Prudential Annuities Life Assurance Corp. Variable Account B

09/24/2024 | Press release | Distributed by Public on 09/24/2024 10:41

Prospectus by Investment Company - Form 497

FORTITUDE LIFE INSURANCE & ANNUITY COMPANY
FORTITUDE LIFE INSURANCE & ANNUITY COMPANY VARIABLE ACCOUNT B
Supplement dated September 24, 2024
to Prospectuses and Updating Summary Prospectuses dated May 1, 2024
This Supplement should be read in conjunction with the current Prospectus and Updating Summary Prospectus ("Prospectus(es)") for your Annuity and should be retained for future reference. This Supplement is intended to update certain information in the Prospectuses for the variable annuity you own and is not intended to be a prospectus or offer for any other variable annuity that you do not own. Defined terms used herein and not otherwise defined herein shall have the meanings given to them in the Prospectuses and Statements of Additional Information. If you would like another copy of the current Annuity Prospectus, please call us at 1-800-879-7012.
This Supplement contains changes to the AST Core Fixed Income Portfolio available through your Annuity.
AST Core Fixed Income Portfolio - Subadvisor Addition and Portfolio Expense Change:
Effective on or about September 27, 2024 (the "Effective Date"), J.P. Morgan Investment Management Inc. will be added as a subadvisor. In addition, the Current Expenses for the Portfolio will be changed. On the Effective Date, the "Portfolio Company and Advisor/Subadvisor" and the "Current Expenses" listed in the table in "Appendix A - Portfolios Available Under the Annuity" will be restated as shown below. The Fund Type and Average Annual Total Returns appearing in Appendix A for the Portfolio are not changed.
Portfolio Company and Advisor/Subadvisor
Current
Expenses
AST Core Fixed Income Portfolio1
J.P. Morgan Investment Management Inc.
PGIM Fixed Income
PGIM Limited
Wellington Management Company LLP
Western Asset Management Company Limited
Western Asset Management Company, LLC
0.68%
PGIM Fixed Income is a business unit of PGIM, Inc.
PGIM Investments LLC manages each of the Portfolios of the Advanced Series Trust (AST). AST Investment Services, Inc. serves as co-manager, along with PGIM Investments LLC, to many of the Portfolios of AST.
1.
These Portfolios are also offered in other variable annuity contracts that utilize a predetermined mathematical formula to manage the guarantees offered in connection with optional benefits.
Those other variable annuity contracts offer certain optional living benefits that utilize a predetermined mathematical formula (the "formula") to manage the guarantees offered in connection with those optional benefits. The formula monitors each contract Owner's Account Value daily and, if necessary, will systematically transfer amounts among investment options. The formula transfers funds between the Sub-accounts for those variable annuity contracts and an AST bond Portfolio Sub-account or a fixed account (those AST bond Portfolios or a fixed account may not be available in connection with the annuity contracts offered through this prospectus). You should be aware that the operation of the formula in those other variable annuity contracts may result in large-scale asset flows into and out of the underlying Portfolios that are available with your contract. These asset flows could adversely impact the underlying Portfolios, including their risk profile, expenses and performance. Because transfers between the Sub-accounts and the AST bond Sub-account or a fixed account can be frequent and the amount transferred can vary from day to day, any of the underlying Portfolios could experience the following effects, among others:
(a)
a Portfolio's investment performance could be adversely affected by requiring a subadvisor to purchase and sell securities at inopportune times or by otherwise limiting the subadvisor's ability to fully implement the Portfolio's investment strategy;
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(b)
the subadvisor may be required to hold a larger portion of assets in highly liquid securities than it otherwise would hold, which could adversely affect performance if the highly liquid securities underperform other securities (e.g., equities) that otherwise would have been held; and
(c)
a Portfolio may experience higher turnover and greater negative asset flows than it would have experienced without the formula, which could result in higher operating expense ratios and higher transaction costs for the Portfolio compared to other similar funds.
The efficient operation of the asset flows among Portfolios triggered by the formula depends on active and liquid markets. If market liquidity is strained, the asset flows may not operate as intended. For example, it is possible that illiquid markets or other market stress could cause delays in the transfer of cash from one Portfolio to another Portfolio, which in turn could adversely impact performance.
Before you allocate to the Sub-account with the AST Portfolios listed above, you should consider the potential effects on the Portfolios that are the result of the operation of the formula in the variable annuity contracts that are unrelated to your Variable Annuity. Please work with your financial professional to determine which Portfolios are appropriate for your needs.
You may wish to consult with your financial professional to determine if your existing allocation instructions should be changed before or after the Effective Date.
If you have any questions or would like another copy of the current Annuity or Fund Prospectuses, please call us at
1-800-879-7012.
THIS SUPPLEMENT SHOULD BE READ AND RETAINED FOR FUTURE REFERENCE.
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