginning of period$91,785,447 $22,265,799 $114,051,246 
Deposits440,707 2,745,751 3,186,458 
Investment performance12,219,777 4,310,729 16,530,506 
Policy charges(2,296,859)(829,539)(3,126,398)
Surrenders and withdrawals(9,687,372)(347,955)(10,035,327)
Benefit payments(73,791)(226,242)(300,033)
Net transfers (to) from general account(2)(15,121)(1,175,575)(1,190,696)
Other10,333 62,396 72,729 
Balance, end of period$92,383,121 $26,805,364 $119,188,485 
Cash surrender value(1)$91,201,190 $23,700,726 $114,901,916 
(1) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges.
(2) Variable life includes $900 million of funding for a policy loan to an affiliated irrevocable trust. See Note 16 for additional information.
9. LIABILITY FOR FUTURE POLICY BENEFITS
Liability for future policy benefits primarily consists of the following sub-components, which are discussed in greater detail below.

•Benefit reserves;
•Deferred profit liability; and
•Additional insurance reserves

In 2025, the Company recognized a favorable impact to net income attributable to its annual reviews and update of assumptions and other refinements for liability for future policy benefits. The impact was favorable for direct and assumed benefit reserves and DPL, net of the impact of flooring these liabilities at zero for each issue year cohort, primarily due to updates to mortality assumptions in individual life insurance. Additionally, there was a favorable impact for direct and assumed AIR, primarily due to offsetting impacts from updated policyholder behavior assumptions and mortality assumptions on universal life policies.

In 2024, the Company recognized an impact to net income attributable to our annual reviews and update of assumptions and other refinements for liability for future policy benefits. Overall impact is immaterial for direct and assumed benefit reserves and DPL, net of the impact of flooring these liabilities at zero for each issue year cohort. Additionally, for direct and assumed AIR, the Company recognized an unfavorable impact primarily due to updates to policyholder behavior assumptions on universal life policies with secondary guarantees.

In 2023, the Company recognized an impact to net income attributable to the annual reviews and update of assumptions and other refinements for liability for future policy benefits. Overall impact is immaterial for direct and assumed benefit reserves and DPL, net of the impact of flooring these liabilities at zero for each issue year cohort. Additionally, for direct and assumed AIR, the Company recognized an unfavorable impact primarily due to unfavorable model refinements, partially offset by updates to economic assumptions, including expected future rates of returns on universal life policies with secondary guarantees.

B-69
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Benefit Reserves

The balances of and changes in benefit reserves as of and for the periods indicated consist of the three tables presented below: present value of expected net premiums rollforward, present value of expected future policy benefits rollforward, and net liability for future policy benefits.

Year Ended December 31, 2025
Present Value of Expected Net Premiums
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, beginning of period$10,414,703 $0 $10,414,703 
Effect of cumulative changes in discount rate assumptions, beginning of period567,443 0 567,443 
Balance at original discount rate, beginning of period10,982,146 0 10,982,146 
Effect of assumption update(207,935)0 (207,935)
Effect of actual variances from expected experience and other activity(165,564)110 (165,454)
Adjusted balance, beginning of period10,608,647 110 10,608,757 
Issuances785,281 48,472 833,753 
Net premiums / considerations collected(1,301,943)(48,582)(1,350,525)
Interest accrual511,138 0 511,138 
Other adjustments(1)(226,656)0 (226,656)
Balance at original discount rate, end of period10,376,467 0 10,376,467 
Effect of cumulative changes in discount rate assumptions, end of period(292,273)0 (292,273)
Balance, end of period$10,084,194 $0 $10,084,194 


Year Ended December 31, 2025
Present Value of Expected Future Policy Benefits
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, beginning of period$17,689,399 $238,086 $17,927,485 
Effect of cumulative changes in discount rate assumptions, beginning of period1,091,673 19,442 1,111,115 
Balance at original discount rate, beginning of period18,781,072 257,528 19,038,600 
Effect of assumption update(332,969)22 (332,947)
Effect of actual variances from expected experience and other activity(224,159)4,279 (219,880)
Adjusted balance, beginning of period18,223,944 261,829 18,485,773 
Issuances785,281 48,472 833,753 
Interest accrual902,570 10,656 913,226 
Benefit payments(1,365,376)(36,560)(1,401,936)
Other adjustments(1)60,282 (186)60,096 
Balance at original discount rate, end of period18,606,701 284,211 18,890,912 
Effect of cumulative changes in discount rate assumptions, end of period(574,785)(6,586)(581,371)
Balance, end of period$18,031,916 $277,625 $18,309,541 
Other, end of period1,447 
Total balance, end of period$18,310,988 
(1)     Includes the impact of recognizing the recapture of certain YRT transactions from Prudential Insurance effective October 1, 2025. See Note 12 for additional information.



B-70
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Year Ended December 31, 2025
Net Liability for Future Policy Benefits (Benefit Reserves)
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, end of period, pre-flooring$7,947,722 $277,625 $8,225,347 
Flooring impact, end of period566 0 566 
Balance, end of period, post-flooring7,948,288 277,625 8,225,913 
Less: Reinsurance recoverables7,170,499 22,913 7,193,412 
Balance after reinsurance recoverables, end of period, post-flooring$777,789 $254,712 $1,032,501 

Year Ended December 31, 2024
Present Value of Expected Net Premiums
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, beginning of period$10,927,833 $0 $10,927,833 
Effect of cumulative changes in discount rate assumptions, beginning of period225,711 0 225,711 
Balance at original discount rate, beginning of period11,153,544 0 11,153,544 
Effect of assumption update21,466 0 21,466 
Effect of actual variances from expected experience and other activity(219,878)58 (219,820)
Adjusted balance, beginning of period10,955,132 58 10,955,190 
Issuances827,606 35,717 863,323 
Net premiums / considerations collected(1,319,501)(35,775)(1,355,276)
Interest accrual511,817 0 511,817 
Other adjustments7,092 0 7,092 
Balance at original discount rate, end of period10,982,146 0 10,982,146 
Effect of cumulative changes in discount rate assumptions, end of period(567,443)0 (567,443)
Balance, end of period$10,414,703 $0 $10,414,703 


B-71
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Year Ended December 31, 2024
Present Value of Expected Future Policy Benefits
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, beginning of period$18,426,207 $228,788 $18,654,995 
Effect of cumulative changes in discount rate assumptions, beginning of period331,571 19,521 351,092 
Balance at original discount rate, beginning of period18,757,778 248,309 19,006,087 
Effect of assumption update21,480 (3,643)17,837 
Effect of actual variances from expected experience and other activity(259,137)502 (258,635)
Adjusted balance, beginning of period18,520,121 245,168 18,765,289 
Issuances827,606 35,717 863,323 
Interest accrual893,983 9,119 903,102 
Benefit payments(1,471,863)(32,225)(1,504,088)
Other adjustments11,225 (251)10,974 
Balance at original discount rate, end of period18,781,072 257,528 19,038,600 
Effect of cumulative changes in discount rate assumptions, end of period(1,091,673)(19,442)(1,111,115)
Balance, end of period$17,689,399 $238,086 $17,927,485 
Other, end of period1,474 
Total balance, end of period$17,928,959 

Year Ended December 31, 2024
Net Liability for Future Policy Benefits (Benefit Reserves)
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, end of period, pre-flooring$7,274,696 $238,086 $7,512,782 
Flooring impact, end of period44 0 44 
Balance, end of period, post-flooring7,274,740 238,086 7,512,826 
Less: Reinsurance recoverables6,753,842 20,516 6,774,358 
Balance after reinsurance recoverables, end of period, post-flooring$520,898 $217,570 $738,468 


Year Ended December 31, 2023
Present Value of Expected Net Premiums
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, beginning of period$10,911,794 $0 $10,911,794 
Effect of cumulative changes in discount rate assumptions, beginning of period554,896 0 554,896 
Balance at original discount rate, beginning of period11,466,690 0 11,466,690 
Effect of assumption update(790)0 (790)
Effect of actual variances from expected experience and other activity(200,513)(989)(201,502)
Adjusted balance, beginning of period11,265,387 (989)11,264,398 
Issuances712,495 36,646 749,141 
Net premiums / considerations collected(1,345,514)(35,657)(1,381,171)
Interest accrual521,176 0 521,176 
Balance at original discount rate, end of period11,153,544 0 11,153,544 
Effect of cumulative changes in discount rate assumptions, end of period(225,711)0 (225,711)
Balance, end of period$10,927,833 $0 $10,927,833 
B-72
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)


Year Ended December 31, 2023
Present Value of Expected Future Policy Benefits
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, beginning of period$17,835,251 $204,727 $18,039,978 
Effect of cumulative changes in discount rate assumptions, beginning of period962,035 24,876 986,911 
Balance at original discount rate, beginning of period18,797,286 229,603 19,026,889 
Effect of assumption update(1,044)0 (1,044)
Effect of actual variances from expected experience and other activity(263,243)6,991 (256,252)
Adjusted balance, beginning of period18,532,999 236,594 18,769,593 
Issuances712,495 36,646 749,141 
Interest accrual895,023 8,440 903,463 
Benefit payments(1,386,583)(33,287)(1,419,870)
Other adjustments3,844 (84)3,760 
Balance at original discount rate, end of period18,757,778 248,309 19,006,087 
Effect of cumulative changes in discount rate assumptions, end of period(331,571)(19,521)(351,092)
Balance, end of period$18,426,207 $228,788 $18,654,995 
Other, end of period1,765 
Total balance, end of period$18,656,760 

Year Ended December 31, 2023
Net Liability for Future Policy Benefits (Benefit Reserves)
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, end of period, pre-flooring$7,498,374 $228,788 $7,727,162 
Flooring impact, end of period44 0 44 
Balance, end of period, post-flooring7,498,418 228,788 7,727,206 
Less: Reinsurance recoverables6,817,488 18,489 6,835,977 
Balance after reinsurance recoverables, end of period, post-flooring$680,930 $210,299 $891,229 

The following tables provide supplemental information related to the balances of and changes in benefit reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated:
Year Ended December 31, 2025
Term LifeFixed Annuities
($ in thousands)
Undiscounted expected future gross premiums$22,036,916 $0
Discounted expected future gross premiums (at original discount rate)$14,871,462 $0
Discounted expected future gross premiums (at current discount rate)$14,532,537 $0
Undiscounted expected future benefits and expenses$28,846,500 $380,345
Weighted-average duration of the liability in years (at original discount rate)96
Weighted-average duration of the liability in years (at current discount rate)96
Weighted-average interest rate (at original discount rate)5.10 %4.20 %
Weighted-average interest rate (at current discount rate)5.27 %5.13 %
B-73
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Year Ended December 31, 2024
Term LifeFixed Annuities
($ in thousands)
Undiscounted expected future gross premiums$21,815,010 $0 
Discounted expected future gross premiums (at original discount rate)$14,889,078 $0 
Discounted expected future gross premiums (at current discount rate)$14,154,658 $0 
Undiscounted expected future benefits and expenses$29,163,241 $346,892 
Weighted-average duration of the liability in years (at original discount rate)107
Weighted-average duration of the liability in years (at current discount rate)96
Weighted-average interest rate (at original discount rate)5.13 %3.94 %
Weighted-average interest rate (at current discount rate)5.59 %5.49 %
Year Ended December 31, 2023
Term LifeFixed Annuities
($ in thousands)
Undiscounted expected future gross premiums$21,871,767 $0 
Discounted expected future gross premiums (at original discount rate)$15,027,611 $0 
Discounted expected future gross premiums (at current discount rate)$14,748,999 $0 
Undiscounted expected future benefits and expenses$29,118,532 $332,902 
Weighted-average duration of the liability in years (at original discount rate)107
Weighted-average duration of the liability in years (at current discount rate)106
Weighted-average interest rate (at original discount rate)5.17 %3.70 %
Weighted-average interest rate (at current discount rate)4.99 %4.95 %
For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2.
For non-participating traditional and limited-payment products, if a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for the present value of expected future policy benefits and non-level claim settlement expenses, then the liability for future policy benefits is adjusted at that time, and thereafter such that all changes, both favorable and unfavorable, in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately as a gain or loss, respectively.

In 2025, there was an immaterial impact to net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts.

In 2024, there was a $29 million gain in net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, which was offset by a $28 million charge, reflecting the impact of ceded reinsurance on the affected cohorts.

In 2023, there was a $31 million gain in net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, which was offset by a $30 million charge, reflecting the impact of ceded reinsurance on the affected cohorts.

B-74
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Deferred Profit Liability

The balances of and changes in DPL for the years ended December 31, are as follows:

202520242023
Fixed Annuities
(in thousands)
Balance, beginning of period, post-flooring$22,939 $14,818 $18,193 
Effect of assumption update(21)2,110 0 
Effect of actual variances from expected experience and other activity(2,280)580 (6,978)
Adjusted balance, beginning of period20,638 17,508 11,215 
Profits deferred4,826 7,070 5,191 
Interest accrual974 729 552 
Amortization(3,052)(2,345)(2,129)
Other adjustments(12)(23)(11)
Balance, end of period, post-flooring23,374 22,939 14,818 
Less: Reinsurance recoverables2,226 1,513 1,365 
Balance after reinsurance recoverables, end of period$21,148 $21,426 $13,453 
    
Additional Insurance Reserves

AIR represents the additional liability for annuitization, death, or other insurance benefits, including guaranteed minimum death benefits ("GMDB") and guaranteed lifetime withdrawal benefit ("GLWB") contract features, that are above and beyond the contractholder's account balance for certain long-duration life and annuity contracts.

