EX-99.23exhibit992-1q26qfs.htmEX-99.2 Document
Table of Contents
Exhibit 99.2
Prudential Financial, Inc. (PRU)
Quarterly Financial Supplement
First 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.
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First 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
INTERNATIONAL BUSINESSES
Statements of Operations - International 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
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
31
KEY DEFINITIONS AND FORMULAS
34
RATINGS AND INVESTOR INFORMATION
37
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
FINANCIAL METRICS SUMMARY
(in millions, except per share and return on equity data)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
% change
Earnings
Adjusted operating income (loss) before income taxes:
PGIM
156
229
244
249
190
156
190
22%
U.S. Businesses
931
955
1,149
1,051
956
931
956
3%
International Businesses
848
761
881
757
810
848
810
-4%
Corporate and Other
(415)
(280)
(327)
(552)
(330)
(415)
(330)
20%
Total adjusted operating income (loss) before income taxes
1,520
1,665
1,947
1,505
1,626
1,520
1,626
7%
Income taxes, applicable to adjusted operating income
332
381
426
337
348
332
348
5%
After-tax adjusted operating income (loss)
1,188
1,284
1,521
1,168
1,278
1,188
1,278
8%
Income (loss) attributable to Prudential Financial, Inc.
707
533
1,431
905
597
707
597
-16%
Return on Equity
Operating Return on Average Equity (based on adjusted operating income) (1)
13.8
%
14.9
%
17.5
%
13.3
%
14.6
%
13.8
%
14.6
%
Return on Average Equity (based on net income (loss))
9.8
%
7.1
%
18.3
%
11.2
%
7.4
%
9.8
%
7.4
%
Distributions to Shareholders
Dividends paid
486
485
481
480
496
486
496
2%
Share repurchases
250
250
250
250
250
250
250
—%
Total capital returned
736
735
731
730
746
736
746
1%
Per Share Data
Net income (loss) - diluted
1.96
1.48
4.01
2.55
1.68
1.96
1.68
-14%
Adjusted Operating Income - diluted
3.29
3.58
4.26
3.30
3.61
3.29
3.61
10%
Shareholder dividends
1.35
1.35
1.35
1.35
1.40
1.35
1.40
4%
GAAP book value - diluted
83.59
85.98
90.69
92.05
91.28
Adjusted book value - diluted (2)
96.37
96.41
99.25
100.17
99.79
Shares Outstanding
Weighted average number of common shares - basic
354.3
353.1
351.1
349.0
347.7
354.3
347.7
-2%
Weighted average number of common shares - diluted
356.1
354.9
353.0
350.9
349.4
356.1
349.4
-2%
End of period common shares - basic
354.0
351.9
349.9
347.9
347.3
End of period common shares - diluted
357.5
355.7
353.9
352.4
350.3
__________
(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.
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
Earnings per share of Common Stock (diluted):
After-tax adjusted operating income (loss)
3.29
3.58
4.26
3.30
3.61
3.29
3.61
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments
(0.69)
(1.45)
(1.63)
(0.80)
(1.78)
(0.69)
(1.78)
Change in value of market risk benefits, net of related hedging gains (losses)
(0.99)
(1.20)
0.92
(0.06)
(0.84)
(0.99)
(0.84)
Market experience updates
0.11
0.12
(0.10)
0.07
0.04
0.11
0.04
Divested and Run-off Businesses:
Closed Block division
(0.06)
(0.05)
0.03
(0.11)
(0.03)
(0.06)
(0.03)
Other Divested and Run-off Businesses
(0.14)
0.03
0.35
0.07
0.18
(0.14)
0.18
Difference in earnings allocated to participating unvested share-based payment awards
0.02
0.02
0.01
—
0.02
0.02
0.02
Other adjustments (1)
0.08
—
—
—
(0.01)
0.08
(0.01)
Total reconciling items, before income taxes
(1.67)
(2.53)
(0.42)
(0.83)
(2.42)
(1.67)
(2.42)
Income taxes, not applicable to adjusted operating income
(0.34)
(0.43)
(0.17)
(0.08)
(0.49)
(0.34)
(0.49)
Total reconciling items, after income taxes
(1.33)
(2.10)
(0.25)
(0.75)
(1.93)
(1.33)
(1.93)
Net income (loss) attributable to Prudential Financial, Inc.
1.96
1.48
4.01
2.55
1.68
1.96
1.68
Weighted average number of outstanding common shares - basic
354.3
353.1
351.1
349.0
347.7
354.3
347.7
Weighted average number of outstanding common shares - diluted
356.1
354.9
353.0
350.9
349.4
356.1
349.4
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc.
707
533
1,431
905
597
707
597
Less: Earnings allocated to participating unvested share-based payment awards
10
6
15
10
9
10
9
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation
697
527
1,416
895
588
697
588
After-tax adjusted operating income (loss)
1,188
1,284
1,521
1,168
1,278
1,188
1,278
Less: Earnings allocated to participating unvested share-based payment awards
16
13
17
11
17
16
17
After-tax adjusted operating income for earnings per share of Common Stock calculation
1,172
1,271
1,504
1,157
1,261
1,172
1,261
___________
(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.
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
OTHER FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2025
2026
1Q
2Q
3Q
4Q
1Q
Capitalization Data (1):
Senior debt:
Short-term debt
1,406
1,373
1,386
1,443
946
Long-term debt
10,949
11,056
11,202
11,261
11,286
Junior subordinated long-term debt
8,591
7,595
7,595
7,595
7,596
Prudential Financial, Inc. Equity:
GAAP book value (total PFI equity) at end of period
29,883
30,582
32,094
32,438
31,975
Less: Accumulated other comprehensive income (AOCI)
(4,741)
(3,921)
(3,175)
(3,077)
(3,450)
GAAP book value excluding AOCI (2)
34,624
34,503
35,269
35,515
35,425
Less: Cumulative change in fair value of funds withheld embedded derivatives (3)
62
67
(47)
(24)
60
Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses) (4)
108
144
192
238
409
Adjusted book value
34,454
34,292
35,124
35,301
34,956
Book Value per Share of Common Stock:
GAAP book value per common share - diluted
83.59
85.98
90.69
92.05
91.28
GAAP book value excluding AOCI per share - diluted (2)
96.85
97.00
99.66
100.78
101.13
Adjusted book value per common share - diluted
96.37
96.41
99.25
100.17
99.79
End of period number of common shares - diluted
357.5
355.7
353.9
352.4
350.3
Common Stock Price Range (based on closing price):
High
122.33
112.71
109.89
117.60
118.72
Low
105.04
95.12
100.68
99.13
92.00
Close
111.68
107.44
103.74
112.88
97.69
Common Stock market capitalization (1)
39,535
37,808
36,299
39,271
33,928
__________
(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.
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
OPERATIONS HIGHLIGHTS
2025
2026
1Q
2Q
3Q
4Q
1Q
Assets Under Management and Administration (in billions) (1)(2):
PGIM:
Institutional customers - Third Party
620.2
647.6
654.9
652.0
638.8
Retail customers - Third Party
240.6
256.7
265.2
267.0
259.0
Affiliated
524.5
536.4
549.9
547.1
535.5
Total PGIM
1,385.3
1,440.7
1,470.0
1,466.1
1,433.3
U.S. Businesses
111.3
113.8
115.9
116.9
115.3
International Businesses
19.3
19.4
19.8
19.7
20.8
Corporate and Other
6.2
6.4
6.3
6.4
6.4
Total assets under management
1,522.1
1,580.3
1,612.0
1,609.1
1,575.8
Assets under administration
180.4
193.2
194.6
195.1
190.9
Total assets under management and administration
1,702.5
1,773.5
1,806.6
1,804.2
1,766.7
Distribution Representatives (1):
Prudential Advisors
2,906
2,985
3,034
3,061
3,112
Life Planners
6,175
6,161
6,141
6,235
6,281
Life Consultants
6,840
6,822
6,940
6,983
6,947
__________
(1) As of end of period.
(2) At fair market value.
