EX-99.12exhibit991-4q25qfsrestatem.htmEX-99.1 Document
Table of Contents
Exhibit 99.1
Prudential Financial, Inc. (PRU)
As Adjusted for Segmentation Changes
Quarterly Financial Supplement
Fourth Quarter 2025
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
Fourth Quarter 2025
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
35
RATINGS AND INVESTOR INFORMATION
38
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
First Quarter 2026 Resegmentation
Effective January 1, 2026, the Company made the following segment reporting changes to isolate the impacts of certain discontinued products that were previously commingled with the results of actively sold products that more closely reflect the Company’s current strategic focus. These changes are consistent with the Company’s recent organizational changes and strategy and reflect how the chief operating decision maker assesses performance and allocates resources:
“U.S. Legacy Products” segment: (i) Traditional Variable Annuities with guaranteed living benefit riders and certain other annuity products, previously included in the Individual Retirement Strategies segment, and (ii) Guaranteed Universal Life policies, previously included in the Individual Life segment, have been combined into a new reportable segment named “U.S. Legacy Products.” This segment represents run-off blocks of business consisting of products that are no longer being sold in U.S. markets and will be managed with a focus on reducing risk and optimizing value.
“Retirement” segment: The blocks of business in the Individual Retirement Strategies segment that were not moved into the U.S. Legacy Products segment, discussed above, consisting primarily of registered index-linked annuity and fixed annuity products, and the products previously included in the Institutional Retirement Strategies segment have been combined into a new reportable segment named “Retirement.” This combined segment better represents the Company’s strategic management, growth trajectory, and resource allocation policies.
“Individual Life” segment: There were no other impacts to this segment other than the transfer of the Guaranteed Universal Life policies, discussed above. The remaining blocks of business contained within this segment primarily consist of term, indexed universal life, and variable universal life products.
The updates made for these revisions are highlighted in yellow throughout Exhibit 99.1.
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
FINANCIAL METRICS SUMMARY
(in millions, except per share and return on equity data)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
% change
Earnings
Adjusted operating income (loss) before income taxes:
PGIM
156
229
244
249
875
878
—%
U.S. Businesses
931
955
1,149
1,051
3,728
4,086
10%
International Businesses
848
761
881
757
3,106
3,247
5%
Corporate and Other
(415)
(280)
(327)
(552)
(1,783)
(1,574)
12%
Total adjusted operating income (loss) before income taxes
1,520
1,665
1,947
1,505
5,926
6,637
12%
Income taxes, applicable to adjusted operating income
332
381
426
337
1,338
1,476
10%
After-tax adjusted operating income (loss)
1,188
1,284
1,521
1,168
4,588
5,161
12%
Income (loss) attributable to Prudential Financial, Inc.
707
533
1,431
905
2,727
3,576
31%
Return on Equity
Operating Return on Average Equity (based on adjusted operating income) (1)
13.8
%
14.9
%
17.5
%
13.3
%
13.1
%
14.9
%
Return on Average Equity (based on net income (loss))
9.8
%
7.1
%
18.3
%
11.2
%
9.6
%
11.7
%
Distributions to Shareholders
Dividends paid
486
485
481
480
1,892
1,932
2%
Share repurchases
250
250
250
250
1,000
1,000
—%
Total capital returned
736
735
731
730
2,892
2,932
1%
Per Share Data
Net income (loss) - diluted
1.96
1.48
4.01
2.55
7.50
9.99
33%
Adjusted Operating Income - diluted
3.29
3.58
4.26
3.30
12.62
14.43
14%
Shareholder dividends
1.35
1.35
1.35
1.35
5.20
5.40
4%
GAAP book value - diluted
83.59
85.98
90.69
92.05
Adjusted book value - diluted (2)
96.37
96.41
99.25
100.17
Shares Outstanding
Weighted average number of common shares - basic
354.3
353.1
351.1
349.0
357.5
351.8
-2%
Weighted average number of common shares - diluted
356.1
354.9
353.0
350.9
359.3
353.7
-2%
End of period common shares - basic
354.0
351.9
349.9
347.9
End of period common shares - diluted
357.5
355.7
353.9
352.4
__________
(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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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