The following table shows a rollforward of AIR balances for variable and universal life and fixed annuities products, for the periods indicated, along with a reconciliation to the Company's total AIR balance:
Year Ended December 31, 2025
Variable / Universal LifeFixed AnnuitiesTotal
(in thousands)
Balance, including amounts in AOCI, beginning of period, post-flooring$16,351,052 $0 $16,351,052 
Flooring impact and amounts in AOCI617,186 0 617,186 
Balance, excluding amounts in AOCI, beginning of period, pre-flooring16,968,238 0 16,968,238 
Effect of assumption update(41,977)0 (41,977)
Effect of actual variances from expected experience and other activity180,041 70,226 250,267 
Adjusted balance, beginning of period17,106,302 70,226 17,176,528 
Assessments collected(1)1,196,649 68,398 1,265,047 
Interest accrual593,950 2,262 596,212 
Benefits paid(377,813)0 (377,813)
Other adjustments(2)430,761 0 430,761 
Balance, excluding amounts in AOCI, end of period, pre-flooring18,949,849 140,886 19,090,735 
Flooring impact and amounts in AOCI(430,105)(2,011)(432,116)
Balance, including amounts in AOCI, end of period, post-flooring18,519,744 138,875 18,658,619 
Less: Reinsurance recoverables18,257,481 0 18,257,481 
Balance after reinsurance recoverables, including amounts in AOCI, end of period$262,263 $138,875 401,138 
Other7,391 
Total balance after reinsurance recoverables$408,529 
B-75
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Year Ended December 31, 2024
Variable / Universal LifeFixed AnnuitiesTotal
(in thousands)
Balance, including amounts in AOCI, beginning of period, post-flooring$14,280,792 $0 $14,280,792 
Flooring impact and amounts in AOCI831,583 0 831,583 
Balance, excluding amounts in AOCI, beginning of period, pre-flooring15,112,375 0 15,112,375 
Effect of assumption update154,058 0 154,058 
Effect of actual variances from expected experience and other activity265,684 0 265,684 
Adjusted balance, beginning of period15,532,117 0 15,532,117 
Assessments collected(1)1,242,684 0 1,242,684 
Interest accrual536,678 0 536,678 
Benefits paid(343,241)0 (343,241)
Balance, excluding amounts in AOCI, end of period, pre-flooring16,968,238 0 16,968,238 
Flooring impact and amounts in AOCI(617,186)0 (617,186)
Balance, including amounts in AOCI, end of period, post-flooring16,351,052 0 16,351,052 
Less: Reinsurance recoverables16,129,846 0 16,129,846 
Balance after reinsurance recoverables, including amounts in AOCI, end of period$221,206 $0 221,206 
Other0 
Total balance after reinsurance recoverables$221,206 

Year Ended December 31, 2023
Variable / Universal LifeFixed AnnuitiesTotal
(in thousands)
Balance, including amounts in AOCI, beginning of period, post-flooring$12,664,445 $0 $12,664,445 
Flooring impact and amounts in AOCI1,269,236 0 1,269,236 
Balance, excluding amounts in AOCI, beginning of period, pre-flooring13,933,681 0 13,933,681 
Effect of assumption update22,910 0 22,910 
Effect of actual variances from expected experience and other activity34,021 0 34,021 
Adjusted balance, beginning of period13,990,612 0 13,990,612 
Assessments collected(1)929,709 0 929,709 
Interest accrual486,253 0 486,253 
Benefits paid(294,199)0 (294,199)
Balance, excluding amounts in AOCI, end of period, pre-flooring15,112,375 0 15,112,375 
Flooring impact and amounts in AOCI(831,583)0 (831,583)
Balance, including amounts in AOCI, end of period, post-flooring14,280,792 0 14,280,792 
Less: Reinsurance recoverables14,054,600 0 14,054,600 
Balance after reinsurance recoverables, including amounts in AOCI, end of period$226,192 $0 226,192 
Other0 
Total balance after reinsurance recoverables$226,192 
(1)     Represents the portion of gross assessments required to fund the future policy benefits.
(2)     Includes the impact of recognizing the recapture of certain YRT transactions from Prudential Insurance effective October 1, 2025. See Note 12 for additional information.

B-76
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Year Ended December 31, 2025
Variable / Universal LifeFixed Annuities
Weighted-average duration of the liability in years (at original discount rate)2121
Weighted-average interest rate (at original discount rate)3.34 %2.71 %

Year Ended December 31, 2024
Variable / Universal LifeFixed Annuities
Weighted-average duration of the liability in years (at original discount rate)22N/A
Weighted-average interest rate (at original discount rate)3.33 %N/A

Year Ended December 31, 2023
Variable / Universal LifeFixed Annuities
Weighted-average duration of the liability in years (at original discount rate)22N/A
Weighted-average interest rate (at original discount rate)3.39 %N/A


Future Policy Benefits Reconciliation

The following table presents the reconciliation of the ending balances from the above rollforwards, benefit reserves, DPL, and AIR, including other liabilities, gross of related reinsurance recoverables, to the total liability for future policy benefits as reported on the Company's Consolidated Statements of Financial Position for the years ended December 31,:
202520242023
(in thousands)
Benefit reserves, end of period, post-flooring$8,225,913 $7,512,826 $7,727,206 
Deferred profit liability, end of period, post-flooring23,374 22,939 14,818 
Additional insurance reserves, including amounts in AOCI, end of period, post-flooring18,658,619 16,351,052 14,280,792 
Subtotal of amounts disclosed above26,907,906 23,886,817 22,022,816 
Other Future policy benefits reserves(1)1,322,192 1,226,950 1,182,389 
Total Future policy benefits$28,230,098 $25,113,767 $23,205,205 
(1)Primarily represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities.


Revenue and Interest Expense

The following tables present revenue and interest expense related to benefit reserves, DPL, and AIR, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Consolidated Statement of Operations for the periods indicated:

Year Ended December 31, 2025
Revenues(1)
Term LifeVariable / Universal LifeFixed AnnuitiesTotal
(in thousands)
Benefit reserves$1,815,456 $0 $48,938 $1,864,394 
Deferred profit liability0 0 (436)(436)
Additional insurance reserves0 1,765,102 43,484 1,808,586 
Total$1,815,456 $1,765,102 $91,986 $3,672,544 

B-77
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Year Ended December 31, 2024
Revenues(1)
Term LifeVariable / Universal LifeFixed AnnuitiesTotal
(in thousands)
Benefit reserves$1,833,017 $0 $43,092 $1,876,109 
Deferred profit liability0 0 (8,121)(8,121)
Additional insurance reserves0 2,050,441 0 2,050,441 
Total$1,833,017 $2,050,441 $34,971 $3,918,429 

Year Ended December 31, 2023
Revenues(1)
Term LifeVariable / Universal LifeFixed AnnuitiesTotal
(in thousands)
Benefit reserves$1,804,955 $0 $41,111 $1,846,066 
Deferred profit liability0 0 3,375 3,375 
Additional insurance reserves0 1,405,696 0 1,405,696 
Total$1,804,955 $1,405,696 $44,486 $3,255,137 
(1)Represents gross premiums for benefit reserves; revenue for DPL and gross assessments for AIR.


B-78
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Year Ended December 31, 2025
Interest Expense
Term LifeVariable / Universal LifeFixed AnnuitiesTotal
(in thousands)
Benefit reserves$391,432 $0 $10,656 $402,088 
Deferred profit liability0 0 974 974 
Additional insurance reserves0 593,950 2,261 596,211 
Total$391,432 $593,950 $13,891 $999,273 

Year Ended December 31, 2024
Interest Expense
Term LifeVariable / Universal LifeFixed AnnuitiesTotal
(in thousands)
Benefit reserves$382,165 $0 $9,119 $391,284 
Deferred profit liability0 0 729 729 
Additional insurance reserves0 536,678 0 536,678 
Total$382,165 $536,678 $9,848 $928,691 

Year Ended December 31, 2023
Interest Expense
Term LifeVariable / Universal LifeFixed AnnuitiesTotal
(in thousands)
Benefit reserves$373,845 $0 $8,440 $382,285 
Deferred profit liability0 0 552 552 
Additional insurance reserves0 486,253 0 486,253 
Total$373,845 $486,253 $8,992 $869,090 

B-79
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
10. POLICYHOLDERS' ACCOUNT BALANCES

The balances of and changes in policyholders' account balances as of and for the periods ended are as follows:

Year Ended December 31, 2025
Fixed
Annuities		Variable AnnuitiesVariable / Universal LifeTotal
($ in thousands)
Balance, beginning of period$11,197,337 $33,217,331 $20,691,139 $65,105,807 
Deposits5,877,276 7,229,457 2,464,812 15,571,545 
Interest credited371,237 700,947 405,205 1,477,389 
Policy charges(53,687)(74,755)(1,852,624)(1,981,066)
Surrenders and withdrawals(932,262)(1,129,264)(1,085,963)(3,147,489)
Benefit payments(112,631)(23,656)(112,991)(249,278)
Net transfers (to) from separate account0 (9,237)551,221 541,984 
Change in market value and other adjustments(1)266,360 3,301,161 530,988 4,098,509 
Balance, end of period$16,613,630 $43,211,984 $21,591,787 $81,417,401 
Unearned revenue reserve5,064,778 
Other110,786 
Total Policyholders' account balance$86,592,965 
Weighted-average crediting rate2.67 %1.83 %1.92 %2.02 %
Net amount at risk(3)$1 $0 $366,953,069 $366,953,070 
Cash surrender value(4)$15,072,015 $41,954,173 $17,937,783 $74,963,971 

B-80
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)

Year Ended December 31, 2024
Fixed
Annuities		Variable AnnuitiesVariable / Universal LifeTotal
($ in thousands)
Balance, beginning of period$6,164,313 $22,810,665 $20,167,713 $49,142,691 
Deposits5,215,817 8,315,212 2,157,575 15,688,604 
Interest credited222,516 516,018 570,988 1,309,522 
Policy charges(5,290)(32,987)(1,831,168)(1,869,445)
Surrenders and withdrawals(554,653)(782,216)(778,928)(2,115,797)
Benefit payments(55,956)(30,427)(70,363)(156,746)
Net transfers (to) from separate account0 100,193 380,869 481,062 
Change in market value and other adjustments(1)210,590 2,320,873 94,453 2,625,916 
Balance, end of period$11,197,337 $33,217,331 $20,691,139 $65,105,807 
Unearned revenue reserve4,415,187 
Other107,324 
Total Policyholders' account balance$69,628,318 
Weighted-average crediting rate2.56 %1.72 %2.79 %2.23 %
Net amount at risk(3)$11 $0 $345,969,571 $345,969,582 
Cash surrender value(4)$9,863,990 $31,516,776 $19,391,617 $60,772,383 

Year Ended December 31, 2023
Fixed
Annuities		Variable AnnuitiesVariable / Universal LifeTotal
($ in thousands)
Balance, beginning of period$3,575,823 $16,432,032 $18,736,365 $38,744,220 
Deposits2,612,775 4,633,727 2,117,153 9,363,655 
Interest credited101,192 243,908 556,057 901,157 
Policy charges(8,438)(23,368)(1,810,644)(1,842,450)
Surrenders and withdrawals(229,843)(516,039)(845,436)(1,591,318)
Benefit payments(50,522)(30,461)(83,409)(164,392)
Net transfers (to) from separate account(2)0 15,121 1,175,575 1,190,696 
Change in market value and other adjustments(1)163,326 2,055,745 322,052 2,541,123 
Balance, end of period$6,164,313 $22,810,665 $20,167,713 $49,142,691 
Unearned revenue reserve3,741,426 
Other102,583 
Total Policyholders' account balance$52,986,700 
Weighted-average crediting rate2.08 %1.40 %2.86 %2.12 %
Net amount at risk(3)$15 $0 $323,508,432 $323,508,447 
Cash surrender value(4)$5,307,537 $20,490,433 $18,676,852 $44,474,822 
(1)    Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products.
(2)    Variable life includes $900 million of funding for a policy loan to an affiliated irrevocable trust. See Note 16 for additional information.
(3)    The net amount at risk calculation includes both general and separate account balances.
(4)    Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges.

The Company issues variable life and universal life insurance contracts which may also include a “no-lapse guarantee” where the Company contractually guarantees to the contractholder a death benefit even when the account value drops to zero, as long as the “no-lapse guarantee” premium is paid.

B-81
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
The net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including contractholder mortality, contract lapses, and premium pattern, as well as interest rate and equity market returns.

The Company also issues annuity contracts that provide certain death benefit and/or living benefit guarantees and are accounted for as MRBs. See Note 11 for additional information, including the net amount at risk associated with these guarantees.

