# EDGAR Filing Document

**Accession Number:** 0000828972
**File Stem:** 0000828972-26-000008
**Filing Date:** 2026-4
**Character Count:** 639169
**Document Hash:** b035f832e58a2f52bdf4f8545f1cca8d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000828972-26-000008.hdr.sgml**: 20260416

**ACCESSION NUMBER**: 0000828972-26-000008

**CONFORMED SUBMISSION TYPE**: N-VPFS

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260416

**DATE AS OF CHANGE**: 20260416

**EFFECTIVENESS DATE**: 20260416

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT
- **CENTRAL INDEX KEY:** 0000828972

**ORGANIZATION NAME:**
- **EIN:** 221121670
- **STATE OF INCORPORATION:** NJ
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-VPFS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-05466
- **FILM NUMBER:** 26866884

**BUSINESS ADDRESS:**
- **STREET 1:** PRUDENTIAL INSURANCE COMPANY OF AMERICA
- **STREET 2:** 213 WASHINGTON ST
- **CITY:** NEWARK
- **STATE:** NJ
- **ZIP:** 07102
- **BUSINESS PHONE:** 860-534-6087

**MAIL ADDRESS:**
- **STREET 1:** PRUDENTIAL INSURANCE COMPANY OF AMERICA
- **STREET 2:** 213 WASHINGTON ST
- **CITY:** NEWARK
- **STATE:** NJ
- **ZIP:** 07102

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRUDENTIAL VARIABLE LIFE INSURANCE ACCOUNT
- **DATE OF NAME CHANGE:** 19880606

## Series and Classes Contracts Data

### PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT (Series ID: S000000720)

| Class ID   | Class Name                                                      | Ticker Symbol   |
|:---|:---|:---|
| C000002100 | Prudential Variable Appreciable Life PVAL1                      |  |
| C000002101 | Prudential Custom Variable Appreciable Life PCVAL1              |  |
| C000002102 | Prudential Variable Universal Life PVUL1                        |  |
| C000002103 | Prudential Survivorship Preferred Variable Universal Life SVUL1 |  |

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF NET ASSETS**

December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **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** | | | | | |
| &nbsp;&nbsp;&nbsp;Investment in the portfolios, at fair value | $148369426 | $818255936 | $4032608166 | $1998163431 | $1325186945 |
| &nbsp;&nbsp;&nbsp;Net Assets | $148369426 | $818255936 | $4032608166 | $1998163431 | $1325186945 |
| **NET ASSETS**, representing: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accumulation units | $148369426 | $818255936 | $4032608166 | $1998163431 | $1325186945 |
|  | $148369426 | $818255936 | $4032608166 | $1998163431 | $1325186945 |
| &nbsp;&nbsp;&nbsp;Units outstanding | 64104140 | 118116375 | 119837929 | 128568639 | 116683389 |
| &nbsp;&nbsp;&nbsp;Portfolio shares held | 14836943 | 51495024 | 27666082 | 34427351 | 26755238 |
| &nbsp;&nbsp;&nbsp;Portfolio net asset value per share | $10.00 | $15.89 | $145.76 | $58.04 | $49.53 |
| &nbsp;&nbsp;&nbsp;Investment in portfolio shares, at cost | $148369426 | $652758414 | $691320484 | $519123236 | $375875073 |

---

**STATEMENTS OF OPERATIONS**

For the period ended December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **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)** |
| | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** |
| **INVESTMENT INCOME** | | | | | |
| &nbsp;&nbsp;&nbsp;Dividend income | $6331720 | $— | $— | $— | $— |
| **EXPENSES** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Charges for mortality and expense risk | 1069922 | 5255703 | 27217349 | 14509508 | 9703898 |
| &nbsp;&nbsp;&nbsp;Reimbursement for excess expenses |  |  |  |  |  |
| **NET INVESTMENT INCOME (LOSS)** | 5261798 | (5255703) | (27217349) | (14509508) | (9703898) |
| **NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed |  | 3599125 | 86454421 | 83584109 | 58674891 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments |  | 58512202 | 587684395 | 153916297 | 88918252 |
| **NET GAIN (LOSS) ON INVESTMENTS** |  | 62111327 | 674138816 | 237500406 | 147593143 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | $5261798 | $56855624 | $646921467 | $222990898 | $137889245 |

---

**The accompanying notes are an integral part of these financial statements.**

A1

------

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF NET ASSETS**

December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **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** | | | | | |
| &nbsp;&nbsp;&nbsp;Investment in the portfolios, at fair value | $163505967 | $2367714373 | $990789013 | $— | $477694439 |
| &nbsp;&nbsp;&nbsp;Net Assets | $163505967 | $2367714373 | $990789013 | $— | $477694439 |
| **NET ASSETS**, representing: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accumulation units | $163505967 | $2367714373 | $990789013 | $— | $477694439 |
|  | $163505967 | $2367714373 | $990789013 | $— | $477694439 |
| &nbsp;&nbsp;&nbsp;Units outstanding | 17183369 | 63179354 | 36206682 |  | 53395668 |
| &nbsp;&nbsp;&nbsp;Portfolio shares held | 20881988 | 13973763 | 13863006 |  | 6160620 |
| &nbsp;&nbsp;&nbsp;Portfolio net asset value per share | $7.83 | $169.44 | $71.47 | $— | $77.54 |
| &nbsp;&nbsp;&nbsp;Investment in portfolio shares, at cost | $99069603 | $218988617 | $207248663 | $— | $91385184 |

---

**STATEMENTS OF OPERATIONS**

For the period ended December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **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)** |
| | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**4/11/2025\*\*** | **1/1/2025**<br>**to**<br>**12/31/2025** |
| **INVESTMENT INCOME** | | | | | |
| &nbsp;&nbsp;&nbsp;Dividend income | $— | $— | $— | $— | $— |
| **EXPENSES** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Charges for mortality and expense risk | 1175184 | 16021044 | 6675413 | 637030 | 3087607 |
| &nbsp;&nbsp;&nbsp;Reimbursement for excess expenses | (108518) |  |  |  |  |
| **NET INVESTMENT INCOME (LOSS)** | (1066666) | (16021044) | (6675413) | (637030) | (3087607) |
| **NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed | 2784420 | 175618171 | 48038686 | 181434446 | 33013805 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | 10956265 | 187556524 | 98554942 | (199718410) | 55997238 |
| **NET GAIN (LOSS) ON INVESTMENTS** | 13740685 | 363174695 | 146593628 | (18283964) | 89011043 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | $12674019 | $347153651 | $139918215 | $(18920994) | $85923436 |

---

\*\*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** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF NET ASSETS**

December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **PSF PGIM Government Income Portfolio (Class I)\*\*** | **PSF PGIM Jennison Growth Portfolio (Class I)** | **PSF Small-Cap Stock Index Portfolio (Class I)** | **T. Rowe Price International Stock Portfolio** | **Janus Henderson VIT Research Portfolio (Institutional Shares)** |
| **ASSETS** | | | | | |
| &nbsp;&nbsp;&nbsp;Investment in the portfolios, at fair value | $— | $1852650368 | $480564853 | $1284804 | $10441777 |
| &nbsp;&nbsp;&nbsp;Net Assets | $— | $1852650368 | $480564853 | $1284804 | $10441777 |
| **NET ASSETS**, representing: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accumulation units | $— | $1852650368 | $480564853 | $1284804 | $10441777 |
|  | $— | $1852650368 | $480564853 | $1284804 | $10441777 |
| &nbsp;&nbsp;&nbsp;Units outstanding |  | 78692333 | 31116826 | 432797 | 943047 |
| &nbsp;&nbsp;&nbsp;Portfolio shares held |  | 8744692 | 7185479 | 80805 | 160890 |
| &nbsp;&nbsp;&nbsp;Portfolio net asset value per share | $— | $211.86 | $66.88 | $15.90 | $64.90 |
| &nbsp;&nbsp;&nbsp;Investment in portfolio shares, at cost | $— | $138212979 | $91461126 | $838861 | $3359976 |

---

**STATEMENTS OF OPERATIONS**

For the period ended December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **PSF PGIM Government Income Portfolio (Class I)** | **PSF PGIM Jennison Growth Portfolio (Class I)** | **PSF Small-Cap Stock Index Portfolio (Class I)** | **T. Rowe Price International Stock Portfolio** | **Janus Henderson VIT Research Portfolio (Institutional Shares)** |
| | **1/1/2025**<br>**to**<br>**4/25/2025\*\*** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** |
| **INVESTMENT INCOME** | | | | | |
| &nbsp;&nbsp;&nbsp;Dividend income | $— | $— | $— | $23977 | $11995 |
| **EXPENSES** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Charges for mortality and expense risk | 156160 | 12526841 | 3260750 | 7549 | 58746 |
| &nbsp;&nbsp;&nbsp;Reimbursement for excess expenses |  |  |  |  |  |
| **NET INVESTMENT INCOME (LOSS)** | (156160) | (12526841) | (3260750) | 16428 | (46751) |
| **NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received |  |  |  | 105310 | 737657 |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed | 10682227 | 115572308 | 31078842 | 15851 | 159221 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | (8645302) | 122209159 | (5647804) | 65833 | 777325 |
| **NET GAIN (LOSS) ON INVESTMENTS** | 2036925 | 237781467 | 25431038 | 186994 | 1674203 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | $1880765 | $225254626 | $22170288 | $203422 | $1627452 |

---

\*\*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** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF NET ASSETS**

December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **MFS® Growth Series (Initial Class)** | **LVIP American Century Value Fund (Standard Class II)** | **Janus Henderson VIT Research Portfolio (Service Shares)** | **PSF Mid-Cap Growth Portfolio (Class I)\*\*** | **AST Large-Cap Growth Portfolio** |
| **ASSETS** | | | | | |
| &nbsp;&nbsp;&nbsp;Investment in the portfolios, at fair value | $8414147 | $3785692 | $151639 | $— | $1519866 |
| &nbsp;&nbsp;&nbsp;Net Assets | $8414147 | $3785692 | $151639 | $— | $1519866 |
| **NET ASSETS**, representing: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accumulation units | $8414147 | $3785692 | $151639 | $— | $1519866 |
|  | $8414147 | $3785692 | $151639 | $— | $1519866 |
| &nbsp;&nbsp;&nbsp;Units outstanding | 646768 | 439919 | 19255 |  | 17424 |
| &nbsp;&nbsp;&nbsp;Portfolio shares held | 124011 | 293033 | 2476 |  | 13761 |
| &nbsp;&nbsp;&nbsp;Portfolio net asset value per share | $67.85 | $12.92 | $61.24 | $— | $110.45 |
| &nbsp;&nbsp;&nbsp;Investment in portfolio shares, at cost | $3730524 | $1866006 | $42033 | $— | $185469 |

---

**STATEMENTS OF OPERATIONS**

For the period ended December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **MFS® Growth Series (Initial Class)** | **LVIP American Century Value Fund (Standard Class II)** | **Janus Henderson VIT Research Portfolio (Service Shares)** | **PSF Mid-Cap Growth Portfolio (Class I)** | **AST Large-Cap Growth Portfolio** |
| | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**4/11/2025\*\*** | **1/1/2025**<br>**to**<br>**12/31/2025** |
| **INVESTMENT INCOME** | | | | | |
| &nbsp;&nbsp;&nbsp;Dividend income | $— | $58459 | $185 | $— | $— |
| **EXPENSES** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Charges for mortality and expense risk | 48114 | 21412 | 1288 | 3284 | 10992 |
| &nbsp;&nbsp;&nbsp;Reimbursement for excess expenses |  |  |  |  |  |
| **NET INVESTMENT INCOME (LOSS)** | (48114) | 37047 | (1103) | (3284) | (10992) |
| **NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received | 1458736 | 277846 | 11346 |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed | 5142 | 3158 | 3414 | 1120841 | 111213 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | (529325) | 195133 | 9172 | (1313872) | 124343 |
| **NET GAIN (LOSS) ON INVESTMENTS** | 934553 | 476137 | 23932 | (193031) | 235556 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | $886439 | $513184 | $22829 | $(196315) | $224564 |

---

\*\*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.**

A4

------

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF NET ASSETS**

December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **AST Large-Cap Value Portfolio** | **AST Small-Cap Equity Portfolio** | **AST Balanced Asset Allocation Portfolio** | **AST Preservation Asset Allocation Portfolio** | **AST Cohen & Steers Realty Portfolio\*\*** |
| **ASSETS** | | | | | |
| &nbsp;&nbsp;&nbsp;Investment in the portfolios, at fair value | $742646 | $595605 | $1403948 | $381827 | $— |
| &nbsp;&nbsp;&nbsp;Net Assets | $742646 | $595605 | $1403948 | $381827 | $— |
| **NET ASSETS**, representing: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accumulation units | $742646 | $595605 | $1403948 | $381827 | $— |
|  | $742646 | $595605 | $1403948 | $381827 | $— |
| &nbsp;&nbsp;&nbsp;Units outstanding | 21402 | 12930 | 45923 | 17552 |  |
| &nbsp;&nbsp;&nbsp;Portfolio shares held | 12169 | 6918 | 43819 | 16118 |  |
| &nbsp;&nbsp;&nbsp;Portfolio net asset value per share | $61.03 | $86.10 | $32.04 | $23.69 | $— |
| &nbsp;&nbsp;&nbsp;Investment in portfolio shares, at cost | $115492 | $101144 | $436623 | $209369 | $— |

---

**STATEMENTS OF OPERATIONS**

For the period ended December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **AST Large-Cap Value Portfolio** | **AST Small-Cap Equity Portfolio** | **AST Balanced Asset Allocation Portfolio** | **AST Preservation Asset Allocation Portfolio** | **AST Cohen & Steers Realty Portfolio** |
| | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**1/24/2025\*\*** |
| **INVESTMENT INCOME** | | | | | |
| &nbsp;&nbsp;&nbsp;Dividend income | $— | $— | $— | $— | $— |
| **EXPENSES** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Charges for mortality and expense risk | 5668 | 4222 | 10054 | 2568 | 23483 |
| &nbsp;&nbsp;&nbsp;Reimbursement for excess expenses |  |  |  |  |  |
| **NET INVESTMENT INCOME (LOSS)** | (5668) | (4222) | (10054) | (2568) | (23483) |
| **NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed | 42832 | 20622 | 32075 | 6594 | 1807716 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | 62720 | 18220 | 146000 | 33393 | (1019047) |
| **NET GAIN (LOSS) ON INVESTMENTS** | 105552 | 38842 | 178075 | 39987 | 788669 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | $99884 | $34620 | $168021 | $37419 | $765186 |

---

\*\*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.**

A5

------

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF NET ASSETS**

December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **AST Core Fixed Income Portfolio** | **AST J.P. Morgan Conservative Multi-Asset Portfolio** | **AST PGIM Aggressive Multi-Asset Portfolio** | **AST International Equity Portfolio** | **AST Large-Cap Equity Portfolio** |
| **ASSETS** | | | | | |
| &nbsp;&nbsp;&nbsp;Investment in the portfolios, at fair value | $887636 | $468705 | $252354 | $2122167 | $53148388 |
| &nbsp;&nbsp;&nbsp;Net Assets | $887636 | $468705 | $252354 | $2122167 | $53148388 |
| **NET ASSETS**, representing: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accumulation units | $887636 | $468705 | $252354 | $2122167 | $53148388 |
|  | $887636 | $468705 | $252354 | $2122167 | $53148388 |
| &nbsp;&nbsp;&nbsp;Units outstanding | 89882 | 38154 | 17218 | 138594 | 4848340 |
| &nbsp;&nbsp;&nbsp;Portfolio shares held | 61727 | 17206 | 8790 | 59478 | 1187143 |
| &nbsp;&nbsp;&nbsp;Portfolio net asset value per share | $14.38 | $27.24 | $28.71 | $35.68 | $44.77 |
| &nbsp;&nbsp;&nbsp;Investment in portfolio shares, at cost | $856471 | $374970 | $169070 | $1350170 | $47878617 |

---

**STATEMENTS OF OPERATIONS**

For the period ended December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **AST Core Fixed Income Portfolio** | **AST J.P. Morgan Conservative Multi-Asset Portfolio** | **AST PGIM Aggressive Multi-Asset Portfolio** | **AST International Equity Portfolio** | **AST Large-Cap Equity Portfolio** |
| | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/24/2025\***<br>**to**<br>**12/31/2025** |
| **INVESTMENT INCOME** | | | | | |
| &nbsp;&nbsp;&nbsp;Dividend income | $— | $— | $— | $— | $— |
| **EXPENSES** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Charges for mortality and expense risk | 7010 | 3197 | 1690 | 16598 | 348311 |
| &nbsp;&nbsp;&nbsp;Reimbursement for excess expenses |  |  |  |  |  |
| **NET INVESTMENT INCOME (LOSS)** | (7010) | (3197) | (1690) | (16598) | (348311) |
| **NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed | (4085) | 2716 | 559 | 28988 | (43516) |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | 62206 | 42317 | 34525 | 518220 | 5269771 |
| **NET GAIN (LOSS) ON INVESTMENTS** | 58121 | 45033 | 35084 | 547208 | 5226255 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | $51111 | $41836 | $33394 | $530610 | $4877944 |

---

\*Date subaccount became available for investment.

**The accompanying notes are an integral part of these financial statements.**

A6

------

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF CHANGES IN NET ASSETS**

For the period ended December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **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)** |
| | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** |
| **OPERATIONS** | | | | | |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) | $5261798 | $(5255703) | $(27217349) | $(14509508) | $(9703898) |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed |  | 3599125 | 86454421 | 83584109 | 58674891 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments |  | 58512202 | 587684395 | 153916297 | 88918252 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | 5261798 | 56855624 | 646921467 | 222990898 | 137889245 |
| **CONTRACT OWNER TRANSACTIONS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract owner net payments | 4840066 | 8159326 | 46014550 | 35113042 | 26485314 |
| &nbsp;&nbsp;&nbsp;Policy loans | (1097200) | (2860382) | (36202555) | (16812394) | (10431577) |
| &nbsp;&nbsp;&nbsp;Policy loan repayments and interest | 2651526 | 3525652 | 38991844 | 21917570 | 12291364 |
| &nbsp;&nbsp;&nbsp;Surrenders, withdrawals and death benefits | (52820418) | (64860952) | (200845259) | (102008228) | (70639085) |
| &nbsp;&nbsp;&nbsp;Net transfers between other subaccounts |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or fixed rate option | 93286044 | 45384067 | 235353030 | (20684292) | (16462233) |
| &nbsp;&nbsp;&nbsp;Miscellaneous transactions | (43292) | (281264) | (1107178) | (465572) | (403146) |
| &nbsp;&nbsp;&nbsp;Other charges | (2968686) | (5480481) | (29235267) | (23083620) | (16998691) |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM CONTRACT OWNER TRANSACTIONS** | 43848040 | (16414034) | 52969165 | (106023494) | (76158054) |
| **TOTAL INCREASE (DECREASE) IN NET ASSETS** | 49109838 | 40441590 | 699890632 | 116967404 | 61731191 |
| **NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of period | 99259588 | 777814346 | 3332717534 | 1881196027 | 1263455754 |
| &nbsp;&nbsp;&nbsp;End of period | $148369426 | $818255936 | $4032608166 | $1998163431 | $1325186945 |
| &nbsp;&nbsp;&nbsp;Beginning units | 45116186 | 119811650 | 116559478 | 135951748 | 123848475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units issued | 41507991 | 11293770 | 10761933 | 257317 | 292855 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units redeemed | (22520037) | (12989045) | (7483482) | (7640426) | (7457941) |
| &nbsp;&nbsp;&nbsp;Ending units | 64104140 | 118116375 | 119837929 | 128568639 | 116683389 |

---

**The accompanying notes are an integral part of these financial statements.**

A7

------

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF CHANGES IN NET ASSETS**

For the period ended December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **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)** |
| | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**4/11/2025\*\*** | **1/1/2025**<br>**to**<br>**12/31/2025** |
| **OPERATIONS** | | | | | |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) | $(1066666) | $(16021044) | $(6675413) | $(637030) | $(3087607) |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed | 2784420 | 175618171 | 48038686 | 181434446 | 33013805 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | 10956265 | 187556524 | 98554942 | (199718410) | 55997238 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | 12674019 | 347153651 | 139918215 | (18920994) | 85923436 |
| **CONTRACT OWNER TRANSACTIONS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract owner net payments | 3668951 | 25132800 | 13761525 | 2063314 | 7148845 |
| &nbsp;&nbsp;&nbsp;Policy loans | (1729107) | (22268426) | (9333361) | (1196963) | (4674999) |
| &nbsp;&nbsp;&nbsp;Policy loan repayments and interest | 1770449 | 21783752 | 10119085 | 1933025 | 5254670 |
| &nbsp;&nbsp;&nbsp;Surrenders, withdrawals and death benefits | (8834017) | (119500702) | (51833675) | (6824574) | (22461221) |
| &nbsp;&nbsp;&nbsp;Net transfers between other subaccounts |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or fixed rate option | (630748) | (65270692) | (9895488) | (282232501) | (20504788) |
| &nbsp;&nbsp;&nbsp;Miscellaneous transactions | (30966) | (1721617) | (348987) | 131074 | (724131) |
| &nbsp;&nbsp;&nbsp;Other charges | (2272523) | (18162819) | (8927199) | (1014458) | (4241387) |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM CONTRACT OWNER TRANSACTIONS** | (8057961) | (180007704) | (56458100) | (287141083) | (40203011) |
| **TOTAL INCREASE (DECREASE) IN NET ASSETS** | 4616058 | 167145947 | 83460115 | (306062077) | 45720425 |
| **NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of period | 158889909 | 2200568426 | 907328898 | 306062077 | 431974014 |
| &nbsp;&nbsp;&nbsp;End of period | $163505967 | $2367714373 | $990789013 | $— | $477694439 |
| &nbsp;&nbsp;&nbsp;Beginning units | 18067403 | 68496188 | 38531795 | 14812895 | 58424905 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units issued | 233110 | 131445 | 101138 | 34075 | 459746 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units redeemed | (1117144) | (5448279) | (2426251) | (14846970) | (5488983) |
| &nbsp;&nbsp;&nbsp;Ending units | 17183369 | 63179354 | 36206682 |  | 53395668 |

---

\*\*Date subaccount was no longer available for investment.

**The accompanying notes are an integral part of these financial statements.**

A8

------

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF CHANGES IN NET ASSETS**

For the period ended December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **PSF PGIM Government Income Portfolio (Class I)** | **PSF PGIM Jennison Growth Portfolio (Class I)** | **PSF Small-Cap Stock Index Portfolio (Class I)** | **T. Rowe Price International Stock Portfolio** | **Janus Henderson VIT Research Portfolio (Institutional Shares)** |
| | **1/1/2025**<br>**to**<br>**4/25/2025\*\*** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** |
| **OPERATIONS** | | | | | |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) | $(156160) | $(12526841) | $(3260750) | $16428 | $(46751) |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received |  |  |  | 105310 | 737657 |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed | 10682227 | 115572308 | 31078842 | 15851 | 159221 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | (8645302) | 122209159 | (5647804) | 65833 | 777325 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | 1880765 | 225254626 | 22170288 | 203422 | 1627452 |
| **CONTRACT OWNER TRANSACTIONS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract owner net payments | 960406 | 18110801 | 7442099 | 60749 | 182082 |
| &nbsp;&nbsp;&nbsp;Policy loans | (255375) | (20636385) | (4932560) | (25314) | (76542) |
| &nbsp;&nbsp;&nbsp;Policy loan repayments and interest | 525244 | 17779124 | 6021654 | 34152 | 46999 |
| &nbsp;&nbsp;&nbsp;Surrenders, withdrawals and death benefits | (1835689) | (98303138) | (26264515) | (69484) | (560372) |
| &nbsp;&nbsp;&nbsp;Net transfers between other subaccounts |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or fixed rate option | (68112264) | (16288245) | (14067120) | (22253) | (18752) |
| &nbsp;&nbsp;&nbsp;Miscellaneous transactions | (3988) | (884949) | (231291) | (84) | 894 |
| &nbsp;&nbsp;&nbsp;Other charges | (413934) | (15844956) | (4905023) | (52788) | (254315) |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM CONTRACT OWNER TRANSACTIONS** | (69135600) | (116067748) | (36936756) | (75022) | (680006) |
| **TOTAL INCREASE (DECREASE) IN NET ASSETS** | (67254835) | 109186878 | (14766468) | 128400 | 947446 |
| **NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of period | 67254835 | 1743463490 | 495331321 | 1156404 | 9494331 |
| &nbsp;&nbsp;&nbsp;End of period | $— | $1852650368 | $480564853 | $1284804 | $10441777 |
| &nbsp;&nbsp;&nbsp;Beginning units | 16230354 | 84001874 | 33633037 | 458503 | 1009087 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units issued | 290262 | 185793 | 89044 | 18104 | 4353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units redeemed | (16520616) | (5495334) | (2605255) | (43810) | (70393) |
| &nbsp;&nbsp;&nbsp;Ending units |  | 78692333 | 31116826 | 432797 | 943047 |

---

\*\*Date subaccount was no longer available for investment.

**The accompanying notes are an integral part of these financial statements.**

A9

------

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF CHANGES IN NET ASSETS**

For the period ended December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **MFS® Growth Series (Initial Class)** | **LVIP American Century Value Fund (Standard Class II)** | **Janus Henderson VIT Research Portfolio (Service Shares)** | **PSF Mid-Cap Growth Portfolio (Class I)** | **AST Large-Cap Growth Portfolio** |
| | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**4/11/2025\*\*** | **1/1/2025**<br>**to**<br>**12/31/2025** |
| **OPERATIONS** | | | | | |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) | $(48114) | $37047 | $(1103) | $(3284) | $(10992) |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received | 1458736 | 277846 | 11346 |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed | 5142 | 3158 | 3414 | 1120841 | 111213 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | (529325) | 195133 | 9172 | (1313872) | 124343 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | 886439 | 513184 | 22829 | (196315) | 224564 |
| **CONTRACT OWNER TRANSACTIONS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract owner net payments | 142238 | 108743 |  | 16155 | 60112 |
| &nbsp;&nbsp;&nbsp;Policy loans | (63850) | (105864) |  | (1122) | (7128) |
| &nbsp;&nbsp;&nbsp;Policy loan repayments and interest | 40404 | 48041 |  | 2914 | 9587 |
| &nbsp;&nbsp;&nbsp;Surrenders, withdrawals and death benefits | (227251) | (86425) |  | (133346) | (73718) |
| &nbsp;&nbsp;&nbsp;Net transfers between other subaccounts |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or fixed rate option | 29485 | 2185 |  | (1336716) | 3542 |
| &nbsp;&nbsp;&nbsp;Miscellaneous transactions | 1602 | 56 | (16) | (25) | 85 |
| &nbsp;&nbsp;&nbsp;Other charges | (239419) | (117549) | (12463) | (30642) | (141836) |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM CONTRACT OWNER TRANSACTIONS** | (316791) | (150813) | (12479) | (1482782) | (149356) |
| **TOTAL INCREASE (DECREASE) IN NET ASSETS** | 569648 | 362371 | 10350 | (1679097) | 75208 |
| **NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of period | 7844499 | 3423321 | 141289 | 1679097 | 1444658 |
| &nbsp;&nbsp;&nbsp;End of period | $8414147 | $3785692 | $151639 | $— | $1519866 |
| &nbsp;&nbsp;&nbsp;Beginning units | 672479 | 458796 | 20999 | 205283 | 19241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units issued | 6352 | 7826 |  | 1090 | 467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units redeemed | (32063) | (26703) | (1744) | (206373) | (2284) |
| &nbsp;&nbsp;&nbsp;Ending units | 646768 | 439919 | 19255 |  | 17424 |

---

\*\*Date subaccount was no longer available for investment.

**The accompanying notes are an integral part of these financial statements.**

A10

------

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF CHANGES IN NET ASSETS**

For the period ended December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **AST Large-Cap Value Portfolio** | **AST Small-Cap Equity Portfolio** | **AST Balanced Asset Allocation Portfolio** | **AST Preservation Asset Allocation Portfolio** | **AST Cohen & Steers Realty Portfolio** |
| | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**1/24/2025\*\*** |
| **OPERATIONS** | | | | | |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) | $(5668) | $(4222) | $(10054) | $(2568) | $(23483) |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed | 42832 | 20622 | 32075 | 6594 | 1807716 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | 62720 | 18220 | 146000 | 33393 | (1019047) |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | 99884 | 34620 | 168021 | 37419 | 765186 |
| **CONTRACT OWNER TRANSACTIONS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract owner net payments | 22362 | 33938 | 38314 | 10607 | 143700 |
| &nbsp;&nbsp;&nbsp;Policy loans | (1733) | (4483) | (14060) | (2007) | (39438) |
| &nbsp;&nbsp;&nbsp;Policy loan repayments and interest | 2330 | 11567 | 7780 | 1648 | 62306 |
| &nbsp;&nbsp;&nbsp;Surrenders, withdrawals and death benefits | (57225) | (19746) |  |  | (283690) |
| &nbsp;&nbsp;&nbsp;Net transfers between other subaccounts |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or fixed rate option | 12744 | 2160 | (18834) |  | (47582947) |
| &nbsp;&nbsp;&nbsp;Miscellaneous transactions | (146) | (34) | (23) | 8 | 9763 |
| &nbsp;&nbsp;&nbsp;Other charges | (36679) | (48005) | (77346) | (31857) | (59797) |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM CONTRACT OWNER TRANSACTIONS** | (58347) | (24603) | (64169) | (21601) | (47750103) |
| **TOTAL INCREASE (DECREASE) IN NET ASSETS** | 41537 | 10017 | 103852 | 15818 | (46984917) |
| **NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of period | 701109 | 585588 | 1300096 | 366009 | 46984917 |
| &nbsp;&nbsp;&nbsp;End of period | $742646 | $595605 | $1403948 | $381827 | $— |
| &nbsp;&nbsp;&nbsp;Beginning units | 23259 | 13537 | 48247 | 18621 | 3961575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units issued | 811 | 808 | 1150 | 567 | 2400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units redeemed | (2668) | (1415) | (3474) | (1636) | (3963975) |
| &nbsp;&nbsp;&nbsp;Ending units | 21402 | 12930 | 45923 | 17552 |  |

---

\*\*Date subaccount was no longer available for investment.

**The accompanying notes are an integral part of these financial statements.**

A11

------

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF CHANGES IN NET ASSETS**

For the period ended December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **AST Core Fixed Income Portfolio** | **AST J.P. Morgan Conservative Multi-Asset Portfolio** | **AST PGIM Aggressive Multi-Asset Portfolio** | **AST International Equity Portfolio** | **AST Large-Cap Equity Portfolio** |
| | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/1/2025**<br>**to**<br>**12/31/2025** | **1/24/2025\***<br>**to**<br>**12/31/2025** |
| **OPERATIONS** | | | | | |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) | $(7010) | $(3197) | $(1690) | $(16598) | $(348311) |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed | (4085) | 2716 | 559 | 28988 | (43516) |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | 62206 | 42317 | 34525 | 518220 | 5269771 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | 51111 | 41836 | 33394 | 530610 | 4877944 |
| **CONTRACT OWNER TRANSACTIONS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract owner net payments | 31000 | 21025 | 2492 | 33885 | 1856964 |
| &nbsp;&nbsp;&nbsp;Policy loans | (6557) | (8047) |  | (10146) | (628115) |
| &nbsp;&nbsp;&nbsp;Policy loan repayments and interest | 9804 | 3014 | 1253 | 12394 | 711669 |
| &nbsp;&nbsp;&nbsp;Surrenders, withdrawals and death benefits | (54505) | (6595) |  | (59952) | (2392132) |
| &nbsp;&nbsp;&nbsp;Net transfers between other subaccounts |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or fixed rate option | 39784 |  |  | 15566 | 49812312 |
| &nbsp;&nbsp;&nbsp;Miscellaneous transactions |  | (1) | 20 | (193) | (256233) |
| &nbsp;&nbsp;&nbsp;Other charges | (50868) | (21986) | (6709) | (69561) | (834021) |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM CONTRACT OWNER TRANSACTIONS** | (31342) | (12590) | (2944) | (78007) | 48270444 |
| **TOTAL INCREASE (DECREASE) IN NET ASSETS** | 19769 | 29246 | 30450 | 452603 | 53148388 |
| **NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of period | 867867 | 439459 | 221904 | 1669564 |  |
| &nbsp;&nbsp;&nbsp;End of period | $887636 | $468705 | $252354 | $2122167 | $53148388 |
| &nbsp;&nbsp;&nbsp;Beginning units | 93398 | 39206 | 17437 | 143597 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units issued | 7618 | 1563 | 220 | 5535 | 5342632 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units redeemed | (11134) | (2615) | (439) | (10538) | (494292) |
| &nbsp;&nbsp;&nbsp;Ending units | 89882 | 38154 | 17218 | 138594 | 4848340 |

---

\*Date subaccount became available for investment.

**The accompanying notes are an integral part of these financial statements.**

A12

------

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF CHANGES IN NET ASSETS**

For the period ended December 31, 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **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)** |
| | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** |
| **OPERATIONS** | | | | | |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) | $4080305 | $(4651968) | $(23618736) | $(14040342) | $(9443222) |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed |  | 1164650 | 172620337 | 73532682 | 50756113 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments |  | 23836862 | 550802851 | 188521649 | 100134881 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | 4080305 | 20349544 | 699804452 | 248013989 | 141447772 |
| **CONTRACT OWNER TRANSACTIONS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract owner net payments | 4727795 | 6628989 | 44050460 | 36623342 | 27699217 |
| &nbsp;&nbsp;&nbsp;Policy loans | (1239514) | (2002310) | (32596300) | (16457806) | (10709406) |
| &nbsp;&nbsp;&nbsp;Policy loan repayments and interest | 2538625 | 2849644 | 33841077 | 20092025 | 13618242 |
| &nbsp;&nbsp;&nbsp;Surrenders, withdrawals and death benefits | (11397117) | (38049737) | (168088282) | (91619035) | (64681418) |
| &nbsp;&nbsp;&nbsp;Net transfers between other subaccounts |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or fixed rate option | 7687611 | 241414526 | (37700967) | (20660330) | (15883978) |
| &nbsp;&nbsp;&nbsp;Miscellaneous transactions | (21778) | (407597) | (1746783) | (724932) | (496433) |
| &nbsp;&nbsp;&nbsp;Other charges | (2675102) | (4648491) | (28776432) | (24427258) | (18216763) |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM CONTRACT OWNER TRANSACTIONS** | (379480) | 205785024 | (191017227) | (97173994) | (68670539) |
| **TOTAL INCREASE (DECREASE) IN NET ASSETS** | 3700825 | 226134568 | 508787225 | 150839995 | 72777233 |
| **NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of period | 95558763 | 551679778 | 2823930309 | 1730356032 | 1190678521 |
| &nbsp;&nbsp;&nbsp;End of period | $99259588 | $777814346 | $3332717534 | $1881196027 | $1263455754 |
| &nbsp;&nbsp;&nbsp;Beginning units | 45185885 | 87609522 | 123832975 | 143318474 | 130992059 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units issued | 6226735 | 40922437 | 76674 | 200499 | 337182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units redeemed | (6296434) | (8720309) | (7350171) | (7567225) | (7480766) |
| &nbsp;&nbsp;&nbsp;Ending units | 45116186 | 119811650 | 116559478 | 135951748 | 123848475 |

---

**The accompanying notes are an integral part of these financial statements.**

A13

------

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF CHANGES IN NET ASSETS**

For the period ended December 31, 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **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)** |
| | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** |
| **OPERATIONS** | | | | | |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) | $(1144250) | $(15086541) | $(6316151) | $(2385063) | $(3402375) |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed | 2352976 | 106338639 | 40008900 | 12415458 | 208362404 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | 10527563 | 344345529 | 123553665 | 1600509 | (125155856) |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | 11736289 | 435597627 | 157246414 | 11630904 | 79804173 |
| **CONTRACT OWNER TRANSACTIONS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract owner net payments | 3708934 | 26240473 | 14739810 | 7194578 | 7575519 |
| &nbsp;&nbsp;&nbsp;Policy loans | (1604035) | (21789254) | (9628651) | (4112126) | (5172809) |
| &nbsp;&nbsp;&nbsp;Policy loan repayments and interest | 1747816 | 22620804 | 10392119 | 5654265 | 5132246 |
| &nbsp;&nbsp;&nbsp;Surrenders, withdrawals and death benefits | (8400256) | (105538649) | (46330812) | (17107495) | (23632513) |
| &nbsp;&nbsp;&nbsp;Net transfers between other subaccounts |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or fixed rate option | (686585) | (14062576) | (9538899) | (5908732) | (263497397) |
| &nbsp;&nbsp;&nbsp;Miscellaneous transactions | (60091) | (1037190) | (345864) | (34879) | (468325) |
| &nbsp;&nbsp;&nbsp;Other charges | (2145909) | (18875778) | (9427678) | (3809716) | (4642683) |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM CONTRACT OWNER TRANSACTIONS** | (7440126) | (112442170) | (50139975) | (18124105) | (284705962) |
| **TOTAL INCREASE (DECREASE) IN NET ASSETS** | 4296163 | 323155457 | 107106439 | (6493201) | (204901789) |
| **NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of period | 154593746 | 1877412969 | 800222459 | 312555278 | 636875803 |
| &nbsp;&nbsp;&nbsp;End of period | $158889909 | $2200568426 | $907328898 | $306062077 | $431974014 |
| &nbsp;&nbsp;&nbsp;Beginning units | 18890447 | 72323761 | 40814343 | 15666471 | 97267584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units issued | 338001 | 141135 | 94066 | 162655 | 270993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units redeemed | (1161045) | (3968708) | (2376614) | (1016231) | (39113672) |
| &nbsp;&nbsp;&nbsp;Ending units | 18067403 | 68496188 | 38531795 | 14812895 | 58424905 |

---

**The accompanying notes are an integral part of these financial statements.**

A14

------

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF CHANGES IN NET ASSETS**

For the period ended December 31, 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **PSF PGIM Government Income Portfolio (Class I)** | **PSF PGIM Jennison Growth Portfolio (Class I)** | **PSF Small-Cap Stock Index Portfolio (Class I)** | **T. Rowe Price International Stock Portfolio** | **Janus Henderson VIT Research Portfolio (Institutional Shares)** |
| | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** |
| **OPERATIONS** | | | | | |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) | $(502687) | $(11555570) | $(3440513) | $4041 | $(50121) |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received |  |  |  | 29032 | 249066 |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed | 433247 | 96449024 | 23425991 | 3284 | 174576 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | 260147 | 331497202 | 15633525 | (5023) | 2160432 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | 190707 | 416390656 | 35619003 | 31334 | 2533953 |
| **CONTRACT OWNER TRANSACTIONS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract owner net payments | 2901673 | 19175776 | 8152477 | 60422 | 184096 |
| &nbsp;&nbsp;&nbsp;Policy loans | (926548) | (20739827) | (5908216) | (28634) | (105240) |
| &nbsp;&nbsp;&nbsp;Policy loan repayments and interest | 1166944 | 16698075 | 6176132 | 20648 | 70444 |
| &nbsp;&nbsp;&nbsp;Surrenders, withdrawals and death benefits | (3728122) | (87227837) | (25540434) | (33689) | (525983) |
| &nbsp;&nbsp;&nbsp;Net transfers between other subaccounts |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or fixed rate option | (1132497) | (8997595) | (5188230) | 17779 | (27531) |
| &nbsp;&nbsp;&nbsp;Miscellaneous transactions | (5116) | (894494) | (61183) | (145) | (4408) |
| &nbsp;&nbsp;&nbsp;Other charges | (1343214) | (16036097) | (5446229) | (51627) | (242019) |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM CONTRACT OWNER TRANSACTIONS** | (3066880) | (98021999) | (27815683) | (15246) | (650641) |
| **TOTAL INCREASE (DECREASE) IN NET ASSETS** | (2876173) | 318368657 | 7803320 | 16088 | 1883312 |
| **NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of period | 70131008 | 1425094833 | 487528001 | 1140316 | 7611019 |
| &nbsp;&nbsp;&nbsp;End of period | $67254835 | $1743463490 | $495331321 | $1156404 | $9494331 |
| &nbsp;&nbsp;&nbsp;Beginning units | 16976351 | 89223572 | 35618022 | 464024 | 1088014 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units issued | 423619 | 93339 | 149842 | 22909 | 7581 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units redeemed | (1169616) | (5315037) | (2134827) | (28430) | (86508) |
| &nbsp;&nbsp;&nbsp;Ending units | 16230354 | 84001874 | 33633037 | 458503 | 1009087 |

---

**The accompanying notes are an integral part of these financial statements.**

A15

------

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF CHANGES IN NET ASSETS**

For the period ended December 31, 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **MFS® Growth Series (Initial Class)** | **LVIP American Century Value Fund (Standard Class II)** | **Janus Henderson VIT Research Portfolio (Service Shares)** | **PSF Mid-Cap Growth Portfolio (Class I)** | **AST Large-Cap Growth Portfolio** |
| | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** |
| **OPERATIONS** | | | | | |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) | $(44105) | $79476 | $(1194) | $(11553) | $(10280) |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received | 564217 | 195539 | 3966 |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed | 89920 | 3679 | 2249 | 64383 | 86539 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | 1295104 | 5939 | 32604 | 144512 | 263354 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | 1905136 | 284633 | 37625 | 197342 | 339613 |
| **CONTRACT OWNER TRANSACTIONS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract owner net payments | 131911 | 120700 |  | 62004 | 58278 |
| &nbsp;&nbsp;&nbsp;Policy loans | (75510) | (63806) |  | (12649) | (10321) |
| &nbsp;&nbsp;&nbsp;Policy loan repayments and interest | 51370 | 69153 |  | 11221 | 9394 |
| &nbsp;&nbsp;&nbsp;Surrenders, withdrawals and death benefits | (410814) | (139833) |  | (60720) | (24715) |
| &nbsp;&nbsp;&nbsp;Net transfers between other subaccounts |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or fixed rate option | 75612 | (47061) |  | 116834 | (5996) |
| &nbsp;&nbsp;&nbsp;Miscellaneous transactions | (2216) | 121 |  | (742) | (593) |
| &nbsp;&nbsp;&nbsp;Other charges | (221346) | (123927) | (11428) | (99359) | (129804) |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM CONTRACT OWNER TRANSACTIONS** | (450993) | (184653) | (11428) | 16589 | (103757) |
| **TOTAL INCREASE (DECREASE) IN NET ASSETS** | 1454143 | 99980 | 26197 | 213931 | 235856 |
| **NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of period | 6390356 | 3323341 | 115092 | 1465166 | 1208802 |
| &nbsp;&nbsp;&nbsp;End of period | $7844499 | $3423321 | $141289 | $1679097 | $1444658 |
| &nbsp;&nbsp;&nbsp;Beginning units | 715879 | 484709 | 22878 | 202722 | 20808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units issued | 11749 | 11369 |  | 23506 | 552 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units redeemed | (55149) | (37282) | (1879) | (20945) | (2119) |
| &nbsp;&nbsp;&nbsp;Ending units | 672479 | 458796 | 20999 | 205283 | 19241 |

---

**The accompanying notes are an integral part of these financial statements.**

A16

------

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF CHANGES IN NET ASSETS**

For the period ended December 31, 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **AST Large-Cap Value Portfolio** | **AST Small-Cap Equity Portfolio** | **AST Balanced Asset Allocation Portfolio** | **AST Preservation Asset Allocation Portfolio** | **AST Cohen & Steers Realty Portfolio** |
| | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** |
| **OPERATIONS** | | | | | |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) | $(5798) | $(4190) | $(9601) | $(2545) | $(363409) |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed | 30790 | 13789 | 10185 | 34016 | (50591) |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | 34053 | 62547 | 130741 | (7160) | 3078683 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | 59045 | 72146 | 131325 | 24311 | 2664683 |
| **CONTRACT OWNER TRANSACTIONS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract owner net payments | 27269 | 32452 | 40013 | 18654 | 1705378 |
| &nbsp;&nbsp;&nbsp;Policy loans | (7288) | (5902) | (3280) | (1955) | (544338) |
| &nbsp;&nbsp;&nbsp;Policy loan repayments and interest | 36955 | 6437 | 4531 | 1684 | 749159 |
| &nbsp;&nbsp;&nbsp;Surrenders, withdrawals and death benefits | (33027) | (12550) |  | (63856) | (2410879) |
| &nbsp;&nbsp;&nbsp;Net transfers between other subaccounts |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or fixed rate option | (9514) | 12075 |  |  | (924129) |
| &nbsp;&nbsp;&nbsp;Miscellaneous transactions | (101) | (293) | 17 | 17 | (36033) |
| &nbsp;&nbsp;&nbsp;Other charges | (42118) | (44196) | (68869) | (28285) | (920609) |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM CONTRACT OWNER TRANSACTIONS** | (27824) | (11977) | (27588) | (73741) | (2381451) |
| **TOTAL INCREASE (DECREASE) IN NET ASSETS** | 31221 | 60169 | 103737 | (49430) | 283232 |
| **NET ASSETS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of period | 669888 | 525419 | 1196359 | 415439 | 46701685 |
| &nbsp;&nbsp;&nbsp;End of period | $701109 | $585588 | $1300096 | $366009 | $46984917 |
| &nbsp;&nbsp;&nbsp;Beginning units | 24196 | 13839 | 49319 | 22580 | 4168021 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units issued | 2213 | 822 | 1355 | 951 | 45819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units redeemed | (3150) | (1124) | (2427) | (4910) | (252265) |
| &nbsp;&nbsp;&nbsp;Ending units | 23259 | 13537 | 48247 | 18621 | 3961575 |

---

**The accompanying notes are an integral part of these financial statements.**

A17

------

**FINANCIAL STATEMENTS OF** 

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT**

**STATEMENTS OF CHANGES IN NET ASSETS**

For the period ended December 31, 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** | **SUBACCOUNTS** |
| | **AST Core Fixed Income Portfolio** | **AST J.P. Morgan Conservative Multi-Asset Portfolio** | **AST PGIM Aggressive Multi-Asset Portfolio** | **AST International Equity Portfolio** |
| | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** | **1/1/2024**<br>**to**<br>**12/31/2024** |
| **OPERATIONS** | | | | |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) | $(6843) | $(3079) | $(1490) | $(13966) |
| &nbsp;&nbsp;&nbsp;Capital gains distributions received |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on shares redeemed | (3915) | 974 | 417 | 18576 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | 14412 | 25196 | 25014 | 70828 |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM OPERATIONS** | 3654 | 23091 | 23941 | 75438 |
| **CONTRACT OWNER TRANSACTIONS** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract owner net payments | 30385 | 20526 | 4172 | 36295 |
| &nbsp;&nbsp;&nbsp;Policy loans | (4141) | (2935) | (122) | (11176) |
| &nbsp;&nbsp;&nbsp;Policy loan repayments and interest | 7735 | 5138 | 1499 | 12738 |
| &nbsp;&nbsp;&nbsp;Surrenders, withdrawals and death benefits | (1465) | (5644) | (357) | (43084) |
| &nbsp;&nbsp;&nbsp;Net transfers between other subaccounts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or fixed rate option | 80010 |  | 12091 | 54979 |
| &nbsp;&nbsp;&nbsp;Miscellaneous transactions | (37) | (49) | 1 | (13) |
| &nbsp;&nbsp;&nbsp;Other charges | (44583) | (19327) | (5970) | (57805) |
| **NET INCREASE (DECREASE) IN NET ASSETS** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**RESULTING FROM CONTRACT OWNER TRANSACTIONS** | 67904 | (2291) | 11314 | (8066) |
| **TOTAL INCREASE (DECREASE) IN NET ASSETS** | 71558 | 20800 | 35255 | 67372 |
| **NET ASSETS** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of period | 796309 | 418659 | 186649 | 1602192 |
| &nbsp;&nbsp;&nbsp;End of period | $867867 | $439459 | $221904 | $1669564 |
| &nbsp;&nbsp;&nbsp;Beginning units | 86197 | 39386 | 16554 | 144076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units issued | 13064 | 1734 | 1326 | 12289 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units redeemed | (5863) | (1914) | (443) | (12768) |
| &nbsp;&nbsp;&nbsp;Ending units | 93398 | 39206 | 17437 | 143597 |

---

**The accompanying notes are an integral part of these financial statements.**

A18

------

**NOTES TO FINANCIAL STATEMENTS OF**

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT** 

**Note 1:&nbsp;&nbsp;&nbsp;&nbsp;General**

The Prudential Variable Appreciable Account (the "Account") was established under the laws of the State of New Jersey on August 11, 1987 as a separate investment account of The Prudential Insurance Company of America ("Prudential"), which 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 Prudential. Proceeds from purchases of Variable Appreciable Life® ("PVAL"), Survivorship Preferred® ("SVUL"), Custom VAL<sup>SM</sup> ("CVAL"), and Variable Universal Life ("VUL") contracts (individually, a "contract" or "product" and collectively, the "contracts" or "products") are invested in the Account. The portion of the Account's assets applicable to the contracts is not chargeable with liabilities arising out of any other business Prudential 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 contracts. The contracts offer the option to invest in various subaccounts listed below, each of which invests in a corresponding portfolio of either The Prudential Series Fund, the Advanced Series Trust or one of the non-Prudential administered funds (collectively, the "Portfolios"). Investment options vary by contract.

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) |
| T. Rowe Price International Stock Portfolio |
| Janus Henderson VIT Research Portfolio (Institutional Shares) |
| MFS® Growth Series (Initial Class) |
| LVIP American Century Value Fund (Standard Class II) |
| Janus Henderson VIT Research Portfolio (Service Shares) |
| PSF Mid-Cap Growth Portfolio (Class I)\* |
| AST Large-Cap Growth Portfolio |
| AST Large-Cap Value Portfolio |
| AST Small-Cap Equity Portfolio |
| AST Balanced Asset Allocation Portfolio |
| AST Preservation Asset Allocation Portfolio |
| AST Cohen & Steers Realty Portfolio\* |
| AST Core Fixed Income Portfolio |
| AST J.P. Morgan Conservative Multi-Asset Portfolio |
| AST PGIM Aggressive Multi-Asset Portfolio (formerly AST Prudential Growth Allocation Portfolio) |
| AST International Equity Portfolio |
| AST Large-Cap Equity Portfolio |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\* Subaccount merged during the period ended December 31, 2025.

A19

------

**NOTES TO FINANCIAL STATEMENTS OF**

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT—(Continued)**

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.

---

| | | |
|:---|:---|:---|
| **<u>Merger Date</u>** | **<u>Removed Portfolio</u>** | **<u>Surviving Portfolio</u>** |
| January 24, 2025 | AST Cohen & Steers Realty Portfolio | AST Large-Cap Equity Portfolio |
| April 11, 2025 | PSF Natural Resources Portfolio (Class I) | PSF PGIM Jennison Blend Portfolio (Class I) |
| April 11, 2025 | PSF Mid-Cap Growth Portfolio (Class I) | PSF PGIM Jennison Growth Portfolio (Class I) |
| April 25, 2025 | PSF PGIM Government Income Portfolio (Class I) | PSF PGIM Total Return Bond Portfolio (Class I) |

---

New sales of certain products which invest 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 products and any optional benefits, if elected.

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:&nbsp;&nbsp;&nbsp;&nbsp;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.

A20

------

**NOTES TO FINANCIAL STATEMENTS OF**

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT—(Continued)**

<u>Investments</u> - 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.

<u>Security Transactions</u> - 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 specific identification method.

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

**Note 3:&nbsp;&nbsp;&nbsp;&nbsp;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:&nbsp;&nbsp;&nbsp;&nbsp;Taxes**

Prudential 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:&nbsp;&nbsp;&nbsp;&nbsp;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:

---

| | | |
|:---|:---|:---|
| | **Purchases** | **Sales** |
| PSF PGIM Government Money Market Portfolio (Class I) | $95719842 | $52941723 |
| PSF PGIM Total Return Bond Portfolio (Class I) | 71464321 | 93134058 |
| PSF PGIM Jennison Blend Portfolio (Class I) | 278918526 | 253166710 |
| PSF PGIM Flexible Managed Portfolio (Class I) | 2686286 | 123219289 |
| PSF PGIM 50/50 Balanced Portfolio (Class I) | 2329581 | 88191533 |

---

A21

------

**NOTES TO FINANCIAL STATEMENTS OF**

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT—(Continued)**

---

| | | |
|:---|:---|:---|
| | **Purchases** | **Sales** |
| PSF PGIM High Yield Bond Portfolio (Class I) | $1732127 | $10856752 |
| PSF Stock Index Portfolio (Class I) | 2078332 | 198107080 |
| PSF PGIM Jennison Value Portfolio (Class I) | 1781425 | 64914938 |
| PSF Natural Resources Portfolio (Class I) | 700200 | 288478312 |
| PSF Global Portfolio (Class I) | 3383406 | 46674023 |
| PSF PGIM Government Income Portfolio (Class I) | 1203707 | 70495466 |
| PSF PGIM Jennison Growth Portfolio (Class I) | 2868949 | 131463538 |
| PSF Small-Cap Stock Index Portfolio (Class I) | 968586 | 41166092 |
| T. Rowe Price International Stock Portfolio | 46532 | 129103 |
| Janus Henderson VIT Research Portfolio (Institutional Shares) | 33498 | 772251 |
| MFS® Growth Series (Initial Class) | 72413 | 437317 |
| LVIP American Century Value Fund (Standard Class II) | 55053 | 227277 |
| Janus Henderson VIT Research Portfolio (Service Shares) |  | 13766 |
| PSF Mid-Cap Growth Portfolio (Class I) | 8140 | 1494207 |
| AST Large-Cap Growth Portfolio | 36608 | 196957 |
| AST Large-Cap Value Portfolio | 24912 | 88926 |
| AST Small-Cap Equity Portfolio | 33940 | 62764 |
| AST Balanced Asset Allocation Portfolio | 31384 | 105606 |
| AST Preservation Asset Allocation Portfolio | 11469 | 35639 |
| AST Cohen & Steers Realty Portfolio | 25145 | 47798731 |
| AST Core Fixed Income Portfolio | 72758 | 111110 |
| AST J.P. Morgan Conservative Multi-Asset Portfolio | 17841 | 33628 |
| AST PGIM Aggressive Multi-Asset Portfolio | 2822 | 7456 |
| AST International Equity Portfolio | 71864 | 166469 |
| AST Large-Cap Equity Portfolio | 53028721 | 5106589 |

---

**Note 6:&nbsp;&nbsp;&nbsp;&nbsp;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.

A22

------

**NOTES TO FINANCIAL STATEMENTS OF**

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT—(Continued)**

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.

A23

------

**Note 7:&nbsp;&nbsp;&nbsp;&nbsp;Financial Highlights**

Prudential sells a number of variable life insurance products that are funded through the Account. These products have unique combinations of features and fees that are charged against the contract owner's account balance. Differences in the fee structures result in a variety of unit values, expense ratios and total returns.

In the table below, the units outstanding, the ranges of lowest to highest unit values, the net assets, the investment income ratio, expense ratios, and total returns are presented for the products offered by Prudential and funded through the Account. Only product designs within each subaccount that had units outstanding during the respective periods were considered when determining the ranges. The summary may not reflect the minimum and maximum contract charges as contract owners may not have selected all available contract options offered by Prudential.

