保德信金融盘后披露Q3初步数据：日本停售令拖累税前调整后营业利润约1.4亿美元，股价盘后一度跌至约112美元

----- pru-20261015.htm -----
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
FORM
8-K
___________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 15, 2026
___________________________
PRUDENTIAL FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
___________________________
New Jersey
001-16707
22-3703799
(State or other jurisdiction
(Commission
(I.R.S. Employer
of incorporation)
File Number)
Identification Number)
751 Broad Street
Newark
,
NJ
07102
(Address of principal executive offices and zip code)
(
973
)
802-6000
(Registrant’s telephone number, including area code)
___________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
Common Stock, Par Value $.01
PRU
New York Stock Exchange
5.950% Junior Subordinated Notes
PRH
New York Stock Exchange
5.625% Junior Subordinated Notes
PRS
New York Stock Exchange
4.125% Junior Subordinated Notes
PFH
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02    Results of Operations and Financial Condition.
The information contained in Item 7.01 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 2.02.
Item 7.01    Regulation FD Disclosure.
Prudential Financial, Inc. (the “Company”) is furnishing this Current Report to disclose (1) certain preliminary financial information regarding the quarter ended September 30, 2026, prior to the availability of the Company’s quarterly earnings release and quarterly financial supplement for the period, scheduled for release on November 3, 2026; and (2) certain segment reporting changes relating to our International Businesses segment.
Preliminary Financial Information
Assets Under Management of the PGIM Segment
As of September 30, 2026, assets under management of the PGIM segment were $1.47 trillion.
Other Related Revenues, Net of Related Expenses, of the PGIM Segment
For the quarter ended September 30, 2026, PGIM’s other related revenues, net of related expenses, were approximately $20 million on an adjusted operating income basis
(1)
. “Other related revenues” include incentive fees, transaction fees, and revenues from seed and co-investments and mortgage originations.
Alternative Investment Income of the General Account
For the quarter ended September 30, 2026, the alternative investment income of the Company’s General Account, excluding the Closed Block Division and Funds Withheld portfolios, (the “GA Portfolio”) is estimated to be approximately $15 - $35 million above the Company’s near-term expectations. “Alternative investment income” includes the adjusted operating income of the GA Portfolio’s interests in private equity, hedge fund and real estate-related investments, as well as real estate investments held through direct ownership, and excludes the results from those interests held by Divested Businesses and unaffiliated investors that have been consolidated on the Company’s balance sheet.
Prudential of Japan Matter
For the quarter ended September 30, 2026, the Prudential of Japan sales suspension resulted in an estimated reduction of approximately $140 million in the Japan Businesses’ pre-tax adjusted operating income, including one-time costs primarily related to Life Planner compensation, lost sales, and the impact of surrenders.
The preliminary financial information presented above for the quarter ended September 30, 2026, is estimated and unaudited and has been prepared in good faith on a basis consistent with prior periods based on information available to management as of the date hereof and constitute forward-looking statements; however, we have not completed our financial closing procedures for the quarter ended September 30, 2026, and our actual results could be materially different from these preliminary financial results.
Segment Reporting Changes Related to International Businesses Segment
In August 2026, the Company announced its intent to exit certain of its emerging markets businesses previously included within the International Businesses segment. As a result, effective in the third quarter of 2026, (i) the operating results of certain businesses, including its Brazil and Mexico operations, are reflected in Divested and Run-off Businesses included within Corporate and Other operations, and (ii) the former International Businesses segment has been renamed “Japan Businesses.” In connection with this change, the results of the Company’s indirect 40% ownership interest in Administradora de Fondos de Pensiones Habitat S.A., previously included within the International Businesses’ segment results, are now included within the Retirement segment results, reflecting the retirement-focused nature of this business. These changes are being applied retrospectively and do not have an impact on any of the Company’s previously issued Consolidated Financial Statements.
The Company furnishes herewith, as Exhibit 99.1, a revised version of the Quarterly Financial Supplement (unaudited) for second quarter 2026, previously disclosed on August 4, 2026, to provide investors with historical information reflecting these changes. The updates made for these revisions are highlighted in yellow throughout. The revised supplement does not reflect events occurring after the original filing thereof, nor does it modify or update disclosures in any way other than as noted within or as required to reflect the changes described above. The unaudited supplemental financial information furnished in Exhibit 99.1 has been prepared by, and is the responsibility of, the Company’s management. This information should be read together
with the consolidated financial statements and the related notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Quarterly Report on Form 10-Q, filed on August 5, 2026, and the Company’s other filings with the Securities and Exchange Commission. The information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Additional materials related to the segment reporting changes discussed herein are available on the Company’s Investor Relations website at www.investor.prudential.com. Investors and others should note that the Company routinely uses its Investor Relations website to post presentations to investors and other important information, including information that may be deemed material to investors. Accordingly, the Company encourages investors and others interested in the Company to review the information that it shares at www.investor.prudential.com. Interested parties may register to receive automatic email alerts when presentations and other information are posted to the Investor Relations website by clicking on “Sign Up for Email Alerts” at www.investor.prudential.com and following the instructions provided.
Certain of the statements included in this report, including those regarding our estimated financial results for the third quarter of 2026 discussed herein, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “expects”, “believes”, “anticipates”, “includes”, “plans”, “assumes”, “estimates”, “projects”, “intends”, “should”, “will”, “shall”, or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. Prudential Financial, Inc.’s actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in the “Risk Factors” and “Forward-Looking Statements” sections included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Factors that could cause estimated financial results for the third quarter of 2026 presented herein to differ from our actual results include the discovery of new or additional information that impacts accounting estimates, management’s judgment or valuation methodologies underlying these estimated results, and the completion of our financial and other closing procedures and the preparation of our unaudited condensed consolidated financial statements. Prudential Financial, Inc. does not undertake to update any particular forward-looking statement included in this presentation.
(1) The Company analyzes the operating performance of each segment using pre-tax “adjusted operating income.” Adjusted operating income does not equate to “Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities” or “Net income (loss)” as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the Company’s chief operating decision maker to evaluate segment performance and allocate resources. Adjusted operating income is calculated by adjusting each segment’s “Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities” for the following items: realized investment gains (losses), net, and related charges and adjustments; change in value of market risk benefits, net of related hedging gains (losses); market experience updates; divested and run-off businesses; equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests and redeemable noncontrolling interests; and other adjustments. For more information about adjusted operating income, see the “Segment Information” Note to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2025.
Item 9.01    Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Description
99.1
Revised Quarterly Financial Supplement (unaudited) for Prudential Financial, Inc. for second quarter 2026 (furnished and not filed).
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 15, 2026
PRUDENTIAL FINANCIAL, INC.
By:
/s/ Robert E. Boyle
Name: Robert E. Boyle
Title:   Senior Vice President and Principal Accounting Officer

----- exhibit991-2q26qfsrestatem.htm -----
EX-99.1
2
exhibit991-2q26qfsrestatem.htm
EX-99.1
Document
Table of Contents
Exhibit 99.1
Prudential Financial, Inc. (PRU)
As Adjusted for International Businesses Segment Reporting Changes
Quarterly Financial Supplement
Second Quarter 2026
Reference is made to Prudential Financial, Inc.'s (PFI) filings with the Securities and Exchange Commission for general information and consolidated financial information. All financial information in this document is unaudited.
i
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
TABLE OF CONTENTS
Page
HIGHLIGHTS
Financial Metrics Summary
1
Financial Highlights
2
Other Financial Highlights
3
Operations Highlights
4
Combined Statements of Operations
5
Consolidated Balance Sheets
6
Combining Balance Sheets
7
Short-Term and Long-Term Debt - Unaffiliated
8
PGIM
Statements of Operations
9
Supplementary Revenue and Assets Under Management Information
10
Supplementary Assets Under Management Information
11
U.S.BUSINESSES
Combined Statements of Operations
12
Statements of Operations - Retirement
13
Retirement Sales Results and Account Values
14
Statements of Operations - Group Insurance
15
Group Insurance Supplementary Information
16
Statements of Operations - Individual Life
17
Individual Life Supplementary Information
18
Statements of Operations - U.S. Legacy Products
19
U.S. Legacy Products Supplementary Information
20
U.S. Legacy Products Market Risk Benefit Features
21
J
APAN B
USINESSES
Statements of Operations -
Japan
Businesses
22
Sales Results and Supplementary Information
23
CORPORATE AND OTHER
Statements of Operations
25
INVESTMENT PORTFOLIO
Investment Portfolio Composition
26
Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations
27
Investment Results
28
Investment Results - Japanese Insurance Operations
29
Investment Results - Excluding Japanese Insurance Operations
30
ADJUSTED OPERATING INCOME IMPACT FROM ANNUAL ASSUMPTION UPDATES AND OTHER REFINEMENTS
31
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
32
KEY DEFINITIONS AND FORMULAS
36
RATINGS AND INVESTOR INFORMATION
39
ii
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
Segment Reporting Changes Related to International Businesses Segment
In August 2026, the Company announced its intent to exit certain of its Emerging Markets businesses previously included within the International Businesses segment.
As a result, effective in the third quarter of 2026, (i) the operating results of certain businesses, including its Brazil and Mexico operations, are reflected in Other Divested and Run-off Businesses included within Corporate and Other operations, and (ii) the former International Businesses segment has been renamed “Japan Businesses.” In connection with this change, the results of the Company’s indirect 40% ownership interest in Administradora de Fondos de Pensiones Habitat S.A. ("AFP Habitat"), previously included within the International Businesses’ segment results, are now included within the Retirement segment results.
The previously reported International Businesses and restated Japan Businesses Statements of Operation can be found on pages iv and v, respectively. The impact of the Emerging Market businesses, excluding AFP Habitat, on historical results, and the impact of AFP Habitat, now reflected in Retirement, can be found on pages vi and vii, respectively.
The updates made for these revisions are highlighted in yellow throughout Exhibit 99.1.
iii
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES (AS PREVIOUSLY REPORTED)
(in millions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
% change
Revenues (1):
Premiums
2,709
2,800
2,627
2,949
2,755
5,766
5,704
-1%
Policy charges and fee income
92
96
104
117
114
180
231
28%
Net investment income
1,451
1,540
1,569
1,607
1,643
2,920
3,250
11%
Asset management fees, commissions and other income
147
159
116
114
179
271
293
8%
Total revenues
4,399
4,595
4,416
4,787
4,691
9,137
9,478
4%
Benefits and expenses (1):
Insurance and annuity benefits
2,446
2,559
2,428
2,667
2,368
5,235
5,035
-4%
Change in estimates of liability for future policy benefits
32
(21)
5
20
187
29
207
614%
Interest credited to policyholders' account balances
369
390
402
414
425
716
839
17%
Interest expense
1
2
1
3
6
—
9
—%
Deferral of acquisition costs
(297)
(308)
(286)
(263)
(240)
(603)
(503)
17%
Amortization of acquisition costs
174
175
179
173
179
339
352
4%
Operating expenses
467
466
499
563
535
903
1,098
22%
Variable expenses
446
451
431
400
376
909
776
-15%
Total benefits and expenses
3,638
3,714
3,659
3,977
3,836
7,528
7,813
4%
Adjusted operating income (loss) before income taxes
761
881
757
810
855
1,609
1,665
3%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, and include charges for income attributable to noncontrolling interests and redeemable noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates.
iv
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
STATEMENTS OF OPERATIONS - JAPAN BUSINESSES
(in millions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
% change
Revenues (1):
Premiums
2,370
2,452
2,246
2,571
2,332
5,142
4,903
-5%
Policy charges and fee income
92
96
105
118
114
180
232
29%
Net investment income
1,354
1,437
1,465
1,463
1,475
2,700
2,938
9%
Asset management fees, commissions and other income
95
95
68
72
120
173
192
11%
Total revenues
3,911
4,080
3,884
4,224
4,041
8,195
8,265
1%
Benefits and expenses (1):
Insurance and annuity benefits
2,222
2,321
2,160
2,388
2,044
4,768
4,432
-7%
Change in estimates of liability for future policy benefits
17
(19)
6
22
200
19
222
1068%
Interest credited to policyholders' account balances
369
390
402
414
425
716
839
17%
Interest expense
(1)
(1)
(2)
—
1
(5)
1
120%
Deferral of acquisition costs
(255)
(261)
(224)
(218)
(184)
(525)
(402)
23%
Amortization of acquisition costs
155
154
157
154
157
310
311
—%
Operating expenses
395
394
409
487
457
772
944
22%
Variable expenses
355
352
311
287
247
733
534
-27%
Total benefits and expenses
3,257
3,330
3,219
3,534
3,347
6,788
6,881
1%
Adjusted operating income (loss) before income taxes
654
750
665
690
694
1,407
1,384
-2%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, and include charges for income attributable to noncontrolling interests and redeemable noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates.
v
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
STATEMENTS OF OPERATIONS - EMERGING MARKETS, EXCLUDING AFP HABITAT (as previously reported within the former International Businesses)
(in millions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
% change
Revenues (1):
Premiums
339
348
381
378
423
624
801
28%
Policy charges and fee income
—
—
(1)
(1)
—
—
(1)
—%
Net investment income
97
103
104
144
168
220
312
42%
Asset management fees, commissions and other income
22
26
26
20
17
45
37
-18%
Total revenues
458
477
510
541
608
889
1,149
29%
Benefits and expenses (1):
Insurance and annuity benefits
224
238
268
279
324
467
603
29%
Change in estimates of liability for future policy benefits
15
(2)
(1)
(2)
(13)
10
(15)
-250%
Interest credited to policyholders' account balances
—
—
—
—
—
—
—
—%
Interest expense
2
3
3
3
5
5
8
60%
Deferral of acquisition costs
(42)
(47)
(62)
(45)
(56)
(78)
(101)
-29%
Amortization of acquisition costs
19
21
22
19
22
29
41
41%
Operating expenses
72
73
89
75
77
130
152
17%
Variable expenses
91
99
120
113
129
176
242
38%
Total benefits and expenses
381
385
439
442
488
739
930
26%
Adjusted operating income (loss) before income taxes
77
92
71
99
120
150
219
46%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, and include charges for income attributable to noncontrolling interests and redeemable noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates.