Earnings per share of Common Stock (diluted):
After-tax adjusted operating income (loss)
3.29
3.58
4.26
3.30
12.62
14.43
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments
(0.69)
(1.45)
(1.63)
(0.80)
(5.98)
(4.57)
Change in value of market risk benefits, net of related hedging gains (losses)
(0.99)
(1.20)
0.92
(0.06)
(1.10)
(1.34)
Market experience updates
0.11
0.12
(0.10)
0.07
(0.14)
0.19
Divested and Run-off Businesses:
Closed Block division
(0.06)
(0.05)
0.03
(0.11)
(0.31)
(0.19)
Other Divested and Run-off Businesses
(0.14)
0.03
0.35
0.07
0.08
0.30
Difference in earnings allocated to participating unvested share-based payment awards
0.02
0.02
0.01
—
0.06
0.05
Other adjustments (1)
0.08
—
—
—
(0.05)
0.07
Total reconciling items, before income taxes
(1.67)
(2.53)
(0.42)
(0.83)
(7.44)
(5.49)
Income taxes, not applicable to adjusted operating income
(0.34)
(0.43)
(0.17)
(0.08)
(2.32)
(1.05)
Total reconciling items, after income taxes
(1.33)
(2.10)
(0.25)
(0.75)
(5.12)
(4.44)
Net income (loss) attributable to Prudential Financial, Inc.
1.96
1.48
4.01
2.55
7.50
9.99
Weighted average number of outstanding common shares - basic
354.3
353.1
351.1
349.0
357.5
351.8
Weighted average number of outstanding common shares - diluted
356.1
354.9
353.0
350.9
359.3
353.7
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc.
707
533
1,431
905
2,727
3,576
Less: Earnings allocated to participating unvested share-based payment awards
10
6
15
10
32
41
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation
697
527
1,416
895
2,695
3,535
After-tax adjusted operating income (loss)
1,188
1,284
1,521
1,168
4,588
5,161
Less: Earnings allocated to participating unvested share-based payment awards
16
13
17
11
53
57
After-tax adjusted operating income for earnings per share of Common Stock calculation
1,172
1,271
1,504
1,157
4,535
5,104
___________
(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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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
OTHER FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2024
2025
4Q
1Q
2Q
3Q
4Q
Capitalization Data (1):
Senior debt:
Short-term debt
953
1,406
1,373
1,386
1,443
Long-term debt
10,600
10,949
11,056
11,202
11,261
Junior subordinated long-term debt
8,587
8,591
7,595
7,595
7,595
Prudential Financial, Inc. Equity:
GAAP book value (total PFI equity) at end of period
27,872
29,883
30,582
32,094
32,438
Less: Accumulated other comprehensive income (AOCI)
(6,711)
(4,741)
(3,921)
(3,175)
(3,077)
GAAP book value excluding AOCI (2)
34,583
34,624
34,503
35,269
35,515
Less: Cumulative change in fair value of funds withheld embedded derivatives (3)
141
62
67
(47)
(24)
Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses) (4)
34
108
144
192
238
Adjusted book value
34,408
34,454
34,292
35,124
35,301
Book Value per Share of Common Stock:
GAAP book value per common share - diluted
77.62
83.59
85.98
90.69
92.05
GAAP book value excluding AOCI per share - diluted (2)
96.30
96.85
97.00
99.66
100.78
Adjusted book value per common share - diluted
95.82
96.37
96.41
99.25
100.17
End of period number of common shares - diluted
359.1
357.5
355.7
353.9
352.4
Common Stock Price Range (based on closing price):
High
129.52
122.33
112.71
109.89
117.60
Low
114.59
105.04
95.12
100.68
99.13
Close
118.53
111.68
107.44
103.74
112.88
Common Stock market capitalization (1)
42,031
39,535
37,808
36,299
39,271
__________
(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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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
OPERATIONS HIGHLIGHTS
2024
2025
4Q
1Q
2Q
3Q
4Q
Assets Under Management and Administration (in billions) (1)(2):
PGIM:
Institutional customers - Third Party
601.1
620.2
647.6
654.9
652.0
Retail customers - Third Party
244.9
240.6
256.7
265.2
267.0
Affiliated
529.2
524.5
536.4
549.9
547.1
Total PGIM
1,375.2
1,385.3
1,440.7
1,470.0
1,466.1
U.S. Businesses
112.6
111.3
113.8
115.9
116.9
International Businesses
18.4
19.3
19.4
19.8
19.7
Corporate and Other
6.2
6.2
6.4
6.3
6.4
Total assets under management
1,512.4
1,522.1
1,580.3
1,612.0
1,609.1
Assets under administration
173.5
180.4
193.2
194.6
195.1
Total assets under management and administration
1,685.9
1,702.5
1,773.5
1,806.6
1,804.2
Distribution Representatives (1):
Prudential Advisors
2,794
2,906
2,985
3,034
3,061
Life Planners
6,035
6,175
6,161
6,141
6,235
Life Consultants
6,844
6,840
6,822
6,940
6,983
__________
(1) As of end of period.