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **At the period ended** | **At the period ended** | **At the period ended** | **At the period ended** | **At the period ended** | **For the period ended** | **For the period ended** | **For the period ended** | **For the period ended** | **For the period ended** | **For the period ended** | **For the period ended** |
| | **Units Outstanding**<br>**(000s)** | **Unit Value<br>Lowest — Highest** | **Unit Value<br>Lowest — Highest** | **Unit Value<br>Lowest — Highest** | **Net<br>Assets<br>(000s)** | **Investment<br>Income<br>Ratio\*** | **Expense Ratio\*\*<br>Lowest — Highest** | **Expense Ratio\*\*<br>Lowest — Highest** | **Expense Ratio\*\*<br>Lowest — Highest** | **Total Return\*\*\*<br>Lowest — Highest** | **Total Return\*\*\*<br>Lowest — Highest** | **Total Return\*\*\*<br>Lowest — Highest** |
| | **PSF PGIM Government Money Market Portfolio (Class I)** | **PSF PGIM Government Money Market Portfolio (Class I)** | **PSF PGIM Government Money Market Portfolio (Class I)** | **PSF PGIM Government Money Market Portfolio (Class I)** | **PSF PGIM Government Money Market Portfolio (Class I)** | **PSF PGIM Government Money Market Portfolio (Class I)** | **PSF PGIM Government Money Market Portfolio (Class I)** | **PSF PGIM Government Money Market Portfolio (Class I)** | **PSF PGIM Government Money Market Portfolio (Class I)** | **PSF PGIM Government Money Market Portfolio (Class I)** | **PSF PGIM Government Money Market Portfolio (Class I)** | **PSF PGIM Government Money Market Portfolio (Class I)** |
| December 31, 2025 | 64104 | $1.53 | to | $2.42 | $148369 | 3.96% | 0.60% | to | 0.90% | 3.11% | to | 3.43% |
| December 31, 2024 | 45116 | $1.48 | to | $2.34 | $99260 | 4.89% | 0.60% | to | 0.90% | 4.07% | to | 4.39% |
| December 31, 2023 | 45186 | $1.42 | to | $2.24 | $95559 | 4.77% | 0.60% | to | 0.90% | 3.95% | to | 4.28% |
| December 31, 2022 | 46977 | $1.37 | to | $2.15 | $95464 | 1.38% | 0.60% | to | 0.90% | 0.48% | to | 0.80% |
| December 31, 2021 | 46320 | $1.36 | to | $2.13 | $93190 | 0.04% | 0.60% | to | 0.90% | -0.87% | to | -0.51% |
|  | **PSF PGIM Total Return Bond Portfolio (Class I)** | **PSF PGIM Total Return Bond Portfolio (Class I)** | **PSF PGIM Total Return Bond Portfolio (Class I)** | **PSF PGIM Total Return Bond Portfolio (Class I)** | **PSF PGIM Total Return Bond Portfolio (Class I)** | **PSF PGIM Total Return Bond Portfolio (Class I)** | **PSF PGIM Total Return Bond Portfolio (Class I)** | **PSF PGIM Total Return Bond Portfolio (Class I)** | **PSF PGIM Total Return Bond Portfolio (Class I)** | **PSF PGIM Total Return Bond Portfolio (Class I)** | **PSF PGIM Total Return Bond Portfolio (Class I)** | **PSF PGIM Total Return Bond Portfolio (Class I)** |
| December 31, 2025 | 118116 | $3.36 | to | $7.09 | $818256 | 0.00% | 0.60% | to | 0.90% | 6.84% | to | 7.16% |
| December 31, 2024 | 119812 | $3.15 | to | $6.62 | $777814 | 0.00% | 0.60% | to | 0.90% | 2.08% | to | 2.39% |
| December 31, 2023 | 87610 | $3.08 | to | $6.47 | $551680 | 0.00% | 0.60% | to | 0.90% | 6.32% | to | 6.64% |
| December 31, 2022 | 53706 | $2.90 | to | $6.06 | $311484 | 0.00% | 0.60% | to | 0.90% | -15.57% | to | -15.32% |
| December 31, 2021 | 55472 | $3.43 | to | $7.16 | $380229 | 0.00% | 0.60% | to | 0.90% | -1.65% | to | -1.35% |
|  | **PSF PGIM Jennison Blend Portfolio (Class I)** | **PSF PGIM Jennison Blend Portfolio (Class I)** | **PSF PGIM Jennison Blend Portfolio (Class I)** | **PSF PGIM Jennison Blend Portfolio (Class I)** | **PSF PGIM Jennison Blend Portfolio (Class I)** | **PSF PGIM Jennison Blend Portfolio (Class I)** | **PSF PGIM Jennison Blend Portfolio (Class I)** | **PSF PGIM Jennison Blend Portfolio (Class I)** | **PSF PGIM Jennison Blend Portfolio (Class I)** | **PSF PGIM Jennison Blend Portfolio (Class I)** | **PSF PGIM Jennison Blend Portfolio (Class I)** | **PSF PGIM Jennison Blend Portfolio (Class I)** |
| December 31, 2025 | 119838 | $10.50 | to | $36.02 | $4032608 | 0.00% | 0.60% | to | 0.90% | 17.47% | to | 17.82% |
| December 31, 2024 | 116559 | $8.91 | to | $30.57 | $3332718 | 0.00% | 0.60% | to | 0.90% | 25.18% | to | 25.56% |
| December 31, 2023 | 123833 | $7.10 | to | $24.35 | $2823930 | 0.00% | 0.60% | to | 0.90% | 31.34% | to | 31.73% |
| December 31, 2022 | 130064 | $5.39 | to | $18.49 | $2254573 | 0.00% | 0.60% | to | 0.90% | -25.77% | to | -25.55% |
| December 31, 2021 | 136378 | $7.24 | to | $24.83 | $3180134 | 0.00% | 0.60% | to | 0.90% | 19.28% | to | 19.64% |
|  | **PSF PGIM Flexible Managed Portfolio (Class I)** | **PSF PGIM Flexible Managed Portfolio (Class I)** | **PSF PGIM Flexible Managed Portfolio (Class I)** | **PSF PGIM Flexible Managed Portfolio (Class I)** | **PSF PGIM Flexible Managed Portfolio (Class I)** | **PSF PGIM Flexible Managed Portfolio (Class I)** | **PSF PGIM Flexible Managed Portfolio (Class I)** | **PSF PGIM Flexible Managed Portfolio (Class I)** | **PSF PGIM Flexible Managed Portfolio (Class I)** | **PSF PGIM Flexible Managed Portfolio (Class I)** | **PSF PGIM Flexible Managed Portfolio (Class I)** | **PSF PGIM Flexible Managed Portfolio (Class I)** |
| December 31, 2025 | 128569 | $6.36 | to | $16.68 | $1998163 | 0.00% | 0.60% | to | 0.90% | 12.15% | to | 12.49% |
| December 31, 2024 | 135952 | $5.66 | to | $14.83 | $1881196 | 0.00% | 0.60% | to | 0.90% | 14.48% | to | 14.83% |
| December 31, 2023 | 143318 | $4.93 | to | $12.92 | $1730356 | 0.00% | 0.60% | to | 0.90% | 16.88% | to | 17.23% |
| December 31, 2022 | 150226 | $4.20 | to | $11.02 | $1550413 | 0.00% | 0.60% | to | 0.90% | -15.46% | to | -15.21% |
| December 31, 2021 | 157209 | $4.96 | to | $13.00 | $1917006 | 0.00% | 0.60% | to | 0.90% | 16.32% | to | 16.66% |
|  | **PSF PGIM 50/50 Balanced Portfolio (Class I)** | **PSF PGIM 50/50 Balanced Portfolio (Class I)** | **PSF PGIM 50/50 Balanced Portfolio (Class I)** | **PSF PGIM 50/50 Balanced Portfolio (Class I)** | **PSF PGIM 50/50 Balanced Portfolio (Class I)** | **PSF PGIM 50/50 Balanced Portfolio (Class I)** | **PSF PGIM 50/50 Balanced Portfolio (Class I)** | **PSF PGIM 50/50 Balanced Portfolio (Class I)** | **PSF PGIM 50/50 Balanced Portfolio (Class I)** | **PSF PGIM 50/50 Balanced Portfolio (Class I)** | **PSF PGIM 50/50 Balanced Portfolio (Class I)** | **PSF PGIM 50/50 Balanced Portfolio (Class I)** |
| December 31, 2025 | 116683 | $5.40 | to | $12.14 | $1325187 | 0.00% | 0.60% | to | 0.90% | 11.16% | to | 11.49% |
| December 31, 2024 | 123848 | $4.84 | to | $10.89 | $1263456 | 0.00% | 0.60% | to | 0.90% | 12.01% | to | 12.35% |
| December 31, 2023 | 130992 | $4.31 | to | $9.69 | $1190679 | 0.00% | 0.60% | to | 0.90% | 14.43% | to | 14.77% |
| December 31, 2022 | 138474 | $3.76 | to | $8.44 | $1097862 | 0.00% | 0.60% | to | 0.90% | -15.46% | to | -15.20% |
| December 31, 2021 | 146204 | $4.43 | to | $9.96 | $1368628 | 0.00% | 0.60% | to | 0.90% | 12.36% | to | 12.70% |

---

A24

------

**NOTES TO FINANCIAL STATEMENTS OF**

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT—(Continued)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **At the period ended** | **At the period ended** | **At the period ended** | **At the period ended** | **For the period ended** | **For the period ended** | **For the period ended** | **For the period ended** | **For the period ended** |
| | **Units Outstanding**<br>**(000s)** | **Unit Value<br>Lowest — Highest** | **Unit Value<br>Lowest — Highest** | **Net<br>Assets<br>(000s)** | **Investment<br>Income<br>Ratio\*** | **Expense Ratio\*\*<br>Lowest — Highest** | **Expense Ratio\*\*<br>Lowest — Highest** | **Total Return\*\*\*<br>Lowest — Highest** | **Total Return\*\*\*<br>Lowest — Highest** |
| | **PSF PGIM High Yield Bond Portfolio (Class I)** | **PSF PGIM High Yield Bond Portfolio (Class I)** | **PSF PGIM High Yield Bond Portfolio (Class I)** | **PSF PGIM High Yield Bond Portfolio (Class I)** | **PSF PGIM High Yield Bond Portfolio (Class I)** | **PSF PGIM High Yield Bond Portfolio (Class I)** | **PSF PGIM High Yield Bond Portfolio (Class I)** | **PSF PGIM High Yield Bond Portfolio (Class I)** | **PSF PGIM High Yield Bond Portfolio (Class I)** |
| December 31, 2025 | 17183 | $4.84 | $10.17 | $163506 | 0.00% | 0.53% | 0.90% | 7.93% | 8.33% |
| December 31, 2024 | 18067 | $4.49 | $9.39 | $158890 | 0.00% | 0.60% | 0.90% | 7.64% | 7.96% |
| December 31, 2023 | 18890 | $4.16 | $8.70 | $154594 | 0.00% | 0.60% | 0.90% | 10.83% | 11.16% |
| December 31, 2022 | 19828 | $3.74 | $7.82 | $146062 | 0.00% | 0.60% | 0.90% | -12.03% | -11.77% |
| December 31, 2021 | 21137 | $4.24 | $8.87 | $175634 | 0.00% | 0.60% | 0.90% | 6.97% | 7.29% |
|  | **PSF Stock Index Portfolio (Class I)** | **PSF Stock Index Portfolio (Class I)** | **PSF Stock Index Portfolio (Class I)** | **PSF Stock Index Portfolio (Class I)** | **PSF Stock Index Portfolio (Class I)** | **PSF Stock Index Portfolio (Class I)** | **PSF Stock Index Portfolio (Class I)** | **PSF Stock Index Portfolio (Class I)** | **PSF Stock Index Portfolio (Class I)** |
| December 31, 2025 | 63179 | $12.21 | $40.72 | $2367714 | 0.00% | 0.60% | 0.90% | 16.51% | 16.86% |
| December 31, 2024 | 68496 | $10.45 | $34.85 | $2200568 | 0.00% | 0.60% | 0.90% | 23.53% | 23.90% |
| December 31, 2023 | 72324 | $8.43 | $28.12 | $1877413 | 0.00% | 0.60% | 0.90% | 24.80% | 25.17% |
| December 31, 2022 | 76823 | $6.74 | $22.47 | $1581165 | 0.00% | 0.60% | 0.90% | -19.06% | -18.82% |
| December 31, 2021 | 80255 | $8.30 | $27.68 | $2037099 | 0.00% | 0.60% | 0.90% | 27.14% | 27.52% |
|  | **PSF PGIM Jennison Value Portfolio (Class I)** | **PSF PGIM Jennison Value Portfolio (Class I)** | **PSF PGIM Jennison Value Portfolio (Class I)** | **PSF PGIM Jennison Value Portfolio (Class I)** | **PSF PGIM Jennison Value Portfolio (Class I)** | **PSF PGIM Jennison Value Portfolio (Class I)** | **PSF PGIM Jennison Value Portfolio (Class I)** | **PSF PGIM Jennison Value Portfolio (Class I)** | **PSF PGIM Jennison Value Portfolio (Class I)** |
| December 31, 2025 | 36207 | $9.81 | $29.42 | $990789 | 0.00% | 0.60% | 0.90% | 15.83% | 16.18% |
| December 31, 2024 | 38532 | $8.44 | $25.32 | $907329 | 0.00% | 0.60% | 0.90% | 19.88% | 20.24% |
| December 31, 2023 | 40814 | $7.02 | $21.06 | $800222 | 0.00% | 0.60% | 0.90% | 14.18% | 14.52% |
| December 31, 2022 | 42974 | $6.13 | $18.39 | $736455 | 0.00% | 0.60% | 0.90% | -8.71% | -8.44% |
| December 31, 2021 | 45010 | $6.69 | $20.08 | $841936 | 0.00% | 0.60% | 0.90% | 26.65% | 27.03% |
|  | **PSF Natural Resources Portfolio (Class I) (merged April 11, 2025)** | **PSF Natural Resources Portfolio (Class I) (merged April 11, 2025)** | **PSF Natural Resources Portfolio (Class I) (merged April 11, 2025)** | **PSF Natural Resources Portfolio (Class I) (merged April 11, 2025)** | **PSF Natural Resources Portfolio (Class I) (merged April 11, 2025)** | **PSF Natural Resources Portfolio (Class I) (merged April 11, 2025)** | **PSF Natural Resources Portfolio (Class I) (merged April 11, 2025)** | **PSF Natural Resources Portfolio (Class I) (merged April 11, 2025)** | **PSF Natural Resources Portfolio (Class I) (merged April 11, 2025)** |
| December 31, 2025 |  | $7.99 | $20.55 | $— | 0.00% | 0.60% | 0.90% | -6.40% | -6.33% |
| December 31, 2024 | 14813 | $8.53 | $21.94 | $306062 | 0.00% | 0.60% | 0.90% | 3.44% | 3.75% |
| December 31, 2023 | 15666 | $8.25 | $21.15 | $312555 | 0.00% | 0.60% | 0.90% | 1.08% | 1.38% |
| December 31, 2022 | 16668 | $8.16 | $20.86 | $328764 | 0.00% | 0.46% | 0.90% | 20.96% | 21.46% |
| December 31, 2021 | 17191 | $6.75 | $17.17 | $277237 | 0.00% | 0.60% | 0.90% | 24.38% | 24.76% |
|  | **PSF Global Portfolio (Class I)** | **PSF Global Portfolio (Class I)** | **PSF Global Portfolio (Class I)** | **PSF Global Portfolio (Class I)** | **PSF Global Portfolio (Class I)** | **PSF Global Portfolio (Class I)** | **PSF Global Portfolio (Class I)** | **PSF Global Portfolio (Class I)** | **PSF Global Portfolio (Class I)** |
| December 31, 2025 | 53396 | $7.14 | $9.29 | $477694 | 0.00% | 0.60% | 0.90% | 20.95% | 21.31% |
| December 31, 2024 | 58425 | $5.89 | $7.66 | $431974 | 0.00% | 0.60% | 0.90% | 14.12% | 14.46% |
| December 31, 2023 | 97268 | $5.14 | $6.69 | $636876 | 0.00% | 0.60% | 0.90% | 18.53% | 18.88% |
| December 31, 2022 | 145743 | $4.33 | $5.63 | $808327 | 0.00% | 0.60% | 0.90% | -19.52% | -19.28% |
| December 31, 2021 | 150808 | $5.36 | $6.97 | $1036055 | 0.00% | 0.60% | 0.90% | 17.17% | 17.52% |
|  | **PSF PGIM Government Income Portfolio (Class I) (merged April 25, 2025)** | **PSF PGIM Government Income Portfolio (Class I) (merged April 25, 2025)** | **PSF PGIM Government Income Portfolio (Class I) (merged April 25, 2025)** | **PSF PGIM Government Income Portfolio (Class I) (merged April 25, 2025)** | **PSF PGIM Government Income Portfolio (Class I) (merged April 25, 2025)** | **PSF PGIM Government Income Portfolio (Class I) (merged April 25, 2025)** | **PSF PGIM Government Income Portfolio (Class I) (merged April 25, 2025)** | **PSF PGIM Government Income Portfolio (Class I) (merged April 25, 2025)** | **PSF PGIM Government Income Portfolio (Class I) (merged April 25, 2025)** |
| December 31, 2025 |  | $2.31 | $4.48 | $— | 0.00% | 0.60% | 0.90% | 2.75% | 2.85% |
| December 31, 2024 | 16230 | $2.25 | $4.36 | $67255 | 0.00% | 0.60% | 0.90% | 0.11% | 0.41% |
| December 31, 2023 | 16976 | $2.25 | $4.34 | $70131 | 0.00% | 0.60% | 0.90% | 4.16% | 4.47% |
| December 31, 2022 | 17857 | $2.16 | $4.15 | $70792 | 0.00% | 0.60% | 0.90% | -14.22% | -13.97% |
| December 31, 2021 | 18432 | $2.51 | $4.83 | $85027 | 0.00% | 0.60% | 0.90% | -4.03% | -3.75% |
|  | **PSF PGIM Jennison Growth Portfolio (Class I)** | **PSF PGIM Jennison Growth Portfolio (Class I)** | **PSF PGIM Jennison Growth Portfolio (Class I)** | **PSF PGIM Jennison Growth Portfolio (Class I)** | **PSF PGIM Jennison Growth Portfolio (Class I)** | **PSF PGIM Jennison Growth Portfolio (Class I)** | **PSF PGIM Jennison Growth Portfolio (Class I)** | **PSF PGIM Jennison Growth Portfolio (Class I)** | **PSF PGIM Jennison Growth Portfolio (Class I)** |
| December 31, 2025 | 78692 | $17.07 | $24.60 | $1852650 | 0.00% | 0.60% | 0.90% | 13.25% | 13.59% |
| December 31, 2024 | 84002 | $15.03 | $21.66 | $1743463 | 0.00% | 0.60% | 0.90% | 29.70% | 30.09% |
| December 31, 2023 | 89224 | $11.55 | $16.65 | $1425095 | 0.00% | 0.60% | 0.90% | 52.14% | 52.59% |
| December 31, 2022 | 93732 | $7.57 | $10.91 | $982242 | 0.00% | 0.60% | 0.90% | -38.16% | -37.97% |
| December 31, 2021 | 98966 | $12.20 | $17.59 | $1673948 | 0.00% | 0.60% | 0.90% | 14.97% | 15.32% |
|  | **PSF Small-Cap Stock Index Portfolio (Class I)** | **PSF Small-Cap Stock Index Portfolio (Class I)** | **PSF Small-Cap Stock Index Portfolio (Class I)** | **PSF Small-Cap Stock Index Portfolio (Class I)** | **PSF Small-Cap Stock Index Portfolio (Class I)** | **PSF Small-Cap Stock Index Portfolio (Class I)** | **PSF Small-Cap Stock Index Portfolio (Class I)** | **PSF Small-Cap Stock Index Portfolio (Class I)** | **PSF Small-Cap Stock Index Portfolio (Class I)** |
| December 31, 2025 | 31117 | $12.86 | $16.00 | $480565 | 0.00% | 0.60% | 0.90% | 4.75% | 5.06% |
| December 31, 2024 | 33633 | $12.28 | $15.23 | $495331 | 0.00% | 0.60% | 0.90% | 7.38% | 7.71% |
| December 31, 2023 | 35618 | $11.44 | $14.14 | $487528 | 0.00% | 0.60% | 0.90% | 10.43% | 15.05% |
| December 31, 2022 | 37228 | $9.97 | $12.29 | $443455 | 0.00% | 0.60% | 0.90% | -17.12% | -16.87% |
| December 31, 2021 | 39215 | $12.03 | $14.79 | $562581 | 0.00% | 0.60% | 0.90% | 25.21% | 25.59% |
|  | **T. Rowe Price International Stock Portfolio** | **T. Rowe Price International Stock Portfolio** | **T. Rowe Price International Stock Portfolio** | **T. Rowe Price International Stock Portfolio** | **T. Rowe Price International Stock Portfolio** | **T. Rowe Price International Stock Portfolio** | **T. Rowe Price International Stock Portfolio** | **T. Rowe Price International Stock Portfolio** | **T. Rowe Price International Stock Portfolio** |
| December 31, 2025 | 433 | $2.97 | $2.97 | $1285 | 1.90% | 0.60% | 0.60% | 17.70% | 17.70% |
| December 31, 2024 | 459 | $2.52 | $2.52 | $1156 | 0.94% | 0.60% | 0.60% | 2.63% | 2.63% |
| December 31, 2023 | 464 | $2.46 | $2.46 | $1140 | 1.01% | 0.60% | 0.60% | 15.55% | 15.55% |
| December 31, 2022 | 474 | $2.13 | $2.13 | $1008 | 0.79% | 0.60% | 0.60% | -16.31% | -16.31% |
| December 31, 2021 | 481 | $2.54 | $2.54 | $1222 | 0.55% | 0.60% | 0.60% | 0.71% | 0.71% |

---

A25

------

**NOTES TO FINANCIAL STATEMENTS OF**

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT—(Continued)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **At the period ended** | **At the period ended** | **At the period ended** | **At the period ended** | **For the period ended** | **For the period ended** | **For the period ended** | **For the period ended** | **For the period ended** |
| | **Units Outstanding<br>(000s)** | **Unit Value<br>Lowest — Highest** | **Unit Value<br>Lowest — Highest** | **Net<br>Assets<br>(000s)** | **Investment<br>Income<br>Ratio\*** | **Expense Ratio\*\*<br>Lowest — Highest** | **Expense Ratio\*\*<br>Lowest — Highest** | **Total Return\*\*\*<br>Lowest — Highest** | **Total Return\*\*\*<br>Lowest — Highest** |
| | **Janus Henderson VIT Research Portfolio (Institutional Shares)** | **Janus Henderson VIT Research Portfolio (Institutional Shares)** | **Janus Henderson VIT Research Portfolio (Institutional Shares)** | **Janus Henderson VIT Research Portfolio (Institutional Shares)** | **Janus Henderson VIT Research Portfolio (Institutional Shares)** | **Janus Henderson VIT Research Portfolio (Institutional Shares)** | **Janus Henderson VIT Research Portfolio (Institutional Shares)** | **Janus Henderson VIT Research Portfolio (Institutional Shares)** | **Janus Henderson VIT Research Portfolio (Institutional Shares)** |
| December 31, 2025 | 943 | $11.07 | $11.07 | $10442 | 0.12% | 0.60% | 0.60% | 17.68% | 17.68% |
| December 31, 2024 | 1009 | $9.41 | $9.41 | $9494 | 0.03% | 0.60% | 0.60% | 34.50% | 34.50% |
| December 31, 2023 | 1088 | $7.00 | $7.00 | $7611 | 0.14% | 0.60% | 0.60% | 42.32% | 42.32% |
| December 31, 2022 | 1133 | $4.92 | $4.92 | $5568 | 0.71% | 0.60% | 0.60% | -30.31% | -30.31% |
| December 31, 2021 | 1203 | $7.05 | $7.05 | $8487 | 0.10% | 0.60% | 0.60% | 19.62% | 19.62% |
|  | **MFS® Growth Series (Initial Class)** | **MFS® Growth Series (Initial Class)** | **MFS® Growth Series (Initial Class)** | **MFS® Growth Series (Initial Class)** | **MFS® Growth Series (Initial Class)** | **MFS® Growth Series (Initial Class)** | **MFS® Growth Series (Initial Class)** | **MFS® Growth Series (Initial Class)** | **MFS® Growth Series (Initial Class)** |
| December 31, 2025 | 647 | $13.01 | $13.01 | $8414 | 0.00% | 0.60% | 0.60% | 11.53% | 11.53% |
| December 31, 2024 | 672 | $11.67 | $11.67 | $7844 | 0.00% | 0.60% | 0.60% | 30.68% | 30.68% |
| December 31, 2023 | 716 | $8.93 | $8.93 | $6390 | 0.00% | 0.60% | 0.60% | 35.06% | 35.06% |
| December 31, 2022 | 787 | $6.61 | $6.61 | $5202 | 0.00% | 0.60% | 0.60% | -32.04% | -32.04% |
| December 31, 2021 | 826 | $9.73 | $9.73 | $8033 | 0.00% | 0.60% | 0.60% | 22.80% | 22.80% |
|  | **LVIP American Century Value Fund (Standard Class II)** | **LVIP American Century Value Fund (Standard Class II)** | **LVIP American Century Value Fund (Standard Class II)** | **LVIP American Century Value Fund (Standard Class II)** | **LVIP American Century Value Fund (Standard Class II)** | **LVIP American Century Value Fund (Standard Class II)** | **LVIP American Century Value Fund (Standard Class II)** | **LVIP American Century Value Fund (Standard Class II)** | **LVIP American Century Value Fund (Standard Class II)** |
| December 31, 2025 | 440 | $8.61 | $8.61 | $3786 | 1.63% | 0.60% | 0.60% | 15.33% | 15.33% |
| December 31, 2024 | 459 | $7.46 | $7.46 | $3423 | 2.93% | 0.60% | 0.60% | 8.83% | 8.83% |
| December 31, 2023 | 485 | $6.86 | $6.86 | $3323 | 2.38% | 0.60% | 0.60% | 8.45% | 8.45% |
| December 31, 2022 | 523 | $6.32 | $6.32 | $3306 | 2.09% | 0.60% | 0.60% | -0.06% | -0.06% |
| December 31, 2021 | 536 | $6.33 | $6.33 | $3392 | 1.73% | 0.60% | 0.60% | 23.77% | 23.77% |
|  | **Janus Henderson VIT Research Portfolio (Service Shares)** | **Janus Henderson VIT Research Portfolio (Service Shares)** | **Janus Henderson VIT Research Portfolio (Service Shares)** | **Janus Henderson VIT Research Portfolio (Service Shares)** | **Janus Henderson VIT Research Portfolio (Service Shares)** | **Janus Henderson VIT Research Portfolio (Service Shares)** | **Janus Henderson VIT Research Portfolio (Service Shares)** | **Janus Henderson VIT Research Portfolio (Service Shares)** | **Janus Henderson VIT Research Portfolio (Service Shares)** |
| December 31, 2025 | 19 | $7.88 | $7.88 | $152 | 0.13% | 0.90% | 0.90% | 17.04% | 17.04% |
| December 31, 2024 | 21 | $6.73 | $6.73 | $141 | 0.00% | 0.90% | 0.90% | 33.75% | 33.75% |
| December 31, 2023 | 23 | $5.03 | $5.03 | $115 | 0.06% | 0.90% | 0.90% | 41.54% | 41.54% |
| December 31, 2022 | 24 | $3.55 | $3.55 | $84 | 0.57% | 0.90% | 0.90% | -30.69% | -30.69% |
| December 31, 2021 | 26 | $5.13 | $5.13 | $132 | 0.02% | 0.90% | 0.90% | 18.98% | 18.98% |
|  | **PSF Mid-Cap Growth Portfolio (Class I) (merged April 11, 2025)** | **PSF Mid-Cap Growth Portfolio (Class I) (merged April 11, 2025)** | **PSF Mid-Cap Growth Portfolio (Class I) (merged April 11, 2025)** | **PSF Mid-Cap Growth Portfolio (Class I) (merged April 11, 2025)** | **PSF Mid-Cap Growth Portfolio (Class I) (merged April 11, 2025)** | **PSF Mid-Cap Growth Portfolio (Class I) (merged April 11, 2025)** | **PSF Mid-Cap Growth Portfolio (Class I) (merged April 11, 2025)** | **PSF Mid-Cap Growth Portfolio (Class I) (merged April 11, 2025)** | **PSF Mid-Cap Growth Portfolio (Class I) (merged April 11, 2025)** |
| December 31, 2025 |  | $6.86 | $7.34 | $— | 0.00% | 0.60% | 0.90% | -13.37% | -13.30% |
| December 31, 2024 | 205 | $7.92 | $8.47 | $1679 | 0.00% | 0.60% | 0.90% | 13.22% | 13.56% |
| December 31, 2023 | 203 | $6.99 | $7.46 | $1465 | 0.00% | 0.60% | 0.90% | 22.45% | 22.81% |
| December 31, 2022 | 223 | $5.71 | $6.07 | $1313 | 0.00% | 0.60% | 0.90% | -27.61% | -27.39% |
| December 31, 2021 | 234 | $7.89 | $8.36 | $1898 | 0.00% | 0.60% | 0.90% | 9.71% | 10.03% |
|  | **AST Large-Cap Growth Portfolio** | **AST Large-Cap Growth Portfolio** | **AST Large-Cap Growth Portfolio** | **AST Large-Cap Growth Portfolio** | **AST Large-Cap Growth Portfolio** | **AST Large-Cap Growth Portfolio** | **AST Large-Cap Growth Portfolio** | **AST Large-Cap Growth Portfolio** | **AST Large-Cap Growth Portfolio** |
| December 31, 2025 | 17 | $85.11 | $89.70 | $1520 | 0.00% | 0.60% | 0.90% | 16.02% | 16.37% |
| December 31, 2024 | 19 | $73.35 | $77.09 | $1445 | 0.00% | 0.60% | 0.90% | 28.99% | 29.38% |
| December 31, 2023 | 21 | $56.87 | $59.58 | $1209 | 0.00% | 0.60% | 0.90% | 42.35% | 42.78% |
| December 31, 2022 | 23 | $39.95 | $41.73 | $926 | 0.00% | 0.60% | 0.90% | -33.80% | -33.60% |
| December 31, 2021 | 19 | $60.35 | $62.85 | $1162 | 0.00% | 0.60% | 0.90% | 16.07% | 16.41% |
|  | **AST Large-Cap Value Portfolio** | **AST Large-Cap Value Portfolio** | **AST Large-Cap Value Portfolio** | **AST Large-Cap Value Portfolio** | **AST Large-Cap Value Portfolio** | **AST Large-Cap Value Portfolio** | **AST Large-Cap Value Portfolio** | **AST Large-Cap Value Portfolio** | **AST Large-Cap Value Portfolio** |
| December 31, 2025 | 21 | $34.28 | $36.13 | $743 | 0.00% | 0.60% | 0.90% | 15.01% | 15.36% |
| December 31, 2024 | 23 | $29.81 | $31.32 | $701 | 0.00% | 0.60% | 0.90% | 8.94% | 9.27% |
| December 31, 2023 | 24 | $27.36 | $28.67 | $670 | 0.00% | 0.60% | 0.90% | 8.77% | 9.10% |
| December 31, 2022 | 27 | $25.15 | $26.28 | $676 | 0.00% | 0.60% | 0.90% | 0.80% | 1.10% |
| December 31, 2021 | 25 | $24.95 | $25.99 | $631 | 0.00% | 0.60% | 0.90% | 28.06% | 28.44% |
|  | **AST Small-Cap Equity Portfolio** | **AST Small-Cap Equity Portfolio** | **AST Small-Cap Equity Portfolio** | **AST Small-Cap Equity Portfolio** | **AST Small-Cap Equity Portfolio** | **AST Small-Cap Equity Portfolio** | **AST Small-Cap Equity Portfolio** | **AST Small-Cap Equity Portfolio** | **AST Small-Cap Equity Portfolio** |
| December 31, 2025 | 13 | $44.91 | $47.34 | $596 | 0.00% | 0.60% | 0.90% | 6.45% | 6.77% |
| December 31, 2024 | 14 | $42.19 | $44.34 | $586 | 0.00% | 0.60% | 0.90% | 13.83% | 14.17% |
| December 31, 2023 | 14 | $37.07 | $38.84 | $525 | 0.00% | 0.60% | 0.90% | 16.06% | 16.40% |
| December 31, 2022 | 14 | $31.94 | $33.36 | $471 | 0.00% | 0.60% | 0.90% | -28.22% | -28.01% |
| December 31, 2021 | 15 | $44.49 | $46.34 | $662 | 0.00% | 0.60% | 0.90% | 3.60% | 3.91% |
|  | **AST Balanced Asset Allocation Portfolio** | **AST Balanced Asset Allocation Portfolio** | **AST Balanced Asset Allocation Portfolio** | **AST Balanced Asset Allocation Portfolio** | **AST Balanced Asset Allocation Portfolio** | **AST Balanced Asset Allocation Portfolio** | **AST Balanced Asset Allocation Portfolio** | **AST Balanced Asset Allocation Portfolio** | **AST Balanced Asset Allocation Portfolio** |
| December 31, 2025 | 46 | $29.89 | $31.36 | $1404 | 0.00% | 0.60% | 0.90% | 13.33% | 13.67% |
| December 31, 2024 | 48 | $26.37 | $27.59 | $1300 | 0.00% | 0.60% | 0.90% | 10.90% | 11.23% |
| December 31, 2023 | 49 | $23.78 | $24.80 | $1196 | 0.00% | 0.60% | 0.90% | 14.74% | 15.08% |
| December 31, 2022 | 50 | $20.73 | $21.55 | $1060 | 0.00% | 0.60% | 0.90% | -17.01% | -16.76% |
| December 31, 2021 | 51 | $24.97 | $25.89 | $1300 | 0.00% | 0.60% | 0.90% | 11.84% | 12.17% |

---

A26

------

**NOTES TO FINANCIAL STATEMENTS OF**

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT—(Continued)**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **At the period ended** | **At the period ended** | **At the period ended** | **At the period ended** | **At the period ended** | **For the period ended** | **For the period ended** | **For the period ended** | **For the period ended** | **For the period ended** | **For the period ended** | **For the period ended** |
| | **Units Outstanding<br>(000s)** | **Unit Value<br>Lowest — Highest** | **Unit Value<br>Lowest — Highest** | **Unit Value<br>Lowest — Highest** | **Net<br>Assets<br>(000s)** | **Investment<br>Income<br>Ratio\*** | **Expense Ratio\*\*<br>Lowest — Highest** | **Expense Ratio\*\*<br>Lowest — Highest** | **Expense Ratio\*\*<br>Lowest — Highest** | **Total Return\*\*\*<br>Lowest — Highest** | **Total Return\*\*\*<br>Lowest — Highest** | **Total Return\*\*\*<br>Lowest — Highest** |
| | **AST Preservation Asset Allocation Portfolio** | **AST Preservation Asset Allocation Portfolio** | **AST Preservation Asset Allocation Portfolio** | **AST Preservation Asset Allocation Portfolio** | **AST Preservation Asset Allocation Portfolio** | **AST Preservation Asset Allocation Portfolio** | **AST Preservation Asset Allocation Portfolio** | **AST Preservation Asset Allocation Portfolio** | **AST Preservation Asset Allocation Portfolio** | **AST Preservation Asset Allocation Portfolio** | **AST Preservation Asset Allocation Portfolio** | **AST Preservation Asset Allocation Portfolio** |
| December 31, 2025 | 18 | $21.03 | to | $22.07 | $382 | 0.00% | 0.60% | to | 0.90% | 10.33% | to | 10.66% |
| December 31, 2024 | 19 | $19.06 | to | $19.94 | $366 | 0.00% | 0.60% | to | 0.90% | 6.83% | to | 7.16% |
| December 31, 2023 | 23 | $17.84 | to | $18.61 | $415 | 0.00% | 0.60% | to | 0.90% | 10.78% | to | 11.11% |
| December 31, 2022 | 19 | $16.11 | to | $16.75 | $314 | 0.00% | 0.60% | to | 0.90% | -16.38% | to | -16.13% |
| December 31, 2021 | 20 | $19.26 | to | $19.97 | $393 | 0.00% | 0.60% | to | 0.90% | 5.30% | to | 5.61% |
|  | **AST Cohen & Steers Realty Portfolio (merged January 24, 2025)** | **AST Cohen & Steers Realty Portfolio (merged January 24, 2025)** | **AST Cohen & Steers Realty Portfolio (merged January 24, 2025)** | **AST Cohen & Steers Realty Portfolio (merged January 24, 2025)** | **AST Cohen & Steers Realty Portfolio (merged January 24, 2025)** | **AST Cohen & Steers Realty Portfolio (merged January 24, 2025)** | **AST Cohen & Steers Realty Portfolio (merged January 24, 2025)** | **AST Cohen & Steers Realty Portfolio (merged January 24, 2025)** | **AST Cohen & Steers Realty Portfolio (merged January 24, 2025)** | **AST Cohen & Steers Realty Portfolio (merged January 24, 2025)** | **AST Cohen & Steers Realty Portfolio (merged January 24, 2025)** | **AST Cohen & Steers Realty Portfolio (merged January 24, 2025)** |
| December 31, 2025 |  | $11.99 | to | $12.13 | $— | 0.00% | 0.60% | to | 0.90% | 1.63% | to | 1.65% |
| December 31, 2024 | 3962 | $11.80 | to | $11.94 | $46985 | 0.00% | 0.60% | to | 0.90% | 5.71% | to | 6.03% |
| December 31, 2023 | 4168 | $11.16 | to | $11.26 | $46702 | 0.00% | 0.60% | to | 0.90% | 11.09% | to | 11.42% |
| December 31, 2022 | 4336 | $10.05 | to | $10.11 | $43684 | 0.00% | 0.60% | to | 0.90% | -26.03% | to | -25.81% |
| December 31, 2021 | 266 | $13.59 | to | $13.62 | $3614 | 0.00% | 0.60% | to | 0.90% | 34.85% | to | 35.19% |
|  | **AST Core Fixed Income Portfolio (available February 11, 2022)** | **AST Core Fixed Income Portfolio (available February 11, 2022)** | **AST Core Fixed Income Portfolio (available February 11, 2022)** | **AST Core Fixed Income Portfolio (available February 11, 2022)** | **AST Core Fixed Income Portfolio (available February 11, 2022)** | **AST Core Fixed Income Portfolio (available February 11, 2022)** | **AST Core Fixed Income Portfolio (available February 11, 2022)** | **AST Core Fixed Income Portfolio (available February 11, 2022)** | **AST Core Fixed Income Portfolio (available February 11, 2022)** | **AST Core Fixed Income Portfolio (available February 11, 2022)** | **AST Core Fixed Income Portfolio (available February 11, 2022)** | **AST Core Fixed Income Portfolio (available February 11, 2022)** |
| December 31, 2025 | 90 | $9.85 | to | $9.96 | $888 | 0.00% | 0.60% | to | 0.90% | 6.20% | to | 6.52% |
| December 31, 2024 | 93 | $9.27 | to | $9.35 | $868 | 0.00% | 0.60% | to | 0.90% | 0.53% | to | 0.83% |
| December 31, 2023 | 86 | $9.23 | to | $9.28 | $796 | 0.00% | 0.60% | to | 0.90% | 5.40% | to | 5.72% |
| December 31, 2022 | 86 | $8.75 | to | $8.78 | $756 | 0.00% | 0.60% | to | 0.90% | -12.84% | to | -12.61% |
| December 31, 2021 |  | $— | to | $— | $— | 0.00% | 0.00% | to | 0.00% | 0.00% | to | 0.00% |
|  | **AST J.P. Morgan Conservative Multi-Asset Portfolio (available January 20, 2023)** | **AST J.P. Morgan Conservative Multi-Asset Portfolio (available January 20, 2023)** | **AST J.P. Morgan Conservative Multi-Asset Portfolio (available January 20, 2023)** | **AST J.P. Morgan Conservative Multi-Asset Portfolio (available January 20, 2023)** | **AST J.P. Morgan Conservative Multi-Asset Portfolio (available January 20, 2023)** | **AST J.P. Morgan Conservative Multi-Asset Portfolio (available January 20, 2023)** | **AST J.P. Morgan Conservative Multi-Asset Portfolio (available January 20, 2023)** | **AST J.P. Morgan Conservative Multi-Asset Portfolio (available January 20, 2023)** | **AST J.P. Morgan Conservative Multi-Asset Portfolio (available January 20, 2023)** | **AST J.P. Morgan Conservative Multi-Asset Portfolio (available January 20, 2023)** | **AST J.P. Morgan Conservative Multi-Asset Portfolio (available January 20, 2023)** | **AST J.P. Morgan Conservative Multi-Asset Portfolio (available January 20, 2023)** |
| December 31, 2025 | 38 | $12.21 | to | $12.32 | $469 | 0.00% | 0.60% | to | 0.90% | 9.39% | to | 9.71% |
| December 31, 2024 | 39 | $11.17 | to | $11.23 | $439 | 0.00% | 0.60% | to | 0.90% | 5.24% | to | 5.56% |
| December 31, 2023 | 39 | $10.61 | to | $10.64 | $419 | 0.00% | 0.60% | to | 0.90% | 5.76% | to | 6.06% |
| December 31, 2022 |  | $— | to | $— | $— | 0.00% | 0.00% | to | 0.00% | 0.00% | to | 0.00% |
| December 31, 2021 |  | $— | to | $— | $— | 0.00% | 0.00% | to | 0.00% | 0.00% | to | 0.00% |
|  | **AST PGIM Aggressive Multi-Asset Portfolio (available February 24, 2023)** | **AST PGIM Aggressive Multi-Asset Portfolio (available February 24, 2023)** | **AST PGIM Aggressive Multi-Asset Portfolio (available February 24, 2023)** | **AST PGIM Aggressive Multi-Asset Portfolio (available February 24, 2023)** | **AST PGIM Aggressive Multi-Asset Portfolio (available February 24, 2023)** | **AST PGIM Aggressive Multi-Asset Portfolio (available February 24, 2023)** | **AST PGIM Aggressive Multi-Asset Portfolio (available February 24, 2023)** | **AST PGIM Aggressive Multi-Asset Portfolio (available February 24, 2023)** | **AST PGIM Aggressive Multi-Asset Portfolio (available February 24, 2023)** | **AST PGIM Aggressive Multi-Asset Portfolio (available February 24, 2023)** | **AST PGIM Aggressive Multi-Asset Portfolio (available February 24, 2023)** | **AST PGIM Aggressive Multi-Asset Portfolio (available February 24, 2023)** |
| December 31, 2025 | 17 | $14.58 | to | $14.71 | $252 | 0.00% | 0.60% | to | 0.90% | 14.97% | to | 15.31% |
| December 31, 2024 | 17 | $12.69 | to | $12.76 | $222 | 0.00% | 0.60% | to | 0.90% | 12.67% | to | 13.01% |
| December 31, 2023 | 17 | $11.26 | to | $11.29 | $187 | 0.00% | 0.60% | to | 0.90% | 13.72% | to | 14.00% |
| December 31, 2022 |  | $— | to | $— | $— | 0.00% | 0.00% | to | 0.00% | 0.00% | to | 0.00% |
| December 31, 2021 |  | $— | to | $— | $— | 0.00% | 0.00% | to | 0.00% | 0.00% | to | 0.00% |
|  | **AST International Equity Portfolio (available March 10, 2023)** | **AST International Equity Portfolio (available March 10, 2023)** | **AST International Equity Portfolio (available March 10, 2023)** | **AST International Equity Portfolio (available March 10, 2023)** | **AST International Equity Portfolio (available March 10, 2023)** | **AST International Equity Portfolio (available March 10, 2023)** | **AST International Equity Portfolio (available March 10, 2023)** | **AST International Equity Portfolio (available March 10, 2023)** | **AST International Equity Portfolio (available March 10, 2023)** | **AST International Equity Portfolio (available March 10, 2023)** | **AST International Equity Portfolio (available March 10, 2023)** | **AST International Equity Portfolio (available March 10, 2023)** |
| December 31, 2025 | 139 | $15.29 | to | $15.42 | $2122 | 0.00% | 0.60% | to | 0.90% | 31.65% | to | 32.05% |
| December 31, 2024 | 144 | $11.62 | to | $11.68 | $1670 | 0.00% | 0.60% | to | 0.90% | 4.51% | to | 4.82% |
| December 31, 2023 | 144 | $11.11 | to | $11.14 | $1602 | 0.00% | 0.60% | to | 0.90% | 12.09% | to | 12.36% |
| December 31, 2022 |  | $— | to | $— | $— | 0.00% | 0.00% | to | 0.00% | 0.00% | to | 0.00% |
| December 31, 2021 |  | $— | to | $— | $— | 0.00% | 0.00% | to | 0.00% | 0.00% | to | 0.00% |
|  | **AST Large-Cap Equity Portfolio (available January 24, 2025)** | **AST Large-Cap Equity Portfolio (available January 24, 2025)** | **AST Large-Cap Equity Portfolio (available January 24, 2025)** | **AST Large-Cap Equity Portfolio (available January 24, 2025)** | **AST Large-Cap Equity Portfolio (available January 24, 2025)** | **AST Large-Cap Equity Portfolio (available January 24, 2025)** | **AST Large-Cap Equity Portfolio (available January 24, 2025)** | **AST Large-Cap Equity Portfolio (available January 24, 2025)** | **AST Large-Cap Equity Portfolio (available January 24, 2025)** | **AST Large-Cap Equity Portfolio (available January 24, 2025)** | **AST Large-Cap Equity Portfolio (available January 24, 2025)** | **AST Large-Cap Equity Portfolio (available January 24, 2025)** |
| December 31, 2025 | 4848 | $10.95 | to | $10.98 | $53148 | 0.00% | 0.60% | to | 0.90% | 9.79% | to | 10.09% |
| December 31, 2024 |  | $— | to | $— | $— | 0.00% | 0.00% | to | 0.00% | 0.00% | to | 0.00% |
| December 31, 2023 |  | $— | to | $— | $— | 0.00% | 0.00% | to | 0.00% | 0.00% | to | 0.00% |
| December 31, 2022 |  | $— | to | $— | $— | 0.00% | 0.00% | to | 0.00% | 0.00% | to | 0.00% |
| December 31, 2021 |  | $— | to | $— | $— | 0.00% | 0.00% | to | 0.00% | 0.00% | to | 0.00% |

---

A27

------

**NOTES TO FINANCIAL STATEMENTS OF**

**THE PRUDENTIAL VARIABLE APPRECIABLE 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. Product designs within a subaccount which were offered less than one year are included in the range of total returns for that period, and their respective total returns may not correspond to the total returns of a product offering with a comparable expense ratio that was presented for the full period. 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:&nbsp;&nbsp;&nbsp;&nbsp;Charges and Expenses**

The following represents the various charges and expenses of the Account which are paid to Prudential.

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. These fees are charged at an effective annual rate of up to 0.90%, and are 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 37.5%. In addition, PVAL and CVAL contracts also deduct a $2 premium processing charge for each premium paid. The percentage of the premium payment deducted consists of taxes attributable to premiums, any applicable sales charge, and any premium based administrative charge. The charges made directly to the contract owner through the redemption of units depend on the product and the options or transactions selected by the contract owner. The following charges are made through the redemption of units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Account charges from $0 to $83.34 per $1,000 of basic insurance amount for the cost of insurance plus additional mortality for extra ratings of up to $2.08 per $1,000 of basic insurance amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Account charges a guaranteed death benefit fee of $0.01 per $1,000 of basic insurance amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The charge for withdrawals ranges from a maximum of $15 to $25.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Account charges monthly administrative fees that range from $0 to $10 per contract plus $0.01 to $0.07 per $1,000 of basic insurance amount, although it may be less for subsequent increases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Account charges up to $25 per change to the basic insurance amount.

A28

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**NOTES TO FINANCIAL STATEMENTS OF**

**THE PRUDENTIAL VARIABLE APPRECIABLE ACCOUNT—(Continued)**

<u>Reimbursement for excess expenses</u> - The Account is reimbursed for certain products by Prudential, on a non-guaranteed basis, for expenses incurred by The Prudential Series Fund in excess of the effective rate of 0.40% for the PSF Stock Index Portfolio (Class I), 0.50% for the PSF PGIM Jennison Value Portfolio (Class I), 0.55% for the PSF Natural Resources Portfolio (Class I), and 0.65% for the PSF PGIM High Yield Bond Portfolio (Class I) of the average daily net assets of these portfolios.

**Note 9:&nbsp;&nbsp;&nbsp;&nbsp;Other**

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

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

<u>Policy loans</u> represent amounts borrowed by contract owners using the contract as the security for the loan.

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

<u>Surrenders, withdrawals and death benefits</u> 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.

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

<u>Miscellaneous transactions</u> 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.

<u>Other charges</u> are contract level charges assessed through the redemption of units as described in Note 8, Charges and Expenses.

A29

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**Report of Independent Registered Public Accounting Firm**

To the Board of Directors of The Prudential Insurance Company of America and the Contract Owners of The Prudential Variable Appreciable Account

***Opinions on the Financial Statements***

We have audited the accompanying statements of net assets of each of the subaccounts of The Prudential Variable Appreciable 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 The Prudential Variable Appreciable 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) | MFS® Growth Series (Initial Class) (1) |
| PSF PGIM Total Return Bond Portfolio (Class I) (1) | LVIP American Century Value Fund (Standard Class II) (1) |
| PSF PGIM Jennison Blend Portfolio (Class I) (1) | Janus Henderson VIT Research Portfolio (Service Shares) (1) |
| PSF PGIM Flexible Managed Portfolio (Class I) (1) | PSF Mid-Cap Growth Portfolio (Class I) (2) |
| PSF PGIM 50/50 Balanced Portfolio (Class I) (1) | AST Large-Cap Growth Portfolio (1) |
| PSF PGIM High Yield Bond Portfolio (Class I) (1) | AST Large-Cap Value Portfolio (1) |
| PSF Stock Index Portfolio (Class I) (1) | AST Small-Cap Equity Portfolio (1) |
| PSF PGIM Jennison Value Portfolio (Class I) (1) | AST Balanced Asset Allocation Portfolio (1) |
| PSF Natural Resources Portfolio (Class I) (2) | AST Preservation Asset Allocation Portfolio (1) |
| PSF Global Portfolio (Class I) (1) | AST Cohen & Steers Realty Portfolio (4) |
| PSF PGIM Government Income Portfolio (Class I) (3) | AST Core Fixed Income Portfolio (1) |
| PSF PGIM Jennison Growth Portfolio (Class I) (1) | AST J.P. Morgan Conservative Multi-Asset Portfolio (1) |
| PSF Small-Cap Stock Index Portfolio (Class I) (1) | AST PGIM Aggressive Multi-Asset Portfolio (1) |
| T. Rowe Price International Stock Portfolio (1) | AST International Equity Portfolio (1) |
| Janus Henderson VIT Research Portfolio (Institutional Shares) (1) | AST Large-Cap Equity Portfolio (5) |
| (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. | (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. | (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. | (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. | (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. | (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. |

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A30

------

***Basis for Opinions***

These financial statements are the responsibility of The Prudential Insurance Company of America management. Our responsibility is to express an opinion on the financial statements of each of the subaccounts of The Prudential Variable Appreciable 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 The Prudential Variable Appreciable 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 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 agents 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 16, 2026

We have served as the auditor of one or more of the subaccounts of The Prudential Variable Appreciable Account since 1996.

A31

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**THE PRUDENTIAL INSURANCE <br>COMPANY OF AMERICA**

**STATUTORY FINANCIAL STATEMENTS AND**

**ADDITIONAL INFORMATION**

**December 31, 2025, 2024 and 2023**

**and Report of Independent Auditors**

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| | |
|:---|:---|
| **STATUTORY FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION** | **Page(s)** |
| <u>Report of Independent Auditors</u> | <u>[3](#i22940387b780449cb217fd36a66a6a66_4)</u> |
| <u>[Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus](#i22940387b780449cb217fd36a66a6a66_7)</u> | <u>[5](#i22940387b780449cb217fd36a66a6a66_7)</u> |
| <u>[Statutory Statements of Operations and Changes in Capital and Surplus](#i22940387b780449cb217fd36a66a6a66_10)</u> | <u>[6](#i22940387b780449cb217fd36a66a6a66_10)</u> |
| <u>[Statutory Statements of Cash Flows](#i22940387b780449cb217fd36a66a6a66_13)</u> | <u>[7](#i22940387b780449cb217fd36a66a6a66_13)</u> |
| <u>[Notes to Statutory Financial Statements](#i22940387b780449cb217fd36a66a6a66_16)</u> | <u>[8](#i22940387b780449cb217fd36a66a6a66_16)</u> |
| <u>[Annual Statement Schedule 1 - Selected Financial Data](#i22940387b780449cb217fd36a66a6a66_232)</u> | <u>[130](#i22940387b780449cb217fd36a66a6a66_232)</u> |
| <u>[Supplemental Investments Risks Interrogatories Schedule](#i22940387b780449cb217fd36a66a6a66_235)</u> | <u>[133](#i22940387b780449cb217fd36a66a6a66_235)</u> |
| <u>[Summary Investment Schedule](#i22940387b780449cb217fd36a66a6a66_238)</u> | <u>[139](#i22940387b780449cb217fd36a66a6a66_238)</u> |
| <u>[Supplemental Schedule of Reinsurance Disclosures](#i22940387b780449cb217fd36a66a6a66_241)</u> | <u>[141](#i22940387b780449cb217fd36a66a6a66_241)</u> |

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**Report of Independent Auditors** 

To the Board of Directors and Management of

The Prudential Insurance Company of America

***Opinions***

We have audited the accompanying statutory financial statements of The Prudential Insurance Company of America (a wholly owned subsidiary of Prudential Financial, Inc.) (the "Company"), which comprise the statutory statements of admitted assets, liabilities and capital and surplus as of December 31, 2025 and 2024, and the related statutory statements of operations and changes in capital and surplus, and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the "financial statements").

*Unmodified Opinion on Statutory Basis of Accounting*

In our opinion, the accompanying financial statements present fairly, in all material respects, the admitted assets, liabilities and capital and surplus 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 accordance with the accounting practices prescribed or permitted by the New Jersey Department of Banking and Insurance (the "Department") described in Note 1.

*Adverse Opinion on U.S. Generally Accepted Accounting Principles*

In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the accompanying financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2025 and 2024, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2025. 

***Basis for Opinions***

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

*Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles*

As described in Note 1 to the financial statements, the financial statements are prepared by the Company on the basis of the accounting practices prescribed or permitted by the Department, which is a basis of accounting other than accounting principles generally accepted in the United States of America.

The effects on the financial statements of the variances between the statutory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

***Responsibilities of Management for the Financial Statements***

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the Department. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date the financial statements are available to be issued.

------

***Auditors' Responsibilities for the Audit of the Financial Statements***

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with US GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with US GAAS, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Exercise professional judgment and maintain professional skepticism throughout the audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

***Supplemental Information***

Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental Annual Statement Schedule 1 – Selected Financial Data, Supplemental Investments Risks Interrogatories Schedule, Summary Investment Schedule, and Supplemental Schedule of Reinsurance Disclosures (collectively referred to as the "supplemental schedules") of the Company as of December 31, 2025 and for the year then ended are presented to comply with the National Association of Insurance Commissioners' Annual Statement Instructions and Accounting Practices and Procedures Manual and for purposes of additional analysis and are not a required part of the financial statements. The supplemental schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves and other additional procedures, in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental schedules are fairly stated, in all material respects, in relation to the financial statements taken as a whole.

/s/ PricewaterhouseCoopers LLP

New York, New York

April 16, 2026

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**STATUTORY STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND CAPITAL AND SURPLUS**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

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| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| | (in millions) | (in millions) |
| **ASSETS** |  |  |
| Bonds | $85760 | $80001 |
| Preferred stocks | 118 | 188 |
| Common stocks | 13102 | 12493 |
| Mortgage loans on real estate | 19050 | 18383 |
| Real estate | 254 | 269 |
| Contract loans | 2082 | 2007 |
| Cash and short-term investments | 4323 | 3228 |
| Derivatives | 2649 | 4054 |
| Securities lending reinvested collateral assets | 9486 | 8384 |
| Other invested assets | 9962 | 10322 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash and invested assets | 146786 | 139329 |
| Premiums due and deferred | 5181 | 4546 |
| Accrued investment income | 985 | 976 |
| Current federal income tax recoverable | 596 | 644 |
| Net deferred tax asset | 2071 | 2036 |
| Other assets | 2651 | 2937 |
| Separate account assets | 167543 | 164941 |
| **TOTAL ADMITTED ASSETS**  | $325813 | $315409 |
| **LIABILITIES, CAPITAL AND SURPLUS** |  |  |
| **LIABILITIES** |  |  |
| Policy liabilities and insurance reserves: |  |  |
| &nbsp;&nbsp;&nbsp;Future policy benefits and claims | $89122 | $85789 |
| &nbsp;&nbsp;&nbsp;Deposit-type contracts | 17656 | 15097 |
| &nbsp;&nbsp;&nbsp;Advanced premiums | 199 | 52 |
| &nbsp;&nbsp;&nbsp;Policy dividends | 1398 | 1435 |
| Asset valuation reserve | 5247 | 4649 |
| Transfers to (from) separate accounts due or accrued | (343) | (317) |
| Securities sold under agreement to repurchase | 5565 | 4133 |
| Cash collateral held for loaned securities | 4606 | 4890 |
| Derivatives | 3091 | 2883 |
| Other liabilities | 16103 | 16296 |
| Separate account liabilities | 167260 | 164712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 309904 | 299619 |
| **CAPITAL AND SURPLUS** |  |  |
| Common capital stock and gross paid in and contributed surplus | 10429 | 10359 |
| Surplus notes | 287 | 350 |
| Special surplus fund | 1411 | 1600 |
| Unassigned surplus | 3782 | 3481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total capital and surplus | 15909 | 15790 |
| **TOTAL LIABILITIES, CAPITAL AND SURPLUS**  | $325813 | $315409 |

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**See Notes to Statutory Financial Statements**

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**STATUTORY STATEMENTS OF OPERATIONS AND CHANGES IN CAPITAL AND SURPLUS**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended** | **Years Ended** | **Years Ended** |
| | **December 31,** | **December 31,** | **December 31,** |
| | **2025** | **2024** | **2023** |
| | (in millions) | (in millions) | (in millions) |
| **REVENUES** |  |  |  |
| Premiums and annuity considerations | $31607 | $49412 | $20500 |
| Net investment income | 5473 | 5286 | 5373 |
| Other income (loss) | 2544 | 3529 | 846 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Revenues | 39624 | 58227 | 26719 |
| **BENEFITS AND EXPENSES** |  |  |  |
| Death benefits | 4823 | 4619 | 4519 |
| Annuity benefits | 19643 | 17728 | 16345 |
| Disability benefits | 1652 | 1509 | 1380 |
| Other benefits | 21 | 20 | 22 |
| Surrender benefits and fund withdrawals | 12762 | 22641 | 13808 |
| Net increase (decrease) in reserves | 2516 | 1683 | (8143) |
| Commissions | 982 | 960 | 894 |
| Net transfer to (from) separate accounts | (7057) | 5065 | (6106) |
| Other expenses (benefits) | 2249 | 2106 | 1875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Benefits and Expenses | 37591 | 56331 | 24594 |
| OPERATING INCOME (LOSS) BEFORE DIVIDENDS AND INCOME TAXES | 2033 | 1896 | 2125 |
| Dividends to policyholders | (6) | 112 | 85 |
| OPERATING INCOME (LOSS) BEFORE INCOME TAXES | 2039 | 1784 | 2040 |
| Income tax expense (benefit) | 191 | 362 | (38) |
| INCOME (LOSS) FROM OPERATIONS | 1848 | 1422 | 2078 |
| Net realized capital gains (losses) | 103 | (177) | (346) |
| **NET INCOME (LOSS)**  | $1951 | $1245 | $1732 |
| **CAPITAL AND SURPLUS** |  |  |  |
| **CAPITAL AND SURPLUS, BEGINNING OF PERIOD**  | $15790 | $16085 | $14049 |
| Net income (loss) | 1951 | 1245 | 1732 |
| Change in common capital stock and gross paid in and contributed surplus | 69 | 2924 | 753 |
| Change in net unrealized capital gains (losses) | 283 | (2391) | 2090 |
| Change in nonadmitted assets | (294) | (367) | 1551 |
| Change in asset valuation reserve | (598) | (123) | (548) |
| Change in net deferred income tax | (144) | 48 | (354) |
| Change in reserve on account of change in valuation basis |  |  | 83 |
| Dividends to stockholders | (974) | (1550) | (3100) |
| Net change in separate accounts surplus <sup>(1)</sup> | 169 | (360) | (254) |
| Amortization related to employee retirement plans and other pension adjustments | (179) | (52) | 81 |
| Deferred reinsurance allowance | (36) | 390 | (75) |
| Change in surplus notes <sup>(1)</sup> | (63) | 1 | 1 |
| Other changes, net <sup>(1)</sup> | (65) | (60) | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in capital and surplus | 119 | (295) | 2036 |
| **CAPITAL AND SURPLUS, END OF PERIOD**  | $15909 | $15790 | $16085 |

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

**See Notes to Statutory Financial Statements**

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**STATUTORY STATEMENTS OF CASH FLOWS**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended** | **Years Ended** | **Years Ended** |
| | | **December 31,** | |
| | **2025** | **2024** | **2023** |
| | (in millions) | (in millions) | (in millions) |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |  |
| Premiums and annuity considerations | $30942 | $37245 | $27176 |
| Net investment income | 5547 | 5299 | 5435 |
| Other income | 2595 | 1931 | 1753 |
| Separate account transfers | 7139 | 6623 | 8348 |
| Benefits and claims | (37955) | (44984) | (36600) |
| Policyholders' dividends | (31) | (30) | (29) |
| Federal income taxes | 19 | (203) | 64 |
| Other operating expenses | (2513) | (2441) | (1983) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash from (used in) operating activities**  | 5743 | 3440 | 4164 |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |  |
| Proceeds from investments sold, matured or repaid |  |  |  |
| &nbsp;&nbsp;&nbsp;Bonds | 12425 | 7289 | 13252 |
| &nbsp;&nbsp;&nbsp;Stocks | 3143 | 3096 | 2058 |
| &nbsp;&nbsp;&nbsp;Mortgage loans on real estate | 2788 | 2302 | 1622 |
| &nbsp;&nbsp;&nbsp;Real estate | 0 | 15 | 43 |
| &nbsp;&nbsp;&nbsp;Other invested assets | 1214 | 1021 | 911 |
| &nbsp;&nbsp;&nbsp;Miscellaneous proceeds | 201 | 639 | 307 |
| Payments for investments acquired |  |  |  |
| &nbsp;&nbsp;&nbsp;Bonds | (16608) | (10889) | (9733) |
| &nbsp;&nbsp;&nbsp;Stocks | (3026) | (2913) | (1142) |
| &nbsp;&nbsp;&nbsp;Mortgage loans on real estate | (3323) | (1853) | (1659) |
| &nbsp;&nbsp;&nbsp;Real estate | (28) | (26) | (57) |
| &nbsp;&nbsp;&nbsp;Other invested assets | (1606) | (1347) | (1824) |
| &nbsp;&nbsp;&nbsp;Miscellaneous applications | (1292) | (718) | (641) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash from (used in) investing activities**  | (6112) | (3384) | 3137 |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |  |
| Proceeds from (payments of) borrowed money | (22) | (30) | (111) |
| Proceeds from (payments of) surplus paid in | 6 |  |  |
| Dividends to stockholders | (900) | (1550) | (3100) |
| Net deposits on deposit-type contract funds | 2019 | (1026) | (1133) |
| Surplus notes, capital notes <sup>(1)</sup> | (350) | 1 | 1 |
| Other financing activities <sup>(1)</sup> | 711 | 1542 | (1439) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash from (used in) financing activities**  | 1464 | (1063) | (5782) |
| **NET CHANGE IN CASH AND SHORT-TERM INVESTMENTS**  | 1095 | (1007) | 1519 |
| **CASH AND SHORT-TERM INVESTMENTS, BEGINNING OF PERIOD**  | 3228 | 4235 | 2716 |
| **CASH AND SHORT-TERM INVESTMENTS, END OF PERIOD**  | $4323 | $3228 | $4235 |

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

For supplemental disclosures of non-cash transactions see Note 17 in the Notes to Statutory Financial Statements.