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
COMBINED STATEMENTS OF OPERATIONS
(in millions)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
% change
Revenues (1):
Premiums
6,446
6,426
8,691
7,028
7,838
6,446
7,838
22%
Policy charges and fee income
1,108
1,070
1,126
1,106
1,108
1,108
1,108
—%
Net investment income
4,519
4,600
4,872
4,947
5,008
4,519
5,008
11%
Asset management fees, commissions and other income
1,339
1,410
1,550
1,439
1,280
1,339
1,280
-4%
Total revenues
13,412
13,506
16,239
14,520
15,234
13,412
15,234
14%
Benefits and expenses (1):
Insurance and annuity benefits
7,344
7,195
9,485
7,936
8,713
7,344
8,713
19%
Change in estimates of liability for future policy benefits
(14)
100
96
50
41
(14)
41
393%
Interest credited to policyholders' account balances
1,083
1,135
1,215
1,271
1,304
1,083
1,304
20%
Interest expense
522
526
531
533
539
522
539
3%
Deferral of acquisition costs
(684)
(689)
(699)
(681)
(624)
(684)
(624)
9%
Amortization of acquisition costs
376
392
395
408
397
376
397
6%
Operating expenses
1,624
1,634
1,639
1,876
1,729
1,624
1,729
6%
Variable expenses
1,641
1,548
1,630
1,622
1,509
1,641
1,509
-8%
Total benefits and expenses
11,892
11,841
14,292
13,015
13,608
11,892
13,608
14%
Adjusted operating income (loss) before income taxes
1,520
1,665
1,947
1,505
1,626
1,520
1,626
7%
Income taxes, applicable to adjusted operating income
332
381
426
337
348
332
348
5%
After-tax adjusted operating income
1,188
1,284
1,521
1,168
1,278
1,188
1,278
8%
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments
(246)
(516)
(574)
(282)
(621)
(246)
(621)
-152%
Change in value of market risk benefits, net of related hedging gains (losses)
(351)
(426)
324
(22)
(295)
(351)
(295)
16%
Market experience updates
39
42
(36)
23
15
39
15
-62%
Divested and Run-off Businesses:
Closed Block division
(22)
(18)
10
(38)
(11)
(22)
(11)
50%
Other Divested and Run-off Businesses
(51)
12
123
23
64
(51)
64
225%
Equity in earnings of joint ventures and other operating entities, and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
3
(18)
(11)
6
(42)
3
(42)
-1500%
Other adjustments (2)
28
(1)
(1)
(1)
(3)
28
(3)
-111%
Total reconciling items, before income taxes
(600)
(925)
(165)
(291)
(893)
(600)
(893)
-49%
Income taxes, not applicable to adjusted operating income
(125)
(186)
(44)
(68)
(219)
(125)
(219)
-75%
Total reconciling items, after income taxes
(475)
(739)
(121)
(223)
(674)
(475)
(674)
-42%
Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities
920
740
1,782
1,214
733
920
733
-20%
Income tax expense (benefit)
207
195
382
269
129
207
129
-38%
Income (loss) before equity in earnings of joint ventures and other operating entities
713
545
1,400
945
604
713
604
-15%
Equity in earnings of joint ventures and other operating entities, net of taxes and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
(6)
(12)
31
(40)
(7)
(6)
(7)
-17%
Income (loss) attributable to Prudential Financial, Inc.
707
533
1,431
905
597
707
597
-16%
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests
35
33
52
36
9
35
9
-74%
Net income (loss)
742
566
1,483
941
606
742
606
-18%
Less: Income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests
35
33
52
36
9
35
9
-74%
Net income (loss) attributable to Prudential Financial, Inc.
707
533
1,431
905
597
707
597
-16%
____________
(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 31-33 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.
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
CONSOLIDATED BALANCE SHEETS
(in millions)
03/31/2025
06/30/2025
09/30/2025
12/31/2025
03/31/2026
Assets:
Investments:
Fixed maturities, available-for-sale, at fair value
315,914
328,302
335,414
331,455
330,851
Fixed maturities, trading, at fair value
13,278
14,020
14,575
14,869
15,831
Assets supporting experience-rated contractholder liabilities, at fair value
3,769
4,282
4,648
4,842
4,781
Equity securities, at fair value
8,720
7,434
8,794
10,972
12,552
Commercial mortgage and other loans
62,694
62,966
64,813
64,715
65,412
Policy loans
9,876
9,946
9,951
9,958
9,988
Other invested assets
26,739
27,256
27,665
27,294
27,792
Short-term investments
8,716
6,375
6,248
6,414
6,917
Total investments
449,706
460,581
472,108
470,519
474,124
Cash and cash equivalents
16,063
16,638
17,469
19,712
15,936
Accrued investment income
3,383
3,560
3,581
3,636
3,633
Deferred policy acquisition costs
20,790
21,222
21,468
21,530
21,730
Value of business acquired
446
450
430
397
382
Market risk benefit assets
2,139
2,188
2,252
2,330
2,166
Reinsurance recoverables and deposit receivables
43,982
44,152
44,947
44,077
43,213
Income tax assets
300
839
240
279
—
Other assets
14,262
14,561
15,267
15,009
15,176
Separate account assets
188,191
194,761
198,540
196,251
189,036
Total assets
739,262
758,952
776,302
773,740
765,396
Liabilities:
Future policy benefits
269,969
270,133
272,553
266,914
262,470
Policyholders' account balances
170,278
180,931
188,657
191,307
192,131
Market risk benefit liabilities
5,021
4,859
4,771
4,623
5,000
Reinsurance and funds withheld payables
17,347
17,126
17,874
18,844
19,270
Securities sold under agreements to repurchase
7,549
8,205
9,937
9,598
10,975
Cash collateral for loaned securities
9,507
9,167
8,597
8,700
8,905
Income tax liabilities
—
—
—
—
255
Short-term debt
1,406
1,373
1,386
1,443
946
Long-term debt
19,540
18,651
18,797
18,856
18,882
Other liabilities
16,789
18,872
18,507
18,964
19,316
Notes issued by consolidated variable interest entities
1,443
1,758
1,868
2,659
3,283
Separate account liabilities
188,191
194,761
198,540
196,251
189,036
Total liabilities
707,040
725,836
741,487
738,159
730,469
Mezzanine Equity:
Redeemable noncontrolling interests
2,019
2,213
2,358
2,794
2,608
Total mezzanine equity
2,019
2,213
2,358
2,794
2,608
Equity:
Accumulated other comprehensive income (loss)
(4,741)
(3,921)
(3,175)
(3,077)
(3,450)
Other equity (1)
34,624
34,503
35,269
35,515
35,425
Total Prudential Financial, Inc. equity
29,883
30,582
32,094
32,438
31,975
Noncontrolling interests
320
321
363
349
344
Total equity
30,203
30,903
32,457
32,787
32,319
Total liabilities, mezzanine equity and equity
739,262
758,952
776,302
773,740
765,396
____________
(1) Includes $60 million, $(24) million, $(47) million, $67 million and $62 million of cumulative change in fair value of funds withheld and modified coinsurance embedded derivatives as described on page 3, as of March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025, respectively.
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
COMBINING BALANCE SHEETS
(in millions)
As of March 31, 2026
Consolidated PFI
Closed Block Division
PFI Excluding Closed Block Division
PGIM
U.S. Businesses
International Businesses
Corporate and Other
Assets:
Total investments
474,124
46,004
428,120
4,657
242,616
158,502
22,345
Deferred policy acquisition costs
21,730
141
21,589
—
12,499
9,756
(666)
Other assets
80,506
1,417
79,089
5,588
56,032
18,335
(866)
Separate account assets
189,036
—
189,036
29,225
163,828
—
(4,017)
Total assets
765,396
47,562
717,834
39,470
474,975
186,593
16,796
Liabilities:
Future policy benefits
262,470
41,229
221,241
—
120,525
91,753
8,963
Policyholders' account balances
192,131
4,240
187,891
—
125,459
62,193
239
Debt
19,828
—
19,828
1,860
4,517
212
13,239
Other liabilities
67,004
3,686
63,318
4,229
43,477
10,200
5,412
Separate account liabilities
189,036
—
189,036
29,225
163,828
—
(4,017)
Total liabilities
730,469
49,155
681,314
35,314
457,806
164,358
23,836
Mezzanine Equity:
Redeemable noncontrolling interests
2,608
—
2,608
930
—
—
1,678
Total mezzanine equity
2,608
—
2,608
930
—
—
1,678
Equity:
Accumulated other comprehensive income (loss)
(3,450)
(158)
(3,292)
(48)
(1,147)
448
(2,545)
Other equity (1)
35,425
(1,446)
36,871
3,122
18,237
21,757
(6,245)
Total Prudential Financial, Inc. equity
31,975
(1,604)
33,579
3,074
17,090
22,205
(8,790)
Noncontrolling interests
344
11
333
152
79
30
72
Total equity
32,319
(1,593)
33,912
3,226
17,169
22,235
(8,718)
Total liabilities, mezzanine equity and equity
765,396
47,562
717,834
39,470
474,975
186,593
16,796
As of December 31, 2025
Consolidated PFI
Closed Block Division
PFI Excluding Closed Block Division
PGIM
U.S. Businesses
International Businesses
Corporate and Other
Assets:
Total investments (2)
470,519
46,523
423,996
3,652
238,446
158,699
23,199
Deferred policy acquisition costs
21,530
144
21,386
—
12,359
9,678
(651)
Other assets
85,440
1,428
84,012
6,173
56,968
19,393
1,478
Separate account assets
196,251
—
196,251
29,278
171,022
—
(4,049)
Total assets
773,740
48,095
725,645
39,103
478,795
187,770
19,977
Liabilities:
Future policy benefits
266,914
41,484
225,430
—
121,068
95,235
9,127
Policyholders' account balances
191,307
4,272
187,035
—
123,538
61,688
1,809
Debt
20,299
—
20,299
2,070
4,619
211
13,399
Other liabilities (2)
63,388
3,942
59,446
3,329
41,279
8,781
6,057
Separate account liabilities
196,251
—
196,251
29,278
171,022
—
(4,049)
Total liabilities
738,159
49,698
688,461
34,677
461,526
165,915
26,343
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)
(365)
65
(2,572)
Other equity (1)
35,515
(1,459)
36,974
3,144
17,555
21,762
(5,487)
Total Prudential Financial, Inc. equity
32,438
(1,614)
34,052
3,094
17,190
21,827
(8,059)
Noncontrolling interests
349
11
338
157
79
28
74
Total equity
32,787
(1,603)
34,390
3,251
17,269
21,855
(7,985)
Total liabilities, mezzanine equity and equity
773,740
48,095
725,645
39,103
478,795
187,770
19,977
____________
(1) Includes $60 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 March 31, 2026 and December 31, 2025, respectively.