vi
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
STATEMENTS OF OPERATIONS - IMPACT OF INVESTMENT IN AFP HABITAT RECLASSIFIED TO RETIREMENT
(in millions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
% change
Revenues (1):
Premiums
—
—
—
—
—
—
—
—%
Policy charges and fee income
—
—
—
—
—
—
—
—%
Net investment income
—
—
—
—
—
—
—
—%
Asset management fees, commissions and other income
30
38
22
22
42
53
64
21%
Total revenues
30
38
22
22
42
53
64
21%
Benefits and expenses (1):
Insurance and annuity benefits
—
—
—
—
—
—
—
—%
Change in estimates of liability for future policy benefits
—
—
—
—
—
—
—
—%
Interest credited to policyholders' account balances
—
—
—
—
—
—
—
—%
Interest expense
—
—
—
—
—
—
—
—%
Deferral of acquisition costs
—
—
—
—
—
—
—
—%
Amortization of acquisition costs
—
—
—
—
—
—
—
—%
Operating expenses
—
(1)
1
1
1
1
2
100%
Variable expenses
—
—
—
—
—
—
—
—%
Total benefits and expenses
—
(1)
1
1
1
1
2
100%
Adjusted operating income (loss) before income taxes
30
39
21
21
41
52
62
19%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, and include charges for income attributable to noncontrolling interests and redeemable noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates.
vii
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
FINANCIAL METRICS SUMMARY
(in millions, except per share and return on equity data)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
% change
Earnings
Adjusted operating income (loss) before income taxes:
PGIM
229
244
249
190
294
385
484
26%
U.S. Businesses
985
1,188
1,072
977
998
1,938
1,975
2%
Japan Businesses
654
750
665
690
694
1,407
1,384
-2%
Corporate and Other
(361)
(353)
(536)
(347)
(335)
(776)
(682)
12%
Total adjusted operating income (loss) before income taxes
1,507
1,829
1,450
1,510
1,651
2,954
3,161
7%
Income taxes, applicable to adjusted operating income
328
385
320
306
331
634
637
—%
After-tax adjusted operating income (loss)
1,179
1,444
1,130
1,204
1,320
2,320
2,524
9%
Income (loss) attributable to Prudential Financial, Inc.
533
1,431
905
597
985
1,240
1,582
28%
Return on Equity
Operating Return on Average Equity (based on adjusted operating income) (1)
13.7
%
16.6
%
12.8
%
13.7
%
15.1
%
13.5
%
14.4
%
Return on Average Equity (based on net income (loss))
7.1
%
18.3
%
11.2
%
7.4
%
12.4
%
8.4
%
9.9
%
Distributions to Shareholders
Dividends paid
485
481
480
496
493
971
989
2%
Share repurchases
250
250
250
250
250
500
500
—%
Total capital returned
735
731
730
746
743
1,471
1,489
1%
Per Share Data
Net income (loss) - diluted
1.48
4.01
2.55
1.68
2.80
3.44
4.48
30%
Adjusted Operating Income - diluted
3.29
4.05
3.19
3.40
3.75
6.45
7.14
11%
Shareholder dividends
1.35
1.35
1.35
1.40
1.40
2.70
2.80
4%
GAAP book value - diluted
85.98
90.69
92.05
91.28
90.50
Adjusted book value - diluted (2)
96.41
99.25
100.17
99.79
100.91
Shares Outstanding
Weighted average number of common shares - basic
353.1
351.1
349.0
347.7
346.4
353.7
347.0
-2%
Weighted average number of common shares - diluted
354.9
353.0
350.9
349.4
348.1
355.5
348.8
-2%
End of period common shares - basic
351.9
349.9
347.9
347.3
345.2
End of period common shares - diluted
355.7
353.9
352.4
350.3
348.9
__________
(1) Operating Return on Average Equity (based on adjusted operating income) is a non-GAAP measure and represents adjusted operating income after-tax, annualized for interim periods, divided by average Prudential Financial, Inc. equity excluding accumulated other comprehensive income, adjusted to remove amounts included for foreign currency exchange rate remeasurement and the cumulative change in fair value of funds withheld embedded derivatives as described on page 3.
(2) Adjusted book value is calculated as total equity (GAAP book value) excluding accumulated other comprehensive income (loss), the cumulative effect of foreign currency exchange rate remeasurements and currency translation adjustments corresponding to realized investment gains and losses, and the cumulative change in fair value of funds withheld and modified coinsurance embedded derivatives as described on page 3.
Page 1
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
Earnings per share of Common Stock (diluted):
After-tax adjusted operating income (loss)
3.29
4.05
3.19
3.40
3.75
6.45
7.14
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments
(1.33)
(1.52)
(0.83)
(1.66)
(1.88)
(1.87)
(3.53)
Change in value of market risk benefits, net of related hedging gains (losses)
(1.20)
0.92
(0.06)
(0.84)
(0.20)
(2.19)
(1.05)
Market experience updates
0.12
(0.10)
0.07
0.04
(0.06)
0.23
(0.01)
Divested and Run-off Businesses:
Closed Block division
(0.05)
0.03
(0.11)
(0.03)
(0.03)
(0.11)
(0.07)
Other Divested and Run-off Businesses
0.33
0.54
0.22
0.34
0.84
0.22
1.18
Difference in earnings allocated to participating unvested share-based payment awards
0.02
—
0.01
0.02
0.01
0.03
0.03
Other adjustments (1)
—
—
—
(0.01)
—
0.08
(0.01)
Total reconciling items, before income taxes
(2.11)
(0.13)
(0.70)
(2.14)
(1.32)
(3.61)
(3.46)
Income taxes, not applicable to adjusted operating income
(0.30)
(0.09)
(0.06)
(0.42)
(0.37)
(0.60)
(0.80)
Total reconciling items, after income taxes
(1.81)
(0.04)
(0.64)
(1.72)
(0.95)
(3.01)
(2.66)
Net income (loss) attributable to Prudential Financial, Inc.
1.48
4.01
2.55
1.68
2.80
3.44
4.48
Weighted average number of outstanding common shares - basic
353.1
351.1
349.0
347.7
346.4
353.7
347.0
Weighted average number of outstanding common shares - diluted
354.9
353.0
350.9
349.4
348.1
355.5
348.8
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc.
533
1,431
905
597
985
1,240
1,582
Less: Earnings allocated to participating unvested share-based payment awards
6
15
10
9
12
16
21
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation
527
1,416
895
588
973
1,224
1,561
After-tax adjusted operating income (loss)
1,179
1,444
1,130
1,204
1,320
2,320
2,524
Less: Earnings allocated to participating unvested share-based payment awards
13
15
12
16
16
28
32
After-tax adjusted operating income for earnings per share of Common Stock calculation
1,166
1,429
1,118
1,188
1,304
2,292
2,492
___________
(1) Represents adjustments not included in the above reconciling items, including certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.
Page 2
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
OTHER FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2025
2026
2Q
3Q
4Q
1Q
2Q
Capitalization Data (1):
Senior debt:
Short-term debt
1,373
1,386
1,443
946
955
Long-term debt
11,056
11,202
11,261
11,286
11,324
Junior subordinated long-term debt
7,595
7,595
7,595
7,596
8,339
Prudential Financial, Inc. Equity:
GAAP book value (total PFI equity) at end of period
30,582
32,094
32,438
31,975
31,577
Less: Accumulated other comprehensive income (AOCI)
(3,921)
(3,175)
(3,077)
(3,450)
(4,060)
GAAP book value excluding AOCI (2)
34,503
35,269
35,515
35,425
35,637
Less: Cumulative change in fair value of funds withheld embedded derivatives (3)
67
(47)
(24)
60
20
Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses) (4)
144
192
238
409
410
Adjusted book value
34,292
35,124
35,301
34,956
35,207
Book Value per Share of Common Stock:
GAAP book value per common share - diluted
85.98
90.69
92.05
91.28
90.50
GAAP book value excluding AOCI per share - diluted (2)
97.00
99.66
100.78
101.13
102.14
Adjusted book value per common share - diluted
96.41
99.25
100.17
99.79
100.91
End of period number of common shares - diluted
355.7
353.9
352.4
350.3
348.9
Common Stock Price Range (based on closing price):
High
112.71
109.89
117.60
118.72
109.20
Low
95.12
100.68
99.13
92.00
94.21
Close
107.44
103.74
112.88
97.69
107.93
Common Stock market capitalization (1)
37,808
36,299
39,271
33,928
37,257
__________
(1) As of end of period.
(2) Foreign currency translation adjustments and the cumulative impact of foreign currency exchange rate remeasurement, except for those items remeasured through net income (loss), are a component of accumulated other comprehensive income.
(3) Amount represents the cumulative change in fair value of funds withheld embedded derivatives related to unrealized gains and losses on available-for-sale securities and certain derivatives associated with customer liabilities reinsured under coinsurance with funds withheld and modified coinsurance arrangements.
(4) Includes the cumulative impact of net gains and losses resulting from foreign currency exchange rate remeasurement and associated realized investment gains and losses included in net income (loss) and currency translation adjustments corresponding to realized investment gains and losses.
Page 3
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
OPERATIONS HIGHLIGHTS
2025
2026
2Q
3Q
4Q
1Q
2Q
Assets Under Management and Administration (in billions) (1)(2):
PGIM:
Institutional customers - Third Party
647.6
654.9
652.0
638.8
663.0
Retail customers - Third Party
256.7
265.2
267.0
259.0
282.3
Affiliated
536.4
549.9
547.1
535.5
546.0
Total PGIM
1,440.7
1,470.0
1,466.1
1,433.3
1,491.3
U.S. Businesses
113.8
115.9
116.9
115.3
122.1
Japan Businesses
15.4
15.6
15.4
16.2
17.2
Corporate and Other
10.4
10.5
10.7
11.0
11.5
Total assets under management
1,580.3
1,612.0
1,609.1
1,575.8
1,642.1
Assets under administration
193.2
194.6
195.1
190.9
193.7
Total assets under management and administration
1,773.5
1,806.6
1,804.2
1,766.7
1,835.8
Distribution Representatives (1):
Prudential Advisors
2,985
3,034
3,061
3,112
3,159
Life Planners
4,285
4,282
4,283
4,243
4,068
Life Consultants
6,822
6,940
6,983
6,947
6,917
__________
(1) As of end of period.
(2) At fair market value.
Page 4
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
COMBINED STATEMENTS OF OPERATIONS
(in millions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
% change
Revenues (1):
Premiums
6,093
8,349
6,668
7,467
5,910
12,261
13,377
9%
Policy charges and fee income
1,070
1,126
1,107
1,108
1,139
2,178
2,247
3%
Net investment income
4,503
4,769
4,843
4,864
4,984
8,899
9,848
11%
Asset management fees, commissions and other income
1,391
1,498
1,431
1,246
1,522
2,708
2,768
2%
Total revenues
13,057
15,742
14,049
14,685
13,555
26,046
28,240
8%
Benefits and expenses (1):
Insurance and annuity benefits
6,977
9,251
7,684
8,439
6,676
14,083
15,115
7%
Change in estimates of liability for future policy benefits
85
98
51
43
360
76
403
430%
Interest credited to policyholders' account balances
1,135
1,215
1,271
1,304
1,380
2,218
2,684
21%
Interest expense
525
529
529
536
535
1,044
1,071
3%
Deferral of acquisition costs
(647)
(652)
(619)
(579)
(579)
(1,295)
(1,158)
11%
Amortization of acquisition costs
373
374
386
378
395
739
773
5%
Operating expenses
1,645
1,566
1,791
1,658
1,714
3,213
3,372
5%
Variable expenses
1,457
1,532
1,506
1,396
1,423
3,014
2,819
-6%
Total benefits and expenses
11,550
13,913
12,599
13,175
11,904
23,092
25,079
9%
Adjusted operating income (loss) before income taxes
1,507
1,829
1,450
1,510
1,651
2,954
3,161
7%
Income taxes, applicable to adjusted operating income
328
385
320
306
331
634
637
—%
After-tax adjusted operating income
1,179
1,444
1,130
1,204
1,320
2,320
2,524
9%
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments
(473)
(538)
(290)
(579)
(654)
(665)
(1,233)
-85%
Change in value of market risk benefits, net of related hedging gains (losses)
(426)
324
(22)
(295)
(71)
(777)
(366)
53%
Market experience updates
42
(36)
23
15
(20)
81
(5)
-106%
Divested and Run-off Businesses:
Closed Block division
(18)
10
(38)
(11)
(12)
(40)
(23)
43%
Other Divested and Run-off Businesses
116
189
76
120
293
77
413
436%
Equity in earnings of joint ventures and other operating entities, and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
(7)
5
16
(24)
(8)
3
(32)
-1167%
Other adjustments (2)
(1)
(1)
(1)
(3)
(1)
27
(4)
-115%
Total reconciling items, before income taxes
(767)
(47)
(236)
(777)
(473)
(1,294)
(1,250)
3%
Income taxes, not applicable to adjusted operating income
(133)
(3)
(51)
(177)
(113)
(232)
(290)
-25%
Total reconciling items, after income taxes
(634)
(44)
(185)
(600)
(360)
(1,062)
(960)
10%
Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities
740
1,782
1,214
733
1,178
1,660
1,911
15%
Income tax expense (benefit)
195
382
269
129
218
402
347
-14%
Income (loss) before equity in earnings of joint ventures and other operating entities
545
1,400
945
604
960
1,258
1,564
24%
Equity in earnings of joint ventures and other operating entities, net of taxes and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
(12)
31
(40)
(7)
25
(18)
18
200%
Income (loss) attributable to Prudential Financial, Inc.
533
1,431
905
597
985
1,240
1,582
28%
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests
33
52
36
9
51
68
60
-12%
Net income (loss)
566
1,483
941
606
1,036
1,308
1,642
26%
Less: Income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests
33
52
36
9
51
68
60
-12%
Net income (loss) attributable to Prudential Financial, Inc.