**See Notes to Statutory Financial Statements**

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**1.&nbsp;&nbsp;&nbsp;&nbsp;SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**1A. &nbsp;&nbsp;&nbsp;&nbsp;Business**

The Prudential Insurance Company of America (the "Company", "PICA", or "Prudential Insurance") is a wholly owned subsidiary of Prudential Financial, Inc. ("Prudential Financial" or "PFI"). The Company was founded in 1875 under the laws of the State of New Jersey.

Prudential Insurance provides a wide range of insurance, investment management, and other financial products and services to both individual and institutional customers throughout the United States. The principal products and services of the Company include individual life insurance, annuities, group insurance and retirement-related products and services. The Company also reinsures certain products from affiliated international insurers. The Company conducts its businesses through its operations and the operations of certain of its subsidiaries and affiliates in all 50 states. The principal executive offices of Prudential Insurance are located in Newark, New Jersey.

On December 18, 2001 (the "date of demutualization"), Prudential Insurance converted from a mutual life insurance company to a stock life insurance company. The demutualization was completed in accordance with Prudential Insurance's Plan of Reorganization, which was approved by the Commissioner of Banking and Insurance of the State of New Jersey in October 2001.

**1B. &nbsp;&nbsp;&nbsp;&nbsp;Accounting Practices**

The Company, domiciled in the state of New Jersey, prepares its statutory financial statements in accordance with accounting practices prescribed or permitted by the New Jersey Department of Banking and Insurance (the "Department" or "NJDOBI"). Prescribed statutory accounting practices ("SAP") include publications of the National Association of Insurance Commissioners ("NAIC"), state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed by the Department. The NAIC "*Accounting Practices and Procedures Manual"* ("NAIC SAP" or the "Manual") reporting differs from accounting principles generally accepted in the United States ("GAAP"). NAIC SAP is designed to address the concerns of regulators. GAAP is designed to meet the varying needs of the different users of financial statements.

The State of New Jersey requires that insurance companies domiciled in the State of New Jersey prepare their statutory basis financial statements in accordance with the NAIC SAP, subject to any deviations prescribed or permitted by the Department ("NJ SAP"). The Company's statutory accounting policies differ from the Manual due to deviations prescribed or permitted by the Department.

The following is a summary of accounting practices permitted and prescribed by the Department and the domiciliary regulator of certain subsidiaries as reflected in the Company's statutory financial statements including those in the statutory financial statements of subsidiaries:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company records leasehold improvements as admitted assets. New Jersey law allows insurance companies domiciled in New Jersey to admit leasehold improvements as admitted assets. Under Statement of Statutory Accounting Principles ("SSAP") No. 19, "Furniture, Fixtures, Equipment and Leasehold Improvements," NAIC statutory accounting practices require non-admittance of leasehold improvements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pursuant to New Jersey law, the Commissioner of the Department may require or permit a different basis of valuation of separate account assets. The Company values separate account assets for certain non-participating group annuity products, related to its pension risk transfer business, as if the assets were held in the general account. Under SSAP No. 56, "Separate Accounts" ("SSAP No. 56"), separate account assets supporting fund accumulation contracts ("GICs"), which do not participate in underlying portfolio experience, with a fixed interest rate guarantee, purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer, will be recorded as if the assets were held in the general account while assets supporting all other contractual benefits shall be recorded at fair value on the date of valuation. The participants in the Company's non-participating group annuity products do not participate in the investment income of the underlying assets, and therefore, the valuation prescribed by the Department follows the similar general account treatment. With certain separate account assets being valued as if they were held in the general account, the Company's separate account reserves and related asset adequacy analysis reserves are also adjusted accordingly. As of December 31, 2025 and 2024, Risk-Based Capital ("RBC") calculated using this prescribed practice resulted in RBC consistent with the amount calculated using NAIC guidance.

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In 2014, Prudential Legacy Company of New Jersey ("PLIC"), an insurance subsidiary of the Company, received approval from its domiciliary insurance department (New Jersey) for the following permitted accounting practices:

1)Approval to utilize a non-prescribed discount rate for purposes of discounting the present value of guaranteed liabilities in the Company's RBC calculation. Based on the applicable valuation requirements of separate account assets as indicated in SSAP No. 56, NAIC guidance indicates that RBC is calculated as the excess of the regular C-1 and C-3 standards over the applicable reserve margins. Under the guidance, the reserve margin is calculated as the excess of the book/adjusted carrying value ("BACV") of the assets supporting the reserve over the present value of the guaranteed payments. The present value of guaranteed payments is calculated using the expected net portfolio rate of return and is not to exceed 105 percent of U.S. Treasury spot rates. The excess, if any, of the asset value over the present value of guaranteed payments is first applied to reduce the C-3 requirement. The remainder is used to reduce the C-1 requirement. The permitted practice allows for the use of a discount rate, for purposes of discounting the present value of guaranteed liabilities, comprised of spot rates derived from a 50%/50% blend of U.S. Treasury-based spot rates and the Bond Index, where the Bond Index is composed of the Barclays Short Term Corporate Index for the ½ year maturity point and the Barclays U.S. Corporate Investment Grade Bond Index for all other maturities, as opposed to the discount rate described above. The modification of the discount rate used in the RBC calculation is consistent with the rate recommended by the Annuity Reserves Work Group of the American Academy of Actuaries for use for certain reserves. The discount rate utilized is limited to the sum of 1) U.S. Treasury-based spot rates and 2) 90% of the market spread of the asset portfolio within the Company. As of December 31, 2025 and 2024, Risk Based Capital ("RBC") calculated using this permitted practice resulted in RBC equal to the amount calculated using NAIC guidance.

2)Approval to apply amortized cost accounting for interest sensitive assets and liabilities, post reinsurance transaction, to Prudential Legacy Separate Account in a manner that varies from SSAP No. 56. Specifically, the permitted practice provides for the following after the initial reinsurance transaction was recorded:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ To record bonds pursuant to SSAP Nos. 26 and 43, "Bonds" and "Asset-Backed and Structured Securities"; mortgage loans pursuant to SSAP No. 37, "Mortgage Loans"; and preferred stock pursuant to SSAP No. 32, "Preferred Stock" ("SSAP No. 32") instead of recording these securities at fair value as required by SSAP No. 56.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ The creation of a new IMR with $0 value at inception. The creation of the Interest Maintenance Reserve ("IMR") is consistent with the accounting approved by the Department discussed above to record interest sensitive assets using amortized cost. Under SSAP No. 56, an IMR is established for separate accounts recorded at book value. With the creation of the new IMR, the Department approved the Company's ability to admit negative IMR should it occur as an admitted asset to ensure that the impact of trading activities on surplus within Prudential Legacy Separate Account is similar to that which would have occurred under SSAP No. 56 accounting guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ To record reserves that meet New Jersey minimum reserve requirements, consistent with Prudential Insurance's reserving prior to the above mentioned reinsurance transaction. SSAP No. 56 requires that reserves in separate accounts be adjusted for current interest rates in the event that assets are recorded at fair value. For the purpose of reconciling net income and capital and surplus between prescribed statutory accounting practices and permitted statutory accounting practices, in the calculation of the prescribed practice statutory reserves, the current year's statutory valuation rate is being used as the proxy for the current market rate, and the cash value floor is being applied in the aggregate. Absent the permitted practice discussed above, the Company's separate account assets would be required to be held at fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ To record all derivatives, which are designed to hedge interest rate risk, at amortized cost, and upon termination or sale, the realized gain or loss is reflected in the IMR to ensure that the net impact on surplus is similar to that which would have occurred had other interest rate sensitive assets been sold. SSAP No. 86, "Derivatives" ("SSAP No. 86") indicates that derivatives that are used for hedging transactions for which an entity either (1) does not meet the criteria for hedge accounting or (2) does meet the criteria but the entity has chosen not to apply hedge accounting shall be accounted for at fair value with changes in value recorded as unrealized gains or losses.

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

A reconciliation of the Company's net income, capital and surplus, assets and liabilities between NAIC SAP and practices permitted and prescribed by the Department as of and for the years ended December 31, is shown below:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **SSAP #** | **F/S Page** | **F/S Line #** | **2025** | **2024** | **2023** |
| | | | | **(in millions)** | **(in millions)** | **(in millions)** |
| **Net Income** |  |  |  |  |  |  |
| New Jersey state basis (Page 5, Net Income) |  |  |  | $1951 | $1245 | $1732 |
| **State Prescribed Practices that are an increase (decrease) from NAIC SAP:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Separate Account Valuation | 56 | 5 | Other income (loss) | 156 | (506) | 206 |
| &nbsp;&nbsp;&nbsp;Separate Account Valuation | 56 | 5 | Net increase (decrease) in reserves | (156) | 506 | (206) |
| NAIC SAP |  |  |  | $1951 | $1245 | $1732 |
| **Surplus** |  |  |  |  |  |  |
| New Jersey state basis (Page 5, Total Capital and Surplus) |  |  |  | $15909 | $15790 | $16085 |
| **State Prescribed Practices that are an increase (decrease) from NAIC SAP:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Admit leasehold improvements | 19 | 5 | Change in nonadmitted assets | 59 | 56 | 57 |
| NAIC SAP |  |  |  | $15850 | $15734 | $16028 |

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **SSAP #** | **F/S Page** | **F/S Line #** | **2025** | **2024** |
| | | | | **(in millions)** | **(in millions)** |
| **Assets** |  |  |  |  |  |
| New Jersey state basis (Page 4, Total Assets) |  |  |  | $325813 | $315409 |
| **State Prescribed Practices that are an increase (decrease) from NAIC SAP:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Separate Account Valuation | 56 | 4 | Separate account assets | 2150 | 3573 |
| &nbsp;&nbsp;&nbsp;Admit leasehold improvements | 19 | 4 | Other assets | 59 | 56 |
| NAIC SAP |  |  |  | $323604 | $311780 |
| **Liabilities** |  |  |  |  |  |
| New Jersey state basis (Page 4, Total Liabilities) |  |  |  | $309904 | $299619 |
| **State Prescribed Practices that are an increase (decrease) from NAIC SAP:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Separate Account Valuation | 56 | 4 | Future policy benefits and claims | (1638) | (1794) |
| &nbsp;&nbsp;&nbsp;Separate Account Valuation | 56 | 4 | Separate account liabilities | 3788 | 5367 |
| NAIC SAP |  |  |  | $307754 | $296046 |

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**1C. &nbsp;&nbsp;&nbsp;&nbsp;Use of Estimates** 

The preparation of financial statements in conformity with SAP requires management to make estimates and assumptions that affect the reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates.

The most significant estimates include those used in determining measurement of any related impairment; valuation of investments including derivatives (in the absence of quoted market values) and the recognition of other-than-temporary impairments; aggregate reserves for life, accident, and health contracts including guarantees; pension and other postretirement benefits; provision for income taxes and valuation of deferred tax assets; goodwill; and reserves for contingent liabilities, including reserves for losses in connection with unresolved legal matters.

**1D. &nbsp;&nbsp;&nbsp;&nbsp;Accounting Policy**

The Company uses the following accounting policies:

1)Cash includes cash on deposit and cash equivalents. Cash equivalents are short-term, highly liquid investments, with original maturities of three months or less, that are both readily convertible to known amounts of cash and so near their maturity that they represent insignificant risk of changes in value because of changes in interest rates. Cash equivalents also include money market funds. They are stated at amortized cost which approximates fair value.

Short-term investments primarily consist of money market funds and highly liquid debt instruments with a remaining maturity of twelve months or less and greater than three months when purchased. They are stated at amortized cost, which approximates fair value.

2)Bonds, which include debt securities that qualify within the principles-based bond definition as issuer credit obligation ("ICO") or asset-backed security ("ABS"), are stated primarily at amortized cost in accordance with the valuation prescribed by the Department and the NAIC. Bonds rated by the NAIC are classified into twenty categories ranging from highest quality bonds to those in or near default. Bonds rated in the top nineteen categories are generally valued at amortized cost while bonds rated in the lowest category are valued at lower of amortized cost or fair value.

The Company follows both the prospective and retrospective methods for amortizing bond premium and discount. Both methods require the recalculation of the effective yield at each reporting date if there has been a change in the underlying assumptions. For the prospective method, the recalculated yield will equate the carrying amount of the investment to the present value of the anticipated future cash flows. The recalculated yield is then used to accrue income on the investment balance for subsequent accounting periods. There are no accounting changes in the current period unless the undiscounted anticipated cash flow is less than the carrying amount of the investment. For the retrospective method, the recalculated yield is the rate that equates the present value of actual and anticipated future cash flows with the original cost of the investment. The current balance of the investment is increased or decreased to the amount that would have resulted had the revised yield been applied since inception and investment income is correspondingly decreased or increased.

For other-than-temporary impairments, the cost basis of the bond excluding ABS is written down to fair value as a new cost basis and the amount of the write down is accounted for as a realized loss. For ABS, the cost basis of the ABS is written down to the present value of cash flows expected to be collected, discounted at the ABS's effective yield.

The Company holds bonds that utilize the systematic value measurement method approach for Securities Valuation Office ("SVO")-Identified investments. The Company consistently utilizes the same measurement method for all SVO-Identified investments and none are being reported at a different measurement method from what was used in a prior annual statement. All of the securities still held qualify for the systematic value method.

Bonds which qualify as ABS under the principles-based bond definition are primarily carried at amortized cost. For ABS, the effective yield is based on estimated cash flows, including prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. For high credit quality ABS (those rated AA or above), cash flows are provided quarterly, and the amortized cost and effective yield of the security are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost for those securities rated AA or above are recorded in accordance with the retrospective method. For ABS rated below AA, the effective yield is adjusted prospectively for any changes in estimated cash flows.

The NAIC designations for non-agency residential mortgage-backed securities ("RMBS"), including ABS collateralized by sub-prime mortgages, are based on security level expected losses as modeled by an independent third party (engaged by the NAIC) and

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

the statutory carrying value of the security, including any purchase discounts or impairment charges previously recognized. The model used in determining NAIC designations was updated and utilized for reporting as of December 31, 2025 and 2024.

Similar to the change for RMBS, the NAIC designations for commercial mortgage-backed securities ("CMBS") are based on security level expected losses as modeled by an independent third party (engaged by the NAIC) and the statutory carrying value of the security, including any purchase discounts or impairment charges previously recognized. The model used in determining NAIC designations was updated and utilized for reporting as of December 31, 2025 and 2024.

3)Preferred stocks include unaffiliated preferred stocks and investments in subsidiaries. Preferred stocks rated by the NAIC are classified into six categories ranging from highest quality preferred stocks to those in or near default. Redeemable preferred stocks rated in the top three categories are generally valued at cost while preferred stocks rated in the lower three categories are generally valued at lower of cost or fair value. All perpetual and mandatory convertible preferred stocks are recorded at fair value regardless of the rating category. For other-than-temporary impairments, the cost basis of the preferred stock is written down to fair value as a new cost basis and the amount of the write down is recorded as a realized loss.

4)Common stocks include unaffiliated common stocks and investments in subsidiaries. See (7) below for information related to investments in subsidiaries. Unaffiliated common stocks are carried at fair value. Dividends from these investments are generally recognized in "Net investment income" on the ex-dividend date.

5)Mortgage loans on real estate ("Mortgage loans") are stated primarily at unpaid principal balances, net of unamortized premiums and discounts and impairments. Impaired loans are identified by management when it is considered probable that all amounts due according to the contractual terms of the loan agreement will not be collected. These loans are recorded based on the fair value of the collateral less estimated costs to obtain and sell. The difference between the net value of the collateral and the recorded investment in the mortgage loan is recognized as an impairment by creating a valuation allowance with a corresponding charge to unrealized loss or by adjusting an existing valuation allowance for the impaired loan with a corresponding charge or credit to unrealized gain or loss. Other-than-temporary impairments are then recognized as a realized loss in net income.

Interest received on impaired loans, including loans that were previously modified in a troubled debt restructuring, is generally either applied against the principal or reported as revenue, according to management's judgment as to the collectability of principal. Management discontinues accruing interest on impaired loans after the loans are ninety days delinquent as to principal or interest, or earlier when management has substantial doubts about collectability. When this interest is deemed uncollectible, it is reversed against interest income on loans for the current 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 interest has been interrupted for a substantial period, a regular payment performance has been established.

6)Real estate includes properties occupied by the Company and properties held for sale. Properties occupied by the Company are carried at cost less accumulated straight-line depreciation, encumbrances, and other-than-temporary impairments. Properties held for sale are valued at lower of depreciated cost or fair value less encumbrances and estimated disposition costs.

7)Investments in subsidiaries are accounted for using the equity method as defined in SSAP No. 97, "Investments in Subsidiary, Controlled and Affiliated Entities" ("SCA") ("SSAP No. 97"). Investments in domestic insurance subsidiaries are recorded based on the underlying audited statutory equity of the respective entity's financial statements, adjusted for unamortized goodwill as provided for in SSAP No. 68, "Business Combinations and Goodwill." Investments in foreign insurance subsidiaries are recorded based on audited U.S. GAAP equity adjusted, if needed, to a limited statutory basis of accounting in accordance with paragraph 9 of SSAP No. 97. Investments in non-insurance subsidiaries that do not engage in certain transactions or activities, per paragraph 8b ii of SSAP No. 97 are recorded based on audited U.S. GAAP equity of the investee. The change in subsidiaries' net assets, excluding capital contributions and distributions, is included in "Change in net unrealized capital gains (losses)." Dividends or distributions received from the investee are recognized in "Net investment income" when declared to the extent they are not in excess of undistributed accumulated earnings attributed to the Company's investment.

The Company has assessed the non-insurance entities subject to SSAP No. 97, and, based upon the amount of capital that these entities represent and the Company's strong capital position, the Company has decided not to obtain GAAP audits for certain entities as of December 31, 2025. The Company has therefore valued these entities for purposes of its financial statements at zero. At the end of future fiscal years, the Company may decide to obtain U.S. GAAP audits for entities subject to SSAP No. 97 and thereby restore their equity value for purposes of inclusion in capital and surplus.

8)Other invested assets include primarily the Company's investment in joint ventures, limited liability companies and other forms of partnerships. These investments are accounted for using an equity method as defined in SSAP No. 97 or SSAP No. 48, depending upon whether the investee is a Subsidiary, Controlled, or Affiliated Entity, as defined in SSAP No. 97. These entities are valued based on the underlying audited U.S. GAAP equity of the investee, or alternatives permitted by SSAP No. 97 and SSAP No. 48, as applicable. Other invested assets also include residual interests, generally in structured investments that receive remaining cash

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

flows after all debt holders receive contractual interest and principal payments. The Company elected the practical expedient method for residual interests, calculating the Book/Adjusted Carrying Value ("BACV") such that all distributions received are treated as a reduction in BACV.

9)Derivatives used by the Company include swaps, futures, forwards, and options and may be exchange-traded or contracted in the over-the-counter market. Derivative instruments used in hedging transactions that meet the criteria of a highly effective hedge are considered an effective hedge and are permitted to be valued and reported in a manner that is consistent with the hedged asset or liability. 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. Any derivative premiums that are not paid at inception of the derivative are recorded separately for the estimated fair value of the derivative as a portion of the Payable for Securities or Receivable for Securities line items on the balance sheet. Derivative instruments used in hedging transactions that do not meet or no longer meet the criteria of an effective hedge, or that meet the required criteria but the Company has chosen not apply hedge accounting, are accounted for at fair value and the changes in fair value are recorded through "Change in net unrealized gains (losses)." Derivatives are reported as either assets or liabilities within "Derivatives." Derivative instruments and the related gains and losses are presented in the Statutory Statements of Cash Flows within the "Miscellaneous proceeds" and "Miscellaneous applications" lines of the "Cash flows from investing activities" section. See Note 8, Derivatives, for additional disclosures.

10)The Company considers anticipated investment income when calculating its premium deficiency reserves in accordance with SSAP No. 54, "Individual and Group Accident and Health Contracts."

11)Accident and health reserves represent the estimated value of the future payments, adjusted for contingencies and interest. The remaining reserves for active life reserves and unearned premiums are valued using the preliminary term method, gross premium valuation method, or a pro rata portion of gross premiums. Reserves are also held for amounts not yet due on hospital benefits and other coverages.

12)The Company has not modified its capitalization policy from the prior period.

13)The Company does not have any pharmaceutical rebates receivable.

14)Repurchase agreements and reverse repurchase agreements are agreements between a seller and a buyer, whereby the seller of securities sells and simultaneously agrees to repurchase the same or substantially the same securities from the buyer at an agreed upon price and, usually, at a stated date as defined in SSAP No. 103, "Transfers and Servicing of Financial Assets and Extinguishments of Liabilities" ("SSAP No. 103"). Repurchase agreements (securities sold under agreements to repurchase) are generally accounted for as secured borrowings. The assets transferred are not removed from the balance sheet, the cash collateral received is invested and reported on balance sheet and accounted for based on the type of investment. The Company obtains collateral in an amount at least equal to 95% of the fair value of the securities sold. An offsetting liability is reported in "Securities sold under agreements to repurchase." For reverse repurchase agreements (securities purchased under agreements to resell), an asset is recorded in "Cash, and short-term investments" to reflect the receivable from the counterparty. Dollar repurchase agreements and reverse dollar repurchase agreements involve debt instruments that are pay-through securities collateralized with GNMA, FNMA and FHLMC and similar securities. The Company typically uses "to be announced" ("TBAs") securities in the dollar repurchase and reverse dollar repurchase agreements which are accounted for as derivatives. Dollar repurchase and reverse dollar repurchase agreements are reported in "Derivatives" with the change in value reported as "Change in net unrealized capital gains (losses)." Income and expenses related to these transactions used to earn spread income are reported as "Net investment income." Net realized capital gains (losses) are recorded upon termination of the agreements.

15)Securities lending transactions are transactions where the Company loans securities to a third party, primarily large brokerage firms. These transactions are accounted for as secured borrowings. Cash collateral received is invested and reported on the balance sheet and accounted for based on the type of investment. The Company obtains collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. A liability to return collateral received is reported in "Cash collateral held for loaned securities." Income and expenses associated with securities lending transactions used to earn spread income are reported as "Net investment income." Beginning in 2024, the Company's General Account and certain of its guaranteed separate accounts together invest in affiliated commingled investment vehicles. The reinvested collateral amounts representing the General Account's proportional share of the commingled investment vehicles are presented in "Securities lending reinvested collateral assets." The total securities lending reinvested collateral assets of $9,486 million, as of December 31, 2025, includes $7,889 million of bonds, $645 million of cash and short-term investments, $970 million of mortgage loans on real estate and ($18) million of derivatives. The total securities lending reinvested collateral assets of $8,384 million, as of December 31, 2024, includes $5,850 million of bonds, $1,662 million of cash and short-term investments, $855 million of mortgage loans on real estate and $17 million of derivatives. Disclosures related to these specific asset classes include the reinvested collateral.

16)Contract loans are stated at unpaid principal balances.

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

17)Net realized capital gains (losses) are computed using the specific identification method. Net realized investment gains and losses are generated from numerous sources, including the sale of bonds, stocks, other type of investments, as well as adjustments to the cost basis of investments for other-than-temporary impairments. Realized investment gains and losses are also generated from the termination of derivatives that do not qualify for hedge accounting. Investments carried at cost and amortized cost are adjusted for impairments considered other-than-temporary. All bonds, preferred stocks and common stocks with unrealized losses are subject to review to identify other-than-temporary impairments in value. Several factors must be considered to determine whether a decline in value of a security is other-than-temporary, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)&nbsp;&nbsp;&nbsp;&nbsp;the reasons for the decline in value (credit event, currency or interest related, including general spread widening);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)&nbsp;&nbsp;&nbsp;&nbsp;a company's ability and intent to hold its investment for a period of time to allow for recovery of value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)&nbsp;&nbsp;&nbsp;&nbsp;a company's intent to sell its investment before recovery of the cost of the investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)&nbsp;&nbsp;&nbsp;&nbsp;the financial condition of and near-term prospects of the issuer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e)&nbsp;&nbsp;&nbsp;&nbsp;for stocks, the extent and duration of the decline.

For bonds, excluding ABS, when it is determined that there is an other-than-temporary impairment, the Company records a write down to the estimated fair value of the bond, which reduces its amortized cost. Credit event related impairments are recorded in the Statement of Operations and Changes in Capital and Surplus within "Net realized capital gains (losses)" and applied to the asset valuation reserve ("AVR"), and interest related impairments are directly applied to the IMR, on an after-tax basis. The AVR is used to stabilize surplus from fluctuations in the market value of bonds, stocks, mortgage loans, real estate, limited partnerships and other investments. Changes in the AVR are accounted for as direct increases or decreases in surplus. The IMR captures interest related realized gains and losses on sales of bonds (net of taxes), preferred stocks, mortgage loans, interest related other-than-temporary impairments (net of taxes) and realized gains or losses on terminated interest rate related derivatives (net of taxes), which are amortized into net income over the expected years to maturity of the investments sold or the item being hedged by the derivative using the grouped method.

The new cost basis of an impaired bond is not adjusted for subsequent increases in estimated fair value. Estimated fair values for bonds, other than private placement bonds, are generally based on quoted market prices or prices obtained from independent pricing services. Estimated fair values for private placement bonds are typically determined primarily by using a discounted cash flow model, which relies upon the average of spread surveys collected from private market intermediaries who are active in both primary and secondary transactions and takes into account, among other factors, the credit quality of the issuer and the reduced liquidity associated with private placements. In determining the estimated fair value of certain securities, including those that are distressed, the discounted cash flow model may also use unobservable inputs, which reflect management's own assumptions about the inputs market participants would use in pricing the asset.

For ABS, when an other-than-temporary impairment has occurred because the Company does not expect to recover the entire amortized cost basis of the security, the amount of the other-than-temporary impairment recognized as a realized loss shall equal the difference between the investment's amortized cost basis and the present value of cash flows expected to be collected, discounted at the ABS's effective interest rate. Credit event related impairments are recorded in the Statement of Operations and Changes in Capital and Surplus within "Net realized capital gains (losses)" and applied to the AVR, and interest related impairments are directly applied to the IMR, on an after-tax basis. Additionally, the amortized cost of the security, less the other-than-temporary impairment recognized as a realized loss, shall become the new amortized cost basis of the investment. When the Company has the intent to sell or cannot assert ability and intent to hold to recovery, the security is impaired to its fair value.

For stocks, when it is determined that there is an other-than-temporary impairment, the Company records a write down in the Statement of Operations and Changes in Capital and Surplus within "Net realized capital gains (losses)" to the estimated fair value, which reduces the cost basis. Impairment losses on stocks are applied to the AVR as they are not interest rate related. The new cost basis of an impaired security is not adjusted for subsequent increases in the estimated fair value. Estimated fair values for publicly traded common stock are based on quoted market prices or prices obtained from independent pricing services. Estimated fair values for privately traded common stock are determined using valuation and discounted cash flow models that require a substantial level of judgment.

18)&nbsp;&nbsp;&nbsp;&nbsp;Separate account assets and liabilities are generally reported at estimated fair value and represent segregated funds, which are invested for certain policyholders, pension funds and other customers in accordance with SSAP No. 56. However, there are some separate account assets and liabilities that support products with guarantees and are carried at the same basis as the general account. The assets consist primarily of common stocks, long-term bonds, real estate, mortgages and short-term investments. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. The liabilities include reserves established to meet withdrawal and future benefit payment contractual provisions. Investment risks associated with fair value changes are generally borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Mortality, policy administration, surrender charges, and investment management fees on the accounts are included in "Other income (loss)." Separate account premiums are income transfers to the separate account,

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

while separate account benefits, surrenders, reserve transfers and other policyholder charges are expense transfers from the separate account. The net amount of this separate account transfer to and from activity is recorded through "Net transfer to (from) separate accounts." Accrued separate account transfer activity is recorded through "Transfers to (from) separate accounts due or accrued."

19)&nbsp;&nbsp;&nbsp;&nbsp;Life premiums are recognized as revenue when due from policyholders under the terms of the insurance contract in accordance with SSAP No. 51. Annuity considerations are recognized as revenue when received. Expenses incurred in connection with acquiring new insurance business, including acquisition costs such as sales commissions, are charged to operations as incurred. Premiums due and deferred include amounts uncollected, due and unpaid, and deferred.

20)&nbsp;&nbsp;&nbsp;&nbsp;Policy reserves are generally based on mortality or morbidity tables and valuation interest rates, which are consistent with statutory requirements and are designed to be sufficient to provide for contractually guaranteed benefits. The Company generally holds reserves greater than those developed using minimum statutory reserving rules. In addition, the Appointed Actuary performs asset adequacy analysis annually to determine whether the policy reserves established are adequate considering the assets supporting them.

21)&nbsp;&nbsp;&nbsp;&nbsp;The amount of dividends to be paid to policyholders is determined annually by the Company's Board of Directors. The aggregate amount of policyholders' dividends is based on statutory results and experience of the Company, including investment income, net realized investment gains or losses over a number of years, mortality experience and other factors. Dividends declared by the Board of Directors, which have not been paid, are included in "Policy dividends" in the Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus.

22)&nbsp;&nbsp;&nbsp;&nbsp;AVR is based upon a formula prescribed by the NAIC and is established as a liability to offset potential non-interest related investment losses. Changes in the AVR are charged or credited directly to surplus.

23)&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense is based upon taxes currently payable and changes in deferred taxes are reported in surplus. Deferred tax assets are subject to admissibility limits.

24)&nbsp;&nbsp;&nbsp;&nbsp;The unpaid balance plus interest on outstanding debt, notes payable, and other borrowings is recorded in "Notes payable and other borrowings." For further details on the Company's debt, see Note 11, Notes payable and other borrowings. The Company does not currently have any outstanding notes payable or other borrowings as of December 31, 2025 and 2024.

25)&nbsp;&nbsp;&nbsp;&nbsp;The Company participates in reinsurance and follows the accounting and reporting principles in SSAP No. 61. Premiums and other amounts payable to reinsurers are recorded through "Other liabilities." Commissions on direct business and commissions and expense allowances on reinsurance assumed are recorded in "Commissions." Commissions and expense allowances on reinsurance ceded and reserve adjustments on reinsurance ceded are reported in "Other income (loss)." Reserve adjustments on reinsurance assumed are reported in "Other expenses (benefits)." See Note 7, Reinsurance, for more information on the Company's reinsurance agreements.

26)&nbsp;&nbsp;&nbsp;&nbsp;Deposit-type contracts do not incorporate mortality or morbidity risk and under statutory accounting principles are not accounted for as insurance contracts. Amounts received as payments for deposit-type contracts are recorded directly to "Deposit-type contracts," and are not reported as revenue.

27)&nbsp;&nbsp;&nbsp;&nbsp;"Other assets" include receivables from parents, subsidiaries, and affiliates, amounts recoverable from reinsurers, and prepaid reinsurance assets. "Other liabilities" include general expenses due and accrued, liability for benefits for employees and agents, deferred gains on affiliated reinsurance, remittances and items not allocated, collateral liabilities for derivatives, provision for experience rating refunds, amounts payable on reinsurance and payables to parents, subsidiaries, and affiliates.

28) Reinsurance contracts that combine premiums and expenses are accounted for on a gross basis in accordance with Life, Deposit-Type and Accident and Health Reinsurance ("SSAP No. 61") and NAIC statutory instructions.

29)&nbsp;&nbsp;&nbsp;&nbsp;NAIC SAP and NJ SAP differ from GAAP in certain respects (including, but not limited to, the Company's adoption of Accounting Standard Update "ASU" 2018-12, *Targeted Improvements to the Accounting for Long-Duration Contracts*, in the first quarter of 2023), which in some cases may be material. The significant differences between SAP and GAAP are noted below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, financial statements of entities in which the Company has a controlling financial interest are reported using the statutory equity method of accounting. Under GAAP, financial statements of entities where the Company has a controlling financial interest are consolidated into the Company's financial statements.

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, policy acquisition costs, such as commissions, and other costs incurred in connection with acquiring new insurance contracts, are expensed when incurred; under GAAP, such costs are generally deferred and amortized over the expected life of the underlying insurance contracts on a constant-level basis at a grouped contract level that approximates straight-line amortization on an individual contract basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, the Commissioner Reserve Valuation Method ("CRVM") is used for the majority of individual insurance reserves; under GAAP, individual insurance policyholder liabilities for traditional forms of insurance are generally established using the net premium method. For interest-sensitive policies, a liability for policyholder account balances is established under GAAP based on the contract value that has accrued to the benefit of the policyholder. Policy valuation assumptions used in the estimation of policyholder liabilities are generally prescribed under SAP; under GAAP, policy valuation assumptions are based upon best estimate cashflow assumptions and global single A rated bond discount rate as of the financial reporting date. Under GAAP, changes in the liability resulting from updating the single A rate, each reporting period, are recorded in Accumulated Other Comprehensive Income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, the Commissioner Annuity Reserve Valuation Method ("CARVM") is used for the majority of individual deferred annuity reserves; under GAAP, individual deferred annuity policyholder liabilities are generally equal to the contract value that has accrued to the benefit of the policyholder plus market risk benefits including living benefit and death benefit guarantees associated with variable annuities that are measured at fair value through earnings except for the portion related to changes in the Company's non-performance risk, which are recorded in Accumulated Other Comprehensive Income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Certain individual life products, variable annuities including registered indexed linked annuities, non-variable annuities, and legacy universal life with secondary guarantees are valued using principles-based reserving (PBR). GAAP reserving does not use PBR, but it follows the appropriate valuation methods in the preceding paragraphs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, reinsurance reserve credits taken by ceding entities as a result of reinsurance contracts are netted against the ceding entity's policy and claim reserves and unpaid claims; under GAAP, reinsurance recoverables are reported as assets. Also, the SAP criteria for determining whether reinsurance contracts qualify for reinsurance accounting differ from GAAP. As a result, certain contracts that qualify for reinsurance accounting under SAP are accounted for as deposits under GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, reinsurance losses are recognized immediately and deferred reinsurance gains are booked to surplus; under GAAP, reinsurance gains/losses are deferred and recognized in earnings over the remaining life of the reinsured block.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, deposits to universal life contracts are credited to revenue; under GAAP, such deposits are reported as increases to the policyholder account balances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, certain contracts, in particular deferred annuities with mortality risk, are considered "life contracts" and, accordingly, premiums associated with these contracts are reported as revenues and any relevant reserves are reported as future policy benefits. Under GAAP, deferred annuities are classified as either "insurance contracts" or "investment contracts" and, accordingly, deposits related to those investment contracts are not reported as revenues. Under GAAP, amounts received for investment contracts are not reported as future policy benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, there is no concept of value of business acquired ("VOBA"); under GAAP, VOBA is recorded as an asset or an additional liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, IMR is established to capture interest rate related realized investment gains and losses, net of tax, on both sales and other-than-temporary impairment of applicable investments (including bonds, mortgage loans, and some derivatives), and is amortized into income over the remaining years to expected maturity of the assets sold or impaired. An IMR asset is subject to limited-time guidance that allows the admittance of net negative IMR up to 10 percent of adjusted capital and surplus. Any IMR asset in excess of that is designated as a nonadmitted asset and is recorded as a reduction to capital and surplus. Under GAAP, no such reserve is required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, AVR is based upon a formula prescribed by the NAIC and is established as a liability to offset potential non-interest rate related investment losses, and changes in the AVR are charged or credited directly to surplus; under GAAP, no such reserve is required.

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, investments in bonds and preferred stocks are generally carried at amortized cost; under GAAP, investments in bonds and preferred stocks, other than those classified as held to maturity, are carried at fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, changes in fair value of equity investments and derivatives not in hedging relationships are reported in surplus; under GAAP, changes in fair value of these items are reported in net income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, surplus notes are recorded as a component of surplus; under GAAP, surplus notes are recorded as debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, an extraordinary distribution approved by PICA's regulator may be recorded as a return of capital; under GAAP, the distribution is recorded as a dividend when PICA has undistributed retained earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, goodwill is subject to admissibility limits and is amortized over a period not to exceed ten years; under GAAP, goodwill is subject to impairment testing and not amortized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, income tax expense is based upon taxes currently payable. Changes in deferred taxes are reported in surplus; under GAAP, changes in deferred taxes are generally recorded in income tax expense or comprehensive income. In addition, the deferred tax asset under SAP is subject to admissibility limits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, an other-than-temporary impairment for bonds (excluding asset-backed securities) is measured as the difference between amortized cost and fair value. Under GAAP, allowances for credit losses are measured as the difference between amortized cost and the net present value of future expected cash flows ("NPV"), this NPV may differ from fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, credit losses are recorded when incurred; under GAAP, credit losses on certain assets are estimated using a current expected credit loss ("CECL") model that estimates future losses over the life of the asset based on relevant information about past events, current conditions, and reasonable and supportable forecasts that may affect collectability of the reported amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, certain debt restructurings are accounted for as Troubled Debt Restructurings ("TDRs") when the Company is the creditor and grants a concession to the debtor that is experiencing financial difficulties. TDRs may result in recognition of losses but prevent recognition of a gain. Under GAAP, the accounting for debt restructurings when the Company is the creditor follows Accounting Standards Codification ("ASC") 310, "Receivables", which may result in loss or gain recognition when certain requirements are met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, an embedded derivative instrument shall not be separated from the host contract and accounted for separately as a derivative instrument; under GAAP, the accounting and bifurcation for embedded derivatives follows ASC 815, "Derivatives and Hedging", with the change in fair value during each reporting period recorded in net income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, for option contracts where the payment or receipt of premiums is deferred until contract maturity ("deferred premiums"), these premium amounts are recorded separately from the fair value of the derivative reported on the balance sheet. Under GAAP, these "deferred premiums" are incorporated into the fair value of the derivative reported on the balance sheet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, all leases are considered operating leases and expensed over the term of the lease; under GAAP, leases are recorded on the balance sheet as "right-of-use" assets and lease liabilities within "Other assets" and "Other liabilities" respectively. Leases are classified as either operating or finance leases, where the Company is a lessee, and expensed in accordance with ASC 842 "Leases."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under SAP, certain assets designated as nonadmitted are excluded from assets by a direct charge to surplus; under GAAP, such assets are carried on the balance sheet with appropriate valuation allowances.

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**1E. &nbsp;&nbsp;&nbsp;&nbsp;Closed Block**

On the date of demutualization, the Company established a Closed Block for certain individual life insurance policies and annuities issued by the Company in the United States and a separate Closed Block for participating individual life insurance policies issued by the Company's Canadian branch (collectively the "Closed Block"). The policies included in the Closed Block are specified individual life insurance policies and individual annuity contracts that were in force on the effective date of the Plan of Reorganization and on which the Company is currently paying or expects to pay experience-based policy dividends. Assets have been allocated to the Closed Block in an amount that has been determined to produce cash flows which, together with revenues from policies included in the Closed Block, are reasonably expected to be sufficient to support obligations and liabilities relating to these policies, including provision for payment of benefits, certain expenses, and taxes and to provide for continuation of the policyholder dividend scales in effect in 2000, if experience underlying such scale continues and for appropriate adjustments in such scales if the experience changes. The Closed Block assets, the cash flows generated by the Closed Block assets and the anticipated revenues from the policies in the Closed Block will benefit only the policyholders in the Closed Block. To the extent that, over time, cash flows from the assets allocated to the Closed Block and claims and other experience related to the Closed Block are, in the aggregate, more or less favorable than what was assumed when the Closed Block was established, total dividends paid to Closed Block policyholders in the future may be greater than or less than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect in 2000 had been continued. Any cash flows in excess of amounts assumed will be available for distribution over time to Closed Block policyholders and will not be available to the stockholder. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside of the Closed Block. The Closed Block will continue in effect as long as any policy in the Closed Block remains in-force.

On January 1, 2015, the Company entered into a reinsurance agreement with its subsidiary PLIC, in which the Company reinsured substantially all of the outstanding liabilities of its regulatory Closed Block, primarily on a coinsurance basis. See Note 7, Reinsurance, for additional information.

**1F. &nbsp;&nbsp;&nbsp;&nbsp;Income Taxes**

The Company and its domestic subsidiaries file a consolidated federal income tax return with Prudential Financial. The Internal Revenue Code of 1986, as amended (the "Code"), taxes the Company on operating income after dividends to policyholders plus realized gains/losses.

Statement of Statutory Accounting Principles No. 101, Income Taxes ("SSAP 101"), provides regulatory-based thresholds that determine the reversal period and statutory surplus limitations that the Company must use in computing its net admitted Deferred Tax Asset "DTA." In addition, SSAP No. 101 provides specific guidance for accounting for uncertain tax positions and requires additional disclosure regarding the impact of tax planning strategies on the net admitted DTA.

Deferred income taxes are recognized in accordance with SSAP No. 101, based upon enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. Tax planning strategies are relied upon in limited circumstances to support the admissibility of deferred tax assets in accordance with SSAP No. 101. Income from sources outside the United States is taxed under applicable foreign statutes. Pursuant to a tax allocation arrangement, total federal income tax expense is determined on a separate company basis. Members with losses record current tax benefits to the extent such losses are recognized in the consolidated federal tax return.

*<u>Tax Law Change.</u>* H.R.1, also referred to as the "One Big Beautiful Bill Act" (the "Tax Act of 2025"), was enacted into law on July 4, 2025. While the Company continues to evaluate the impact of the Tax Act of 2025 on its future consolidated financial statements and related disclosures, the Company does not anticipate that the provisions of the Tax Act of 2025 will have a material impact on its total tax positions in 2026 and forward.

**1G. &nbsp;&nbsp;&nbsp;&nbsp;Reclassification**

Certain amounts in prior year footnote disclosures have been reclassified to conform to the current year presentation.

**2.&nbsp;&nbsp;&nbsp;&nbsp;ACCOUNTING CHANGES AND CORRECTIONS OF ERRORS**

Accounting changes adopted to conform to the provisions of the Manual are reported as changes in accounting principles. The cumulative effect of changes in accounting principles is reported as an adjustment to unassigned funds (surplus) in the period of the change in accounting principle. The cumulative effect is the difference between the amount of capital and surplus at the beginning of the year and the amount of capital and surplus that would have been reported at that date if the new accounting principles had been applied retroactively for all prior periods.

In December 2025, the NAIC adopted revisions to SSAP No. 101, Income Taxes ("SSAP No. 101) to incorporate simplified U.S. GAAP income tax accounting guidance that fully codifies the interim income-tax calculation method. Under the revised guidance, the tax

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

effects of enacted changes in tax laws or rates on current-year taxes are reflected prospectively in the annual effective tax rate beginning in the interim period that includes the enactment date. Also, changes to deferred tax assets and liabilities resulting from new tax legislation are recognized in the period of enactment and are not allocated among interim periods. The revisions to SSAP No. 101 were effective in December 2025.

In August 2025, NAIC adopted revisions to SSAP No. 61, Life, Deposit Type, Accident and Health Reinsurance ("SSAP No. 61"), to require aggregate risk transfer evaluation for combination reinsurance agreements with interdependent features such as experience refunds, and linked Yearly Renewable Term ("YRT") and coinsurance components. The revisions align SSAP No. 61 with guidance in SSAP No. 62, Property and Casualty Reinsurance, and incorporate reference to paragraph 6 of A791 to emphasize reinsurance contract aggregate risk transfer evaluation. The revisions are effective immediately for new or amended agreements, with application to existing agreements effective on December 31, 2026. The changes may reduce reserve credit where aggregation affects risk transfer outcomes. The Company is currently assessing the potential impact of implementing these revisions on its financial statements and disclosures. Effective August 2025, the Company did not enter into or amend combination reinsurance agreements within the scope of the guidance.

In March 2025, NAIC adopted revisions to SSAP No. 56 to clarify consistent accounting guidance for book value separate accounts, including prescribed accounting guidance for invested asset transfers to/from the general account and separate account as well as clarification of invested assets permitted to be held in book value separate accounts. The revisions were effective on January 1, 2025, and the Company currently applies the clarifications to guaranteed accumulation contracts including pension risk transfers contracts that are reported at book value rather than fair value.

In March 2025, NAIC adopted revisions to SSAP No. 1, Accounting Policies, Risks and Uncertainties and Other Disclosures ("SSAP No. 1") to specify that assets that are reinsured under modified coinsurance and funds withheld arrangements shall be captured as restricted assets. These revisions illustrate how modco and funds withheld assets shall be captured including aggregating all restricted assets in a single table, identifying differences from items reported as restricted between the restricted assets table in Note 5L and the general interrogatories in the Annual Statement. The revisions were effective on December 31, 2025, and have resulted in increased disclosure of modco and funds withheld assets within the restricted asset footnote.

In March 2024, the NAIC adopted revisions to SSAP No. 21, Other Admitted Assets ("SSAP No. 21") to provide guidance for debt securities that do not qualify as bonds under the principles-based bond definition and incorporate a new measurement method for residual interests. The Company adopted the revised guidance for periods starting on January 1, 2025. Specific to residual interests, the Company elected the practical expedient method, calculating the Book/Adjusted Carrying Value ("BACV") such that all distributions received are treated as a reduction in BACV.

In September 2023, the NAIC adopted INT 2023-04, Inflation Reduction Act - Corporate Alternative Minimum Tax ("INT 2023-04"), which provides statutory accounting guidance on the admissibility of CAMT credits under SSAP No. 101. INT 2023-04 modified SSAP No. 101 to provide statutory accounting guidance on valuation allowance, admissibility, disclosures, and transition guidance for year-end 2023. INT 2023-04 is effective for reporting on or after December 31, 2023.

In August 2023, the NAIC adopted INT No. 23-01, Net Negative (Disallowed) Interest Maintenance Reserve ("INT No. 23-01"), which provides optional, limited-time guidance that allows the admittance of net negative (disallowed) IMR up to 10 percent of adjusted capital and surplus. INT No. 23-01 is effective from third quarter 2023 until December 31, 2025. INT No. 23-01 will automatically be nullified on January 1, 2026, although the NAIC may decide to extend the expiration date of the INT. The Company has adopted INT No. 23-01 and has admitted negative IMR of $1.4 billion as of December 31, 2024. See Note 17 for full details.

In August 2023, the NAIC revised SSAP No. 26, Bonds ("SSAP No. 26") and SSAP No. 43, Asset-Backed Securities ("SSAP No. 43"), effective January 1, 2025. The revisions adopt a principles-based bond definition for determining the investments eligible for bond accounting and reporting as issuer credit obligations and loan-backed securities. In September 2024, the NAIC revised SSAP No. 26 to clarify that debt securities issued by funds that represent operating entities are permitted as issuer credit obligations. In November 2024, the NAIC adopted INT No. 24-01, Principles-Based Bond Definition Implementation Questions and Answers, which details interpretations on how the SSAP guidance should be applied to specific investment structures or investment characteristics. In December 2024, the NAIC revised SSAP No. 26 to reinstate disclosure language and reporting category provisions. The revisions specify that, in the financial statements, for each annual balance sheet presented, disclosures for assets receiving bond treatment should be categorized and subcategorized as reported in Annual Statement Schedule D-Part 1, Section 1 (Issuer Credit Obligations) and Section 2 (Asset-Backed Securities). The Company adopted the revised guidance for periods starting on January 1, 2025. The aggregate book adjusted carrying value for all securities reclassified out of Bonds as of January 1, 2025 was approximately $6.5 million in the general account. The aggregate book adjusted carrying value after transition for all securities reclassified out of Bonds that resulted with a change in measurement basis was approximately $0.5 million.

In March 2023, the NAIC revised SSAP No. 25, Affiliates and Other Related Parties ("SSAP No. 25") to clarify that any invested asset held by a reporting entity which is issued by an affiliated entity, or which includes the obligations of an affiliated entity, is an affiliated investment. The Company adopted this guidance upon issuance, and it did not have a material effect on the Company's financial statements.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

In 2025, the Company determined that long-term care reserves were understated in the prior year by $7.9 million. A correction related to the prior year was recorded, net of tax, through "Other changes, net" on the Company's Statement of Operations and Changes in Capital and Surplus in 2025.

In the third quarter of 2025, the Company determined that group annuity reserves were understated in the prior year by $27.1 million. A correction related to the prior year was recorded, net of tax, through "Other changes, net" on the Company's Statement of Operations and Changes in Capital and Surplus during the third quarter of 2025.

In the second quarter of 2025, the Company determined that a reinsurance payable was overstated in the prior year by $9 million. A correction related to the prior year was recorded, net of tax, through "Other changes, net" on the Company's Statement of Operations and Changes in Capital and Surplus during the second quarter of 2025.

In the second quarter of 2025, the Company determined that annuity VM-21 reserves were understated in the prior year by $9 million. A correction related to the prior year was recorded, net of tax, through "Other changes, net" on the Company's Statement of Operations and Changes in Capital and Surplus during the second quarter of 2025.

In the second quarter of 2025, the Company determined that expenses were understated in the prior year by $15 million. A correction related to the prior year was recorded, net of tax, through "Other changes, net" on the Company's Statement of Operations during the second quarter of 2025. A $3.2 million increase in net admitted deferred tax asset was recorded through "Change in net deferred income tax", and a $5.4 million increase in non-admitted deferred tax asset was recorded through "Change in nonadmitted assets" in 3Q25.

In the first quarter of 2025, the Company determined that reinsurance expense allowance was understated in the prior year by $7 million. A correction related to the prior year was recorded, net of tax, through "Other changes, net" on the Company's Statement of Operations and Changes in Capital and Surplus during the first quarter of 2025.

In the fourth quarter of 2024, the Company determined that long-term care reserves were understated in the prior year by $3 million. A correction related to the prior year was recorded through "Other changes, net" on the Company's Statement of Operations and Changes in Capital and Surplus during the fourth quarter of 2024.

In the fourth quarter of 2024, the Company determined that expenses were understated in the prior year by $15 million. A correction related to the prior year was recorded, net of tax, through "Other changes, net" on the Company's Statement of Operations and Changes in Capital and Surplus during the fourth quarter of 2024.

In the second quarter of 2024, the Company determined that miscellaneous income was understated in the prior year by $5 million. A correction related to the prior year was recorded, net of tax, through "Other changes, net" on the Company's Statement of Operations and Changes in Capital and Surplus during the second quarter of 2024.

In the first quarter of 2024, the Company determined that net investment income was overstated in the prior year by $46 million. A correction related to the prior year was recorded through "Other changes, net" on the Company's Statement of Operations and Changes in Capital and Surplus during the first quarter of 2024, with a related adjustment of $10 million in deferred taxes recorded through "Change in net deferred income tax" and $17 million in non-admitted deferred taxes recorded through "Change in nonadmitted assets."

In the fourth quarter of 2023, the Company determined that an asset management fee expense was overstated in the prior year by $14 million. A correction related to the prior year was recorded, net of tax, through "Other changes, net" on the Company's Statement of Operations and Changes in Capital and Surplus during the fourth quarter of 2023. In the first quarter of 2024, the Company concluded that the initial assessment of the error was understated. Therefore, an increase of $1 million was recorded, net of tax, through "Other changes, net" on the Company's Statement of Operations and Changes in Capital and Surplus during the first quarter of 2024.

In the third quarter of 2023, the Company determined that interest credited on a ceded reinsurance treaty was overstated in the prior year by $7 million. A correction related to the prior year was recorded, net of tax, through "Other changes, net" on the Company's Statement of Operations and Changes in Capital and Surplus during the third quarter of 2023.

During the second quarter of 2023, the Company determined that miscellaneous income was understated in the prior year by $10 million as a result of an error in the balance ceded to an affiliate, Lotus Re. A correction related to the prior year was recorded, net of tax, through "Other changes, net" on the Company's Statement of Operations and Changes in Capital and Surplus during the second quarter of 2023.

During the first quarter of 2023, an error was identified on the VM-21 statutory reserves of the Company and its subsidiary, Pruco Life Insurance Company ("PLAZ" or "Pruco Life") at December 31, 2022. This error resulted in an overstatement of the Company's future policy benefits and claims of $55 million, and PLAZ's future policy benefits and claims of $420 million, the latter of which resulted in an understatement of the Company's common stock at December 31, 2022. On an after-tax basis, the Company's surplus was understated by $491 million at December 31, 2022. The $55 million correction of reserves was recorded through "Other changes, net" on the

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

Company's Statement of Operations and Changes in Capital and Surplus, with the offset recorded to "Future policy benefits and claims" on the Company's Statement of Admitted Assets, Liabilities and Capital and Surplus during the first quarter of 2023. There was a corresponding adjustment of $4 million in current tax reported on "Other changes, net" on the Company's Statement of Operations and Changes in Capital and Surplus, with the offsetting impact reflected in "Current federal income tax recoverable" on the Company's Statement of Admitted Assets, Liabilities and Capital and Surplus during the first quarter of 2023. A correction for the Company's investment in its subsidiary of $367 million was recorded through "Change in net unrealized capital gains (losses) on the Company's Statement of Operations and Changes in Capital and Surplus, with the offsetting impact reported in "Common stocks" on the Company's Statement of Admitted Assets, Liabilities and Capital and Surplus during the first quarter of 2023. There were corresponding adjustments to net deferred taxes of ($16) million through "Change in net deferred income tax" on the Company's Statement of Operations and Changes in Capital and Surplus, and the reversal of $80 million in "Change in nonadmitted assets" on the Company's Statement of Operations and Changes in Capital and Surplus, both of which were offset in "Net deferred tax asset" on the Company's Statement of Admitted Assets, Liabilities and Capital and Surplus during the first quarter of 2023. The adjustments increased total assets by $436 million, decreased total liabilities by $55 million and increased total surplus by $491 million during the first quarter of 2023.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**3.&nbsp;&nbsp;&nbsp;&nbsp;BUSINESS COMBINATIONS AND GOODWILL**

**&nbsp;&nbsp;&nbsp;&nbsp;Statutory Purchase Method**

Goodwill represents the excess of the amounts the Company paid to acquire subsidiaries and other businesses over the fair value of their net assets at the date of acquisition. When indication of impairment exists, management tests goodwill for the impairment based upon estimates of the fair value of the acquired entity to which the goodwill relates and compares the carrying value of the acquired entity, including the recorded goodwill, to its estimated fair value at that date. Goodwill is considered impaired when the fair value of the investment in the acquired entity is less than the carrying value of the investment, including the recorded goodwill and the decline is considered other-than-temporary. Given changes in facts and circumstances, this test could lead to reductions in goodwill that could have an adverse effect of the Company's financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;The following tables present the goodwill held by the Company as of the dates indicated:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Purchased entity** | **Acquisition date** | **Cost of acquired entity** | **Original amount of Goodwill** | **Original amount of Admitted Goodwill** | **Admitted Goodwill as of the reporting date** | **Amount of Goodwill amortized during the reporting period** | **Book Value of SCA** | **Admitted Goodwill as a % of SCA BACV, gross of Admitted Goodwill** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | |
| Riesel HoldCo, LLC | 12/31/2022 | $2 | $— | $— | $— | $— | $1 | (13.0)%\* |
| **Total** | XXX | $2 | $— | $— | $— | $— | $1 | XXX |

---

\*Revised to update amounts reported in the 2025 annual statement.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Purchased entity** | **Acquisition date** | **Cost of acquired entity** | **Original amount of Goodwill** | **Original amount of Admitted Goodwill** | **Admitted Goodwill as of the reporting date** | **Amount of Goodwill amortized during the reporting period** | **Book Value of SCA** | **Admitted Goodwill as a % of SCA BACV, gross of Admitted Goodwill** |
| | | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | | |
| Pirlo Energy Holdings, LLC | 9/12/2016 | $48 | $— | $— | $— | $— | $1 | 0.2% |
| **Total**  | XXX | $48 | $— | $— | $— | $— | $1 | XXX |

---

**Impairment Loss** 

The Company did not recognize any impairment losses related to business combinations or goodwill as of December 31, 2025.

Based on operational performance, the book value of Pirlo Energy Holdings, LLC, an other invested asset of the Company, was written down to zero and impairments of $3.5 million and $32.7 million were recorded as realized losses as of December 31, 2024 and December 31, 2023, respectively.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Subcomponents and Calculation of Adjusted Surplus and Total Admitted Goodwill**

---

| | | |
|:---|:---|:---|
| **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Calculation of Limitation Using Prior Quarter Numbers** | **Current Reporting Period** |
| | **($ in millions)** | **($ in millions)** |
| Capital & Surplus | $15845 |  |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Admitted Positive Goodwill |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Admitted EDP Equipment & Operating System Software | 164 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Admitted Net Deferred Taxes | 2086 |  |
| Adjusted Capital and Surplus | 13595 |  |
| Limitation on amount of goodwill | 1360 |  |
| Current period reported Admitted Goodwill |  | $— |
| Current Period Admitted Goodwill as a % of prior period Adjusted Capital and Surplus |  | 0.0% |

---

---

| | | |
|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Calculation of Limitation Using Prior Quarter Numbers** | **Current Reporting Period** |
| | **($ in millions)** | **($ in millions)** |
| Capital & Surplus | $17862 |  |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Admitted Positive Goodwill |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Admitted EDP Equipment & Operating System Software | 163 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Admitted Net Deferred Taxes | 2174 |  |
| Adjusted Capital and Surplus | 15525 |  |
| Limitation on amount of goodwill | 1553 |  |
| Current period reported Admitted Goodwill |  | $— |
| Current Period Admitted Goodwill as a % of prior period Adjusted Capital and Surplus |  | 0.0% |

---

**4.&nbsp;&nbsp;&nbsp;&nbsp;DISCONTINUED OPERATIONS**

&nbsp;&nbsp;&nbsp;&nbsp;The Company did not have any material discontinued operations during 2025, 2024 or 2023.

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**5.&nbsp;&nbsp;&nbsp;&nbsp;INVESTMENTS** 

**5A. &nbsp;&nbsp;&nbsp;&nbsp;Bonds and Stocks**

The Company invests in both investment grade and below investment grade public and private bonds. The SVO evaluates the investments of insurers for statutory purposes and assigns bonds one of twenty categories called "NAIC Designations." In general, NAIC Designations of "1A" through "1G" highest quality or "2A" through "2C" high quality, include bonds considered investment grade, which include securities rated Baa3 or higher by Moody's or BBB- or higher by Standard & Poor's. NAIC Designations of "3A" through "6" generally include bonds referred to as below investment grade, which include securities rated Ba1 or lower by Moody's and BB+ or lower by Standard & Poor's. Securities in these lowest ten categories approximated 5.16% and 5.06% of the Company's bonds as of December 31, 2025 and 2024, respectively.

The NAIC Designations for commercial mortgage-backed securities and non-agency residential mortgage-backed securities, including PICA's asset-backed securities collateralized by sub-prime mortgages, are based on security level expected losses as modeled by an independent third-party (engaged by the NAIC) and the statutory carrying value of the security, including any purchase discounts or impairment charges previously recognized.