(2) At fair market value.
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
COMBINED STATEMENTS OF OPERATIONS
(in millions)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
% change
Revenues (1):
Premiums
6,446
6,426
8,691
7,028
40,745
28,591
-30%
Policy charges and fee income
1,108
1,070
1,126
1,106
4,277
4,410
3%
Net investment income
4,519
4,600
4,872
4,947
17,375
18,938
9%
Asset management fees, commissions and other income
1,339
1,410
1,550
1,439
5,656
5,738
1%
Total revenues
13,412
13,506
16,239
14,520
68,053
57,677
-15%
Benefits and expenses (1):
Insurance and annuity benefits
7,344
7,195
9,485
7,936
44,075
31,960
-27%
Change in estimates of liability for future policy benefits
(14)
100
96
50
108
232
115%
Interest credited to policyholders' account balances
1,083
1,135
1,215
1,271
3,949
4,704
19%
Interest expense
522
526
531
533
2,019
2,112
5%
Deferral of acquisition costs
(684)
(689)
(699)
(681)
(2,601)
(2,753)
-6%
Amortization of acquisition costs
376
392
395
408
1,445
1,571
9%
Operating expenses
1,624
1,634
1,639
1,876
6,870
6,773
-1%
Variable expenses
1,641
1,548
1,630
1,622
6,262
6,441
3%
Total benefits and expenses
11,892
11,841
14,292
13,015
62,127
51,040
-18%
Adjusted operating income (loss) before income taxes
1,520
1,665
1,947
1,505
5,926
6,637
12%
Income taxes, applicable to adjusted operating income
332
381
426
337
1,338
1,476
10%
After-tax adjusted operating income
1,188
1,284
1,521
1,168
4,588
5,161
12%
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments
(246)
(516)
(574)
(282)
(2,150)
(1,618)
25%
Change in value of market risk benefits, net of related hedging gains (losses)
(351)
(426)
324
(22)
(397)
(475)
-20%
Market experience updates
39
42
(36)
23
(52)
68
231%
Divested and Run-off Businesses:
Closed Block division
(22)
(18)
10
(38)
(113)
(68)
40%
Other Divested and Run-off Businesses
(51)
12
123
23
30
107
257%
Equity in earnings of joint ventures and other operating entities, and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
3
(18)
(11)
6
(16)
(20)
-25%
Other adjustments (2)
28
(1)
(1)
(1)
(19)
25
232%
Total reconciling items, before income taxes
(600)
(925)
(165)
(291)
(2,717)
(1,981)
27%
Income taxes, not applicable to adjusted operating income
(125)
(186)
(44)
(68)
(831)
(423)
49%
Total reconciling items, after income taxes
(475)
(739)
(121)
(223)
(1,886)
(1,558)
17%
Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities
920
740
1,782
1,214
3,209
4,656
45%
Income tax expense (benefit)
207
195
382
269
507
1,053
108%
Income (loss) before equity in earnings of joint ventures and other operating entities
713
545
1,400
945
2,702
3,603
33%
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)
25
(27)
-208%
Income (loss) attributable to Prudential Financial, Inc.
707
533
1,431
905
2,727
3,576
31%
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests
35
33
52
36
119
156
31%
Net income (loss)
742
566
1,483
941
2,846
3,732
31%
Less: Income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests
35
33
52
36
119
156
31%
Net income (loss) attributable to Prudential Financial, Inc.
