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 June 30, 2026 and December 31, 2025, the Company recognized a policyholder dividend obligation of $1,585 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 $(1,308) million and $(1,064) million at June 30, 2026 and December 31, 2025, respectively, with a corresponding amount reported in AOCI.

As of June 30, 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:


	June 30, 2026		December 31, 2025
	(in millions)
Closed Block liabilities
Future policy benefits	$	40,582	$	41,484
Policyholders’ dividends payable	677		669
Policyholders’ dividend obligation	277		571
Policyholders’ account balances	4,212		4,273
Other Closed Block liabilities	2,923		3,030
Total Closed Block liabilities	48,671		50,027
Closed Block assets
Fixed maturities, available-for-sale, at fair value	27,793		28,721
Fixed maturities, trading, at fair value	550		581
Equity securities, at fair value	1,630		1,593
Commercial mortgage and other loans	7,475		7,464
Policy loans	3,157		3,217
Other invested assets	4,621		4,538
Short-term investments	282		255
Total investments	45,508		46,369
Cash and cash equivalents	286		726
Accrued investment income	386		388
Other Closed Block assets	264		279
Total Closed Block assets	46,444		47,762
Excess of reported Closed Block liabilities over Closed Block assets	2,227		2,265
Portion of above representing accumulated other comprehensive income (loss):
Net unrealized investment gains (losses)	(1,475)		(1,230)
Allocated to policyholder dividend obligation	1,308		1,064
Future earnings to be recognized from Closed Block assets and Closed Block liabilities	$	2,060	$	2,099


	Six Months Ended June 30, 2026
	(in millions)
Balance, December 31, 2025	$	571

Impact from earnings allocable to policyholder dividend obligation	(50)
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation	(244)
Balance, June 30, 2026	$	277


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions)
Revenues
Premiums	$	426	$	444	$	829	$	862
Net investment income	515		511		1,046		1,003
Realized investment gains (losses), net	(37)		(199)		(65)		(255)
Other income (loss)	230		190		204		156
Total Closed Block revenues	1,134		946		2,014		1,766
Benefits and Expenses
Policyholders’ benefits	587		616		1,159		1,217
Interest credited to policyholders’ account balances	28		28		55		56
Dividends to policyholders	464		249		679		377
General and administrative expenses	60		64		121		142
Total Closed Block benefits and expenses	1,139		957		2,014		1,792
Closed Block revenues, net of Closed Block benefits and expenses, before income taxes	(5)		(11)		0		(26)
Income tax expense (benefit)	(24)		(31)		(39)		(66)
Closed Block revenues, net of Closed Block benefits and expenses and income taxes	$	19	$	20	$	39	$	40