As a result of time lags between the funding of investments, the finalization of legal documents, and the completion of the SVO filing process, the bond portfolio generally includes securities that have not yet been rated by the SVO as of each balance sheet date. Pending receipt of SVO designations, the categorization of these securities by NAIC Designation is based on the expected ratings indicated by internal analysis. In the General Account, securities identified by a Z suffix (other than securities purchased within 120 days of December 31, 2025) with an aggregate statement value of approximately 0.46% of qualifying assets, have not been filed with the SVO.

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

&nbsp;&nbsp;&nbsp;&nbsp;The following tables set forth information relating to bonds and preferred stocks as of the dates indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Carrying Amount** | **Gross Unrealized Gains** | **Gross Unrealized Losses** | **Estimated Fair Value** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Issuer Credit Obligations:** | | | | |
| US governments | $7164 | $37 | $780 | $6421 |
| All other governments | 533 | 48 | 6 | 575 |
| Non-U.S. sovereign jurisdictions | 982 | 8 | 112 | 878 |
| Municipal bonds(1) | 2131 | 19 | 249 | 1901 |
| Project finance bonds | 1705 | 29 | 44 | 1690 |
| Corporate bonds | 57170 | 714 | 5619 | 52265 |
| Single entity backed obligations | 15 |  |  | 15 |
| SVO-Identified bond exchange traded funds | 256 |  |  | 256 |
| Bonds issued from SEC-Registered business development corps, closed end funds & REITS | 4153 | 5 | 258 | 3900 |
| Bank loans(2) | 1573 | 18 | 19 | 1572 |
| Mortgage loans that qualify as SVO-Identified credit tenant loans | 2136 | 26 | 183 | 1979 |
| Certificates of deposit | 394 |  |  | 394 |
| Other issuer credit obligations | 427 | 14 | 29 | 412 |
| Subtotal unaffiliated issuer credit obligations | 78639 | 918 | 7299 | 72258 |
| Affiliated issuer credit obligations(3) | 2757 | 22 | 25 | 2754 |
| Total issuer credit obligations | 81396 | 940 | 7324 | 75012 |
| **Asset-Backed Securities:** |  |  |  |  |
| Financial asset-backed securities - RMBS(4) | 1697 | 47 | 40 | 1704 |
| Financial asset-backed securities - CMBS(5) | 2838 | 16 | 123 | 2731 |
| Financial asset-backed securities - CLOs/CBOs/CDOs | 4318 | 7 | 1 | 4324 |
| Financial asset-backed securities - equity | 296 | 4 |  | 300 |
| Financial asset-backed securities - other | 1748 | 30 | 10 | 1768 |
| Non-financial asset-backed securities - leases | 251 | 3 | 1 | 253 |
| Non-financial asset-backed securities - other | 612 | 10 | 15 | 607 |
| Subtotal unaffiliated asset-backed securities | 11760 | 117 | 190 | 11687 |
| Affiliated asset-backed securities | 494 | 1 | 3 | 492 |
| Total asset-backed securities | 12254 | 118 | 193 | 12179 |
| &nbsp;&nbsp;**Total bonds** | $93650 | $1058 | $7517 | $87191 |
| **Unaffiliated Preferred Stocks** |  |  |  |  |
| Redeemable | $58 | $20 | $12 | $66 |
| Non-redeemable | 60 | 2 | 2 | 60 |
| **Total unaffiliated preferred stocks**  | $118 | $22 | $14 | $126 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Carrying amount includes $231 million and $1,900 million (fair value $221 million and $1,680 million), respectively of general obligation and special revenue municipal bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Carrying amount includes $805 million and $768 million (fair value $806 million and $766 million), respectively of issued and acquired bank loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Primarily includes single entity backed obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Carrying amount includes $73 million, $675 million and $949 million (fair value $65 million, $648 million and $991 million), respectively of agency RMBS guaranteed, agency RMBS not/partially guaranteed and non-agency financial asset-backed residential mortgage-backed securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Carrying amount includes $764 million and $2,074 million (fair value $685 million and $2,046 million), respectively of agency CMBS not/partially guaranteed and non-agency financial asset-backed commercial mortgage-backed securities.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Carrying Amount** | **Gross Unrealized Gains** | **Gross Unrealized Losses** | **Estimated Fair Value** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Bonds**  | | | | |
| U.S. governments | $5497 | $20 | $819 | $4698 |
| All other governments | 1672 | 16 | 215 | 1473 |
| States - territories and possessions | 222 | 1 | 24 | 199 |
| Political subdivisions of states, territories and possessions | 163 | 3 | 11 | 155 |
| Special revenue and special assessment obligation all non- guaranteed obligations of agencies | 3617 | 47 | 391 | 3273 |
| Hybrid Securities | 76 | 3 |  | 79 |
| Industrial & miscellaneous (unaffiliated) | 71317 | 615 | 7188 | 64744 |
| Parent - subsidiaries and affiliates | 2731 | 5 | 66 | 2670 |
| Unaffiliated Bank Loans | 556 | 15 | 12 | 559 |
| **Total bonds**  | $85851 | $725 | $8726 | $77850 |
| **Unaffiliated Preferred Stocks** |  |  |  |  |
| Redeemable | $67 | $26 | $1 | $92 |
| Non-redeemable | 121 |  |  | 121 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total unaffiliated preferred stocks**  | $188 | $26 | $1 | $213 |

---

The following table sets forth the carrying amount and estimated fair value of bonds including short-term investments categorized by contractual maturity. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities are shown separately in the table below, as they are not due at a single maturity date.

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** |
| | **Carrying Amount** | **Estimated Fair Value** |
| | **(in millions)** | **(in millions)** |
| Due in one year or less | $5055 | $5048 |
| Due after one year through five years | 16034 | 15983 |
| Due after five years through ten years | 14312 | 13971 |
| Due after ten years | 46741 | 40756 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Subtotal**  | $82142 | $75758 |
| Financial asset-backed securities | $11391 | $11319 |
| Non-Financial asset-backed securities | 863 | 860 |
| **Total**  | $94396 | $87937 |

---

Proceeds from the sale of bonds were $6,414 million, $5,732 million, and $7,485 million for the years ended December 31, 2025, 2024 and 2023, respectively. Gross gains of $87 million, $71 million, and $54 million and gross losses of $250 million, $724 million, and $488 million were realized on such sales during the years ended December 31, 2025, 2024 and 2023, respectively.

Write-downs for impairments, which were deemed to be other-than-temporary, for bonds were $99 million, $127 million and $55 million, for preferred stocks were $2 million, $0 million and $1 million, and for unaffiliated common stocks were $9 million, $4 million and $8 million for the years ended December 31, 2025, 2024 and 2023, respectively.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The level of other-than-temporary impairments generally reflects economic conditions and is expected to increase when economic conditions worsen and to decrease when economic conditions improve. Historically, the causes of other-than-temporary impairments have been specific to each individual issuer and have not directly resulted in impairments to other securities within the same industry or geographic region. The Company may also realize additional credit and interest rate related losses through sales of investments pursuant to our credit risk and portfolio management objectives.

The following tables set forth the cost and fair value of bonds and unaffiliated preferred stock and common stock lots held for which the estimated fair value had temporarily declined and remained below cost as of the dates indicated:

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Declines for Less Than Twelve Months** | **Declines for Less Than Twelve Months** | **Declines for Less Than Twelve Months** | **Declines for Greater Than Twelve Months** | **Declines for Greater Than Twelve Months** | **Declines for Greater Than Twelve Months** |
| | **Cost** | **Fair Value** | **Difference** | **Cost** | **Fair Value** | **Difference** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Bonds | $8170 | $7995 | $(175) | $48599 | $41232 | $(7367) |
| Unaffiliated Preferred and Common stocks | 482 | 477 | (5) | 1 |  | (1) |
| **Total**  | $8652 | $8472 | $(180) | $48600 | $41232 | $(7368) |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Declines for Less Than Twelve Months** | **Declines for Less Than Twelve Months** | **Declines for Less Than Twelve Months** | **Declines for Greater Than Twelve Months** | **Declines for Greater Than Twelve Months** | **Declines for Greater Than Twelve Months** |
|  | **Cost** | **Fair Value** | **Difference** | **Cost** | **Fair Value** | **Difference** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Bonds | $15792 | $15255 | $(537) | $51965 | $42769 | $(9196) |
| Unaffiliated Preferred and Common stocks | 599 | 584 | (15) | 21 | 19 | (2) |
| **Total**  | $16391 | $15839 | $(552) | $51986 | $42788 | $(9198) |

---

These tables reflect the difference of cost and fair value for such lots and differs from gross unrealized losses reported in the previous table, which reflects the unrealized losses of aggregate lots of the identical bonds and unaffiliated preferred stocks due to the varying costs associated with each lot purchased. In accordance with its policy described in Note 1D, the Company concluded that an adjustment to surplus for other-than-temporary impairments for these bonds and stocks was not warranted at December 31, 2025 or 2024. These conclusions were based on a detailed analysis of the underlying credit and cash flows on each bond. As of December 31, 2025, the Company does not intend to sell these bonds and stocks, and it is not more likely than not that the Company will be required to sell these bonds and stocks before the anticipated recovery of the remaining cost basis.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**5B. &nbsp;&nbsp;&nbsp;&nbsp;Mortgage Loans**

The maximum and minimum lending rates for new mortgage loans for the year ended December 31, 2025 were agricultural loans 11.25% and 4.89%; commercial loans 15.00% and 3.98%; residential loans 9.75% and 5.50%. The maximum and minimum lending rates for new mortgage loans for the year ended December 31, 2024 were agricultural loans 8.83% and 4.80%; commercial loans 15.00% and 3.77%. For both the years ended December 31, 2025 and 2024 there were no purchase money mortgages loaned.

The maximum percentage of any one loan to the value of security at the time of the loan, exclusive of insured or guaranteed or purchase money mortgages is no greater than 85%, except loans made pursuant to title 17B, Chapter 20, Section 1h, Revised Statutes of New Jersey.

As of December 31, 2025, the commercial mortgage and agricultural property loans were geographically dispersed or distributed throughout the United States with the largest concentrations in California (31.48%), New York (5.81%) and Washington (5.50%) and included loans secured by properties in Europe, Mexico, Australia and Canada and the residential mortgage loans were in Florida (13.38%), California (10.83%), and New York (8.96%). As of December 31, 2024, the commercial mortgage and agricultural property loans were geographically dispersed or distributed throughout the United States with the largest concentrations in California (30.91%), Texas (6.72%) and Washington (5.34%) and included loans secured by properties in Europe, Mexico, Australia and Canada.

There were no taxes, assessments, or any amounts advanced not included in the mortgage loan total as of both December 31, 2025 and 2024.

The Company invests in investment grade and below investment grade commercial mortgage and agricultural property loans. Investment grade reflects credit risk that is comparable to corporate bonds rated BBB-/Baa3 or better by S&P/Moody's. There were $17,092 million of investment grade and $2,031 million of below investment grade commercial mortgage and agricultural property loans as of December 31, 2025. There were $17,373 million of investment grade and $1,865 million of below investment grade commercial mortgage and agricultural property loans as of December 31, 2024.

The portfolio is reviewed on an ongoing basis; and if certain criteria are met, loans are assigned one of the following "watch list" categories: 1) "Closely Monitored" includes a variety of considerations such as when loan metrics fall below acceptable levels, the borrower is not cooperative or has requested a material modification, or at the direction of the portfolio manager, 2) "Not in Good Standing" includes loans in default or there is a high probability of loss of principal, such as when the loan is in the process of foreclosure or the borrower is in bankruptcy. Our workout and special servicing professionals manage the loans on the watch list.

We establish an allowance for losses to provide for the risk of credit losses inherent in our outstanding loans. The Company defines an impaired loan as a loan for which it estimates it is probable that amounts due according to the contractual terms of the loan agreement will not be collected. Valuation allowance for an impaired loan is recorded based on the fair value of the collateral less the estimated costs to obtain and sell. The valuation allowance for mortgage loans can increase or decrease from period to period based on these factors.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The following tables set forth the age analysis of mortgage loans and identification of mortgage loans in which the insurer is a participant or co-lender in a mortgage loan agreement as of the dates indicated:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Agricultural** | **Residential** | **Residential** | **Commercial** | **Commercial** | | |
| | **Agricultural** | **Insured** | **All Other** | **Insured** | **All Other** |<br>**Mezzanine** |<br>**Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Recorded Investment (All)** | | | | | | | |
| Current | $3060 | $— | $897 | $— | $15478 | $105 | $19540 |
| 30-59 Days Past Due |  |  |  |  |  |  |  |
| 60-89 Days Past Due |  |  |  |  |  |  |  |
| 90-179 Days Past Due | 16 |  |  |  | 6 |  | 22 |
| 180+ Days Past Due | 454 |  |  |  | 4 |  | 458 |
| **Accruing Interest 90-179 Days Past Due** |  |  |  |  |  |  |  |
| Recorded Investment |  |  |  |  |  |  |  |
| Interest Accrued |  |  |  |  |  |  |  |
| **Accruing Interest 180+ Days Past Due** |  |  |  |  |  |  |  |
| Recorded Investment |  |  |  |  |  |  |  |
| Interest Accrued |  |  |  |  |  |  |  |
| **Interest Reduced**  |  |  |  |  |  |  |  |
| Recorded Investment |  |  |  |  |  |  |  |
| Number of Loans |  |  |  |  |  |  |  |
| Percent Reduced | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| **Participant or Co-lender in a Mortgage Loan Agreement** |  |  |  |  |  |  |  |
| Recorded Investment |  |  |  |  | 99 |  | 99 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Agricultural** | **Residential** | **Residential** | **Commercial** | **Commercial** | **Mezzanine** | **Total** |
| | **Agricultural** | **Insured** | **All Other** | **Insured** | **All Other** | **Mezzanine** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Recorded Investment (All)** | | | | | | | |
| Current | $3151 | $— | $— | $— | $15683 | $64 | $18898 |
| 30-59 Days Past Due |  |  |  |  |  |  |  |
| 60-89 Days Past Due | 8 |  |  |  |  |  | 8 |
| 90-179 Days Past Due |  |  |  |  |  |  |  |
| 180+ Days Past Due | 315 |  |  |  | 17 |  | 332 |
| **Accruing Interest 90-179 Days Past Due** |  |  |  |  |  |  |  |
| Recorded Investment |  |  |  |  |  |  |  |
| Interest Accrued |  |  |  |  |  |  |  |
| **Accruing Interest 180+ Days Past Due** |  |  |  |  |  |  |  |
| Recorded Investment |  |  |  |  |  |  |  |
| Interest Accrued |  |  |  |  |  |  |  |
| **Interest Reduced**  |  |  |  |  |  |  |  |
| Recorded Investment |  |  |  |  | 14 |  | 14 |
| Number of Loans |  |  |  |  | 1 |  | 1 |
| Percent Reduced | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.1% |
| **Participant or Co-lender in a Mortgage Loan Agreement** |  |  |  |  |  |  |  |
| Recorded Investment |  |  |  |  | 127 |  | 127 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The following tables set forth the investments in impaired loans with or without allowance for credit losses and impaired loans subject to a participant or co-lender mortgage loan agreement for which the reporting entity is restricted from unilaterally foreclosing on the mortgage loan as of the dates indicated:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Agricultural** | **Residential** | **Residential** | **Commercial** | **Commercial** | **Mezzanine** | **Total** |
| | **Agricultural** | **Insured** | **All Other** | **Insured** | **All Other** | **Mezzanine** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| With allowance for credit losses | $83 | $— | $— | $— | $15 | $— | $98 |
| No allowance for credit losses | 404 |  |  |  |  |  | 404 |
| **Total**  | $487 | $— | $— | $— | $15 | $— | $502 |
| Subject to a participant mortgage loan agreement for which the reporting entity is restricted from<br>unilaterally foreclosing on the mortgage loan | $— | $— | $— | $— | $12 | $— | $12 |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Agricultural** | **Residential** | **Residential** | **Commercial** | **Commercial** | **Mezzanine** | **Total** |
|  | **Agricultural** | **Insured** | **All Other** | **Insured** | **All Other** | **Mezzanine** | **Total** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| With allowance for credit losses | $243 | $— | $— | $— | $25 | $— | $268 |
| No allowance for credit losses | 81 |  |  |  | 6 |  | 87 |
| **Total**  | $324 | $— | $— | $— | $31 | $— | $355 |
| Subject to a participant mortgage loan agreement for which the reporting entity is restricted from<br>unilaterally foreclosing on the mortgage loan | $— | $— | $— | $— | $— | $— | $— |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The following tables set forth the investment in impaired loans - average recorded investment, interest income recognized, recorded investment on interest income recognized using a cash-basis method of accounting as of the dates indicated:

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Agricultural** | **Residential** | **Residential** | **Commercial** | **Commercial** | **Mezzanine** | **Total** |
| | **Agricultural** | **Insured** | **All Other** | **Insured** | **All Other** | **Mezzanine** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Average Recorded Investment | $438 | $— | $— | $— | $13 | $— | $451 |
| Interest Income Recognized | 11 |  |  |  |  |  | 11 |
| Recorded Investments on Nonaccrual Status | 487 |  |  |  | 10 |  | 497 |
| Amount of Interest Income Recognized Using a Cash-Basis Method of Accounting | 13 |  |  |  | 1 |  | 14 |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Agricultural** | **Residential** | **Residential** | **Commercial** | **Commercial** | **Mezzanine** | **Total** |
|  | **Agricultural** | **Insured** | **All Other** | **Insured** | **All Other** | **Mezzanine** | **Total** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Average Recorded Investment | $— | $— | $— | $— | $— | $— | $— |
| Interest Income Recognized | 2 |  |  |  |  |  | 2 |
| Recorded Investments on Nonaccrual Status | 325 |  |  |  | 17 |  | 342 |
| Amount of Interest Income Recognized Using a Cash-Basis Method of Accounting | 7 |  |  |  |  |  | 7 |

---

The following table sets forth allowances for credit losses as of the dates indicated:

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| | **(in millions)** | **(in millions)** |
| Balance at beginning of period | $61 | $62 |
| Additions charged to operations | 44 | 61 |
| Direct write-downs charged against the allowance | (90) | (62) |
| **Balance at end of period**  | $15 | $61 |

---

The Company had $0 million and $6 million of mortgage loans derecognized as a result of foreclosure for the years ended December 31, 2025 and 2024, respectively.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Restructured Mortgage Loans**

<br>The following table sets forth the restructured mortgage loans as of the dates indicated:

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| | **(in millions)** | **(in millions)** |
| Total recorded investment in restructuring loans | $60 | $70 |
| Total related realized capital (losses) |  | (58) |
| Total contractual commitments to extend credit to debtors owning receivables whose terms have been modified in trouble debt restructurings |  |  |

---

The Company accrues interest income on impaired loans to the extent it is deemed collectible (delinquent less than ninety days) and the loan continues to perform under its original or restructured contractual terms. Interest income on non-performing loans is generally recognized on a cash basis.

**Reverse Mortgages**

As of both December 31, 2025 and 2024, the Company did not have reverse mortgages.

**5C. &nbsp;&nbsp;&nbsp;&nbsp;Asset-Backed Securities** 

The Company has not elected to use the book value as of January 1, 1994 as the cost for applying the retrospective adjustment method to securities purchased prior to that date. Prepayment assumptions for loan-backed and structured securities were obtained from broker dealer survey values or internal estimates.

As of December 31, 2025, the Company had no asset-backed securities, within the scope of SSAP No. 43, with a recognized other-than-temporary impairment, classified on the basis of either a) intent to sell or b) inability or lack of intent to retain the investment in the security for a period of time sufficient to recover the amortized cost basis.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The following table sets forth the amounts recorded in compliance with SSAP No. 43 as of the date indicated:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **CUSIP** | **Book/Adj Carrying Value Amortized Cost Before Current Period OTTI** | **Present Value of Projected Cash Flows** | **Recognized Other-than-Temporary Impairment** | **Amortized Cost After Other-than-Temporary Impairment** | **Fair Value at time of OTTI** | **Date of Financial Statement where Reported** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | |
| 17029PAA3 | $5 | $4 | $1 | $4 | $4 | 1Q25 |
| 78442GKW5 | 50 | 49 | 1 | 49 | 49 | 1Q25 |
| 84751PLP2 | 1 | 1 |  | 1 | 1 | 1Q25 |
| 84751PLP2 | 1 | 1 |  | 1 |  | 2Q25 |
| 22523JAD2 | 3 | 2 | 1 | 2 | 2 | 3Q25 |
| 22523JAE0 | 5 | 2 | 3 | 2 | 2 | 3Q25 |
| 83407NAE4 | 2 | 2 |  | 2 | 2 | 3Q25 |
| 84751PLP2 | 1 | 1 |  | 1 |  | 3Q25 |
| 22523JAD2 | 2 | 2 |  | 2 | 2 | 4Q25 |
| 22523JAE0 | 2 | 1 | 1 | 1 | 1 | 4Q25 |
| 32027NEE7 | 1 | 1 |  | 1 | 1 | 4Q25 |
| **&nbsp;&nbsp;&nbsp;&nbsp;Total** | $73 | $66 | $7 | $66 | $64 |  |

---

As of December 31, 2025, the following table represents all impaired securities for which an other-than-temporary-impairment has not been recognized in earnings as a realized loss, segregated by those securities that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve months or longer as of the dates indicated:

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| | **(in millions)** | **(in millions)** |
| Aggregate amount of unrealized losses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Less than 12 Months | $(7) | $(50) |
| &nbsp;&nbsp;&nbsp;&nbsp;12 Months or Longer | $(1080) | $(1215) |
| Aggregate related fair value of securities with unrealized losses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Less than 12 Months | $1158 | $1516 |
| &nbsp;&nbsp;&nbsp;&nbsp;12 Months or Longer | $5310 | $5803 |

---

&nbsp;&nbsp;&nbsp;&nbsp;Other-than-temporary impairment decisions are based upon a detailed analysis of a security's underlying credit and cash flows.

**5D. &nbsp;&nbsp;&nbsp;&nbsp;Repurchase Agreements, Reverse Repurchase Agreements and Securities Lending**

The Company conducts asset-based or secured financing within our insurance and other subsidiaries, including transactions such as securities lending, repurchase agreements and mortgage dollar rolls, in order to earn spread income, to borrow funds, or to facilitate trading activity. The collateral received in connection with these programs is primarily used to purchase securities in the short-term spread portfolios. Investments held in the short-term spread portfolios include cash and cash equivalents, short-term investments, and bonds, including mortgage- and asset-backed securities.

These programs are typically limited to securities in demand that can be loaned at relatively low financing rates. As such, the Company believes there is unused capacity available through these programs. Holdings of cash and cash equivalent investments in these short-term spread portfolios allow for further flexibility in sizing the portfolio to better match available financing. Current conditions in both the financing and investment markets are continuously monitored to appropriately manage the cost of funds, investment spreads, asset/liability duration matching and liquidity.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Securities Lending** 

Securities Lending is a program whereby the Company loans securities to third parties, primarily major brokerage firms. The Company and NAIC policies require a minimum of 100% and 102% of the fair value of the domestic and foreign loaned securities, respectively, to be separately maintained as collateral for the loans.

In the General Account, fair value of cash collateral received of $4,606 million and $4,890 million were invested in "Bonds" and "Cash and short-term investments" as of December 31, 2025 and 2024, respectively. This collateral is not restricted. The fair value of the securities on loan was $4,441 million and $4,702 million as of December 31, 2025 and 2024, respectively. A liability to return collateral received of $4,606 million and $4,890 million is included in "Cash collateral held for loaned securities" as of December 31, 2025 and 2024, respectively. There was no non-cash collateral not reflected in the Assets or Liabilities, Surplus and Other Funds. There was no collateral that extends beyond one year.

In the Separate Accounts, cash collateral received of $3,575 million and $3,288 million were invested in "Cash and short-term investments" as of December 31, 2025 and 2024, respectively. This collateral is not restricted. The fair value of the securities on loan was $3,448 million and $3,169 million as of December 31, 2025 and 2024, respectively. A liability to return collateral received of $3,575 million and $3,288 million is included in "Cash collateral held for loaned securities" as of December 31, 2025 and 2024, respectively. Additionally, assets and a cash collateral liability of $0 million were received for unaffiliated lending as of both December 31, 2025 and 2024.

Securities Lending policies and procedures for the Separate Accounts are generally consistent with the General Account policies and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;<u>Collateral Received</u>

For securities lending transactions, Company and NAIC policies require that 100% and 102% of the fair value of domestic and foreign securities, respectively, be maintained as collateral. The Company only accepts cash collateral; it does not accept collateral that can be sold or repledged.

&nbsp;&nbsp;&nbsp;&nbsp;The following tables sets forth "Cash collateral held for loaned securities" as of the dates indicated:

---

| | | |
|:---|:---|:---|
| | **Fair Value** | **Fair Value** |
| | **December 31, 2025** | **December 31, 2024** |
| | **(in millions)** | **(in millions)** |
| Securities Lending: |  |  |
| Open | $4605 | $4822 |
| 30 Days or Less | 1 | 68 |
| 31 to 60 Days |  |  |
| 61 to 90 Days |  |  |
| Greater Than 90 Days |  |  |
| **Subtotal**  | $4606 | $4890 |
| Securities Received |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Collateral Received**  | $4606 | $4890 |

---

The aggregate fair value of all securities acquired from the use of the reinvested collateral was $4,553 million and $4,720 million including the investment in NAIC Exempt Federal National Mortgage Association (FNMA) pass-through securities as of December 31, 2025 and 2024, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;In some instances, cash received as collateral is invested in cash equivalents, short-term, and long-term bonds.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

<u>Collateral Reinvestment</u>

The following table sets forth the reinvestment of the cash collateral and any securities which the Company or its agent receives for securities lending as of the dates indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| | &nbsp;&nbsp;**Amortized Cost** | &nbsp;&nbsp;**Fair Value** | &nbsp;&nbsp;**Amortized Cost** | &nbsp;&nbsp;**Fair Value** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Securities Lending: |  |  |  |  |
| Open | $— | $— | $— | $— |
| 30 Days or Less | 575 | 575 | 979 | 974 |
| 31 to 60 Days | 89 | 89 | 147 | 147 |
| 61 to 90 Days | 87 | 87 | 183 | 183 |
| 91 to 120 Days | 102 | 102 | 73 | 73 |
| 121 to 180 Days | 139 | 139 | 237 | 237 |
| 181 to 365 Days | 645 | 647 | 1008 | 1008 |
| 1 to 2 years | 1304 | 1311 | 969 | 970 |
| 2 to 3 years | 1261 | 1266 | 892 | 893 |
| Greater than 3 years | 337 | 337 | 237 | 235 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Subtotal**  | $4539 | $4553 | $4725 | $4720 |
| Securities Received |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Collateral Reinvested**  | $4539 | $4553 | $4725 | $4720 |

---

The Company did not accept collateral that can be sold or repledged, it only accepts cash collateral.

As of both December 31, 2025 and 2024, the Company had no securities lending transactions that extend beyond one year from the reporting date.

**&nbsp;&nbsp;&nbsp;&nbsp;Repurchase Agreements Transactions Accounted for as Secured Borrowing**

For repurchase agreements, Company and NAIC policies require a minimum of 95% of the fair value of securities under these agreements to be maintained as collateral. Please refer to Note 1D for the Company's policy for recognizing repurchase agreements. At December 31, 2025, the Company has sufficient assets to cover its secured borrowing liability.

The following table sets forth the repurchase agreements that were bilateral and tri-party trades as of the dates indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| | **Maximum Amount** | **Ending Balance** | **Maximum Amount** | **Ending Balance** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Open - No Maturity | $5127 | $5019 | $4060 | $3785 |
| Overnight | 220 |  | 176 |  |
| 2 Days to 1 Week | 273 | 166 | 274 |  |
| >1 Week to 1 Month | 458 | 379 | 347 | 347 |
| >1 Month to 3 Months | 166 |  | 75 |  |
| >3 Months to 1 Year |  |  |  |  |
| Greater than 1 Year |  |  |  |  |

---

The following table sets forth the BACV of securities sold under repurchase agreements as of the dates indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| | **Maximum Amount** | **Ending Balance** | **Maximum Amount** | **Ending Balance** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| BACV | $— | $6158 | $— | $4752 |
| Fair Value | 5777 | 5644 | 4487 | 4195 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

As of December 31, 2025, the securities acquired were bonds with a designation of NAIC 1 with a BACV of $6,115 million and a fair value of $5,612 million and securities with a designation of NAIC 2 with a BACV of $43 million and a fair value of $32 million.

As of December 31, 2024, the securities acquired were bonds with a designation of NAIC 1 with a BACV of $4,712 million and a fair value of $4,166 million and securities with a designation of NAIC 2 with a BACV of $40 million and a fair value of $29 million.

The following table sets forth the collateral received as of the dates indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| | **Maximum Amount** | **Ending Balance** | **Maximum Amount** | **Ending Balance** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Cash | $5707 | $5565 | $4407 | $4133 |
| Securities (FV) |  |  |  |  |

---

The following table sets forth the allocation of aggregate collateral by remaining contractual maturity as of the dates indicated:

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| | **Fair Value** | **Fair Value** |
| | **(in millions)** | **(in millions)** |
| Overnight and Continuous | $4227 | $3787 |
| 30 Days or Less | 1338 | 346 |
| 31 to 90 Days |  |  |
| Greater than 90 Days |  |  |

---

The following table sets forth the allocation of aggregate collateral reinvested as of the dates indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| | **Carrying Value** | **Fair Value** | **Carrying Value** | **Fair Value** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| 30 Days or Less | $627 | $627 | $758 | $754 |
| 31 to 60 Days | 97 | 97 | 114 | 114 |
| 61 to 90 Days | 95 | 95 | 142 | 142 |
| 91 to 120 Days | 111 | 111 | 56 | 56 |
| 121 to 180 Days | 152 | 152 | 184 | 184 |
| 181 to 365 Days | 703 | 705 | 781 | 781 |
| 1 to 2 Years | 1422 | 1429 | 750 | 751 |
| 2 to 3 Years | 1374 | 1380 | 690 | 692 |
| Greater than 3 Years | 367 | 367 | 183 | 182 |

---

The following table sets forth the fair value of the security collateral pledged, and the total liability recognized to return cash collateral as of the dates indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| | **Maximum Amount** | **Ending Balance** | **Maximum Amount** | **Ending Balance** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Cash Collateral | $5707 | $5565 | $4407 | $4133 |
| Securities Collateral (FV) |  |  |  |  |

---

**Reverse Repurchase Agreements Transactions Accounted for as Secured Borrowing**

For reverse repurchase agreements Company and NAIC policies require a minimum of 100% of the fair value of securities under these agreements to be maintained as collateral. The securities underlying reverse repurchase agreements are U.S. Treasury bonds or agencies. Please refer to Note 1D for the Company's policy for recognizing reverse repurchase agreements.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

As of both December 31, 2025 and 2024, the Company did not have any reverse repurchase agreements transactions accounted for as secured borrowing.

**5E. Real Estate** 

For both the years ended December 31, 2025 and 2024, the Company recorded $0 million and $5 million of net losses on the sale of real estate, respectively. There were $12 million and $3 million of impairment losses recognized on real estate for the years ended December 31, 2025 and 2024, respectively.

The Company classified $194 million and $192 million as real estate occupied by the Company as of December 31, 2025 and 2024, respectively.

The Company classified $60 million (less $33 million of encumbrances) and $77 million (less $33 million of encumbrances) as real estate held for the production of income as of December 31, 2025 and 2024, respectively.

As of both December 31, 2025 and 2024, the Company did not classify any real estate as held for sale.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**5F. &nbsp;&nbsp;&nbsp;&nbsp;Other Invested Assets**

&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the composition of the Company's other invested assets as of the dates indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| | &nbsp;&nbsp;**Carrying Value** | &nbsp;&nbsp;**% of Total** | &nbsp;&nbsp;**Carrying Value** | &nbsp;&nbsp;**% of Total** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Joint venture and limited partnerships interests in real estate | $386 | 3.9% | $558 | 5.4% |
| Joint venture and limited partnerships interests in common stock | 8437 | 84.7 | 8580 | 83.1 |
| Joint venture and limited partnerships interests in fixed income | 272 | 2.7 | 183 | 1.8 |
| Joint venture and limited partnerships interests - other | 374 | 3.8 | 451 | 4.4 |
| **Subtotal - Joint venture and limited partnerships**  | $9469 | 95.1% | $9772 | 94.7% |
| Receivables for Securities  | 238 | 2.4 | 105 | 1.0 |
| Cash collateral for variation margin | 255 | 2.5 | 445 | 4.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Other invested assets**  | $9962 | 100.0% | $10322 | 100.0% |

---

**5G. &nbsp;&nbsp;&nbsp;&nbsp;Other Investment Disclosures**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investments in Tax Credit Structures (tax credit investments)**

The Company invests in tax credit structures, including low income housing tax credit investments and other tax programs, primarily to generate tax credits and other tax benefits and reduce the Company's tax liability. These tax credit investments are reported within other invested assets on the balance sheet and are amortized in the statement of operations as an expense component within net investment income.

The Company recognized $13 million of tax credits and other tax benefits and $10 million and $7 million of low-income housing tax credits ("LIHTC") and other tax benefits for the years ended December 31, 2025, 2024, and 2023 respectively.

The Company had $224 million of tax credit investments and $179 million of LIHTC property investments as of December 31, 2025 and 2024, respectively.

The Company had no investment amortization and non-income tax related activity recognized as a component of net investment income, and other returns allocated that were recognized outside of income tax expense for the year ended December 31, 2025.

The following table sets forth the aggregate schedule of tax credits expected to be generated each year for the subsequent five years and thereafter, disaggregated by transferable/certificated and non-transferable as of the date indicated:

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Year of Generation** | **Transferable/Certificated** | **Non-transferable** | **Total** |
|  | (in millions) | (in millions) | (in millions) |
| 2026 | $— | $32 | $32 |
| 2027 |  | 32 | 32 |
| 2028 |  | 31 | 31 |
| 2029 |  | 30 | 30 |
| 2030 |  | 27 | 27 |
| Thereafter |  | 126 | 126 |
| **Total** | $— | $278 | $278 |

---

None of the tax credit investments have any commitments or contingent commitments anticipated to be paid as of December 31, 2025.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

As of December 31, 2025, none of the tax credit investments are currently subject to any regulatory reviews and there were no significant modifications or events that resulted in a change in the nature of the investment or a change in the relationship with the underlying project for the investments in scope.

There were no impaired tax credit investments for the years ended December 31, 2025 and 2024.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Restricted Assets** 

The following table sets forth restricted assets (including pledged) as of the date indicated:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Gross (Admitted and Nonadmitted) Restricted** | **Gross (Admitted and Nonadmitted) Restricted** | **Gross (Admitted and Nonadmitted) Restricted** | **Gross (Admitted and Nonadmitted) Restricted** | **Gross (Admitted and Nonadmitted) Restricted** | **Gross (Admitted and Nonadmitted) Restricted** | **Gross (Admitted and Nonadmitted) Restricted** | **Percentage** | **Percentage** |
| **Restricted Asset Category** | **Total General Account (G/A)** | **G/A Supporting S/A Activity** | **Total Separate Account (S/A) Restricted Assets** | **S/A Assets Supporting G/A Activity** | **Total** | **Total Nonadmitted Restricted** | **Total Admitted Restricted** | **Gross (Admitted & Nonadmitted) Restricted to Total Assets** | **Admitted Restricted to Total Admitted Assets** |
| **Restricted Asset Category** | **Total General Account (G/A)** | **G/A Supporting S/A Activity** | **Total Separate Account (S/A) Restricted Assets** | **S/A Assets Supporting G/A Activity** | **Total** | **Total Nonadmitted Restricted** | **Total Admitted Restricted** | **Gross (Admitted & Nonadmitted) Restricted to Total Assets** | **Admitted Restricted to Total Admitted Assets** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Collateral held under security lending agreements | $4829 | $— | $3844 | $— | $8673 | $— | $8673 | 2.6% | 2.7% |
| Subject to repurchase agreements | 6158 |  | 1261 |  | 7419 |  | 7419 | 2.2% | 2.3% |
| Letter stock or securities restricted as to sale - excluding FHLB capital stock | 540 |  |  |  | 540 |  | 540 | 0.2% | 0.2% |
| FHLB capital stock | 140 |  |  |  | 140 |  | 140 | 0.1% | 0.1% |
| On deposit with state | 6 |  |  |  | 6 |  | 6 | 0.0% | 0.0% |
| Pledged as collateral to FHLB (including assets backing funding agreements) | 2776 |  |  |  | 2776 |  | 2776 | 0.8% | 0.8% |
| Pledged as collateral not captured in other categories | 22403 |  | 982 |  | 23385 |  | 23385 | 7.1% | 7.2% |
| Collateral assets received<br>and on Balance Sheet |  |  |  |  |  |  |  | 0.0% | 0.0% |
| Assets held under Modco<br>Reinsurance Agreements | 4522 |  | 28928 |  | 33450 |  | 33450 | 10.1% | 10.2% |
| Assets held under Funds<br>Withheld Reinsurance<br>Agreements | 8825 |  |  |  | 8825 |  | 8825 | 2.6% | 2.7% |
| **Total restricted assets** | $50199 | $— | $35015 | $— | $85214 | $— | $85214 | 25.7% | 26.2% |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The following table sets forth the detail of assets pledged as collateral not captured in other categories as of the date indicated:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Gross (Admitted & Nonadmitted) Restricted** | **Gross (Admitted & Nonadmitted) Restricted** | **Gross (Admitted & Nonadmitted) Restricted** | **Gross (Admitted & Nonadmitted) Restricted** | **Gross (Admitted & Nonadmitted) Restricted** | **Gross (Admitted & Nonadmitted) Restricted** | **Gross (Admitted & Nonadmitted) Restricted** | **Percentage** | **Percentage** |
|<br>**Description of Assets:** | **Total General Account (G/A)** | **G/A Supporting S/A Activity** | **Total Separate Account (S/A) Restricted Assets** | **S/A Assets Supporting G/A Activity** | **Total** | **Total Nonadmitted Restricted** | **Total Admitted Restricted** | **Gross (Admitted & Nonadmitted) Restricted to Total Assets** | **Admitted Restricted to Total Admitted Assets** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Reinsurance trust assets | $15980 | $— | $— | $— | $15980 | $— | $15980 | 4.8% | 4.9% |
| Derivatives collateral | 4520 |  | 982 |  | 5502 |  | 5502 | 1.7% | 1.7% |
| Guaranteed cost trust | 365 |  |  |  | 365 |  | 365 | 0.1% | 0.1% |
| Funded reinsurance collateral | 1538 |  |  |  | 1538 |  | 1538 | 0.5% | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $22403 | $— | $982 | $— | $23385 | $— | $23385 | 7.1% | 7.2% |
| Total pledged under derivative contracts | 4520 |  | 982 |  | 5502 |  | 5502 | 1.7% | 1.7% |
| **Total excluding derivative collateral** | $17883 | $— | $— | $— | $17883 | $— | $17883 | 5.4% | 5.5% |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The following tables set forth the collateral received and assets held under Modco/Funds Withheld (FWH) reinsurance agreements reflected as assets within the Company's financial statements as of the date indicated:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **BACV<br>Collateral** | **BACV<br>Modco** | **BACV<br>FWH** | **Fair Value<br>Collateral** | **Fair Value<br>Modco** | **Fair Value<br>FWH** | **% of BACV to Total Assets (Admitted and Nonadmitted)** | **% of BACV to Total Admitted Assets** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| **Assets** | | | | | | | | |
| **General Account:** | | | | | | | | |
| Cash, Cash Equivalents, and Short-Term Investments | $— | $173 | $171 | $— | $173 | $171 | 0.2% | 0.2% |
| Bonds |  | 3076 | 7135 |  | 2889 | 6724 | 6.2% | 6.5% |
| Mortgage loans | 3428 | 1263 | 264 | 3201 | 1189 | 264 | 3.0% | 3.1% |
| Common stocks |  |  | 71 |  |  | 71 | 0.1% | 0.1% |
| Other invested assets | 1 | 10 | 1157 | 1 | 10 | 1157 | 0.7% | 0.7% |
| Securities lending reinvested collateral assets | 9486 |  |  | 9515 |  |  | 5.8% | 6.0% |
| Other | 458 |  | 27 | 458 |  | 27 | 0.3% | 0.3% |
| **Total General Account**  | $13373 | $4522 | $8825 | $13175 | $4261 | $8414 | 16.3% | 16.9% |
| **Separate Account:** |  |  |  |  |  |  |  |  |
| Cash, Cash Equivalents, and Short-Term Investments | $264 | $1813 | $— | $264 | $1813 | $— | 1.2% | 1.2% |
| Bonds | 21 | 8496 |  | 21 | 8496 |  | 5.1% | 5.1% |
| Common stocks |  | 17289 |  |  | 17289 |  | 10.3% | 10.3% |
| Other invested assets |  | 1319 |  |  | 1319 |  | 0.8% | 0.8% |
| Securities lending reinvested collateral assets | 4418 |  |  | 4431 |  |  | 2.6% | 2.6% |
| Other | 253 | 11 |  | 253 | 11 |  | 0.2% | 0.2% |
| **Total Separate Account**  | $4956 | $28928 | $— | $4969 | $28928 | $— | 20.2% | 20.2% |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Related Party Relationship** | **Related Party Relationship** | **Related Party Relationship** | **Related Party Relationship** | **Related Party Relationship** | **Related Party Relationship** | **Related Party Relationship** |
| | **Book/<br>Adjusted<br>Carrying<br>Value<br>(BACV) FWH<br>Including<br>Modco** | **Direct investment (excluding securitizations) in the reinsurer** | **Investments with reinsurer(1)** | **Investments with reinsurer(2)** | **Investments reflect in-substance related party transaction (3)** | **Investments related to reinsurer, but reinsurer represents a different arrangement than the options provided** | **Investment is not related / affiliated to the reinsurer** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| **Assets** | | | | | | | |
| **General Account:** | | | | | | | |
| Cash, Cash Equivalents, and Short-Term Investments | $344 | $— | $— | $— | $— | $— | $344 |
| Bonds | 10211 | 81 |  |  |  | 12 | 10118 |
| Mortgage loans | 1527 |  |  |  |  |  | 1527 |
| Common stocks | 71 |  |  | 71 |  |  |  |
| Other invested assets | 1167 |  | 506 | 110 |  |  | 551 |
| Other | 27 |  |  |  |  | (4) | 31 |
| **Total General Account**  | $13347 | $81 | $506 | $181 | $— | $8 | $12571 |
| **Percentage to Total FWH Assets (including Modco)** | 100% | 1% | 4% | 1% | —% | —% | 94% |
| **Separate Account:** |  |  |  |  |  |  |  |
| Cash, Cash Equivalents, and Short-Term Investments | $1813 | $— | $— | $— | $— | $— | $1813 |
| Bonds | 8496 |  |  |  |  |  | 8496 |
| Common stocks | 17289 |  |  |  |  |  | 17289 |
| Other invested assets | 1319 |  |  | 1319 |  |  |  |
| Other | 11 |  |  |  |  |  | 11 |
| **Total Separate Account**  | $28928 | $— | $— | $1319 | $— | $— | $27609 |
| **Percentage to Total FWH Assets (including Modco)** | 100% | —% | —% | 5% | —% | —% | 95% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Securitization or similar investment vehicles with reinsurer (influential role & 50% or more of collateral represents investments in or direct credit exposure to reinsurer).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Securitization or similar investment vehicles with reinsurer (influential role & less than 50% of collateral represents investments in or direct credit exposure to reinsurer).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Securitization or similar investment vehicles where the structure reflects an in-substance related party transaction to the reinsurer.

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** |
| | **Amount** | **% of Liability to Total Liabilities** |
| | **($ in millions)** | **($ in millions)** |
| Recognized Obligation to Return Collateral Asset (General Account) | $10171 | 7.1% |
| Recognized Obligation to Return Collateral Asset (Separate Account) | $4738 | 2.8% |
| Recognized Obligation for Modco assets (General Account) | $— | 0.0% |
| Recognized Obligation for Modco assets (Separate Account) | $— | 0.0% |
| Recognized Obligation for FWH (excluding Modco) assets (General Account) | $— | 0.0% |
| Recognized Obligation for FWH (excluding Modco) assets (Separate Account) | $— | 0.0% |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The following table sets forth restricted assets (including pledged) as of the date indicated:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Gross (Admitted and Nonadmitted) Restricted** | **Gross (Admitted and Nonadmitted) Restricted** | **Gross (Admitted and Nonadmitted) Restricted** | **Gross (Admitted and Nonadmitted) Restricted** | **Gross (Admitted and Nonadmitted) Restricted** | **Gross (Admitted and Nonadmitted) Restricted** | **Gross (Admitted and Nonadmitted) Restricted** | **Percentage** | **Percentage** |
| **Restricted Asset Category** | **Total General Account (G/A)** | **G/A Supporting S/A Activity** | **Total Separate Account (S/A) Restricted Assets** | **S/A Assets Supporting G/A Activity** | **Total** | **Total Nonadmitted Restricted** | **Total Admitted Restricted** | **Gross (Admitted & Nonadmitted) Restricted to Total Assets** | **Admitted Restricted to Total Admitted Assets** |
| **Restricted Asset Category** | **Total General Account (G/A)** | **G/A Supporting S/A Activity** | **Total Separate Account (S/A) Restricted Assets** | **S/A Assets Supporting G/A Activity** | **Total** | **Total Nonadmitted Restricted** | **Total Admitted Restricted** | **Gross (Admitted & Nonadmitted) Restricted to Total Assets** | **Admitted Restricted to Total Admitted Assets** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Collateral held under security lending agreements | $5353 | $— | $3563 | $— | $8916 | $— | $8916 | 2.8% | 2.8% |
| Subject to repurchase agreements | 4752 |  | 701 |  | 5453 |  | 5453 | 1.7% | 1.7% |
| Letter stock or securities restricted as to sale - excluding FHLB capital stock | 530 |  |  |  | 530 |  | 530 | 0.2% | 0.2% |
| FHLB capital stock | 143 |  |  |  | 143 |  | 143 | 0.0% | 0.0% |
| On deposit with state | 6 |  |  |  | 6 |  | 6 | 0.0% | 0.0% |
| Pledged as collateral to FHLB (including assets backing funding agreements) | 2878 |  |  |  | 2878 |  | 2878 | 0.9% | 1.0% |
| Pledged as collateral not captured in other categories | 20685 |  | 326 |  | 21011 |  | 21011 | 6.5% | 6.6% |
| **Total restricted assets** | $34347 | $— | $4590 | $— | $38937 | $— | $38937 | 12.1% | 12.3% |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The following table sets forth the detail of assets pledged as collateral not captured in other categories as of the date indicated:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Gross (Admitted & Nonadmitted) Restricted** | **Gross (Admitted & Nonadmitted) Restricted** | **Gross (Admitted & Nonadmitted) Restricted** | **Gross (Admitted & Nonadmitted) Restricted** | **Gross (Admitted & Nonadmitted) Restricted** | **Gross (Admitted & Nonadmitted) Restricted** | **Gross (Admitted & Nonadmitted) Restricted** | **Percentage** | **Percentage** |
|<br>**Description of Assets:** | **Total General Account (G/A)** | **G/A Supporting S/A Activity** | **Total Separate Account (S/A) Restricted Assets** | **S/A Assets Supporting G/A Activity** | **Total** | **Total Nonadmitted Restricted** | **Total Admitted Restricted** | **Gross (Admitted & Nonadmitted) Restricted to Total Assets** | **Admitted Restricted to Total Admitted Assets** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Derivatives Collateral | $16206 | $— | $— | $— | $16206 | $— | $16206 | 5.0% | 5.1% |
| Funded Reinsurance Pledged Collateral | 2547 |  | 326 |  | 2873 |  | 2873 | 0.9% | 0.9% |
| Guaranteed Cost Trust | 377 |  |  |  | 377 |  | 377 | 0.1% | 0.1% |
| Reinsurance Trust Assets | 1555 |  |  |  | 1555 |  | 1555 | 0.5% | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $20685 | $— | $326 | $— | $21011 | $— | $21011 | 6.5% | 6.6% |

---

The following tables set forth the collateral received and reflected as assets within the Company's financial statements as of the date indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **BACV** | **Fair Value** | **% of BACV to Total Assets (Admitted and Nonadmitted)** | **% of BACV to Total Admitted Assets** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| **Collateral Assets:** | | | | |
| **General Account:** | | | | |
| Bonds | $— | $226 | 0.0% | 0.0% |
| Mortgage loans | 3609 | 3257 | 2.3% | 2.4% |
| Other invested assets | 11 | 11 | 0.0% | 0.0% |
| Securities lending reinvested collateral assets | 8384 | 8376 | 5.4% | 5.6% |
| Other |  | 697 | 0.0% | 0.0% |
| **Total General Account**  | $12004 | $12567 | 7.7% | 8.0% |
| **Separate Account:** |  |  |  |  |
| Cash, Cash Equivalents, and Short-Term Investments | $398 | $398 | 0.2% | 0.2% |
| Bonds | 58 | 869 | 0.1% | 0.1% |
| Securities lending reinvested collateral assets | 3521 | 3517 | 2.1% | 2.1% |
| Other |  | 243 | 0.0% | 0.0% |
| **Total Separate Account**  | $3977 | $5027 | 2.4% | 2.4% |

---

---

| | | |
|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** |
| | **Amount** | **% of Liability to Total Liabilities** |
| | **($ in millions)** | **($ in millions)** |
| Recognized Obligation to Return Collateral Asset (General Account) | $9023 | 6.7% |
| Recognized Obligation to Return Collateral Asset (Separate Account) | $3934 | 2.4% |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Net Investment Income**

Interest overdue is accrued up to a maximum of ninety days. If accrued interest is more than ninety days overdue, it is reversed and recognized as income when received.

Income is not accrued on bonds in or near default and is excluded from "Net investment income." Bond income not accrued was $66 million, $53 million and $54 million for the years ended December 31, 2025, 2024 and 2023, respectively.

The Company had $42 million, $0 million and $0 million interest on mortgage loans over ninety days due for the years ended December 31, 2025, 2024 and 2023, respectively.

Real estate rent that is in arrears for more than three months or the collection of rent that is uncertain is nonadmitted and excluded from "Net investment income." For the years ended December 31, 2025, 2024 and 2023, there was no nonadmitted due and accrued rental income on real estate.

For the years ended December 31, 2025, 2024 and 2023, other invested assets had no nonadmitted due and accrued income.

The following table sets forth accrued investment income as of December 31:

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| | **(in millions)** | **(in millions)** |
| Net Admitted | $985 | $976 |
| Nonadmitted | 1 | 1 |
| **Gross accrued investment income**  | $986 | $977 |

---

For both years ended December 31, 2025, and 2024, the Company did not have aggregate deferred interest.

The Company had $9 million, $7 million and $12 million cumulative amounts of paid-in-kind ("PIK") interest included in the current principal balance for the years ended December 31, 2025, 2024 and 2023, respectively.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The following table sets forth "Net investment income" for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** |
| Bonds(1) | $4109 | $4020 | $3888 |
| Stocks | 253 | 237 | 223 |
| Mortgage loans | 836 | 829 | 784 |
| Contract loans | 91 | 94 | 93 |
| Cash, cash equivalents, and short-term investments(1) | 217 | 168 | 219 |
| Other investments(2) | 1154 | 1101 | 1246 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total gross investment income**  | 6660 | 6449 | 6453 |
| Less investment expenses | (1003) | (1023) | (969) |
| Net investment income before amortization of IMR | 5657 | 5426 | 5484 |
| Amortization of IMR | (184) | (140) | (111) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net investment income**  | $5473 | $5286 | $5373 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) 2024 period has been updated to conform to current period presentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Other investments consist of real estate, other invested assets, and derivatives.

The following table sets forth "Net realized capital gains (losses)" for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** |
| Bonds | $(272) | $(836) | $(497) |
| Stocks | 98 | 55 | (5) |
| Mortgage loans | (129) | (82) | (26) |
| Derivative instruments | (135) | (336) | (594) |
| Other investments | 52 | (5) | (167) |
| **Total gross realized capital gains (losses)**  | (386) | (1204) | (1289) |
| Capital gains benefit (tax) | 147 | 255 | 181 |
| IMR transfers, net of tax | 342 | 772 | 762 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net realized capital gains (losses)**  | $103 | $(177) | $(346) |

---

**Sub-prime Mortgage Related Risk Exposure** 

While there is no market standard definition, the Company defines sub-prime mortgages as residential mortgages that are originated to weaker quality obligors as indicated by weaker credit scores, as well as mortgages with higher loan to value ratios, or limited documentation.

The Company did not have direct exposure through investments in subprime mortgage loans.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The Company's exposure to sub-prime mortgage loans is through other investments. The following table sets forth the composition of our asset-backed securities collateralized by sub-prime mortgages as of the dates indicated:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Actual Cost** | **BACV** | **Fair Value** | **Other-Than-Temporary Impairment Losses Recognized** | **Actual Cost** | **BACV** | **Fair Value** | **Other-Than-Temporary Impairment Losses Recognized** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Asset-backed securities | $416 | $416 | $469 | $5 | $390 | $390 | $437 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total**  | $416 | $416 | $469 | $5 | $390 | $390 | $437 | $— |

---

The residential mortgage-backed securities in the table above are rated by nationally recognized rating agencies. In making our investment decisions, the Company assigns internal ratings to our asset-backed securities based upon our dedicated asset-backed securities unit's independent evaluation of the underlying collateral and securitization structure.

The Company did not have underwriting exposure to sub-prime mortgage risk through Mortgage Guaranty or Financial Guaranty insurance coverage.

**Information about Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentrations of Credit Risk**

During the normal course of its business, the Company utilizes financial instruments with off-balance sheet credit risk such as commitments and financial guarantees. Commitments primarily include commitments to fund investments in private placement securities, limited partnerships and other investments, as well as commitments to originate mortgage loans. As of December 31, 2025 and 2024, these commitments were $5,049 million and $5,650 million, respectively.

The Company writes credit default swaps requiring payment of principal due in exchange for the referenced credits, depending on the nature or occurrence of specified credit events for the referenced entities. In the event of a specified credit event, the Company's maximum amount at risk, assuming the value of the referenced credits become worthless, is $4,272 million and $2,713 million at December 31, 2025 and 2024, respectively. The credit default swaps generally have maturities of five years or less.

In the course of the Company's business, it provides certain financial guarantees and indemnities to third parties pursuant to which it may be contingently required to make payments now or in the future. As of December 31, 2025 and 2024, financial guarantees issued by the Company were $71,697 million and $72,457 million, respectively, primarily comprised of certain contracts underwritten by the Retirement segment include guarantees related to financial assets owned by the guaranteed party. These contracts are accounted for as derivatives and carried at fair value. At December 31, 2025 and 2024, such contracts in force carried a total guaranteed value of $71,697 million and $72,457 million, respectively. These guarantees are supported by collateral that is not reflected on the Company's Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus. This collateral had a fair value of $69,598 million and $67,880 million at December 31, 2025 and 2024, respectively.

**Netting and Offsetting of Assets and Liabilities**

The Company did not have any applicable transactions that are offset and reported net in accordance with SSAP No. 64, "Offsetting and Netting of Assets and Liabilities."

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**5GI Securities**

The following table sets forth the 5GI securities as of the dates indicated:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Number of 5GI Securities** | **Aggregate BACV** | **Aggregate Fair Value** | **Number of 5GI Securities** | **Aggregate BACV** | **Aggregate Fair Value** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| **Investment:** | | | | | | |
| ICO - AC(1) | 30 | $181 | $183 | 29 | $204 | $199 |
| ABS - AC(1) | 10 |  |  | 16 | 66 | 66 |
| Preferred Stock - AC | 2 | 10 | 16 | 2 | 11 | 37 |
| Preferred Stock - FV | 4 | 37 | 37 | 3 | 91 | 91 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total**  | 46 | $228 | $236 | 50 | $372 | $393 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Prior period has been updated to conform to current period presentation.

**Prepayment Penalties**

The following table sets forth the prepayment penalty and acceleration fees for the years ended December 31:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
| | **General Account** | **Separate Account** | **General Account** | **Separate Account** | **General Account** | **Separate Account** |
| | **General Account** | **Separate Account** | **General Account** | **Separate Account** | **General Account** | **Separate Account** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| **Prepayment Penalty and Acceleration Fees:** |  |  |  |  |  |  |
| Number of CUSIPs | 68 | 78 | 121 | 223 | 31 | 32 |
| Aggregate Amount of investment income | $30 | $22 | $28 | $18 | $4 | $6 |

---

**Reporting Entity's Share of Cash Pool by Asset Type**

As of both the years ended December 31, 2025 and 2024, the Company did not have any cash pool assets within the scope of SSAP No. 2, "Cash, Cash Equivalents, Drafts, and Short-Term Investments" ("SSAP No. 2"), that required disclosure.

**Aggregate Collateral Loans by Qualifying Investment Collateral**

As of both the years ended December 31, 2025 and 2024, the Company did not have any collateral loans within the scope of SSAP No. 21, "Other Admitted Assets" ("SSAP No. 21").

**6.&nbsp;&nbsp;&nbsp;&nbsp;SUBSEQUENT EVENTS**

Type 1 – Recognized Subsequent Events:

Subsequent events have been considered through April 16, 2026, the date these audited financial statements were issued.

In February of 2026, the Company received approval from the Department to record a $300 million payable as of December 31, 2025, for a capital contribution to its subsidiary, Pruco Life. The capital contribution was received by Pruco Life prior to March 1, 2026.

Type 2 – Non-recognized Subsequent Events:

Subsequent events have been considered through April 16, 2026, the date these audited financial statements were issued.

On February 27, 2026, the Company executed a novation of policies in the amount of $1,659 million, that were previously reinsured to Empower Life and Annuity Company of New York ("ELAINY"). Policies were novated to Empower Annuity Insurance Company ("EAIC") reducing the Company's direct and ceded reserves to ELAINY by $1,659 million.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**7.&nbsp;&nbsp;&nbsp;&nbsp;REINSURANCE**

The Company participates in reinsurance in order to provide greater diversification of business, provide additional capacity for future growth, limit the maximum net loss potential arising from large risks, and manage capital, as well as certain risks associated with its products. The Company utilizes various types of reinsurance, including primarily yearly renewable term ("YRT"), coinsurance, coinsurance with funds withheld and modified coinsurance.

Total direct, assumed and ceded premiums for the years ended December 31, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** |
| Premiums: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Direct | $24779 | $45804 | $24453 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assumed | 13813 | 13203 | 12368 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ceded | 6994 | 9605 | 16327 |

---

The Company does not have reinsurance agreements under which the reinsurer may unilaterally cancel any reinsurance for reasons other than for nonpayment of premium or other similar credits as of December 31, 2025, 2024 and 2023.

