On December 18, 2001, the date of demutualization, The Prudential Insurance Company of America (“PICA”) established a closed block for certain in-force participating insurance policies and annuity products, along with corresponding assets used for the payment of benefits and policyholders’ dividends on these products, (collectively the “Closed Block”), and ceased offering these participating products. The recorded assets and liabilities were allocated to the Closed Block at their historical carrying amounts. The Closed Block forms the principal component of the Closed Block division. For additional information regarding the Closed Block, see Note 16 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

As of March 31, 2026 and December 31, 2025, the Company recognized a policyholder dividend obligation of $1,487 million and $1,635 million, respectively, to Closed Block policyholders for the excess of actual cumulative earnings over expected cumulative earnings. Additionally, accumulated net unrealized investment gains (losses) were reflected as a policyholder dividend obligation of $(1,407) million and $(1,064) million at March 31, 2026 and December 31, 2025, respectively, with a corresponding amount reported in AOCI.

As of March 31, 2026, the Closed Block has sufficient funds to make guaranteed policy benefit payments and there is no expectation that assets outside of the Closed Block will be needed to fund future payments. The excess of Closed Block liabilities over Closed Block assets as of the end of the reporting period shown in the table below is a reasonable measure of the margin in the reported liabilities compared to best estimate liabilities assuming the current dividend scale. Closed Block liabilities and assets designated to the Closed Block, as well as maximum future earnings to be recognized from these liabilities and assets, are as follows:


	March 31, 2026		December 31, 2025
	(in millions)
Closed Block liabilities
Future policy benefits	$	41,229	$	41,484
Policyholders’ dividends payable	689		669
Policyholders’ dividend obligation	80		571
Policyholders’ account balances	4,240		4,273
Other Closed Block liabilities	3,233		3,030
Total Closed Block liabilities	49,471		50,027
Closed Block assets
Fixed maturities, available-for-sale, at fair value	28,205		28,721
Fixed maturities, trading, at fair value	541		581
Equity securities, at fair value	1,494		1,593
Commercial mortgage and other loans	7,450		7,464
Policy loans	3,185		3,217
Other invested assets	4,706		4,538
Short-term investments	264		255
Total investments	45,845		46,369
Cash and cash equivalents	697		726
Accrued investment income	403		388
Other Closed Block assets	281		279
Total Closed Block assets	47,226		47,762
Excess of reported Closed Block liabilities over Closed Block assets	2,245		2,265
Portion of above representing accumulated other comprehensive income (loss):
Net unrealized investment gains (losses)	(1,573)		(1,230)
Allocated to policyholder dividend obligation	1,407		1,064
Future earnings to be recognized from Closed Block assets and Closed Block liabilities	$	2,079	$	2,099


	Three Months Ended March 31, 2026
	(in millions)
Balance, December 31, 2025	$	571

Impact from earnings allocable to policyholder dividend obligation	(148)
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation	(343)
Balance, March 31, 2026	$	80


	Three Months Ended March 31,
	2026		2025
	(in millions)
Revenues
Premiums	$	403	$	417
Net investment income	531		493
Realized investment gains (losses), net	(28)		(57)
Other income (loss)	(26)		(34)
Total Closed Block revenues	880		819
Benefits and Expenses
Policyholders’ benefits	572		601
Interest credited to policyholders’ account balances	28		28
Dividends to policyholders	215		127
General and administrative expenses	60		78
Total Closed Block benefits and expenses	875		834
Closed Block revenues, net of Closed Block benefits and expenses, before income taxes	5		(15)
Income tax expense (benefit)	(14)		(36)
Closed Block revenues, net of Closed Block benefits and expenses and income taxes	$	19	$	21