533
1,431
905
597
985
1,240
1,582
28%
____________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, change in value of market risk benefits, net of related hedging gains (losses), revenues of Divested and Run-off Businesses, and include revenues representing equity in earnings of joint ventures and other operating entities other than those classified as Divested and Run-off Businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, benefits and expenses of Divested and Run-off Businesses, and certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods and include charges for income attributable to noncontrolling interests and redeemable noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates. See pages 32-35 for reconciliation.
(2) Represents adjustments not included in the above reconciling items, including certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.
Page 5
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
CONSOLIDATED BALANCE SHEETS
(in millions)
06/30/2025
09/30/2025
12/31/2025
03/31/2026
06/30/2026
Assets:
Investments:
Fixed maturities, available-for-sale, at fair value
328,302
335,414
331,455
330,851
333,526
Fixed maturities, trading, at fair value
14,020
14,575
14,869
15,831
16,758
Assets supporting experience-rated contractholder liabilities, at fair value
4,282
4,648
4,842
4,781
5,405
Equity securities, at fair value
7,434
8,794
10,972
12,552
14,389
Commercial mortgage and other loans
62,966
64,813
64,715
65,412
65,985
Policy loans
9,946
9,951
9,958
9,988
9,984
Other invested assets
27,256
27,665
27,294
27,792
28,574
Short-term investments
6,375
6,248
6,414
6,917
7,216
Total investments
460,581
472,108
470,519
474,124
481,837
Cash and cash equivalents
16,638
17,469
19,712
15,936
15,162
Accrued investment income
3,560
3,581
3,636
3,633
3,758
Deferred policy acquisition costs
21,222
21,468
21,530
21,730
21,880
Value of business acquired
450
430
397
382
366
Market risk benefit assets
2,188
2,252
2,330
2,166
2,430
Reinsurance recoverables and deposit receivables
44,152
44,947
44,077
43,213
44,218
Income tax assets
839
240
279
—
37
Other assets
14,561
15,267
15,009
15,176
14,916
Separate account assets
194,761
198,540
196,251
189,036
198,950
Total assets
758,952
776,302
773,740
765,396
783,554
Liabilities:
Future policy benefits
270,133
272,553
266,914
262,470
260,944
Policyholders' account balances
180,931
188,657
191,307
192,131
202,223
Market risk benefit liabilities
4,859
4,771
4,623
5,000
4,731
Reinsurance and funds withheld payables
17,126
17,874
18,844
19,270
19,864
Securities sold under agreements to repurchase
8,205
9,937
9,598
10,975
10,069
Cash collateral for loaned securities
9,167
8,597
8,700
8,905
9,236
Income tax liabilities
—
—
—
255
—
Short-term debt
1,373
1,386
1,443
946
955
Long-term debt
18,651
18,797
18,856
18,882
19,663
Other liabilities
18,872
18,507
18,964
19,316
18,315
Notes issued by consolidated variable interest entities
1,758
1,868
2,659
3,283
4,017
Separate account liabilities
194,761
198,540
196,251
189,036
198,950
Total liabilities
725,836
741,487
738,159
730,469
748,967
Mezzanine Equity:
Redeemable noncontrolling interests
2,213
2,358
2,794
2,608
2,652
Total mezzanine equity
2,213
2,358
2,794
2,608
2,652
Equity:
Accumulated other comprehensive income (loss)
(3,921)
(3,175)
(3,077)
(3,450)
(4,060)
Other equity (1)
34,503
35,269
35,515
35,425
35,637
Total Prudential Financial, Inc. equity
30,582
32,094
32,438
31,975
31,577
Noncontrolling interests
321
363
349
344
358
Total equity
30,903
32,457
32,787
32,319
31,935
Total liabilities, mezzanine equity and equity
758,952
776,302
773,740
765,396
783,554
____________
(1) Includes $20 million, $60 million, $(24) million, $(47) million and $67 million of cumulative change in fair value of funds withheld and modified coinsurance embedded derivatives as described on page 3, as of June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025 and June 30, 2025, respectively.
Page 6
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
COMBINING BALANCE SHEETS
(in millions)
As of June 30, 2026
Consolidated PFI
Closed Block Division
PFI Excluding Closed Block Division
PGIM
U.S. Businesses
Japan Businesses
Corporate and Other
Assets:
Total investments
481,837
45,668
436,169
4,455
253,922
153,225
24,567
Deferred policy acquisition costs
21,880
138
21,742
—
12,661
8,885
196
Other assets
80,887
964
79,923
5,580
57,334
16,793
216
Separate account assets
198,950
—
198,950
29,673
173,344
—
(4,067)
Total assets
783,554
46,770
736,784
39,708
497,261
178,903
20,912
Liabilities:
Future policy benefits
260,944
40,582
220,362
—
120,130
86,802
13,430
Policyholders' account balances
202,223
4,212
198,011
—
134,265
63,558
188
Debt
20,618
—
20,618
1,936
4,516
225
13,941
Other liabilities
66,232
3,563
62,669
3,944
46,162
9,229
3,334
Separate account liabilities
198,950
—
198,950
29,673
173,344
—
(4,067)
Total liabilities
748,967
48,357
700,610
35,553
478,417
159,814
26,826
Mezzanine Equity:
Redeemable noncontrolling interests
2,652
—
2,652
946
—
—
1,706
Total mezzanine equity
2,652
—
2,652
946
—
—
1,706
Equity:
Accumulated other comprehensive income (loss)
(4,060)
(159)
(3,901)
(59)
(1,296)
783
(3,329)
Other equity (1)
35,637
(1,439)
37,076
3,096
20,063
18,279
(4,362)
Total Prudential Financial, Inc. equity
31,577
(1,598)
33,175
3,037
18,767
19,062
(7,691)
Noncontrolling interests
358
11
347
172
77
27
71
Total equity
31,935
(1,587)
33,522
3,209
18,844
19,089
(7,620)
Total liabilities, mezzanine equity and equity
783,554
46,770
736,784
39,708
497,261
178,903
20,912
As of December 31, 2025
Consolidated PFI
Closed Block Division
PFI Excluding Closed Block Division
PGIM
U.S. Businesses
Japan Businesses
Corporate and Other
Assets:
Total investments
470,519
46,523
423,996
3,652
238,445
154,757
27,142
Deferred policy acquisition costs
21,530
144
21,386
—
12,359
8,901
126
Other assets
85,440
1,428
84,012
6,173
57,527
17,712
2,600
Separate account assets
196,251
—
196,251
29,278
171,022
—
(4,049)
Total assets
773,740
48,095
725,645
39,103
479,353
181,370
25,819
Liabilities:
Future policy benefits
266,914
41,484
225,430
—
121,068
91,576
12,786
Policyholders' account balances
191,307
4,272
187,035
—
123,538
61,635
1,862
Debt
20,299
—
20,299
2,070
4,619
211
13,399
Other liabilities
63,388
3,942
59,446
3,329
41,316
8,198
6,603
Separate account liabilities
196,251
—
196,251
29,278
171,022
—
(4,049)
Total liabilities
738,159
49,698
688,461
34,677
461,563
161,620
30,601
Mezzanine Equity:
Redeemable noncontrolling interest
2,794
—
2,794
1,175
—
—
1,619
Total mezzanine equity
2,794
—
2,794
1,175
—
—
1,619
Equity:
Accumulated other comprehensive income (loss)
(3,077)
(155)
(2,922)
(50)
(496)
960
(3,336)
Other equity (1)
35,515
(1,459)
36,974
3,144
18,207
18,763
(3,140)
Total Prudential Financial, Inc. equity
32,438
(1,614)
34,052
3,094
17,711
19,723
(6,476)
Noncontrolling interests
349
11
338
157
79
27
75
Total equity
32,787
(1,603)
34,390
3,251
17,790
19,750
(6,401)
Total liabilities, mezzanine equity and equity
773,740
48,095
725,645
39,103
479,353
181,370
25,819
____________
(1) Includes $20 million and $(24) million of cumulative change in fair value of funds withheld and modified coinsurance embedded derivatives as described on page 3, as of June 30, 2026 and December 31, 2025, respectively.
Page 7
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED
(in millions)
As of June 30, 2026
As of December 31, 2025
Senior Debt
Senior Debt
Short-term Debt
Long-term Debt
Junior Subordinated Long-term Debt
Total Debt
Short-term Debt
Long-term Debt
Junior Subordinated Long-term Debt
Total Debt
Borrowings by use of proceeds:
Capital Debt
48
6,568
7,590
14,206
36
6,464
7,595
14,095
Operating Debt
875
4,361
749
5,985
1,374
4,359
—
5,733
Limited recourse and non-recourse borrowing
32
395
—
427
33
438
—
471
Total Debt
955
11,324
8,339
20,618
1,443
11,261
7,595
20,299
As of June 30, 2026
As of December 31, 2025
Prudential Financial, Inc.
The Prudential Insurance Company of America (1)
Other Affiliates
Total Debt
Prudential Financial, Inc.
The Prudential Insurance Company of America (1)
Other Affiliates
Total Debt
Borrowings by sources:
Capital Debt
14,168
—
38
14,206
14,055
—
40
14,095
Operating Debt
5,135
850
—
5,985
4,884
849
—
5,733
Limited recourse and non-recourse borrowing
—
28
399
427
—
33
438
471
Total Debt
19,303
878
437
20,618
18,939
882
478
20,299
__________
(1) Includes Prudential Funding, LLC.
Page 8
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
STATEMENTS OF OPERATIONS - PGIM
(in millions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
% change
Revenues (1):
Premiums
—
—
—
—
—
—
—
—
Policy charges and fee income
—
—
—
—
—
—
—
—
Net investment income
59
54
48
34
73
79
107
35%
Asset management fees, commissions and other income
984
1,041
1,060
1,006
1,034
1,949
2,040
5%
Total revenues
1,043
1,095
1,108
1,040
1,107
2,028
2,147
6%
Benefits and expenses (1):
Insurance and annuity benefits
—
—
—
—
—
—
—
—
Change in estimates of liability for future policy benefits
—
—
—
—
—
—
—
—
Interest credited to policyholders' account balances
—
—
—
—
—
—
—
—
Interest expense
24
27
28
25
24
45
49
9%
Deferral of acquisition costs
—
—
—
—
—
—
—
—
Amortization of acquisition costs
—
—
—
—
—
—
—
—
Operating expenses
477
503
489
525
469
981
994
1%
Variable expenses
313
321
342
300
320
617
620
—%
Total benefits and expenses
814
851
859
850
813
1,643
1,663
1%
Adjusted operating income (loss) before income taxes
229
244
249
190
294
385
484
26%
Total revenues
1,043
1,095
1,108
1,040
1,107
2,028
2,147
6%
Less: Passthrough distribution revenue
20
21
21
20
20
41
40
-2%
Less: Revenue associated with consolidations
50
45
42
23
44
68
67
-1%
Total adjusted revenues (2)
973
1,029
1,045
997
1,043
1,919
2,040
6%
Adjusted operating margin (2)(3)
23.5
%
23.7
%
23.8
%
19.1
%
28.2
%
20.1
%
23.7
%
__________
(1) Revenues exclude realized investment gains, net of losses. Benefits and expenses include charges for income attributable to noncontrolling interests and redeemable noncontrolling interests and exclude certain components of the consideration for acquisitions.
(2) Not calculated in accordance with GAAP. Adjusted revenue excludes pass-through distribution revenue, revenue attributable to consolidated entities and revenue associated with certain incentive fee-related compensation expense. Adjusted operating income before income taxes as a percentage of total adjusted revenues.
(3) Reported Operating Margin based on total revenues is 26.8%, 18.3%, 22.5%, 22.3% and 22.0% for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively, and 22.7% and 19.0% for the six months ended June 30, 2026 and June 30, 2025, respectively.
Page 9
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
PGIM - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION
(in millions, or as otherwise noted)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
% change
Supplementary Revenue Information:
Analysis of revenues by type:
Asset management fees
825
844
858
847
864
1,653
1,711
4%
Other related revenues (1)
82
93
107
65
94
120
159
33%
Service, distribution and other revenues
136
158
143
128
149
255
277
9%
Total PGIM revenues
1,043
1,095
1,108
1,040
1,107
2,028
2,147
6%
Analysis of asset management fees by source:
Institutional customers - Third Party
387
395
399
398
402
774
800
3%
Retail customers - Third Party
219
231
236
216
224
444
440
-1%
Affiliated
219
218
223
233
238
435
471
8%
Total asset management fees
825
844
858
847
864
1,653
1,711
4%
Trailing twelve months net flows by source (in billions):
Institutional customers - Third Party
10.2
12.7
6.1
0.1
0.6
Retail customers - Third Party
(1.5)
(2.5)
(4.0)
(3.6)
0.7
Affiliated
16.0
11.3
(1.6)
(3.4)
(7.0)
Total net flows
24.7
21.5
0.5
(6.9)
(5.7)
Trailing twelve months net flows by asset class (in billions):
Public equity
(9.3)
(15.2)
(17.9)
(22.6)
(27.2)
Public credit
23.0
26.9
22.3
21.5
28.8
Private credit
8.4
7.3
5.2
3.8
2.9
Real estate
2.8
1.7
4.3
3.6
3.8
Multi-asset
0.1
(0.1)
(14.6)
(14.2)
(14.7)
Other alternatives
(0.3)
0.9
1.2
1.0
0.7
Total net flows
24.7
21.5
0.5
(6.9)
(5.7)
Supplementary Assets Under Management Information (at fair market value) (in billions):
June 30, 2026
Public Equity
Public Credit
Private Credit
Real Estate
Multi-Asset
Other Alternatives
Total
Institutional customers - Third Party
80.7
472.8
30.5
71.1
1.5
6.4
663.0
Retail customers - Third Party
107.4
172.2
0.1
—
2.3
0.3
282.3
Affiliated
42.7
276.2
89.1
64.6
72.4
1.0
546.0
Total
230.8
921.2
119.7
135.7
76.2
7.7
1,491.3
June 30, 2025
Public Equity
Public Credit
Private Credit
Real Estate
Multi-Asset
Other Alternatives
Total
Institutional customers - Third Party
81.2
461.5
28.3
69.2
1.4
6.0
647.6
Retail customers - Third Party
108.0
145.8
—
0.2
2.4
0.3
256.7
Affiliated
37.6
270.4
87.7
62.9
76.5
1.3
536.4
Total
226.8
877.7
116.0
132.3
80.3
7.6
1,440.7
__________
(1) Other related revenues, net of related expenses are $57 million, $35 million, $57 million, $64 million and $49 million for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025 and June 30, 2025, respectively, and $92 million and $68 million for the six months ended June 30, 2026 and June 30, 2025, respectively.