The Company executed new reinsurance agreements with external counterparties and the reinsurance reserve credits as a result of these new reinsurance agreements for the years ended December 31, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** |
| Individual Life | $731 | $— | $— |
| Retirement |  |  | 9987 |
| International | 400 | 400 |  |

---

The Company has written off or reported in its operations the following amounts during the years ending December 31, 2025, 2024 and 2023 as a result of uncollectible or commutated reinsurance with respective companies:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Uncollectible Reinsurance** | **Uncollectible Reinsurance** | **Uncollectible Reinsurance** | **Commutation of Reinsurance** | **Commutation of Reinsurance** | **Commutation of Reinsurance** |
| | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Claims incurred | $11 | $12 | $12 | $— | $— | $— |
| Claims adjustment expenses incurred |  |  |  |  |  |  |
| Premiums earned |  |  |  |  |  |  |
| Other |  | (1) |  |  |  |  |
| Company: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Scottish Re (U.S.), Inc | 11 | 12 | 12 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;North Carolina Mutual & AZ Mont |  | (1) |  |  |  |  |

---

Most of the Company's ceded reinsurance is undertaken as indemnity reinsurance, which does not discharge the Company as the primary insurer. Ceded balances would represent a liability to 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 periodically reviews the financial condition of its reinsurers and amounts recoverable, recording an allowance when necessary for uncollectible reinsurance.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The amounts related to reinsurance agreements included in "Future policy benefits and claims" and "Premiums and annuity considerations" as of and for the years ended December 31, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Premiums** | **Premiums** | **Premiums** |
| | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Assumed from affiliated insurers | $38620 | $37448 | $36385 | $6243 | $6421 | $6679 |
| Assumed from unaffiliated insurers | 20692 | 20467 | 20257 | 7570 | 6782 | 5689 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total reinsurance assumed**  | $59312 | $57915 | $56642 | $13813 | $13203 | $12368 |
| Ceded to affiliated insurers | $61238 | $61240 | $61877 | $2465 | $2229 | $2261 |
| Ceded to unaffiliated insurers | 14988 | 18112 | 18420 | 4529 | 7376 | 14066 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total reinsurance ceded**  | $76226 | $79352 | $80297 | $6994 | $9605 | $16327 |

---

**Individual Life**

The Company has assumed from and ceded to affiliated and unaffiliated insurers as of and for the years ended December 31, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Premiums** | **Premiums** | **Premiums** |
| | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Assumed:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;PARCC | $1644 | $1690 | $1736 | $1292 | $1277 | $1269 |
| &nbsp;&nbsp;&nbsp;&nbsp;PARU | 850 | 849 | 1419 | 458 | 303 | 815 |
| &nbsp;&nbsp;&nbsp;&nbsp;PLAZ |  | 362 | 81 | 239 | 359 | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lotus Re | 1 | 42 | 42 | 25 | 34 | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;PLNJ | 29 | 70 | 51 | 56 | 72 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Affiliated total**  | 2524 | 3013 | 3329 | 2070 | 2045 | 2229 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unaffiliated | 16987 | 16846 | 16485 | 727 | 765 | 821 |
| **Unaffiliated total**  | 16987 | 16846 | 16485 | 727 | 765 | 821 |
| **Total**  | $19511 | $19859 | $19814 | $2797 | $2810 | $3050 |
| **Ceded:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;PLAZ | $14169 | $13160 | $12658 | $545 | $311 | $328 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lotus Re | 2245 | 2266 | 2293 | 205 | 216 | 227 |
| &nbsp;&nbsp;&nbsp;&nbsp;PURE |  |  | 7 |  | (8) | 7 |
| **Affiliated total**  | 16414 | 15426 | 14958 | 750 | 519 | 562 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unaffiliated total | 1285 | 2511 | 2619 | 1131 | 1421 | 1424 |
| **Unaffiliated total**  | 1285 | 2511 | 2619 | 1131 | 1421 | 1424 |
| **Total**  | $17699 | $17937 | $17577 | $1881 | $1940 | $1986 |

---

*GUL Agreements*

Effective January 1, 2024 and October 1, 2024, Prudential Insurance was involved in a broader transaction to cede certain guaranteed universal life ("GUL") policy risk (which was previously retained by Prudential Insurance and its affiliates) to third-party reinsurers. To facilitate these GUL transactions, certain agreements between Prudential Insurance and its affiliates (PLAZ, PLNJ, captives) were partially or fully recaptured. Also to facilitate these GUL transactions, Prudential Insurance entered into YRT reinsurance agreements with PLAZ and PLNJ to passthrough the amounts that were already reinsured by Prudential Insurance to third-party reinsurers. Such passthrough arrangements were impacted by an affiliate YRT restructure effective October 1, 2025 whereby the risk was aggregated into PLAZ (rather than PICA) for purposes of retroceding to third-party reinsurers.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

*PARCC*

The Company entered into a YRT agreement with a subsidiary, Prudential Arizona Reinsurance Captive Company ("PARCC" or the "captives"), to assume up to 100% of its mortality risk associated with certain term life insurance contracts which are not subject to principles-based reserving. The Company subsequently entered into yearly renewable agreements to cede up to 100% of the mortality risk assumed from PARCC to external reinsurers. Effective October 1, 2024, the term business reinsured by PARCC and retroceded to PICA expanded due to a merger of other term captive companies (PAR Term, Term Re, and DART). Effective October 1, 2025, as part of the affiliate YRT restructure noted above, such mortality risk was retroceded by the Company to PLAZ for purposes of retroceding to external reinsurers.

&nbsp;&nbsp;&nbsp;&nbsp;*PARU* 

Effective January 1, 2013, the Company also entered into an agreement with a subsidiary, Prudential Arizona Reinsurance Universal Company ("PARU" or the "captives"), to assume 95% of the face amount of mortality risk on the first $1 million and 100% of the mortality risk in excess of $1 million on the Hartford Guaranteed Universal Life ("GUL") business assumed from PLAZ. Under this agreement, PARU retains between 0% and 5% of the face amount with respect to the mortality risk assumed on these policies, subject to a $50,000 per policy maximum, and retrocedes all of the remaining mortality risk to the Company. For select GUL policies where Hartford reinsured a portion of the no-lapse risk with external reinsurers and where those reinsurance agreements have been novated from Hartford to the Company, PARU retrocedes that same percentage of no-lapse risk to the Company. Effective July 1, 2011, the Company entered into a YRT agreement with this same subsidiary for PARU to retrocede risk on PLAZ and PLNJ issued policies to the Company. In 2024, there were restructurings to this agreement and ultimately a full recapture (GUL Re and PURC). As a result of the recapture, there was a recapture settlement which appears as premium on Schedule S.

*PLAZ*

Effective December 1, 2004, the Company has entered into a YRT reinsurance agreement with PLAZ, a subsidiary of the Company, to reinsure up to 100% of mortality risk remaining on its policies after any coinsurance with other captives. Also, effective January 2, 2013, the Company entered into two agreements with PLAZ to retrocede the portion of the Hartford assumed business (From Individual Life Insurance ("ILI") and Talcott Life Insurance Company, formerly known as Hartford Life Insurance Company, entities) that is classified as GUL. As of January 1, 2022, most of the variable life insurance policies were recaptured resulting in a $460 million gain and then reinsured from PLAZ to Lotus Re as mentioned below. Effective January 1, 2024 and October 1, 2024, PLAZ entered into YRT reinsurance agreements with, and partially recaptured some business from, Prudential Insurance as described above in the "GUL Agreements" section. Effective October 1, 2025, as part of the affiliate YRT restructure noted above, various agreements between the Company and PLAZ were modified or created to aggregate the risk to PLAZ (rather than PICA) for purposes of PLAZ retroceding to third-party reinsurers.

&nbsp;&nbsp;&nbsp;&nbsp;*PLNJ*

Effective December 1, 2004, the Company has entered into a YRT reinsurance agreement with PLNJ, a subsidiary of the Company, to reinsure up to 100% of mortality risk remaining on its policies after any coinsurance with other captives. Effective July 1, 2017, this agreement was terminated for new business for most permanent products. Effective January 1, 2024, PLNJ entered into a YRT reinsurance agreement with, and partially recaptured some business from, Prudential Insurance as described above in the "GUL Agreements" section. Effective October 1, 2025, this agreement was novated such that PLAZ (rather than the Company) is the reinsurer, to facilitate PLAZ's retrocession to third-party reinsurers as part of a broader affiliate YRT restructure as noted above.

*Lotus Re*

Effective January 1, 2022, the Company entered into an agreement with Lotus Re, an affiliate reinsurance company, to reinsure variable life policies. The structure is coinsurance/modified coinsurance, with 90% of risk covered by Lotus Re and PICA retaining 10% under the agreement. In addition, the Company entered into a YRT agreement with Lotus Re, also effective January 1, 2022, under which Lotus Re cedes mortality risk for variable life policies back to the Company. The amount ceded from Lotus Re to the Company and the reinsurance premiums are a full passthrough to replicate the amounts covered under various YRT agreements between the Company and third-party reinsurers. Settlement of $3.2 billion was in-kind and is therefore reflected within the supplemental disclosure of non-cash items in Note 1B. As a result of this transaction, the Company recorded an $830 million deferred reinsurance gain as of December 31, 2022. In addition, the Company entered into a coinsurance agreement with Lotus Re effective October 1, 2024 to cede 100% of a small block of Appreciable Life policies in extended term policy status. This YRT agreement was modified effective October 1, 2025 as part of the broader affiliate YRT restructure, such that PLAZ is the new reinsurer (rather than the Company) for certain policies.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

*PURE*

Effective October 1, 2023, the Company entered into a coinsurance agreement with Prudential Universal Reinsurance Entity Company ("PURE"), a subsidiary of the Company, to reinsure 10% of mortality risk on MyLegacy policies. This agreement was recaptured effective January 1, 2024 and as a result, there was a small recapture settlement (showing as a negative premium) in 2024.

*Unaffiliated*

Individual Life utilizes various types of reinsurance, including primarily YRT, per person excess, excess of loss, and coinsurance. On policies sold since 2000, the Company has reinsured a significant portion of the individual life mortality risk. Placement of reinsurance is accomplished primarily on an automatic basis with some specific risks reinsured on a facultative basis. Effective October 1, 2025, the majority of such risk was transferred from The Company to PLAZ as part of a broader affiliate YRT restructure noted above, whereby PLAZ (rather than the Company) retrocedes the majority of risk to third-party reinsurers. The Company has historically retained up to $30 million per life, but reduced its retention limit to $20 million per life beginning in 2013, and further reduced it to $10 million per life beginning in 2020.

On January 2, 2013, the Company acquired the individual life insurance business of The Hartford Financial Services Group, Inc. ("The Hartford") through a reinsurance transaction. Under the terms of the agreement, the Company paid The Hartford a cash consideration of $615 million consisting primarily of a ceding commission to provide reinsurance for approximately 700,000 Hartford life insurance policies with a net retained face amount in force of approximately $141 billion. The assets acquired and liabilities assumed have been included in the Company's Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus as of the date of acquisition. The Company's Statement of Operations and Changes in Capital and Surplus includes the results of the acquired business beginning from the date of acquisition.

**Closed Block**

The Company has ceded to an affiliated insurer as of and for the years ended December 31, as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Premiums** | **Premiums** | **Premiums** |
| | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Ceded:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;PLIC | $44824 | $45814 | $46919 | $1708 | $1679 | $1667 |
| **Affiliated total**  | $44824 | $45814 | $46919 | $1708 | $1679 | $1667 |

---

*PLIC*

The Plan of Reorganization provided that Prudential Insurance may, with the prior consent of the New Jersey Commissioner of Banking and Insurance, enter into agreements to transfer to a third party all or any part of the risks under the Closed Block policies. Effective January 1, 2015, the Company recaptured 100% of the remaining Closed Block policies in force covered by these agreements. Concurrently, on January 1, 2015, the Company entered into a reinsurance agreement with its subsidiary, PLIC, in which the Company reinsured substantially all of the outstanding liabilities of its regulatory Closed Block, primarily on a coinsurance basis. The only exceptions to the 100% coinsurance arrangement are as follows (1) the policyholder dividend liability which will be reinsured from the Company to PLIC on a 100% modified coinsurance basis (2) 10% of the Closed Block's New York policies, which will be retained by the Company on both the coinsurance and modified coinsurance agreements; and (3) certain Closed Block policies that were previously reinsured externally. In connection with this reinsurance transaction, the Company ceded approximately $58 billion of assets into a newly established statutory guaranteed separate account of PLIC. Concurrently, the Company ceded approximately $5 billion of assets to PLIC to support the securities lending program.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Individual Annuities**

The Company has assumed from affiliated and unaffiliated insurers as of and for the years ended December 31, as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Premiums** | **Premiums** | **Premiums** |
| | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Assumed:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;PLNJ | $323 | $305 | $337 | $684 | $711 | $307 |
| **Affiliated total**  | 323 | 305 | 337 | 684 | 711 | 307 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unaffiliated  | 901 | 1017 | 1179 | 24 | 31 | 7 |
| **Unaffiliated total**  | 901 | 1017 | 1179 | 24 | 31 | 7 |
| **Total**  | $1224 | $1322 | $1516 | $708 | $742 | $314 |

---

*PLNJ*

Effective April 1, 2016, the Company reinsured variable annuity base contracts, along with the living benefit guarantees, from PLNJ. This reinsurance agreement covers new and in force business and excludes business reinsured externally. As of December 31, 2020, PLNJ discontinued the sales of traditional variable annuities with guaranteed living benefit riders. This discontinuation has no impact on the reinsurance agreement between PLNJ and the Company.

Effective February 1, 2023, PLNJ began selling indexed variable annuities products, which the Company reinsured through the existing reinsurance agreement under modified coinsurance. The reinsurance of the indexed variable annuities transfers all significant risks, including mortality risk, embedded in the reinsured contracts assumed by the Company.

The product risks related to the reinsured business are being managed in the Company. In addition, the living benefit hedging program related to the reinsured living benefit guarantees is being managed within the Company.

*Unaffiliated*

Effective June 1, 2006, the Company acquired the variable annuity business of Wilton Re and Everlake (former Allstate block of business) through a reinsurance transaction for $635 million pre-tax of total consideration, consisting primarily of a $628 million ceding commission. The reinsurance arrangement with Wilton Re and Everlake included a coinsurance arrangement associated with the separate account assets and liabilities assumed. The assets acquired and liabilities assumed have been included in the Company's Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus as of the date of acquisition. The Company's Statement of Operations and Changes in Capital and Surplus includes the results of the acquired variable annuity business beginning from the date of acquisition.

*FLIAC*

Effective December 31, 2015, the Company entered into a reinsurance agreement with FLIAC for its deferred variable annuity business written in New York on a whole contract basis where the general account liabilities will be reinsured on a coinsurance basis, and the separate account and Market Value Adjusted liabilities will be reinsured on a modified coinsurance basis. On April 1, 2022, FLIAC (formerly PALAC) was sold to Fortitude Re and is no longer considered an affiliate of the Company.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Retirement**

The Company has assumed and ceded from affiliated and unaffiliated insurers as of and for the years ended December 31, as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Premiums** | **Premiums** | **Premiums** |
| | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Assumed:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;PLAZ | $2 | $2 | $2 | $— | $— | $— |
| **Affiliated total**  | 2 | 2 | 2 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unaffiliated | 2797 | 2597 | 2585 | 6818 | 5986 | 4860 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Unaffiliated total**  | 2797 | 2597 | 2585 | 6818 | 5986 | 4860 |
| **Total**  | $2799 | $2599 | $2587 | $6818 | $5986 | $4860 |
| **Ceded:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unaffiliated | $9773 | $9753 | $9977 | $245 | $— | $8981 |
| **Unaffiliated total**  | 9773 | 9753 | 9977 | 245 |  | 8981 |
| **Total**  | $9773 | $9753 | $9977 | $245 | $— | $8981 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*PLAZ*

Effective July 31, 1984, the Company has entered into a Group Annuity Contract reinsurance agreement with PLAZ, a subsidiary of the Company, whereby the reinsurer, in consideration for a single premium payment by the Company, provides reinsurance equal to 100% of all payments due under the contract.

&nbsp;&nbsp;&nbsp;&nbsp;

*Unaffiliated*

Since 2014, the Company has entered into reinsurance agreements to assume longevity risk in the United Kingdom. Under these arrangements, the Company assumes scheduled monthly premiums including reinsurance fees, and in exchange, the Company pays the reinsured benefits based on the actual mortality experience for the period to the ceding insurers. The Company has secured collateral from its counterparties to minimize counterparty default risk. As of December 31, 2025, the Company has reserves of $691 million to cover the asset and longevity risk associated with the pension benefits.

*Prismic Re*

In September 2023, the Company entered into an agreement with Prismic Re to reinsure approximately $10 billion of reserves for certain structured settlement annuity contracts issued by the Company effective September 2023. These contracts represented approximately 70% of the Company's in-force structured settlement annuities business. As a result of this transaction, the Company recorded a day 1 loss of $861 million, of which $808 million was recognized through net income and $53 million was recorded as a deferred reinsurance loss as of December 31, 2023.

*Talcott Life Re, Ltd*

In July 2025, PICA entered into a reinsurance agreement with Bermuda based Talcott Life Re, Ltd to reinsure the liabilities of new business sales for Structured Settlement Annuities with and without life contingencies through coinsurance with Funds Withheld. The quota share percentages can differ between types of reinsured contracts, such as life contingent vs. non-life contingent and long vs. short duration. Once a reinsured contract has been ceded under the agreement, the quota share for the reinsured contract will not change.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**&nbsp;&nbsp;&nbsp;&nbsp;International**

The Company has assumed from and ceded to affiliated and unaffiliated insurers as of and for the years ended December 31, as follows:&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Premiums** | **Premiums** | **Premiums** |
| | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Assumed:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prudential Life Insurance Co., Ltd. (Japan) | $27736 | $26298 | $24984 | $2857 | $3077 | $3430 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prudential Gibraltar Financial Life Insurance Co., Ltd | 7830 | 7766 | 7733 | 398 | 498 | 713 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gibraltar Life Insurance Co., Ltd | 205 | 64 |  | 234 | 90 |  |
| &nbsp;&nbsp;**Affiliated total**  | $35771 | $34128 | $32717 | $3489 | $3665 | $4143 |
| **Ceded:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prudential Seguros Mexico, S.A. de C.V. | $— | $— | $— | $7 | $31 | $32 |
| **Affiliated total**  |  |  |  | 7 | 31 | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unaffiliated | 800 | 400 |  | 1766 | 2382 | 4 |
| &nbsp;&nbsp;**Unaffiliated total**  | 800 | 400 |  | 1766 | 2382 | 4 |
| **Total**  | $800 | $400 | $— | $1773 | $2413 | $36 |

---

*Affiliated*

The Company reinsures certain individual life insurance policies through excess risk term contracts. In addition, the Company has entered into coinsurance agreements for U.S. dollar-denominated policies sold by The Prudential Life Insurance Company, Ltd. (Japan) ("POJ"), Prudential Gibraltar Financial Life Insurance Co. Ltd ("PGFL"), and The Gibraltar Life Insurance Co., Ltd ("GIB"). For these reinsurance policies assumed through excess risk term contracts, the Company retrocedes a portion of these reinsurance policies to foreign subsidiary companies of Prudential Financial.

In April 2016, a trust was established for the benefit of certain policyholders related to a reinsurance agreement between the Company and POJ. Total assets of $14.6 billion and $13.5 billion related to this trust arrangement were on deposit with trustees as of December 31, 2025 and December 31, 2024, respectively.

*Unaffiliated* 

In October 2024, the Company entered into a retrocession agreement with The Canada Life Assurance Company for the U.S. dollar denominated whole life policies currently assumed from POJ. This retrocession agreement is a combination of modified coinsurance and coinsurance, where policies are retroceded based upon a quota share percentage. In September 2025, the Company executed its first increase to the quota share percentage.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**&nbsp;&nbsp;&nbsp;&nbsp;Group Insurance**

The Company has assumed from and ceded to unaffiliated insurers as of and for the years ended December 31, as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Premiums** | **Premiums** | **Premiums** |
| | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Assumed:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unaffiliated | $7 | $7 | $7 | $1 | $— | $— |
| **Unaffiliated total**  | $7 | $7 | $7 | $1 | $— | $— |
| **Ceded:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unaffiliated | $344 | $286 | $273 | $2846 | $2884 | $2952 |
| **Unaffiliated total**  | $344 | $286 | $273 | $2846 | $2884 | $2952 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*Unaffiliated*

Group Insurance uses reinsurance primarily to limit losses from large claims, in response to client requests and for capital management purposes.

**&nbsp;&nbsp;&nbsp;&nbsp;Other Business**

The Company has assumed from and ceded to unaffiliated insurers as of and for the years ended December 31, as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Policy and Claim Reserves** | **Premiums** | **Premiums** | **Premiums** |
| | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Assumed:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unaffiliated | $— | $— | $1 | $— | $— | $1 |
| **Unaffiliated total**  |  |  | 1 |  |  | 1 |
| **Total**  | $— | $— | $1 | $— | $— | $1 |
| **Ceded:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unaffiliated | $2786 | $5162 | $5551 | $(1459) | $689 | $705 |
| **Unaffiliated total**  | 2786 | 5162 | 5551 | (1459) | 689 | 705 |
| **Total**  | $2786 | $5162 | $5551 | $(1459) | $689 | $705 |

---

Effective April 2022, in connection with the Full Service Retirement business sale, the Company entered into separate agreements with external counterparties, Empower Annuity Insurance Company of America ("EAICA") and Empower Life & Annuity Insurance Company of New York ("ELAINY") to reinsure a portion of its Full Service Retirement business. The company ceded 100% of separate account liabilities under modified coinsurance and 100% of general account liabilities under coinsurance of its Full Service Retirement business. The Company's Full Service Retirement business separate accounts consist of market value and stable value separate accounts, and the Full Service general account products consist of individual annuities, stable value accumulation funds and a stable value wrap product known as a synthetic guaranteed investment contract. The reinsurance agreement offers the policyholders the opportunity to novate their contracts from the Company to Empower and any such novated contracts shall cease to be reinsured under this agreement. On October 31, 2025, the Company executed a novation of policies in the amount of $2,163 million, that were previously reinsured to ELAINY. Policies were novated to Empower Annuity Insurance Company ("EAIC") reducing the Company's direct and ceded reserves to ELAINY by $2,163 million.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**8.&nbsp;&nbsp;&nbsp;&nbsp;DERIVATIVE INSTRUMENTS** 

The Company uses derivatives to manage risks from changes in interest rates or foreign currency values, to alter interest rate or currency exposures arising from mismatches between assets and liabilities (including duration mismatches), to hedge against changes in the value of assets it owns or anticipates acquiring and other anticipated transactions and commitments, and to replicate the investment performance of otherwise permissible investments. Insurance statutes restrict the Company's use of derivatives primarily to hedging, income generation, and replication activities intended to offset changes in the market value and cash flows of assets held, obligations, and anticipated transactions and prohibit the use of derivatives for speculation.

The Company, at inception, may designate derivatives as either (1) a hedge of the fair value of a recognized asset or liability or unrecognized firm commitment; (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability; (3) a foreign-currency fair value or cash flow hedge; (4) a hedge of the foreign currency exposure of a net investment in a foreign operation or (5) a derivative that does not qualify for hedge accounting, including replications.

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.

Upon termination of a derivative that qualified for hedge accounting, the gain or loss is usually reflected as an adjustment to the basis of the hedged item and is recognized in income consistent with the hedged item. There were no instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur. The qualifying cash flow hedges are related to the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments and certain forecasted transactions. The maximum length of time for which these variable cash flows are hedged was 35 years and 36 years, as of December 31, 2025 and 2024, respectively.

To the extent that the Company chooses not to designate its derivatives for hedge accounting or designated derivatives no longer meet the criteria of an effective hedge, the changes in their fair value are included in "Change in net unrealized capital gains (losses)" without considering changes in fair value of the hedged item. Accruals of interest income, expense and related cash flows on swaps are reported in "Net investment income." Upon termination of a derivative that does not qualify for hedge accounting, the gain or loss is included in "Net realized capital gains (losses)." In addition, when realized gains or losses on interest-rate related derivatives are recognized, they are amortized through the IMR.

***Types of Derivative Instruments and Derivative Strategies***

Derivative instruments used by the Company include currency swaps, currency forwards, interest rate swaps, interest rate forwards, interest rate options, total return swaps, treasury futures, equity options (including rights and warrants), equity futures, and credit default swaps. For those hedge transactions which qualify for hedge accounting, the change in the carrying value or cash flow of the derivative is recorded in a manner consistent with the changes in the carrying value or cash flow of the hedged asset, liability, firm commitment or forecasted transaction. For hedges of net investments in a foreign operation, changes in fair value of such derivatives, to the extent effective, are recorded in "Change in net unrealized capital gains." In measuring effectiveness, with respect to certain hedge relationships, the Company's risk management strategy may define specific risk being hedged and it may exclude specific components of derivatives gains or losses unrelated to the defined risk; such excluded components for hedge relationships the Company has are recognized in "Net investment income" and amortized over the term of the hedge relationship.

***Interest Rate Contracts***

Interest rate swaps, options, forwards, 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 (including duration mismatches) and to hedge against changes in the value of assets it owns or anticipates acquiring or selling. Swaps may be attributed to specific assets or liabilities or may be used on a portfolio basis. 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.

In exchange-traded interest rate futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the values of underlying referenced investments, and receives/posts variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures with regulated futures commission's merchants who are members of a trading exchange.

***Equity Contracts***

Equity index options and futures 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.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

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 based on a notional amount. The Company generally uses total return swaps to hedge the effect of adverse changes in equity indices.

***Foreign Exchange Contracts***

Currency derivatives, including currency forwards and swaps are used by the Company to reduce risks from fluctuations in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell, and to hedge the currency risk associated with net investments in foreign operations and anticipated earnings of its foreign operations.

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. As noted above, the Company uses currency forwards to mitigate the impact of changes in currency exchange rates on U.S. dollar equivalent earnings generated by certain of its non-USD denominated businesses, international operations, and investments. 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.

***Other Contracts***

The Company, from time to time, uses TBA forward contracts to gain exposure to the investment risk and return of mortgage-backed securities. TBA transactions can help the Company enhance the return on its investment portfolio, and can provide a more liquid and cost effective method of achieving these goals than purchasing or selling individual mortgage-backed pools. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. Additionally, pursuant to the Company's mortgage dollar roll program, TBAs or mortgage-backed securities are transferred to counterparties with a corresponding agreement to repurchase them at a future date. These transactions do not qualify as secured borrowings and are accounted for as derivatives.

***Credit Derivatives***

Credit default swaps are used by the Company in conjunction with fixed income investments as replication synthetic asset transactions ("RSAT"). RSATs are derivative transactions entered into in conjunction with other investments in order to produce the investment characteristics of otherwise permissible investments. Credit default swaps used in RSATs are carried at amortized cost with premiums received on such transactions recorded to "Net investment income" over the life of the contract and loss payouts, if any, are recorded as "Net realized capital gains (losses)." The Company also uses credit default swaps to hedge exposures in its investment portfolios. Such contracts are not designated as replications, and they are used in relationships that do not qualify for hedge accounting.

Credit derivatives, where the Company has written credit protection on certain index references with notional amounts of $4,272 million and $2,713 million, are reported at fair value as an asset of $68 million and an asset of $51 million as of December 31, 2025 and 2024, respectively. As of December 31, 2025, these credit derivatives' notionals had the following NAIC ratings: $4,060 million in NAIC 3, and $212 million in NAIC 6. As of December 31, 2024, these credit derivatives' notionals had the following NAIC ratings: $2,488 million in NAIC 3, and $225 million in NAIC 6. NAIC designations are based on the lowest rated single name reference included in the index.

The Company's maximum amount at risk under these credit derivatives equals the aforementioned notional amounts and assumes the value of the underlying securities becomes worthless. These single name credit derivatives have matured, while the credit protection on the index reference has a maturity of less than 10 years. These credit derivatives are accounted for as RSATs.

In addition to writing credit protection, the Company may purchase credit protection using credit derivatives in order to hedge specific credit exposures in the Company's investment portfolio. As of both December 31, 2025 and 2024, the Company had no outstanding contracts where it had purchased credit protection.

***Counterparty Credit Risk***

The Company is exposed to credit-related losses in the event of nonperformance by counterparties to financial derivative transactions. Generally, the credit exposure of the Company's OTC derivative transactions are represented by the contracts with a positive fair value (market value) at the reporting date after taking into consideration the existence of netting agreements. Also, the Company enters into

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

exchange-traded futures and transactions through regulated exchanges and these transactions are settled on a daily basis, thereby reducing credit risk exposure in the event of non-performance by counterparties to such financial instruments.

Substantially all of the Company's OTC derivative contracts are transacted with a subsidiary, Prudential Global Funding, LLC ("PGF"). In instances where the Company transacts with unaffiliated counterparties, the Company manages credit risk by entering into derivative transactions with highly rated major international financial institutions and other credit worthy counterparties, and by obtaining collateral where appropriate. Additionally, limits are set on single party credit exposures which are subject to periodic management review.

The net cash collateral that would need to be returned by the Company was $203 million and $254 million as of December 31, 2025 and 2024, respectively.

The net fair value of securities pledged as collateral by the Company was $2,724 million and $1,381 million as of December 31, 2025 and 2024, respectively.

The table below depicts the derivatives owned by the Company as of December 31, 2025 and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Derivatives Financial Instruments** | **Derivatives Financial Instruments** | **Derivatives Financial Instruments** | **Derivatives Financial Instruments** | **Derivatives Financial Instruments** | **Derivatives Financial Instruments** |
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| |<br>**Notional** | **Carrying**<br>**Amount** | **Estimated**<br>**Fair Value** |<br>**Notional** | **Carrying**<br>**Amount** | **Estimated**<br>**Fair Value** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Options:** | | | | | | |
| Assets | $1548 | $52 | $52 | $2448 | $190 | $190 |
| Liabilities | $286 | $23 | $23 | $1190 | $170 | $170 |
| **Swaps:** |  |  |  |  |  |  |
| Assets | 37007 | 2535 | 2549 | 47274 | 3754 | 3568 |
| Liabilities | 40359 | 3049 | 3260 | 30102 | 2595 | 3028 |
| **Forwards:** |  |  |  |  |  |  |
| Assets | 1998 | 33 | 32 | 3722 | 105 | 162 |
| Liabilities | 6297 | 40 | 218 | 2811 | 123 | 196 |
| **Futures:** |  |  |  |  |  |  |
| Assets | 2060 | 32 | 4 | 1508 | 27 | 3 |
| Liabilities | 5163 |  | 18 | 4096 |  | 16 |
| **Totals:** |  |  |  |  |  |  |
| Assets | $42613 | $2652 | $2637 | $54952 | $4076 | $3923 |
| Liabilities | $52105 | $3112 | $3519 | $38199 | $2888 | $3410 |

---

Certain of the Company's derivative contracts require premiums to be paid at a series of specified future dates over the life of the contract or at maturity. The discounted value of these future settled premiums is included in the measurement of the estimated fair value of each derivative along with all other contractual cash flows.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The table below summarizes the net amount of undiscounted future settled premium payments (receipts), by year, as of December 31, 2025:

**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

---

| | |
|:---|:---|
| **Fiscal Year** | **Premium Payments Due** |
| 2026 | $— |
| 2027 |  |
| 2028 |  |
| 2029 | 3 |
| Thereafter | 8 |
| **Total Future Settled Premiums**  | $11 |

---

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| | **(in millions)** | **(in millions)** |
| Undiscounted Future Premium Commitments | $11 | $— |
| Derivative Fair Value With Premium Commitments | 3 |  |
| Derivative Fair Value Excluding Impact of Future Settled Premiums | 14 |  |

---

The table below summarizes the applicable excluded component data as of December 31, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Type of Excluded Component** | **Current Fair Value** | **Recognized Unrealized Gain/Loss** | **Fair Value Reflected in BACV** | **Aggregate Amount Owed at Maturity** | **Current Year Amortization** | **Remaining Amortization** |
| **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (in millions)** |
| Time Value | N/A | N/A | N/A |  |  |  |
| Intrinsic Value | N/A | N/A | N/A |  |  |  |
| Cross Current Basis Spread | N/A | N/A | N/A |  |  |  |
| Forward Points | $(123) | $— | $— | $(329) | $(14) | $(288) |

---

The table below summarizes the applicable excluded component data as of December 31, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Type of Excluded Component** | **Current Fair Value** | **Recognized Unrealized Gain/Loss** | **Fair Value Reflected in BACV** | **Aggregate Amount Owed at Maturity** | **Current Year Amortization** | **Remaining Amortization** |
| **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (in millions)** |
| Time Value | N/A | N/A | N/A |  |  |  |
| Intrinsic Value | N/A | N/A | N/A |  |  |  |
| Cross Current Basis Spread | N/A | N/A | N/A |  |  |  |
| Forward Points | $(64) | $— | $— | $(329) | $(10) | $(302) |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**9.&nbsp;&nbsp;&nbsp;&nbsp;INCOME TAXES** 

The application of SSAP No. 101 requires a company to evaluate the recoverability of deferred tax assets and to establish a valuation allowance if necessary, to reduce the deferred tax asset to an amount which is more likely than not 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) the timing of their reversal; (4) taxable income in prior carry back years as well as projected taxable earnings, exclusive of reversing temporary differences and carry forwards; (5) the length of time that carryovers can be utilized; (6) 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 the realization is not assured, management believes it is more likely than not that the deferred tax assets, net of valuation allowances, will be realized. The Company has recorded $0.3 million valuation allowance as of both December 31, 2025 and December 31, 2024. Valuation allowance has been recorded against deferred tax assets related to the branch foreign tax credits. Adjustments to the valuation allowance are made to reflect changes in management's assessment of the amount of the deferred tax asset that is realizable, and the amount of deferred tax asset actually realized during the year.

**9A. &nbsp;&nbsp;&nbsp;&nbsp;**The components of the net deferred tax asset/(liability) ("DTA"/"DTL") are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **Change** | **Change** | **Change** |
| | **Ordinary** | **Capital** | **Total** | **Ordinary** | **Capital** | **Total** | **Ordinary** | **Capital** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Gross DTA | $5925 | $36 | $5961 | $6255 | $239 | $6494 | $(330) | $(203) | $(533) |
| Statutory Valuation Allowance Adjustment |  |  |  |  |  |  |  |  |  |
| Adjusted Gross DTA | 5925 | 36 | 5961 | 6255 | 239 | 6494 | (330) | (203) | (533) |
| DTA Nonadmitted | 1050 |  | 1050 | 1118 | 118 | 1236 | (68) | (118) | (186) |
| **Subtotal (Net Admitted Adjusted Gross DTA)**  | 4875 | 36 | 4911 | 5137 | 121 | 5258 | (262) | (85) | (347) |
| DTL | 2640 | 200 | 2840 | 3101 | 121 | 3222 | (461) | 79 | (382) |
| **Net Admitted DTA**  | $2235 | $(164) | $2071 | $2036 | $— | $2036 | $199 | $(164) | $35 |

---

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| | **(in millions)** | **(in millions)** |
| Change in Net DTA | $(151) | $81 |
| Less: Change in Net DTL on unrealized (gains)/losses | (7) | 33 |
| Less: Shared based payment adjustment |  |  |
| Less: Other deferred booked to surplus |  |  |
| **Change in net deferred income tax**  | $(144) | $48 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The components of the admission calculation are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **Change** | **Change** | **Change** |
| | **Ordinary** | **Capital** | **Total** | **Ordinary** | **Capital** | **Total** | **Ordinary** | **Capital** | **Total** |
| **Admission Calculation Components - SSAP No. 101** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Admitted pursuant to 11.a. (loss carrybacks) | $— | $20 | $20 | $— | $— | $— | $— | $20 | $20 |
| Admitted pursuant to 11.b. (Realization) | 2051 |  | 2051 | 2036 |  | 2036 | 15 |  | 15 |
| Realization per 11.b.i | 3556 |  | 3556 | 3973 |  | 3973 | (417) |  | (417) |
| Limitation per 11.b.ii |  |  | 2051 |  |  | 2036 |  |  | 15 |
| Admitted pursuant to 11.c | 2824 | 16 | 2840 | 3101 | 121 | 3222 | (277) | (105) | (382) |
| **Total Admitted pursuant to SSAP No. 101**  | $4875 | $36 | $4911 | $5137 | $121 | $5258 | $(262) | $(85) | $(347) |

---

Additional information used in certain components of the admission calculation are as follows:

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| | **Total** | **Total** |
| **ExDTA ACL RBC ratio** | **($ in millions)** | **($ in millions)** |
| Ratio % used to determine recovery period & threshold limit amount | 756.56% | 741.09% |
| Amount of adjusted capital and surplus used to determine recovery period & threshold limit | $21275 | $19709 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **Change** | **Change** |
| | **Ordinary** | **Capital** | **Ordinary** | **Capital** | **Ordinary** | **Capital** |
| **Impact of Tax-Planning Strategies** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Determination of adjusted gross deferred tax assets and net admitted deferred tax assets by tax character as a percentage |  |  |  |  |  |  |
| Adjusted gross DTAs amount from Note 9A | $5926 | $36 | $6255 | $239 | $(329) | $(203) |
| Percentage of adjusted gross DTAs by tax character admitted because of the impact of tax planning strategies attributable to the tax character | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Net admitted adjusted gross DTAs amount from Note 9A | 4876 | 36 | 5137 | 121 | (261) | (85) |
| Percentage of net admitted adjusted gross DTAs by tax character admitted because of the impact of tax planning strategies attributable to that tax character | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |

---

&nbsp;&nbsp;&nbsp;&nbsp;

The Company's tax-planning strategies do not include the use of reinsurance.

**9B. &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities not recognized:**

There were no deferred tax liabilities that are not recognized.

The Company has no Policyholder surplus account under the Internal Revenue Code.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**9C. &nbsp;&nbsp;&nbsp;&nbsp;Current income taxes incurred consist of the following major components as of December 31:**

Current Income Tax:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** | **Change**<br>**2025-2024** | **Change**<br>**2024-2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Federal | $182 | $354 | $(42) | $(172) | $396 |
| Foreign | 9 | 8 | 4 | 1 | 4 |
| **Subtotal**  | 191 | 362 | (38) | (171) | 400 |
| Federal income tax on net realized capital gains (losses) | (148) | (255) | (181) | 107 | (74) |
| Capital loss carry-forwards |  |  |  |  |  |
| Other |  |  |  |  |  |
| **Federal and foreign income taxes incurred**  | $43 | $107 | $(219) | $(64) | $326 |

---

DTAs Resulting from Book/Tax Differences:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **Change** |
| | **(in millions)** | **(in millions)** | **(in millions)** |
| Ordinary: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance Reserves | $1888 | $2007 | $(119) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policyholder Dividends | 221 | 234 | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred Acquisition Costs | 464 | 461 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee Benefits | 619 | 573 | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Invested Assets | 2545 | 2825 | (280) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonadmitted Assets | 121 | 103 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Deferred Tax Assets | 67 | 52 | 15 |
| **Subtotal**  | 5925 | 6255 | (330) |
| Statutory valuation allowance adjustment |  |  |  |
| Nonadmitted | 1050 | 1118 | (68) |
| **Total admitted ordinary DTA**  | 4875 | 5137 | (262) |
| Capital: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Invested Assets – Bonds, Stocks, & Other | 36 | 37 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized Capital (Gains)/Losses |  | 202 | (202) |
| **Subtotal**  | 36 | 239 | (203) |
| Statutory valuation allowance adjustment |  |  |  |
| Nonadmitted |  | 118 | (118) |
| **Total admitted capital DTA**  | 36 | 121 | (85) |
| **Total admitted DTA (Ordinary and Capital)**  | $4911 | $5258 | $(347) |

---

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

DTLs Resulting from Book/Tax Differences:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **Change** |
| | **(in millions)** | **(in millions)** | **(in millions)** |
| Ordinary: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance Reserves | $417 | $523 | $(106) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Invested Assets - Derivatives & Other | 2201 | 2388 | (187) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized Capital (Gains)/Losses |  | 157 | (157) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 22 | 33 | (11) |
| **Subtotal**  | 2640 | 3101 | (461) |
| Capital: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Invested Assets - Bonds, Stocks, & Other | 200 | 121 | 79 |
| **Subtotal**  | 200 | 121 | 79 |
| **Total DTLs**  | $2840 | $3222 | $(382) |
| **Net DTAs/DTLs**  | $2071 | $2036 | $35 |

---

&nbsp;&nbsp;&nbsp;&nbsp;

**9D. &nbsp;&nbsp;&nbsp;&nbsp;Analysis of Actual Income Tax Expense**

The Company's income tax expense differs from the amount obtained by applying the statutory rate of 21% to pretax net income for the following reasons at December 31:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** | **Change**<br>**2025-2024** | **Change**<br>**2024-2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Expected federal income tax expense | $347 | $122 | $158 | $225 | $(36) |
| Non taxable investment income | (65) | (66) | (89) | 1 | 23 |
| Tax credits  | (44) | (35) | (44) | (9) | 9 |
| Items in equity | (30) | (60) | 82 | 30 | (142) |
| IMR | 36 | 38 | 47 | (2) | (9) |
| Deferred ceding allowance | (33) | 60 | (16) | (93) | 76 |
| Sale of subsidiary | (13) |  | (16) | (13) | 16 |
| Prior Period Adjustment - Reserve |  |  | 16 |  | (16) |
| Prior year true-up | (17) | (3) | (4) | (14) | 1 |
| Other | 7 | 3 | 1 | 4 | 2 |
| **Total incurred income tax expense**  | $188 | $59 | $135 | $129 | $(76) |

---

*Non-Taxable Investment Income* - This item is primarily related to common stock earnings of subsidiaries and the U.S. Dividends Received Deduction ("DRD"). The DRD reduces the amount of dividend income subject to U.S. tax and accounts for a significant amount of the non-taxable investment income shown in the table above. More specifically, the U.S. DRD constitutes $17 million of the total $65 million of 2025 non-taxable investment income, $12 million of the total $66 million of 2024 non-taxable investment income, and $22 million of the total $89 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. The remaining $48 million of tax benefit for 2025 is driven by $40 million related to common stock earnings of subsidiaries, $7 million of tax-exempt interest, and other adjustments. For 2024, $54 million of tax benefit is driven by $37 million related to common stock earnings of subsidiaries, $6 million of tax-exempt interest, and other adjustments. For 2023, $67 million of tax benefit is driven by $39 million related to common stock earnings of subsidiaries, $11 million of tax-exempt interest, and other adjustments.

*Interest Maintenance Reserve (IMR)* - This item is designed to defer realized capital gains & losses that result from the sale of fixed income investments resulting from changes in the overall level of interest rates. Per SSAP No. 7, the gains and losses are amortized into

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

investment income over the expected remaining life of the investments sold. The deferral of the gains for book purposes is not allowed for tax. Therefore, the deferred gain and the corresponding amortization are reversed for tax.

*Deferred Ceding Allowance* - SSAP 61 requires that any initial gains or increase in surplus resulting from reinsurance agreements be deferred. Recognition of the gain is reflected as earnings emerge from the business reinsured. The deferred gain is recognized for tax purposes on day 1 and subsequent recognition in pre-tax is reversed for tax.

*Sale of Subsidiary* - This line item relates to tax impact from sale of PICA's interest in PGIM SITE and sale of shares in Peak Re Holdings.

*Low-Income Housing and Other Tax Credits* - These amounts include U.S. tax credits for Low-income Housing as well as foreign tax credits.

*Prior Period Adjustment – Reserve -* This item relates to the prior period adjustment from an overstatement of Future policy benefits and claims recorded to surplus. See Note 2 for further details.

**9E. &nbsp;&nbsp;&nbsp;&nbsp;Additional Tax Disclosures**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The amounts, origination dates and expiration dates of operating loss and tax credit carry forwards available for tax purposes:

At December 31, 2025, the Company had no net operating loss and no tax credit carry forwards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The Company's income tax incurred were $70 million, $0 million, and $0 million for the years ended December 31 2025, 2024, and 2023 respectively, that is available for recoupment in the event of future net losses.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The aggregate amount of deposits admitted under IRC § 6603 is $0.

**9F. &nbsp;&nbsp;&nbsp;&nbsp;**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 Internal Revenue Service or other taxing authorities. The completion of review or the expiration of the U.S. Federal statute of limitations for a given audit period could result in an adjustment to the liability for income taxes.

The Company's unrecognized tax benefits were $0 million, $4 million and $8 million for the years ended December 31, 2025, 2024, and 2023, respectively.

The Company classifies all interest and penalties related to tax uncertainties as income tax expense (benefit). In 2025, 2024 and 2023, the Company recognized $0 million, $0 million and $0 million, respectively, in the statement of operations and in the statement of financial positions for tax related interest and penalties.

The tax years that remain subject to examination by the U.S. tax authorities at December 31, 2025 are 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.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**9G.**&nbsp;&nbsp;&nbsp;&nbsp;The Company joins in filing a consolidated federal income tax return with its ultimate parent company, PFI. The consolidated companies have executed a written tax allocation agreement, which allocates the tax liability of each company based on their separate return tax liabilities, in accordance with Internal Revenue Code Section 1552(a)(2) and the Treasury Regulations Sections 1.1552-1(a)(2) and 1.1502-33(d)(2)(ii). Members with losses record current tax benefits to the extent such losses are recognized in the consolidated federal tax return. Any company allocated a credit in accordance with these provisions will receive payment for such credit not later than the 31st day of December in the year in which the return is filed.

For purposes of the CAMT, PICA is an applicable reporting entity with a tax allocation agreement exclusion. Thus, the Company will not be subject to any CAMT impact for statutory reporting purposes.

---

| | |
|:---|:---|
| The Company joins in filing a consolidated federal income tax return, which includes the following companies: | The Company joins in filing a consolidated federal income tax return, which includes the following companies: |
| &nbsp;&nbsp;&nbsp;&nbsp;AST Investment Services, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;PREI Acquisition I, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;Braeloch Holdings, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;PREI Acquisition II, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;Braeloch Successor Corporation | &nbsp;&nbsp;&nbsp;&nbsp;PREI International, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital Agricultural Property Services, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;Pruco Life Insurance Company (Arizona) |
| &nbsp;&nbsp;&nbsp;&nbsp;Colico II, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;Pruco Life Insurance Company of NJ |
| &nbsp;&nbsp;&nbsp;&nbsp;Colico, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;Prudential Annuities Distributors, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;Gibraltar International Insurance Services Company Inc | &nbsp;&nbsp;&nbsp;&nbsp;Prudential Annuities Information Services & Technology Corporation |
| &nbsp;&nbsp;&nbsp;&nbsp;Graham Resources, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;Prudential Arizona Reinsurance Captive Co. |
| &nbsp;&nbsp;&nbsp;&nbsp;Graham Royalty, Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Prudential Arizona Reinsurance Universal Co. |
| &nbsp;&nbsp;&nbsp;&nbsp;Lotus Reinsurance Company Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Prudential Financial, Inc. (Parent) |
| &nbsp;&nbsp;&nbsp;&nbsp;New Street Investments Corporation | &nbsp;&nbsp;&nbsp;&nbsp;Prudential International Insurance Holding, Ltd. |
| &nbsp;&nbsp;&nbsp;&nbsp;Orchard Street Acres Inc | &nbsp;&nbsp;&nbsp;&nbsp;Prudential Legacy Insurance Company of New Jersey |
| &nbsp;&nbsp;&nbsp;&nbsp;PGIM Foreign Investments, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;Prudential Securities Secured Financing Corporation |
| &nbsp;&nbsp;&nbsp;&nbsp;PGIM International Financing Inc | &nbsp;&nbsp;&nbsp;&nbsp;Prudential Structured Settlement Company |
| &nbsp;&nbsp;&nbsp;&nbsp;PGIM Private Placement Investors, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;Prudential Trust Company |
| &nbsp;&nbsp;&nbsp;&nbsp;PGIM Real Estate Finance Holding Company | &nbsp;&nbsp;&nbsp;&nbsp;Prudential Universal Reinsurance Entity Company |
| &nbsp;&nbsp;&nbsp;&nbsp;PGIM Real Estate Loan Services, Inc | &nbsp;&nbsp;&nbsp;&nbsp;SMP Holdings, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;PGIM REF Intermediary Services Inc | &nbsp;&nbsp;&nbsp;&nbsp;SVIIT Holdings, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;PGIM Strategic Investments, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;The Prudential Assigned Settlement Services, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;PGIM Warehouse, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;The Prudential Home Mortgage Company, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;PGIM, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;TRGOAG Company, Inc. (Texas Rio Grande Other Asset Group) |
| &nbsp;&nbsp;&nbsp;&nbsp;PGLH of Delaware, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;Vantage Casualty Insurance Company |

---

**9H.** &nbsp;&nbsp;&nbsp;&nbsp;*Repatriation Transition Tax ("RTT")* - The Company recognized $5 million tax expense related to RTT including the $3 million tax

benefit related to refinement to provisional estimates recorded in 2018.

The Company is electing to pay the RTT liability under the permitted installments over 8 years. The Company made payments of $1 million, $1 million, and $0.8 million in 2025, 2024, and 2023, respectively, and has satisfied all the RTT liability in 2025.

&nbsp;&nbsp;&nbsp;&nbsp;

**9I.** &nbsp;&nbsp;&nbsp;&nbsp;The Company did not have AMT credit carryforward as of December 31, 2024 or December 31, 2025.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**10.&nbsp;&nbsp;&nbsp;&nbsp;INFORMATION CONCERNING PARENT, SUBSIDIARIES AND AFFILIATES** 

**10A. &nbsp;&nbsp;&nbsp;&nbsp;**The Company did not have any material transactions, excluding reinsurance and non-insurance transactions, with affiliates for the years ended December 31, 2025 and 2024.

**10B.**&nbsp;&nbsp;&nbsp;&nbsp;The Company reported a receivable from parents, subsidiaries and affiliates of $272 million and $281 million at December 31, 2025 and 2024, respectively. The Company reported a payable to parents, subsidiaries and affiliates of $579 million and $376 million at December 31, 2025 and 2024, respectively. Receivables from and payables to parents, subsidiaries and affiliates are reported in "Other assets" and "Other liabilities," respectively, in the Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus. Intercompany balances are settled in cash, generally within thirty days of the respective reporting date.

**10C.**&nbsp;&nbsp;&nbsp;&nbsp;The Company has entered into service agreements with various affiliates. Under these agreements, the Company furnishes services of officers and employees and provides supplies, use of equipment, office space, and makes payment to third parties for general expenses, state and local taxes. The agreements obligate the affiliates to reimburse the Company for the approximate cost of providing such services. The affiliates also furnish similar services to the Company in connection with such agreements.

<br>The Company pays commissions and certain other fees to its affiliate, Prudential Annuities Distributors, Inc. ("PAD"), in consideration for PAD's marketing and underwriting of the Company's products. Commission expenses were $12 million, $22 million and $3 million for the years ended December 31, 2025, 2024 and 2023, respectively.

<br>The Company has a revenue sharing agreement with PGIM Investments LLC ("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 $39 million, $37 million and $32 million for the years ended December 31, 2025, 2024 and 2023, respectively.

The Company has a service agreement with PGIM, Inc. whereby PGIM performs investment advisory services. Investment advisory fees paid to PGIM, Inc. from the Company under affiliated agreements were $288 million, $253 million and $247 million for the years ended December 31, 2025, 2024 and 2023, respectively.

The Company, through Prudential's proprietary nationwide advice organization ("Prudential Advisors"), earns distribution revenue through a transfer pricing agreement which is intended to reflect a market-based pricing arrangement with its subsidiaries. Distribution revenue earned by the Company was $502 million and $174 million for the years ended December 31, 2025 and 2024, respectively.

**10D.**&nbsp;&nbsp;&nbsp;&nbsp;**Investment in Affiliates Sub-1/Sub- 2 Filing** 

Balance sheet values of SCAs (excluding U.S. insurance SCA entities) and NAIC filing response information as of December 31, 2025:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **SCA Entity** | **Percentage of SCA Ownership** | **Admitted Amount** | **Type of NAIC Filing\*** | **Date of Filing to the NAIC** | **NAIC Valuation Amount** | **NAIC Disallowed Entities Valuation Method, Resubmission Required <br>(Y/N)** | **Code\*\*** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| SSAP No. 97 8b(iii) Entities: |  |  |  |  |  |  |  |
| Colico II, Inc. | 100% | $660 | S2 | 10/7/2025 | $616 | N | I |
| Colico, Inc. | 100% | 2443 | S2 | 10/7/2025 | 2323 | N | I |
| Orchard Street Acres, Inc. | 100% | 1831 | S2 | 10/7/2025 | 1606 | N | I |
| Prudential Realty Securities, Inc. (Common) | 100% | 553 | S2 | 10/7/2025 | 554 | N | I |
| PGIM Loan Originator | 73% | 303 | S2 | 10/15/2025 | 227 | N | I |
| Prudential Annuities Distributors, Inc. | 100% | 28 | S2 | 10/7/2025 | 25 | N | I |
| New Street Investments Cayman Limited | 30% | 77 | In-Progress | N/A | 48 | N | I |
| Dryden Core Fund MM Ser MMMF Core Ultra | —% | 71 | S2 | 10/1/2025 | 42 | N | I |
| AST First Trust Capital Appreciati | —% |  | S2 | 10/8/2025 |  | N | I |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| AST AST Bond Portfolio 2034 \*\*\* | 5% | 1 | S2 | 10/1/2025 | 1 | N | I |
| AST AST J.P. Morgan Fixed Income C | —% |  | S2 | 10/8/2025 |  | N | I |
| AST Quantative Modeling | —% |  | S2 | 10/1/2025 |  | N | I |
| AST Bond Portfolio | —% |  | S2 | 10/1/2025 |  | N | I |
| AST Bond Portfolio 2033 \*\*\* | 10% |  | S2 | 10/1/2025 |  | N | I |
| AST Bond Portfolio 2032 \*\*\* | —% |  | S2 | 10/1/2025 |  | N | I |
| AST Bond Portfolio 2031 | —% |  | S2 | 10/1/2025 |  | N | I |
| AST Bond Port 2030 | —% |  | S2 | 10/1/2025 |  | N | I |
| AST Bond Portfolio 2028 | —% |  | S2 | 10/1/2025 |  | N | I |
| AST Bond Portfolio 2027 | —% |  | S2 | 10/1/2025 |  | N | I |
| PGIM Strategic Com | —% |  | S2 | 10/2/2025 |  | N | I |
| PGIM Strategic Com | —% |  | S2 | 10/2/2025 |  | N | I |
| Prudential Invt Portfolios 5 Com | —% |  | S2 | 10/2/2025 |  | N | I |
| Prudential Total Rtrn Bond A | —% |  | S2 | 10/2/2025 |  | N | I |
| Prudential Mid Cap Value Fnd A Rel Value | —% |  | S2 | 10/2/2025 |  | N | I |
| Prudential Jennison Small Fd A Com | —% |  | S2 | 10/2/2025 |  | N | I |
| PGIM Strategic Com | —% |  | S2 | 10/2/2025 |  | N | I |
| Prudential Total Rtrn Bond A Common Stk | —% |  | S2 | 10/2/2025 |  | N | I |
| AST Bond Portfolio 2035 \*\*\* | 7% | 1 | S2 | 10/2/2025 |  | N | I |
| Prudential High Yield Fund A COM | —% |  | S2 | 10/2/2025 |  | N | I |
| Jennison Value Fund - A | —% |  | S2 | 10/2/2025 |  | N | I |
| Jennison US Emerging Growth Com | —% |  | S2 | 10/2/2025 |  | N | I |
| Strategic Part PGIM Jennison Glob Eq Inc | —% |  | S2 | 10/2/2025 |  | N | I |
| Jennison Health Science A Com | —% |  | S2 | 10/2/2025 |  | N | I |
| Prudential Invt Portfolio PGIM Private R \*\*\* | 45% | 126 | In-Progress | N/A | 126 | N | I |
| AST Bond Portfolio 2036 | —% |  | In-Progress | N/A |  | N | I |
| Prudential Realty Securities, Inc. (Preferred) | 50% |  | S2 | 10/7/2025 |  | N | I |
| **Total SSAP No. 97 8b(iii) Entities**  |  | $6094 |  |  | $5568 |  |  |

---

\* S1 - Sub 1 or S2 - Sub 2

\*\* I - Immaterial

\*\*\* Revised to update amounts reported in the 2025 annual statement.

The Company did not have an investment in an insurance SCA for which the statutory capital and surplus differed from the NAIC SAP as a result of using a permitted practice as of December 31, 2025. See Note 1 for a description of all permitted and prescribed practices.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**11.&nbsp;&nbsp;&nbsp;&nbsp;NOTES PAYABLE AND OTHER BORROWINGS**

**11A. &nbsp;&nbsp;&nbsp;&nbsp;**Notes payable and other borrowings consisted of the following as of the dates indicated:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Debt Name** | **Date Issued** | **Kind of Borrowing** | **Face Amount** | **Carrying Value** | **Rate of Interest** | **Effective Interest Rate** | **Collateral Requirements** | **Interest Paid (Current Year)** |
| **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Pru Funding LLC - ST | Various | Cash | $— | $— | 4.69% - 4.75% | 4.69% - 4.75% |  | $1 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. There was no Accrued Interest as of December 31, 2025.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Debt Name** | **Date Issued** | **Kind of Borrowing** | **Face Amount** | **Carrying Value** | **Rate of Interest** | **Effective Interest Rate** | **Collateral Requirements** | **Interest Paid (Current Year)** |
| **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Pru Funding LLC - ST | Various | Cash | $— | $— | 5.69% - 5.79% | 5.69% - 5.79% |  | $6 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. There was no Accrued Interest as of December 31, 2024.

There were no scheduled principal repayments on debt as of December 31, 2025.

There are no covenant violations of the above debt. None of the debt was considered to be extinguished by in-substance defeasance prior to the effective date of this statement. Additionally, no assets have been set aside after the effective date of this statement solely for satisfying scheduled payments of a specific obligation. There are no reverse repurchase agreements whose amounts are included as part of the above debt.

**11B. &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank and Other Funding Agreements**

&nbsp;&nbsp;&nbsp;&nbsp;The Company maintains a Funding Agreement Notes Issuance Program under which Delaware statutory trusts and a limited liability company issue medium-term notes and/or short-term commercial paper to investors that are secured by funding agreements issued to the trusts and limited liability company by the Company. Under this program, the maximum authorized amount is $15 billion of medium-term notes and $6 billion of commercial paper. The outstanding notes and commercial paper have fixed interest rates that range from 0.0% to 5.6% and original maturities ranging from two months to ten years. Under SAP, the statutory trusts and limited liability company are not consolidated by the Company. Funding agreements which are issued to these entities and secure the notes and commercial paper are included in "Deposit-type contracts."

The outstanding aggregate principal amount of such notes and commercial paper totaled $8.7 billion and $5.6 billion as of December 31, 2025 and 2024, respectively. Included in the amounts are the medium-term note liability, which is carried at amortized cost, of $6.2 billion and $3.5 billion and short-term note liability of $2.5 billion and $2.1 billion as of December 31, 2025 and 2024, respectively.

The Company is a member of the Federal Home Loan Bank of New York ("FHLBNY"). Membership allows the Company access to the FHLBNY's financial services, including the ability to obtain collateralized loans and to issue collateralized funding agreements. Under applicable law, the funding agreements issued to the FHLBNY have priority claim status above debt holders of the Company. FHLBNY borrowings and funding agreements are collateralized by qualifying mortgage-related assets or U.S. Treasury securities, the fair value of which must be maintained at certain specified levels relative to outstanding borrowings. FHLBNY membership requires the Company to own member stock and borrowings require the purchase of activity-based stock in an amount equal to 4.5% of outstanding borrowings. Borrowings by the Company from the FHLBNY are limited to a term of 10 years. The FHLBNY may further restrict the term of borrowings by the Company due to changes in an internal FHLBNY credit rating of the Company that is based on financial strength ratings and RBC ratio. Currently there are no restrictions on the term of borrowings from the FHLBNY. All FHLBNY stock purchased by the Company is classified as restricted general account investments within "Other invested assets" and the carrying value of these investments was $141 million and $142 million as of December 31, 2025 and 2024, respectively.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

NJDOBI permits the Company to pledge collateral to the FHLBNY in an amount of up to 5% of its prior year-end statutory net admitted assets, excluding separate account assets. Based on the Company's statutory net admitted assets as of December 31, 2024, the 5% limitation equates to a maximum amount of pledged assets of $7.5 billion and an estimated maximum borrowing capacity (after taking into account required collateralization levels) of approximately $6.0 billion. Nevertheless, FHLBNY borrowings are subject to the FHLBNY's discretion and to the availability of qualifying assets at the Company. As of December 31, 2025, $2.6 billion of funding agreements remain outstanding under this facility with an original maturity of seven years and rates from 1.925% to 4.510%.