The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points ("bps"), between rates being credited to policyholders and the respective guaranteed minimums are as follows:

December 31, 2025
Range of Guaranteed Minimum
Crediting Rate(1)		At guaranteed minimum
1 - 50 bps above guaranteed minimum
51 - 150 bps above guaranteed minimum
Greater than 150 bps above guaranteed minimum
Total
(in thousands)
Fixed Annuities
Less than 1.00%
$2,772 $6,838 $28,283 $1,743,492 $1,781,385 
1.00% - 1.99%
368,54643,071167,83345,496624,946
2.00% - 2.99%
348,8061,458,294542,95714,8292,364,886
3.00% - 4.00%
2,861,9515,50411,4682,6272,881,550
Greater than 4.00%
00000
Total$3,582,075 $1,513,707 $750,541 $1,806,444 $7,652,767 
Variable Annuities
Less than 1.00%
$421,525 $119,969 $331,807 $124 $873,425 
1.00% - 1.99%
79,576431,9364940512,006
2.00% - 2.99%
15,5866,2513,931025,768
3.00% - 4.00%
709,665000709,665
Greater than 4.00%
1,2620001,262
Total$1,227,614 $558,156 $336,232 $124 $2,122,126 
Variable / Universal Life
Less than 1.00%
$0 $0 $0 $210,112 $210,112 
1.00% - 1.99%
387,03501,863,0911,746,6313,996,757
2.00% - 2.99%
37,1071,601,0672,681,677538,0404,857,891
3.00% - 4.00%
3,631,9461,696,5571,105,32006,433,823
Greater than 4.00%
2,044,6650002,044,665
Total$6,100,753 $3,297,624 $5,650,088 $2,494,783 $17,543,248 

B-82
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
December 31, 2024
Range of Guaranteed Minimum
Crediting Rate(1)		At guaranteed minimum
1 - 50 bps above guaranteed minimum
51 - 150 bps above guaranteed minimum
Greater than 150 bps above guaranteed minimum
Total
(in thousands)
Fixed Annuities
Less than 1.00%
$249 $3,103 $11,939 $1,021,834 $1,037,125 
1.00% - 1.99%
430,477 62,519 172,877 68,973 734,846 
2.00% - 2.99%
302,520 459,748 557,349 15,794 1,335,411 
3.00% - 4.00%
1,894,646 6,114 10,896 3,219 1,914,875 
Greater than 4.00%
0 0000
Total$2,627,892 $531,484 $753,061 $1,109,820 $5,022,257 
Variable Annuities
Less than 1.00%
$128,748 $502,988 $647,480 $182 $1,279,398 
1.00% - 1.99%
121,336 294,635 2,494 0418,465 
2.00% - 2.99%
17,039 3,829 4,162 025,030 
3.00% - 4.00%
819,316 1,860 00821,176 
Greater than 4.00%
1,978 0001,978 
Total$1,088,417 $803,312 $654,136 $182 $2,546,047 
Variable / Universal Life
Less than 1.00%
$3,167 $0 $0 $177,213 $180,380 
1.00% - 1.99%
289,677 0 1,849,854 1,513,273 3,652,804 
2.00% - 2.99%
30,500 1,535,762 2,695,823 390,117 4,652,202 
3.00% - 4.00%
4,149,638 1,716,374 1,082,026 0 6,948,038 
Greater than 4.00%
2,095,235 0002,095,235 
Total$6,568,217 $3,252,136 $5,627,703 $2,080,603 $17,528,659 


B-83
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
December 31, 2023
Range of Guaranteed Minimum
Crediting Rate(1)		At guaranteed minimum
1 - 50 bps above guaranteed minimum
51 - 150 bps above guaranteed minimum
Greater than 150 bps above guaranteed minimum
Total
(in thousands)
Fixed Annuities
Less than 1.00%
$105 $337 $994 $117,377 $118,813 
1.00% - 1.99%
487,191 73,393 234,487 79,713 874,784 
2.00% - 2.99%
301,132 469,276 562,347 16,881 1,349,636 
3.00% - 4.00%
29,131 0 0 0 29,131 
Greater than 4.00%
0 0 0 0 0 
Total$817,559 $543,006 $797,828 $213,971 $2,372,364 
Variable Annuities
Less than 1.00%
$908,097 $807,460 $18,083 $2 $1,733,642 
1.00% - 1.99%
214,377 2,061 1,060 0217,498 
2.00% - 2.99%
23,323 4,071 4,135 031,529 
3.00% - 4.00%
903,953 9,245 330913,231 
Greater than 4.00%
2,046 0002,046 
Total$2,051,796 $822,837 $23,311 $2 $2,897,946 
Variable / Universal Life
Less than 1.00%
$0 $0 $0 $196,692 $196,692 
1.00% - 1.99%
201,121 0 2,588,458 528,155 3,317,734 
2.00% - 2.99%
28,061 1,445,439 2,789,520 260,651 4,523,671 
3.00% - 4.00%
3,956,631 2,217,133 1,107,726 07,281,490 
Greater than 4.00%
2,136,137 0002,136,137 
Total$6,321,950 $3,662,572 $6,485,704 $985,498 $17,455,724 
(1)     Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options.

Unearned Revenue Reserve

The balances of and changes in URR as of and for the periods ended are as follows:

Years Ended December 31,
202520242023
Variable / Universal Life
(in thousands)
Balance, beginning of period$4,415,187 $3,741,426 $3,067,336 
Unearned revenue853,071859,231 827,960
Amortization expense(203,506)(185,468)(153,779)
Other adjustments26 (2)(91)
Balance, end of period$5,064,778 $4,415,187 $3,741,426 



B-84
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
11. MARKET RISK BENEFITS

The following tables show a rollforward of MRB balances for variable and fixed annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates:
Year Ended December 31, 2025
Variable AnnuitiesFixed AnnuitiesLess: Reinsured Market Risk BenefitsTotal, Net of Reinsurance
(in thousands)
Balance, beginning of period$2,488,463 $0 $(844,582)$1,643,881 
Effect of cumulative changes in non-performance risk626,845 0 0 626,845 
Balance, beginning of period, before effect of changes in non-performance risk3,115,308 0 (844,582)2,270,726 
Attributed fees collected1,008,519 19,936 (232,779)795,676 
Claims paid(53,926)0 5,400 (48,526)
Interest accrual168,951 4,611 (50,303)123,259 
Actual in force different from expected63,484 (1,554)(19,029)42,901 
Effect of changes in interest rates(267,183)(34,582)79,628 (222,137)
Effect of changes in equity markets(1,128,930)(12,609)118,797 (1,022,742)
Effect of assumption update and other refinements120,191 151,000 (23,026)248,165 
Issuances57,950 28,494 (6,074)80,370 
Other adjustments29,602 11,615 (22,568)18,649 
Effect of changes in current period counterparty non-performance risk0 0 (18,039)(18,039)
Balance, end of period, before effect of changes in non-performance risk3,113,966 166,911 (1,012,575)2,268,302 
Effect of cumulative changes in non-performance risk(451,282)9,531 0 (441,751)
Balance, end of period$2,662,684 $176,442 $(1,012,575)$1,826,551 

B-85
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Year Ended December 31, 2024
Variable AnnuitiesFixed AnnuitiesLess: Reinsured Market Risk BenefitsTotal, Net of Reinsurance
(in thousands)
Balance, beginning of period$3,707,407 $0 $(917,792)$2,789,615 
Effect of cumulative changes in non-performance risk1,067,983 0 0 1,067,983 
Balance, beginning of period, before effect of changes in non-performance risk4,775,390 0 (917,792)3,857,598 
Attributed fees collected1,095,139 0 (259,099)836,040 
Claims paid(57,083)0 5,669 (51,414)
Interest accrual226,734 0 (56,043)170,691 
Actual in force different from expected49,864 0 (21,062)28,802 
Effect of changes in interest rates(1,436,230)0 277,354 (1,158,876)
Effect of changes in equity markets(1,660,907)0 177,329 (1,483,578)
Effect of assumption update and other refinements(1)82,619 0 3,984 86,603 
Issuances70,965 0 (5,019)65,946 
Other adjustments(1)(31,183)0 11,566 (19,617)
Effect of changes in current period counterparty non-performance risk0 0 (61,469)(61,469)
Balance, end of period, before effect of changes in non-performance risk3,115,308 0 (844,582)2,270,726 
Effect of cumulative changes in non-performance risk(626,845)0 0 (626,845)
Balance, end of period$2,488,463 $0 $(844,582)$1,643,881 

B-86
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)

Year Ended December 31, 2023
Variable AnnuitiesFixed AnnuitiesLess: Reinsured Market Risk BenefitsTotal, Net of Reinsurance
(in thousands)
Balance, beginning of period$4,550,625 $0 $(422,261)$4,128,364 
Effect of cumulative changes in non-performance risk1,727,910 0 0 1,727,910 
Balance, beginning of period, before effect of changes in non-performance risk6,278,535 0 (422,261)5,856,274 
Attributed fees collected1,158,879 0 (246,747)912,132 
Claims paid(85,898)0 9,952 (75,946)
Interest accrual293,205 0 (53,016)240,189 
Actual in force different from expected79,030 0 (13,338)65,692 
Effect of changes in interest rates(1,438,873)0 455,062 (983,811)
Effect of changes in equity markets(1,845,207)0 180,953 (1,664,254)
Effect of assumption update and other refinements(1)235,543 0 (54,067)181,476 
Issuances29,433 0 7,680 37,113 
Other adjustments(1)(2)70,743 0 (635,011)(564,268)
Effect of changes in current period counterparty non-performance risk0 0 (146,999)(146,999)
Balance, end of period, before effect of changes in non-performance risk4,775,390 0 (917,792)3,857,598 
Effect of cumulative changes in non-performance risk(1,067,983)0 0 (1,067,983)
Balance, end of period$3,707,407 $0 $(917,792)$2,789,615 
(1)     Prior period amounts have been updated to conform to current presentation.
(2) Other adjustments for December 31, 2023 primarily includes $638 million related to the reinsurance transaction with AuguStar. See Note 12 for additional information.
    
In 2025, 2024, and 2023, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed MRBs, primarily due to updates to policyholder behavior assumptions.

The Company issues certain variable annuity insurance contracts where the Company contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return, and/or (2) the highest anniversary contract value on a specified date adjusted for any withdrawals. These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods.

The Company also issues indexed annuity contracts for which the return is tied to the return of specific indices where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals upon death. In certain of these indexed annuity contracts, the Company also contractually guarantees to the contractholder withdrawal benefits payable during specific periods.

For guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality.

For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality.
B-87
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)

For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance.

For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior.

The following tables present accompanying information to the rollforward table above.
December 31, 2025
Variable AnnuitiesFixed Annuities
($ in thousands)
Net amount at risk(1)$7,619,998 $513,514 
Weighted-average attained age of contractholders7268
December 31, 2024
Variable AnnuitiesFixed Annuities
($ in thousands)
Net amount at risk(1)$8,722,499 N/A
Weighted-average attained age of contractholders71N/A
December 31, 2023
Variable AnnuitiesFixed Annuities
($ in thousands)
Net amount at risk(1)$9,041,651 N/A
Weighted-average attained age of contractholders70N/A
(1)     For contracts with multiple benefit features, the highest net amount at risk for each contract is included.

The tables below reconciles MRB asset and liability positions as of the following dates:

December 31, 2025
Variable AnnuitiesFixed AnnuitiesTotal
(in thousands)
Direct and assumed$1,373,383 $2,890 $1,376,273 
Ceded1,279,593 0 1,279,593 
Total market risk benefit assets$2,652,976 $2,890 $2,655,866 
Direct and assumed$4,036,066 $179,332 $4,215,398 
Ceded267,019 0 267,019 
Total market risk benefit liabilities$4,303,085 $179,332 $4,482,417 
Net liability$1,650,109 $176,442 $1,826,551 
B-88
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
December 31, 2024
Variable AnnuitiesFixed AnnuitiesTotal
(in thousands)
Direct and assumed$1,492,186 $0 $1,492,186 
Ceded1,145,177 0 1,145,177 
Total market risk benefit assets$2,637,363 $0 $2,637,363 
Direct and assumed$3,980,650 $0 $3,980,650 
Ceded300,594 0 300,594 
Total market risk benefit liabilities$4,281,244 $0 $4,281,244 
Net liability$1,643,881 $0 $1,643,881 
December 31, 2023
Variable AnnuitiesFixed AnnuitiesTotal
(in thousands)
Direct and assumed$1,201,945 $0 $1,201,945 
Ceded1,165,298 0 1,165,298 
Total market risk benefit assets$2,367,243 $0 $2,367,243 
Direct and assumed$4,909,352 $0 $4,909,352 
Ceded247,506 0 247,506 
Total market risk benefit liabilities$5,156,858 $0 $5,156,858 
Net liability$2,789,615 $0 $2,789,615 

B-89
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
12. REINSURANCE
The Company participates in reinsurance with its affiliates Prudential Arizona Reinsurance Captive Company (“PARCC”), PAR U, PURE, Lotus Reinsurance Company Ltd. (“Lotus Re”), The Prudential Life Insurance Company, Ltd. (“Prudential of Japan”), prior to January 1, 2024 with its affiliates Prudential Universal Reinsurance Company (“PURC”) and Gibraltar Universal Life Reinsurance Company (“GUL Re”), and prior to October 1, 2024 with its affiliates Prudential Arizona Reinsurance Term Company (“PAR Term”), Prudential Term Reinsurance Company (“Term Re”) and Dryden Arizona Reinsurance Term Company (“DART”). 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.
Effective October 2024, the Company entered into an agreement with Wilton Reassurance Company and Wilton Reinsurance Bermuda Limited (collectively, “Wilton Re”) to coinsure a closed block of guaranteed universal life (“GUL”) policies, resulting in a DRL of $979 million. To effectuate this transaction the Company recaptured all risks associated with the subject GUL policies from PAR U and subsequently established YRT reinsurance for the subject GUL business with Prudential Insurance. As a result of these transactions, the Company recognized a $270 million pre-tax recapture gain and a $798 million DRG, respectively. The DRL and DRG are amortized into income over the remaining life of the reinsured policies. Effective October 1, 2025, the Company recaptured the YRT treaties with Prudential Insurance and subsequently established YRT reinsurance for the business with third-party reinsurers. The Company immediately recognized a $768 million gain from the recognition of the existing DRG from the previous YRT transaction with Prudential Insurance.