Page 10
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
PGIM - SUPPLEMENTARY ASSETS UNDER MANAGEMENT INFORMATION
(in billions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
Institutional Customers - Third Party - Assets Under Management (at fair market value):
Beginning assets under management
620.2
647.6
654.9
652.0
638.8
601.1
652.0
Additions
22.1
18.8
20.6
24.7
22.3
45.9
47.0
Withdrawals
(19.5)
(18.5)
(25.0)
(23.1)
(19.2)
(35.7)
(42.3)
Net institutional additions (withdrawals), excluding realizations, distributions and money market activity
2.6
0.3
(4.4)
1.6
3.1
10.2
4.7
Realizations and distributions (1)
(2.3)
(4.0)
(3.1)
(3.1)
(1.9)
(6.5)
(5.0)
Change in market value
24.0
15.6
4.1
(8.3)
21.9
30.6
13.6
Net money market flows
0.8
(0.3)
0.5
(3.7)
1.3
2.5
(2.4)
Other (2)
2.3
(4.3)
—
0.3
(0.2)
9.7
0.1
Ending assets under management
647.6
654.9
652.0
638.8
663.0
647.6
663.0
Retail Customers - Third Party - Assets Under Management (at fair market value):
Beginning assets under management
240.6
256.7
265.2
267.0
259.0
244.9
267.0
Additions
16.0
16.2
21.5
21.6
19.9
33.7
41.5
Withdrawals
(18.8)
(15.9)
(22.8)
(21.4)
(18.4)
(36.7)
(39.8)
Net retail additions (withdrawals), excluding money market activity
(2.8)
0.3
(1.3)
0.2
1.5
(3.0)
1.7
Change in market value
18.6
9.2
2.7
(8.6)
19.6
13.1
11.0
Net money market flows
0.5
0.7
0.7
1.1
2.4
2.3
3.5
Other (2)
(0.2)
(1.7)
(0.3)
(0.7)
(0.2)
(0.6)
(0.9)
Ending assets under management
256.7
265.2
267.0
259.0
282.3
256.7
282.3
Affiliated - Assets Under Management (at fair market value):
Beginning assets under management
524.5
536.4
549.9
547.1
535.5
529.2
547.1
Additions
19.8
15.8
17.3
18.2
16.8
40.4
35.0
Withdrawals
(19.2)
(14.0)
(21.2)
(20.1)
(19.8)
(39.9)
(39.9)
Net affiliated additions (withdrawals), excluding realizations, distributions and money market activity
0.6
1.8
(3.9)
(1.9)
(3.0)
0.5
(4.9)
Realizations and distributions (1)
—
(0.6)
(0.1)
(0.1)
(0.1)
(0.1)
(0.2)
Change in market value
10.9
13.2
2.8
(6.4)
14.9
14.8
8.5
Net money market flows
(2.1)
—
1.5
(2.5)
(0.6)
(7.4)
(3.1)
Other (2)
2.5
(0.9)
(3.1)
(0.7)
(0.7)
(0.6)
(1.4)
Ending assets under management
536.4
549.9
547.1
535.5
546.0
536.4
546.0
__________
(1) Realizations reflect proceeds from the disposition or monetization of assets from closed end funds and from collateralized loan obligations. Distributions reflect income and dividend distributions related to certain closed and open ended private alternative funds and collateralized loan obligations.
(2) In third quarter 2025, Prudential completed the sale of its ownership in the PGIM SITE business in Taiwan to E.SUN Financial Holding Co., Ltd. and the outflows of $4.0 billion and $1.4 billion are reflected in institutional and retail, respectively.
Page 11
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES
(in millions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
% change
Revenues (1):
Premiums
3,724
5,897
4,401
4,894
3,575
7,122
8,469
19%
Policy charges and fee income
993
1,046
1,016
1,006
1,041
2,028
2,047
1%
Net investment income
2,760
2,948
2,982
3,066
3,091
5,460
6,157
13%
Asset management fees, commissions and other income
561
590
570
506
547
1,157
1,053
-9%
Total revenues
8,038
10,481
8,969
9,472
8,254
15,767
17,726
12%
Benefits and expenses (1):
Insurance and annuity benefits
4,750
6,928
5,503
6,049
4,629
9,313
10,678
15%
Change in estimates of liability for future policy benefits
68
117
45
21
160
57
181
218%
Interest credited to policyholders' account balances
754
808
856
886
953
1,478
1,839
24%
Interest expense
286
291
299
295
294
581
589
1%
Deferral of acquisition costs
(431)
(426)
(432)
(393)
(428)
(842)
(821)
2%
Amortization of acquisition costs
233
234
244
241
255
460
496
8%
Operating expenses
583
499
522
556
543
1,113
1,099
-1%
Variable expenses
810
842
860
840
850
1,669
1,690
1%
Total benefits and expenses
7,053
9,293
7,897
8,495
7,256
13,829
15,751
14%
Adjusted operating income (loss) before income taxes
985
1,188
1,072
977
998
1,938
1,975
2%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, and include charges for income attributable to noncontrolling interests and redeemable noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates.
Page 12
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT
(in millions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
% change
Revenues (1):
Premiums (2)
2,127
4,290
2,832
3,245
1,952
3,873
5,197
34%
Policy charges and fee income
25
31
28
31
33
55
64
16%
Net investment income
1,819
1,963
1,998
2,085
2,096
3,577
4,181
17%
Asset management fees, commissions and other income
135
159
151
118
134
289
252
-13%
Total revenues
4,106
6,443
5,009
5,479
4,215
7,794
9,694
24%
Benefits and expenses (1):
Insurance and annuity benefits
2,809
4,889
3,524
3,935
2,642
5,249
6,577
25%
Change in estimates of liability for future policy benefits
123
112
53
25
153
98
178
82%
Interest credited to policyholders' account balances
512
559
607
648
690
986
1,338
36%
Interest expense
9
7
12
11
7
24
18
-25%
Deferral of acquisition costs
(206)
(181)
(166)
(174)
(177)
(414)
(351)
15%
Amortization of acquisition costs
68
68
87
79
89
132
168
27%
Operating expenses
138
137
135
146
146
276
292
6%
Variable expenses
226
215
200
216
232
468
448
-4%
Total benefits and expenses
3,679
5,806
4,452
4,886
3,782
6,819
8,668
27%
Adjusted operating income (loss) before income taxes
427
637
557
593
433
975
1,026
5%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses.
(2) Includes pension risk transfer premiums of $0.2 billion, $1.4 billion, $1.0 billion, $2.4 billion and $0.2 billion for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively, and $1.6 billion and $0.2 billion for the six months ended June 30, 2026 and June 30, 2025, respectively.
Page 13
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
U.S. BUSINESSES - RETIREMENT - SALES RESULTS AND ACCOUNT VALUES
(in millions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
Sales and Additions:
Retail annuities (1)
3,135
3,377
3,574
3,284
3,585
6,608
6,869
Longevity reinsurance (2)
5,581
1,476
80
154
980
10,503
1,134
Fee-based stable value
1,048
551
1,086
1,113
915
2,129
2,028
Pension risk transfer and other (3)
2,225
4,326
2,520
2,818
1,367
3,273
4,185
Total
11,989
9,730
7,260
7,369
6,847
22,513
14,216
Account Value:
Beginning account value, gross
340,617
359,635
365,143
370,038
369,081
333,243
370,038
Sales and additions
11,989
9,730
7,260
7,369
6,847
22,513
14,216
Withdrawals and benefits
(6,188)
(7,223)
(7,682)
(8,057)
(6,627)
(13,480)
(14,684)
Net flows
5,801
2,507
(422)
(688)
220
9,033
(468)
Change in market value, interest credited and policy charges
5,525
6,207
4,190
1,517
7,029
7,152
8,546
Other (4)
7,692
(3,206)
1,127
(1,786)
349
10,207
(1,437)
Ending account value, gross
359,635
365,143
370,038
369,081
376,679
359,635
376,679
Reinsurance ceded
(11,579)
(11,987)
(12,888)
(13,336)
(13,949)
(11,579)
(13,949)
Ending account value, net
348,056
353,156
357,150
355,745
362,730
348,056
362,730
Amounts included in net flows above:
Retail annuities (1)
2,472
2,614
2,785
2,429
2,629
5,295
5,058
Longevity reinsurance (2)
3,873
(311)
(1,706)
(1,664)
(838)
7,258
(2,502)
Fee-based stable value
(25)
(1,049)
(1,191)
(1,257)
(99)
(908)
(1,356)
Pension risk transfer and other (3)
(519)
1,253
(310)
(196)
(1,472)
(2,612)
(1,668)
Total
5,801
2,507
(422)
(688)
220
9,033
(468)
Amounts included in ending account value, net above:
Retail annuities (1)
49,649
54,553
57,532
58,177
65,648
Longevity reinsurance (2)
125,534
122,682
123,120
120,015
120,662
Fee-based stable value
67,362
67,727
67,763
67,518
67,060
Pension risk transfer and other (3)
105,511
108,194
108,735
110,035
109,360
Total
348,056
353,156
357,150
355,745
362,730
__________
(1) Primarily includes FlexGuard suite (Registered Index-Linked Annuities) and fixed annuity products.
(2) Represents notional amounts based on present value of future benefits under longevity reinsurance contracts.
(3) Includes spread-based stable value, structured settlements and funding agreement-backed notes.
(4) Other activity includes the effect of foreign exchange rate changes associated with our United Kingdom international reinsurance business, net presentation of receipts and payments related to funding agreements backed commercial paper which typically have maturities of less than 90 days, and changes in asset balances for externally-managed accounts.
Page 14
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - GROUP INSURANCE
(in millions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
% change
Revenues (1):
Premiums
1,349
1,353
1,321
1,390
1,360
2,745
2,750
—%
Policy charges and fee income
184
183
164
186
178
381
364
-4%
Net investment income
133
138
138
138
146
267
284
6%
Asset management fees, commissions and other income
21
20
22
20
24
42
44
5%
Total revenues
1,687
1,694
1,645
1,734
1,708
3,435
3,442
—%
Benefits and expenses (1):
Insurance and annuity benefits
1,230
1,272
1,224
1,318
1,208
2,526
2,526
—%
Change in estimates of liability for future policy benefits
—
—
—
—
(3)
—
(3)
—
Interest credited to policyholders' account balances
32
33
37
33
32
67
65
-3%
Interest expense
5
7
4
5
4
10
9
-10%
Deferral of acquisition costs
(4)
—
—
—
(25)
(4)
(25)
-525%
Amortization of acquisition costs
4
2
1
2
2
6
4
-33%
Operating expenses
186
181
190
206
199
380
405
7%
Variable expenses
109
109
112
132
136
236
268
14%
Total benefits and expenses
1,562
1,604
1,568
1,696
1,553
3,221
3,249
1%
Adjusted operating income (loss) before income taxes
125
90
77
38
155
214
193
-10%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses.
Page 15
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
U.S. BUSINESSES - GROUP INSURANCE SUPPLEMENTARY INFORMATION
(dollar amounts in millions, or as otherwise noted)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
Annualized New Business Premiums:
Group life
35
36
29
211
17
260
228
Group disability
42
42
27
315
56
217
371
Total
77
78
56
526
73
477
599
Future Policy Benefits (1):
Group life
2,396
2,334
2,306
2,328
2,198
Group disability
3,316
3,345
3,398
3,472
3,529
Total
5,712
5,679
5,704
5,800
5,727
Policyholders' Account Balances (1):
Group life
4,460
4,503
4,732
4,493
4,618
Group disability
104
99
100
106
108
Total
4,564
4,602
4,832
4,599
4,726
Separate Account Liabilities (1):
Group life
26,364
26,988
26,916
26,737
28,058
Group Life Insurance:
Gross premiums, policy charges and fee income (2)
1,195
1,155
1,159
1,141
1,209
2,391
2,350
Earned premiums
935
952
916
946
907
1,931
1,853
Earned policy charges and fee income
156
154
137
156
147
327
303
Benefits ratio (3)
83.1
%
84.1
%
81.3
%
86.0
%
81.2
%
85.2
%
83.6
%
Administrative expense ratio
11.5
%
10.5
%
11.7
%
11.5
%
11.3
%
11.1
%
11.4
%
Persistency ratio
96.8
%
96.5
%
96.1
%
96.5
%
96.3
%
Group Disability Insurance:
Gross premiums, policy charges and fee income (2)
447
434
432
477
490
876
967
Earned premiums
414
401
405
444
453
814
897
Earned policy charges and fee income
28
29
27
30
31
54
61
Benefits ratio (3)
75.3
%
79.7
%
85.3
%
78.4
%
78.5
%
70.6
%
78.4
%
Administrative expense ratio
24.8
%
24.0
%
24.9
%
26.2
%
23.8
%
25.3
%
25.0
%
Persistency ratio
94.1
%
92.9
%
91.8
%
94.2
%
93.7
%
Total Group Insurance:
Benefits ratio (3)
80.9
%
82.8
%
82.5
%
83.7
%
80.4
%
81.1
%
82.0
%
Administrative expense ratio
15.2
%
14.2
%
15.5
%
15.9
%
15.1
%
15.0
%
15.5
%
Net face amount of policies in force (in billions) (4)
2,118
2,118
2,117
2,059
2,108
__________
(1) As of end of period.
(2) Before returns of premiums to participating policyholders for favorable claims experience.