707
533
1,431
905
2,727
3,576
31%
____________
(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 31-34 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
Fourth Quarter 2025
CONSOLIDATED BALANCE SHEETS
(in millions)
12/31/2024
03/31/2025
06/30/2025
09/30/2025
12/31/2025
Assets:
Investments:
Fixed maturities, available-for-sale, at fair value
311,570
315,914
328,302
335,414
331,455
Fixed maturities, trading, at fair value
12,530
13,278
14,020
14,575
14,869
Assets supporting experience-rated contractholder liabilities, at fair value
3,707
3,769
4,282
4,648
4,842
Equity securities, at fair value
9,417
8,720
7,434
8,794
10,972
Commercial mortgage and other loans
62,341
62,694
62,966
64,813
64,715
Policy loans
9,795
9,876
9,946
9,951
9,958
Other invested assets
26,351
26,739
27,256
27,665
27,294
Short-term investments
9,069
8,716
6,375
6,248
6,414
Total investments
444,780
449,706
460,581
472,108
470,519
Cash and cash equivalents
18,497
16,063
16,638
17,469
19,712
Accrued investment income
3,441
3,383
3,560
3,581
3,636
Deferred policy acquisition costs
20,448
20,790
21,222
21,468
21,530
Value of business acquired
435
446
450
430
397
Market risk benefit assets
2,331
2,139
2,188
2,252
2,330
Reinsurance recoverables and deposit receivables
37,680
43,982
44,152
44,947
44,077
Income tax assets
866
300
839
240
279
Other assets
13,737
14,262
14,561
15,267
15,009
Separate account assets
193,372
188,191
194,761
198,540
196,251
Total assets
735,587
739,262
758,952
776,302
773,740
Liabilities:
Future policy benefits
268,912
269,969
270,133
272,553
266,914
Policyholders' account balances
166,254
170,278
180,931
188,657
191,307
Market risk benefit liabilities
4,455
5,021
4,859
4,771
4,623
Reinsurance and funds withheld payables
17,084
17,347
17,126
17,874
18,844
Securities sold under agreements to repurchase
6,796
7,549
8,205
9,937
9,598
Cash collateral for loaned securities
9,621
9,507
9,167
8,597
8,700
Income tax liabilities
—
—
—
—
—
Short-term debt
953
1,406
1,373
1,386
1,443
Long-term debt
19,187
19,540
18,651
18,797
18,856
Other liabilities
17,397
16,789
18,872
18,507
18,964
Notes issued by consolidated variable interest entities
1,430
1,443
1,758
1,868
2,659
Separate account liabilities
193,372
188,191
194,761
198,540
196,251
Total liabilities
705,461
707,040
725,836
741,487
738,159
Mezzanine Equity:
Redeemable noncontrolling interests
1,939
2,019
2,213
2,358
2,794
Total mezzanine equity
1,939
2,019
2,213
2,358
2,794
Equity:
Accumulated other comprehensive income (loss)
(6,711)
(4,741)
(3,921)
(3,175)
(3,077)
Other equity (1)
34,583
34,624
34,503
35,269
35,515
Total Prudential Financial, Inc. equity
27,872
29,883
30,582
32,094
32,438
Noncontrolling interests
315
320
321
363
349
Total equity
28,187
30,203
30,903
32,457
32,787
Total liabilities, mezzanine equity and equity
735,587
739,262
758,952
776,302
773,740
____________
(1) Includes $(24) million, $(47) million, $67 million, $62 million and $141 million of cumulative change in fair value of funds withheld and modified coinsurance embedded derivatives as described on page 3, as of December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025 and December 31, 2024, respectively.