Effective January 2024, the Company entered into an agreement with Somerset Reinsurance Ltd. (“Somerset Re”) to coinsure a closed block of 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 these transactions, the Company recognized a $990 million pre-tax recapture loss and a $1,207 million DRG, respectively. The DRG is amortized into income over the estimated remaining life of the reinsured policies. Effective October 1, 2025, the Company recaptured certain YRT treaties with Prudential Insurance and subsequently established YRT reinsurance for the business with third-party reinsurers. The Company immediately recognized a $629 million gain from the recognition of the existing DRG from the previous YRT transaction with Prudential Insurance.
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 “Reinsurance recoverables and deposit receivables” and the corresponding funds withheld liability for assets retained under these reinsurance agreements are recorded within “Reinsurance and funds withheld payables”. Balances associated with these agreements are included in the tables below.
“Change in value of market risk benefits, net of related hedging gains (losses)” includes 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 MRBs and have been accounted for in the same manner.




B-90
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Reinsurance amounts included in the Company’s Consolidated Statements of Financial Position as of December 31, were as follows:
20252024
 (in thousands)
Reinsurance recoverables and deposit receivables$54,370,370 $48,247,817 
Policy loans(1,174,371)(1,143,726)
Deferred policy acquisition costs(3,202,535)(3,319,067)
Deferred sales inducements(30,203)(32,573)
Market risk benefit assets1,280,120 1,145,580 
Other assets1,515,354 1,538,231 
Policyholders’ account balances5,124,249 5,567,661 
Future policy benefits8,984,370 7,443,997 
Market risk benefit liabilities267,981 302,310 
Reinsurance and funds withheld payables11,377,505 8,611,141 
Other liabilities1,780,787 3,282,713 
Unaffiliated reinsurance amounts included in the table above and in the Company's Consolidated Statements of Financial Position as of December 31, were as follows:
20252024
(in thousands)
Policy loans$(50,877)$(48,644)
Deferred policy acquisition costs(659,377)(637,555)
Market risk benefit assets927,836 804,015 
Other assets1,052,840 1,118,974 
Policyholders’ account balances1,499,098 1,665,998 
Future policy benefits(14,427)160 
Market risk benefit liabilities124,638 151,432 
Reinsurance and funds withheld payables9,194,564 3,360,901 
Other liabilities251,136 257,929 










B-91
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Reinsurance recoverables and deposit receivables by counterparty as of December 31, were as follows:
20252024
 (in thousands)
Affiliated:
     PAR U$11,617,403 $11,426,975 
     PURE8,192,212 7,951,965 
     PARCC7,021,834 7,049,164 
     Lotus Re3,380,675 2,130,095 
     Prudential Insurance2,810,762 7,507,414 
     Prudential of Japan13,237 0 
     Total affiliated33,036,123 36,065,613 
Unaffiliated:
     Wilton Re8,013,159 7,478,467 
     Somerset Re2,490,716 2,581,977 
     FLIAC1,351,271 1,395,008 
     Resolution Re849,213 0 
     Prismic Re327,763 0 
     Other(1)8,302,125 726,752 
     Total unaffiliated21,334,247 12,182,204 
Total reinsurance recoverables and deposit receivables$54,370,370 $48,247,817 
(1) Four major reinsurance companies account for approximately 56% of Other as of December 31, 2025.

Reinsurance amounts, included in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, were as follows:

202520242023
 (in thousands)
Premiums:
Direct$1,874,352 $1,846,109 $1,853,184 
Assumed271,129 92 (61)
Ceded(1,598,280)(1,453,074)(1,524,226)
Net premiums$547,201 $393,127 $328,897 
Policy charges and fee income:
Direct$3,224,720 $3,190,753 $2,995,595 
Assumed808,083 899,767 604,311 
Ceded(2,325,465)3,292,277 (2,063,300)
Net policy charges and fee income$1,707,338 $7,382,797 $1,536,606 

B-92
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
202520242023
 (in thousands)
Net investment income:
Direct$3,262,367 $2,474,541 $1,700,684 
Assumed1,294 1,325 1,364 
Ceded(53,139)(53,849)(26,526)
Net investment income(1)$3,210,522 $2,422,017 $1,675,522 
Asset administration fees:
Direct$315,865 $329,181 $323,444 
Ceded(110,533)(105,618)(90,494)
Net asset administration fees$205,332 $223,563 $232,950 
Other income (loss):
Direct$594,774 $297,868 $636,930 
Assumed752 2,983 (475)
Ceded1,666,250 458,905 114,908 
Net other income (loss)(1)$2,261,776 $759,756 $751,363 
Realized investment gains (losses), net:
Direct$(1,207,587)$500,023 $(1,203,453)
Assumed46,559 85,248 162,291 
Ceded(269,397)(133,854)(105,937)
Realized investment gains (losses), net(1)$(1,430,425)$451,417 $(1,147,099)
Change in value of market risk benefits, net of related hedging gains (losses):
Direct$(433,206)$(98,562)$287,936 
Assumed958 2,626 (4,115)
Ceded(74,746)(338,019)(390,594)
Net change in value of market risk benefits, net of related hedging gains (losses)$(506,994)$(433,955)$(106,773)
Policyholders’ benefits (including change in reserves):
Direct$4,242,114 $3,825,305 $3,354,306 
Assumed1,310,907 1,058,315 1,258,651 
Ceded(4,773,299)3,468,713 (4,109,168)
Net policyholders’ benefits (including change in reserves)(1)$779,722 $8,352,333 $503,789 
Change in estimates of liability for future policy benefits:
Direct$(97,867)$303,141 $(18,361)
Assumed(39,222)92,766 8,644 
Ceded57,584 (416,550)13,669 
Net change in estimates of liability for future policy benefits$(79,505)$(20,643)$3,952 
Interest credited to policyholders’ account balances:
Direct$1,485,366 $1,310,867 $884,527 
Assumed130,432 153,052 136,725 
Ceded(438,138)(426,188)(399,607)
Net interest credited to policyholders’ account balances$1,177,660 $1,037,731 $621,645 
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization$(388,473)$(1,398,843)$(403,517)
(1)Amounts include reinsurance agreements using the deposit method of accounting.
B-93
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Unaffiliated reinsurance assumed and ceded amounts included in the table above and in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, were as follows:

202520242023
(in thousands)
Premiums:
Assumed$104 $89 $(69)
Ceded(349,326)(107,449)(70,169)
Policy charges and fee income:
Assumed1,379 1,381 1,563 
Ceded(5,208,556)(191,368)(143,764)
Net investment income(1):
Ceded(1,668)(1,659)23,023 
Asset administration fees:
Ceded(25,093)(28,354)(22,415)
Other income (loss)(1):
Assumed26 2,983 (475)
Ceded168,056 142,267 44,260 
Realized investment gains (losses), net(1):
Assumed46,559 85,248 162,291 
Ceded(179,100)(91,712)(101,449)
Change in value of market risk benefits, net of related hedging gains (losses):
Assumed958 2,626 (4,115)
Ceded6,482 (124,816)(186,996)
Policyholders' benefits (including change in reserves)(1):
Assumed(14,561)348 804 
Ceded(7,776,099)(366,669)(157,344)
Change in estimates of liability for future policy benefits:
Assumed1,464 0 0 
Ceded(20,592)96,014 (1,367)
Interest credited to policyholders' account balances:
Assumed25,705 39,263 16,243 
Ceded(99,881)(24,550)0 
(1)Amounts include reinsurance agreements using the deposit method of accounting.

B-94
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
The gross and net amounts of life insurance face amount in force as of December 31, were as follows:
202520242023
 (in thousands)
Direct gross life insurance face amount in force$1,590,247,115 $1,181,531,932 $1,127,561,798 
Assumed gross life insurance face amount in force40,086,143 34,530,341 35,558,423 
Reinsurance ceded(1,450,508,310)(1,080,451,145)(1,027,473,705)
Net life insurance face amount in force$179,824,948 $135,611,128 $135,646,516 
Significant Affiliated Reinsurance Agreements
PAR U
Pruco Life reinsures 70% of 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 July 1, 2012, PLNJ reinsures 95% of 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.
On January 2, 2013, Pruco Life began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Life Business. The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U.
Effective January 1, 2024, Pruco Life recaptured the policies equal to 70% of 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.
Effective January 1, 2024, PLNJ recaptured the policies previously reinsured by PAR U with effective dates prior to January 1, 2015. Effective January 1, 2024, PLNJ reinsures 100% of the risks associated with universal life policies, with effective dates from January 1, 2015 to December 31, 2019.
Effective October 1, 2024, Pruco Life recaptured the remaining portion of the policies equal to 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. As a result of the recapture, the Company recognized a $270 million pre-tax recapture gain, as discussed above, which includes the recognition of a prior $94 million DRG related to the previous reinsurance agreement. Following the result of this recapture, Pruco Life only cedes the GUL business in connection with the Hartford Life Business to PAR U as of December 31, 2024.
Effective October 1, 2024, PLNJ recaptured 100% of the risks associated with the remaining universal life policies, with effective dates from January 1, 2015 to December 31, 2019. As a result of the recapture, the Company recognized a $29 million pre-tax recapture loss which is part of the $270 million pre-tax recapture gain discussed above. The loss includes the recognition of a prior $8 million DRG related to the previous reinsurance agreement. Following the result of this recapture, PLNJ no longer cedes to PAR U as of December 31, 2024.
On March 28, 2024, PURC and GUL Re merged into PAR U.
PURE
Effective January 1, 2024, Pruco Life reinsures 75% of 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, 2015.
Effective January 1, 2024, PLNJ reinsures 100% of 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, 2015.



B-95
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
PURC
Pruco Life reinsures 70% of the risks associated with its 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 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.
Effective January 1, 2024, the Company recaptured the policies previously reinsured by PURC. As a result of the recapture, the Company recorded a write-off of $116 million of DRG that was recognized with the previous reinsurance agreement.
On March 28, 2024, PURC merged into PAR U.
PARCC
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 October 1, 2024, the Company revised the existing coinsurance terms with PARCC, increasing the quota share of reinsured policies to 100% which includes policies which were previously reinsured to PAR Term, Term Re and DART. As a result of the revised terms, the Company recognized a $351 million DRL that is amortized into income over the estimated remaining life of the reinsured policies.
On November 20, 2024, PAR Term, Term Re and DART merged into PARCC.
GUL Re
Effective January 1, 2017, Pruco Life entered into an automatic coinsurance agreement with GUL Re to reinsure 95% of 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.
Effective July 1, 2017, Pruco Life amended this agreement to include 30% of Universal Protector policies having no-lapse guarantees as well as certain other universal life policies with effective dates prior to January 1, 2014.
Effective January 1, 2024, the Company recaptured the policies previously reinsured by GUL Re.
On March 28, 2024, GUL Re merged into PAR U.
PAR Term
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.
On November 20, 2024, PAR Term merged into PARCC.
Term Re
The Company reinsures 95% of the risks under its term life insurance policies, with effective dates on or after January 1, 2014 through December 31, 2017, through an automatic coinsurance agreement with Term Re.

On November 20, 2024, Term Re merged into PARCC.
B-96
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Prudential Insurance
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. Effective October 1, 2024, the Company recaptured the term business from Prudential Insurance, and revised the existing coinsurance terms with PARCC to reflect revised quota share. As a result of the recapture, the Company recognized a $3 million pre-tax recapture loss. Additionally, effective October 1, 2024, the Company entered into a YRT reinsurance agreement with Prudential Insurance to reinsure the mortality risk of recaptured GUL policies from PAR U.

Effective October 1, 2025, Prudential Insurance novated several unaffiliated YRT treaties to Pruco Life. To effectuate the novation of YRT treaties, Pruco Life entered into certain new YRT pass-through agreements with Prudential Insurance and recaptured certain YRT treaties it had ceded to Prudential Insurance, including those related to reinsurance transactions effective January 2024 and October 2024 with Somerset Re and Wilton Re, respectively.
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.
The Company has reinsured a group annuity contract with Prudential Insurance, in consideration for a single premium payment by the Company, providing reinsurance equal to 100% of payments due under the contract.
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.
Lotus Re
Effective October 1, 2021, the Company entered into an automatic coinsurance agreement with Lotus Re to reinsure $32 million of liabilities associated with the risks associated with a portion of its variable life policies in the extended term policy status.
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 is 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 December 15, 2024, the Company entered into a reinsurance agreement with Lotus Re to cede 100% of the risks associated with certain fixed rated annuities and fixed indexed annuities contracts issued on or after the effective date of the agreement on a coinsurance basis. The deposit receivables were $1,311 million and $52 million as of December 31, 2025 and December 31, 2024, respectively.
B-97
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
DART
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.
On November 20, 2024, DART merged into PARCC.