(3) Benefits ratios excluding the impact of the annual assumption updates and other refinements in the second quarter. Benefits ratios including these impacts for Group Life, Group Disability, and Total Group Insurance are 76.2%, 82.7% and 78.3% for the three months ended June 30, 2026, respectively, and 82.4%, 74.7% and 80.2% for the three months ended June 30, 2025, respectively.
(4) At end of period; net of reinsurance.
Page 16
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - INDIVIDUAL LIFE
(in millions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
% change
Revenues (1):
Premiums
232
236
231
234
232
469
466
-1%
Policy charges and fee income
354
454
445
431
460
784
891
14%
Net investment income
348
371
358
368
377
708
745
5%
Asset management fees, commissions and other income
80
82
90
88
92
164
180
10%
Total revenues
1,014
1,143
1,124
1,121
1,161
2,125
2,282
7%
Benefits and expenses (1):
Insurance and annuity benefits
427
482
422
462
457
949
919
-3%
Change in estimates of liability for future policy benefits
(38)
(5)
(3)
(8)
(7)
(31)
(15)
52%
Interest credited to policyholders' account balances
143
153
149
147
163
289
310
7%
Interest expense
102
104
105
105
104
213
209
-2%
Deferral of acquisition costs
(209)
(236)
(250)
(216)
(222)
(399)
(438)
-10%
Amortization of acquisition costs
104
105
106
108
111
210
219
4%
Operating expenses
156
105
104
115
110
265
225
-15%
Variable expenses
247
282
305
269
269
495
538
9%
Total benefits and expenses
932
990
938
982
985
1,991
1,967
-1%
Adjusted operating income (loss) before income taxes
82
153
186
139
176
134
315
135%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses. Revenues and Benefits and expenses exclude market experience updates.
Page 17
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
U.S. BUSINESSES - INDIVIDUAL LIFE SUPPLEMENTARY INFORMATION
(in millions, or as otherwise noted)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
ANNUALIZED NEW BUSINESS PREMIUMS (1):
Term life
39
37
36
38
42
71
80
Universal life
18
24
21
17
20
36
37
Variable life
160
186
201
196
175
314
371
Total
217
247
258
251
237
421
488
ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):
Prudential Advisors
43
48
49
44
50
81
94
Third party distribution
174
199
209
207
187
340
394
Total
217
247
258
251
237
421
488
ACCOUNT VALUE ACTIVITY:
Policyholders' Account Balances (2):
Beginning account balance
19,289
19,679
19,940
20,118
20,238
19,161
20,118
Premiums and deposits
346
349
361
392
348
693
740
Surrenders and withdrawals
(467)
(419)
(557)
(460)
(454)
(884)
(914)
Net sales (redemptions)
(121)
(70)
(196)
(68)
(106)
(191)
(174)
Benefit payments
(27)
(31)
53
(19)
(20)
(58)
(39)
Net flows
(148)
(101)
(143)
(87)
(126)
(249)
(213)
Interest credited and other
508
304
179
131
593
732
724
Net transfers (to) from separate account
168
193
288
219
242
313
461
Policy charges
(138)
(135)
(146)
(143)
(140)
(278)
(283)
Ending account balance
19,679
19,940
20,118
20,238
20,807
19,679
20,807
Separate Account Liabilities:
Beginning account balance
53,323
57,995
61,376
62,594
60,704
54,803
62,594
Premiums and deposits
1,084
1,117
1,293
1,177
1,115
2,047
2,292
Surrenders and withdrawals
(315)
(442)
(558)
(349)
(424)
(641)
(773)
Net sales (redemptions)
769
675
735
828
691
1,406
1,519
Benefit payments
(165)
(170)
(244)
(288)
(98)
(349)
(386)
Net flows
604
505
491
540
593
1,057
1,133
Change in market value, interest credited and other
4,608
3,450
1,398
(1,825)
6,935
3,194
5,110
Net transfers (to) from general account
(168)
(193)
(288)
(219)
(242)
(313)
(461)
Policy charges
(372)
(381)
(383)
(386)
(390)
(746)
(776)
Ending account balance
57,995
61,376
62,594
60,704
67,600
57,995
67,600
NET FACE AMOUNT IN FORCE (in billions) (3):
Term life
284
282
284
289
293
Universal life
25
25
25
25
25
Variable life
170
174
176
177
182
Total
479
481
485
491
500
__________
(1) Excludes corporate-owned life insurance.
(2) Includes fixed rate funds, alliance deposits, supplementary contracts and deferred revenues on variable and universal products.
(3) At end of period; net of reinsurance. Net Face Amount In Force excludes certain policies considered to be non-core business drivers impacting adjusted operating income for Individual Life. Policies within the Closed Block division are not reported through Individual Life.
Page 18
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - U.S. LEGACY PRODUCTS
(in millions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
% change
Revenues (1):
Premiums
16
18
17
25
31
35
56
60%
Policy charges and fee income
430
378
379
358
370
808
728
-10%
Net investment income
460
476
488
475
472
908
947
4%
Asset management fees, commissions and other income
325
329
307
280
297
662
577
-13%
Total revenues
1,231
1,201
1,191
1,138
1,170
2,413
2,308
-4%
Benefits and expenses (1):
Insurance and annuity benefits
284
285
333
334
322
589
656
11%
Change in estimates of liability for future policy benefits
(17)
10
(5)
4
17
(10)
21
310%
Interest credited to policyholders' account balances
67
63
63
58
68
136
126
-7%
Interest expense
170
173
178
174
179
334
353
6%
Deferral of acquisition costs
(12)
(9)
(16)
(3)
(4)
(25)
(7)
72%
Amortization of acquisition costs
57
59
50
52
53
112
105
-6%
Operating expenses
103
76
93
89
88
192
177
-8%
Variable expenses
228
236
243
223
213
470
436
-7%
Total benefits and expenses
880
893
939
931
936
1,798
1,867
4%
Adjusted operating income (loss) before income taxes
351
308
252
207
234
615
441
-28%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses. Revenues and Benefits and expenses exclude market experience updates.
Page 19
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
U.S. BUSINESSES - U.S. LEGACY PRODUCTS - SUPPLEMENTARY INFORMATION
(in millions, or as otherwise noted)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
Annuities Account Value (1):
Beginning account value, gross
89,139
90,263
90,034
87,203
81,636
93,598
87,203
Premiums and deposits (2)
8
4
6
5
5
14
10
Full surrenders and death benefits
(2,170)
(2,633)
(2,576)
(2,425)
(2,613)
(4,647)
(5,038)
Premiums and deposits net of full surrenders and death benefits
(2,162)
(2,629)
(2,570)
(2,420)
(2,608)
(4,633)
(5,028)
Partial withdrawals and other benefit payments
(1,036)
(1,049)
(1,228)
(1,131)
(934)
(2,217)
(2,065)
Net flows
(3,198)
(3,678)
(3,798)
(3,551)
(3,542)
(6,850)
(7,093)
Change in market value interest credited and other
4,802
3,935
1,433
(1,583)
5,787
4,470
4,204
Policy charges
(480)
(486)
(466)
(433)
(426)
(955)
(859)
Ending account value, gross
90,263
90,034
87,203
81,636
83,455
90,263
83,455
Reinsurance ceded
(8,393)
(8,315)
(7,954)
(7,575)
(7,361)
(8,393)
(7,361)
Ending account value, net
81,870
81,719
79,249
74,061
76,094
81,870
76,094
Guaranteed Universal Life Policyholders' Account Balances (3):
Beginning account balance, gross
14,655
14,685
14,720
14,897
14,921
14,611
14,897
Premiums and deposits (2)
342
338
479
331
316
692
647
Surrenders and withdrawals
(26)
(26)
(29)
(24)
(26)
(58)
(50)
Net premiums (redemptions)
316
312
450
307
290
634
597
Benefit payments
(44)
(29)
(24)
(31)
(31)
(74)
(62)
Net flows
272
283
426
276
259
560
535
Interest credited and other
139
140
140
131
137
280
268
Policy charges
(381)
(388)
(389)
(383)
(381)
(766)
(764)
Ending account balance, gross
14,685
14,720
14,897
14,921
14,936
14,685
14,936
Reinsurance ceded
(9,043)
(9,077)
(9,244)
(9,273)
(9,291)
(9,043)
(9,291)
Ending account balance, net
5,642
5,643
5,653
5,648
5,645
5,642
5,645
Net Face Amount In Force (in billions) (4):
Guaranteed Universal Life
37
37
37
37
37
__________
(1) Represents discontinued annuities and guaranteed living benefits in general account and separate account. Includes alliance deposits and supplementary contracts.
(2) Represents renewal premiums or additional deposits on existing policies/contracts.
(3) Includes fixed rate funds and deferred revenues on guaranteed universal life products.
(4) At end of period; net of reinsurance.
Page 20
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
U.S. BUSINESSES - U.S. LEGACY PRODUCTS - MARKET RISK BENEFIT FEATURES
(in millions)
2025
2026
2Q
3Q
4Q
1Q
2Q
MARKET RISK BENEFITS ACCOUNT VALUES AND NET AMOUNT AT RISK (1):
Market Risk Benefits Account Values by Risk Management Design:
Account Values with Auto-Rebalancing Feature - risk retained by Prudential
62,634
62,435
60,554
56,589
58,028
Account Values with Auto-Rebalancing Feature - externally reinsured
1,758
1,713
1,628
1,493
1,495
Account Values without Auto-Rebalancing Feature
21,733
21,711
20,937
19,584
19,867
Total
86,125
85,859
83,119
77,666
79,390
Market Risk Benefits Net Amount at Risk by Product Design Type:
Net Amount at Risk with Auto-Rebalancing Feature
6,104
5,575
5,558
6,252
5,325
Net Amount at Risk without Auto-Rebalancing Feature
2,632
2,421
2,517
2,750
2,588
Total
8,736
7,996
8,075
9,002
7,913
__________
(1) At end of period.
Page 21
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
STATEMENTS OF OPERATIONS - JAPAN BUSINESSES
(in millions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
% change
Revenues (1):
Premiums
2,370
2,452
2,246
2,571
2,332
5,142
4,903
-5%
Policy charges and fee income
92
96
105
118
114
180
232
29%
Net investment income
1,354
1,437
1,465
1,463
1,475
2,700
2,938
9%
Asset management fees, commissions and other income
95
95
68
72
120
173
192
11%
Total revenues
3,911
4,080
3,884
4,224
4,041
8,195
8,265
1%
Benefits and expenses (1):
Insurance and annuity benefits
2,222
2,321
2,160
2,388
2,044
4,768
4,432
-7%
Change in estimates of liability for future policy benefits
17
(19)
6
22
200
19
222
1068%
Interest credited to policyholders' account balances
369
390
402
414
425
716
839
17%
Interest expense
(1)
(1)
(2)
—
1
(5)
1
120%
Deferral of acquisition costs
(255)
(261)
(224)
(218)
(184)
(525)
(402)
23%
Amortization of acquisition costs
155
154
157
154
157
310
311
—%
Operating expenses
395
394
409
487
457
772
944
22%
Variable expenses
355
352
311
287
247
733
534
-27%
Total benefits and expenses
3,257
3,330
3,219
3,534
3,347
6,788
6,881
1%
Adjusted operating income (loss) before income taxes
654
750
665
690
694
1,407
1,384
-2%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, change in value of market risk benefits, net of related hedging gains (losses) and include revenues representing equity in earnings of joint ventures and other operating entities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to noncontrolling interests and redeemable noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates.
Page 22
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
JAPAN BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
(in millions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
Actual exchange rate basis (1):
Net premiums, policy charges and fee income
2,462
2,548
2,351
2,689
2,446
5,322
5,135
Annualized new business premiums
453
453
410
328
258
931
586
Annualized new business premiums by distribution channel:
Life Planners
172
173
173
101
22
387
123
Life Consultants
150
138
110
105
109
280
214
Banks
68
82
67
57
48
140
105
Independent Agency and Other
63
60
60
65
79
124
144
Total
453
453
410
328
258
931
586
Constant exchange rate basis (2):
Net premiums, policy charges and fee income
2,439
2,550
2,395
2,770
2,533
5,352
5,303
Annualized new business premiums
450
454
417
335
262
933
597
Annualized new business premiums by distribution channel:
Life Planners
169
174
178
106
22
389
128
Life Consultants
150
138
111
107
110
281
217
Banks
69
82
67
57
49
140
106
Independent Agency and Other
62
60
61
65
81
123
146
Total
450
454
417
335
262
933
597
__________
(1) Translated based on applicable average exchange rates for the period shown.
(2) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 147 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.
Page 23
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
JAPAN BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
2025
2026
2Q
3Q
4Q
1Q
2Q
Face amount of individual policies in force at end of period (in billions) (1)(2)
(Constant exchange rate basis)
517
515
512
506
501
Policyholder Account Balances at end of period (in millions) (1)(2)
(Constant exchange rate basis)
51,350
53,300
54,748
55,483
56,890
Number of individual policies in force at end of period (in thousands) (3)
11,116
11,142
11,136
11,045
10,945
Life insurance individual policy persistency:
13 months
94.5
%
95.5
%
95.9
%
95.8
%
95.7
%
25 months
85.1
%
85.0
%
86.1
%
87.7
%
88.9
%
Number of Life Planners at end of period
4,285
4,282
4,283
4,243
4,068
Number of Life Consultants at end of period
6,822
6,940
6,983
6,947
6,917
__________
(1) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 147 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.
(2) Net of reinsurance.
(3) Direct business only; policy count includes annuities.