The Company had pledged assets with a fair value of $3.7 billion and $3.6 billion supporting aggregate outstanding collateralized advances and collateralized funding agreements for December 31, 2025 and 2024, respectively. Outstanding funding agreements, totaling $2.6 billion are included in "Deposit-type contracts" as of both December 31, 2025 and 2024. The fair value of qualifying assets that were available to the Company but not pledged amounted to $0.3 billion and $0.2 billion as of December 31, 2025 and 2024, respectively.

**FHLBNY Capital Stock**

Aggregate Totals:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Debt Name** | **December 31, 2025** | **December 31, 2024** |
| | **(in millions)** | **(in millions)** |
| &nbsp;&nbsp;Membership Stock - Class A | $— | $— |
| &nbsp;&nbsp;Membership Stock - Class B | 23 | 24 |
| &nbsp;&nbsp;Activity Stock | 118 | 118 |
| &nbsp;&nbsp;Excess Stock |  |  |
| &nbsp;&nbsp;**Aggregate Total**  | $141 | $142 |
| &nbsp;&nbsp;**Actual or estimated Borrowing Capacity as Determined by the Insurer**  | $5994 | $5928 |

---

Membership Stock (Class A and B) Eligible and Not Eligible for Redemption:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Membership Stock** | **Current Year** | **Not eligible for redemption** | **Eligible for Redemption** | **Eligible for Redemption** | **Eligible for Redemption** | **Eligible for Redemption** |
| **Membership Stock** | **Current Year** | **Not eligible for redemption** | **Less than 6 months** | **6 months to less than 1 year** | **1 to less than 3 years** | **3 to 5 years** |
| Class A | $— | $— | $— | $— | $— | $— |
| Class B | 23 |  | 23 |  |  |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Membership Stock** | **Current Year** | **Not eligible for redemption** | **Eligible for Redemption** | **Eligible for Redemption** | **Eligible for Redemption** | **Eligible for Redemption** |
| **Membership Stock** | **Current Year** | **Not eligible for redemption** | **Less than 6 months** | **6 months to less than 1 year** | **1 to less than 3 years** | **3 to 5 years** |
| Class A | $— | $— | $— | $— | $— | $— |
| Class B | 24 |  | 24 |  |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;**Collateral Pledged to FHLBNY**

Amount Pledged:

---

| | | | |
|:---|:---|:---|:---|
| | **Fair Value** | **Carrying Value** | **Aggregate Total Borrowing** |
| | **(in millions)** | **(in millions)** | **(in millions)** |
| Total Collateral Pledged as of 12/31/2025 | $3695 | $2776 | $2619 |
| Total Collateral Pledged as of 12/31/2024 | $3583 | $2878 | $2619 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

Maximum Amount Pledged:

---

| | | | |
|:---|:---|:---|:---|
| | **Fair Value** | **Carrying Value** | **Amount Borrowed at Time of Maximum Collateral** |
| | **(in millions)** | **(in millions)** | **(in millions)** |
| Total Collateral Pledged as of 12/31/2025 | $3695 | $2776 | $2619 |
| Total Collateral Pledged as of 12/31/2024 | $3583 | $2878 | $2619 |

---

**Borrowing from FHLBNY**

Amount as of the dates indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| | **Total** | **Funding Agreements Reserves Established** | **Total** | **Funding Agreements Reserves Established** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Debt | $— |  | $— |  |
| Funding Agreements | 2619 | 2628 | 2619 | 2628 |
| Other |  |  |  |  |
| **Aggregate Total**  | $2619 | $2628 | $2619 | $2628 |

---

Maximum Amount during period ended December 31, 2025:

---

| | |
|:---|:---|
| | **Total** |
| | **(in millions)** |
| Debt | $— |
| Funding Agreements | 2619 |
| Other |  |
| **Aggregate Total**  | $2619 |

---

FHLBNY - Prepayment Obligations as of December 31, 2025:

---

| | |
|:---|:---|
| | **Does the Company have prepayment obligations under the following arrangements (Y/N)** |
| Debt | N |
| Funding Agreements | N |
| Other | N |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**12.&nbsp;&nbsp;&nbsp;&nbsp;RETIREMENT PLANS, DEFERRED COMPENSATION, POSTEMPLOYMENT BENEFITS AND COMPENSATED ABSENCES AND OTHER POSTRETIREMENT PLANS** 

**12A.**&nbsp;&nbsp;&nbsp;&nbsp;The Company has funded and non-funded non-contributory defined benefit pension plans ("Pension Benefits"), which cover substantially all of its employees. For some employees, benefits are based on final average earnings and length of service (the "traditional formula"), while benefits for other employees are based on an account balance that takes into consideration age, length of service and earnings during their career (the "cash balance formula"). At December 31, 2025, approximately 90% of the Company's Pension Benefits relate to its domestic qualified pension plan, which initially determined benefits based on the traditional formula. Effective January 1, 2001, active domestic employees covered under this plan were given the option to convert from the traditional formula to the cash balance formula, and all new domestic employees began accruing benefits under the cash balance formula. As of December 31, 2025, approximately 64% and 36% of the benefit obligation under this plan relates to participants under the traditional formula (including all retirees who are receiving an annuity payment) and cash balance formula, respectively. At December 31, 2025, the vast majority of active employees under this plan are accruing benefits under the cash balance formula.

The Company provides certain health care and life insurance benefits for its retired employees, their beneficiaries and covered dependents ("Other Postretirement Benefits"). The health care plan is contributory; the life insurance plan is non-contributory. Substantially all of the Company's U.S. employees are eligible to receive Other Postretirement Benefits if they retire after age 55 with at least 10 years of service or under certain circumstances after age 50 with at least 20 years of continuous service.

The Company modified the Retiree Medical Savings Account ("RMSA") program, one of the components of Other Postretirement Benefits, in 2022. The RMSA program is no longer offered to employees hired or rehired on or after January 1, 2022, while active employees no longer receive service credits after September 1, 2022 and retirees no longer receive interest credits after December 31, 2022. In addition, effective January 1, 2023, the Company expanded the permitted uses of the RMSA by retirees and added a 25-year time limit for retirees to utilize the RMSA.

A summary of asset, obligations, and assumptions of the Pension and Other Postretirement Benefit Plans are as follows:

**(1) &nbsp;&nbsp;&nbsp;&nbsp;Change in Benefit Obligation:**

**Pension Benefits:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Overfunded** | **Overfunded** | **Underfunded** | **Underfunded** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Benefit obligation at the beginning of year | $(8615) | $(9000) | $(911) | $(943) |
| Service cost | (129) | (141) | (16) | (22) |
| Interest cost | (483) | (465) | (52) | (49) |
| Contributions by plan participants |  |  |  |  |
| Actuarial gain (loss) | (277) | 299 | (108) | 14 |
| Foreign currency exchange rate changes |  |  |  |  |
| Benefits paid | 747 | 692 | 83 | 90 |
| Plan amendments | (6) |  | (1) |  |
| Business combinations, divestitures, curtailment, settlements and special termination benefits |  |  |  | (1) |
| **Benefit obligation at end of year**  | $(8763) | $(8615) | $(1005) | $(911) |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Postretirement Benefits:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Overfunded** | **Overfunded** | **Underfunded** | **Underfunded** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| &nbsp;&nbsp;Benefit obligation at the beginning of year | $(960) | $(966) | $(6) | $(7) |
| &nbsp;&nbsp;Service cost | (3) | (4) |  |  |
| &nbsp;&nbsp;Interest cost | (52) | (47) |  |  |
| &nbsp;&nbsp;Contributions by plan participants | (18) | (20) |  |  |
| &nbsp;&nbsp;Actuarial gain (loss) | (31) | (34) |  |  |
| &nbsp;&nbsp;Foreign currency exchange rate changes |  |  | (1) |  |
| &nbsp;&nbsp;Benefits paid | 107 | 111 | 1 | 1 |
| &nbsp;&nbsp;Plan amendments |  |  |  |  |
| &nbsp;&nbsp;Business combinations, divestitures, curtailment, settlements and special termination benefits |  |  |  |  |
| &nbsp;&nbsp;**Benefit obligation at end of year**  | $(957) | $(960) | $(6) | $(6) |

---

**Special or Contractual Benefits Per SSAP No. 11:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Overfunded** | **Overfunded** | **Underfunded** | **Underfunded** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| &nbsp;&nbsp;Benefit obligation at the beginning of year | $— | $— | $(42) | $(42) |
| &nbsp;&nbsp;Service cost |  |  | (44) | (45) |
| &nbsp;&nbsp;Interest cost |  |  | (2) | (2) |
| &nbsp;&nbsp;Contributions by plan participants |  |  | (14) | (10) |
| &nbsp;&nbsp;Actuarial gain (loss) |  |  | (8) | 4 |
| &nbsp;&nbsp;Foreign currency exchange rate changes |  |  |  |  |
| &nbsp;&nbsp;Benefits paid |  |  | 70 | 53 |
| &nbsp;&nbsp;Plan amendments |  |  |  |  |
| &nbsp;&nbsp;Business combinations, divestitures, curtailment, settlements and special termination benefits |  |  |  |  |
| &nbsp;&nbsp;**Benefit obligation at end of year**  | $— | $— | $(40) | $(42) |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**(2)&nbsp;&nbsp;&nbsp;&nbsp;Change in Plan Assets:**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Pension Benefits** | **Pension Benefits** | **Postretirement Benefits** | **Postretirement Benefits** | **Special or Contractual Benefits Per SSAP No. 11** | **Special or Contractual Benefits Per SSAP No. 11** |
| | **2025** | **2024** | **2025** | **2024** | **2025** | **2024** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Fair value of plan assets at the beginning of year | $11983 | $12301 | $1135 | $1138 | $17 | $18 |
| Actual return on plan assets | 935 | 374 | 129 | 84 | 1 | 1 |
| Foreign currency exchange rate changes |  |  |  |  |  |  |
| Reporting entity contribution | 83 | 90 | 6 | 4 | 54 | 40 |
| Plan participants' contributions |  |  | 18 | 20 | 14 | 11 |
| Benefits paid | (830) | (782) | (108) | (111) | (70) | (53) |
| Business combinations, divestitures, settlements |  |  |  |  |  |  |
| **Fair value of plan assets at the end of year**  | $12171 | $11983 | $1180 | $1135 | $16 | $17 |

---

**(3)&nbsp;&nbsp;&nbsp;&nbsp;Funded status:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Pension Benefits** | **Pension Benefits** | **Postretirement Benefits** | **Postretirement Benefits** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| &nbsp;&nbsp;Components |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid benefit costs | $6185 | $6099 | $255 | $185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overfunded plan assets | (2776) | (2730) | (32) | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued benefit cost | (1228) | (1244) | (5) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liability for benefits | 223 | 333 | (1) |  |
| &nbsp;&nbsp;Assets and liabilities recognized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets (nonadmitted) | 3408 | 3368 | 223 | 174 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities recognized | (1005) | (911) | (6) | (6) |
| &nbsp;&nbsp;Unrecognized liabilities |  |  |  |  |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**(4)&nbsp;&nbsp;&nbsp;&nbsp;Net periodic benefit cost included in "Other expenses (benefits)" in the Company's Statements of Operations and Changes in Capital and Surplus for the period ended December 31 includes the following components:** 

**Components of net periodic benefit cost:**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Pension Benefits** | **Pension Benefits** | **Pension Benefits** | **Postretirement Benefits** | **Postretirement Benefits** | **Postretirement Benefits** | **Special or Contractual Benefits Per SSAP No. 11** | **Special or Contractual Benefits Per SSAP No. 11** | **Special or Contractual Benefits Per SSAP No. 11** |
| | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Service cost | $146 | $163 | $155 | $3 | $4 | $7 | $44 | $45 | $43 |
| Interest cost | 536 | 514 | 519 | 52 | 48 | 69 | 2 | 2 | 2 |
| Expected return on plan assets | (921) | (891) | (890) | (70) | (73) | (84) | (1) | (1) | (1) |
| Transition asset or obligation |  |  |  |  |  |  |  |  |  |
| Gains and losses | 215 | 223 | 159 | 14 | 11 | 13 | 8 | (4) | (10) |
| Prior service cost or credit | 5 | 5 | 5 | (65) | (65) | (6) |  |  |  |
| Gain or loss recognized due to a settlement or curtailment |  | 1 | 25 |  |  | 5 |  |  |  |
| **Total net periodic benefit cost**  | $(19) | $15 | $(27) | $(66) | $(75) | $4 | $53 | $42 | $34 |

---

**(5)&nbsp;&nbsp;&nbsp;&nbsp;Amounts in unassigned surplus recognized as components of net periodic benefit cost:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Pension Benefits** | **Pension Benefits** | **Postretirement Benefits** | **Postretirement Benefits** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Items not yet recognized as a component of net periodic benefit cost - prior year | $2905 | $2928 | $(11) | $(87) |
| Net transition asset or obligation recognized |  |  |  |  |
| Net prior service cost or credit arising during period | 6 |  |  |  |
| Net prior service cost or credit recognized | (5) | (5) | 65 | 65 |
| Net gain and loss arising during period | 370 | 205 | (28) | 22 |
| Net gain and loss recognized | (215) | (223) | (14) | (11) |
| **Items not yet recognized as a component of net periodic benefit cost - current year**  | $3061 | $2905 | $12 | $(11) |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**(6)**&nbsp;&nbsp;&nbsp;&nbsp;**Amounts in unassigned surplus that have not yet been recognized as components of net periodic benefit cost:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Pension Benefits** | **Pension Benefits** | **Postretirement Benefits** | **Postretirement Benefits** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Net prior service cost or credit | $50 | $49 | $(203) | $(268) |
| Net recognized gains and losses | 3011 | 2856 | 215 | 257 |

---

**(7)&nbsp;&nbsp;&nbsp;&nbsp;On a weighted-average basis, the following assumptions are used in accounting for the pension plans:**

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| **Weighted-average assumptions used to determine net periodic** |  |  |  |
| **benefit cost as of December 31, 2025, 2024 and 2023:** |  |  |  |
| Discount rate | 5.85% | 5.30% | 5.45% |
| Expected long-term rate of return on plan assets | 8.00% | 7.50% | 7.50% |
| Rate of compensation increase | 6.25% | 6.25% | 4.50% |
| Interest crediting rate | 4.35% | 4.95% | 4.25% |
| **Weighted-average assumptions used to determine projected benefit obligations as of December 31, 2025, 2024 and 2023:** |  |  |  |
| Discount rate | 5.55% | 5.85% | 5.30% |
| Rate of compensation increase | 6.25% | 6.25% | 6.25% |
| Interest crediting rate | 4.85% | 4.35% | 4.95% |

---

On a weighted-average basis, the following assumptions are used in accounting for the postretirement plans:

The weighted-average assumptions used to determine net periodic benefit cost as of December 31, 2025, 2024 and 2023 are discount rates of 5.70%, 5.20% and 5.55%, respectively, and expected long-term rate of return on plan assets of 6.50%, 6.75% and 7.75%, respectively.

The weighted-average assumptions used to determine accumulated postretirement benefit obligation as of December 31, 2025, 2024 and 2023 are discount rates of 5.25%, 5.70% and 5.20%, respectively.

**(8)**&nbsp;&nbsp;&nbsp;&nbsp;The amount of the accumulated benefit obligation for defined benefit pension plans as of December 31, 2025 and 2024, was $8,949 million and $8,834 million, respectively.

**(9)**&nbsp;&nbsp;&nbsp;&nbsp;For postretirement benefits other than pensions, the assumed health care cost trend rate(s) used to measure the expected cost of benefits covered by the plan are:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| Health care cost trend rates | 7.90% | 7.35% | 6.50% |
| Ultimate health care cost trend rate after gradual decrease until 2035 | 4.75% | 4.75% | 4.75% |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**(10)**&nbsp;&nbsp;&nbsp;&nbsp;The expected future benefit payments for the Company's domestic pension and postretirement plans for the years indicated are as follows:

---

| | |
|:---|:---|
| **<u>Years</u>** | **Amount** |
| | **(in millions)** |
| 2026 | $1043 |
| 2027 | 900 |
| 2028 | 916 |
| 2029 | 941 |
| 2030 | 969 |
| 2031-2035 | 4614 |

---

**(11)**&nbsp;&nbsp;&nbsp;&nbsp;The Company anticipates that it will make cash contributions in 2026 of $75 million, $5 million and $40 million to the pension, postretirement and the postemployment plans, respectively.

**(12)**&nbsp;&nbsp;&nbsp;&nbsp;There were no purchases of annuity contracts in 2025 or 2024.

**(13)**&nbsp;&nbsp;&nbsp;&nbsp; Not applicable. The Company does not use an alternative method to amortize prior service amounts or net gains and losses.

**(14)**&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.

**(15)** For 2025 and 2024, certain employees were provided special termination benefits under non-qualified plans in the form of unreduced early retirement benefits as a result of their involuntary termination. For 2023, certain employees were provided special termination benefits under non-qualified plans in the form of unreduced early retirement benefits as a result of their involuntary termination while others were provided enhanced benefits due to the Company's organizational restructuring. The cost associated with these benefits for 2025, 2024 and 2023 was $0 million, $1 million and $30 million, respectively.

**(16)**&nbsp;&nbsp;&nbsp;&nbsp;There were pension plan amendments of ($6) million and $0 million in 2025 and 2024, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;There were no postretirement plan amendments in 2025 and 2024, respectively.

**(17)**&nbsp;&nbsp;&nbsp;&nbsp;Refer to Funded Status disclosure in Note 12A(3).

**12B.**&nbsp;&nbsp;&nbsp;&nbsp;The plan fiduciaries for the Company's pension and postretirement plans have developed guidelines for asset allocations reflecting a percentage of total assets by asset class, which are reviewed on an annual basis. Asset allocation targets as of December 31, 2025 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Pension Investment** | **Pension Investment** | **Postretirement Investment** | **Postretirement Investment** |
| | **Policy Guidelines** | **Policy Guidelines** | **Policy Guidelines** | **Policy Guidelines** |
| | **2025** | **2025** | **2025** | **2025** |
| | **Minimum** | **Maximum** | **Minimum** | **Maximum** |
| **Asset category** |  |  |  |  |
| U.S. Stocks | 0% | 3% | 12% | 32% |
| International Stocks | 0% | 8% | 3% | 22% |
| Bonds | 50% | 70% | 6% | 72% |
| Short-Term Investments | 0% | 11% | 0% | 26% |
| Real Estate | 3% | 17% | 0% | 0% |
| Other | 8% | 41% | 0% | 0% |

---

The investment goal of the domestic pension plan assets is to generate an above benchmark return on a diversified portfolio of stocks, bonds and other investments. The cash requirements of the pension obligation, which include a traditional formula principally representing payments to annuitants and a cash balance formula that allows lump sum payments and annuity payments, are designed to be met by the bonds and short-term investments in the portfolio.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The investment goal of the domestic postretirement plan assets is to generate an above benchmark return on a diversified portfolio of stocks, bonds, and other investments, while meeting the cash requirements for the postretirement obligation that includes a medical benefit including prescription drugs, a dental benefit, and a life benefit.

The pension and postretirement plans risk management practices include guidelines for asset concentration, credit rating, liquidity and tax efficiency. The fiduciaries of the pension and postretirement plans select investment managers to invest the assets of the plans consistent with each manager's investment mandate. These managers may use derivatives such as futures contracts to reduce transaction costs and change asset concentration and may use interest rate swaps and futures to adjust duration.

To implement the investment strategy, plan assets are invested in funds that primarily invest in securities that correspond to one of the asset categories under the investment guidelines. However, at any point in time, some of the assets in a fund may be of a different nature than the specified asset category.

Assets held with the Company are in either pooled separate accounts or single client separate accounts. Assets held with a bank are either in common/collective trusts or single client trusts. Pooled separate accounts and common/collective trusts hold assets for multiple investors. Each investor owns a "unit of account." The asset allocation targets above include the underlying asset mix in the Pooled Separate Accounts and Common/Collective Trusts. Single client separate accounts or trusts hold assets for only one investor, the domestic qualified pension plan, and each security in the fund is treated as individually owned.

There were no investments in Prudential Financial Common Stock as of December 31, 2025 and 2024 for either the pension or postretirement plans.

The authoritative guidance around fair value established a framework for measuring fair value. Fair value is disclosed using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value, as described in Note 20.

The following describes the valuation methodologies used for pension and postretirement plans assets measured at fair value.

*Insurance Company Pooled Separate Accounts and Common or Collective Trusts* – Insurance company pooled separate accounts are invested via group annuity contracts issued by the Company. Assets are represented by a "unit of account." The redemption value of those units is based on a per unit value whose value is the result of the accumulated values of underlying investments. The unit of account value is used as a practical expedient to estimate fair value.

*Equities -* See Note 20, Fair value of assets and liabilities, for a discussion of the valuation methodologies for equity securities.

*U.S. Government Securities (both Federal and State & Other), Non–U.S. Government Securities, and Corporate Debt -* See Note 20, Fair value of assets and liabilities, for a discussion of the valuation methodologies for fixed maturity securities.

*Interest Rate Swaps -* See Note 20, Fair value of assets and liabilities, for a discussion of the valuation methodologies for derivative instruments.

*Registered Investment Companies (Mutual Funds) -* Securities are priced at the net asset values ("NAV"), which is the closing price published by the registered investment company on the reporting date.

*Short-term Investments -* Securities are valued initially at cost and thereafter adjusted for amortization of any discount or premium (i.e., amortized cost). Amortized cost approximates fair value.

*Partnerships -* The value of interests owned in partnerships is based on valuations of the underlying investments that include private placements, structured debt, real estate, equities, fixed maturities, commodities and other investments.

*Hedge Funds -* The value of interests in hedge funds is based on the underlying investments that include equities, debt and other investments.

*Variable Life Insurance Policies -* These assets are held in group and individual variable life insurance policies issued by the Company. Group policies are invested in Insurance Company Pooled Separate Accounts. Individual policies are invested in Registered Investment Companies (Mutual Funds). The value of interest in these policies is the cash surrender value of the policies based on the underlying investments. The variable life insurance policies are valued at contract value which approximates fair value.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**12C.**

**(1)&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Measurements of Pension Plan Assets as of December 31, 2025:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Bonds:** | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government securities (federal): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage-backed | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp; Other U.S. government securities |  | 919 |  | 919 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government securities (state & other) |  | 259 |  | 259 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non U.S. government securities |  | 22 |  | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate Debt: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds |  | 2021 | 10 | 2031 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset-backed |  | 486 |  | 486 |
| &nbsp;&nbsp;&nbsp;&nbsp;Collateralized mortgage obligations |  | 304 |  | 304 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps (1) |  | 24 |  | 24 |
| &nbsp;&nbsp;&nbsp;Registered investment companies | 21 |  |  | 21 |
| &nbsp;&nbsp;&nbsp;Common stock | 8 |  |  | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (2) | 23 |  | 13 | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Subtotal-Bonds**  | 52 | 4035 | 23 | 4110 |
| **Net assets in the fair value hierarchy**  | $52 | $4035 | $23 | $4110 |
| Investments Measured at Net Asset Value, as a practical expedient (3) |  |  |  |  |
| Partnerships | Partnerships | Partnerships | Partnerships | 3258 |
| Pooled separate accounts | Pooled separate accounts | Pooled separate accounts | Pooled separate accounts | 2259 |
| Hedge funds | Hedge funds | Hedge funds | Hedge funds | 1648 |
| Common/collective trusts | Common/collective trusts | Common/collective trusts | Common/collective trusts | 896 |
| **Net assets at fair value**  | **Net assets at fair value**  | **Net assets at fair value**  | **Net assets at fair value**  | $12171 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Fair Value Measurements of Pension Plan Assets as of December 31, 2024:** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Bonds:** | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government securities (federal): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage-backed | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp; Other U.S. government securities |  | 918 |  | 918 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government securities (state & other) |  | 273 |  | 273 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non U.S. government securities |  | 14 |  | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate Debt: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds |  | 1904 | 6 | 1910 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset-backed |  | 560 |  | 560 |
| &nbsp;&nbsp;&nbsp;&nbsp;Collateralized mortgage obligations |  | 453 |  | 453 |
| &nbsp;&nbsp;&nbsp;&nbsp;Collateralized loan obligation |  | 23 |  | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps (1) |  | (11) |  | (11) |
| &nbsp;&nbsp;&nbsp;Registered investment companies | 44 |  |  | 44 |
| &nbsp;&nbsp;&nbsp;Common Stock | 20 |  |  | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (2) | 22 | 1 | 30 | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Subtotal-Bonds**  | 86 | 4135 | 36 | 4257 |
| **Net assets in the fair value hierarchy**  | $86 | $4135 | $36 | $4257 |
| Investments Measured at Net Asset Value, as a practical expedient (3) |  |  |  |  |
| Partnerships | Partnerships | Partnerships | Partnerships | 3206 |
| Pooled separate accounts | Pooled separate accounts | Pooled separate accounts | Pooled separate accounts | 2078 |
| Hedge funds | Hedge funds | Hedge funds | Hedge funds | 1685 |
| Common/collective trusts | Common/collective trusts | Common/collective trusts | Common/collective trusts | 756 |
| **Net assets at fair value**  | **Net assets at fair value**  | **Net assets at fair value**  | **Net assets at fair value**  | $11982 |

---

1. Interest rate swaps notional amount is $1,221 million and $1,227 million as of December 31, 2025 and 2024, respectively.

2. This category primarily consists of cash and cash equivalents, short term investments, payables and receivables and open future contract positions (including fixed income collateral).

3. The pension plan excludes from the fair value hierarchy investments that are measured at NAV per share (or its equivalent) as a practical expedient to estimate fair value U.S. equities totaled $54 million and $37 million at December 31, 2025 and 2024, respectively. International equities totaled $141 million and $156 million at December 31, 2025 and 2024, respectively. Fixed maturities totaled $2,306 million and $2,077 million at December 31, 2025 and 2024, respectively. Short-term investments totaled $143 million and $55 million at December 31, 2025 and 2024, respectively. Real estate totaled $511 million and $510 million at December 31, 2025 and 2024, respectively.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**(2)&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Measurements of Postretirement Plan Assets as of December 31, 2025:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Short Term Investments:** | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Registered investment companies | $74 | $— | $— | $74 |
| **Net assets in the fair value hierarchy**  | $74 | $— | $— | $74 |
| Investments Measured at Net Asset Value, as a practical expedient (1) |  |  |  |  |
| Common/collective trusts | Common/collective trusts | Common/collective trusts | Common/collective trusts | 149 |
| **Net assets at fair value**  | **Net assets at fair value**  | **Net assets at fair value**  | **Net assets at fair value**  | 223 |
| Variable life insurance policies at contract value | Variable life insurance policies at contract value | Variable life insurance policies at contract value | Variable life insurance policies at contract value | 957 |
| **Total net assets**  | **Total net assets**  | **Total net assets**  | **Total net assets**  | $1180 |

---

**Fair Value Measurements of Postretirement Plan Assets as of December 31, 2024:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Short Term Investments:** | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Registered investment companies | $44 | $— | $— | $44 |
| **Net assets in the fair value hierarchy**  | $44 | $— | $— | $44 |
| Investments Measured at Net Asset Value, as a practical expedient (1) |  |  |  |  |
| Common/collective trusts | Common/collective trusts | Common/collective trusts | Common/collective trusts | 148 |
| **Net assets at fair value**  | **Net assets at fair value**  | **Net assets at fair value**  | **Net assets at fair value**  | 192 |
| Variable life insurance policies at contract value | Variable life insurance policies at contract value | Variable life insurance policies at contract value | Variable life insurance policies at contract value | 943 |
| **Total net assets**  | **Total net assets**  | **Total net assets**  | **Total net assets**  | $1135 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The postretirement plan excludes from the fair value hierarchy investments that are measured at NAV per share (or its equivalent) as a practical expedient to estimate fair value and Variable Life Insurance Policies valued at contract value. U.S. equities totaled $215 million and $192 million at December 31, 2025 and 2024, respectively. International equities totaled $119 million and $99 million at December 31, 2025 and 2024, respectively. Fixed maturities totaled $623 million and $652 million at December 31, 2025 and 2024, respectively.

**12D.&nbsp;&nbsp;&nbsp;&nbsp;**The domestic discount rate used to value the pension and postretirement obligations at December 31, 2025 and 2024 is based upon the value of a portfolio of Aa-rated investments whose cash flows would be available to pay the benefit obligation's cash flows when due. The portfolio is selected from a compilation of approximately 980 Aa-rated bonds across the full range of maturities. Since bond ratings and yields can vary widely at each maturity point, the Company uses an average bond rating and excludes bonds with unusually high or low yields, so as to avoid relying on bonds that might be mispriced or misrated. The Aa-rated portfolio is then selected and, accordingly, its value is a measure of the benefit obligation. A single equivalent discount rate is calculated to equate the value of the Aa-rated portfolio to the cash flows for the benefit obligation. The result is rounded to the nearest 5 basis points and the benefit obligation is recalculated using the rounded discount rate.

The pension and postretirement expected long-term rates of return on plan assets for 2025 were determined based upon an approach that considered the allocation of plan assets as of December 31, 2024. Expected returns are estimated by asset class as noted in the discussion of investment policies and strategies below. Expected returns on asset classes are developed using a building-block approach that is forward looking and are not strictly based upon historical returns. The building blocks for equity returns include inflation, real return, a term premium, an equity risk premium, capital appreciation, expenses, the effect of active management and the effect of rebalancing.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The building blocks for fixed maturity returns include inflation, real return, a term premium, credit spread, capital appreciation, effect of active management, expenses and the effect of rebalancing.

The Company applied the same approach to the determination of the expected rate of return on plan assets in 2026. The expected rate of return for 2026 is 7.75% and 6.25% for pension and postretirement, respectively.

**12E.**&nbsp;&nbsp;&nbsp;&nbsp;The Company sponsors voluntary savings plans for employees (401(k) plans). The plans provide for salary reduction contributions by employees and matching contributions/(benefits) by the Company of up to 4% of annual salary for 2025, 2024 and 2023. The matching contributions by the Company included in "Other expenses (benefits)" are $84 million, $87 million and $79 million for 2025, 2024 and 2023, respectively.

**12F.&nbsp;&nbsp;&nbsp;&nbsp;**Not applicable. The Company does not participate in multiemployer pension or postretirement benefit plans.

**12G.&nbsp;&nbsp;&nbsp;&nbsp;**Not applicable. The Company does not participate in pension or postretirement benefit plans sponsored by an affiliated consolidated/holding company.

**12H. &nbsp;&nbsp;&nbsp;&nbsp;**Postretirement benefits are accounted for in accordance with prescribed NAIC policy.

**12I.&nbsp;&nbsp;&nbsp;&nbsp;**The Impact of Medicare Modernization Act on Postretirement Benefits is not applicable.

Disclosure of Gross Other Postretirement Benefit Payments:

---

| | |
|:---|:---|
| **<u>Years</u>** | **Other<br>Postretirement Benefits** |
| | **(in millions)** |
| 2026 | $91 |
| 2027 | 94 |
| 2028 | 97 |
| 2029 | 103 |
| 2030 | 105 |
| 2031-2035 | 450 |
| **Total**  | $940 |

---

**12J.&nbsp;&nbsp;&nbsp;&nbsp;Share Based Payments**

Employees participate in share-based payment awards sponsored by Prudential Financial Inc. for which the Company has no legal obligation. Prudential Financial Inc. issued stock-based compensation awards to employees of the Company, including restricted stock units and performance shares under a plan authorized by Prudential Financial Inc.'s Board of Directors.

Prudential Financial Inc. recognizes the cost resulting from all share-based payments in the financial statements in accordance with the authoritative guidance on accounting for stock-based compensation and applies the fair value based measurement method in accounting for share-based payment transactions with employees except for equity instruments held by employee share ownership plans.

The results of operations of the Company for the years ended December 31, 2025, 2024 and 2023, include allocated costs of $91 million, $113 million and $104 million, respectively, associated with employee restricted stock units and performance shares issued by Prudential Financial to certain employees of the Company.

**13.&nbsp;&nbsp;&nbsp;&nbsp;CAPITAL AND SURPLUS, SHAREHOLDERS' DIVIDENDS RESTRICTIONS AND QUASI-REORGANIZATIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (A)&nbsp;&nbsp;&nbsp;&nbsp;The Company has 500,000 shares authorized, issued, and outstanding with a total par value of $2.5 million at December 31, 2025. All outstanding shares of the Company's common stock are held by Prudential Financial, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (B)&nbsp;&nbsp;&nbsp;&nbsp;New Jersey insurance law provides that dividends or distributions may be declared or paid by the Company without prior regulatory approval only from unassigned surplus, as determined pursuant to statutory accounting principles, less unrealized capital gains and certain other adjustments. In addition, the Company must obtain approval from the New Jersey insurance regulator prior to paying a dividend if the dividend, together with other dividends or distributions made within the preceding twelve months, will exceed greater than 10% of the Company's surplus or net gain from operations as of the preceding

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

December 31. As of December 31, 2025, the Company's statutory surplus was $15,909 million. For the year ended, December 31, 2025, the Company's net gain from operations was $1,848 million.

In February 2026, the Company received approval from the Department to record a $300 million payable as of December 31, 2025, for a capital contribution to its insurance subsidiary, PLAZ. The capital contribution was received by PLAZ prior to March 1, 2026.

In December 2025, the Company paid a dividend of $600 million to its parent, PFI, of which $295 million was an extraordinary dividend and $305 million was an ordinary dividend. The dividend was recorded as a dividend to stockholders. The extraordinary dividend was approved by the State of New Jersey.

In the fourth quarter of 2025, the Company made a capital contribution of $400 million to its insurance subsidiary, Pruco Life.

In 2025, the Company received dividends of $32 million from its insurance subsidiary, PLIC.

In 2025, the Company received a $63 million capital contribution from its parent PFI, in the form of state tax credits. The Company, in turn, contributed $25 million of state tax credits to its insurance subsidiary, PLAZ.

In September 2025, the Company paid an ordinary dividend of $374 million to its parent, PFI. The dividend was recorded as

dividend to stockholders.

In June 2025, the Company made a capital contribution of $208 million to its insurance subsidiary, PLAZ, in the form of invested assets.

In March 2025, the Company received a capital contribution of $6 million from its parent PFI.

In February 2025, the Company received approval from the Department to record a $220 million payable as of December 31, 2024, for a capital contribution to its insurance subsidiary, PLAZ. The capital contribution was received by PLAZ prior to March 1, 2025.

In 2024, the Company received dividends of $16 million from its insurance subsidiary, PLIC.

In December 2024, the Company received a capital contribution of $2,000 million from its parent, PFI, which in turn was passed through to the captives.

In December 2024, the Company made a capital contribution of $416 million to its insurance subsidiary, PLAZ, in the form of invested assets.

In December 2024, the Company received a capital contribution of $21 million from its parent, PFI.

In December 2024, the Company paid a dividend of $900 million to its parent, PFI, of which $822 million was an extraordinary dividend and $78 million was an ordinary dividend. The dividend was recorded as dividend to stockholders. The extraordinary dividend was approved by the State of New Jersey.

In September 2024, the Company received a capital contribution of $107 million from its parent, PFI.

In June 2024, the Company received a $550 million return of capital from its insurance subsidiary, PLAZ.

In June 2024, the Company paid an extraordinary dividend of $400 million to its parent, PFI. The dividend was recorded as dividend to stockholders.

In March 2024, the Company received a capital contribution of $796 million from its parent, PFI, which in turn was passed through to a captive.

In March 2024, the Company paid an extraordinary dividend of $250 million to its parent, PFI. The dividend was recorded as dividend to stockholders.

In 2023, the Company received dividends of $62 million from its insurance subsidiary, PLIC.

In December 2023, the Company received a $450 million return of capital from its insurance subsidiary, PLAZ.

In December 2023, the Company received a $18 million capital contribution from its parent, PFI, in the form of state tax credits. The Company, in turn, contributed $7 million of state tax credits to its insurance subsidiary, PLAZ.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

In December 2023, the Company received a capital contribution of $200 million from its parent, PFI.

In December 2023, the Company paid an extraordinary dividend of $1,350 million to its parent, PFI. The dividend was recorded as dividend to stockholders.

In September 2023, the Company paid an ordinary dividend of $950 million to its parent, PFI. The dividend was recorded as dividend to stockholders.

In September 2023, the Company received a $650 million return of capital from its insurance subsidiary, PLAZ.

In June 2023, the Company paid an ordinary dividend of $800 million to its parent, PFI. The dividend was recorded as dividend to stockholders.

In June 2023, the Company received a $300 million return of capital from its insurance subsidiary, PLAZ.

In June 2023, the Company received a capital contribution of $370 million from its parent, PFI.

In March 2023, the Company received a capital contribution of $165 million from its parent, PFI.

In February 2023, the Company received approval from the Department to record a $405 million payable as of December 31, 2022, for a capital contribution to its insurance subsidiary, PLAZ. The capital contribution was received by PLAZ prior to March 1, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (C)&nbsp;&nbsp;&nbsp;&nbsp;The portion of profits on participating policies and contracts is limited pursuant to N.J.S.A. 17B:18-46. The limitations would not restrict the Company's ability to pay a dividend.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (D)&nbsp;&nbsp;&nbsp;&nbsp;Unassigned funds are held for the corporate purposes of the Company. In addition, the Company maintains special surplus funds as part of its surplus to meet special requirements of various states.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (E)&nbsp;&nbsp;&nbsp;&nbsp;In conjunction with the adoption of temporary relief on net negative (disallowed) IMR under INT No. 23-01, the Company has admitted $1.2 billion and $1.4 billion in negative IMR as of December 31, 2025 and 2024, respectively on the general account which was recorded as "Special surplus fund" on the Statement of Admitted Assets, Liabilities and Capital and Surplus.

In accordance with the requirements of the various states, a special surplus fund has been established for contingency reserves of $181 million and $185 million as of December 31, 2025 and 2024, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (F)&nbsp;&nbsp;&nbsp;&nbsp;The portion of unassigned funds (surplus) represented by cumulative unrealized gains and losses was $13 million and ($270) million as of December 31, 2025 and 2024, respectively. The portion of unassigned funds (surplus) reduced by nonadmitted assets were $5,925 million and $5,631 million as of December 31, 2025 and 2024, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (G)&nbsp;&nbsp;&nbsp;&nbsp;The following table provides information relating to the outstanding surplus notes as of December 31, 2025:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Item Number** | **Date Issued** | **Interest Rate** | **Original Issue Amount of Note** | **Is Surplus Note Holder a Related Party (Y/N)** | **Carrying Value of Note Prior Year** | **Carrying Value of Note Current Year** | **Unapproved Interest And/Or Principal** |
| **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| 1 | 7/1/1995 | 8.30% | $350 | N | $350 | $— | $— |
| 2 | 12/3/2025 | 5.74% | $170 | Y | $— | $200 | $1 |
| **3** | 12/3/2025 | 5.74% | $87 | Y | $— | $87 | $— |
| **Totals** |  |  | $607 |  | $350 | $287 | $1 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Item Number** | **Current Year Interest Expense Recognized** | **Life to Date Interest Expense Recognized** | **Current Year Interest Offset Percentage (not including amounts paid to a 3rd party liquidity provider)** | **Current Year Principal Paid** | **Life to Date Principal Paid** | **Date of Maturity** |
| **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| 1 | $29 | $874 | —% | $350 | $350 | 7/1/2025 |
| 2 | $1 | $1 | 100% | $— | $— | 12/3/2043 |
| 3 | $— | $— | 100% | $— | $— | 12/3/2043 |
| **Totals** | $30 | $875 |  | $350 | $350 |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Item Number** | **Are Surplus payments contractually linked? (Y/N)** | **Surplus Note payments subject to administrative offsetting provisions? (Y/N)** | **Were Surplus Note proceeds used to purchase an asset directly from the holder of the surplus note? (Y/N)** | **Is Asset Issuer a Related Party (Y/N)** | **Type of Assets Received Upon Issuance** |
| 1 | N | N | N | N | Cash |
| 2 | Y | Y | Y | Y | Credit Linked Note |
| 3 | Y | Y | Y | Y | Credit Linked Note |

---

---

| | | | |
|:---|:---|:---|:---|
| **Item Number** | **Principal Amount of assets received upon issuance** | **Book/Adjusted Carry Value of Assets** | **Is Liquidity Source a Related Party to the Surplus Note Issuer (Y/N)** |
| **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| 1 | $338 | $— | N |
| 2 | $170 | $200 | N |
| 3 | $87 | $87 | N |
| **Totals** | $595 | $287 |  |

---

The surplus notes in the aggregate principal amount of $350 million listed in the table above were distributed pursuant to Rule 144A under the Securities Act of 1933, underwritten by Goldman, Sachs & Co., CS First Boston, Merrill Lynch & Co., J.P. Morgan Securities Inc., and Prudential Securities Incorporated, an affiliate, pursuant to SSAP 25, and are administered by the Company as a registrar/paying agent. Under the agreement with external counterparties, the Company received cash proceeds from qualified institutional investors in exchange for the surplus note.

The surplus notes are subordinate in right of payment to policy claims, prior claims, and senior indebtedness. The surplus notes have the following restrictions on payment. Each payment of principal and interest on the surplus notes may be made only with the prior written approval of the Commissioner, for which approval will only be granted if, in the judgment of the Commissioner, the then current and projected financial condition of the Company warrants such payment. In addition, pursuant to applicable New Jersey law, any payment of principal or interest on the surplus notes may be only out of surplus, earnings, or profits of the Company.If these conditions to payment are not met, the applicable scheduled maturity date or scheduled interest payment date will be extended until such time, if any, at which conditions are met. Interest will continue to accrue on any unpaid principal amount of the surplus notes during the period of any such extension. Interest will not accrue on interest. The surplus notes in the aggregate principal amount of $350 million matured on July 1, 2025.

Effective December 1, 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 affiliate. As of December 31, 2025, $287 million in principal amount of surplus notes were outstanding.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The surplus notes are subordinate in right of payment to policy claims, prior claims, and senior indebtedness. Each payment of principal and interest on the surplus notes may be made only with the prior written approval of the Commissioner, for which approval will only be granted if in the judgment of the Commissioner, the then current and projected financial condition of the Company warrants such payment. In addition, pursuant to applicable New Jersey law, any payment of principal or interest on the surplus notes may be only out of surplus, earnings, or profits of the Company.

Under this transaction, because valid rights of set-off exist, interest payments on the surplus notes and on the credit-linked notes are settled on a net basis. As of December 31, 2025, 100% of interest payments have been offset.

The credit-linked notes received in return for the surplus notes are reported on Schedule D with an NAIC designation of 1. The Company can redeem the principal amount of the outstanding credit-linked notes for cash upon the occurrence of certain liquidity stress events affecting the Company. The book adjusted carrying value of the credit-linked notes was $287 million as of December 31, 2025. Given that the credit-linked notes may be redeemed up to their entire outstanding principal amount upon a liquidity stress event, the carrying value is deemed to approximate the fair value.

Effective January 1, 2015, the Company entered into a reinsurance agreement with Prudential Legacy Insurance Company ("PLIC", "Reinsurer"), in which the Company reinsured substantially all of the outstanding liabilities of the Closed Block into a newly established statutory guaranteed separate account. The following information describes the financing arrangement between the Reinsurer and the external counterparties.

The Reinsurer issued a surplus note in the aggregate principal amount of $100 million on November 20, 2019 pursuant to, and is made subject to the terms of, the Amended and Restated Surplus Note Purchase Agreement, dated August 1, 2019, by and between the Reinsurer, the issuer, and Essex LLC, an affiliate. In March 2020, the Reinsurer executed an increase of outstanding notes by $800 million resulting in cumulative outstanding notes of $900 million. Under the agreement with external counterparties, the Reinsurer received credit-linked notes issued by Essex LLC in exchange for the surplus note. On December 30, 2020, the Reinsurer executed a principal redemption in the amount of $500 million and subsequently executed another principal redemption in the amount of $300 million on March 30, 2021. Under the agreement with external counterparties the Company, the issuer, redeemed credit-linked notes issued by Essex LLC, an affiliate. In December 2022, the Reinsurer executed an increase of outstanding notes by $200 million. Under the agreement with external counterparties, the Reinsurer received a $200 million increase in credit-linked notes issued by Essex LLC in exchange for the increase in surplus notes. In March 2025, the Reinsurer executed an increase of outstanding notes by $200 million. Under the agreement with external counterparties, the Reinsurer received a $200 million increase in credit-linked notes issued by Essex LLC in exchange for the increase in surplus note. As of December 31, 2025, $500 million of these notes remain outstanding. The Reinsurer can redeem the principal amount of the outstanding credit-linked notes for cash upon the occurrence of, and in an amount necessary to remedy, a specified liquidity stress event. Upon such event, the surplus note issuer would monetize the amount of credit-linked notes equal to the amount needed to cure the triggering event which would be provided by external counterparties. At this point, the outstanding principal on the asset would be less than the outstanding principal on the surplus note outstanding. Under the agreements, the external counterparties have agreed to fund any such payments under the credit-linked notes in return for the receipt of fees.

Under these transactions, because valid rights of set-off exist, interest payments on the surplus notes and on the credit-linked notes are settled on a net basis. As of December 31, 2025, 100% of interest payments are offset solely due to administrative offsetting. Administrative offsetting occurs throughout the duration of the surplus note agreement which eliminates or reduces the exchange of cash or assets that would normally occur. As of December 31, 2025, $76 million of interest payments have been remitted.

Assets purchased from the proceeds of the surplus notes were credit-linked notes with an NAIC designation of 1. The book adjusted carrying value of these assets are $500 million as of December 31, 2025. The fair value of the credit-linked notes received is the greater of a liquidity event price, optional prepayment price, or sale price. Given that there is a disposition option under which the credit-linked notes provide liquidity for their full par price, the carrying value is deemed to approximate the fair value.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**14.&nbsp;&nbsp;&nbsp;&nbsp;CONTINGENCIES**

**14A. &nbsp;&nbsp;&nbsp;&nbsp;Contingent Commitments** 

In accordance with SSAP No. 5, "Liabilities, Contingencies and Impairments of Assets" ("SSAP No. 5"), the following provides detailed information regarding each of the Company's guarantee agreements, including the nature of the guarantee, the ultimate impact to the financial statements, the current status of the payment or performance risk, the maximum potential of future payments that could be required, the current carrying value of the liability, and the nature of any recourse provisions. In addition, the table following the descriptions summarizes key information about each guarantee.

1)&nbsp;&nbsp;&nbsp;&nbsp;On March 18, 1982, the Company has entered into a support agreement with Prudential Funding, LLC ("Pru Funding"), a wholly owned, non-insurance subsidiary, pursuant to which the Company has agreed to cause Pru Funding to maintain, at all times, tangible net worth (including subordinated debt) of at least $1. As of December 31, 2025 and 2024, the tangible net worth of Pru Funding was $47 million and $44 million, respectively. There are no recourse provisions that enable recovery from a third party, nor are there any assets held as collateral that can be liquidated to cover amounts paid under the support agreement.

2)&nbsp;&nbsp;&nbsp;&nbsp;On September 14, 2010, the Company entered into a yield maintenance agreement, pursuant to which the Company agreed to provide an unaffiliated third party (a "purchaser") with a minimum rate of return on a portfolio of real estate investments acquired by the purchaser from Washington Street. There is currently no contingent liability recorded as of December 31, 2025, however, the Company continues to assess for any potential exposure. There are no recourse provisions that enable recovery from a third party, nor are there any assets held as collateral that can be liquidated to cover amounts paid under the agreement.

3)&nbsp;&nbsp;&nbsp;&nbsp;On December 13, 2005, the Company entered into a support agreement with Pruco Securities, LLC ("Pruco Securities"), a wholly owned, non-insurance subsidiary, pursuant to which the Company agreed to cause Pruco Securities to maintain, at all times, (A) a minimum net capital equal to the greater of $250 thousand or six and two-thirds percent of aggregate indebtedness and (B) a ratio of aggregate indebtedness to net capital of less than or equal to 15:1; provided that the Company's obligations under the support agreement are limited to an aggregate amount of $10 million. As of December 31, 2025 and 2024, the net capital of Pruco Securities was $45 million and $109 million, respectively. There are no recourse provisions that enable recovery from a third party, nor are there any assets held as collateral that can be liquidated to cover amounts paid under the support agreement.

4)&nbsp;&nbsp;&nbsp;&nbsp;Prudential Assigned Settlement Services Corporation ("PASS Corp"), a wholly owned, non-insurance subsidiary of the Company, participates in the structured settlement annuity market by assuming third party payment obligations to injured parties ("claimants") pursuant to assignment agreements. The Company guarantees the payment obligations of PASS Corp owing to claimants under these assignment agreements. PASS Corp purchases annuity contracts from the Company and uses such annuity contracts to fund its payment obligations under the assignment agreements. The Company has recognized all obligations related to PASS Corp's assignment agreements in its own reserves. There are no current remaining policyholder obligations held by PASS Corp related to assignment agreements. There are no recourse provisions that enable recovery from a third party, nor are there any assets held as collateral that can be liquidated to cover amounts paid under the guarantees.

5)&nbsp;&nbsp;&nbsp;&nbsp;Prudential Structured Settlement Company ("PSSC"), a wholly owned, non-insurance subsidiary of the Company, participates in the structured settlement annuity market by assuming third party payment obligations to claimants pursuant to assignment agreements or by assuming obligations under previously executed assignment agreements. The Company guarantees the payment obligations of PSSC owing to claimants under these assignment agreements. PSSC purchases annuity contracts from the Company and uses such annuity contracts to fund its payment obligations under the assignment agreements. The Company has recognized all obligations related to PSSC's assignment agreements in its own reserves. There are no current remaining obligations held by PSSC related to assignment agreements. There are no recourse provisions that enable recovery from a third party, nor are there any assets held as collateral that can be liquidated to cover amounts paid under the guarantees.

6)&nbsp;&nbsp;&nbsp;&nbsp;The Company's Employee Retirement Income Security Act ("ERISA"), Separate Accounts are managed by the following affiliates: PGIM Holding Company, LLC and each of its subsidiaries (collectively, the "Advisor Affiliates"). Under ERISA guidelines, the Advisor Affiliates are required to obtain a financial performance bond to protect the plan assets from loss due to fraud or dishonesty. In lieu of purchasing an external financial performance bond, the Company has provided a guarantee to the Advisor Affiliates to protect the plan assets from any loss due to fraud or dishonesty. The guarantee creates no additional risk to the Company from loss or fraud since the Company would retain the same risk under ERISA's fiduciary standards.

7) E. 22nd Street SSGA Venture LLC is a directly owned real estate investment of the Company. The Company has issued a guarantee in relation to the acquisition of this real estate investment. The guarantee is issued to the senior mortgage lender, PLAZ. The guarantee relates to events such as fraud or malicious conduct, and indemnification for any environmental claims/

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

losses. The property was sold and the loan was paid in full in October 2024. The Hold Harmless and Indemnity Agreement was satisfied as the loan was paid in full. However, the Environmental and ERISA Indemnity Agreement and Recourse Liabilities Guaranty remains in effect until October 2026. The Company's maximum potential exposure under this guarantee is $225 million.

8)&nbsp;&nbsp;&nbsp;&nbsp;The Company is the sole member of GA JHCII, LLC. GA JHCII, LLC has issued a guarantee in relation to John Hancock Center, a real estate investment directly owned by GA JHCII, LLC. The guarantee is issued to the senior mortgage lenders, JP Morgan Chase. The guarantee relates to events such as fraud or malicious misconduct, and indemnification for any environmental claims/losses. The term of the guarantee coincides with the term of the mortgage, which has a debt maturity of December 20, 2026. The maximum exposure is $1 billion as of December 31, 2025.

9)&nbsp;&nbsp;&nbsp;&nbsp;PLIC, a wholly owned subsidiary of the Company, enters into securities repurchase transactions pursuant to which PLIC transfers securities to third parties and receives cash as collateral, which it invests. The Company guarantees the obligations of PLIC to certain of PLIC's counterparties under these transactions in the event of PLIC's non-performance. The amount of the guarantee is equal to the notional amount of guaranteed transaction, which was $2.4 billion as of December 31, 2025, and there is not a contractual limit on PLIC's repurchase agreement transactions. The guarantee will remain in effect as long as PLIC has outstanding guaranteed obligations.

10)&nbsp;&nbsp;&nbsp;&nbsp;The Company has entered into a joint venture agreement relating to Pramerica Fosun Life Insurance Co., Ltd. (the "Fosun JV") with its joint venture partner setting out their respective rights and obligations with respect to the Fosun JV. Pursuant to the joint venture agreement, the Company and its joint venture partner have agreed to contribute additional capital to the Fosun JV, based on their respective ownership percentages in the Fosun JV, if (i) the Fosun JV's solvency margin ratio falls below the minimum ratio required by applicable law or regulation (or additional capital is otherwise required to comply with applicable laws or regulatory requirements) or a higher ratio agreed upon by the parties or (ii) an increase in the Fosun JV's capital is unanimously agreed upon by the Board of Directors of the Fosun JV. There are no recourse provisions that enable recovery from a third party, nor are there any assets held as collateral that can be liquidated to cover amounts paid under such provisions of the joint venture agreement. The Company does not expect to make any payments on this guarantee and is not carrying any liabilities associated with the guarantee.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **#** | **Guarantees and key attributes** | **Current CV of liability obligations under guarantee (including amount recognized at inception)** | **Financial statement line impacted if action under guarantee required** | **Max amount of future potential guarantee payments (undiscounted)** | **Current status of payment or performance risk of guarantee** |
| **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| 1 | Guarantee that the net worth of Pru Funding is not less than $1.00 | (a) | Other Invested Assets, Page 3 | (b) | No payments required since inception. |
| 2 | Guarantee payments by Washington Street to purchaser based on a minimum rate of return on a portfolio related to real estate | (a) | Other Invested Assets, Page 3 | $— | No payments required since inception. |
| 3 | Guarantee the minimum net capital and a ratio of aggregate indebtedness to net capital of Pruco Securities | (a) | Other Invested Assets, Page 3 | $— | The maximum amount payable under the guarantee agreement was paid to Pruco Securities during 2015 for $10 million. |
| 4 | Guarantee obligations to PASS Corp's claimants | (a) | Other Expenses (Benefits), Page 4 | (c) | No payments required since inception. |
| 5 | Guarantee obligations to PSSC's claimants | (a) | Other Expenses (Benefits), Page 4 | (c) | No payments required since inception. |
| 6 | Guarantee protection against certain losses from theft or other criminal misconduct of plan assets under the Company's ERISA Separate Accounts | (d) | Separate Accounts Liability, Page 3 | (b) | No payments required since inception. |
| 7 | Guarantee related to E. 22nd Street SSGA Venture LLC | $— | Other Invested Assets, Page 3 | $225 | No payments required since inception. |
| 8 | Guarantee related to acquisition of John Hancock real estate investment | (a) | Real Estate, Page 3 | $1000 | No payments required since inception. |
| 9 | Guarantee related to Prudential Legacy Insurance Company | (a) | Common Stock, Page 3 | $2399 | No payments required since inception. |
| 10 | Guarantee related to Pramerica Fosun Life Insurance Co., Ltd | $— | Other Invested Assets, Page 3 | (b) | No payments required since inception. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liability recognition not required for guarantees made on behalf of wholly owned insurance or non-insurance subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No limitation on the maximum potential future payments under guarantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No current remaining obligations are held by the supported entity related to assignment agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The separate account is not a separate legal entity from the Company.

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| | **(in millions)** | **(in millions)** |
| Aggregate maximum potential future payments of all guarantees (undiscounted) that the Company could be required to make as of December 31: | $3624 | $2951 |
| Current liability recognized in financial statements as of December 31: |  |  |
| Noncontingent liabilities |  |  |
| Contingent liabilities |  |  |
| Financial statement impact as of December 31, if action under Guarantee is required: |  |  |
| Investments in Affiliated Other Invested Assets and Common Stock | 3624 | 2951 |
| Dividends to stockholders (capital contribution) |  |  |
| Expense |  |  |
| Other |  |  |
| **Total**  | $3624 | $2951 |

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**14B. &nbsp;&nbsp;&nbsp;&nbsp;Assessments**

In 1991, the Company established a liability for guaranty fund assessments as a result of the Executive Life Insurance Company ("ELIC"), insolvency. In 2007, the Company also established a guaranty fund assessment liability related to Executive Life Insurance Company of New York ("ELNY"). In 2010, the Company established a guaranty fund assessment liability related to Penn Treaty Network America Insurance Company ("Penn Treaty"). In 2011, the Company established a guaranty fund assessment liability related to Lincoln Memorial Life Insurance Company. In 2024, the Company established a guaranty fund assessment liability related to the Colorado Bankers Life Insurance Company and Bankers Life Insurance Company. The assessments are expected to be paid out over a number of years. As of December 31, 2025 and 2024, the total amount of the liability related to guaranty fund assessments was $4 million and $23 million, respectively. As of December 31, 2025 and 2024, the Company also held a related asset of $40 million and $53 million, respectively, for premium tax credits associated with the guaranty fund assessments. Premium tax credits are generally expected to be realized over a similar time period as the assessment liability but will vary by state, which can affect the available amounts and duration. Penn Treaty is an entity that wrote long-term care contracts. The liability and related asset for premium tax credits held related to the Penn Treaty insolvency does not have a material financial effect for the Company. Periodically as new information becomes available, the Company revises its estimates for both the guaranty fund assessment liability and the related asset.

---

| | |
|:---|:---|
| | **(in millions)** |
| Assets recognized from paid and accrued premium tax offsets as of December 31, 2024 | $53 |
| &nbsp;&nbsp;&nbsp;&nbsp;Decreases in December 31, 2025: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments in premium tax offsets | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reevaluation of tax asset accrual | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increases in December 31, 2025: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional premium tax offsets applied | 2 |
| **Assets recognized from paid and accrued premium tax offsets as of December 31, 2025**  | $40 |

---

**14C. &nbsp;&nbsp;&nbsp;&nbsp;Claims Related Extra Contractual Obligations and Bad Faith Losses Stemming from Lawsuits**

The Company paid $6 million, $17 million and $5 million for the year ended December 31, 2025, 2024 and 2023, respectively, to settle less than 50 claims related to extra contractual obligations and bad faith losses stemming from lawsuits.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**14D. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Contingencies**

The Company is subject to legal and regulatory actions in the ordinary course of its businesses. Pending legal and regulatory actions include proceedings specific to it and proceedings generally applicable to business practices in the industries in which it operates, including in both cases businesses that have either been divested or placed in wind-down status. The Company is subject to class action lawsuits and individual lawsuits involving a variety of issues, including sales practices, underwriting practices, claims payment and procedures, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, return of premiums or excessive premium charges and breaching fiduciary duties 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. Regulatory authorities from time to time make inquiries and conduct investigations and examinations relating particularly to the Company and its businesses and products. 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.

**Individual Annuities, Individual Life and Group Insurance**

<br> **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.