Prudential of Japan
Effective January 2025, the Company entered into an agreement with Prudential of Japan to reinsure GMDB associated with yen-denominated variable whole life policies. As a result of this transaction, the Company assumed $5 million of GMDB liabilities and recognized a $14 million DRG at inception. The DRG is amortized into income over the estimated remaining life of the reinsured policies.
Significant Third-Party Reinsurance Arrangements
AuguStar Life Insurance Company (Formerly Known as The Ohio National Life Insurance Company)
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 MRBs. As a result of the transaction, the Company recognized a $277 million DRG at inception that is amortized into income over the estimated remaining life of the reinsured policies.
FLIAC
Effective December 1, 2021, the Company entered into a reinsurance agreement with Prudential Annuities Life Assurance Corporation (“PALAC”), a previously wholly-owned subsidiary of Prudential Financial sold in April 2022, and now known as 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 and deposit receivables” 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 the deposit method of 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. Reinsurance recoverables and deposit receivables were $1,351 million and $1,395 million as of December 31, 2025 and 2024, respectively.
Somerset Re
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 indexed 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 $2,491 million and $2,582 million at December 31, 2025 and 2024, respectively. The funds withheld payables totaled $2,602 million and $2,434 million at December 31, 2025 and 2024, respectively.
Union Hamilton
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 December 31, 2025, $1.6 billion of HDI v.3.0 account values are reinsured to Union Hamilton.
B-98
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Wilton Re
Effective October 1, 2024, the Company entered into a reinsurance agreement with Wilton Re to coinsure a closed block of GUL policies. Reinsurance recoverables were $8,013 million and $7,478 million as of December 31, 2025 and 2024, respectively.
Resolution Re
Effective July 1, 2025, the Company entered into a reinsurance agreement with Resolution Re, Ltd. ("Resolution Re") to cede risks associated with certain fixed rate annuity contracts and indexed annuity contracts issued on or after the effective date of the agreement on a quota share funds withheld basis. The deposit assets on reinsurance totaled $849 million at December 31, 2025. The funds withheld payables totaled $852 million at December 31, 2025.
Prismic Re
Effective October 1, 2025, the Company entered into a reinsurance agreement with Prismic Life Reinsurance, Ltd. (“Prismic Re”) to cede risks associated with certain fixed rate annuity contracts issued on or after the effective date of the agreement on a coinsurance and coinsurance with funds withheld basis. The deposit assets on reinsurance totaled $328 million at December 31, 2025. The funds withheld payables totaled $279 million at December 31, 2025.
13. INCOME TAXES
The following schedule discloses significant components of income tax expense (benefit) for each year presented:
Years Ended December 31,
202520242023
(in thousands)
Current tax expense (benefit):
U.S. federal$292,713 $151,544 $698,170 
State and local4,088 5,763 14,550 
Total296,801 157,307 712,720 
Deferred tax expense (benefit):
U.S. federal123,717 (22,612)(686,252)
State and local65 454 0 
Total123,782 (22,158)(686,252)
Total income tax expense (benefit) on income (loss) before equity in earnings of operating joint ventures420,583 135,149 26,468 
Income tax expense (benefit) on equity in earnings of operating joint ventures(70)24 (109)
Income tax expense (benefit) reported in equity related to:
Other comprehensive income (loss)162,925 (151,234)(5,638)
Total income tax expense (benefit)$583,438 $(16,061)$20,721 

Reconciliation of Expected Tax at Statutory Rates to Reported Income Tax Expense (Benefit)
The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% applicable for 2025 and the reported income tax expense (benefit) are summarized as follows:
B-99
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Year Ended December 31, 2025
($ in thousands)
Expected federal income tax expense/(benefit)$475,966 21.0 %
State taxes (net of federal benefit)3,281 0.2 %
Tax credits(23,245)(1.0)%
Nontaxable or nondeductible items(36,341)(1.6)%
Other reconciling items2,876 0.1 %
Foreign tax effects(1,954)(0.1)%
Total$420,583 18.6 %

The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% applicable for 2024 and 2023, and the reported income tax expense (benefit) are summarized as follows:
Years Ended December 31,
20242023
($ in thousands)
Expected federal income tax expense (benefit)$204,342 $100,305 
Non-taxable investment income(42,621)(42,730)
Tax credits(29,001)(42,578)
State taxes (net of federal benefit)4,911 11,495 
Other(2,482)(24)
Reported income tax expense (benefit)$135,149 $26,468 
Effective tax rate13.9 %5.5 %
The following is a description of items that had a significant impact on the difference between the Company’s statutory U.S. federal income tax rate of 21% applicable for 2025, 2024, and 2023, and the Company’s effective tax rate during the periods presented:
Non-Taxable Investment Income. The U.S. Dividends Received Deduction (“DRD”) reduces the amount of dividend income subject to U.S. tax and is included in the non-taxable investment income shown in the table above. More specifically, the U.S. DRD constitutes $35 million of the total $37 million of 2025 non-taxable investment income, $41 million of the total $43 million of 2024 non-taxable investment income, and $40 million of the total $43 million of 2023 non-taxable investment income. The DRD for the current period was estimated using information from 2024, current year investment results, and current year’s equity market performance. The actual current year DRD can vary based on factors such as, but not limited to, changes in the amount of dividends received that are eligible for the DRD, changes in the amount of distributions received from fund investments, changes in the account balances of variable life and annuity contracts, and the Company’s taxable income before the DRD.
Tax Credits. These amounts primarily represent tax credits relating to foreign taxes withheld on the Company’s separate account investments.
State and Local Income Taxes. State income tax in Illinois represents the majority of the State and local income tax category. Note that in most jurisdictions, the Company’s insurance operations are subject to state premium taxes in lieu of state income taxes. Premium taxes are recorded as a general expense.

Other. This line item represents reconciling items that are individually less than 5% of the computed expected federal income tax expense (benefit) and have therefore been aggregated for purposes of this reconciliation in accordance with relevant disclosure guidance.

B-100
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Schedule of Deferred Tax Assets and Deferred Tax Liabilities
December 31,
20252024
 (in thousands)
Deferred tax assets:
Insurance reserves$2,012,833 $1,749,792 
Investments846,847 1,033,856 
Net unrealized loss on securities122,067 410,718 
Other0 5,647 
Deferred tax assets2,981,747 3,200,013 
Deferred tax liabilities:
Deferred policy acquisition cost1,298,694 1,227,858 
Deferred sales inducements61,449 66,686 
Other12,305 0 
Deferred tax liabilities1,372,448 1,294,544 
Net deferred tax asset (liability)$1,609,299 $1,905,469 

The application of U.S. GAAP requires the Company to evaluate the recoverability of deferred tax assets and establish a valuation allowance if necessary to reduce the deferred tax asset to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, the Company considers many factors, including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) in which tax jurisdictions they were generated and the timing of their reversal; (4) taxable income in prior carryback years as well as projected taxable earnings exclusive of reversing temporary differences and carryforwards; (5) the length of time that carryovers can be utilized in the various taxing jurisdictions; (6) any unique tax rules that would impact the utilization of the deferred tax assets; and (7) any tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused. Although realization is not assured, management believes it is more likely than not that the deferred tax assets, net of valuation allowances, will be realized.
Changes in market conditions, including the significant rise in interest rates since the beginning of 2022, resulted in the recording of deferred tax assets related to net unrealized tax capital losses in the Company. When assessing recoverability of these deferred tax assets, the Company considers its ability and intent to hold the underlying securities to recovery in value, if necessary, as well as other factors as noted above. As of December 31, 2025, based on all available evidence, including capital loss carryback capacity, the Company concluded that the deferred tax assets related to the unrealized tax capital losses on the available-for-sale securities portfolios are, more likely than not, expected to be realized.
The Company had no valuation allowance as of December 31, 2025, and 2024. Adjustments to the valuation allowance will be made if there is a change in management’s assessment of the amount of deferred tax asset that is realizable.
The Company’s “Income (loss) from operations before income taxes and equity in earnings of operating joint venture” includes income from domestic operations of $2,267 million, $973 million and $478 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Income Taxes Paid

Income taxes paid during the year are disclosed in the table below and include tax installments made for the current year as well as tax payments and refunds related to prior periods.

December 31,
2025
 (in thousands)
Federal$194,863 
State170 
Foreign3,658 
Total$198,691 
B-101
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Tax Audit and Unrecognized Tax Benefits
The Company’s liability for income taxes includes the liability for unrecognized tax benefits and interest that relate to tax years still subject to review by the IRS or other taxing authorities. The completion of review or the expiration of the Federal statute of limitations for a given audit period could result in an adjustment to the liability for income taxes.
The Company had no unrecognized tax benefits as of December 31, 2025, 2024, and 2023.
The Company classifies all interest and penalties related to tax uncertainties as income tax expense (benefit). The Company did not recognize tax related interest and penalties.
At December 31, 2025, the Company remains subject to examination in the U.S. for tax years 2014 through 2025.
The Company participates in the IRS’s Compliance Assurance Program. Under this program, the IRS assigns an examination team to review completed transactions as they occur in order to reach agreement with the Company on how they should be reported in the relevant tax returns. If disagreements arise, accelerated resolutions programs are available to resolve the disagreements in a timely manner.
14. EQUITY
Accumulated Other Comprehensive Income (Loss)
AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Consolidated Statements of Operations and Comprehensive Income (Loss). Net unrealized investment gains (losses) are described in further detail in Note 2, Note 9 (Interest rate remeasurement of future policy benefits) and Note 11 (Gain (loss) from changes in non-performance risk on market risk benefits). The balance of and changes in each component of AOCI as of and for the years ended December 31, are as follows:
 Accumulated Other Comprehensive Income (Loss)
 Foreign Currency
Translation
Adjustment		Net Unrealized
Investment Gains
(Losses)(1)		Interest Rate Remeasurement of Future Policy BenefitsGain (Loss) from Changes in Non-Performance Risk on Market Risk BenefitsTotal Accumulated
Other
Comprehensive
Income (Loss)
 (in thousands)
Balance, December 31, 2022$(20,007)$(1,474,475)$119,368 $1,365,049 $(10,065)
Change in OCI before reclassifications2,419 677,735 (60,978)(659,927)(40,751)
Amounts reclassified from AOCI0 14,217 0 0 14,217 
Income tax benefit (expense)(497)(145,255)12,805 138,585 5,638 
Balance, December 31, 2023(18,085)(927,778)71,195 843,707 (30,961)
Change in OCI before reclassifications(4,595)(416,996)58,676 (441,138)(804,053)
Amounts reclassified from AOCI0 81,903 0 0 81,903 
Income tax benefit (expense)739 70,169 (12,313)92,639 151,234 
Balance, December 31, 2024(21,941)(1,192,702)117,558 495,208 (601,877)
Change in OCI before reclassifications3,326 892,453 (40,022)(185,092)670,665 
Amounts reclassified from AOCI0 102,992 0 0 102,992 
Income tax benefit (expense)(1,277)(208,922)8,404 38,870 (162,925)
Balance, December 31, 2025$(19,892)$(406,179)$85,940 $348,986 $8,855 
(1)Includes cash flow hedges of $(133) million, $111 million, and $12 million as of December 31, 2025, 2024, and 2023, respectively.

B-102
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Reclassifications out of Accumulated Other Comprehensive Income (Loss) 
Years Ended December 31,
202520242023
 (in thousands)
Amounts reclassified from AOCI(1)(2):
Net unrealized investment gains (losses):
Cash flow hedges—Currency/Interest rate(3)$(20,578)$85,491 $16,976 
Net unrealized investment gains (losses) on available-for-sale securities(82,414)(167,394)(31,193)
Total net unrealized investment gains (losses)(4)(102,992)(81,903)(14,217)
Total reclassifications for the period$(102,992)$(81,903)$(14,217)
(1)All amounts are shown before tax.
(2)Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.
(3)See Note 5 for additional information on cash flow hedges.
(4)See table below for additional information on unrealized investment gains (losses), including the impact on future policy benefits and policyholders’ account balances.
B-103
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Net Unrealized Investment Gains (Losses)
Net unrealized investment gains (losses) on available-for-sale fixed maturity securities and certain other invested assets and other assets are included in the Company’s Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from OCI those items that are included as part of “Net income (loss)” for a period that had been part of OCI in earlier periods. The amounts for the periods indicated below, split between amounts related to net unrealized investment gains (losses) on available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows:
Net Unrealized Investment Gains (Losses) on Available-for-Sale Fixed Maturity Securities on Which an Allowance for Credit Losses has been RecognizedNet Unrealized Gains (Losses) on All Other Investments(1)
Other Costs(2)		Future Policy
Benefits, Policyholders' Account Balances and Reinsurance Payables
Income Tax
Benefit (Expense)		Accumulated Other Comprehensive
Income (Loss) Related to Net Unrealized Investment Gains (Losses)
 (in thousands)
Balance, December 31, 2022$4,371 $(2,161,026)$(1,198,422)$1,488,679 $391,923 $(1,474,475)
Net investment gains (losses) on investments arising during the period(4,482)744,727 0 0 (155,393)584,852 
Reclassification adjustment for (gains) losses included in net income(265)14,482 0 0 (2,984)11,233 
Reclassification due to allowance for credit losses recorded during the period2,363 (2,363)0 0 0 0 
Impact of net unrealized investment (gains) losses0 0 397,071 (459,581)13,122 (49,388)
Balance, December 31, 20231,987 (1,404,180)(801,351)1,029,098 246,668 (927,778)
Net investment gains (losses) on investments arising during the period(773)(525,222)0 0 110,227 (415,768)
Reclassification adjustment for (gains) losses included in net income(175)82,078 0 0 (17,164)64,739 
Reclassification due to allowance for credit losses recorded during the period(146)146 0 0 0 0 
Impact of net unrealized investment (gains) losses0 0 217,642 (108,643)(22,894)86,105 
Balance, December 31, 2024893 (1,847,178)(583,709)920,455 316,837 (1,192,702)
Net investment gains (losses) on investments arising during the period(247)1,029,138 0 0 (215,954)812,937 
Reclassification adjustment for (gains) losses included in net income(2,361)105,353 0 0 (21,617)81,375 
Reclassification due to allowance for credit losses recorded during the period363 (363)0 0 0 0 
Impact of net unrealized investment (gains) losses0 0 335,647 (472,085)28,649 (107,789)
Balance, December 31, 2025$(1,352)$(713,050)$(248,062)$448,370 $107,915 $(406,179)
(1)Includes cash flow hedges. See Note 5 for information on cash flow hedges.
(2)"Other costs" primarily includes reinsurance recoverables and DRL.