Page 24
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
STATEMENTS OF OPERATIONS - CORPORATE AND OTHER
(in millions)
2025
2026
Year-to-date
2Q
3Q
4Q
1Q
2Q
2025
2026
% change
Revenues (1):
Premiums
(1)
—
21
2
3
(3)
5
267%
Policy charges and fee income
(15)
(16)
(14)
(16)
(16)
(30)
(32)
-7%
Net investment income
330
330
348
301
345
660
646
-2%
Asset management fees, commissions and other income
(249)
(228)
(267)
(338)
(179)
(571)
(517)
9%
Total revenues
65
86
88
(51)
153
56
102
82%
Benefits and expenses (1):
Insurance and annuity benefits
5
2
21
2
3
2
5
150%
Change in estimates of liability for future policy benefits
—
—
—
—
—
—
—
—
Interest credited to policyholders' account balances
12
17
13
4
2
24
6
-75%
Interest expense
216
212
204
216
216
423
432
2%
Deferral of acquisition costs
39
35
37
32
33
72
65
-10%
Amortization of acquisition costs
(15)
(14)
(15)
(17)
(17)
(31)
(34)
-10%
Operating expenses
190
170
371
90
245
347
335
-3%
Variable expenses
(21)
17
(7)
(31)
6
(5)
(25)
-400%
Total benefits and expenses
426
439
624
296
488
832
784
-6%
Adjusted operating income (loss) before income taxes
(361)
(353)
(536)
(347)
(335)
(776)
(682)
12%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses and goodwill impairment and certain components of consideration for a business acquisition, which are recognized as compensation expense over the requisite service periods. Revenues and Benefits and expenses include consolidating adjustments.
Page 25
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
INVESTMENT PORTFOLIO COMPOSITION
(in millions)
June 30, 2026
December 31, 2025
Total Portfolio
Closed Block Division
Funds Withheld (1)
PFI Excluding Closed Block Division and Funds Withheld
Total Portfolio
Closed Block Division
Funds Withheld (1)
PFI Excluding Closed Block Division and Funds Withheld
Amount
% of Total
Amount
% of Total
Fixed maturities:
Public, available-for-sale, at fair value
239,451
17,934
4,714
216,803
52.8
%
238,205
18,833
4,576
214,796
53.6
%
Private, available-for-sale, at fair value
93,913
10,018
2,087
81,808
19.9
%
92,900
10,049
2,217
80,634
20.2
%
Fixed maturities, trading, at fair value
15,429
550
9,945
4,934
1.2
%
14,448
581
9,049
4,818
1.2
%
Assets supporting experience-rated contractholder liabilities, at fair value
5,405
—
—
5,405
1.3
%
4,842
—
—
4,842
1.2
%
Equity securities, at fair value
13,900
1,631
58
12,211
3.0
%
10,515
1,593
—
8,922
2.2
%
Commercial mortgage and other loans, at book value, net of allowance
65,301
7,475
368
57,458
14.0
%
63,921
7,463
263
56,195
14.0
%
Policy loans, at outstanding balance
9,984
3,157
—
6,827
1.7
%
9,958
3,217
—
6,741
1.7
%
Other invested assets, net of allowance (2)
25,220
4,621
2,049
18,550
4.5
%
24,066
4,532
1,850
17,684
4.4
%
Short-term investments, net of allowance
7,214
282
115
6,817
1.6
%
6,404
255
71
6,078
1.5
%
Subtotal (3)
475,817
45,668
19,336
410,813
100.0
%
465,259
46,523
18,026
400,710
100.0
%
Invested assets of other entities and operations (4)
6,020
—
—
6,020
5,260
—
—
5,260
Total investments
481,837
45,668
19,336
416,833
470,519
46,523
18,026
405,970
Fixed Maturities by Credit Quality (3)(5):
June 30, 2026
December 31, 2025
PFI Excluding Closed Block Division and Funds Withheld
PFI Excluding Closed Block Division and Funds Withheld
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Allowance for Credit Losses
Fair Value
% of Total
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Allowance for Credit Losses
Fair Value
% of Total
Public Fixed Maturities:
NAIC Rating (6)
1
186,020
1,728
25,045
—
162,703
75.1
%
184,052
2,585
23,277
—
163,360
76.1
%
2
49,396
621
3,161
2
46,854
21.6
%
46,660
907
2,952
—
44,615
20.8
%
Subtotal - High or Highest Quality Securities
235,416
2,349
28,206
2
209,557
96.7
%
230,712
3,492
26,229
—
207,975
96.9
%
3
6,333
67
741
—
5,659
2.6
%
5,605
86
540
—
5,151
2.4
%
4
1,116
32
15
—
1,133
0.5
%
1,105
44
9
—
1,140
0.5
%
5
436
12
13
22
413
0.2
%
480
16
25
7
464
0.2
%
6
59
6
1
23
41
0.0
%
87
6
5
22
66
0.0
%
Subtotal - Other Securities
7,944
117
770
45
7,246
3.3
%
7,277
152
579
29
6,821
3.1
%
Total
243,360
2,466
28,976
47
216,803
100.0
%
237,989
3,644
26,808
29
214,796
100.0
%
Private Fixed Maturities:
NAIC Rating (6)
1
22,032
241
1,599
—
20,674
25.3
%
21,362
336
1,431
—
20,267
25.1
%
2
49,648
1,257
2,295
—
48,610
59.4
%
47,978
1,777
1,961
—
47,794
59.3
%
Subtotal - High or Highest Quality Securities
71,680
1,498
3,894
—
69,284
84.7
%
69,340
2,113
3,392
—
68,061
84.4
%
3
7,644
285
148
45
7,736
9.5
%
7,581
390
116
19
7,836
9.7
%
4
3,992
34
91
—
3,935
4.8
%
3,343
54
52
22
3,323
4.1
%
5
696
15
21
34
656
0.8
%
1,228
22
20
44
1,186
1.5
%
6
197
33
4
29
197
0.2
%
244
29
6
39
228
0.3
%
Subtotal - Other Securities
12,529
367
264
108
12,524
15.3
%
12,396
495
194
124
12,573
15.6
%
Total
84,209
1,865
4,158
108
81,808
100.0
%
81,736
2,608
3,586
124
80,634
100.0
%
_____________
(1) Includes investments that support customer liabilities reinsured under coinsurance with funds withheld and modified coinsurance arrangements.
(2) Other invested assets consist of investments in limited partnerships and limited liability companies (“LPs/LLCs”), investment real estate held through direct ownership, derivative instruments and other miscellaneous investments.
(3) Excludes (i) assets of our investment management operations, including assets managed for third parties, (ii) derivative operations and (iii) those assets classified as "Separate account assets" on our balance sheet.
(4) Includes invested assets of our investment management and derivative operations. Excludes assets of our investment management operations that are managed for third parties and those assets classified as “Separate account assets” on our balance sheet.
(5) Excludes fixed maturity securities classified as trading.
(6) Reflects equivalent ratings for investments of the international operations. Includes, as of June 30, 2026 and December 31, 2025, 2,018 securities with amortized cost of $10,759 million (fair value $10,766 million) and 1,482 securities with amortized cost of $9,683 million (fair value $9,598 million), respectively, that have been categorized based on expected NAIC designations pending receipt of SVO ratings.
Page 26
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
INVESTMENT PORTFOLIO COMPOSITION - JAPANESE INSURANCE OPERATIONS AND EXCLUDING JAPANESE INSURANCE OPERATIONS AND FUNDS WITHHELD (1)
(in millions)
June 30, 2026
December 31, 2025
Amount
% of Total
Amount
% of Total
Investment Portfolio Composition - Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value
100,483
65.1
%
102,061
65.4
%
Private, available-for-sale, at fair value
20,540
13.3
%
21,284
13.6
%
Fixed maturities, trading, at fair value
718
0.5
%
551
0.3
%
Assets supporting experience-rated contractholder liabilities, at fair value
5,405
3.5
%
4,842
3.1
%
Equity securities, at fair value
1,610
1.0
%
1,652
1.1
%
Commercial mortgage and other loans, at book value, net of allowance
14,139
9.1
%
14,487
9.3
%
Policy loans, at outstanding balance
2,667
1.7
%
2,708
1.7
%
Other invested assets, net of allowance (3)
6,862
4.4
%
6,357
4.1
%
Short-term investments, net of allowance
2,230
1.4
%
2,166
1.4
%
Total
154,654
100.0
%
156,108
100.0
%
June 30, 2026
December 31, 2025
Amount
% of Total
Amount
% of Total
Investment Portfolio Composition - Excluding Japanese Insurance Operations and Funds Withheld (2):
Fixed maturities:
Public, available-for-sale, at fair value
116,320
45.5
%
112,735
46.1
%
Private, available-for-sale, at fair value
61,268
23.9
%
59,350
24.3
%
Fixed maturities, trading, at fair value
4,216
1.6
%
4,267
1.7
%
Assets supporting experience-rated contractholder liabilities, at fair value
—
0.0
%
—
0.0
%
Equity securities, at fair value
10,601
4.1
%
7,270
3.0
%
Commercial mortgage and other loans, at book value, net of allowance
43,319
16.9
%
41,708
17.1
%
Policy loans, at outstanding balance
4,160
1.6
%
4,033
1.6
%
Other invested assets, net of allowance (3)
11,688
4.6
%
11,327
4.6
%
Short-term investments, net of allowance
4,587
1.8
%
3,912
1.6
%
Total
256,159
100.0
%
244,602
100.0
%
__________
(1) Excludes Closed Block division.
(2) Excludes assets classified as "Separate account assets" on our balance sheet.
(3) Other invested assets consist of investments in LPs/LLCs, investment real estate held through direct ownership, derivative instruments and other miscellaneous investments.
Page 27
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
INVESTMENT RESULTS (1)
(in millions)
Three Months Ended June 30,
2026
2025
Investment Income
Realized Gains (Losses)
Investment Income
Realized Gains (Losses)
Yield (2)
Amount
Yield (2)
Amount
General Account (3)
Fixed maturities (4)
4.67
%
3,791
(314)
4.39
%
3,406
(78)
Equity securities
2.99
%
85
—
2.63
%
41
—
Commercial mortgage and other loans
4.77
%
674
(25)
4.42
%
597
(64)
Policy loans
4.40
%
75
—
4.52
%
74
—
Short-term investments and cash equivalents
4.97
%
185
2
4.82
%
202
—
Gross investment income before investment expenses
4.64
%
4,810
(337)
4.39
%
4,320
(142)
Investment expenses
-0.17
%
(320)
—
-0.16
%
(293)
—
Subtotal
4.47
%
4,490
(337)
4.23
%
4,027
(142)
Other investments (4)
304
(674)
261
(1,133)
Investment results of other entities and operations (5)
88
(10)
72
(25)
Investment results of Funds Withheld (6)
388
(508)
355
(201)
Less: investment income related to adjusted operating income reconciling items
(286)
—
(212)
—
Total
4,984
(1,529)
4,503
(1,501)
Six Months Ended June 30,
2026
2025
Investment Income
Realized Gains (Losses)
Investment Income
Realized Gains (Losses)
Yield (2)
Amount
Yield (2)
Amount
General Account (3)
Fixed maturities (4)
4.68
%
7,493
(930)
4.40
%
6,719
(38)
Equity securities
2.70
%
142
—
2.38
%
78
—
Commercial mortgage and other loans
4.73
%
1,324
(50)
4.46
%
1,197
(114)
Policy loans
4.46
%
150
—
4.54
%
147
—
Short-term investments and cash equivalents
4.86
%
385
(5)
4.45
%
432
—
Gross investment income before investment expenses
4.64
%
9,494
(985)
4.40
%
8,573
(152)
Investment expenses
-0.17
%
(622)
—
-0.16
%
(576)
—
Subtotal
4.47
%
8,872
(985)
4.24
%
7,997
(152)
Other investments (4)
627
(402)
546
(1,429)
Investment results of other entities and operations (5)
137
30
104
(2)
Investment results of Funds Withheld (6)
769
(508)
705
(591)
Less: investment income related to adjusted operating income reconciling items
(557)
—
(453)
—
Total
9,848
(1,865)
8,899
(2,174)
________
(1) Excludes Closed Block division.
(2) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.
(3) Excludes commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders, assets of our investment management operations, including assets that are managed for third parties, assets classified as "Separate account assets" on our balance sheet and investments that support customer liabilities reinsured under coinsurance with funds withheld and modified coinsurance arrangements.
(4) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading, which are included in "Other investments." Also included in "Other investments" are LP/LLCs, investment real estate held through direct ownership, derivative instruments and other miscellaneous investments. Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.
(5) Includes invested income of assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment management operations.
(6) Includes investments that support customer liabilities reinsured under coinsurance with funds withheld and modified coinsurance arrangements.
Page 28
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS
(in millions)
Three Months Ended June 30,
2026
2025
Investment Income
Realized Gains (Losses)
Investment Income
Realized Gains (Losses)
Yield (1)
Amount
Yield (1)
Amount
Japanese Insurance Operations:
Fixed maturities (2)
3.45
%
1,219
(238)
3.16
%
1,108
(27)
Equity securities
5.10
%
20
—
4.78
%
21
—
Commercial mortgage and other loans
3.93
%
139
(15)
3.72
%
145
(8)
Policy loans
3.63
%
25
—
3.70
%
26
—
Short-term investments and cash equivalents
4.14
%
40
1
4.31
%
44
—
Gross investment income before investment expenses
3.53
%
1,443
(252)
3.26
%
1,344
(35)
Investment expenses
-0.12
%
(87)
—
-0.13
%
(89)
—
Subtotal
3.41
%
1,356
(252)
3.13
%
1,255
(35)
Other investments (2)
174
(15)
119
(194)
Total
1,530
(267)
1,374
(229)
Six Months Ended June 30,
2026
2025
Investment Income
Realized Gains (Losses)
Investment Income
Realized Gains (Losses)
Yield (1)
Amount
Yield (1)
Amount
Japanese Insurance Operations:
Fixed maturities (2)
3.45
%
2,420
(787)
3.17
%
2,202
84
Equity securities
3.78
%
30
—
3.42
%
30
—
Commercial mortgage and other loans
3.88
%
275
(15)
3.78
%
296
(14)
Policy loans
3.73
%
50
—
3.79
%
51
—
Short-term investments and cash equivalents
4.11
%
86
(1)
4.14
%
81
—
Gross investment income before investment expenses
3.51
%
2,861
(803)
3.26
%
2,660
70
Investment expenses
-0.12
%
(171)
—
-0.13
%
(171)
—
Subtotal
3.39
%
2,690
(803)
3.13
%
2,489
70
Other investments (2)
320
5
261
(138)
Total
3,010
(798)
2,750
(68)
__________
(1) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.