(2) Prior period amounts have been updated to conform to current period presentation for U.S. Businesses and Corporate and Other.
Page 7
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED
(in millions)
As of March 31, 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
36
6,524
7,596
14,156
36
6,464
7,595
14,095
Operating Debt
874
4,360
—
5,234
1,374
4,359
—
5,733
Limited recourse and non-recourse borrowing
36
402
—
438
33
438
—
471
Total Debt
946
11,286
7,596
19,828
1,443
11,261
7,595
20,299
As of March 31, 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
14,117
—
39
14,156
14,055
—
40
14,095
Operating Debt
4,385
849
—
5,234
4,884
849
—
5,733
Limited recourse and non-recourse borrowing
—
33
405
438
—
33
438
471
Total Debt
18,502
882
444
19,828
18,939
882
478
20,299
__________
(1) Includes Prudential Funding, LLC.
Page 8
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
STATEMENTS OF OPERATIONS - PGIM
(in millions)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
% change
Revenues (1):
Premiums
—
—
—
—
—
—
—
—
Policy charges and fee income
—
—
—
—
—
—
—
—
Net investment income
20
59
54
48
34
20
34
70%
Asset management fees, commissions and other income
965
984
1,041
1,060
1,006
965
1,006
4%
Total revenues
985
1,043
1,095
1,108
1,040
985
1,040
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
21
24
27
28
25
21
25
19%
Deferral of acquisition costs
—
—
—
—
—
—
—
—
Amortization of acquisition costs
—
—
—
—
—
—
—
—
Operating expenses
504
477
503
489
525
504
525
4%
Variable expenses
304
313
321
342
300
304
300
-1%
Total benefits and expenses
829
814
851
859
850
829
850
3%
Adjusted operating income (loss) before income taxes
156
229
244
249
190
156
190
22%
Total revenues
985
1,043
1,095
1,108
1,040
985
1,040
6%
Less: Passthrough distribution revenue
21
20
21
21
20
21
20
-5%
Less: Revenue associated with consolidations
18
50
45
42
23
18
23
28%
Total adjusted revenues (2)
946
973
1,029
1,045
997
946
997
5%
Adjusted operating margin (2)(3)
16.5
%
23.5
%
23.7
%
23.8
%
19.1
%
16.5
%
19.1
%
__________
(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 passthrough distribution revenue and revenue associated with consolidations. Adjusted operating income before income taxes as a percentage of total adjusted revenues.
(3) Reported Operating Margin based on total revenues is 18.3%, 22.5%, 22.3%, 22.0% and 15.8% for the three months ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.
Page 9
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
PGIM - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION
(in millions, or as otherwise noted)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
% change
Supplementary Revenue Information:
Analysis of revenues by type:
Asset management fees
828
825
844
858
847
828
847
2%
Other related revenues (1)
38
82
93
107
65
38
65
71%
Service, distribution and other revenues
119
136
158
143
128
119
128
8%
Total PGIM revenues
985
1,043
1,095
1,108
1,040
985
1,040
6%
Analysis of asset management fees by source:
Institutional customers - Third Party
387
387
395
399
398
387
398
3%
Retail customers - Third Party
225
219
231
236
201
225
201
-11%
Affiliated
216
219
218
223
248
216
248
15%
Total asset management fees
828
825
844
858
847
828
847
2%
Trailing twelve months net flows by source (in billions):
Institutional customers - Third Party
1.2
10.2
12.7
6.1
0.1
Retail customers - Third Party
0.7
(1.5)
(2.5)
(4.0)
(3.6)
Affiliated
17.3
16.0
11.3
(1.6)
(3.4)
Total net flows
19.2
24.7
21.5
0.5
(6.9)
Trailing twelve months net flows by asset class (in billions):
Public equity
(10.9)
(9.3)
(15.2)
(17.9)
(22.6)
Public credit
16.9
23.0
26.9
22.3
21.5
Private credit
9.2
8.4
7.3
5.2
3.8
Real estate
3.6
2.8
1.7
4.3
3.6
Multi-asset
0.8
0.1
(0.1)
(14.6)
(14.2)
Other alternatives
(0.4)
(0.3)
0.9
1.2
1.0
Total net flows
19.2
24.7
21.5
0.5
(6.9)
Supplementary Assets Under Management Information (at fair market value) (in billions):
March 31, 2026
Public Equity
Public Credit
Private Credit
Real Estate
Multi-Asset
Other Alternatives
Total
Institutional customers - Third Party
69.0
461.7
29.7
70.7
1.4
6.3
638.8
Retail customers - Third Party
94.0
162.5
0.1
—
2.1
0.3
259.0
Affiliated
37.8
272.7
89.1
64.3
70.5
1.1
535.5
Total
200.8
896.9
118.9
135.0
74.0
7.7
1,433.3
March 31, 2025
Public Equity
Public Credit
Private Credit (2)
Real Estate
Multi-Asset
Other Alternatives (2)
Total
Institutional customers - Third Party
69.2
447.5
28.2
68.4
1.4
5.5
620.2
Retail customers - Third Party
95.0
142.8
—
0.2
2.3
0.3
240.6
Affiliated
33.8
266.4
86.5
62.0
74.5
1.3
524.5
Total
198.0
856.7
114.7
130.6
78.2
7.1
1,385.3
__________
(1) Other related revenues, net of related expenses are $35 million, $57 million, $64 million, $49 million and $19 million for the three months ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025, respectively.
(2) Prior period amounts have been updated to conform to current period presentation.