Noncontrolling Interests

For certain subsidiaries, the Company owns a controlling interest that is less than 100% ownership of the subsidiary but must consolidate 100% of the subsidiary’s financial statements in accordance with U.S. GAAP. Noncontrolling interests represent the portion of equity ownership in a consolidated subsidiary that is not attributable to the Company.

B-104
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
15. STATUTORY NET INCOME AND SURPLUS AND DIVIDEND RESTRICTIONS
The Company is required to prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the Arizona Department of Insurance ("AZDOI"). It's subsidiary PLNJ is required to prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the New Jersey Department of Insurance and Banking. Statutory accounting practices primarily differ from U.S. GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis.
The following table summarizes certain statutory financial information for the Company, including its subsidiary PLNJ, for the periods indicated:
Years Ended December 31,
202520242023
(in millions)
Statutory net income (loss)$446 $(5,195)$4,923 
Statutory capital and surplus5,821 5,730 5,161 
The Company does not utilize prescribed or permitted practices that vary materially from the statutory accounting practices prescribed by the NAIC.
The Company is subject to Arizona law, which limits the amount of dividends that insurance companies can pay to stockholders without approval of the AZDOI. The maximum dividend, which may be paid in any twelve-month period without notification or approval, is limited to the lesser of 10% of statutory surplus as of December 31 of the preceding year or the net gain from operations of the preceding calendar year. Cash dividends may only be paid out of surplus derived from realized net profits. The Company must obtain approval from AZDOI prior to paying a dividend if the dividend, together with other dividend distributions made within the preceding twelve months, would exceed the lesser of 10% of statutory surplus or net gain from operations. Based on these limitations, there is a capacity to pay a dividend of $582 million in 2026 without prior approval. There was no return of capital in 2025. The Company did not pay dividends to Prudential Insurance in 2025, 2024, and 2023.

16. RELATED PARTY TRANSACTIONS
The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties.
Expense Charges and Allocations
The majority of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into general and administrative expenses and agency distribution expenses.
The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business production processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. The Company reviews its allocation methodology periodically which it may adjust accordingly. General and administrative expenses include allocations of stock compensation expenses related to a stock-based awards program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock-based awards program was $1 million for each of the years ended December 31, 2025, 2024, and 2023. The expense charged to the Company for the deferred compensation program was $5 million, $6 million and $5 million for the years ended December 31, 2025, 2024, and 2023, respectively.
The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded, non-contributory defined benefit pension plans. Some of these benefits are based on final earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during a career. The Company’s share of net expense for the pension plans was $14 million, $11 million and $13 million for the years ended December 31, 2025, 2024, and 2023, respectively.