(2) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading, which are included in "Other investments". Also included in "Other investments" are LP/LLCs, investment real estate held through direct ownership, derivative instruments and other miscellaneous investments. Realized gains / (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.
Page 29
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
INVESTMENT RESULTS - EXCLUDING FUNDS WITHHELD AND JAPANESE INSURANCE OPERATIONS (1)
(in millions)
Three Months Ended June 30,
2026
2025
Investment Income
Realized Gains (Losses)
Investment Income
Realized Gains (Losses)
Yield (2)
Amount
Yield (2)
Amount
Excluding Funds Withheld and Japanese Insurance Operations (3):
Fixed maturities (4)
5.63
%
2,572
(76)
5.43
%
2,298
(51)
Equity securities
2.64
%
65
—
1.78
%
20
—
Commercial mortgage and other loans
5.04
%
535
(10)
4.70
%
452
(56)
Policy loans
4.89
%
50
—
5.09
%
48
—
Short-term investments and cash equivalents
5.26
%
145
1
4.99
%
158
—
Gross investment income before investment expenses
5.37
%
3,367
(85)
5.20
%
2,976
(107)
Investment expenses
-0.20
%
(233)
—
-0.18
%
(204)
—
Subtotal
5.17
%
3,134
(85)
5.02
%
2,772
(107)
Other investments (4)
130
(659)
142
(939)
Total
3,264
(744)
2,914
(1,046)
Six Months Ended June 30,
2026
2025
Investment Income
Realized Gains (Losses)
Investment Income
Realized Gains (Losses)
Yield (2)
Amount
Yield (2)
Amount
Excluding Funds Withheld and Japanese Insurance Operations (3):
Fixed maturities (4)
5.65
%
5,073
(143)
5.46
%
4,517
(122)
Equity securities
2.50
%
112
—
2.00
%
48
—
Commercial mortgage and other loans
5.01
%
1,049
(35)
4.74
%
901
(100)
Policy loans
4.94
%
100
—
5.06
%
96
—
Short-term investments and cash equivalents
5.13
%
299
(4)
4.54
%
351
—
Gross investment income before investment expenses
5.39
%
6,633
(182)
5.23
%
5,913
(222)
Investment expenses
-0.20
%
(451)
—
-0.18
%
(405)
—
Subtotal
5.19
%
6,182
(182)
5.05
%
5,508
(222)
Other investments (4)
307
(407)
285
(1,291)
Total
6,489
(589)
5,793
(1,513)
__________
(1) Excludes Closed Block division.
(2) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.
(3) Excludes assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders, assets of our investment management operations, including assets that are managed for third parties and assets classified as "Separate account assets" on our balance sheet and investments that support customer liabilities reinsured under coinsurance with funds withheld and modified coinsurance arrangements.
(4) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading, which are included in "Other investments." Also included in "Other investments" are LP/LLCs, investment real estate held through direct ownership, derivative instruments, and other miscellaneous investments. Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.
Page 30
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
ADJUSTED OPERATING INCOME IMPACT FROM ANNUAL ASSUMPTION UPDATES AND OTHER REFINEMENTS
(in millions)
Three Months Ended June 30, 2026
Premiums
Policy Charges and Fee Income
Net investment income
Asset Management Fees, Commissions and Other Income
Insurance and Annuity Benefits
Change in Estimates of Liability for Future Policy Benefits
Deferral of Acquisition Costs
Amortization of Acquisition Costs
Operating Expenses
Adjusted Operating Income (Loss) Before Income Taxes
Retirement
21
—
(9)
—
(14)
117
—
—
—
(91)
Group Insurance
(22)
—
—
—
(50)
—
—
—
—
28
Individual Life
—
24
—
—
2
(8)
—
—
—
30
U.S. Legacy Products
—
36
—
—
—
21
—
—
—
15
Japan Businesses
241
—
—
—
—
201
—
—
—
40
Corporate and Other
—
—
—
—
—
(4)
—
—
—
4
Total
240
60
(9)
—
(62)
327
—
—
—
26
Three Months Ended June 30, 2025
Premiums
Policy Charges and Fee Income
Net investment income
Asset Management Fees, Commissions and Other Income
Insurance and Annuity Benefits
Change in Estimates of Liability for Future Policy Benefits
Deferral of Acquisition Costs
Amortization of Acquisition Costs
Operating Expenses
Adjusted Operating Income (Loss) Before Income Taxes
Retirement
54
—
—
—
24
140
—
(17)
—
(93)
Group Insurance
—
—
—
—
(11)
—
—
—
—
11
Individual Life
—
(51)
—
—
(33)
(38)
(2)
—
48
(26)
U.S. Legacy Products
—
60
—
—
5
(29)
—
—
20
64
Japan Businesses
35
—
—
—
(1)
44
—
—
—
(8)
Corporate and Other
—
—
—
—
—
—
—
—
—
—
Total
89
9
—
—
(16)
117
(2)
(17)
68
(52)
Page 31
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Six Months Ended June 30, 2026
Six Months Ended June 30, 2025
Reconciling Items
Reconciling Items
Adjusted Operating Income (Loss) basis (1)
Total realized investment gains (losses), net, and related charges and adjustments
Change in value of market risk benefits, net of related hedging gains (losses)
Market experience updates
Closed Block Division
Other Divested and Run-off Businesses
Equity in earnings of joint ventures and other operating entities, and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
Other adjustments (2)
U.S. GAAP
Adjusted Operating Income (Loss) basis (1)
Total realized investment gains (losses), net, and related charges and adjustments
Change in value of market risk benefits, net of related hedging gains (losses)
Market experience updates
Closed Block Division
Other Divested and Run-off Businesses
Equity in earnings of joint ventures and other operating entities, and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
Other adjustments (2)
U.S. GAAP
Revenues:
Premiums
13,377
—
—
—
829
1,036
—
—
15,242
12,261
—
—
(1)
862
860
—
—
13,982
Policy charges and fee income
2,247
133
—
—
—
(1)
—
—
2,379
2,178
220
—
8
—
—
—
—
2,406
Net investment income
9,848
(4)
—
—
1,043
561
—
—
11,448
8,899
(6)
—
—
1,004
459
—
—
10,356
Realized investment gains (losses), net (3)
(293)
(1,496)
—
—
(65)
(76)
—
—
(1,930)
(300)
(1,667)
—
—
(255)
(207)
—
—
(2,429)
Asset management fees, commissions and other income
3,061
855
—
—
203
386
(91)
—
4,414
3,008
391
—
—
156
168
(65)
—
3,658
Change in value of market risk benefits, net of related hedging gains (losses)
—
—
(366)
—
—
—
—
—
(366)
—
—
(777)
—
—
—
—
—
(777)
Total revenues
28,240
(512)
(366)
—
2,010
1,906
(91)
—
31,187
26,046
(1,062)
(777)
7
1,767
1,280
(65)
—
27,196
Benefits and expenses:
Insurance and annuity benefits
15,115
55
—
(2)
1,838
988
—
—
17,994
14,083
202
—
(3)
1,593
850
—
—
16,725
Change in estimates of liability for future policy benefits
403
1
—
7
—
141
—
—
552
76
(251)
—
(71)
—
21
—
—
(225)
Interest credited to policyholders' account balances
2,684
319
—
—
55
25
—
—
3,083
2,218
(389)
—
—
57
77
—
—
1,963
Interest expense
1,071
—
—
—
(3)
9
—
—
1,077
1,044
—
—
—
(3)
7
—
—
1,048
Deferral of acquisition costs
(1,158)
—
—
—
—
(100)
—
—
(1,258)
(1,295)
(98)
—
—
—
(79)
—
—
(1,472)
Amortization of acquisition costs
773
20
—
—
6
42
—
—
841
739
40
—
—
6
29
—
—
814
Operating expenses
3,372
—
—
—
134
138
—
3
3,647
3,213
—
—
—
134
103
—
(28)
3,422
Variable expenses
2,819
326
—
—
3
250
(59)
1
3,340
3,014
99
—
—
20
195
(68)
1
3,261
Total benefits and expenses
25,079
721
—
5
2,033
1,493
(59)
4
29,276
23,092
(397)
—
(74)
1,807
1,203
(68)
(27)
25,536
__________
(1) See page 36 for a definition of adjusted operating income.
(2) Represents adjustments not included in the above reconciling items, including certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.
(3) Includes realized gains and losses from sales of funds withheld and modified coinsurance assets not passed back to reinsurers of $(150) million and $(82) million for six months ended June 30, 2026 and June 30, 2025, respectively. Also includes changes in the value of the funds withheld and modified coinsurance embedded derivatives associated with available-for-sale securities of $64 million and $(151) million and certain derivatives of $(14) million and $60 million for six months ended June 30, 2026 and June 30, 2025, respectively.
Page 32
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended June 30, 2026
Three Months Ended June 30, 2025
Reconciling Items
Reconciling Items
Adjusted Operating Income (Loss) basis (1)
Total realized investment gains (losses), net, and related charges and adjustments
Change in value of market risk benefits, net of related hedging gains (losses)
Market experience updates
Closed Block Division
Other Divested and Run-off Businesses
Equity in earnings of joint ventures and other operating entities, and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
Other adjustments (2)
U.S. GAAP
Adjusted Operating Income (Loss) basis (1)
Total realized investment gains (losses), net, and related charges and adjustments
Change in value of market risk benefits, net of related hedging gains (losses)
Market experience updates
Closed Block Division
Other Divested and Run-off Businesses
Equity in earnings of joint ventures and other operating entities, and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
Other adjustments (2)
U.S. GAAP
Revenues:
Premiums
5,910
—
—
—
426
544
—
—
6,880
6,093
—
—
(1)
445
445
—
—
6,982
Policy charges and fee income
1,139
119
—
(10)
—
(1)
—
—
1,247
1,070
174
—
5
—
—
—
—
1,249
Net investment income
4,984
(5)
—
—
513
291
—
—
5,783
4,503
(3)
—
—
511
215
—
—
5,226
Realized investment gains (losses), net (3)
(114)
(1,381)
—
—
(37)
(34)
—
—
(1,566)
(143)
(1,247)
—
—
(198)
(111)
—
—
(1,699)
Asset management fees, commissions and other income
1,636
1,282
—
—
229
299
(58)
—
3,388
1,534
596
—
—
189
115
(40)
—
2,394
Change in value of market risk benefits, net of related hedging gains (losses)
—
—
(71)
—
—
—
—
—
(71)
—
—
(426)
—
—
—
—
—
(426)
Total revenues
13,555
15
(71)
(10)
1,131
1,099
(58)
—
15,661
13,057
(480)
(426)
4
947
664
(40)
—
13,726
Benefits and expenses:
Insurance and annuity benefits
6,676
(12)
—
(5)
1,050
520
—
—
8,229
6,977
200
—
(5)
864
404
—
—
8,440
Change in estimates of liability for future policy benefits
360
—
—
15
—
138
—
—
513
85
(254)
—
(33)
—
27
—
—
(175)
Interest credited to policyholders' account balances
1,380
558
—
—
27
9
—
—
1,974
1,135
(64)
—
—
29
38
—
—
1,138
Interest expense
535
—
—
—
(1)
5
—
—
539
525
—
—
—
(1)
4
—
—
528
Deferral of acquisition costs
(579)
—
—
—
—
(55)
—
—
(634)
(647)
—
—
—
—
(45)
—
—
(692)
Amortization of acquisition costs
395
9
—
—
3
23
—
—
430
373
12
—
—
3
19
—
—
407
Operating expenses
1,714
—
—
—
64
35
—
—
1,813
1,645
—
—
—
69
4
—
—
1,718
Variable expenses
1,423
114
—
—
—
131
(50)
1
1,619
1,457
99
—
—
1
97
(33)
1
1,622
Total benefits and expenses
11,904
669
—
10
1,143
806
(50)
1
14,483
11,550
(7)
—
(38)
965
548
(33)
1
12,986
__________
(1) See page 36 for a definition of adjusted operating income.
(2) Represents adjustments not included in the above reconciling items, including certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.
(3) Includes realized gains and losses from sales of funds withheld and modified coinsurance assets not passed back to reinsurers of $(104) million and $(27) million for three months ended June 30, 2026 and June 30, 2025, respectively. Also includes changes in the value of the funds withheld and modified coinsurance embedded derivatives associated with available-for-sale securities of $(56) million and $(47) million and certain derivatives of $2 million and $55 million for three months ended June 30, 2026 and June 30, 2025, respectively.