Page 10
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
PGIM - SUPPLEMENTARY ASSETS UNDER MANAGEMENT INFORMATION
(in billions)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
Institutional Customers - Third Party - Assets Under Management (at fair market value):
Beginning assets under management
601.1
620.2
647.6
654.9
652.0
601.1
652.0
Additions
23.8
22.1
18.8
20.6
24.7
23.8
24.7
Withdrawals
(16.2)
(19.5)
(18.5)
(25.0)
(23.1)
(16.2)
(23.1)
Net institutional additions (withdrawals), excluding realizations, distributions and money market activity
7.6
2.6
0.3
(4.4)
1.6
7.6
1.6
Realizations and distributions (1)
(4.2)
(2.3)
(4.0)
(3.1)
(3.1)
(4.2)
(3.1)
Change in market value
6.6
24.0
15.6
4.1
(8.3)
6.6
(8.3)
Net money market flows
1.7
0.8
(0.3)
0.5
(3.7)
1.7
(3.7)
Other (2)
7.4
2.3
(4.3)
—
0.3
7.4
0.3
Ending assets under management
620.2
647.6
654.9
652.0
638.8
620.2
638.8
Retail Customers - Third Party - Assets Under Management (at fair market value):
Beginning assets under management
244.9
240.6
256.7
265.2
267.0
244.9
267.0
Additions
17.7
16.0
16.2
21.5
21.6
17.7
21.6
Withdrawals
(17.9)
(18.8)
(15.9)
(22.8)
(21.4)
(17.9)
(21.4)
Net retail additions (withdrawals), excluding money market activity
(0.2)
(2.8)
0.3
(1.3)
0.2
(0.2)
0.2
Change in market value
(5.5)
18.6
9.2
2.7
(8.6)
(5.5)
(8.6)
Net money market flows
1.8
0.5
0.7
0.7
1.1
1.8
1.1
Other (2)
(0.4)
(0.2)
(1.7)
(0.3)
(0.7)
(0.4)
(0.7)
Ending assets under management
240.6
256.7
265.2
267.0
259.0
240.6
259.0
Affiliated - Assets Under Management (at fair market value):
Beginning assets under management
529.2
524.5
536.4
549.9
547.1
529.2
547.1
Additions
20.6
19.8
15.8
17.3
18.2
20.6
18.2
Withdrawals
(20.7)
(19.2)
(14.0)
(21.2)
(20.1)
(20.7)
(20.1)
Net affiliated additions (withdrawals), excluding realizations, distributions and money market activity
(0.1)
0.6
1.8
(3.9)
(1.9)
(0.1)
(1.9)
Realizations and distributions (1)
(0.1)
—
(0.6)
(0.1)
(0.1)
(0.1)
(0.1)
Change in market value
3.9
10.9
13.2
2.8
(6.4)
3.9
(6.4)
Net money market flows
(5.3)
(2.1)
—
1.5
(2.5)
(5.3)
(2.5)
Other (2)
(3.1)
2.5
(0.9)
(3.1)
(0.7)
(3.1)
(0.7)
Ending assets under management
524.5
536.4
549.9
547.1
535.5
524.5
535.5
__________
(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) First quarter 2025 includes $6.1 billion related to the reinsurance of certain Japanese whole life policies to Prismic Life Reinsurance, Ltd. which were transferred from affiliated to institutional assets under management. 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
First Quarter 2026
COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES
(in millions)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
% change
Revenues (1):
Premiums
3,398
3,724
5,897
4,401
4,894
3,398
4,894
44%
Policy charges and fee income
1,035
993
1,046
1,016
1,006
1,035
1,006
-3%
Net investment income
2,700
2,760
2,948
2,982
3,066
2,700
3,066
14%
Asset management fees, commissions and other income
573
531
552
548
484
573
484
-16%
Total revenues
7,706
8,008
10,443
8,947
9,450
7,706
9,450
23%
Benefits and expenses (1):
Insurance and annuity benefits
4,563
4,750
6,928
5,503
6,049
4,563
6,049
33%
Change in estimates of liability for future policy benefits
(11)
68
117
45
21
(11)
21
291%
Interest credited to policyholders' account balances
724
754
808
856
886
724
886
22%
Interest expense
295
286
291
299
295
295
295
—%
Deferral of acquisition costs
(411)
(431)
(426)
(432)
(393)
(411)
(393)
4%
Amortization of acquisition costs
227
233
234
244
241
227
241
6%
Operating expenses
529
583
500
521
555
529
555
5%
Variable expenses
859
810
842
860
840
859
840
-2%
Total benefits and expenses
6,775
7,053
9,294
7,896
8,494
6,775
8,494
25%
Adjusted operating income (loss) before income taxes
931
955
1,149
1,051
956
931
956
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.
Page 12
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT
(in millions)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
% change
Revenues (1):
Premiums (2)
1,746
2,127
4,290
2,832
3,245
1,746
3,245
86%
Policy charges and fee income
30
25
31
28
31
30
31
3%
Net investment income
1,758
1,819
1,963
1,998
2,085
1,758
2,085
19%
Asset management fees, commissions and other income
131
105
121
129
96
131
96
-27%
Total revenues
3,665
4,076
6,405
4,987
5,457
3,665
5,457
49%
Benefits and expenses (1):
Insurance and annuity benefits
2,440
2,809
4,889
3,524
3,935
2,440
3,935
61%
Change in estimates of liability for future policy benefits
(25)
123
112
53
25
(25)
25
200%
Interest credited to policyholders' account balances
474
512
559
607
648
474
648
37%
Interest expense
15
9
7
12
11
15
11
-27%
Deferral of acquisition costs
(208)
(206)
(181)
(166)
(174)
(208)
(174)
16%
Amortization of acquisition costs
64
68
68
87
79
64
79
23%
Operating expenses
137
138
138
134
145
137
145
6%
Variable expenses
242
226
215
200
216
242
216
-11%
Total benefits and expenses
3,139
3,679
5,807
4,451
4,885
3,139
4,885
56%
Adjusted operating income (loss) before income taxes
526
397
598
536
572
526
572
9%
__________
(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 $1.4 billion, $1.0 billion, $2.4 billion, $0.2 billion and $0.0 billion for the three months ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.
Page 13
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
U.S. BUSINESSES - RETIREMENT - SALES RESULTS AND ACCOUNT VALUES
(in millions)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
Sales and Additions:
Retail annuities (1)
3,473
3,135
3,377
3,574
3,284
3,473
3,284
Longevity reinsurance (2)
4,922
5,581
1,476
80
154
4,922
154
Fee-based stable value
1,081
1,048
551
1,086
1,113
1,081
1,113
Pension risk transfer and other (3)
1,048
2,225
4,326
2,520
2,818
1,048
2,818
Total
10,524
11,989
9,730
7,260
7,369
10,524
7,369
Account Value:
Beginning account value, gross
333,243
340,617
359,635
365,143
370,038
333,243
370,038
Sales and additions
10,524
11,989
9,730
7,260
7,369
10,524
7,369
Withdrawals and benefits
(7,292)
(6,188)
(7,223)
(7,682)
(8,057)
(7,292)
(8,057)
Net flows
3,232
5,801
2,507
(422)
(688)
3,232
(688)
Change in market value, interest credited and policy charges
1,627
5,525
6,207
4,190
1,517
1,627
1,517
Other (4)
2,515
7,692
(3,206)
1,127
(1,786)
2,515
(1,786)
Ending account value, gross
340,617
359,635
365,143
370,038
369,081
340,617
369,081
Reinsurance ceded
(12,096)
(11,579)
(11,987)
(12,888)
(13,336)
(12,096)
(13,336)
Ending account value, net
328,521
348,056
353,156
357,150
355,745
328,521
355,745
Amounts included in net flows above:
Retail annuities (1)
2,823
2,472
2,614
2,785
2,429
2,823
2,429
Longevity reinsurance (2)
3,385
3,873
(311)
(1,706)
(1,664)
3,385
(1,664)
Fee-based stable value
(883)
(25)
(1,049)
(1,191)
(1,257)
(883)
(1,257)
Pension risk transfer and other (3)
(2,093)
(519)
1,253
(310)
(196)
(2,093)
(196)
Total
3,232
5,801
2,507
(422)
(688)
3,232
(688)
Amounts included in ending account value, net above:
Retail annuities (1)
43,543
49,649
54,553
57,532
58,177
Longevity reinsurance (2)
113,480
125,534
122,682
123,120
120,015
Fee-based stable value
66,947
67,362
67,727
67,763
67,518
Pension risk transfer and other (3)
104,551
105,511
108,194
108,735
110,035
Total
328,521
348,056
353,156
357,150
355,745
__________
(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
First Quarter 2026
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - GROUP INSURANCE
(in millions)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
% change
Revenues (1):
Premiums
1,396
1,349
1,353
1,321
1,390
1,396
1,390
—%
Policy charges and fee income
197
184
183
164
186
197
186
-6%
Net investment income
134
133
138
138
138
134
138
3%
Asset management fees, commissions and other income
21
21
20
22
20
21
20
-5%
Total revenues
1,748
1,687
1,694
1,645
1,734
1,748
1,734
-1%
Benefits and expenses (1):
Insurance and annuity benefits
1,296
1,230
1,272
1,224
1,318
1,296
1,318
2%
Change in estimates of liability for future policy benefits
—
—
—
—
—
—
—
—
Interest credited to policyholders' account balances
35
32
33
37
33
35
33
-6%
Interest expense
5
5
7
4
5
5
5
—%
Deferral of acquisition costs
—
(4)
—
—
—
—
—
—
Amortization of acquisition costs
2
4
2
1
2
2
2
—%
Operating expenses
194
186
181
190
206
194
206
6%
Variable expenses
127
109
109
112
132
127
132
4%
Total benefits and expenses
1,659
1,562
1,604
1,568
1,696
1,659
1,696
2%
Adjusted operating income (loss) before income taxes
89
125
90
77
38
89
38
-57%
__________
(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
First Quarter 2026
U.S. BUSINESSES - GROUP INSURANCE SUPPLEMENTARY INFORMATION
(dollar amounts in millions, or as otherwise noted)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
Annualized New Business Premiums:
Group life
225
35
36
29
211
225
211
Group disability
175
42
42
27
315
175
315
Total
400
77
78
56
526