B-105
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $19 million, $18 million and $14 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company’s expense for its share of the voluntary savings plan was $9 million, $8 million and $7 million for the years ended December 31, 2025, 2024, and 2023, respectively.
The Company is charged distribution expenses from Prudential’s proprietary nationwide advice organization, “Prudential Advisors” through a transfer pricing agreement, which is intended to reflect a market-based pricing arrangement. Prudential Advisors distributes Prudential life insurance, annuities, and investment products with proprietary and non-proprietary product options. In November 2024, the Company, along with three other affiliated entities, entered into several agreements with a third-party, LPL Financial Holdings Inc. (“LPL”). Under these agreements, the Company pays distribution expenses to LPL, of which 98% are returned to Prudential Advisors. Distribution expenses paid by the Company to LPL and subsequently returned to Prudential Advisors were $473 million and $56 million for the years ended December 31, 2025, and 2024, respectively.
The Company pays commissions and certain other fees to Prudential Annuities Distributors, Inc. (“PAD”) in consideration for PAD’s marketing and underwriting of the Company’s annuity products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s annuity products. Commissions and fees paid by the Company to PAD were $760 million, $820 million and $587 million for the years ended December 31, 2025, 2024, and 2023, respectively.
The Company is charged for its share of corporate expenses incurred by Prudential Financial to benefit its businesses, such as advertising, executive oversight, external affairs and philanthropic activity. The Company’s share of corporate expenses was $105 million, $131 million and $144 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Corporate-Owned Life Insurance
The Company has sold five Corporate Owned Life Insurance (“COLI”) policies to Prudential Insurance, and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $5,098 million and $4,657 million as of December 31, 2025 and 2024, respectively. Fees related to these COLI policies were $59 million, $55 million and $50 million for the years ended December 31, 2025, 2024, and 2023, respectively. The Company reinsures the risk associated with these COLI policies to an affiliate reinsurer as part of a broader program related to variable insurance policies.
In May 2023, the Company funded a policy loan from the Prudential Financial COLI policy noted above in an amount of $900 million to an affiliated irrevocable trust, commonly referred to as a “rabbi trust”, which Prudential Financial created to support certain non-qualified retirement plans. The outstanding balance of the policy loan with the rabbi trust was $888 million and $897 million as of December 31, 2025 and 2024, respectively. Interest income related to the policy loan was $41 million, $42 million and $26 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Affiliated Investment Management Expenses
In accordance with an agreement with PGIM, Inc. ("PGIM"), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $91 million, $69 million and $53 million for the years ended December 31, 2025, 2024, and 2023, respectively. These expenses are recorded as “Net investment income” in the Consolidated Statements of Operations and Comprehensive Income (Loss).
Derivative Trades
In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 5 for additional information.
The interest income to the Company from PGF related to affiliated cash collateral was $417 million, $490 million and $499 million for the years ended December 31, 2025, 2024, and 2023, respectively, and are included in "Other income (loss)".
Joint Ventures
The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other invested assets" includes $1,852 million and $1,100 million of investments in joint ventures as of December 31, 2025 and 2024, respectively. "Net investment income" related to these ventures includes gains of $168 million, $68 million and $5 million for the years ended December 31, 2025, 2024, and 2023, respectively.
B-106
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Affiliated Asset Administration Fee Income
The Company has a revenue sharing agreement with AST Investment Services, Inc. ("ASTISI") and PGIM Investments LLC ("PGIM Investments") whereby the Company receives fee income based on policyholders' separate account balances invested in the Advanced Series Trust. Income received from ASTISI and PGIM Investments related to this agreement was $247 million, $271 million and $274 million for the years ended December 31, 2025, 2024, and 2023, respectively. These revenues are recorded as “Asset administration fees” in the Consolidated Statements of Operations and Comprehensive Income (Loss).
The Company has a revenue sharing agreement with PGIM Investments, whereby the Company receives fee income based on policyholders’ separate account balances invested in The Prudential Series Fund. Income received from PGIM Investments related to this agreement was $52 million, $47 million and $38 million for the years ended December 31, 2025, 2024, and 2023, respectively. These revenues are recorded as “Asset administration fees” in the Consolidated Statements of Operations and Comprehensive Income (Loss).
Affiliated Notes Receivable
Affiliated notes receivable included in “Receivables from parent and affiliates” at December 31, was as follows:
Maturity DatesInterest Rates20252024
(in thousands)
U.S. dollar fixed rate notes2026-20380.00%-12.13 %$649,771 $520,462 
Total notes receivable - affiliated(1)$649,771 $520,462 
(1)All notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances.
The affiliated notes receivable shown above are classified as available-for-sale securities and other trading assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates.
Accrued interest receivable related to these loans was $3 million and $1 million at December 31, 2025 and 2024, respectively, and is included in “Other assets”. Revenues related to these loans were $8 million, $3 million and $3 million for the years ended December 31, 2025, 2024, and 2023, respectively, and are included in “Other income (loss)”.
Affiliated Commercial Mortgage Loan
The affiliated commercial mortgage loan included in "Commercial mortgage and other loans" at December 31, 2025 and 2024 was $0 million.
The commercial mortgage loan is carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses, and net of an allowance for losses. The Company reviews the performance and credit quality of the commercial mortgage loan on an on-going basis.
Accrued interest receivable related to the loan was $0 million at both December 31, 2025 and 2024, and is included in "Accrued investment income". Revenues were $0.0 million, $5.5 million and $6.9 million for the years ended December 31, 2025, 2024, and 2023, respectively, and are included in "Net investment income".
B-107
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Affiliated Asset Transfers
The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid-in capital" ("APIC") and "Realized investment gains (losses), net", respectively. The table below shows affiliated asset trades for the years ended December 31, 2025 and 2024.
AffiliateDateTransactionSecurity TypeFair
Value		Book ValueAPIC, Net of
Tax Increase/
(Decrease)		Realized
Investment
Gain/(Loss)
    (in thousands)
PAR UJanuary 2024Transfer inFixed Maturities$1,598,161 $1,598,161 $0 $0 
PAR UJanuary 2024Transfer inFixed Maturities$778,745 $778,745 $0 $0 
PURCJanuary 2024Transfer inFixed Maturities$2,155,560 $2,155,560 $0 $0 
GUL ReJanuary 2024Transfer inFixed Maturities$1,685,582 $1,685,582 $0 $0 
GUL ReJanuary 2024Transfer inEquities$4,976 $4,976 $0 $0 
PUREJanuary 2024Transfer outFixed Maturities$1,598,161 $1,598,161 $0 $0 
PUREJanuary 2024Transfer outFixed Maturities$778,745 $778,745 $0 $0 
PUREJanuary 2024Transfer outFixed Maturities$2,155,560 $2,155,560 $0 $0 
PUREJanuary 2024Transfer outFixed Maturities$1,685,582 $1,685,582 $0 $0 
PUREJanuary 2024Transfer outEquities$4,976 $4,976 $0 $0 
IronboundJanuary 2024PurchaseOther Invested Assets$60,414 $60,414 $0 $0 
Windhill CLO 1, Ltd.February 2024SaleFixed Maturities$18,428 $18,858 $0 $(430)
Windhill CLO 2, Ltd.February 2024SaleFixed Maturities$19,652 $20,057 $0 $(405)
PAR TermFebruary 2024PurchaseFixed Maturities$43,084 $43,084 $0 $0 
Windhill CLO 1, Ltd.March 2024SaleFixed Maturities$10,148 $10,387 $0 $(239)
Windhill CLO 2, Ltd.March 2024SaleFixed Maturities$14,763 $15,091 $0 $(328)
Prudential InsuranceMarch 2024PurchaseFixed Maturities$198,804 $206,285 $5,910 $0 
PAR UMarch 2024Transfer inOther Invested Assets$188,500 $188,500 $0 $0 
PUREMarch 2024Transfer outOther Invested Assets$188,500 $188,500 $0 $0 
Windhill CLO 1, Ltd.April 2024SaleFixed Maturities$2,261 $2,300 $0 $(39)
Windhill CLO 2, Ltd.May 2024SaleFixed Maturities$14,034 $14,415 $0 $(381)
Windhill CLO 1, Ltd.June 2024SaleFixed Maturities$2,045 $2,100 $0 $(55)
Windhill CLO 2, Ltd.June 2024SaleFixed Maturities$23,342 $23,743 $0 $(401)
PAR UJune 2024Transfer inOther Invested Assets$326 $326 $0 $0 
PUREJune 2024Transfer outOther Invested Assets$326 $326 $0 $0 
B-108
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
AffiliateDateTransactionSecurity TypeFair
Value		Book ValueAPIC, Net of
Tax Increase/
(Decrease)		Realized
Investment
Gain/(Loss)
PAR UJune 2024PurchaseCommercial Mortgage and Other Loans$12,555 $12,555 $0 $0 
Windhill CLO 2, Ltd.July 2024SaleFixed Maturities$53,462 $54,628 $0 $(1,166)
Windhill CLO 2, Ltd.July 2024SaleFixed Maturities$6,579 $6,695 $0 $(116)
Windhill CLO 1, Ltd.July 2024SaleFixed Maturities$2,136 $2,200 $0 $(64)
PAR UJuly 2024PurchaseFixed Maturities$17,402 $17,402 $0 $0 
Prudential InsuranceJuly 2024PurchaseFixed Maturities$22,655 $23,433 $614 $0 
PAR UJuly 2024PurchaseFixed Maturities$1,239 $1,239 $0 $0 
PAR UJuly 2024PurchaseDerivatives$2,975 $2,975 $0 $0 
Windhill CLO 2, Ltd.August 2024SaleFixed Maturities$21,929 $22,500 $0 $(571)
Windhill CLO 1, Ltd.August 2024SaleFixed Maturities$13,650 $14,100 $0 $(450)
PAR UAugust 2024PurchaseFixed Maturities$46,742 $46,742 $0 $0 
PAR UAugust 2024PurchaseFixed Maturities$4,793 $4,793 $0 $0 
Prudential InsuranceAugust 2024PurchaseFixed Maturities$35,872 $35,085 $(621)$0 
Windhill CLO 2, Ltd.September 2024SaleFixed Maturities$57,613 $57,613 $0 $0 
Windhill CLO 2, Ltd.September 2024SaleFixed Maturities$24,575 $24,911 $0 $(336)
Prudential InsuranceSeptember 2024PurchaseFixed Maturities$44,773 $43,632 $(901)$0 
HirakataOctober 2024PurchaseFixed Maturities$21,229 $21,229 $0 $0 
HirakataOctober 2024PurchaseFixed Maturities$3,901 $3,901 $0 $0 
PAR UOctober 2024Transfer inFixed Maturities$6,615,438 $6,615,438 $0 $0 
Windhill CLO 3, Ltd.October 2024SaleFixed Maturities$232,036 $235,610 $0 $(3,574)
Windhill CLO 2, Ltd.October 2024SaleFixed Maturities$5,824 $5,899 $0 $(75)
Windhill CLO 2, Ltd.October 2024SaleFixed Maturities$14,690 $14,959 $0 $(269)
Windhill CLO 1, Ltd.October 2024SaleFixed Maturities$3,038 $3,100 $0 $(62)
PAR UOctober 2024Transfer inEquities$6,120 $6,120 $0 $0 
Windhill CLO 3, Ltd.November 2024SaleFixed Maturities$17,409 $17,518 $0 $(109)
Windhill CLO 3, Ltd.December 2024SaleFixed Maturities$38,020 $38,537 $0 $(517)
Windhill CLO 3, Ltd.December 2024SaleShort-term Investments$2,882 $2,905 $0 $(23)
B-109
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
AffiliateDateTransactionSecurity TypeFair
Value		Book ValueAPIC, Net of
Tax Increase/
(Decrease)		Realized
Investment
Gain/(Loss)
Prudential InsuranceDecember 2024Contributed CapitalEquities$415,696 $416,265 $0 $0 
Windhill CLO 2, Ltd.January 2025SaleFixed Maturities$2,738 $2,800 $0 $(62)
Windhill CLO 3, Ltd.January 2025SaleFixed Maturities$17,046 $17,363 $0 $(317)
Windhill CLO 1, Ltd.January 2025SaleFixed Maturities$2,152 $2,200 $0 $(48)
PAR UFebruary 2025PurchaseDerivatives$417,169 $417,169 $0 $0 
Windhill CLO 2, Ltd.February 2025SaleFixed Maturities$7,482 $7,600 $0 $(118)
Windhill CLO 3, Ltd.February 2025SaleFixed Maturities$17,172 $17,410 $0 $(238)
Windhill CLO 1, Ltd.February 2025SaleFixed Maturities$9,784 $9,900 $0 $(116)
Prudential InsuranceFebruary 2025PurchaseFixed Maturities$100,033 $101,147 $880 $0 
Prudential InsuranceMarch 2025PurchaseFixed Maturities$226,726 $260,396 $26,599 $0 
Windhill CLO 3, Ltd.March 2025SaleFixed Maturities$9,019 $9,144 $0 $(125)
Windhill CLO 1, Ltd.March 2025SaleFixed Maturities$8,469 $8,500 $0 $(31)
Windhill CLO 1, Ltd.March 2025SaleFixed Maturities$10,184 $10,301 $0 $(117)
Windhill CLO 1, Ltd.March 2025PurchaseFixed Maturities$921 $921 $0 $0 
Windhill CLO 1, Ltd.April 2025SaleFixed Maturities$21,646 $22,003 $0 $(357)
Windhill CLO 2, Ltd.April 2025SaleFixed Maturities$8,597 $8,646 $0 $(49)
Windhill CLO 3, Ltd.April 2025SaleFixed Maturities$33,528 $34,110 $0 $(582)
Windhill CLO 1, Ltd.April 2025PurchaseFixed Maturities$24 $24 $0 $0 
Prudential InsuranceApril 2025PurchaseFixed Maturities$51,030 $53,646 $2,066 $0 
Windhill CLO 1, Ltd.May 2025SaleFixed Maturities$9,254 $9,388 $0 $(134)
Windhill CLO 2, Ltd.May 2025SaleFixed Maturities$14,667 $14,792 $0 $(125)
Windhill CLO 4, Ltd.May 2025SaleFixed Maturities$235,316 $237,464 $0 $(2,148)
Prudential InsuranceMay 2025PurchaseFixed Maturities$24,037 $24,000 $(29)$0 
PARCCMay 2025PurchaseFixed Maturities$103,549 $103,549 $0 $0 
Prudential InsuranceMay 2025Contributed CapitalOther Invested Assets$207,870 $207,870 $0 $0 
Windhill CLO 2, Ltd.June 2025SaleFixed Maturities$500 $500 $0 $0 
Windhill CLO 3, Ltd.June 2025SaleFixed Maturities$2,608 $2,608 $0 $0 
Windhill CLO 4, Ltd.June 2025SaleFixed Maturities$19,136 $19,351 $0 $(215)
B-110
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
AffiliateDateTransactionSecurity TypeFair
Value		Book ValueAPIC, Net of
Tax Increase/
(Decrease)		Realized
Investment
Gain/(Loss)
Windhill CLO 1, Ltd.July 2025SaleFixed Maturities$2,189 $2,200 $0 $(11)
Windhill CLO 2, Ltd.July 2025SaleFixed Maturities$1,800 $1,800 $0 $0 
Windhill CLO 3, Ltd.July 2025SaleFixed Maturities$1,681 $1,700 $0 $(19)
Windhill CLO 4, Ltd.July 2025SaleFixed Maturities$644 $650 $0 $(6)
Windhill CLO 1, Ltd.August 2025SaleFixed Maturities$16,310 $16,526 $0 $(216)
Windhill CLO 2, Ltd.August 2025SaleFixed Maturities$2,920 $2,920 $0 $0 
Windhill CLO 3, Ltd.August 2025SaleFixed Maturities$2,090 $2,090 $0 $0 
Prudential InsuranceAugust 2025PurchaseFixed Maturities$117,008 $116,592 $(328)$0 
Windhill CLO 1, Ltd.September 2025SaleFixed Maturities$1,195 $1,200 $0 $(5)
Windhill CLO 2, Ltd.September 2025SaleFixed Maturities$9,273 $9,314 $0 $(41)
Windhill CLO 3, Ltd.September 2025SaleShort-term Investments$235 $235 $0 $0 
Windhill CLO 4, Ltd.September 2025SaleFixed Maturities$4,910 $4,941 $0 $(31)
PGIM Strategic Investments IncSeptember 2025SaleOther Invested Assets$61,361 $61,361 $0 $0 
Windhill CLO 2, Ltd.October 2025SaleFixed Maturities$1,389 $1,400 $0 $(11)
Windhill CLO 3, Ltd.October 2025SaleFixed Maturities$4,791 $4,800 $0 $(9)
Windhill CLO 4, Ltd.October 2025SaleFixed Maturities$75,800 $76,335 $0 $(535)
Windhill CLO 5, Ltd.November 2025SaleFixed Maturities$134,211 $135,041 $0 $(830)
Prudential InsuranceNovember 2025SaleCommercial Mortgage and Other Loans$101,514 $99,786 $1,365 $0 
Prudential InsuranceNovember 2025SaleFixed Maturities$29,140 $28,813 $258 $0 
Prudential InsuranceNovember 2025SaleFixed Maturities$758 $781 $(19)$0 
Prudential InsuranceNovember 2025PurchaseFixed Maturities$148,886 $149,101 $169 $0 
Prudential InsuranceDecember 2025PurchaseFixed Maturities$28,011 $29,000 $781 $0 
Prudential InsuranceDecember 2025PurchaseFixed Maturities$9,337 $9,060 $0 $(277)
Windhill CLO 1, Ltd.December 2025PurchaseFixed Maturities$1,112 $1,112 $0 $0 
Windhill CLO 1, Ltd.December 2025SaleFixed Maturities$16,955 $17,075 $0 $(120)
Windhill CLO 2, Ltd.December 2025SaleFixed Maturities$4,896 $4,920 $0 $(24)
Windhill CLO 3, Ltd.December 2025SaleFixed Maturities$9,008 $9,076 $0 $(68)
B-111
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
AffiliateDateTransactionSecurity TypeFair
Value		Book ValueAPIC, Net of
Tax Increase/
(Decrease)		Realized
Investment
Gain/(Loss)
Windhill CLO 3, Ltd.December 2025SaleShort-term Investments$353 $353 $0 $0 
Windhill CLO 4, Ltd.December 2025SaleFixed Maturities$10,562 $10,662 $0 $(100)
Windhill CLO 5, Ltd.December 2025SaleFixed Maturities$27,642 $27,913 $0 $(271)
Passaic Fund LLCDecember 2025SaleOther Invested Assets$35,828 $35,828 $0 $0 

Debt Agreements
The Company is authorized to borrow funds up to $7 billion from affiliates to meet its capital and other funding needs. There was no debt outstanding as of December 31, 2025 and 2024.
The total interest expense to the Company related to affiliated loans and cash collateral with PGF was $16 million, $39 million and $17 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Contributed Capital and Dividends
In February 2026, the Company received a capital contribution of $300 million from Prudential Insurance. In February, May, August and December 2025, the Company received capital contributions from Prudential Insurance in the amounts of $220 million, $216 million, $17 million and $400 million, respectively, with the May contribution including $208 million in invested assets. In December 2024, the Company received capital contributions in the amount of $416 million from Prudential Insurance in the form of invested assets. In February and December 2023, the Company received capital contributions in the amount of $405 million and $7 million, respectively, from Prudential Insurance.
In June 2024, there was a $550 million return of capital to Prudential Insurance. In June, September, and December 2023, there was a $300 million, $650 million, and $450 million return of capital, respectively, to Prudential Insurance.
In 2025, 2024, and 2023, the Company did not pay any dividends to Prudential Insurance.
Reinsurance with Affiliates
As discussed in Note 12, the Company participates in reinsurance transactions with certain affiliates.

17. COMMITMENTS AND CONTINGENT LIABILITIES
Commitments
The Company has made commitments to fund commercial mortgage and agricultural property loans. As of December 31, 2025 and 2024, the outstanding balances on these commitments were $85 million and $230 million, respectively. These amounts include unfunded commitments that are not unconditionally cancellable. For related credit exposure, there was an allowance for credit losses of $0.5 million and $0.3 million as of December 31, 2025 and 2024, respectively, which is a change of $0.2 million and $0.0 million for the years ended December 31, 2025 and 2024, respectively. The Company also made commitments to purchase or fund investments, mostly fund investments and private fixed maturities, some of which are contingent upon events or circumstances not under the Company’s control, including those at the discretion of the Company’s counterparties. The Company anticipates a portion of these commitments will ultimately be funded from its separate accounts. As of December 31, 2025 and 2024, $2,142 million and $1,359 million, respectively, of these commitments were outstanding. These amounts include unfunded commitments that are not unconditionally cancellable. There were no related charges for credit losses for both the years ended December 31, 2025 and 2024.
B-112
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Guarantees
In July 2017, Pruco Life formed a joint venture with CT Corp to provide life insurance solutions in Indonesia. Pruco Life owns a 49% interest in the joint venture and has entered into a shareholders agreement with CT Corp that sets out their respective rights and obligations with respect to the joint venture. Among other things, the shareholders agreement obligates Pruco Life and CT Corp to provide capital to the joint venture, as necessary to comply with applicable law or to maintain a specified minimum amount of capital in the joint venture. This obligation is not limited to a maximum amount. Pruco Life does not expect to make any payments on this guarantee and is not carrying any liabilities associated with the guarantee.
Since 2001, Pruco Life entered into an arrangement with Prudential of Taiwan. In June 2021, PIIH completed the sale of Prudential of Taiwan. As a result of the sale, Pruco Life has a financial guarantee to stand ready to perform in an event that both Prudential of Taiwan and the Buyer default and fail to perform their obligations to make payments to the policyholders. Pruco Life has a liability of $31 million and $32 million as of December 31, 2025 and 2024, respectively, which represents the fair value of the guarantee and is amortized in revenue over a period which approximates the life of the underlying insurance in force. Since this obligation is not subject to limitations, it is not possible to determine the maximum potential amount due under this guarantee.

