v3.26.1
Short-Term and Long-Term Debt
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Short-Term and Long-Term Debt SHORT-TERM AND LONG-TERM DEBT
 
Short-term Debt
 
The table below presents the Company’s short-term debt as of the dates indicated:
 
March 31, 2026December 31, 2025
 ($ in millions)
Commercial paper:
Prudential Financial$25 $25 
Prudential Funding, LLC849 849 
Subtotal commercial paper874 874 
Current portion of long-term debt:
Senior notes
36 536 
Mortgage debt36 33 
Subtotal current portion of long-term debt72 569 
Subtotal946 1,443 
Less: assets under set-off arrangements
0 0 
Total short-term debt(1)
$946 $1,443 
Supplemental short-term debt information:
Portion of commercial paper borrowings due overnight$310$175
Daily average commercial paper outstanding for the quarter ended$1,882$2,389
Weighted average maturity of outstanding commercial paper, in days611
Weighted average interest rate on outstanding commercial paper3.66 %3.72 %
__________
(1)Includes Prudential Financial debt of $61 million and $561 million at March 31, 2026 and December 31, 2025, respectively.

Prudential Financial and certain subsidiaries have access to external sources of liquidity, including membership in the FHLBNY, a funding agreement facility with the Federal Agricultural Mortgage Corporation (“Farmer Mac”), commercial paper programs and contingent financing facilities in the form of facility agreements. The Company also maintains syndicated, unsecured committed credit facilities as an alternative source of liquidity. At March 31, 2026, no amounts were drawn on these syndicated, unsecured committed credit facilities. For additional information regarding these sources of liquidity, see Note 18 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Long-term Debt

The table below presents the Company’s long-term debt as of the dates indicated:
 
 March 31, 2026December 31, 2025
 (in millions)
Fixed-rate obligations:
Surplus notes subject to set-off arrangements(1)(2)
$15,844 $15,744 
Senior notes10,884 10,823 
Mortgage debt(3)
145 134 
Floating-rate obligations:
Line of credit220 255 
Mortgage debt(3)
37 49 
Junior subordinated notes(4)
7,596 7,595 
Subtotal34,726 34,600 
Less: assets under set-off arrangements(1)15,844 15,744 
Total long-term debt(5)
$18,882 $18,856 
__________    
(1)The surplus notes have corresponding assets where rights to set-off exist, thereby reducing the amount of surplus notes included in long-term debt.
(2)Amount includes $7.6 billion of surplus notes used to finance Guideline AXXX reserves for business reinsured to Somerset Re in March 2024. See Note 12 for additional information.
(3)Includes $182 million and $184 million of debt denominated in foreign currency at March 31, 2026 and December 31, 2025, respectively.
(4)Includes Prudential Financial debt of $7,557 million and $7,555 million at March 31, 2026, and December 31, 2025, respectively. Also includes subsidiary debt of $39 million and $40 million denominated in foreign currency at March 31, 2026, and December 31, 2025, respectively.
(5)Includes Prudential Financial debt of $18,441 million and $18,378 million at March 31, 2026 and December 31, 2025, respectively.

At March 31, 2026 and December 31, 2025, the Company was in compliance with all debt covenants related to the borrowings in the table above.

In December 2025, the Company entered into an agreement with an external counterparty that allows for the issuance by PICA of up to $500 million in principal amount of surplus notes in return for a corresponding amount of credit-linked notes issued by a special-purpose wholly owned subsidiary of the Company. As of March 31, 2026, $381 million in principal amount of these surplus notes and credit-linked notes were outstanding. The surplus notes and credit-linked notes eliminate upon consolidation and are not reflected in the Company’s financial statements nor in the table above.

PICA holds these credit-linked notes as assets supporting statutory requirements and can redeem the principal amount of these outstanding credit-linked notes for cash upon the occurrence of specified liquidity stress events affecting PICA. Under the agreement, the external counterparty has agreed to fund any such payments under these credit-linked notes in return for the receipt of fees. To date, no such payments under these credit-linked notes have been required.

Senior Notes

In August 2024, the Company recommenced sales of InterNotes® Retail Notes under its shelf registration statement. These notes support the Company’s Retirement business through the purchase of funding agreements on which the segment will earn investment spread. As of March 31, 2026, the outstanding balance of the InterNotes® Retail Notes was $785 million of which $556 million was utilized for Retirement, as described above and $229 million were used for general corporate purposes.