400
526
Future Policy Benefits (1):
Group life
2,422
2,396
2,334
2,306
2,328
Group disability
3,283
3,316
3,345
3,398
3,472
Total
5,705
5,712
5,679
5,704
5,800
Policyholders' Account Balances (1):
Group life
4,519
4,460
4,503
4,732
4,493
Group disability
117
104
99
100
106
Total
4,636
4,564
4,602
4,832
4,599
Separate Account Liabilities (1):
Group life
25,547
26,364
26,988
26,916
26,737
Group Life Insurance:
Gross premiums, policy charges and fee income (2)
1,196
1,195
1,155
1,159
1,141
1,196
1,141
Earned premiums
996
935
952
916
946
996
946
Earned policy charges and fee income
171
156
154
137
156
171
156
Benefits ratio (3)
87.1
%
83.1
%
84.1
%
81.3
%
86.0
%
87.1
%
86.0
%
Administrative expense ratio
10.8
%
11.5
%
10.5
%
11.7
%
11.5
%
10.8
%
11.5
%
Persistency ratio
97.0
%
96.8
%
96.5
%
96.1
%
96.5
%
Group Disability Insurance:
Gross premiums, policy charges and fee income (2)
429
447
434
432
477
429
477
Earned premiums
400
414
401
405
444
400
444
Earned policy charges and fee income
26
28
29
27
30
26
30
Benefits ratio (3)
65.6
%
75.3
%
79.7
%
85.3
%
78.4
%
65.6
%
78.4
%
Administrative expense ratio
25.8
%
24.8
%
24.0
%
24.9
%
26.2
%
25.8
%
26.2
%
Persistency ratio
95.3
%
94.1
%
92.9
%
91.8
%
94.2
%
Total Group Insurance:
Benefits ratio (3)
81.3
%
80.9
%
82.8
%
82.5
%
83.7
%
81.3
%
83.7
%
Administrative expense ratio
14.8
%
15.2
%
14.2
%
15.5
%
15.9
%
14.8
%
15.9
%
Net face amount of policies in force (in billions) (4)
2,127
2,118
2,118
2,117
2,059
__________
(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 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
First Quarter 2026
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - INDIVIDUAL LIFE
(in millions)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
% change
Revenues (1):
Premiums
237
232
236
231
234
237
234
-1%
Policy charges and fee income
430
354
454
445
431
430
431
—%
Net investment income
360
348
371
358
368
360
368
2%
Asset management fees, commissions and other income
84
80
82
90
88
84
88
5%
Total revenues
1,111
1,014
1,143
1,124
1,121
1,111
1,121
1%
Benefits and expenses (1):
Insurance and annuity benefits
522
427
482
422
462
522
462
-11%
Change in estimates of liability for future policy benefits
7
(38)
(5)
(3)
(8)
7
(8)
-214%
Interest credited to policyholders' account balances
146
143
153
149
147
146
147
1%
Interest expense
111
102
104
105
105
111
105
-5%
Deferral of acquisition costs
(190)
(209)
(236)
(250)
(216)
(190)
(216)
-14%
Amortization of acquisition costs
106
104
105
106
108
106
108
2%
Operating expenses
109
156
105
104
115
109
115
6%
Variable expenses
248
247
282
305
269
248
269
8%
Total benefits and expenses
1,059
932
990
938
982
1,059
982
-7%
Adjusted operating income (loss) before income taxes
52
82
153
186
139
52
139
167%
__________
(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
First Quarter 2026
U.S. BUSINESSES - INDIVIDUAL LIFE SUPPLEMENTARY INFORMATION
(in millions, or as otherwise noted)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
ANNUALIZED NEW BUSINESS PREMIUMS (1):
Term life
32
39
37
36
38
32
38
Universal life
18
18
24
21
17
18
17
Variable life
154
160
186
201
196
154
196
Total
204
217
247
258
251
204
251
ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):
Prudential Advisors
38
43
48
49
44
38
44
Third party distribution
166
174
199
209
207
166
207
Total
204
217
247
258
251
204
251
ACCOUNT VALUE ACTIVITY:
Policyholders' Account Balances (2):
Beginning account balance
19,161
19,289
19,679
19,940
20,118
19,161
20,118
Premiums and deposits
347
346
349
361
392
347
392
Surrenders and withdrawals
(417)
(467)
(419)
(557)
(460)
(417)
(460)
Net sales (redemptions)
(70)
(121)
(70)
(196)
(68)
(70)
(68)
Benefit payments
(31)
(27)
(31)
53
(19)
(31)
(19)
Net flows
(101)
(148)
(101)
(143)
(87)
(101)
(87)
Interest credited and other
224
508
304
179
131
224
131
Net transfers (to) from separate account
145
168
193
288
219
145
219
Policy charges
(140)
(138)
(135)
(146)
(143)
(140)
(143)
Ending account balance
19,289
19,679
19,940
20,118
20,238
19,289
20,238
Separate Account Liabilities:
Beginning account balance
54,803
53,323
57,995
61,376
62,594
54,803
62,594
Premiums and deposits
963
1,084
1,117
1,293
1,177
963
1,177
Surrenders and withdrawals
(326)
(315)
(442)
(558)
(349)
(326)
(349)
Net sales (redemptions)
637
769
675
735
828
637
828
Benefit payments
(184)
(165)
(170)
(244)
(288)
(184)
(288)
Net flows
453
604
505
491
540
453
540
Change in market value, interest credited and other
(1,414)
4,608
3,450
1,398
(1,825)
(1,414)
(1,825)
Net transfers (to) from general account
(145)
(168)
(193)
(288)
(219)
(145)
(219)
Policy charges
(374)
(372)
(381)
(383)
(386)
(374)
(386)
Ending account balance
53,323
57,995
61,376
62,594
60,704
53,323
60,704
NET FACE AMOUNT IN FORCE (in billions) (3):
Term life
274
284
282
284
289
Universal life
25
25
25
25
25
Variable life
165
170
174
176
177
Total
464
479
481
485
491
__________
(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
First Quarter 2026
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - U.S. LEGACY PRODUCTS
(in millions)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
% change
Revenues (1):
Premiums
19
16
18
17
25
19
25
32%
Policy charges and fee income
378
430
378
379
358
378
358
-5%
Net investment income
448
460
476
488
475
448
475
6%
Asset management fees, commissions and other income
337
325
329
307
280
337
280
-17%
Total revenues
1,182
1,231
1,201
1,191
1,138
1,182
1,138
-4%
Benefits and expenses (1):
Insurance and annuity benefits
305
284
285
333
334
305
334
10%
Change in estimates of liability for future policy benefits
7
(17)
10
(5)
4
7
4
-43%
Interest credited to policyholders' account balances
69
67
63
63
58
69
58
-16%
Interest expense
164
170
173
178
174
164
174
6%
Deferral of acquisition costs
(13)
(12)
(9)
(16)
(3)
(13)
(3)
77%
Amortization of acquisition costs
55
57
59
50
52
55
52
-5%
Operating expenses
89
103
76
93
89
89
89
—%
Variable expenses
242
228
236
243
223
242
223
-8%
Total benefits and expenses
918
880
893
939
931
918
931
1%
Adjusted operating income (loss) before income taxes
264
351
308
252
207
264
207
-22%
__________
(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
First Quarter 2026
U.S. BUSINESSES - U.S. LEGACY PRODUCTS - SUPPLEMENTARY INFORMATION
(in millions, or as otherwise noted)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
Annuities Account Value (1):
Beginning account value, gross
93,598
89,139
90,263
90,034
87,203
93,598
87,203
Premiums and deposits (2)
6
8
4
6
5
6
5
Full surrenders and death benefits
(2,477)
(2,170)
(2,633)
(2,576)
(2,425)
(2,477)
(2,425)
Premiums and deposits net of full surrenders and death benefits
(2,471)
(2,162)
(2,629)
(2,570)
(2,420)
(2,471)
(2,420)
Partial withdrawals and other benefit payments
(1,181)
(1,036)
(1,049)
(1,228)
(1,131)
(1,181)
(1,131)
Net flows
(3,652)
(3,198)
(3,678)
(3,798)
(3,551)
(3,652)
(3,551)
Change in market value interest credited and other
(332)
4,802
3,935
1,433
(1,583)
(332)
(1,583)
Policy charges
(475)
(480)
(486)
(466)
(433)
(475)
(433)
Ending account value, gross
89,139
90,263
90,034
87,203
81,636
89,139
81,636
Reinsurance ceded
(8,608)
(8,393)
(8,315)
(7,954)
(7,575)
(8,608)
(7,575)
Ending account value, net
80,531
81,870
81,719
79,249
74,061
80,531
74,061
Guaranteed Universal Life Policyholders' Account Balances (3):
Beginning account balance, gross
14,611
14,655
14,685
14,720
14,897
14,611
14,897
Premiums and deposits (2)
350
342
338
479
331
350
331
Surrenders and withdrawals
(32)
(26)
(26)
(29)
(24)
(32)
(24)
Net premiums (redemptions)
318
316
312
450
307
318
307
Benefit payments
(30)
(44)
(29)
(24)
(31)
(30)
(31)
Net flows
288
272
283
426
276
288
276
Interest credited and other
141
139
140
140
131
141
131
Policy charges
(385)
(381)
(388)
(389)
(383)
(385)
(383)
Ending account balance, gross
14,655
14,685
14,720
14,897
14,921
14,655
14,921
Reinsurance ceded
(9,029)
(9,043)
(9,077)
(9,244)
(9,273)
(9,029)
(9,273)
Ending account balance, net
5,626
5,642
5,643
5,653
5,648
5,626
5,648
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
First Quarter 2026
U.S. BUSINESSES - U.S. LEGACY PRODUCTS - MARKET RISK BENEFIT FEATURES
(in millions)
2025
2026
1Q
2Q
3Q
4Q
1Q
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
61,716
62,634
62,435
60,554
56,589
Account Values with Auto-Rebalancing Feature - externally reinsured
1,763
1,758
1,713
1,628
1,493
Account Values without Auto-Rebalancing Feature
21,588
21,733
21,711
20,937
19,584
Total
85,067
86,125
85,859
83,119
77,666
Market Risk Benefits Net Amount at Risk by Product Design Type:
Net Amount at Risk with Auto-Rebalancing Feature
6,938
6,104
5,575
5,558
6,252
Net Amount at Risk without Auto-Rebalancing Feature
2,779
2,632
2,421
2,517
2,750
Total
9,717
8,736
7,996
8,075
9,002
__________
(1) At end of period.
