Separate Accounts

6 Months Ended

Jun. 30, 2024

SEPARATE ACCOUNTS

The Company issues variable annuity and variable life insurance contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. Most variable annuity and variable life insurance contracts are offered with both separate and general account options. See Note 10 for additional information.

The assets supporting the variable portion of variable annuity and variable life insurance contracts are carried at fair value and reported as “Separate account assets” with an equivalent amount reported as “Separate account liabilities.” The liabilities related to the net amount at risk are reflected within future policy benefits or market risk benefits. Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in “Policy charges and fee income” and changes in liabilities for minimum guarantees are generally included in “Policyholders’ benefits” or “Realized investment gains (losses), net.”

Separate Account Assets

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


	June 30, 2024		December 31, 2023
	(in millions)
Asset Type:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	4,361	$	4,411
Obligations of U.S. states and their political subdivisions	2,103		2,116
Foreign government bonds	107		101
U.S. corporate securities	11,588		12,782
Foreign corporate securities	3,024		3,288
Asset-backed securities	1,262		1,211
Mortgage-backed securities	14,394		14,253
Mutual funds:
Equity	92,142		88,397
Fixed Income	34,707		37,065
Other	5,303		5,587
Equity securities	4,767		5,410
Commercial mortgage and other loans	62		67
Other invested assets	18,839		20,739
Short-term investments	1,550		1,202
Cash and cash equivalents	2,650		2,259
Total	$	196,859	$	198,888

For the periods ended June 30, 2024 and December 31, 2023, there were no transfers of assets, other than cash, from the general account to a separate account; therefore, no gains or losses were recorded.

Separate Account Liabilities

The balances of and changes in separate account liabilities as of and for the periods ended are as follows:


	Six Months Ended June 30, 2024
			Retirement Strategies
	PGIM		Institutional		Individual		Group Insurance		Individual Life		Total
	(in millions)
Balance, BOP	$	32,648	$	11,011	$	94,130	$	25,021	$	39,223	$	202,033
Deposits	10,873		105		294		289		1,613		13,174
Investment performance	(972)		(94)		5,249		366		4,334		8,883

Policy charges	(57)		(5)		(1,123)		(120)		(566)		(1,871)
Surrenders and withdrawals	(9,886)		(878)		(6,815)		(339)		(516)		(18,434)
Benefit payments	(1,745)		(270)		(46)		(144)		(208)		(2,413)
Net transfers (to) from general account	13		(45)		(42)		6		(251)		(319)
Other	(458)		84		3		(532)		46		(857)

Balance, EOP	$	30,416	$	9,908	$	91,650	$	24,547	$	43,675	$	200,196
Other businesses(1)											(3,337)
Total separate account liabilities											$	196,859

Cash surrender value(2)	$	30,416	$	9,908	$	90,583	$	24,442	$	40,129	$	195,478

__________

(1)Primarily represents activity from the Company’s Divested and Run-off Businesses as well as the impact of intercompany eliminations. There are no associated cash surrender charges.

(2)“Cash surrender value” represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. There are no cash surrender charges for the PGIM and Institutional Retirement Strategies segments.


	Six Months Ended June 30, 2023
			Retirement Strategies
	PGIM		Institutional		Individual		Group Insurance		Individual Life		Total
	(in millions)
Balance, BOP	$	40,056	$	11,428	$	93,395	$	23,513	$	32,930	$	201,322
Deposits	2,928		175		204		11		1,489		4,807
Investment performance	(99)		523		7,420		896		4,026		12,766

Policy charges	(42)		(6)		(1,181)		(139)		(528)		(1,896)
Surrenders and withdrawals	(2,828)		(226)		(4,667)		(14)		(409)		(8,144)
Benefit payments	(1,728)		(278)		(56)		(138)		(166)		(2,366)
Net transfers (to) from general account	(351)		(35)		(6)		0		(1,130)		(1,522)
Other	(709)		(182)		5		(382)		52		(1,216)

Balance, EOP	$	37,227	$	11,399	$	95,114	$	23,747	$	36,264	203,751
Other businesses(1)											(2,880)
Total separate account liabilities											$	200,871

Cash surrender value(2)	$	37,227	$	11,399	$	93,745	$	23,630	$	33,157	$	199,158

__________

(1)Primarily represents activity from the Company’s Divested and Run-off Businesses as well as the impact of intercompany eliminations. There are no associated cash surrender charges.