**Escheatment Litigation**

**Total Asset Recovery Services, LLC v. MetLife, Inc., et al., Prudential Financial, Inc., The Prudential Insurance Company of America, and Prudential Insurance Agency, LLC**

In December 2017, Total Asset Recovery Services, LLC, on behalf of the State of New York, filed a Second Amended Complaint in the Supreme Court of the State of New York, County of New York, against, among other 19 defendants, Prudential Financial, Inc., The Prudential Insurance Company of America and Prudential Insurance Agency, LLC, alleging that the Company failed to escheat life insurance proceeds in violation of the New York False Claims Act. The second amended complaint seeks injunctive relief, compensatory damages, civil penalties, treble damages, prejudgment interest, attorneys' fees and costs. In May 2018, defendants filed a motion to dismiss the Second Amended Complaint. In April 2019, defendants' motion to dismiss the Second Amended Complaint was granted and plaintiff subsequently filed a Notice of Appeal with the New York State Supreme Court, First Department. In December 2020, the New York Supreme Court, First Department, reversed and vacated the judgment of the trial court and granted leave to plaintiff to file a third amended complaint. In March 2021, the plaintiff filed a third amended complaint asserting claims against all defendants for violation of the New York False Claims Act, and seeking injunctive relief, compensatory and treble damages, attorneys' fees and costs. In January 2023, the plaintiff filed a Fourth Amended Complaint. In March 2023, defendants filed a motion to dismiss the Fourth Amended Complaint. In October 2024, defendants' motion to dismiss the Fourth Amended Complaint was denied. In December 2024, defendants filed an Answer to the Fourth Amended Complaint.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Other Matters**

**Cho v. PICA, et al.**

In November 2019, a putative class action complaint entitled Cho v. The Prudential Insurance Company of America, et. al., was filed in the United States District Court for the District of New Jersey. The Complaint purports to be brought on behalf of participants in the Prudential Employee Savings Plan (the "Plan") and (i) alleges that Defendants failed to fulfill their fiduciary obligations under the Employee Retirement Income Security Act of 1974, in the administration, management and operation of the Plan, including engaging in prohibited transactions; and (ii) seeks declaratory, injunctive and equitable relief, and unspecified damages including interest, attorneys' fees and costs. In January 2020, defendants filed a motion to dismiss the complaint. In September 2020, plaintiff filed an amended complaint and added as individual defendants certain PFI officers and current and former members of the Company's Administrative Committee and Investment Oversight Committee. In December 2020, defendants filed a motion to dismiss the amended complaint. In September 2021, the court granted defendants' motion to dismiss the amended complaint without prejudice. In October 2021, plaintiff filed a second amended complaint asserting claims against defendants under the Employee Retirement Income Security Act of 1974 for breach of fiduciary duty, prohibited transactions and failure to monitor fiduciaries. The second amended complaint seeks declaratory, injunctive and equitable relief, unspecified damages, attorneys' fees and costs. In December 2021, defendants filed a motion to dismiss the second amended complaint. In August 2022, the court: (i) dismissed, with prejudice, the breach of the fiduciary duty of loyalty and prohibited transaction claims based on the inclusion of Prudential-affiliated funds in the Plan's investment options; (ii) dismissed, without prejudice, the breach of fiduciary duty claims based on certain alleged underperforming Plan funds; and (iii) denied the motion to dismiss plaintiffs' claims for breach of the fiduciary duties of prudence and to monitor other fiduciaries, based on alleged delays in removing other alleged underperforming funds. In September 2022, plaintiff filed a third amended complaint asserting claims for breach of duty of prudence and to monitor fiduciaries, and in October 2022, defendants filed their answer to the third amended complaint. In May 2023, plaintiff filed a motion for class certification. In August 2023, the court issued an Order granting plaintiff's class certification motion. In January 2024, by an October 2023 court Order, defendants submitted to plaintiffs their summary judgment brief. In December 2024, the court issued an order granting Prudential's motion for summary judgment. In January 2025, plaintiff filed a Notice of Appeal to the Third Circuit. In January 2026, the Third Circuit Court of Appeals affirmed the District Court's order granting defendant's summary judgment motion.

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**15.&nbsp;&nbsp;&nbsp;&nbsp;LEASES**

**Lessee Operating Lease:**

The Company occupies leased office space in many locations under various long-term leases and has entered into numerous leases covering the long-term use of computers and other equipment.

At December 31, 2025, the minimum aggregate rental commitments are as follows:

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| | |
|:---|:---|
| | **(in millions)** |
| 2026 | $36 |
| 2027 | 30 |
| 2028 | 23 |
| 2029 | 18 |
| 2030 | 17 |
| Thereafter | 44 |
| **Total**  | $168 |

---

Rental expense, net of sub-lease income, incurred for the years ended December 31, 2025, 2024 and 2023 was $42 million, $43 million and $49 million, respectively.

**16.&nbsp;&nbsp;&nbsp;&nbsp;PREMIUM AND ANNUITY CONSIDERATIONS DEFERRED AND UNCOLLECTED**

Deferred and uncollected life insurance premiums and annuity considerations as of December 31:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2024** | **2024** |
| **Type** | **Gross** | **Net of Loading** | **Gross** | **Net of Loading** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Ordinary - New Business (Individual Life & Annuities) | $1 | $1 | $5 | $5 |
| Ordinary - Renewal Business | 2352 | 2353 | 2474 | 2475 |
| Group Life | 297 | 297 | 296 | 296 |
| Group Annuity | 2314 | 2314 | 1579 | 1579 |
| **Total**  | $4964 | $4965 | $4354 | $4355 |

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**17.&nbsp;&nbsp;&nbsp;&nbsp;OTHER DISCLOSURES AND UNUSUAL ITEMS**

&nbsp;&nbsp;&nbsp;&nbsp;**Reporting Net Negative (Disallowed) IMR**

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| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** |
| | **Net Negative (disallowed) IMR** | **Negative (disallowed) IMR admitted** |
| | **(in millions)** | **(in millions)** |
| General Account | $1900 | $1230 |
| Insulated Separate Account | 1346 |  |
| **Total**  | $3246 | $1230 |

---

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| | | |
|:---|:---|:---|
| **Calculated adjusted capital and surplus** | **December 31, 2025** | **December 31, 2025** |
| | **(in millions)** | **(in millions)** |
| Prior Period General Account Capital & Surplus | $| 15845 |
| Less: From Prior Period SAP Financials Net Positive Goodwill (admitted) |  |  |
| Less: EDP Equipment & Operating System Software (admitted) | 164 | 164 |
| Less: Net DTAs (admitted) | 2086 | 2086 |
| Less: Net Negative (disallowed) IMR (admitted) | 1292 | 1292 |
| Adjusted Capital & Surplus | $| 12303 |
| **Percentage of adjusted capital and surplus** |  |  |
|  | **<u>Total</u>** | **<u>Total</u>** |
| Percentage of Total Net Negative (disallowed) IMR admitted in General Account or recognized in Separate Account to adjusted capital and surplus | 10% | 10% |

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| | | |
|:---|:---|:---|
| **Allocated gains/losses to IMR from derivatives** | **December 31, 2025** | **December 31, 2025** |
| | **Gains** | **Losses** |
| **General Account:** | **(in millions)** | **(in millions)** |
| Unamortized Fair Value Derivative Gains & Losses Realized to IMR – Prior Period | $720 | $(950) |
| Fair Value Derivative Gains & Losses Realized to IMR – Added in Current Period | 259 | (446) |
| Fair Value Derivative Gains & Losses Amortized Over Current Period | 55 | (63) |
| Unamortized Fair Value Derivative Gains & Losses Realized to IMR – Current Period Total | $924 | $(1333) |
| **Separate Account - Insulated:** |  |  |
| Unamortized Fair Value Derivative Gains & Losses Realized to IMR – Prior Period | $146 | $(120) |
| Fair Value Derivative Gains & Losses Realized to IMR – Added in Current Period | 92 | (135) |
| Fair Value Derivative Gains & Losses Amortized Over Current Period | 19 | (18) |
| Unamortized Fair Value Derivative Gains & Losses Realized to IMR – Current Period Total | $219 | $(237) |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | |
|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** |
| | **Net Negative (disallowed) IMR** | **Negative (disallowed) IMR admitted** |
| | **(in millions)** | **(in millions)** |
| General Account | $1780 | $1415 |
| Insulated Separate Account | 1298 |  |
| **Total**  | $3078 | $1415 |

---

---

| | | |
|:---|:---|:---|
| **Calculated adjusted capital and surplus** | **December 31, 2024** | **December 31, 2024** |
| | **(in millions)** | **(in millions)** |
| Prior Period General Account Capital & Surplus | $| 17862 |
| Less: From Prior Period SAP Financials Net Positive Goodwill (admitted) |  |  |
| Less: EDP Equipment & Operating System Software (admitted) | 163 | 163 |
| Less: Net DTAs (admitted) | 2174 | 2174 |
| Less: Net Negative (disallowed) IMR (admitted) | 1377 | 1377 |
| Adjusted Capital & Surplus | $| 14148 |
| **Percentage of adjusted capital and surplus** |  |  |
|  | **<u>Total</u>** | **<u>Total</u>** |
| Percentage of Total Net Negative (disallowed) IMR admitted in General Account or recognized in Separate Account to adjusted capital and surplus | 10% | 10% |

---

---

| | | |
|:---|:---|:---|
| **Allocated gains/losses to IMR from derivatives** | **December 31, 2024** | **December 31, 2024** |
| | **Gains** | **Losses** |
| **General Account:** | **(in millions)** | **(in millions)** |
| Unamortized Fair Value Derivative Gains & Losses Realized to IMR – Prior Period | $535 | $(327) |
| Fair Value Derivative Gains & Losses Realized to IMR – Added in Current Period | 205 | (661) |
| Fair Value Derivative Gains & Losses Amortized Over Current Period | 20 | (38) |
| Unamortized Fair Value Derivative Gains & Losses Realized to IMR – Current Period Total | $720 | $(950) |
| **Separate Account - Insulated:** |  |  |
| Unamortized Fair Value Derivative Gains & Losses Realized to IMR – Prior Period | 113 | (46) |
| Fair Value Derivative Gains & Losses Realized to IMR – Added in Current Period | 40 | (79) |
| Fair Value Derivative Gains & Losses Amortized Over Current Period | 7 | (5) |
| Unamortized Fair Value Derivative Gains & Losses Realized to IMR – Current Period Total | $146 | $(120) |

---

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**State and Federal Tax Credits**

The following table sets forth the composition of the Company's state and federal tax credits as of the date indicated:

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| | | | |
|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Description of Transferable and Non-transferable Tax Credits** | **Jurisdiction** | **Carrying Value** | **Unused Amount** |
| | | **(in millions)** | **(in millions)** |
| RJTCF-48 State Tax Credit Fund L.L.C. | FL | $1 | $1 |
| CREA Corporate Tax Credit Fund 89, LP | IN | 2 |  |
| Richman Western Regional III L.P. | CT | 2 |  |
| WNC Institutional Tax Credit Fund 49, L.P. | CA |  | 2 |
| RJ State Tax Credit Investor Fund IX L.L.C. | FL | 1 |  |
| WNC Institutional Tax Credit Fund 56, L.P. | CA | 4 |  |
| WNC Institutional Tax Credit Fund 52, L.P. | CA | 3 | 3 |
| Total state tax credits | XXX | 13 | 6 |
| Total federal tax credits | XXX | 211 | 22 |
| **Total tax credits** | XXX | $224 | $28 |

---

The following table sets forth the total unused tax credits by jurisdiction, disaggregated by transferable/certificated and non-transferable as of the date indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Jurisdiction** | **Transferable/Certificated** | **Nontransferable** | **Total** |
| | | **(in millions)** | **(in millions)** | **(in millions)** |
| RJTCF-48 State Tax Credit Fund L.L.C. | FL | $— | $1 | $1 |
| WNC Institutional Tax Credit Fund 49, L.P. | CA |  | 2 | 2 |
| WNC Institutional Tax Credit Fund 52, L.P. | CA |  | 3 | 3 |
| Total state tax credits | XXX |  | 6 | 6 |
| Total federal tax credits | XXX |  | 22 | 22 |
| **Total tax credits** | XXX | $— | $28 | $28 |

---

The estimated utilization of the tax credits is based upon a prorated share of the total tax credits.

The Company did not recognize any impairment losses related to write-down as a result of impairment analysis of the carrying amount for state and federal tax credits for the year ended December 31, 2025.

The Company did have commitments or contingent commitments to purchase tax credits as of December 31, 2025.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The following table sets forth the state and federal tax credits admitted and nonadmitted disaggregated by transferable/certificated and nontransferable; as of the date indicated:

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** |
| | **Total Admitted** | **Total Nonadmitted** |
| | **(in millions)** | **(in millions)** |
| **State** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transferable | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-transferable | $6 | $— |
| **Federal** | **Federal** | **Federal** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transferable | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-transferable | $22 | $— |

---

The following table sets forth the composition of the Company's state tax credits as of the date indicated:

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Description of State Transferable and Non-transferable Tax Credits** | **State** | **Carrying Value** | **Unused Amount** |
| | | **(in millions)** | **(in millions)** |
| RJTCF-43 State Tax Credit Fund L.L.C. | FL | $1 | $— |
| Ocotillo Springs Apartments | OH | 6 |  |
| RJTCF-48 State Tax Credit Fund L.L.C. | FL | 2 |  |
| CREA Corporate Tax Credit Fund 89, LP | IN | 2 |  |
| El Dorado Family Apartments II | CA | 4 |  |
| La Vista Residential | CA |  |  |
| Mariposa Place | CA |  |  |
| Indiana Redevelopment Tax Credit; Kokomo Battery Facility | IN | 1 |  |
| Vine Creek Apartments | CA |  |  |
| CREA Corporate Tax Credit Fund 89, LP | IN |  |  |
| Richman Western Regional III L.P. | CT | 1 |  |
| WNC Institutional Tax Credit Fund 49, L.P. - State | CA |  | 2 |
| RJ State Tax Credit Investor Fund IX L.L.C. | FL | 1 |  |
| Knox Residences II LLC | MA | 2 |  |
| WNC Institutional Tax Credit Fund 56, L.P. - State | CA | 1 |  |
| Red Stone Equity-Fund 83 Limited Partnership | MA | 3 |  |
| **Total** |  | $24 | $2 |

---

The estimated utilization of the tax credits is based upon a prorate share of the total tax credits.

There was no impairment recognized on tax credits for the year ended December 31, 2024.

There was $24 million of admitted state tax credits for the year ended December 31, 2024.

**Other disclosures**

In July 2023, the Company's subsidiaries PLAZ and PLNJ 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 the Company, with retrocession by PURE of such liabilities on a modified coinsurance basis, to Somerset Re. In March 2024, PLAZ and PLNJ closed the transaction effective as of January 1, 2024. There was no material increase to surplus due to the impact from the YRT reinsurance agreements with subsidiaries as a result of this transaction.

In September 2023, as an additional source of liquidity, the Company entered into an agreement with the Federal Agricultural Mortgage Corporation ("Farmer Mac"), under which the Company can borrow up to $750 million by issuing funding agreements to a subsidiary of

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

Farmer Mac, with borrowings secured by a pledge of certain eligible agricultural mortgage loans. At December 31, 2025, no amounts were drawn from this facility.

Effective September 2023, the Company entered into an agreement with Prismic Life Reinsurance, Ltd ("Prismic Re"), to reinsure approximately $10 billion of reserves, representing approximately 67% of the in-force structured settlement annuities business previously issued by PICA, 90% of which is on a coinsurance with funds withheld basis and 10% of which is on a coinsurance basis. In conjunction with this transaction, Prudential Financial acquired a 20% interest as a limited partner in Prismic Life Holding Company, LP, a Bermuda exempted limited partnership that owns all of the outstanding capital stock of Prismic Re.

Effective June 29, 2023, the Company surrendered $2 billion of its Stable Value Individual Retirement Account ("IRA") Full Service Retirement product to Empower Annuity Insurance Company of America ("EAICA"). These IRA contracts had previously been reinsured to EAICA effective on April 1, 2022 under the terms of the sale of the Company's Full Service business (refer to below for further information). This surrender was considered a non cash transaction as EAICA liquidated a portion of the assets established within the Reinsurance Trust which supports the IRA liabilities.

The Company has, consistent with past practice, guaranteed that a minimum amount of $526 million of annual and termination dividends will be paid and credited to the U.S. holders of policies issued after 1983 by December 31, 2026, as declared by the Company's Board of Directors.

The Company is owner and beneficiary of variable life insurance policies which it holds through subsidiaries that are recorded under the equity method of accounting.

The composition of the investments that underlie the cash surrender value are as follows as of December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2024** | **2024** |
| | **Aggregate Cash Surrender Value** | **Percentage** | **Aggregate Cash Surrender Value** | **Percentage** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Bonds | $2747 | 52.8% | $2513 | 52.3% |
| Stocks | 1945 | 37.4% | 1711 | 35.6% |
| Cash and short-term investments | 465 | 8.9% | 531 | 11.1% |
| Derivatives |  | 0.0% | 3 | 0.1% |
| Other invested assets | 47 | 0.9% | 44 | 0.9% |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The following table illustrates the supplemental disclosure of non-cash items excluded from the Statutory Statements of Cash Flows:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended** | **Years Ended** | **Years Ended** |
| | **December 31,** | **December 31,** | **December 31,** |
| | **2025** | **2024** | **2023** |
| | (in millions) | (in millions) | (in millions) |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |  |
| Premiums and annuity considerations <sup>(1)(7)</sup> | $(107) | $(11693) | $6716 |
| Net investment income | (12) | (26) | (27) |
| Other income<sup>(7)</sup> | (34) | (41) | 672 |
| Separate account transfers <sup>(1)</sup> | 107 | 11693 | 2264 |
| Federal income taxes | 5 | 22 | 22 |
| Other operating expenses <sup>(5)(7)</sup> | 35 | (4) | 310 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net cash from (used in) operating activities**  | (6) | (49) | 9957 |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |  |
| Proceeds from investments sold, matured or repaid |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds<sup>(8)</sup> | (6) | (7945) | (1720) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stocks <sup>(2)(3)</sup> | (106) | (536) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans on real estate<sup>(8)</sup> |  | (888) |  |
| &nbsp;&nbsp;Other invested assets <sup>(2)</sup> | (707) | (6) | (88) |
| &nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous proceeds<sup>(7)(8)</sup> |  | 8725 | (394) |
| Payments for investments acquired |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds <sup>(6)(7)</sup> | 287 |  | 369 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stocks <sup>(2)(3)(4)(5)</sup> | 233 | 3545 | 591 |
| &nbsp;&nbsp;&nbsp;Mortgage loans on real estate | 7 | 5 | 5 |
| &nbsp;&nbsp;Other invested assets <sup>(2)</sup> | 135 | 154 | 239 |
| &nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous applications<sup>(8)</sup> | (37) | (41) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net cash from (used in) investing activities**  | (194) | 3013 | (998) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |  |
| Surplus notes, capital notes<sup>(6)</sup> | (287) |  |  |
| Proceeds from (payments of) surplus paid in <sup>(4)(5)</sup> | (63) | (2924) | (753) |
| Dividends to stockholders | 74 |  |  |
| Net deposits on deposit-type contract funds <sup>(7)</sup> |  |  | 699 |
| Other financing activities <sup>(2)(7)</sup> | 476 | (40) | (8905) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net cash from (used in) financing activities**  | 200 | (2964) | (8959) |
| **Total non-cash transactions**  | $— | $— | $— |
| (1) Includes in-kind asset receipts related to pension risk transfer transactions ($107) million as of 12/31/2025, ($11693) million as of 12/31/2024 and ($2264) million as of 12/31/2023. | (1) Includes in-kind asset receipts related to pension risk transfer transactions ($107) million as of 12/31/2025, ($11693) million as of 12/31/2024 and ($2264) million as of 12/31/2023. | (1) Includes in-kind asset receipts related to pension risk transfer transactions ($107) million as of 12/31/2025, ($11693) million as of 12/31/2024 and ($2264) million as of 12/31/2023. | (1) Includes in-kind asset receipts related to pension risk transfer transactions ($107) million as of 12/31/2025, ($11693) million as of 12/31/2024 and ($2264) million as of 12/31/2023. |
| (2) Includes asset transfer to an affiliate of ($504) million as of 12/31/2025. | (2) Includes asset transfer to an affiliate of ($504) million as of 12/31/2025. | (2) Includes asset transfer to an affiliate of ($504) million as of 12/31/2025. | (2) Includes asset transfer to an affiliate of ($504) million as of 12/31/2025. |
| (3) Includes a capital contribution from parent to its subsidiary ($416) million as of 12/31/2024. For additional information see Note 13. | (3) Includes a capital contribution from parent to its subsidiary ($416) million as of 12/31/2024. For additional information see Note 13. | (3) Includes a capital contribution from parent to its subsidiary ($416) million as of 12/31/2024. For additional information see Note 13. | (3) Includes a capital contribution from parent to its subsidiary ($416) million as of 12/31/2024. For additional information see Note 13. |
| (4) Includes capital contribution from parent passed through to subsidiary ($2796) million as of 12/31/2024. For additional information see Note 13. | (4) Includes capital contribution from parent passed through to subsidiary ($2796) million as of 12/31/2024. For additional information see Note 13. | (4) Includes capital contribution from parent passed through to subsidiary ($2796) million as of 12/31/2024. For additional information see Note 13. | (4) Includes capital contribution from parent passed through to subsidiary ($2796) million as of 12/31/2024. For additional information see Note 13. |
| (5) Includes capital contribution from parent of ($63) million as of 12/31/2025. For additional information see Note 13. | (5) Includes capital contribution from parent of ($63) million as of 12/31/2025. For additional information see Note 13. | (5) Includes capital contribution from parent of ($63) million as of 12/31/2025. For additional information see Note 13. | (5) Includes capital contribution from parent of ($63) million as of 12/31/2025. For additional information see Note 13. |
| (6) Surplus notes issued in exchange for credit linked notes received as of 12/31/2025. | (6) Surplus notes issued in exchange for credit linked notes received as of 12/31/2025. | (6) Surplus notes issued in exchange for credit linked notes received as of 12/31/2025. | (6) Surplus notes issued in exchange for credit linked notes received as of 12/31/2025. |
| (7) Includes impacts from the ceded reinsurance transaction covering structured settlements effective third quarter of 2023. For additional information see Notes 7 and 17. | (7) Includes impacts from the ceded reinsurance transaction covering structured settlements effective third quarter of 2023. For additional information see Notes 7 and 17. | (7) Includes impacts from the ceded reinsurance transaction covering structured settlements effective third quarter of 2023. For additional information see Notes 7 and 17. | (7) Includes impacts from the ceded reinsurance transaction covering structured settlements effective third quarter of 2023. For additional information see Notes 7 and 17. |
| (8) Includes transfer into securities lending reinvested collateral assets (($7945) million of bonds, ($876) million of mortgage loans on real estate, and ($40) million of derivatives as of 12/31/2024). For additional information see Note 1D (15). | (8) Includes transfer into securities lending reinvested collateral assets (($7945) million of bonds, ($876) million of mortgage loans on real estate, and ($40) million of derivatives as of 12/31/2024). For additional information see Note 1D (15). | (8) Includes transfer into securities lending reinvested collateral assets (($7945) million of bonds, ($876) million of mortgage loans on real estate, and ($40) million of derivatives as of 12/31/2024). For additional information see Note 1D (15). | (8) Includes transfer into securities lending reinvested collateral assets (($7945) million of bonds, ($876) million of mortgage loans on real estate, and ($40) million of derivatives as of 12/31/2024). For additional information see Note 1D (15). |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**18. ANALYSIS OF ANNUITY ACTUARIAL RESERVES AND DEPOSIT LIABILITIES BY WITHDRAWAL CHARACTERISTICS**

The following table is an analysis of annuity actuarial reserves and deposit-type contract funds and other liabilities without life or disability contingencies by withdrawal characteristics as of December 31:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** | **2025** |
| | **General Account** | **Separate Account with Guarantees** | **Separate Account<br>Nonguaranteed** | **Total** | **% of Total** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| INDIVIDUAL ANNUITIES: |  |  |  |  |  |
| Subject to discretionary withdrawal: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;With market value adjustment | $53 | $— | $— | $53 | 0.7% |
| &nbsp;&nbsp;&nbsp;At book value less current surrender charge of 5% or more (1) | 6 |  |  | 6 | 0.1% |
| &nbsp;&nbsp;&nbsp;At fair value |  |  | 1592 | 1592 | 20.2% |
| **Total with market value adjustment or at fair value**  | 59 |  | 1592 | 1651 | 21.0% |
| At book value without adjustment (minimal or no charge or adjustment) (2) | 1436 |  |  | 1436 | 18.2% |
| Not subject to discretionary withdrawal | 4791 |  |  | 4791 | 60.8% |
| **Total (Gross: Direct + Assumed)**  | 6286 |  | 1592 | 7878 | 100.0% |
| Reinsurance ceded | 1963 |  |  | 1963 |  |
| **Total (Net)**  | $4323 | $— | $1592 | $5915 |  |
| Amount included in (1) above that will move to (2) for the first time within the year after the statement date | $2 | $— | $— | $2 |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** | **2025** |
| | **General Account** | **Separate Account with Guarantees** | **Separate Account<br>Nonguaranteed** | **Total** | **% of Total** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| GROUP ANNUITIES: |  |  |  |  |  |
| Subject to discretionary withdrawal: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;With market value adjustment | $2876 | $1205 | $— | $4081 | 3.0% |
| &nbsp;&nbsp;&nbsp;At book value less current surrender charge of 5% or more (1) |  |  |  |  | 0.0% |
| &nbsp;&nbsp;&nbsp;At fair value |  | 483 | 27426 | 27909 | 20.3% |
| **Total with market value adjustment or at fair value**  | 2876 | 1688 | 27426 | 31990 | 23.3% |
| At book value without adjustment (minimal or no charge or adjustment) (2) | 370 | 14 |  | 384 | 0.3% |
| Not subject to discretionary withdrawal | 30168 | 74479 |  | 104647 | 76.4% |
| **Total (Gross: Direct + Assumed)**  | 33414 | 76181 | 27426 | 137021 | 100.0% |
| Reinsurance ceded | 10020 |  |  | 10020 |  |
| **Total (Net)**  | $23394 | $76181 | $27426 | $127001 |  |
| Amount included in (1) above that will move to (2) for the first time within the year after the statement date | $— | $— | $— | $— |  |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** | **2025** |
| | **General Account** | **Separate Account with Guarantees** | **Separate Account<br>Nonguaranteed** | **Total** | **% of Total** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| DEPOSIT-TYPE CONTRACTS (no life contingencies): |  |  |  |  |  |
| Subject to discretionary withdrawal: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;With market value adjustment | $— | $— | $— | $— | 0.0% |
| &nbsp;&nbsp;&nbsp;At book value less current surrender charge of 5% or more (1) |  |  |  |  | 0.0% |
| &nbsp;&nbsp;&nbsp;At fair value | 2 | 151 | 4773 | 4926 | 18.0% |
| **Total with market value adjustment or at fair value**  | 2 | 151 | 4773 | 4926 | 18.0% |
| At book value without adjustment (minimal or no charge or adjustment) (2) | 8123 |  |  | 8123 | 29.7% |
| Not subject to discretionary withdrawal | 14308 |  |  | 14308 | 52.3% |
| **Total (Gross: Direct + Assumed)**  | 22433 | 151 | 4773 | 27357 | 100.0% |
| Reinsurance ceded | 4777 |  |  | 4777 |  |
| **Total (Net)**  | $17656 | $151 | $4773 | $22580 |  |
| Amount included in (1) above that will move to (2) for the first time within the year after the statement date | $— | $— | $— | $— |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** |
| | **General Account** | **Separate Account with Guarantees** | **Separate Account Nonguaranteed** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Reconciliation of total annuity actuarial reserves and deposit liabilities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Life and Accident & Health Annual Statement | $45373 | $— | $— | $45373 |
| &nbsp;&nbsp;&nbsp;&nbsp;Separate Accounts Annual Statement |  | 76332 | 33791 | 110123 |
| **Total annuity actuarial reserves and deposit liabilities**  | $45373 | $76332 | $33791 | $155496 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The following table is an analysis of annuity actuarial reserves and deposit-type contract funds and other liabilities without life or disability contingencies by withdrawal characteristics as of December 31:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** | **2024** | **2024** |
| | **General Account** | **Separate Account with Guarantees** | **Separate Account<br>Nonguaranteed** | **Total** | **% of Total** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| INDIVIDUAL ANNUITIES: |  |  |  |  |  |
| Subject to discretionary withdrawal: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;With market value adjustment | $63 | $— | $— | $63 | 0.8% |
| &nbsp;&nbsp;&nbsp;At book value less current surrender charge of 5% or more (1) | 20 |  |  | 20 | 0.2% |
| &nbsp;&nbsp;&nbsp;At fair value |  |  | 1629 | 1629 | 20.2% |
| **Total with market value adjustment or at fair value**  | 83 |  | 1629 | 1712 | 21.2% |
| At book value without adjustment (minimal or no charge or adjustment) (2) | 1637 |  |  | 1637 | 20.3% |
| Not subject to discretionary withdrawal | 4727 |  |  | 4727 | 58.5% |
| **Total (Gross: Direct + Assumed)**  | 6447 |  | 1629 | 8076 | 100.0% |
| Reinsurance ceded | 1959 |  |  | 1959 |  |
| **Total (Net)**  | $4488 | $— | $1629 | $6117 |  |
| Amount included in (1) above that will move to (2) for the first time within the year after the statement date | $2 | $— | $— | $2 |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** | **2024** | **2024** |
| | **General Account** | **Separate Account with Guarantees** | **Separate Account<br>Nonguaranteed** | **Total** | **% of Total** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| GROUP ANNUITIES: |  |  |  |  |  |
| Subject to discretionary withdrawal: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;With market value adjustment | $5240 | $1273 | $— | $6513 | 4.7% |
| &nbsp;&nbsp;&nbsp;At book value less current surrender charge of 5% or more (1) |  |  |  |  | 0.0% |
| &nbsp;&nbsp;&nbsp;At fair value |  | 641 | 26463 | 27104 | 19.7% |
| **Total with market value adjustment or at fair value**  | 5240 | 1914 | 26463 | 33617 | 24.4% |
| At book value without adjustment (minimal or no charge or adjustment) (2) | 388 | 12 |  | 400 | 0.3% |
| Not subject to discretionary withdrawal | 28474 | 75505 |  | 103979 | 75.3% |
| **Total (Gross: Direct + Assumed)**  | 34102 | 77431 | 26463 | 137996 | 100.0% |
| Reinsurance ceded | 12329 |  |  | 12329 |  |
| **Total (Net)**  | $21773 | $77431 | $26463 | $125667 |  |
| Amount included in (1) above that will move to (2) for the first time within the year after the statement date | $— | $— | $— | $— |  |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** | **2024** | **2024** |
| | **General Account** | **Separate Account with Guarantees** | **Separate Account<br>Nonguaranteed** | **Total** | **% of Total** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| DEPOSIT-TYPE CONTRACTS (no life contingencies): |  |  |  |  |  |
| Subject to discretionary withdrawal: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;With market value adjustment | $— | $— | $— | $— | 0.0% |
| &nbsp;&nbsp;&nbsp;At book value less current surrender charge of 5% or more (1) |  |  |  |  | 0.0% |
| &nbsp;&nbsp;&nbsp;At fair value | 2 | 118 | 4625 | 4745 | 19.2% |
| **Total with market value adjustment or at fair value**  | 2 | 118 | 4625 | 4745 | 19.2% |
| At book value without adjustment (minimal or no charge or adjustment) (2) | 8491 |  |  | 8491 | 34.3% |
| Not subject to discretionary withdrawal | 11517 |  |  | 11517 | 46.5% |
| **Total (Gross: Direct + Assumed)**  | 20010 | 118 | 4625 | 24753 | 100.0% |
| Reinsurance ceded | 4913 |  |  | 4913 |  |
| **Total (Net)**  | $15097 | $118 | $4625 | $19840 |  |
| Amount included in (1) above that will move to (2) for the first time within the year after the statement date | $— | $— | $— | $— |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** | **2024** |
| | **General Account** | **Separate Account with Guarantees** | **Separate Account Nonguaranteed** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Reconciliation of total annuity actuarial reserves and deposit liabilities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Life and Accident & Health Annual Statement | $41358 | $— | $— | $41358 |
| &nbsp;&nbsp;&nbsp;&nbsp;Separate Accounts Annual Statement |  | 77549 | 32717 | 110266 |
| **Total annuity actuarial reserves and deposit liabilities**  | $41358 | $77549 | $32717 | $151624 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**19. ANALYSIS OF LIFE ACTUARIAL RESERVES BY WITHDRAWAL CHARACTERISTICS**

The following table is an analysis of life actuarial reserves by withdrawal characteristics as of December 31:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **General Account** | **General Account** | **General Account** | **General Account** | **General Account** | **General Account** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Account Value** | **Cash Value** | **Reserve** | **Account Value** | **Cash Value** | **Reserve** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Subject to discretionary withdrawal, surrender values, or policy loans: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Term Policies with Cash Value | $55 | $930 | $959 | $58 | $109 | $144 |
| &nbsp;&nbsp;&nbsp;Universal Life | 2308 | 2304 | 2367 | 2336 | 2421 | 2583 |
| &nbsp;&nbsp;&nbsp;Universal Life with Secondary Guarantees | 3487 | 3181 | 13705 | 3787 | 3405 | 13829 |
| &nbsp;&nbsp;&nbsp;Indexed Universal Life |  |  |  |  |  | 9 |
| &nbsp;&nbsp;&nbsp;Indexed Universal Life with Secondary Guarantees | 481 | 460 | 516 | 466 | 444 | 558 |
| &nbsp;&nbsp;&nbsp;Indexed Life |  |  |  |  |  |  |
| &nbsp;&nbsp;Other Permanent Cash Value Life Insurance <sup>(1)</sup> |  | 73269 | 73808 |  | 73106 | 73940 |
| &nbsp;&nbsp;&nbsp;Variable Life | 1830 | 1881 | 2065 | 1763 | 1886 | 2058 |
| &nbsp;&nbsp;&nbsp;Variable Universal Life | 1435 | 1435 | 1570 | 1479 | 1478 | 1671 |
| &nbsp;&nbsp;&nbsp;Miscellaneous Reserves |  | 621 | 890 |  | 631 | 984 |
| Not subject to discretionary withdrawals or no cash values: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Term Policies without Cash Value |  |  | 3806 |  |  | 3995 |
| &nbsp;&nbsp;&nbsp;Accidental Death Benefits |  |  | 476 |  |  | 494 |
| &nbsp;&nbsp;&nbsp;Disability - Active Lives |  |  | 190 |  |  | 195 |
| &nbsp;&nbsp;&nbsp;Disability - Disabled Lives |  |  | 376 |  |  | 405 |
| &nbsp;&nbsp;&nbsp;Miscellaneous Reserves |  |  | 1319 |  |  | 1229 |
| **Total (Gross: Direct + Assumed)**  | 9596 | 84081 | 102047 | 9889 | 83480 | 102094 |
| Reinsurance Ceded | 5064 | 44491 | 59181 | 5356 | 45562 | 59901 |
| **Total (Net)**  | $4532 | $39590 | $42866 | $4533 | $37918 | $42193 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Separate Account - Guaranteed** | **Separate Account - Guaranteed** | **Separate Account - Guaranteed** | **Separate Account - Guaranteed** | **Separate Account - Guaranteed** | **Separate Account - Guaranteed** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Account Value** | **Cash Value** | **Reserve** | **Account Value** | **Cash Value** | **Reserve** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Subject to discretionary withdrawal, surrender values, or policy loans: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Term Policies with Cash Value | $— | $— | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;Universal Life |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Universal Life with Secondary Guarantees |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Indexed Universal Life |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Indexed Universal Life with Secondary Guarantees |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Indexed Life |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other Permanent Cash Value Life Insurance |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable Life |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable Universal Life | 1969 | 1969 | 1969 | 1878 | 1878 | 1878 |
| &nbsp;&nbsp;&nbsp;Miscellaneous Reserves |  |  |  |  |  |  |
| Not subject to discretionary withdrawals or no cash values: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Term Policies without Cash Value |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accidental Death Benefits |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Disability - Active Lives |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Disability - Disabled Lives |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Miscellaneous Reserves |  |  |  |  |  |  |
| **Total (Gross: Direct + Assumed)**  | 1969 | 1969 | 1969 | 1878 | 1878 | 1878 |
| Reinsurance Ceded |  |  |  |  |  |  |
| **Total (Net)**  | $1969 | $1969 | $1969 | $1878 | $1878 | $1878 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Separate Account - Nonguaranteed** | **Separate Account - Nonguaranteed** | **Separate Account - Nonguaranteed** | **Separate Account - Nonguaranteed** | **Separate Account - Nonguaranteed** | **Separate Account - Nonguaranteed** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Account Value** | **Cash Value** | **Reserve** | **Account Value** | **Cash Value** | **Reserve** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Subject to discretionary withdrawal, surrender values, or policy loans: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Term Policies with Cash Value | $— | $— | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;Universal Life |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Universal Life with Secondary Guarantees |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Indexed Universal Life |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Indexed Universal Life with Secondary Guarantees |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Indexed Life |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other Permanent Cash Value Life Insurance |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable Life | 14537 | 14535 | 14537 | 13712 | 13709 | 13712 |
| &nbsp;&nbsp;&nbsp;Variable Universal Life | 24385 | 24385 | 24385 | 22749 | 22749 | 22749 |
| &nbsp;&nbsp;&nbsp;Miscellaneous Reserves |  |  |  |  |  |  |
| Not subject to discretionary withdrawals or no cash values: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Term Policies without Cash Value |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accidental Death Benefits |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Disability - Active Lives |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Disability - Disabled Lives |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Miscellaneous Reserves |  |  |  |  |  |  |
| **Total (Gross: Direct + Assumed)**  | 38922 | 38920 | 38922 | 36461 | 36458 | 36461 |
| Reinsurance Ceded |  |  |  |  |  |  |
| **Total (Net)**  | $38922 | $38920 | $38922 | $36461 | $36458 | $36461 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** |
| | **General Account** | **Separate Account Guaranteed** | **Separate Account Nonguaranteed** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Reconciliation of total life actuarial reserves:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life and Accident & Health Annual Statement | $42866 | $— | $— | $42866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate Accounts Annual Statement |  | 1969 | 38922 | 40891 |
| **Total life actuarial reserves**  | $42866 | $1969 | $38922 | $83757 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** | **2024** |
| | **General Account** | **Separate Account Guaranteed** | **Separate Account Nonguaranteed** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Reconciliation of total life actuarial reserves:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life and Accident & Health Annual Statement | $42193 | $— | $— | $42193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate Accounts Annual Statement |  | 1878 | 36461 | 38339 |
| **Total life actuarial reserves**  | $42193 | $1878 | $36461 | $80532 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**20.&nbsp;&nbsp;&nbsp;&nbsp;FAIR VALUE OF ASSETS AND LIABILITIES**

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, common stocks and derivative contracts that trade on an active exchange market.

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: bonds (corporate public and private bonds, most government securities, certain asset-backed and mortgage-backed securities, etc.), certain common stock securities (mutual funds, which do not trade in active markets because they are not publicly available), short-term investments and certain cash equivalents (primarily commercial paper), and certain over-the-counter ("OTC") derivatives.

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 bonds and common stock securities, certain manually priced public common stock and bonds, certain commercial mortgage loans and certain highly structured OTC derivative contracts.

**Bonds carried at the lower of amortized cost or market value (NAIC 6 rated bonds)** - The fair values of the Company's public bonds are generally based on prices obtained from independent pricing services. Prices for each bond 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 service 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 bonds, which are primarily 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 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.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**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.

**Preferred stocks carried at the lower of amortized cost or market value** - Preferred stocks consist principally of publicly traded and privately traded preferred stock. The fair values of most publicly traded preferred stock securities are based on quoted market 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 preferred stock securities are determined using valuation and discounted cash flow models that require a substantial level of judgment. In determining the fair value of certain privately traded preferred stock the discounted cash flow model may also use unobservable inputs, which reflect the Company's assumptions about the inputs market participants would use in pricing the asset. Most privately traded preferred stock securities are classified within Level 3. Fair values of perpetual preferred stock based on observable market inputs are classified within Level 2. However, when prices from independent pricing services are based on indicative broker quotes as the directly observable market inputs become unavailable, the fair value of perpetual preferred stock is classified as Level 3.

**Common stocks carried at market value** - Common stocks consist principally of investments in common stocks of publicly traded companies, privately traded securities, as well as common stock mutual fund shares. The fair values of most publicly traded common stocks are based on quoted market 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 common stock 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. The fair values of common stocks are based on prices obtained from independent pricing services. These prices are then validated for reasonableness against recently traded market prices. Accordingly, these securities are generally classified within Level 2 in the fair value hierarchy.

**Derivative instruments** - Derivatives are recorded at fair value either as assets or liabilities within "Derivatives." The fair values of derivative contracts can be affected by changes in interest rates, foreign exchange rates, commodity prices, credit spreads, market volatility, expected returns, non-performance risk ("NPR"), liquidity and other factors. For derivative positions included within Level 3 of the fair value hierarchy, liquidity valuation adjustments are made to reflect the cost of exiting significant risk positions, and consider the bid-ask spread, maturity, complexity, and other specific attributes of the underlying derivative position.

The Company's exchange-traded futures may include Treasury futures 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.

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, credit default swaps, and "to be announced" ("TBA") forward contracts on highly rated mortgage-backed securities issued by U.S. government sponsored entities 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 the secured overnight financing rate ("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.

The majority of the Company's derivative agreements are with highly rated major international financial institutions. To reflect the market's perception of its own and the counterparty's NPR, the Company incorporates additional spreads over the secured overnight financing rate into the discount rate used in determining the fair value of OTC derivative assets and liabilities after netting of collateral. Rates used to discount expected cash flows to value OTC derivative assets reflect the terms of the Credit Support Annex.

Derivatives classified as Level 3 include structured products. These derivatives are valued based upon models, such as Monte Carlo simulation models and other techniques that utilize significant unobservable inputs. Level 3 methodologies are validated through periodic comparison of the Company's fair values to external broker-dealer values.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Separate account assets at fair value** - Separate account assets primarily include bonds, treasuries, common stock and mutual funds for which values are determined consistent with similar instruments described above under "Bonds carried at the lower of amortized cost or market value (NAIC 6 rated bonds)" and "Common Stocks carried at market value."

Effective January 1, 2018, the Company adopted changes to SSAP No. 100, "Fair Value" ("SSAP 100"), to allow NAV per share as a practical expedient to fair value either when specifically named in an SSAP or when specific conditions exist. This adoption removes the requirement to categorize within the fair value hierarchy all investments measured at net asset value per share (or its equivalent) as a practical expedient. As a result of the adoption of this guidance, certain separate account assets are no longer classified in the fair value hierarchy.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

(1)&nbsp;&nbsp;&nbsp;&nbsp;The table below presents the balances of assets and liabilities on a recurring and non-recurring basis measured at fair value as of December 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Net Asset Value (NAV)** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Assets at fair value** | | | | | |
| **Bonds:** | | | | | |
| Issuer Credit Obligations | $136 | $— | $16 | $— | $152 |
| **Cash, cash equivalents and short-term investments:** |  |  |  |  |  |
| Industrial and Misc |  |  |  |  |  |
| Parent, Subsidiaries and Affiliates |  | 2415 |  |  | 2415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Cash, cash equivalents and short-term investments**  |  | 2415 |  |  | 2415 |
| **Preferred stock:** |  |  |  |  |  |
| Industrial and Misc |  |  | 61 |  | 61 |
| **Common stock:** |  |  |  |  |  |
| Industrial and Misc | 951 | 141 | 3 |  | 1095 |
| **Derivative assets: (b)** |  |  |  |  |  |
| Currency swaps |  | 91 |  |  | 91 |
| Interest rate swaps |  | 1890 |  |  | 1890 |
| Total return swaps |  | 12 |  |  | 12 |
| Options |  | 52 |  |  | 52 |
| Forwards |  | 2 |  |  | 2 |
| Currency forwards |  | 3 |  |  | 3 |
| &nbsp;&nbsp; **Total Derivative assets**  |  | 2050 |  |  | 2050 |
| Securities lending reinvested collateral assets | 120 | 30 |  |  | 150 |
| **Separate account assets (a)**  | 9418 | 67663 | 349 | 18687 | 96117 |
| **Total assets at fair value**  | $10625 | $72299 | $429 | $18687 | $102040 |
| **Liabilities at fair value** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Derivative liabilities: (b)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Currency swaps | $— | 73 | $— | $— | $73 |
| &nbsp;&nbsp;&nbsp;Interest rate swaps |  | 2291 |  |  | 2291 |
| &nbsp;&nbsp;&nbsp;Total return swaps |  | 40 |  |  | 40 |
| &nbsp;&nbsp;&nbsp;Options |  | 23 |  |  | 23 |
| &nbsp;&nbsp;&nbsp;Forwards |  | 3 |  |  | 3 |
| &nbsp;&nbsp;&nbsp;Currency forwards |  | 12 |  |  | 12 |
| &nbsp;&nbsp; **Total Derivative liabilities**  |  | 2442 |  |  | 2442 |
| **Total liabilities at fair value**  | $— | $2442 | $— | $— | $2442 |

---

&nbsp;&nbsp;&nbsp;&nbsp;

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The table below presents the balances of assets and liabilities on a recurring and non-recurring basis measured at fair value as of December 31, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Net Asset Value (NAV)** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Assets at fair value** | | | | | |
| **Bonds:** | | | | | |
| Industrial and Misc | $135 | $— | $52 | $— | $187 |
| **Cash, cash equivalents and short-term investments:** |  |  |  |  |  |
| Industrial and Misc |  |  |  |  |  |
| Parent, Subsidiaries and Affiliates |  | 830 |  |  | 830 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Cash, cash equivalents and short-term investments**  |  | 830 |  |  | 830 |
| **Preferred stock:** |  |  |  |  |  |
| Industrial and Misc |  |  | 123 |  | 123 |
| **Common stock:** |  |  |  |  |  |
| Industrial and Misc | 747 | 143 | 174 |  | 1064 |
| **Derivative assets: (b)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency swaps |  | 225 |  |  | 225 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps |  | 2246 |  |  | 2246 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total return swaps |  | 21 |  |  | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;Options |  | 186 | 4 |  | 190 |
| &nbsp;&nbsp;&nbsp;Currency forwards |  | 91 |  |  | 91 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Derivative assets**  |  | 2769 | 4 |  | 2773 |
| Securities lending reinvested collateral assets |  | 226 |  |  | 226 |
| **Separate account assets (a)**  | 8201 | 65697 | 343 | 19483 | 93724 |
| **Total assets at fair value**  | $9083 | $69665 | $696 | $19483 | $98927 |
| **Liabilities at fair value** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Derivative liabilities: (b)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Currency swaps | $— | $14 | $— | $— | $14 |
| &nbsp;&nbsp;&nbsp; Interest rate swaps |  | 2512 |  |  | 2512 |
| &nbsp;&nbsp;&nbsp; Total return swaps |  | 12 |  |  | 12 |
| &nbsp;&nbsp;&nbsp; Options |  | 170 |  |  | 170 |
| &nbsp;&nbsp;&nbsp; Currency forwards |  | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Derivative liabilities**  |  | 2709 |  |  | 2709 |
| **Total liabilities at fair value**  | $— | $2709 | $— | $— | $2709 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;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 assets classified as Level 3 consist primarily of real estate and real estate investment funds. 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 Statements of Admitted Assets, Liabilities and Capital and Surplus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;&nbsp;Derivatives that are not held at fair value are excluded.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

(2)&nbsp;&nbsp;&nbsp;&nbsp;The tables below provide the following data as of December 31, 2025 and 2024:

&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp; Summary of the changes in fair value of Level 3 assets and liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;b. The portion of gains or losses included in surplus attributable to unrealized gains or losses related to those assets and liabilities.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Balance at 01/01/2025** | **Transfers into Level 3** | **Transfers out of Level 3** | **Total gains<br> (losses) included in Net Income** | **Total gains<br> (losses) included in Surplus** | **Purchases** | **Issues** | **Sales** | **Settlements** | **Balance at 12/31/2025** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Bonds:** | | | | | | | | | | |
| Industrial and Misc | $52 | $57 | $(69) | $1 | $(3) | $1 | $— | $— | $(23) | $16 |
| **Preferred stock:** |  |  |  |  |  |  |  |  |  |  |
| Industrial and Misc | 123 | 6 | 0 | -1 | -30 | 37 | 0 | -67 | -7 | 61 |
| **Common stock:** |  |  |  |  |  |  |  |  |  |  |
| Industrial and Misc | 174 | 0 | 0 | 29 | -15 | 0 | 0 | -185 | 0 | 3 |
| **Derivatives**  | 4 | 0 | 0 | 0 | -4 | 0 | 0 | 0 | 0 |  |
| **Separate account assets (a)**  | 343 | 15 | (24) | (8) | 24 | 264 |  | (210) | (54) | 349 |
| **Total Assets**  | $696 | $78 | $(93) | $21 | $(28) | $302 | $— | $(462) | $(84) | $429 |
| **Total Liabilities**  | $— | $— | $— | $— | $— | $— | $— | $— | $— | $— |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Balance at 01/01/2024** | **Transfers into Level 3** | **Transfers out of Level 3** | **Total gains<br> (losses) included in Net Income** | **Total gains<br> (losses) included in Surplus** | **Purchases** | **Issues** | **Sales** | **Settlements** | **Balance at 12/31/2024** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Bonds:** | | | | | | | | | | |
| Industrial and Misc | $47 | $93 | $(55) | $(16) | $(7) | $3 | $— | $— | $(13) | $52 |
| **Preferred stock:** |  |  |  |  |  |  |  |  |  |  |
| Industrial and Misc | 108 | 6 | (6) |  | 16 | 14 |  | (9) | (6) | 123 |
| **Common stock:** |  |  |  |  |  |  |  |  |  |  |
| Industrial and Misc | 264 | 30 |  | 31 | (31) | 1 |  | (121) |  | 174 |
| **Derivatives**  |  |  |  |  | 4 |  |  |  |  | 4 |
| **Separate account assets (a)**  | 1088 | 36 | (80) | 365 | (433) | 505 |  | (1111) | (27) | 343 |
| **Total Assets**  | $1507 | $165 | $(141) | $380 | $(451) | $523 | $— | $(1241) | $(46) | $696 |
| **Total Liabilities**  | $— | $— | $— | $— | $— | $— | $— | $— | $— | $— |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.&nbsp;&nbsp;&nbsp;&nbsp;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 Statement of Admitted Assets, Liabilities, and Capital and Surplus.

Unrealized gains (losses) for the period relating to Level 3 assets that were still held by the Company for General Account preferred and common stocks were ($43) million and $37 million as of December 31, 2025 and 2024, respectively.

Unrealized gains (losses) for the period relating to Level 3 assets that were still held by the Company for Separate Account assets were $16 million and ($13) million as of December 31, 2025 and 2024, respectively. Transfers resulted from further review of valuation methodologies for certain assets, which resulted in a change in classification.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

For nonrecurring fair value measurements, certain financial assets are measured at fair value on a non-recurring basis, such as certain bonds and preferred stock valued at the lower of cost or fair value, or investments that are impaired during the reporting period and recorded at fair value in the Company's Statements of Admitted Assets, Liabilities, and Capital and Surplus at December 31, 2025.

(3) &nbsp;&nbsp;&nbsp;&nbsp;The following table presents the carrying amounts and estimated fair values of the Company's financial instruments as of December 31, 2025:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Type of Financial Instrument** | **Aggregate Fair Value** | **Admitted Assets / <br>Liabilities** | **Level 1** | **Level 2** | **Level 3** | **NAV** | **Not Practicable (Carrying Value)** |
| **Assets:** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| &nbsp;&nbsp;Issuer Credit Obligations | $70513 | $76921 | $136 | $67493 | $2884 | $— | $— |
| &nbsp;&nbsp;Asset-Backed Securities | 8760 | 8839 | 10 | 7072 | 1678 |  |  |
| &nbsp;&nbsp;Unaffiliated preferred stock | 127 | 118 |  | 42 | 85 |  |  |
| &nbsp;&nbsp;Unaffiliated common stock | 1095 | 1095 | 951 | 141 | 3 |  |  |
| &nbsp;&nbsp;Mortgage loans | 18342 | 19050 |  |  | 18342 |  |  |
| &nbsp;&nbsp;Real estate | 388 | 254 |  |  | 388 |  |  |
| &nbsp;&nbsp;Contract loans | 2082 | 2082 |  |  | 2082 |  |  |
| &nbsp;&nbsp;Cash and short-term investments | 4323 | 4323 | 746 | 3576 | 1 |  |  |
| &nbsp;&nbsp;Derivative financial instruments | 2634 | 2649 | 4 | 2630 |  |  |  |
| &nbsp;&nbsp;Derivatives collateral | 254 | 254 |  | 254 |  |  |  |
| &nbsp;&nbsp;Other invested assets | 56 | 61 |  | 43 | 13 |  | 9 |
| &nbsp;&nbsp;Securities lending reinvested collateral assets | 9515 | 9486 | 124 | 8345 | 1046 |  |  |
| &nbsp;&nbsp;Separate accounts | 165143 | 167543 | 9449 | 118921 | 18086 | 18687 | 17 |
| **Liabilities:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Deposit-type contracts | $16479 | 17656 | 0 | 15439 | 1040 | 0 | 0 |
| &nbsp;&nbsp;Securities sold under agreement to repurchase | 5565 | 5565 |  | 5565 |  |  |  |
| &nbsp;&nbsp;Cash collateral held for loaned securities | 4606 | 4606 |  | 4606 |  |  |  |
| &nbsp;&nbsp;Derivative financial instruments | 3499 | 3091 | 18 | 3481 |  |  |  |
| &nbsp;&nbsp;Derivatives collateral | 458 | 458 | (1) | 459 |  |  |  |
| &nbsp;&nbsp;Separate account liabilities-investment contracts | 114395 | 114447 |  | 30987 | 83408 |  |  |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The following table presents the carrying amounts and estimated fair values of the Company's financial instruments as of December 31, 2024:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Type of Financial Instrument** | **Aggregate Fair Value** | **Admitted Assets / <br>Liabilities** | **Level 1** | **Level 2** | **Level 3** | **NAV** | **Not Practicable (Carrying Value)** |
| **Assets:** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| &nbsp;&nbsp;Bonds | $72000 | $80001 | $135 | $68663 | $3202 | $— | $— |
| &nbsp;&nbsp;Unaffiliated preferred stock | 213 | 188 |  | 48 | 165 |  |  |
| &nbsp;&nbsp;Unaffiliated common stock | 1064 | 1064 | 747 | 143 | 174 |  |  |
| &nbsp;&nbsp;Mortgage loans | 17103 | 18383 |  |  | 17103 |  |  |
| &nbsp;&nbsp;Real estate | 355 | 269 |  |  | 355 |  |  |
| &nbsp;&nbsp;Contract loans | 2007 | 2007 |  |  | 2007 |  |  |
| &nbsp;&nbsp;Cash and short-term investments | 3227 | 3228 | 1095 | 2113 | 19 |  |  |
| &nbsp;&nbsp;Derivative financial instruments | 3902 | 4054 | 3 | 3895 | 4 |  |  |
| &nbsp;&nbsp;Derivatives collateral | 444 | 444 |  | 444 |  |  |  |
| &nbsp;&nbsp;Other invested assets | 73 | 69 |  | 55 | 18 |  |  |
| &nbsp;&nbsp;Securities lending reinvested collateral assets | 8385 | 8384 | 123 | 7345 | 917 |  |  |
| &nbsp;&nbsp;Separate accounts | 160880 | 164941 | 8207 | 117058 | 16132 | 19483 |  |
| **Liabilities:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Deposit-type contracts | $14414 | $15097 | $— | $13247 | $1167 | $— | $— |
| &nbsp;&nbsp;Securities sold under agreement to repurchase | 4133 | 4133 |  | 4133 |  |  |  |
| &nbsp;&nbsp;Cash collateral held for loaned securities | 4890 | 4890 |  | 4890 |  |  |  |
| &nbsp;&nbsp;Derivative financial instruments | 3405 | 2883 | 16 | 3389 |  |  |  |
| &nbsp;&nbsp;Derivatives collateral | 700 | 700 |  | 700 |  |  |  |
| &nbsp;&nbsp;Separate account liabilities-investment contracts | 113449 | 113433 |  | 21454 | 91995 |  |  |

---

(4) &nbsp;&nbsp;&nbsp;&nbsp;The following table presents information on the Company's financial instruments not practicable to estimated fair value as of December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Type or Class of Financial Instrument** | **Carry Value (1)** | **Effective Interest Rate Percentage (2)** | **Maturity Date** | **Explanation** |
| **Assets:** | **(in millions)** | | | |
| &nbsp;&nbsp;&nbsp; Other Invested Assets | $9 | Various | Various | Residual Tranches at cost recovery method per SSAP 21. The Other Invested Assets consist of multiple investments, therefore there are multiple maturity dates: 12/17/2029, 02/12/2031, 06/15/2034, 10/22/2035, 10/20/2053, and 09/15/2060. |
| &nbsp;&nbsp;&nbsp; Separate Account Assets | $17 | Various | Various | Residual Tranches at cost recovery method per SSAP 21. The Separate Account Assets consist of multiple investments, therefore there are multiple maturity dates: 12/17/2029, 02/12/2031, 10/12/2031, 06/15/2034, and 09/15/2060. |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Bonds: fixed maturities (excluding NAIC 6 rated bonds)** - The fair values of public fixed maturity securities are generally based on prices from third-party pricing services, which are reviewed for reasonableness; however, for certain public fixed maturity securities and investments in private placement fixed maturity securities, this information is either not available or not reliable. For these public fixed maturity securities, the fair value is based on indicative quotes from brokers, if available, or determined using a discounted cash flow model or internally-developed models. For private fixed maturities, fair value is determined using a discounted cash flow model. In determining the fair value of certain fixed maturity securities, the discounted cash flow model may also use unobservable inputs, which reflect the Company's own assumptions about the inputs market participants would use in pricing the security.

**Mortgage 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, 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 appropriate credit spread and a significant component of the pricing process, are based on 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.

**Contract loans** - The Company's valuation technique for contract loans is to discount cash flows at the current contract loan coupon rate. Contract loans are fully collateralized by the cash surrender value of underlying insurance policies. As a result, the carrying value of the contract loans approximates the fair value.

**Cash, cash equivalents and short-term investments** - The Company believes that due to the short-term nature of certain assets, the carrying value approximates fair value. These assets include cash, cash equivalent instruments and certain short-term investments, which are recorded at amortized cost and are not securities.

**Other invested assets -** The estimated fair value of other invested assets is determined using the methodologies as described above for bonds, mortgage loans or short-term investments, including affiliated assets based on the nature of the investment. Excluded from the disclosure are those other invested assets that are not considered to be financial instruments subject to this disclosure including investments carried on the equity method.

**Deposit-type contracts & Separate account liabilities** - Only the portion of deposit-type contracts and separate account liabilities related to products that are investment contracts (those without mortality and morbidity risk) are reflected in the table above. For fixed deferred annuities, single premium endowments, 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 own NPR. For guaranteed investment contracts, funding agreements, structured settlements without life contingencies and other similar products, fair values are generally derived using discounted projected cash flows based on interest rates being offered for similar contracts with maturities consistent with those of the contracts being valued. 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. For defined contribution and defined benefit contracts and certain other products, the fair value is the market value of the assets supporting the liabilities.

**Securities sold under agreements to repurchase** - The Company receives collateral for selling securities under agreements to repurchase. Repurchase agreements are also generally short-term in nature, and therefore, the carrying amounts of these instruments approximate fair value.

**Cash collateral for loaned securities** - Cash collateral for loaned securities represents the collateral received or paid in connection with loaning or borrowing securities, similar to the securities sold under agreement to repurchase above. Due to the short-term nature of these transactions, the carrying value approximates fair value.