Page 21
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES
(in millions)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
% change
Revenues (1):
Premiums
3,057
2,709
2,800
2,627
2,949
3,057
2,949
-4%
Policy charges and fee income
88
92
96
104
117
88
117
33%
Net investment income
1,469
1,451
1,540
1,569
1,607
1,469
1,607
9%
Asset management fees, commissions and other income
124
147
159
116
114
124
114
-8%
Total revenues
4,738
4,399
4,595
4,416
4,787
4,738
4,787
1%
Benefits and expenses (1):
Insurance and annuity benefits
2,789
2,446
2,559
2,428
2,667
2,789
2,667
-4%
Change in estimates of liability for future policy benefits
(3)
32
(21)
5
20
(3)
20
767%
Interest credited to policyholders' account balances
347
369
390
402
414
347
414
19%
Interest expense
(1)
1
2
1
3
(1)
3
400%
Deferral of acquisition costs
(306)
(297)
(308)
(286)
(263)
(306)
(263)
14%
Amortization of acquisition costs
165
174
175
179
173
165
173
5%
Operating expenses
436
467
466
499
563
436
563
29%
Variable expenses
463
446
451
431
400
463
400
-14%
Total benefits and expenses
3,890
3,638
3,714
3,659
3,977
3,890
3,977
2%
Adjusted operating income (loss) before income taxes
848
761
881
757
810
848
810
-4%
__________
(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
First Quarter 2026
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
(in millions)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
Actual exchange rate basis (1):
Net premiums, policy charges and fee income:
Japan
2,860
2,462
2,548
2,350
2,688
2,860
2,688
Emerging Markets
285
339
348
381
378
285
378
Total
3,145
2,801
2,896
2,731
3,066
3,145
3,066
Annualized new business premiums:
Japan
478
453
453
410
328
478
328
Emerging Markets
98
88
102
112
101
98
101
Total
576
541
555
522
429
576
429
Annualized new business premiums by distribution channel:
Life Planners
258
216
227
224
154
258
154
Life Consultants
130
150
138
110
105
130
105
Banks
95
93
108
103
85
95
85
Independent Agency and Other
93
82
82
85
85
93
85
Total
576
541
555
522
429
576
429
Constant exchange rate basis (2):
Net premiums, policy charges and fee income:
Japan
2,913
2,440
2,550
2,395
2,770
2,913
2,770
Emerging Markets
280
321
317
345
332
280
332
Total
3,193
2,761
2,867
2,740
3,102
3,193
3,102
Annualized new business premiums:
Japan
483
451
453
417
335
483
335
Emerging Markets
95
84
93
101
89
95
89
Total
578
535
546
518
424
578
424
Annualized new business premiums by distribution channel:
Life Planners
260
211
223
225
152
260
152
Life Consultants
131
150
138
111
107
131
107
Banks
95
92
105
100
82
95
82
Independent Agency and Other
92
82
80
82
83
92
83
Total
578
535
546
518
424
578
424
__________
(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
First Quarter 2026
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
2025
2026
1Q
2Q
3Q
4Q
1Q
Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan
520
517
515
512
506
Emerging Markets
49
51
52
53
57
Total
569
568
567
565
563
Policyholder Account Balances at end of period (in millions) (1)(2):
(Constant exchange rate basis)
International Businesses
49,311
51,391
53,342
54,797
55,531
Number of individual policies in force at end of period (in thousands) (3):
Japan
11,102
11,116
11,142
11,136
11,045
Emerging Markets
855
869
884
907
925
Total
11,957
11,985
12,026
12,043
11,970
International Businesses life insurance individual policy persistency:
13 months
92.0
%
93.0
%
94.0
%
94.0
%
93.8
%
25 months
83.0
%
83.0
%
83.0
%
83.0
%
84.7
%
Number of Life Planners at end of period:
Japan
4,356
4,285
4,282
4,283
4,243
Emerging Markets
1,819
1,876
1,859
1,952
2,038
Total Life Planners
6,175
6,161
6,141
6,235
6,281
Life Consultants
6,840
6,822
6,940
6,983
6,947
__________
(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
First Quarter 2026
STATEMENTS OF OPERATIONS - CORPORATE AND OTHER
(in millions)
2025
2026
Year-to-date
1Q
2Q
3Q
4Q
1Q
2025
2026
% change
Revenues (1):
Premiums
(9)
(7)
(6)
—
(5)
(9)
(5)
44%
Policy charges and fee income
(15)
(15)
(16)
(14)
(15)
(15)
(15)
—%
Net investment income
330
330
330
348
301
330
301
-9%
Asset management fees, commissions and other income
(323)
(252)
(202)
(285)
(324)
(323)
(324)
—%
Total revenues
(17)
56
106
49
(43)
(17)
(43)
-153%
Benefits and expenses (1):
Insurance and annuity benefits
(8)
(1)
(2)
5
(3)
(8)
(3)
63%
Change in estimates of liability for future policy benefits
—
—
—
—
—
—
—
—
Interest credited to policyholders' account balances
12
12
17
13
4
12
4
-67%
Interest expense
207
215
211
205
216
207
216
4%
Deferral of acquisition costs
33
39
35
37
32
33
32
-3%
Amortization of acquisition costs
(16)
(15)
(14)
(15)
(17)
(16)
(17)
-6%
Operating expenses
155
107
170
367
86
155
86
-45%
Variable expenses
15
(21)
16
(11)
(31)
15
(31)
-307%
Total benefits and expenses
398
336
433
601
287
398
287
-28%
Adjusted operating income (loss) before income taxes
(415)
(280)
(327)
(552)
(330)
(415)
(330)
20%
__________
(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
First Quarter 2026
INVESTMENT PORTFOLIO COMPOSITION
(in millions)
March 31, 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
238,652
18,588
4,528
215,536
53.4
%
238,205
18,833
4,576
214,796
53.6
%
Private, available-for-sale, at fair value
91,771
9,776
2,301
79,694
19.7
%
92,900
10,049
2,217
80,634
20.2
%
Fixed maturities, trading, at fair value
14,913
541
9,273
5,099
1.3
%
14,448
581
9,049
4,818
1.2
%
Assets supporting experience-rated contractholder liabilities, at fair value
4,781
—
—
4,781
1.2
%
4,842
—
—
4,842
1.2
%
Equity securities, at fair value
12,178
1,494
—
10,684
2.6
%
10,515
1,593
—
8,922
2.2
%
Commercial mortgage and other loans, at book value, net of allowance
64,187
7,450
301
56,436
14.0
%
63,921
7,463
263
56,195
14.0
%
Policy loans, at outstanding balance
9,988
3,185
—
6,803
1.7
%
9,958
3,217
—
6,741
1.7
%
Other invested assets, net of allowance (2)
24,752
4,706
1,995
18,051
4.5
%
24,066
4,532
1,850
17,684
4.4
%
Short-term investments, net of allowance
6,914
264
17
6,633
1.6
%
6,404
255
71
6,078
1.5
%
Subtotal (3)
468,136
46,004
18,415
403,717
100.0
%
465,259
46,523
18,026
400,710
100.0
%
Invested assets of other entities and operations (4)
5,988
—
—
5,988
5,260
—
—
5,260
Total investments
474,124
46,004
18,415
409,705
470,519
46,523
18,026
405,970
Fixed Maturities by Credit Quality (3)(5):
March 31, 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
185,872
1,781
25,025
—
162,628
75.5
%
184,052
2,585
23,277
—
163,360
76.1
%
2
48,856
580
3,543
1
45,892
21.3
%
46,660
907
2,952
—
44,615
20.8
%
Subtotal - High or Highest Quality Securities
234,728
2,361
28,568
1
208,520
96.8
%
230,712
3,492
26,229
—
207,975
96.9
%
3
6,016
61
621
—
5,456
2.5
%
5,605
86
540
—
5,151
2.4
%
4
1,053
26
21
—
1,058
0.5
%
1,105
44
9
—
1,140
0.5
%
5
452
12
23
8
433
0.2
%
480
16
25
7
464
0.2
%
6
97
7
5
30
69
0.0
%