Page 33
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended September 30, 2025
Three Months Ended December 31, 2025
Reconciling Items
Reconciling Items
Adjusted Operating Income (Loss) basis (1)
Total realized investment gains (losses), net, and related charges and adjustments
Change in value of market risk benefits, net of related hedging gains (losses)
Market experience updates
Closed Block Division
Other Divested and Run-off Businesses
Equity in earnings of joint ventures and other operating entities, and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
Other adjustments (2)
U.S. GAAP
Adjusted Operating Income (Loss) basis (1)
Total realized investment gains (losses), net, and related charges and adjustments
Change in value of market risk benefits, net of related hedging gains (losses)
Market experience updates
Closed Block Division
Other Divested and Run-off Businesses
Equity in earnings of joint ventures and other operating entities, and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
Other adjustments (2)
U.S. GAAP
Revenues:
Premiums
8,349
—
—
1
394
469
—
—
9,213
6,668
—
—
(1)
463
472
—
—
7,602
Policy charges and fee income
1,126
26
—
(18)
—
(1)
—
—
1,133
1,107
22
—
(2)
—
—
—
—
1,127
Net investment income
4,769
(3)
—
—
528
234
—
—
5,528
4,843
(3)
—
—
524
225
—
—
5,589
Realized investment gains (losses), net (3)
(112)
(859)
—
—
3
(58)
—
—
(1,026)
(165)
(372)
—
—
(121)
(19)
—
—
(677)
Asset management fees, commissions and other income
1,610
825
—
—
133
198
(50)
—
2,716
1,596
360
—
—
60
82
(27)
—
2,071
Change in value of market risk benefits, net of related hedging gains (losses)
—
—
324
—
—
—
—
—
324
—
—
(22)
—
—
—
—
—
(22)
Total revenues
15,742
(11)
324
(17)
1,058
842
(50)
—
17,888
14,049
7
(22)
(3)
926
760
(27)
—
15,690
Benefits and expenses:
Insurance and annuity benefits
9,251
(84)
—
(1)
949
433
—
—
10,548
7,684
29
—
(1)
864
451
—
—
9,027
Change in estimates of liability for future policy benefits
98
168
—
20
—
10
—
—
296
51
(2)
—
(25)
—
8
—
—
32
Interest credited to policyholders' account balances
1,215
300
—
—
27
40
—
—
1,582
1,271
196
—
—
29
27
—
—
1,523
Interest expense
529
—
—
—
(3)
4
—
—
530
529
—
—
—
(2)
6
—
—
533
Deferral of acquisition costs
(652)
—
—
—
—
(48)
—
—
(700)
(619)
—
—
—
—
(60)
—
—
(679)
Amortization of acquisition costs
374
4
—
—
4
21
—
—
403
386
7
—
—
3
22
—
—
418
Operating expenses
1,566
—
—
—
69
92
—
1
1,728
1,791
—
—
—
67
108
—
—
1,966
Variable expenses
1,532
139
—
—
2
101
(55)
—
1,719
1,506
67
—
—
3
122
(43)
1
1,656
Total benefits and expenses
13,913
527
—
19
1,048
653
(55)
1
16,106
12,599
297
—
(26)
964
684
(43)
1
14,476
__________
(1) See page 36 for a definition of adjusted operating income.
(2) Represents adjustments not included in the above reconciling items, including certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.
(3) Includes realized gains and losses from sales of funds withheld and modified coinsurance assets not passed back to reinsurers of $(91) million and $(49) million for three months ended September 30, 2025 and December 31, 2025, respectively. Also includes changes in the value of the funds withheld and modified coinsurance embedded derivatives associated with available-for-sale securities of $(129) million and $27 million and certain derivatives of $(15) million and $3 million for three months ended September 30, 2025 and December 31, 2025, respectively.
Page 34
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended March 31, 2026
Reconciling Items
Adjusted Operating Income (Loss) basis (1)
Total realized investment gains (losses), net, and related charges and adjustments
Change in value of market risk benefits, net of related hedging gains (losses)
Market experience updates
Closed Block Division
Other Divested and Run-off Businesses
Equity in earnings of joint ventures and other operating entities, and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
Other adjustments (2)
U.S. GAAP
Revenues:
Premiums
7,467
—
—
—
403
492
—
—
8,362
Policy charges and fee income
1,108
14
—
10
—
—
—
—
1,132
Net investment income
4,864
1
—
—
530
270
—
—
5,665
Realized investment gains (losses), net (3)
(179)
(115)
—
—
(28)
(42)
—
—
(364)
Asset management fees, commissions and other income
1,425
(427)
—
—
(26)
87
(33)
—
1,026
Change in value of market risk benefits, net of related hedging gains (losses)
—
—
(295)
—
—
—
—
—
(295)
Total revenues
14,685
(527)
(295)
10
879
807
(33)
—
15,526
Benefits and expenses:
Insurance and annuity benefits
8,439
67
—
3
788
468
—
—
9,765
Change in estimates of liability for future policy benefits
43
1
—
(8)
—
3
—
—
39
Interest credited to policyholders' account balances
1,304
(239)
—
—
28
16
—
—
1,109
Interest expense
536
—
—
—
(2)
4
—
—
538
Deferral of acquisition costs
(579)
—
—
—
—
(45)
—
—
(624)
Amortization of acquisition costs
378
11
—
—
3
19
—
—
411
Operating expenses
1,658
—
—
—
70
103
—
3
1,834
Variable expenses
1,396
212
—
—
3
119
(9)
—
1,721
Total benefits and expenses
13,175
52
—
(5)
890
687
(9)
3
14,793
__________
(1) See page 36 for a definition of adjusted operating income.
(2) Represents adjustments not included in the above reconciling items, including certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.
(3) Includes realized gains and losses from sales of funds withheld and modified coinsurance assets not passed back to reinsurers of $(46) million for three months ended March 31, 2026. Also includes changes in the value of the funds withheld and modified coinsurance embedded derivatives associated with available-for-sale securities of $120 million and certain derivatives of $(16) million for three months ended March 31, 2026.
Page 35
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
KEY DEFINITIONS AND FORMULAS
1. Adjusted operating income before income taxes:
Adjusted operating income is a non-GAAP measure used by the Company to evaluate segment performance and to allocate resources. Adjusted operating income excludes “Realized investment gains (losses), net, and related charges and adjustments." A significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as capital and other factors.
Realized investment gains (losses) within certain businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset-liability management program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are designated as trading. Adjusted operating income also excludes investment gains and losses on assets supporting experience-rated contractholder liabilities and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to ultimately accrue to contractholders. Adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income. Additionally, adjusted operating income excludes the impact of annual assumption updates and other refinements included in the above items.
Adjusted operating income excludes “Change in value of market risk benefits, net of related hedging gains (losses),” which reflects the impact from changes in current market conditions, and market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which we believe enhances the understanding of underlying performance trends. Adjusted operating income also excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations and discontinued operations and earnings attributable to noncontrolling interests and redeemable noncontrolling interests, each of which is presented as a separate component of net income under GAAP. Additionally, adjusted operating income excludes other items, such as certain components of the consideration for acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments. Earnings attributable to noncontrolling interests and redeemable noncontrolling interests is presented as a separate component of net income under GAAP and excluded from adjusted operating income.
Adjusted operating income does not equate to "Net income" as determined in accordance with U.S. GAAP. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described above.
2. After-tax adjusted operating income:
Adjusted operating income before taxes, as defined above, less the income tax effect applicable to adjusted operating income before taxes. The tax effect associated with pre-tax adjusted operating income is based on applicable domestic and foreign tax regulations inclusive of pertinent adjustments.
3. Annualized New Business Premiums:
Premiums from new sales that are expected to be collected over a one year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers' Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Excess (unscheduled) and single premium business for the company's domestic individual life and Japan operations are included in annualized new business premiums based on a 10% credit. Amounts ascribed to Life Consultants include production by captive agents associated with the Japan operation.
4. Assets Under Administration:
Fair market value of assets in client accounts and mortgage servicing assets, which are reported on an unpaid principal balance basis, that are not included in Assets Under Management. Prudential does not receive a management fee on these assets, but may receive a fee for executing trades, custody or record keeping services, or servicing the mortgage loans. In addition, fair market value of assets for which Prudential provides non-discretionary investment advice and receives a fee.
5. Assets Under Management:
Fair market value of assets directly managed by Prudential or joint ventures of which Prudential has at least 50% ownership, and assets invested in investment options included in the Company’s products that are managed by third party sub-advised managers at the discretion of Prudential. This includes externally managed modified coinsurance for both Hartford and Allstate. It also includes the fair value of derivatives used in various portfolio management strategies related to the portfolio’s invested assets, regardless of the hedge accounting designation, but excludes direct hedges of product liabilities and expenses.
6. Book value per share of Common Stock:
GAAP equity attributed to Prudential Financial, Inc. divided by the number of common shares outstanding at end of period, on a diluted basis. Adjusted book value per common share is a non-GAAP measure. This non-GAAP measure augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations, separate from the portion that is affected by capital and currency market conditions including the removal of the associated accounting impacts of the remeasurement of certain insurance liabilities and investments that are marked to market through AOCI under GAAP, and the cumulative change in fair value of funds withheld embedded derivatives related to unrealized gains and losses on available-for-sale securities and certain derivatives associated with customer liabilities reinsured under coinsurance with funds withheld and modified coinsurance arrangements. However, adjusted book value per common share is not a substitute for book value per share including AOCI determined in accordance with GAAP, and the adjustments made to derive the measure are important to an understanding of our overall financial position.
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
KEY DEFINITIONS AND FORMULAS
7. Borrowings - Capital Debt:
Debt utilized to meet the capital requirements of our business.
8. Borrowings - Operating Debt:
Debt utilized for business funding to meet specific purposes, which may include activities associated with our PGIM business. Operating debt also consists of debt issued to finance specific portfolios of investment assets, the proceeds from which will service the debt. Specifically, this includes assets supporting reserve requirements under Regulation XXX and Guideline AXXX, as well as funding for institutional and insurance company portfolio cash flow timing differences.
9. Divested and Run-off Businesses:
Businesses that have been or will be sold or exited, including businesses that have been placed in wind down status that do not qualify for “discontinued operations” accounting treatment under U.S. GAAP.
10. Earned Premiums:
The portion of premium, net of returns to participating policyholders and amounts ceded, that represents coverage already provided or that belongs to the insurer based on the part of the policy period that has passed.
11. General Account:
Includes assets of the insurance companies for which the Company bears the investment risk. These generally include assets supporting "Future Policy Benefits" and "Policyholders' Account Balances". General account assets also include assets of the parent company, Prudential Financial, Inc. and excludes assets recognized for statutory purposes that are specifically allocated to a separate account.
12. Group Insurance Benefits Ratios:
Ratio of policyholder benefits to earned premiums, policy charges and fee income.
13. Group Life Insurance and Group Disability Insurance Administrative Expense Ratios:
Ratio of operating and variable expenses (excluding commissions) to net premiums plus policy charges and fee income, excluding third party administrators passthrough fees and expenses.
14. Insurance and Annuity Benefits:
Total death benefits, annuity benefits, disability benefits, other policy benefits, and losses paid or incurred, under insurance and annuity contracts, plus the change in reserves for future policy benefits, losses and loss adjustment expenses.
15. Life Planners:
Captive insurance Advisors from Prudential of Japan.
16. Life Consultants:
Captive insurance agents for Gibraltar Life.
17. Non-recourse and Limited-recourse Debt:
Limited and non-recourse borrowing is where the debt holder is only entitled to collect against the assets pledged to the debt as collateral or has very limited rights to collect against other assets.
18. Other Related Revenues:
Other related revenues include incentive fees, transaction fees, seed and co-investment results, and commercial mortgage revenues.
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
KEY DEFINITIONS AND FORMULAS
19. PGIM Asset Under Management:
Institutional Customers - Third Party - Consists of third-party institutional assets.
Retail Customers - Third Party - Consists of individual mutual funds and third-party sub-advisory relationships.
Affiliated - Includes the Company's general account assets, as well as certain separate account assets of the Company's insurance and retirement businesses managed by PGIM.
Public Equity - Represents stock ownership interest in a corporation or partnership (excluding hedge funds) or real estate investment trust.
Public Credit - Represents debt instruments that pay fixed interest and usually have a maturity (excluding mortgages).
Private Credit - Represents debt financing issued by entities directly to investors outside of public capital markets.
Real Estate - Includes direct real estate equity and real estate mortgages
Multi-Asset - Represents funds or products that invest in more than one asset class, balancing equity, public credit, and target date funds.
Other Alternatives - Represents private equity, hedge funds, and other alternative strategies.
20. Policy Persistency - Group Insurance:
Percentage of the premiums in force at the end of the prior year that are still in force at the end of the period (excluding Servicemembers' Group Life Insurance and Prudential Employee Benefit Plan).
21. Policy Persistency - Japan Businesses:
13 month persistency represents the average percentage of face amount of policies that are still in force at their 13th policy month. 25 month persistency represents the average percentage of face amount of policies that are still in force at their 25th policy month.
22. Prudential Advisors:
Captive financial professionals selling across all products in the United States.
23. Prudential Financial, Inc. Equity:
Amount of capital assigned to each of the Company's segments for purposes of measuring segment adjusted operating income before income taxes, established at a level which management considers necessary to support the segment's risks. Represents all of Prudential Financial, Inc. equity that is not attributable to noncontrolling interests and redeemable noncontrolling interests.
24. Separate Accounts:
Assets of our insurance companies allocated under certain policies and contracts that are segregated from the general account and other separate accounts. The policyholder or contractholder predominantly bears the risk of investments held in a separate account.
25. U.S. Legacy Products - Net Amounts at Risk:
Living Benefit Features - For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance.
Death Benefit Features - Net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2026
RATINGS AND INVESTOR INFORMATION
FINANCIAL STRENGTH RATINGS
as of October 15, 2026
Standard &
Fitch
A.M. Best*
Poor's
Moody's*
Ratings*
The Prudential Insurance Company of America
A+
AA-
Aa3
AA-
PRUCO Life Insurance Company
A+
AA-
Aa3
AA-
PRUCO Life Insurance Company of New Jersey
A+
AA-
NR
AA-
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)
NR
A+
NR
NR
Gibraltar Life Insurance Company, Ltd.
NR
A+
NR
NR
The Prudential Gibraltar Financial Life Insurance Co. Ltd.
NR
A+
NR
NR
CREDIT RATINGS:
as of October 15, 2026
Prudential Financial, Inc.:
Short-Term Borrowings
AMB-1
A-1
P-2
F1
Long-Term Senior Debt
a-
A
A3
A-
Junior Subordinated Long-Term Debt
bbb
BBB+
Baa1
BBB
The Prudential Insurance Company of America:
Capital and surplus notes
a
A
A2
A
Prudential Funding, LLC:
Short-Term Debt
AMB-1
A-1+
P-1
F1+
Long-Term Senior Debt
a+
AA-
(P)A1
NR
PRICOA Global Funding I:
Long-Term Senior Debt
aa-
AA-
Aa3
AA-
* NR indicates not rated.
INVESTOR INFORMATION:
Corporate Office:
Prudential Financial, Inc.
751 Broad Street
Newark, New Jersey 07102
Common Stock:
Common Stock of Prudential Financial, Inc. is traded on the New York Stock Exchange under the symbol PRU.
For more information, please visit our website at investor.prudential.com.
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