Guarantees of Asset Values

December 31,
20252024
(in thousands)
Guaranteed value of third-parties assets$4,186,284 $3,958,847 
Fair value of collateral supporting these assets$3,912,881 $3,543,500 
Asset (liability) associated with guarantee, carried at fair value $0 $111 

Certain contracts underwritten by Pruco Life include guarantees related to financial assets owned by the guaranteed party. These contracts are accounted for as derivatives and carried at fair value. The collateral supporting these guarantees is not reflected on the Consolidated Statements of Financial Position.

Contingent Liabilities
On an ongoing basis, the Company and its regulators review its operations including, but not limited to, sales and other customer interface procedures and practices, and procedures for meeting obligations to its customers and other parties. These reviews may result in the modification or enhancement of processes or the imposition of other action plans, including concerning management oversight, sales and other customer interface procedures and practices, and the timing or computation of payments to customers and other parties. In certain cases, if appropriate, the Company may offer customers or other parties remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines.
The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements.
It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position.
B-113
Table of Contents                                    
PRUCO LIFE INSURANCE COMPANY
Notes to Consolidated Financial Statements—(Continued)
Litigation and Regulatory Matters
The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain.
The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of December 31, 2025, the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $100 million. This estimate is not an indication of expected loss, if any, or the Company's maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews.

Individual Annuities and Individual Life
California Advocates for Nursing Home Reform v. The Prudential Insurance Company of America and Pruco Life Insurance Company, et al.
In January 2024, a putative class action complaint entitled California Advocates for Nursing Home Reform v. The Prudential Insurance Company of America and Pruco Life Insurance Company, et al., was filed in California Superior Court, Alameda County, alleging that the Company has failed to comply with California laws requiring that life insurance policies issued or delivered in California: (i) provide for a contractual 60-day grace period pre-lapse during which a policy must stay in force; (ii) provide policyholders and designees with notice of payment default within 30 days and a 30-day advance written notice of pending lapse; and (iii) notify policyholders annually of their right to designate additional recipients for lapse notices. The complaint asserts claims for violation of California’s Unfair Competition law ("UCL") and seeks unspecified damages along with declaratory and injunctive relief. In February 2024, defendants removed the action from California state court to the United States District Court for the Northern District of California. Plaintiff filed a motion to remand the action to the California Superior Court, Alameda County, and in December 2024, the motion was granted. In April 2025, Plaintiff filed a First Amended Complaint removing allegations related to the Unclaimed Life Insurance and Annuities Act, and the Defendant filed a demurrer seeking to dismiss the Amended Complaint. In October 2025, the Court issued an Order: (i) sustaining Defendant’s demurrer as to Plaintiff’s declaratory relief claim, and (ii) denying the demurrer as to the UCL claim.

Summary
The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial statements. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial statements.
B-114
Table of Contents    
PRUCO LIFE INSURANCE COMPANY
Schedule I
Summary of Investments Other Than Investments in Related Parties
December 31, 2025
(in thousands)
Type of InvestmentAmortized Cost or CostFair
Value		Amount
Shown in the
Balance Sheet
Fixed maturities, available-for-sale:
Bonds:
U.S. Treasury securities and obligations of U.S. government authorities and agencies$1,196,805 $1,117,320 $1,117,320 
Obligations of U.S. states and their political subdivisions460,634 434,528 434,528 
Foreign governments456,138 424,735 424,735 
Asset-backed securities5,051,514 5,076,048 5,076,048 
Commercial mortgage-backed securities1,370,898 1,354,310 1,354,310 
Residential mortgage-backed securities936,614 941,965 941,965 
Public utilities3,553,256 3,401,020 3,401,020 
All other corporate bonds35,134,183 34,801,972 34,801,972 
Redeemable preferred stock70,176 72,273 72,273 
Total fixed maturities, available-for-sale$48,230,218 $47,624,171 $47,624,171 
Equity securities:
Common stocks:
Other common stocks $2,569,208 $2,608,156 $2,608,156 
Mutual funds 237,773 241,178 241,178 
Non-redeemable preferred stocks 19,661 20,297 20,297 
Total equity securities, at fair value$2,826,642 $2,869,631 $2,869,631 
Fixed maturities, trading$5,241,598 $4,892,507 $4,892,507 
Commercial mortgage and other loans10,082,667 10,082,667 
Policy loans1,666,965 1,666,965 
Short-term investments320,794 320,794 
Other invested assets 2,297,535 2,297,535 
Total investments$70,666,419 $69,754,270 


B-115
Table of Contents    
PRUCO LIFE INSURANCE COMPANY
Schedule II
Condensed Financial Information of Registrant
Condensed Statements of Financial Position
December 31, 2025 and 2024
(in thousands, except share amounts)
December 31, 2025December 31, 2024
ASSETS
Fixed maturities, available-for-sale, at fair value (allowance for credit losses: 2025 – $12,121; 2024 – $40,414) (amortized cost: 2025 – $44,270,098; 2024 – $33,648,311)(1)
$43,866,735 $31,964,802 
Fixed maturities, trading, at fair value (amortized cost: 2025 – $5,203,043; 2024 – $4,391,322)
4,853,273 3,823,792 
Equity securities, at fair value (cost: 2025 – $2,633,413; 2024 – $2,650,189)
2,676,833 2,623,758 
Policy loans527,440 422,891 
Short-term investments (net of allowance for credit losses: 2025 – $0; 2024 – $49)
320,794 505,991 
Commercial mortgage and other loans (net of $48,775 and $36,002 allowance for credit losses at December 31, 2025 and 2024, respectively)
9,497,730 7,281,995 
Other invested assets (includes $77,641 and $12,999 of assets measured at fair value at December 31, 2025 and 2024, respectively)(1)
2,129,812 1,363,038 
Total investments63,872,617 47,986,267 
Cash and cash equivalents(1)2,586,041 3,144,542 
Deferred policy acquisition costs8,179,344 7,389,743 
Accrued investment income(1)548,524 405,115 
Reinsurance recoverables and deposit receivables (net of $145 and $10 allowance for credit losses; includes $373,491 and $379,582 of embedded derivatives at fair value at December 31, 2025 and 2024, respectively)
49,739,181 44,233,228 
Investment in subsidiaries1,618,782 1,472,500 
Receivables from parent and affiliates854,168 567,631 
Deferred sales inducements297,413 322,351 
Income tax assets(1)1,627,258 2,013,349 
Market risk benefit assets2,160,239 2,144,919 
Other assets(1)1,823,202 1,833,801 
Separate account assets103,737,191 103,635,702 
TOTAL ASSETS$237,043,960 $215,149,148 
LIABILITIES AND EQUITY
LIABILITIES
Policyholders’ account balances$81,224,030 $65,114,184 
Future policy benefits26,224,147 23,096,707 
Market risk benefit liabilities3,986,790 3,788,800 
Cash collateral for loaned securities22,622 121,372 
Reinsurance and funds withheld payables (includes $265 and $0 of embedded derivatives at fair value at December 31, 2025 and 2024, respectively)
9,203,855 7,192,595 
Payables to parent and affiliates(1)2,418,541 3,653,229 
Other liabilities(1)2,303,716 3,950,118 
Separate account liabilities103,737,191 103,635,702 
Total liabilities229,120,892 210,552,707 
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 capital5,806,878 4,923,299 
Retained earnings / (accumulated deficit)2,104,835 272,519 
Accumulated other comprehensive income (loss)8,855 (601,877)
Total equity7,923,068 4,596,441 
TOTAL LIABILITIES AND EQUITY$237,043,960 $215,149,148 
    
(1) See Note 4 to the Consolidated Financial Statements for details of balances associated with variable interest entities.

See Notes to Condensed Financial Information of Registrant
B-116
Table of Contents    
PRUCO LIFE INSURANCE COMPANY
Schedule II
Condensed Financial Information of Registrant
Condensed Statements of Operations and Comprehensive Income (Loss)
Years Ended December 31, 2025, 2024, and 2023
(in thousands)
202520242023
REVENUES
Premiums (includes $2,191, $(2,740) and $6,296 of gains (losses) from changes in estimates on deferred profit liability amortization for the years ended December 31, 2025, 2024, and 2023, respectively)
$500,031 $344,383 $289,344 
Policy charges and fee income1,623,176 6,677,744 1,476,927 
Net investment income2,912,127 2,154,525 1,507,280 
Asset administration fees192,382 212,328 223,803 
Other income (loss)2,242,832 743,843 747,789 
Realized investment gains (losses), net(1,242,504)498,953 (1,102,789)
Change in value of market risk benefits, net of related hedging gains (losses)(522,945)(473,209)(169,565)
TOTAL REVENUES5,705,099 10,158,567 2,972,789 
BENEFITS AND EXPENSES
Policyholders’ benefits714,135 7,338,059 448,286 
Change in estimates of liability for future policy benefits(62,248)(14,594)6,067 
Interest credited to policyholders’ account balances1,116,400 956,863 557,510 
Amortization of deferred policy acquisition costs643,498 (285,676)518,939 
General, administrative and other expenses1,134,168 1,180,030 1,074,134 
TOTAL BENEFITS AND EXPENSES3,545,953 9,174,682 2,604,936 
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES AND OPERATING JOINT VENTURE2,159,146 983,885 367,853 
Income tax expense (benefit)411,664 147,233 14,006 
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES AND OPERATING JOINT VENTURE1,747,482 836,652 353,847 
Equity in earnings of subsidiaries85,169 (12,237)96,844 
Equity in earnings of operating joint venture, net of taxes(335)(425)(433)
NET INCOME (LOSS)$1,832,316 $823,990 $450,258 
Other comprehensive income (loss), before tax:
Net unrealized investment gains (losses)914,172 (246,952)632,819 
Interest rate remeasurement of future policy benefits(37,656)45,461 (50,679)
Gain (loss) from changes in non-performance risk on market risk benefits(169,143)(401,884)(597,135)
Other66,284 (118,775)(11,539)
Total773,657 (722,150)(26,534)
Less: Income tax expense (benefit) related to other comprehensive income (loss)162,925 (151,234)(5,638)
Other comprehensive income (loss), net of taxes610,732 (570,916)(20,896)
Total comprehensive income (loss)$2,443,048 $253,074 $429,362 







See Notes to Condensed Financial Information of Registrant
B-117
Table of Contents    
PRUCO LIFE INSURANCE COMPANY
Schedule II
Condensed Financial Information of Registrant
Condensed Statements of Cash Flows
Years Ended December 31, 2025, 2024, and 2023
(in thousands)
202520242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash flows from (used in) operating activities$3,644,663 $3,363,590 $2,365,722 
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale5,210,345 3,425,809 1,622,501 
Fixed maturities, trading1,560,828 800,588 95,872 
Equity securities2,278,334 957,650 189,210 
Policy loans173,984 157,478 152,275 
Ceded policy loans(108,452)(87,521)(117,589)
Short-term investments872,948 1,280,677 444,983 
Commercial mortgage and other loans370,562 724,559 157,116 
Other invested assets267,660 73,632 17,405 
Notes receivable from parent and affiliates231,823 722 3,858 
Payments for the purchase/origination of:
Fixed maturities, available-for-sale(15,563,807)(12,273,347)(6,762,400)
Fixed maturities, trading(2,534,641)(1,819,224)(857,717)
Equity securities(2,453,816)(2,373,213)(678,790)
Policy loans(253,540)(222,724)(236,886)
Ceded policy loans95,058 117,552 147,961 
Short-term investments(792,990)(1,412,350)(679,224)
Commercial mortgage and other loans(2,503,344)(2,145,910)(1,239,173)
Other invested assets(859,300)(406,031)(174,680)
Notes receivable from parent and affiliates(354,399)(297,850)(31)
Capital contributions to subsidiaries(407,432)(549,964)(323,909)
Return of capital from subsidiaries403,596 414,859 0 
Other, net(141,435)164,779 (60,358)
Cash flows from (used in) investing activities(14,508,018)(13,469,829)(8,299,576)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders’ account deposits15,792,652 16,148,664 10,508,549 
Affiliated ceded policyholders’ account deposits(1,778,143)(826,393)(870,031)
Policyholders’ account withdrawals(4,229,523)(3,600,010)(3,287,164)
Affiliated ceded policyholders’ account withdrawals398,376 454,788 360,211 
Contributed capital620,000 0 405,000 
Return of capital0 (550,000)(1,400,000)
Other, net(498,508)(329,656)28,817 
Cash flows from (used in) financing activities10,304,854 11,297,393 5,745,382 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS(558,501)1,191,154 (188,472)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR3,144,542 1,953,388 2,141,860 
CASH AND CASH EQUIVALENTS, END OF YEAR$2,586,041 $3,144,542 $1,953,388 
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid (refunded), net$174,626 $360,742 $57,749 
Interest paid$810 $2,644 $4,377 

B-118
Table of Contents    
Significant Non-Cash Transactions
2025
"Cash flows from (used in) operating activities" for the year ended December 31, 2025 excludes certain non-cash activities in the amount of $(1,397) million related to the affiliated reinsurance transaction with The Prudential Insurance Company of America ("Prudential Insurance") effective October 1, 2025. See Note 12 for additional information.

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 12 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 12 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 12 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 16 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 12 for more details regarding this transaction.





















See Notes to Condensed Financial Information of Registrant
B-119
Table of Contents    
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.

B-120