87
6
5
22
66
0.0
%
Subtotal - Other Securities
7,618
106
670
38
7,016
3.2
%
7,277
152
579
29
6,821
3.1
%
Total
242,346
2,467
29,238
39
215,536
100.0
%
237,989
3,644
26,808
29
214,796
100.0
%
Private Fixed Maturities:
NAIC Rating (6)
1
21,320
225
1,642
—
19,903
25.0
%
21,362
336
1,431
—
20,267
25.1
%
2
48,600
1,183
2,443
—
47,340
59.4
%
47,978
1,777
1,961
—
47,794
59.3
%
Subtotal - High or Highest Quality Securities
69,920
1,408
4,085
—
67,243
84.4
%
69,340
2,113
3,392
—
68,061
84.4
%
3
7,737
253
173
26
7,791
9.8
%
7,581
390
116
19
7,836
9.7
%
4
3,894
29
100
—
3,823
4.8
%
3,343
54
52
22
3,323
4.1
%
5
711
18
15
48
666
0.8
%
1,228
22
20
44
1,186
1.5
%
6
235
28
4
88
171
0.2
%
244
29
6
39
228
0.3
%
Subtotal - Other Securities
12,577
328
292
162
12,451
15.6
%
12,396
495
194
124
12,573
15.6
%
Total
82,497
1,736
4,377
162
79,694
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 March 31, 2026 and December 31, 2025, 1,826 securities with amortized cost of $11,119 million (fair value $10,928 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
First Quarter 2026
INVESTMENT PORTFOLIO COMPOSITION - JAPANESE INSURANCE OPERATIONS AND EXCLUDING JAPANESE INSURANCE OPERATIONS AND FUNDS WITHHELD (1)
(in millions)
March 31, 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
101,777
65.4
%
102,061
65.4
%
Private, available-for-sale, at fair value
20,607
13.2
%
21,284
13.6
%
Fixed maturities, trading, at fair value
575
0.4
%
551
0.3
%
Assets supporting experience-rated contractholder liabilities, at fair value
4,781
3.1
%
4,842
3.1
%
Equity securities, at fair value
1,636
1.1
%
1,652
1.1
%
Commercial mortgage and other loans, at book value, net of allowance
14,247
9.2
%
14,487
9.3
%
Policy loans, at outstanding balance
2,698
1.7
%
2,708
1.7
%
Other invested assets, net of allowance (3)
6,573
4.2
%
6,357
4.1
%
Short-term investments, net of allowance
2,698
1.7
%
2,166
1.4
%
Total
155,592
100.0
%
156,108
100.0
%
March 31, 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
113,759
45.9
%
112,735
46.1
%
Private, available-for-sale, at fair value
59,087
23.8
%
59,350
24.3
%
Fixed maturities, trading, at fair value
4,524
1.8
%
4,267
1.7
%
Assets supporting experience-rated contractholder liabilities, at fair value
—
0.0
%
—
0.0
%
Equity securities, at fair value
9,048
3.6
%
7,270
3.0
%
Commercial mortgage and other loans, at book value, net of allowance
42,189
17.0
%
41,708
17.1
%
Policy loans, at outstanding balance
4,105
1.7
%
4,033
1.6
%
Other invested assets, net of allowance (3)
11,478
4.6
%
11,327
4.6
%
Short-term investments, net of allowance
3,935
1.6
%
3,912
1.6
%
Total
248,125
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
First Quarter 2026
INVESTMENT RESULTS (1)
(in millions)
Three Months Ended March 31,
2026
2025
Investment Income
Realized Gains (Losses)
Investment Income
Realized Gains (Losses)
Yield (2)
Amount
Yield (2)
Amount
General Account (3)
Fixed maturities (4)
4.63
%
3,702
(616)
4.38
%
3,313
40
Equity securities
2.33
%
57
—
2.10
%
37
—
Commercial mortgage and other loans
4.64
%
650
(25)
4.46
%
600
(50)
Policy loans
4.47
%
75
—
4.51
%
73
—
Short-term investments and cash equivalents
4.77
%
200
(7)
4.93
%
230
—
Gross investment income before investment expenses
4.58
%
4,684
(648)
4.38
%
4,253
(10)
Investment expenses
-0.17
%
(302)
—
-0.16
%
(283)
—
Subtotal
4.41
%
4,382
(648)
4.22
%
3,970
(10)
Other investments (4)
323
272
285
(296)
Investment results of other entities and operations (5)
49
40
32
23
Investment results of Funds Withheld (6)
381
—
350
(390)
Less: investment income related to adjusted operating income reconciling items
(127)
—
(118)
—
Total
5,008
(336)
4,519
(673)
________
(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
First Quarter 2026
INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS
(in millions)
Three Months Ended March 31,
2026
2025
Investment Income
Realized Gains (Losses)
Investment Income
Realized Gains (Losses)
Yield (1)
Amount
Yield (1)
Amount
Japanese Insurance Operations:
Fixed maturities (2)
3.41
%
1,201
(549)
3.18
%
1,094
111
Equity securities
2.45
%
10
—
2.14
%
9
—
Commercial mortgage and other loans
3.81
%
136
—
3.82
%
151
(6)
Policy loans
3.78
%
25
—
3.83
%
25
—
Short-term investments and cash equivalents
4.17
%
46
(2)
3.96
%
37
—
Gross investment income before investment expenses
3.46
%
1,418
(551)
3.26
%
1,316
105
Investment expenses
-0.12
%
(84)
—
-0.13
%
(82)
—
Subtotal
3.34
%
1,334
(551)
3.13
%
1,234
105
Other investments (2)
146
20
142
56
Total
1,480
(531)
1,376
161
__________
(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
First Quarter 2026
INVESTMENT RESULTS - EXCLUDING FUNDS WITHHELD AND JAPANESE INSURANCE OPERATIONS (1)
(in millions)
Three Months Ended March 31,
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)
5.62
%
2,501
(67)
5.41
%
2,219
(71)
Equity securities
2.31
%
47
—
2.09
%
28
—
Commercial mortgage and other loans
4.93
%
514
(25)
4.73
%
449
(44)
Policy loans
4.93
%
50
—
4.98
%
48
—
Short-term investments and cash equivalents
4.98
%
154
(5)
5.15
%
193
—
Gross investment income before investment expenses
5.34
%
3,266
(97)
5.19
%
2,937
(115)
Investment expenses
-0.20
%
(218)
—
-0.18
%
(201)
—
Subtotal
5.14
%
3,048
(97)
5.01
%
2,736
(115)
Other investments (4)
177
252
143
(352)
Total
3,225
155
2,879
(467)
__________
(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
First 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
Three Months Ended March 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
7,838
—
—
—
403
121
—
—
8,362
6,446
—
—
—
417
137
—
—
7,000
Policy charges and fee income
1,108
14
—
10
—
—
—
—
1,132
1,108
46
—
3
—
—
—
—
1,157
Net investment income
5,008
1
—
—
530
126
—
—
5,665
4,519
(3)
—
—
493
121
—
—
5,130
Realized investment gains (losses), net (3)
(194)
(164)
—
—
(28)
22
—
—
(364)
(157)
(489)
—
—
(57)
(27)
—
—
(730)
Asset management fees, commissions and other income
1,474
(420)
—
—
(26)
48
(50)
—
1,026
1,496
(190)
—
—
(33)
23
(32)
—
1,264
Change in value of market risk benefits, net of related hedging gains (losses)
—
—
(295)
—
—
—
—
—
(295)
—
—
(351)
—
—
—
—
—
(351)
Total revenues
15,234
(569)
(295)
10
879
317
(50)
—
15,526
13,412
(636)
(351)
3
820
254
(32)
—
13,470
Benefits and expenses:
Insurance and annuity benefits
8,713
67
—
3
788
194
—
—
9,765
7,344
2
—
2
729
208
—
—
8,285
Change in estimates of liability for future policy benefits
41
1
—
(8)
—
5
—
—
39
(14)
3
—
(38)
—
(1)
—
—
(50)
Interest credited to policyholders' account balances
1,304
(239)
—
—
28
16
—
—
1,109
1,083
(325)
—
—
28
39
—
—
825
Interest expense
539
—
—
—
(2)
—
—
—
537
522
—
—
—
(2)
2
—
—
522
Deferral of acquisition costs
(624)
—
—
—
—
—
—
—
(624)
(684)
(98)
—
—
—
—
—
—
(782)
Amortization of acquisition costs
397
11
—
—
3
—
—
—
411
376
28
—
—
3
—
—
—
407
Operating expenses
1,729