**Separate account liabilities-investment contracts** - Only the portion of separate account liabilities related to products that are investments contracts are reflected in the table above. Separate account liabilities are recorded at the amount credited to the contractholder, which reflects the change in fair value of the corresponding separate account assets including contractholder deposits less withdrawals and fees; therefore, carrying value approximates fair value.

Certain Separate Account investments are measured at fair value using the NAV per share (or its equivalent) practical expedient and have not been classified in the fair value hierarchy. Separate account assets using NAV as a practical expedient consist of joint venture and limited partnership interests in real estate, bond, hedge, insurance and other funds. All of these investments have individually varying investment strategies which also have a variety of redemption terms and conditions including certain fund interests that are restricted until maturity. The Company believes that using NAV as a practical expedient for these investments is a fair and close approximation of the investment's liquidation value.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Level 3 Assets by Price Source -** The table below presents the balances of Level 3 assets measured at fair value with their corresponding pricing sources for the years ended:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Internal (1)** | **External (2)** | **Total** | **Internal (1)** | **External (2)** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Corporate securities | $16 | $— | $16 | $52 | $— | $52 |
| Equity securities | 34 | 30 | 64 | 240 | 57 | 297 |

---

(1) Represents valuations which could incorporate internally-derived and market inputs. See below for additional information related to internally-developed valuation for significant items in the above table.

(2) Represents unadjusted prices from independent pricing services and independent non-binding broker quotes where pricing inputs are not readily available.

**Separate Account Level 3 Assets by Price Source** – The table below presents the balances of Level 3 assets measured at fair value with their corresponding pricing sources:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Internal** | **External** | **Total** | **Internal** | **External** | **Total** |
| | (in millions) | (in millions) | (in millions) | (in millions) | (in millions) | (in millions) |
| Corporate securities | $14 | $13 | $27 | $42 | $51 | $93 |
| Equity securities | 4 | 263 | 267 | 0 | 184 | $184 |
| Commercial mortgage Loans | 53 | 0 | 53 | 54 | 0 | $54 |
| OIA | 0 | 2 | 2 | 0 | 12 | $12 |

---

**Quantitative Information Regarding Internally-Priced Level 3 Assets** – The table below represents quantitative information on significant internally-priced Level 3 assets for the years ended:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Assets** | **Fair Value** | **Valuation Techniques** | **Unobservable Inputs** | **Range** |
| | **&nbsp;&nbsp;&nbsp;&nbsp;(in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;(in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;(in millions)** | |
| Corporate Securities | $16 | Discounted Cash Flow | Discount Rates | 20% |
|  |  | Liquidation | Orderly Liquidation Value | 27% |
|  |  | Other | Weighted Scenario Analysis |  |
| Equity Securities | $34 | Market Comparables | EBITDA multiples | 5.5x-7.0x |
|  |  | Discounted Cash Flow | Discount Rates | 40% |
|  |  | Other | NPV of Oil & Gas Reserves |  |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Assets** | **Fair Value** | **Valuation Techniques** | **Unobservable Inputs** | **Range** |
| | **&nbsp;&nbsp;&nbsp;&nbsp;(in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;(in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;(in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;(in millions)** |
| Corporate Securities | $45 | Discounted Cash Flow | Discount Rates | 18%-20% |
|  |  | Liquidation | Orderly Liquidation Value | 75% |
|  |  | Other | Weighted Scenario Analysis |  |
| Equity Securities | $18 | Market Comparables | EBITDA multiples | 5.5x-7x |
|  |  | Discounted Cash Flow | Discount Rates | 40% |

---

**Separate Account Quantitative Information Regarding Internally-Priced Level 3 Assets** – The table below represents quantitative information on significant internally-priced Level 3 assets for the years ended:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Assets** | **Fair Value** | **Valuation Techniques** | **Unobservable Inputs** | **Range** |
| | **&nbsp;&nbsp;&nbsp;&nbsp;(in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;(in millions)** | **&nbsp;&nbsp;&nbsp;&nbsp;(in millions)** | |
| Corporate Securities | $13 | Discounted Cash Flow | Discount Rates | 9.3-20% |
|  |  | Liquidation | Orderly Liquidation Value | 12-26.52% |
| Equity Securities | $4 | Other | Based on transaction value | 0 |
| Commercial Mortgage Loans | $53 | Liquidation | Orderly Liquidation Value | 1% |
|  |  | Discounted Cash Flow | Discount Rate | —% |
|  |  | Discounted Cash Flow | Spread | 136 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Assets** | **Fair Value** | **Valuation Techniques** | **Unobservable Inputs** | **Range** |
| | **(in millions)** | | | |
| Corporate Securities | $42 | Discounted Cash Flow | Discount Rates | 8.27-20% |
|  |  | Liquidation | Orderly Liquidation Value |  |
| Commercial Mortgage Loans | $54 | Liquidation | Orderly Liquidation Value | 1% |
|  |  | Discounted Cash Flow | Discount Rate |  |
|  |  | Discounted Cash Flow | Spread | 147 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**21.&nbsp;&nbsp;&nbsp;&nbsp;DIRECT PREMIUM WRITTEN/PRODUCED BY MANAGING GENERAL AGENTS/THIRD PARTY ADMINISTRATORS**

Direct premiums written by Managing General Agents/Third Party Administrators for the years ended December 31, 2025, 2024 and 2023 were $40 million, $104 million and $98 million, respectively.

 **22.&nbsp;&nbsp;&nbsp;&nbsp;RETROSPECTIVELY RATED CONTRACTS AND CONTRACTS SUBJECT TO REDETERMINATION**

The Company estimates accrued retrospective premium based on actual experience of the group and the Company's underwriting rules and experience rating practices. The Company records accrued retrospective premiums as an adjustment to written premium.

The amount of group life net premiums written by the Company that are subject to retrospective rating features was $1,237 million, $1,172 million and $1,188 million for the years ended December 31, 2025, 2024 and 2023, respectively. This represented 52%, 40% and 57% of the total net premiums written for group life for the years ended December 31, 2025, 2024 and 2023, respectively.

The amount of group accident and health net premiums written by the Company that are subject to retrospective rating features was $83 million, $59 million and $89 million for the years ended December 31, 2025, 2024 and 2023, respectively. This represented 4%, 3% and 5% of the total net premiums written for group accident and health for the years ended December 31, 2025, 2024 and 2023, respectively.

**23.&nbsp;&nbsp;&nbsp;&nbsp;PARTICIPATING POLICIES**

For the period ended December 31, 2025, 2024 and 2023, premiums under individual and group accident and health participating policies were $1.1 million, $0.4 million and $1 million, respectively, or less than 1% of total individual and group accident and health premiums earned. The Company accounts for its policyholder dividends based on actual experience of the group and a pre-determined dividend formula. The Company paid and accrued no dividends to policyholders as of December 31, 2025, 2024 and 2023.

For the period ended December 31, 2025, 2024 and 2023, premiums under individual life participating policies were $11 million, $9 million and $8 million, respectively, or less than 1% of total individual life premiums earned. The Company accounts for its policyholder dividends based upon the Plan of Reorganization for the Company's demutualization. The Company paid and accrued dividends in the amounts of ($17) million, $101 million and $74 million to policyholders and did not allocate any additional income to such policyholders as of December 31, 2025, 2024 and 2023, respectively.

**24.&nbsp;&nbsp;&nbsp;&nbsp;RESERVES FOR LIFE CONTRACTS AND DEPOSIT-TYPE CONTRACTS**

&nbsp;&nbsp;&nbsp;&nbsp;**Individual Life** 

Individual life insurance future policy benefit reserves are calculated using various methods, interest rates and mortality tables, which are prescribed by the Department and produce reserves that in the aggregate meet the requirements of state laws and regulations. Approximately 76% and 60% of individual life insurance reserves are calculated according to the CRVM, or methods which compare CRVM to policy cash values at December 31, 2025 and 2024, respectively. Approximately 24% and 40% at December 31, 2025 and 2024, respectively, of individual life insurance reserves are determined using the Net Level Premium ("NLP") method, or by using the greater NLP method reserve or the policy cash value.

Reserves for other supplementary benefits relative to the Company's life insurance contracts are calculated using methods, interest rates, and tables appropriate for the benefit provided.

As of December 31, 2025 and 2024, the Company does not have any direct written Universal Life product with secondary guarantee features. Business assumed from Hartford included some Universal Life products with secondary guarantees and the company's reserve methodology is compliant with appropriate state prescribed method. Reserves for these products were 100% ceded to its affiliate, PLAZ.

For life insurance contracts, the reserves are calculated based on the Standard Valuation Law and any variation from the state prescribed valuation method is taken into account in the Aggregate Sufficiency Testing.

For certain non-interest sensitive ordinary life plans, the Company waives deduction of deferred fractional premiums upon death of insured. Return of the unearned portion of the final premium is governed by the terms of the contract.

The reserve for waiver of the deduction of deferred fractional premiums upon death of the insured, and for return of a portion of final premium for periods beyond the date of death is at least as great as that computed using the minimum standards of mortality, interest and valuation method, taking into account the aforementioned treatment of premiums. The Company does not promise surrender values in excess of the legally computed reserves.

For certain policies, extra premiums are charged for substandard lives, in addition to the regular gross premiums for the true age. Mean reserves for traditional insurance products are determined by computing the regular mean reserve for the plan at the true age, and adding

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

one-half (1/2) of the extra premium charge for the year. For plans with explicit mortality charges, mean reserves are based on appropriate multiples of standard rates of mortality.

Reserves on policies issued at or subsequently subject to a premium for extra mortality or otherwise issued on lives classed as substandard for the plan of contract issued or on special class lives, including paid-up insurance, are reported according to mortality and interest bases applicable to the respective years of issue. In addition, an extra mortality reserve is held for ordinary life insurance policies classed as group conversions, or otherwise substandard, equal to the excess, if any, over a basic reserve, of a substandard reserve based on mortality rates appropriately increased over the standard class mortality rates. For all other such policies, the extra mortality reserve is one-half the appropriate net additional premium. Weekly premium policies issued at ages higher than true ages are valued according to the higher ages, as are Ordinary second-to-die policies.

As of December 31, 2025 and 2024, the Company had $1.9 billion and $2.0 billion, respectively, of insurance in force for which gross premiums for the life insurance benefits are less than the net premiums according to the standard of valuation required by the state, respectively.

Reserves calculated for reinsurance dollar denominated products are the CRVM reserve, floored at cash value, plus the unearned premium reserve. The CRVM reserve uses 1980 CSO or 2001 CSO mortality table, depending on the policy issue date. The valuation interest rates in most cases are set at the lower of (a) the maximum permitted valuation rate under the Standard Valuation Law and (b) the interest rate used to determine cash values and nonforfeiture values in the contract. The Active life reserves for the dollar denominated products waiver of premium (WP) benefit are determined using the NLP method. The NLP reserve is based on the 1952 Disability table. Disabled life reserves are based on the 73-76 OASDI continuance table.

**Group Life**

For group life insurance, approximately 29% and 27% of the reserves at December 31, 2025 and 2024, respectively, are associated with extended death benefits. These reserves are primarily calculated using 2023 Group Life Term Waiver Table at various interest rates. The remaining reserves are for group life fund accumulations and other miscellaneous reserves.

**Individual Annuities**

Reserves for individual deferred annuity contracts are determined based on CARVM. These reserves account for 63% and 65% of the individual annuity reserves at December 31, 2025 and 2024, respectively. Additional reserves are held for guaranteed minimum death and living benefits under deferred annuities. Reserves for the variable annuity contracts are determined based on the "CARVM for Variable Annuities" ("VACARVM"), which is a principal-based approach described in the VM-21.

The remaining reserves are equal to the present value of future payments using prescribed annuity mortality tables and interest rates. Additional reserves are held for guaranteed minimum death and living benefits under deferred and immediate annuities.

**Group Annuities**

Reserves for Structured Settlement Annuities are equal to the present value of future benefit payments. The valuation mortality table is the 1983-A Table. For contracts/certificates issued in 2017 and prior, the valuation interest rate is determined based on the issue year of the contract. Contracts issued in 2018 and later are subject to VM-22. Reserves for Structured Settlement Annuities issued in 2017 and prior follow Actuarial Guideline IX- B. Minimum requirements in all states other than New York, require the use of Type A interest rates defined by the dynamic Standard Valuation Law for the special lump sum calculations required under Guideline IX-B. New York requires Type B interest rates. The statutory reserves for all states are calculated using Type B interest rates (which are less than or equal to Type A rates) leading to excess reserves in non-New York states. Under Actuarial Guideline IX-B, payments in excess of 110% of the prior year's payments are considered lump sum payments and must be valued using the type A valuation interest rates with a guarantee duration equal to the number of years from the date of issue to the date of the lump sum payment. However, as described above, in order to comply with the minimum standards in certain states, structured settlement lump sums are valued using Type B rates which are lower than Type A rates. Payments that are made less frequently than annually or for a period of less than five years are also considered to be lump sums and are therefore valued using Type B rates. Payments other than lump sums are valued using the maximum statutory valuation interest rate appropriate for the guarantee duration of the Structured Settlement Annuity. Structured Settlement Annuities issued in 2018 and later are not subject to Actuarial Guideline IX-B, since this Guideline is superseded by VM-22.

As of September 1, 2023, 72% quota share of Structured Settlement Annuities inforce issued as of December 31, 2022, except for a small block of Liberty Mutual contracts, were ceded to Prismic Life Reinsurance. The ceded reserve also follows the same method as the gross reserve described above. Expense reserve was established on Day 1 of the reinsurance transaction equal to the present value of the expected shortfall between the Company's expected expenses and expense allowance paid by Prismic Life Reinsurance.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

As of July 1, 2025, PICA entered into a coinsurance with funds withheld agreement with Talcott Life Re to reinsure specified quota shares, ranging from 35% to 65%, of the SSA business issued on or after 7/1/2025. The ceded reserve also follows the same method as the gross reserve described above.

Reserves for annuities purchased under group contracts, now subject to VM-22, are equal to the present value of future payments, using prescribed and permitted mortality tables and interest rates. During 2021, the Company implemented a stochastic statutory reserving framework for certain of its newly issued group annuity contracts. This reserving framework is expected to produce reserves that are better aligned to the underlying risk profile of the impacted contracts. Reserves for other deposit funds reflect the contract deposit account or experience accumulation for the contract.

The reserve for guaranteed interest contracts, deposit funds and other liabilities without life contingencies equal either the present value of future payments discounted at the appropriate interest rate or the fund value, if greater. For deposit-type contracts with pre-defined cash flows and no withdrawal permitted prior to the contract maturity date, the reserves are determined using statutory maximum valuation rates determined monthly based on a reference rate.

**Accident & Health**

Claim reserves for Group Long Term Disability are discounted at interest rates ranging from 2.0% to 6.75% as of December 31, 2025. For non-buyout claims, the interest rate is based on the date of disability. For buyout claims, the interest rate is based on the effective date of the buyout. As of December 31, 2025 and 2024, Group Long Term Disability reserves are calculated using the 2012 GLTD Valuation Table blended with Prudential experience.

Individual Long Term Care active life reserves are one-year full preliminary term reserves based on 2014 Milliman Long Term Care Guidelines with modifications for morbidity, company experience with statutory prescribed caps for lapse, 1983 GAM for older products and 1994 GAM for the new generation products for mortality, and interest rates range from 3.0% to 4.5% depending on the effective date of coverage of each participant.

Group Long Term Care active life reserves are one-year full preliminary term reserves based on 2014 Milliman Long Term Care Guidelines with modifications for morbidity, company experience with statutory prescribed caps for lapse, 1983 GAM for older products and 1994 GAM for the new generation products and interest rates range from 3.0% to 5.5% depending on the effective date of coverage of each participant.

Individual and Group Long Term Care claim reserves represent the present value of benefits payable to insureds in benefit status using claim termination rates based on 2023 Milliman Long Term Care Guidelines with modification and interest rates range from 3.0% to 4.5% depending on the disablement date claim for each claimant.

MetLife Long Term Care active life reserves are using the 1983 GAM mortality table for disability years 2020 and prior and 1994 GAM mortality tables for disability year 2021 and beyond and interest rates ranging from 2.75% to 5.5%. For Disabled Life Reserve, MetLife Termination Experience is used with interest rates ranging from 3.0% to 4.0% as of December 31, 2025 and 2024. For claims incurred in 2021 or later, the rate is 3.0%.

Claim reserves for US Individual Disability are discounted using the 1964 CDT table with interest rate ranging from 3.5% and 6.0% for disability years 1988 and prior, the 1985 CIDA table with interest rate ranging from 3.5% and 6.0% for disability years 1989 through 2020, and the 2013 IDI table with interest rate ranging from 3.0% to 3.5% for disability year 2021 and beyond. This applies to both Active life and Disable life reserves as of December 31, 2025 and 2024.

Claim reserves for other Individual Guaranteed Renewable and Cancelable Accident and Health policies were not discounted as of December 31, 2025 and 2024.

**Other Disclosures**

The Company's actuarial reserves are also subject to asset adequacy testing analysis, which is performed in each business unit. In accordance with the Actuarial and Opinion Memorandum Regulation ("AOMR"), an evaluation is also performed across the Company to assess asset adequacy reserve requirements for the Company based on the Appointed Actuary's judgment. Asset adequacy reserves were $125 million and $375 million at December 31, 2025 and 2024, respectively.

Reserves have been determined using accepted actuarial methods applied on a basis consistent with the appropriate Standards of Practice as promulgated by the Actuarial Standards Board and with accounting practices prescribed or permitted by the Department. These actuarial methods have been applied on a basis consistent with the prior year's methods.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The Tabular Interest has been determined by formula except for individual unmatured annuities, group universal life insurance, group payout annuity reserves, and group annuity fund accumulation reserves, for which tabular interest has been determined from the basic data. The Tabular Less Actual Reserve Released has been determined by formula. The Tabular Cost has been determined by formula except for certain variable and universal life insurance policies for which tabular cost has been determined from the basic data for the calculation of policy reserves. For the determination of Tabular Interest on funds not involving life contingencies for each valuation rate of interest, the tabular interest is calculated as one hundredth of the product of such valuation rate of interest times the mean of the amount of funds subject to such valuation rate of interest held at the beginning and end of the year of valuation.

The Tabular Interest has been determined by formula as described in the instructions, except for variable life, where General Account Interest Credited is used. The Tabular less Actual Reserves Released has been determined by formula as described in the instructions. The Tabular Cost has been determined by formula as described in the instructions, except for certain variable and modified guaranteed life insurance policies, for which Tabular Cost has been determined by the fees charged on the General and Separate accounts, excluding premium loads.

Tabular Interest has been determined for the business assumed from Hartford by formula as described in the instructions, except for Variable Life, where General Account Interest Credited is used. The Tabular less Actual Reserves Released has been determined by formula as described in the instructions. The Tabular Cost has been determined by formula as described in the instructions, except for certain Variable and Modified Guaranteed life insurance policies, for which Tabular Cost has been determined by the fees charged on the General and Separate accounts, excluding premium loads.

As of December 31, 2023, the change in the general account reserves for group life due to a change in valuation basis was a decrease of $83 million which was due to the following:

---

| | | | |
|:---|:---|:---|:---|
| **Valuation Basis** | **Valuation Basis** | **Group Life** | **Total** |
| | | **(in millions)** | **(in millions)** |
| **Change From** | **Change To** | | |
| 2005 Modified Group Term Life Waiver Table | 2023 Group Term Life Waiver Table | $(83) | $(83) |
|  | **Total** | $(83) | $(83) |

---

As of December 31, 2025 and December 31, 2024, there was no change in the general account reserves as a result of a change in valuation basis.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**25.&nbsp;&nbsp;&nbsp;&nbsp;SEPARATE ACCOUNTS**

**25A.&nbsp;&nbsp;&nbsp;&nbsp;**The Company issues traditional variable annuity contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder, except to the extent of minimum guarantees made by the Company with respect to certain accounts. In addition, the Company issues variable life and variable universal life contracts where the Company contractually guarantees to the contract holder a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse ("no lapse guarantee").

In accordance with the products/transactions recorded within the Separate Accounts, some assets are considered legally insulated whereas others are not legally insulated from the General Account. The Company's Separate Account statement included legally insulated assets of $167 billion and $165 billion as of December 31, 2025, and 2024, respectively. The assets legally insulated from the General Account are attributed to the following products/transactions as of December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Product/Transaction** | **Legally Insulated Assets** | **Legally Insulated Assets** | **Separate Account Assets (Not Legally Insulated)** | **Separate Account Assets (Not Legally Insulated)** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| &nbsp;&nbsp;&nbsp;Pension Risk Transfer Group Annuity Contracts - Not reclassed to the General Account | $6323 | $6884 | $— | $— |
| &nbsp;&nbsp;&nbsp;Pension Risk Transfer Group Annuity Contracts - Reclassed to the General Account for GAAP | 73655 | 73124 | 259 | 208 |
| &nbsp;&nbsp;Group Annuity Contracts - Not reclassed to the General Account | 34377 | 33293 | 11 | 9 |
| &nbsp;&nbsp;Group Annuity Contracts - Reclassed to the General Account for GAAP | 166 | 132 |  | 1 |
| &nbsp;&nbsp;Group Variable Universal Life | 191 | 180 |  |  |
| &nbsp;&nbsp;Private Placement Group Flexible Premium Variable Life Insurance Contract | 36019 | 35372 | 10 | 9 |
| &nbsp;&nbsp;Registered Group Flexible Premium Variable Life Insurance Contract | 9 | 5 |  |  |
| &nbsp;&nbsp;Variable Life | 14767 | 13931 |  |  |
| &nbsp;&nbsp;Variable Annuity | 1753 | 1791 | 2 | 2 |
| &nbsp;&nbsp;**Total** <sup>(1)</sup>  | $167260 | $164712 | $282 | $229 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup>In addition to assets supporting contract holder liabilities, the assets column above includes assets supporting other liabilities.

Some Separate Account liabilities are guaranteed by the General Account. As of December 31, 2025, and 2024, the Company's General Account had a maximum guarantee for Separate Account liabilities of $3.6 billion and $3.7 billion, respectively. To compensate the General Account for the risk taken, the Separate Account, excluding those assessed as a component of an overall insurance charge (where it is impractical to bifurcate each underlying charge), has paid risk charges of $17 million, $18 million and $19 million as of December 31, 2025, 2024 and 2023, respectively.

The Company's General Account has paid $9 million, $16 million and $22 million towards Separate Account guarantees for the years ended December 31, 2025, 2024 and 2023, respectively.

The Company engages in securities lending transactions within the Separate Account. In accordance with such transactions conducted from the Separate Account, the Company's securities lending policies and procedures are not materially different from the General Account policies and procedures, except that certain collateral is not included in assets and cash collateral held for loaned securities. For the period ended December 31, 2025 and 2024, the market value of loaned securities within the Separate Accounts was $3.4 billion and $3.2 billion, respectively.

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**25B.&nbsp;&nbsp;&nbsp;&nbsp;General Nature and Characteristics of Separate Accounts**

Separate Accounts assets and liabilities represent segregated funds, which are administered for pension and policyholders. The assets consist of common stocks, long-term bonds, real estate, mortgages and short-term investments. The liabilities consist of reserves established to meet withdrawal and future benefit payment contractual provisions. Investment risks associated with market value changes are generally borne by the policyholders, except to the extent of minimum guarantees made by the Company with respect to certain accounts.

The following table provides the Company's separate account premiums, considerations or deposits and reserves as of December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** |
| | **<br>Nonindexed<br>Guarantee Less<br>than/equal to 4%** | **<br>Nonindexed<br>Guarantee<br>more than 4%** | **<br>Nonguaranteed<br>Separate<br>Accounts** | **<br>Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Premiums, considerations or deposits for period ended 12/31/2025 | $144 | $3439 | $10745 | $14328 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reserves as of 12/31/2025 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; For accounts with assets at: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market Value | $8414 | $1604 | $56353 | $66371 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortized Cost | 30770 | 37514 | 16359 | 84643 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Reserves**  | $39184 | $39118 | $72712 | $151014 |
| &nbsp;&nbsp;&nbsp;&nbsp; By withdrawal characteristics |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to discretionary withdrawal: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With MV adjustment | $1205 | $1453 | $— | $2658 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At book value without MV adjustment and with current surrender charge of 5% or more |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At market value | 999 | 151 | 56353 | 57503 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At book value without MV adjustment and with current surrender charge of less than 5% | 14 |  | 16359 | 16373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 2218 | 1604 | 72712 | 76534 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not subject to discretionary withdrawal | 36966 | 37514 |  | 74480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total**  | $39184 | $39118 | $72712 | $151014 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The following table provides the Company's separate account premiums, considerations or deposits and reserves as of December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2024** | **2024** | **2024** | **2024** |
| | **<br>Nonindexed<br>Guarantee Less<br>than/equal to 4%** | **<br>Nonindexed<br>Guarantee<br>more than 4%** | **<br>Nonguaranteed<br>Separate<br>Accounts** | **<br>Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Premiums, considerations or deposits for period ended 12/31/2024 | $26 | $16405 | $17012 | $33443 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reserves as of 12/31/2024 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; For accounts with assets at: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market Value | $9114 | $1156 | $53619 | $63889 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortized Cost | 30907 | 38250 | 15559 | 84716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Reserves**  | $40021 | $39406 | $69178 | $148605 |
| &nbsp;&nbsp;&nbsp;&nbsp; By withdrawal characteristics |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to discretionary withdrawal: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With MV adjustment | $1625 | $1038 | $— | $2663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At book value without MV adjustment and with current surrender charge of 5% or more |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At market value | 1129 | 118 | 53619 | 54866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At book value without MV adjustment and with current surrender charge of less than 5% | 12 |  | 15559 | 15571 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 2766 | 1156 | 69178 | 73100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not subject to discretionary withdrawal | 37255 | 38250 |  | 75505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total**  | $40021 | $39406 | $69178 | $148605 |

---

Transfers as reported in the Summary of Operations of the Separate Accounts Statement as of December 31:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | **(in millions)** | **(in millions)** | **(in millions)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers to Separate Accounts | $14005 | $33013 | $13355 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfers from Separate Accounts | 21045 | 27931 | 19488 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net transfers to (from) Separate Accounts**  | $(7040) | $5082 | $(6133) |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**NOTES TO STATUTORY FINANCIAL STATEMENTS**

**DECEMBER 31, 2025, 2024 AND 2023**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**26. RECONCILIATION BETWEEN AUDITED STATUTORY FINANCIAL STATEMENTS AND THE ANNUAL STATEMENT FILED WITH THE STATE OF DOMICILIARY**

There were no differences between the Annual Statement filed with the Department and the audited statutory financial statements as of December 31, 2025 and December 31, 2023.

The following table presents amounts as reported in the Annual Statement filed with the Department and the adjustments made to the audited statutory financial statements as of December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
| | **Annual Statement** | **Adjustment** | **Audited Statutory Financial Statements** |
| | **(in millions)** | **(in millions)** | **(in millions)** |
| **Statements of Cash Flows:** | | | |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** | | | |
| Proceeds from investments sold, matured or repaid |  |  |  |
| &nbsp;&nbsp;&nbsp;Bonds | $15234 | $(7945) | $7289 |
| &nbsp;&nbsp;&nbsp;Mortgage loans on real estate | 3178 | (876) | 2302 |
| &nbsp;&nbsp;&nbsp;Miscellaneous proceeds | 122 | 517 | 639 |
| Payments for investments acquired |  |  |  |
| &nbsp;&nbsp;&nbsp;Miscellaneous applications | 9022 | (8304) | 718 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**ANNUAL STATEMENT SCHEDULE 1 - SELECTED FINANCIAL DATA** 

**FOR THE YEAR ENDED DECEMBER 31, 2025**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

The accompanying supplemental schedules and interrogatories present selected financial data as of December 31, 2025 and for the year then ended for purposes of complying with the NAIC Annual Statement Instructions and the NAIC SAP. They agree to or are included in the amounts reported in the Company's 2025 Statutory Annual Statement as filed with NJDOBI. Captions not presented are not applicable to the Company.

---

| | |
|:---|:---|
| | **(in millions)** |
| **Investment Income Earned:** | |
| U.S. Government Bonds | $252 |
| Other bonds (unaffiliated) | 3707 |
| Bonds of affiliates | 150 |
| Preferred stocks (unaffiliated) | 40 |
| Preferred stocks of affiliates |  |
| Common stocks (unaffiliated) | 19 |
| Common stocks of affiliates | 194 |
| Mortgages loans | 836 |
| Real estate | 66 |
| Premium notes, policy loans and liens | 91 |
| Cash, cash equivalents and short-term investments | 217 |
| Derivative instruments | 218 |
| Other invested assets | 779 |
| Aggregate write-ins for investment income | 91 |
| Gross investment income | $6660 |
| **Real Estate Owned - Book Value less Encumbrances**  | $254 |
| **Mortgage Loans - Carrying Value:** |  |
| Agricultural mortgages | $3530 |
| Residential mortgages | 897 |
| Commercial mortgages | 15488 |
| Mezzanine loans | 105 |
| Total mortgage loans | $20020 |
| **Mortgage Loans by Standing - Carrying Value:** |  |
| Good standing | $19480 |
| Good standing with restructured terms | 60 |
| Interest overdue more than three months, not in foreclosure | 239 |
| Foreclosure in process | 241 |
| Total mortgage loans | $20020 |
| Other Long Term Assets - Statement Value | $9469 |
| **Bonds and Stocks of Parents, Subsidiaries and Affiliates - Book Value:** |  |
| Bonds | $3251 |
| Preferred stocks | $— |
| Common stocks | $12007 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**ANNUAL STATEMENT SCHEDULE 1 - SELECTED FINANCIAL DATA** 

**FOR THE YEAR ENDED DECEMBER 31, 2025**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | |
|:---|:---|
| | **(in millions)** |
| **Bonds, Short-Term Investments, and Cash Equivalents by NAIC Designation and Maturity:** | |
| **Bonds by Maturity - Statement Value:** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Due within one year or less | $7001 |
| &nbsp;&nbsp;&nbsp;&nbsp;Over 1 year through 5 years | 23662 |
| &nbsp;&nbsp;&nbsp;&nbsp;Over 5 years through 10 years | 18417 |
| &nbsp;&nbsp;&nbsp;&nbsp;Over 10 years through 20 years | 19353 |
| &nbsp;&nbsp;&nbsp;&nbsp;Over 20 years | 26133 |
| &nbsp;&nbsp;&nbsp;&nbsp;No Maturity Date | 136 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total by Maturity | $94702 |
| **Bonds by NAIC Designation - Statement Value:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;NAIC 1 | $53884 |
| &nbsp;&nbsp;&nbsp;&nbsp;NAIC 2 | 36070 |
| &nbsp;&nbsp;&nbsp;&nbsp;NAIC 3 | 2895 |
| &nbsp;&nbsp;&nbsp;&nbsp;NAIC 4 | 1293 |
| &nbsp;&nbsp;&nbsp;&nbsp;NAIC 5 | 465 |
| &nbsp;&nbsp;&nbsp;&nbsp;NAIC 6 | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total by NAIC Designation | $94702 |
| Total Bonds Publicly Traded | $59264 |
| Total Bonds Privately Placed | $35438 |
| **Preferred Stocks - Statement Value**  | $118 |
| **Common Stocks - Market Value**  | $13102 |
| **Short-Term Investments - Book Value**  | $346 |
| **Options, Caps & Floors Owned - Statement Value**  | $52 |
| **Options, Caps & Floors Written and In Force - Statement Value**  | $(23) |
| **Collar, Swap & Forward Agreements Open - Statement Value**  | $(520) |
| **Futures Contracts Open - Current Value**  | $32 |
| **Cash on Deposit**  | $619 |
| **Life Insurance in Force:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial | $1674 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary | $896521 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Life | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Group Life | $2280252 |
| **Amount of Accidental Death Insurance in Force Under Ordinary Policies**  | $22716 |
| **Life Insurance Policies with Disability Provisions in Force:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial | $1567 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ordinary | $27593 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Life | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Group Life | $863684 |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**ANNUAL STATEMENT SCHEDULE 1 - SELECTED FINANCIAL DATA** 

**FOR THE YEAR ENDED DECEMBER 31, 2025**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | |
|:---|:---|
| | **(in millions)** |
| **Supplementary Contracts in Force:** | |
| Ordinary - Not Involving Life Contingencies |  |
| Amount on Deposit | $2089 |
| Income Payable | $— |
| Ordinary - Involving Life Contingencies Income Payable | $— |
| Group - Not Involving Life Contingencies |  |
| Amount on Deposit | $1641 |
| Income Payable | $81 |
| Group - Involving Life Contingencies Income Payable | $21 |
| **Annuities:** |  |
| **Ordinary** |  |
| Immediate - Amount of Income Payable | $188 |
| Deferred - Fully Paid Account Balance | $17887 |
| Deferred - Not Fully Paid Account Balance | $148 |
| **Group** |  |
| Amount of Income Payable | $1094 |
| Fully Paid Account Balance | $3635 |
| Not Fully Paid Account Balance | $— |
| **Accident and Health Insurance - Premiums in Force:** |  |
| Other | $243 |
| Group | $2051 |
| Credit | $— |
| **Deposit Funds and Dividend Accumulations:** |  |
| Deposit Funds - Account Balance | $13854 |
| Dividend Accumulations - Account Balance | $72 |
| **Claim Payments 2025:** |  |
| Group Accident and Health |  |
| 2025 | $532 |
| 2024 | $822 |
| 2023 | $925 |
| Other Accident & Health |  |
| 2025 | $18 |
| 2024 | $69 |
| 2023 | $116 |
| Other Coverages that use developmental methods to calculate claims reserves |  |
| 2025 | $— |
| 2024 | $— |
| 2023 | $— |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**SUPPLEMENTAL INVESTMENTS RISKS INTERROGATORIES SCHEDULE**

**FOR THE YEAR ENDED DECEMBER 31, 2025** 

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | |
|:---|:---|
| | **(in millions)** |
| **Total admitted assets as reported in the Company's Annual Audited Statement:** | $158270 |

---

The ten largest exposures, by investment category, to a single issue, borrower, or investment, excluding U.S. government, U.S. government agency securities and those U.S. government money market funds listed in the Appendix to the *SVO Purposes and Procedures Manual* as exempt, property occupied by the Company, and policy loans:

---

| | | | |
|:---|:---|:---|:---|
| **Issuer** | &nbsp;&nbsp;**Investment Category** | **Book Value** | **Percentage of Total Admitted Assets** |
| | | **($ in millions)** | **($ in millions)** |
| Pruco Life Insurance Co. | Affiliated common stock | $5821 | 3.7% |
| DRYDEN CORE FUND MM SER MMMF | Common stock, cash equivalent, cash | $2513 | 1.6% |
| Ironbound Fund LLC | Joint Venture Interests - affiliated common stock | $1243 | 0.8% |
| Passaic Fund LLC | Joint Venture Interests - affiliated common stock | $1088 | 0.7% |
| Prudential Realty Secs | Long term bond | $1021 | 0.6% |
| Prudential Impact Investments | Joint Venture Interests - affiliated common stock | $715 | 0.5% |
| Prudential Realty Securities, Inc. | Common stock | $553 | 0.3% |
| GOLDMAN SACHS | Long term bond, cash equivalent | $493 | 0.3% |
| VANGUARD INDEX FDS | Common stock | $477 | 0.3% |
| Freddie Mac Military Housing B | Long term bond | $472 | 0.3% |

---

**Total admitted assets held in bonds and preferred stocks by NAIC rating:**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Bonds** | **Book Value** | **Percentage of Total Admitted Assets** | **Preferred Stock** | **Book Value** | **Percentage of Total Admitted Assets** |
| **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| NAIC-1 | $53884 | 34.0% | NAIC-1 | $35 | 0.0% |
| NAIC-2 | $36070 | 22.8% | NAIC-2 | $— | 0.0% |
| NAIC-3 | $2895 | 1.8% | NAIC-3 | $6 | 0.0% |
| NAIC-4 | $1293 | 0.8% | NAIC-4 | $— | 0.0% |
| NAIC-5 | $465 | 0.3% | NAIC-5 | $53 | 0.0% |
| NAIC-6 | $95 | 0.1% | NAIC-6 | $24 | 0.0% |

---

**Assets held in foreign investments:**

---

| | | |
|:---|:---|:---|
| Total admitted assets held in foreign investments | $25626 | 16.2% |
| Foreign-currency-denominated investments | $13792 | 8.7% |
| Insurance liabilities denominated in that same foreign currency | $— |  |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**SUPPLEMENTAL INVESTMENTS RISKS INTERROGATORIES SCHEDULE**

**FOR THE YEAR ENDED DECEMBER 31, 2025** 

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | |
|:---|:---|:---|
| | **Book Value** | **Percentage of Total<br>Admitted Assets** |
| | **($ in millions)** | **($ in millions)** |
| **Aggregate foreign investment exposure categorized by NAIC sovereign rating:** | | |
| Countries rated NAIC-1 | $22236 | 14.0% |
| Countries rated NAIC-2 | $3013 | 1.9% |
| Countries rated NAIC-3 or below | $377 | 0.2% |
| **Largest foreign investment exposures by country, categorized by the country's NAIC sovereign designation:** | **Largest foreign investment exposures by country, categorized by the country's NAIC sovereign designation:** | **Largest foreign investment exposures by country, categorized by the country's NAIC sovereign designation:** |
| **Countries rated NAIC-1:** |  |  |
| Country: United Kingdom | $6336 | 4.0% |
| Country: Cayman Islands | $3865 | 2.4% |
| **Countries rated NAIC- 2:** |  |  |
| Country: Italy | $1530 | 1.0% |
| Country: Mexico | $732 | 0.5% |
| **Countries rated NAIC-3 or below:** |  |  |
| Country: Brazil | $220 | 0.1% |
| Country: Turkey | $68 | 0.0% |
| **Aggregate unhedged foreign currency exposure:** | $1044 | 0.7% |
| **Aggregate unhedged foreign currency exposure categorized by NAIC sovereign rating:** | **Aggregate unhedged foreign currency exposure categorized by NAIC sovereign rating:** | **Aggregate unhedged foreign currency exposure categorized by NAIC sovereign rating:** |
| Countries rated NAIC-1 | $786 | 0.5% |
| Countries rated NAIC-2 | $50 | 0.0% |
| Countries rated NAIC-3 or below | $208 | 0.1% |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**SUPPLEMENTAL INVESTMENTS RISKS INTERROGATORIES SCHEDULE**

**FOR THE YEAR ENDED DECEMBER 31, 2025** 

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | |
|:---|:---|:---|
| | **Book Value** | **Percentage of Total<br>Admitted Assets** |
| | **($ in millions)** | **($ in millions)** |
| **Two largest unhedged foreign currency exposures to a single country, categorized by NAIC sovereign rating:** | **Two largest unhedged foreign currency exposures to a single country, categorized by NAIC sovereign rating:** | **Two largest unhedged foreign currency exposures to a single country, categorized by NAIC sovereign rating:** |
| **Countries rated NAIC-1:** | | |
| Country 1: Ireland | $241 | 0.2% |
| Country 2: United Kingdom | $234 | 0.1% |
| **Countries rated NAIC-2:** |  |  |
| Country 1: Italy | $36 | 0.0% |
| Country 2: Mexico | $12 | 0.0% |
| **Countries rated NAIC-3 or below:** |  |  |
| Country 1: Brazil | $208 | 0.1% |

---

---

| | | | |
|:---|:---|:---|:---|
| **The ten largest non-sovereigns (i.e., non-governmental) foreign issues, by NAIC rating:** | **The ten largest non-sovereigns (i.e., non-governmental) foreign issues, by NAIC rating:** | **The ten largest non-sovereigns (i.e., non-governmental) foreign issues, by NAIC rating:** | **The ten largest non-sovereigns (i.e., non-governmental) foreign issues, by NAIC rating:** |
| **Issuer** | **NAIC Designation** | **Amount** | **Percentage of Total<br>Admitted Assets** |
| | | **($ in millions)** | **($ in millions)** |
| Scottish Hydro Electric Trans | 1 | $292 | 0.2% |
| Ferrero International S.A. | 1 | $236 | 0.1% |
| Ichthys LNG Pty Ltd | 1 | $228 | 0.1% |
| MaxamCorp | 1 | $212 | 0.1% |
| Pruservicos Participacoes Ltda | 3 and below | $208 | 0.1% |
| VTG Finance | 1 | $195 | 0.1% |
| Rubis Energie S.A.S. | 1 | $162 | 0.1% |
| Montea NV | 1 | $158 | 0.1% |
| Puratos Group NV | 1 | $157 | 0.1% |
| Phoenix Natural Gas PP Finance | 1 | $155 | 0.1% |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**SUPPLEMENTAL INVESTMENTS RISKS INTERROGATORIES SCHEDULE**

**FOR THE YEAR ENDED DECEMBER 31, 2025** 

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | |
|:---|:---|:---|
| **The ten largest equity interests (including investments in shares of mutual funds, preferred stocks, publicly traded equity securities, and other equity securities and excluding money market and bond mutual funds listed in the Appendix to the SVO Purposes and Procedures Manual as exempt or Class 1):** | **The ten largest equity interests (including investments in shares of mutual funds, preferred stocks, publicly traded equity securities, and other equity securities and excluding money market and bond mutual funds listed in the Appendix to the SVO Purposes and Procedures Manual as exempt or Class 1):** | **The ten largest equity interests (including investments in shares of mutual funds, preferred stocks, publicly traded equity securities, and other equity securities and excluding money market and bond mutual funds listed in the Appendix to the SVO Purposes and Procedures Manual as exempt or Class 1):** |
| **The ten largest equity interests (including investments in shares of mutual funds, preferred stocks, publicly traded equity securities, and other equity securities and excluding money market and bond mutual funds listed in the Appendix to the SVO Purposes and Procedures Manual as exempt or Class 1):** | **The ten largest equity interests (including investments in shares of mutual funds, preferred stocks, publicly traded equity securities, and other equity securities and excluding money market and bond mutual funds listed in the Appendix to the SVO Purposes and Procedures Manual as exempt or Class 1):** | **The ten largest equity interests (including investments in shares of mutual funds, preferred stocks, publicly traded equity securities, and other equity securities and excluding money market and bond mutual funds listed in the Appendix to the SVO Purposes and Procedures Manual as exempt or Class 1):** |
| | **Book Value** | **Percentage of Total<br>Admitted Assets** |
| | **($ in millions)** | **($ in millions)** |
| Pruco Life Insurance Company | $5821 | 3.7% |
| Colico Inc | $2441 | 1.5% |
| Orchard Street Acres Inc. | $1831 | 1.2% |
| Ironbound Fund LLC | $1243 | 0.8% |
| Passaic Fund LLC | $1088 | 0.7% |
| Prudential Impact Investments Private Equity LLC | $715 | 0.5% |
| Colico II Inc | $660 | 0.4% |
| Prudential Realty Securities, Inc. | $553 | 0.3% |
| VANGUARD INDEX FDS | $477 | 0.3% |
| ISHARES | $404 | 0.3% |

---

---

| | | | |
|:---|:---|:---|:---|
| **The ten largest fund managers of nonaffiliated, privately placed equities:** | **The ten largest fund managers of nonaffiliated, privately placed equities:** | **The ten largest fund managers of nonaffiliated, privately placed equities:** | **The ten largest fund managers of nonaffiliated, privately placed equities:** |
| | **Total Invested** | **Diversified** | **Nondiversified** |
| | **(in millions)** | **(in millions)** | **(in millions)** |
| Warburg Pincus Global Growth 14, L.P. | $307 | $307 | $— |
| PRISA III Fund LP - PRP | $195 | $195 | $— |
| Federal Home Loan Bank of NY | $141 | $— | $141 |
| Lion Industrial Properties, L.P. | $117 | $117 |  |
| WP Dynasty Holdings I, L.P. | $108 | $108 | $— |
| Arlington Capital Partners IV, L.P. | $66 | $66 | $— |
| Genstar Capital Partners VIII, L.P. | $63 | $63 |  |
| Arlington Capital Partners V, L.P. | $63 | $63 | $— |
| Genstar Capital Partners IX, L.P. | $50 | $50 | $— |
| M31 Navigator Fund LP | $49 | $49 | $— |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**SUPPLEMENTAL INVESTMENTS RISKS INTERROGATORIES SCHEDULE**

**FOR THE YEAR ENDED DECEMBER 31, 2025** 

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | |
|:---|:---|:---|:---|
| **The ten largest aggregate mortgage interests. The aggregate mortgage interest represents the combined value of all mortgages secured by the same property or same group of properties:** | **The ten largest aggregate mortgage interests. The aggregate mortgage interest represents the combined value of all mortgages secured by the same property or same group of properties:** | **The ten largest aggregate mortgage interests. The aggregate mortgage interest represents the combined value of all mortgages secured by the same property or same group of properties:** | **The ten largest aggregate mortgage interests. The aggregate mortgage interest represents the combined value of all mortgages secured by the same property or same group of properties:** |
| **The ten largest aggregate mortgage interests. The aggregate mortgage interest represents the combined value of all mortgages secured by the same property or same group of properties:** | **The ten largest aggregate mortgage interests. The aggregate mortgage interest represents the combined value of all mortgages secured by the same property or same group of properties:** | **The ten largest aggregate mortgage interests. The aggregate mortgage interest represents the combined value of all mortgages secured by the same property or same group of properties:** | **The ten largest aggregate mortgage interests. The aggregate mortgage interest represents the combined value of all mortgages secured by the same property or same group of properties:** |
| **Mortgage Interest** | **Loan Type** | **Book Value** | **Percentage of Total<br>Admitted Assets** |
| | | **($ in millions)** | **($ in millions)** |
| William H. Gates,III | AG | $444 | 0.3% |
| Assemi Group | AG | $185 | 0.1% |
| The Wonderful Company, LLC | AG | $184 | 0.1% |
| Clarion Partners | COMM | $177 | 0.1% |
| Arbejdsmarkedets Tillægspension (ATP) | AG | $173 | 0.1% |
| C.J. SEGERSTROM & SONS | COMM | $167 | 0.1% |
| Bain Capital Real Estate, LP | COMM | $165 | 0.1% |
| Stockbridge Capital Group, LLC | COMM | $148 | 0.1% |
| Brewster Heights Packing and Orchards, LP | AG | $148 | 0.1% |
| Scape Living PLC | COMM | $145 | 0.1% |

---

---

| | | |
|:---|:---|:---|
| **Amount and percentage of the reporting entity's total admitted assets held in the following categories of mortgage loans:** | **Amount and percentage of the reporting entity's total admitted assets held in the following categories of mortgage loans:** | **Amount and percentage of the reporting entity's total admitted assets held in the following categories of mortgage loans:** |
| Construction loans | $40 | 0.0% |
| Mortgage loans over 90 days past due | $239 | 0.2% |
| Mortgage loans in the process of foreclosure | $241 | 0.2% |
| Mortgage loans foreclosed | $— | 0.0% |
| Restructured mortgage loans | $60 | 0.0% |

---

**Aggregate mortgage loans having the following loan–to-value ratios as determined from the most current appraisal as of the annual statement date:**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Residential** | **Residential** | **Commercial** | **Commercial** | **Agricultural** | **Agricultural** |
|<br>**Loan-to-Value** | **Carrying Value** | **Percentage** | **Carrying Value** | **Percentage** | **Carrying Value** | **Percentage** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Above 95% | $— | 0.0% | $350 | 0.2% | $268 | 0.2% |
| 91% to 95% | $— | 0.0% | $132 | 0.1% | $— | 0.0% |
| 81% to 90% | $— | 0.0% | $837 | 0.5% | $4 | 0.0% |
| 71% to 80% | $421 | 0.3% | $1791 | 1.1% | $2 | 0.0% |
| Below 70% | $476 | 0.3% | $12483 | 7.9% | $3256 | 2.1% |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**SUPPLEMENTAL INVESTMENTS RISKS INTERROGATORIES SCHEDULE**

**FOR THE YEAR ENDED DECEMBER 31, 2025** 

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At Year-End** | **At Year-End** | **(UNAUDITED) At End of Each Quarter** | **(UNAUDITED) At End of Each Quarter** | **(UNAUDITED) At End of Each Quarter** |
| | **Book Value** | **Percentage** | **1**<sup>st</sup> **Quarter Book Value** | **2**<sup>nd</sup> **Quarter Book Value** | **3**<sup>rd</sup> **Quarter Book Value** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Securities lending (do not include assets held as collateral for such transactions) | $4606 | 2.9% | $4804 | $4301 | $4301 |
| Repurchase agreements | $6158 | 3.0% | $5367 | $5839 | $5963 |
| Reverse repurchase agreements | $— | 0.0% | $— | $— | $— |
| Dollar repurchase agreements | $— | 0.0% | $— | $— | $— |
| Dollar reverse agreements | $— | 0.0% | $— | $— | $— |

---

**The amounts and percentages of the Company's total admitted assets for warrants not attached to the other financial instruments, options, caps, and floors:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Owned** | **Owned** | **Written** | **Written** |
| | **Book Value** | **Percentage** | **Book Value** | **Percentage** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Hedging | $52 | 0.0% | $(23) | 0.0% |
| Income Generations | $— | 0.0% | $— | 0.0% |
| Other | $— | 0.0% | $— | 0.0% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At Year-End** | **At Year-End** | **(UNAUDITED) At End of Each Quarter** | **(UNAUDITED) At End of Each Quarter** | **(UNAUDITED) At End of Each Quarter** |
| | **Book Value** | **Percentage** | **1**<sup>st</sup> **Quarter Book Value** | **2**<sup>nd</sup> **Quarter Book Value** | **3**<sup>rd</sup> **Quarter Book Value** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Hedging | $1176 | 0.7% | $1251 | $1183 | $1196 |
| Income Generation | $— | 0.0% | $— | $— | $— |
| Replications | $4242 | 2.7% | $2706 | $3351 | $4572 |
| Other | $— | 0.0% | $— | $— | $— |

---

**The amounts and percentages of the Company's total admitted assets of the potential exposure (defined as the amount determined in accordance with the *NAIC Annual Statement Instructions*) for future contracts:**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At Year-End** | **At Year-End** | **(UNAUDITED) At End of Each Quarter** | **(UNAUDITED) At End of Each Quarter** | **(UNAUDITED) At End of Each Quarter** |
| | **Book Value** | **Percentage** | **1**<sup>st</sup> **Quarter Book Value** | **2**<sup>nd</sup> **Quarter Book Value** | **3**<sup>rd</sup> **Quarter Book Value** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| Hedging | $310 | 0.2% | $283 | $279 | $261 |
| Income Generation | $— | 0.0% | $— | $— | $— |
| Replications | $— | 0.0% | $— | $— | $— |
| Other | $— | 0.0% | $— | $— | $— |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**SUMMARY INVESTMENT SCHEDULE** 

**FOR THE YEAR ENDED DECEMBER 31, 2025**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **By Investment Category** | **Gross Investment<br>Holdings of the Company** | **Gross Investment<br>Holdings of the Company** | **Admitted Assets as<br>Reported by the Company** | **Admitted Assets as<br>Reported by the Company** | **Admitted Assets as<br>Reported by the Company** | **Admitted Assets as<br>Reported by the Company** |
| | **Book Value** | **Percentage** | **Book Value** | **Securities Lending Reinvested Collateral** | **Total** | **Percentage** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| **Issuer credit obligations:** | **Issuer credit obligations:** | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | $7164 | 4.8% | $7164 | $— | $7164 | 4.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other government obligations | 533 | 0.4% | 533 |  | 533 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-U.S. sovereign jurisdiction securities | 982 | 0.7% | 982 |  | 982 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds - general obligations (direct & guaranteed) | 231 | 0.1% | 231 |  | 231 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds - special revenue | 1900 | 1.3% | 1900 |  | 1900 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Project finance bonds issued by operating entities | 1693 | 1.2% | 1693 | 13 | 1706 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 53618 | 36.5% | 53618 | 3894 | 57512 | 39.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Single entity backed obligations | 1955 | 1.3% | 1955 | 10 | 1965 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;SVO-Identified bond exchange traded funds - systematic value | 136 | 0.1% | 136 | 120 | 256 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds issued by funds representing operating entities | 4043 | 2.8% | 4043 | 110 | 4153 | 2.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank loans - issued | 818 | 0.6% | 818 | 25 | 843 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank loans - acquired | 766 | 0.5% | 766 | 2 | 768 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgages loans that qualify as SVO-Identified credit tenant loans | 2562 | 1.7% | 2562 |  | 2562 | 1.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | 93 | 0.1% | 93 | 301 | 394 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other issuer credit obligations | 427 | 0.3% | 427 |  | 427 | 0.3% |
| **Total issuer credit obligations** | $76921 | 52.4% | $76921 | $4475 | $81396 | 55.4% |
| **Asset-backed securities:** | **Asset-backed securities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial asset-backed securities - self-liquidating | $7781 | 5.3% | $7781 | $3314 | $11095 | 7.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial asset-backed securities - not self-liquidating | 296 | 0.2% | 296 |  | 296 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-financial asset-backed securities | 762 | 0.5% | 762 | 101 | 863 | 0.6% |
| **Total asset-backed securities** | $8839 | 6.0% | $8839 | $3415 | $12254 | 8.3% |
| **Total bonds** | $85760 | 58.4% | $85760 | $7890 | $93650 | 63.7% |
| **Preferred stocks:** | **Preferred stocks:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial and miscellaneous (unaffiliated) | $118 | 0.1% | $118 | $— | $118 | 0.1% |
| **Total preferred stocks**  | $118 | 0.1% | $118 | $— | $118 | 0.1% |
| **Common stocks:** | **Common stocks:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial and miscellaneous publicly traded (unaffiliated) | $952 | 0.6% | $952 | $— | $952 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial and miscellaneous other (unaffiliated) | 143 | 0.1% | 143 |  | 143 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Parent, subsidiaries and affiliates publicly traded | 129 | 0.1% | 129 |  | 129 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Parent, subsidiaries and affiliates other | 11878 | 8.1% | 11878 |  | 11878 | 8.1% |
| **Total common stocks**  | $13102 | 8.9% | $13102 | $— | $13102 | 8.9% |

---

------

**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**SUMMARY INVESTMENT SCHEDULE** 

**FOR THE YEAR ENDED DECEMBER 31, 2025**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **By Investment Category** | **Gross Investment<br>Holdings of the Company** | **Gross Investment<br>Holdings of the Company** | **Admitted Assets as<br>Reported by the Company** | **Admitted Assets as<br>Reported by the Company** | **Admitted Assets as<br>Reported by the Company** | **Admitted Assets as<br>Reported by the Company** |
| | **Book Value** | **Percentage** | **Book Value** | **Securities Lending Reinvested Collateral** | **Total** | **Percentage** |
| | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| **Mortgage loans:** | | | | | | |
| &nbsp;&nbsp;&nbsp;Agricultural | $3495 | 2.4% | $3495 | $45 | $3540 | 2.4% |
| &nbsp;&nbsp;&nbsp;Residential properties | 897 | 0.6% | 897 |  | 897 | 0.6% |
| &nbsp;&nbsp;&nbsp;Commercial loans | 14568 | 10.0% | 14568 | 925 | 15493 | 10.6% |
| &nbsp;&nbsp;&nbsp;Mezzanine real estate loans | 105 | 0.0% | 105 |  | 105 | 0.0% |
| &nbsp;&nbsp;&nbsp;Total valuation allowance | (15) | 0.0% | (15) |  | (15) | 0.0% |
| **Total mortgage loans, net of allowance** | $19050 | 13.0% | $19050 | $970 | $20020 | 13.6% |
| **Real estate investments:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Property occupied by company | $194 | 0.1% | $194 | $— | $194 | 0.1% |
| &nbsp;&nbsp;&nbsp;Property held for production of income | 60 | 0.1% | 60 |  | 60 | 0.1% |
| **Total real estate**  | $254 | 0.2% | $254 | $— | $254 | 0.2% |
| **Cash, cash equivalents and short-term investments:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $619 | 0.4% | $619 | $185 | $804 | 0.6% |
| &nbsp;&nbsp;&nbsp;Cash equivalents | 3358 | 2.3% | 3358 | 60 | 3418 | 2.3% |
| &nbsp;&nbsp;&nbsp;Short-term investments | 346 | 0.2% | 346 | 400 | 746 | 0.5% |
| **Total cash, cash equivalents and short-term investments**  | $4323 | 2.9% | $4323 | $645 | $4968 | 3.4% |
| Policy loans | $2082 | 1.4% | $2082 | $— | $2082 | 1.4% |
| Other invested assets | 9469 | 6.5% | 9469 |  | 9469 | 6.5% |
| Derivatives | 2649 | 1.8% | 2649 | (19) | 2630 | 1.8% |
| Receivables for securities | 238 | 0.2% | 238 |  | 238 | 0.2% |
| Securities lending | 9486 | 6.4% | 9486 | N/A | N/A | N/A |
| Cash collateral for variation margin | 255 | 0.2% | 255 |  | 255 | 0.2% |
| **Total Invested Assets**  | $146786 | 100.0% | $146786 | $9486 | $146786 | 100.0% |

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**THE PRUDENTIAL INSURANCE COMPANY OF AMERICA**

**SUPPLEMENTAL SCHEDULE OF REINSURANCE DISCLOSURES** 

**FOR THE YEAR ENDED DECEMBER 31, 2025**

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**The following information regarding reinsurance contracts is presented to satisfy the disclosure requirements in SSAP No. 61 which apply to reinsurance contracts entered into, renewed or amended on or after January 1, 1996.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Has the Company reinsured any risk with any other entity under a reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) that is subject to Appendix A-791, Life and Health Reinsurance Agreements, and includes a provision that limits the reinsurer's assumption of significant risks identified in Appendix A-791?

Yes  No <u>x</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Has the Company reinsured any risk with any other entity under a reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) that is not subject to Appendix A-791, for which reinsurance accounting was applied and includes a provision that limits the reinsurer's assumption of risk?

Yes  No <u>x</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Does the Company have any reinsurance contracts (other than reinsurance contracts with a federal or state facility) that contain one or more of the following features which result in delays in payment in form or in fact:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Provisions that permit the reporting of losses to be made less frequently than quarterly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Provisions that permit settlements to be made less frequently than quarterly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Provisions that permit payments due from the reinsurer to not be made in cash within ninety days of the settlement date (unless there is no activity during the period); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.The existence of payment schedules, accumulating retentions from multiple years, or any features inherently designed to delay timing of the reimbursement to the ceding entity.

Yes  No <u>x</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Has the Company reflected reinsurance accounting credit for any contracts that are not subject to Appendix A-791 and not yearly renewable term reinsurance, which meet the risk transfer requirements of SSAP No. 61?

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| | | | |
|:---|:---|:---|:---|
| Assumption reinsurance – new for the reporting period (1) | Yes | No | x |
| Non-proportional reinsurance, which does not result in significant surplus relief | Yes | No | x |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Has the Company ceded any risk in a reinsurance agreement that is not subject to Appendix A-791 and not yearly renewable term reinsurance, under any reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) during the period covered by the financial statements, and either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Accounted for that contract as reinsurance under SAP and as a deposit under GAAP

Yes  No <u>x</u> N/A 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Accounted for that contract as reinsurance under GAAP and as a deposit under SAP?

Yes  No <u>x</u> N/A 

(1) This disclosure relates to ceding companies with assumption reinsurance agreements (paragraph 60 of SSAP 61) entered into during the current year for which indemnity reinsurance is being applied for policyholders who have not yet agreed to the transfer to the new insurer or for which the regulator has not yet approved the novation to the new insurer.

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