—
—
—
70
32
—
3
1,834
1,624
—
—
—
65
43
—
(28)
1,704
Variable expenses
1,509
212
—
—
3
6
(8)
—
1,722
1,641
—
—
—
19
14
(35)
—
1,639
Total benefits and expenses
13,608
52
—
(5)
890
253
(8)
3
14,793
11,892
(390)
—
(36)
842
305
(35)
(28)
12,550
__________
(1) See page 34 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 and $(55) million for three months ended March 31, 2026 and March 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 $120 million and $(104) million and certain derivatives of $(16) million and $5 million for three months ended March 31, 2026 and March 31, 2025, respectively.
Page 31
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First 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, 2025
Three Months Ended September 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
6,426
—
—
(1)
445
112
—
—
6,982
8,691
—
—
1
394
127
—
—
9,213
Policy charges and fee income
1,070
174
—
5
—
—
—
—
1,249
1,126
25
—
(18)
—
—
—
—
1,133
Net investment income
4,600
(3)
—
—
511
118
—
—
5,226
4,872
(3)
—
—
528
131
—
—
5,528
Realized investment gains (losses), net (3)
(148)
(1,302)
—
—
(198)
(51)
—
—
(1,699)
(119)
(900)
—
—
3
(10)
—
—
(1,026)
Asset management fees, commissions and other income
1,558
609
—
—
189
89
(51)
—
2,394
1,669
829
—
—
133
151
(66)
—
2,716
Change in value of market risk benefits, net of related hedging gains (losses)
—
—
(426)
—
—
—
—
—
(426)
—
—
324
—
—
—
—
—
324
Total revenues
13,506
(522)
(426)
4
947
268
(51)
—
13,726
16,239
(49)
324
(17)
1,058
399
(66)
—
17,888
Benefits and expenses:
Insurance and annuity benefits
7,195
200
—
(5)
864
186
—
—
8,440
9,485
(85)
—
(1)
949
200
—
—
10,548
Change in estimates of liability for future policy benefits
100
(254)
—
(33)
—
12
—
—
(175)
96
168
—
20
—
12
—
—
296
Interest credited to policyholders' account balances
1,135
(64)
—
—
29
38
—
—
1,138
1,215
300
—
—
27
40
—
—
1,582
Interest expense
526
—
—
—
(1)
1
—
—
526
531
—
—
—
(3)
2
—
—
530
Deferral of acquisition costs
(689)
—
—
—
—
—
—
—
(689)
(699)
—
—
—
—
—
—
—
(699)
Amortization of acquisition costs
392
12
—
—
3
—
—
—
407
395
4
—
—
4
—
—
—
403
Operating expenses
1,634
—
—
—
69
14
—
—
1,717
1,639
—
—
—
69
19
—
1
1,728
Variable expenses
1,548
100
—
—
1
5
(33)
1
1,622
1,630
138
—
—
2
3
(55)
—
1,718
Total benefits and expenses
11,841
(6)
—
(38)
965
256
(33)
1
12,986
14,292
525
—
19
1,048
276
(55)
1
16,106
__________
(1) See page 34 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 $(27) million and $(91) million for three months ended June 30, 2025 and September 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 $(47) million and $(129) million and certain derivatives of $55 million and $(15) million for three months ended June 30, 2025 and September 30, 2025, respectively.
Page 32
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended December 31, 2025
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
7,028
—
—
(1)
463
112
—
—
7,602
Policy charges and fee income
1,106
23
—
(2)
—
—
—
—
1,127
Net investment income
4,947
(3)
—
—
524
121
—
—
5,589
Realized investment gains (losses), net (3)
(174)
(360)
—
—
(121)
(22)
—
—
(677)
Asset management fees, commissions and other income
1,613
356
—
—
60
79
(37)
—
2,071
Change in value of market risk benefits, net of related hedging gains (losses)
—
—
(22)
—
—
—
—
—
(22)
Total revenues
14,520
16
(22)
(3)
926
290
(37)
—
15,690
Benefits and expenses:
Insurance and annuity benefits
7,936
30
—
(1)
864
198
—
—
9,027
Change in estimates of liability for future policy benefits
50
(2)
—
(25)
—
9
—
—
32
Interest credited to policyholders' account balances
1,271
196
—
—
29
27
—
—
1,523
Interest expense
533
—
—
—
(2)
2
—
—
533
Deferral of acquisition costs
(681)
—
—
—
—
—
—
—
(681)
Amortization of acquisition costs
408
7
—
—
3
—
—
—
418
Operating expenses
1,876
—
—
—
67
23
—
—
1,966
Variable expenses
1,622
67
—
—
3
8
(43)
1
1,658
Total benefits and expenses
13,015
298
—
(26)
964
267
(43)
1
14,476
__________
(1) See page 34 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 $(49) million for three months ended December 31, 2025. Also includes changes in the value of the funds withheld and modified coinsurance embedded derivatives associated with available-for-sale securities of $27 million and certain derivatives of $3 million for three months ended December 31, 2025.
Page 33
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First 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 international 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.
Page 34
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First 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 and Assurance IQ businesses. 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. International Life Planners:
Captive insurance Advisors from Prudential of Japan and Brazil.
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.
Page 35
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First 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 - International 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.
Page 36
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2026
RATINGS AND INVESTOR INFORMATION
FINANCIAL STRENGTH RATINGS
as of May 5, 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 May 5, 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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Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | 0 | 0 |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | 0 |
| Recession recession, downturn, contraction, slowdown | 0 | 0 | 0 |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | 0 | 0 |
| Buybacks share repurchase, buyback program | 1 | — | 1 |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Not placed in the text
These quotes are stored with a score, but no passage here matches them closely enough to highlight. Rather than point at the wrong passage, they are listed as stored.
Theme · PGIM growth
“Adjusted operating income (loss) before income taxes: PGIM 190 million, up 22% from 156 million.”
Theme · U.S. Businesses stability
“Adjusted operating income (loss) before income taxes: U.S. Businesses 956 million, up 3% from 931 million.”
Theme · Investment income
“Net investment income: 5,008 million, up 11% from 4,519 million.”
Theme · International decline
“Adjusted operating income (loss) before income taxes: International Businesses 810 million, down 4% from 848 million.”
Theme · Net income pressure
“Income (loss) attributable to Prudential Financial, Inc.: 597 million, down 16% from 707 million.”
Theme · Share repurchases
“Share repurchases: 250 million, unchanged from prior quarter.”
Theme · Retirement sales
“Total sales and additions: 7,369 million, down from 10,524 million prior year.”
Source: SEC EDGAR · public domain · Highlights by Palanor