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
COMBINING BALANCE SHEETS
(in millions)
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
470,519
46,523
423,996
3,652
228,588
158,699
33,057
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
468,937
187,770
29,835
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
63,388
3,942
59,446
3,329
31,421
8,781
15,915
Separate account liabilities
196,251
—
196,251
29,278
171,022
—
(4,049)
Total liabilities
738,159
49,698
688,461
34,677
451,668
165,915
36,201
Mezzanine Equity:
Redeemable noncontrolling interests
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
468,937
187,770
29,835
As of December 31, 2024
Consolidated PFI
Closed Block Division
PFI Excluding Closed Block Division
PGIM
U.S. Businesses
International Businesses
Corporate and Other
Assets:
Total investments
444,780
47,466
397,314
2,624
204,091
159,678
30,921
Deferred policy acquisition costs
20,448
156
20,292
—
11,551
9,304
(563)
Other assets
76,987
1,193
75,794
4,775
55,046
11,056
4,917
Separate account assets
193,372
—
193,372
28,645
168,299
—
(3,572)
Total assets
735,587
48,815
686,772
36,044
438,987
180,038
31,703
Liabilities:
Future policy benefits
268,912
42,464
226,448
—
118,110
99,699
8,639
Policyholders' account balances
166,254
4,359
161,895
—
102,940
54,855
4,100
Debt
20,140
—
20,140
1,593
4,869
129
13,549
Other liabilities
56,783
3,632
53,151
2,393
28,793
7,570
14,395
Separate account liabilities
193,372
—
193,372
28,645
168,299
—
(3,572)
Total liabilities
705,461
50,455
655,006
32,631
423,011
162,253
37,111
Mezzanine Equity:
Redeemable noncontrolling interest
1,939
—
1,939
543
—
—
1,396
Total mezzanine equity
1,939
—
1,939
543
—
—
1,396
Equity:
Accumulated other comprehensive income (loss)
(6,711)
(188)
(6,523)
(154)
(1,569)
(2,302)
(2,498)
Other equity (1)
34,583
(1,463)
36,046
2,883
17,465
20,057
(4,359)
Total Prudential Financial, Inc. equity
27,872
(1,651)
29,523
2,729
15,896
17,755
(6,857)
Noncontrolling interests
315
11
304
141
80
30
53
Total equity
28,187
(1,640)
29,827
2,870
15,976
17,785
(6,804)
Total liabilities, mezzanine equity and equity
735,587
48,815
686,772
36,044
438,987
180,038
31,703
____________
(1) Includes $(24) million and $141 million of cumulative change in fair value of funds withheld and modified coinsurance embedded derivatives as described on page 3, as of December 31, 2025 and December 31, 2024, respectively.
Page 7
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED
(in millions)
As of December 31, 2025
As of December 31, 2024
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
6,464
7,595
14,095
347
5,890
7,588
13,825
Operating Debt
1,374
4,359
—
5,733
521
4,355
999
5,875
Limited recourse and non-recourse borrowing
33
438
—
471
85
355
—
440
Total Debt
1,443
11,261
7,595
20,299
953
10,600
8,587
20,140
As of December 31, 2025
As of December 31, 2024
Prudential Financial, Inc.
The Prudential Insurance Company of America (1)(2)
Other Affiliates
Total Debt
Prudential Financial, Inc.
The Prudential Insurance Company of America (1)(2)
Other Affiliates
Total Debt
Borrowings by sources:
Capital Debt
14,055
—
40
14,095
13,438
347
40
13,825
Operating Debt
4,884
849
—
5,733
5,380
495
—
5,875
Limited recourse and non-recourse borrowing
—
33
438
471
—
85
355
440
Total Debt
18,939
882
478
20,299
18,818
927
395
20,140
__________
(1) Includes Prudential Funding, LLC.
(2) Capital Debt at The Prudential Insurance Company of America includes $0 million and $347 million of surplus notes as of December 31, 2025 and December 31, 2024, respectively.
Page 8
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
STATEMENTS OF OPERATIONS - PGIM
(in millions)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
% change
Revenues (1):
Premiums
—
—
—
—
—
—
—
Policy charges and fee income
—
—
—
—
—
—
—
Net investment income
20
59
54
48
15
181
1107%
Asset management fees, commissions and other income
965
984
1,041
1,060
4,077
4,050
-1%
Total revenues
985
1,043
1,095
1,108
4,092
4,231
3%
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
105
100
-5%
Deferral of acquisition costs
—
—
—
—
(1)
—
100%
Amortization of acquisition costs
—
—
—
—
2
—
-100%
Operating expenses
504
477
503
489
1,841
1,973
7%
Variable expenses
304
313
321
342
1,270
1,280
1%
Total benefits and expenses
829
814
851
859
3,217
3,353
4%
Adjusted operating income (loss) before income taxes
156
229
244
249
875
878
—%
Total revenues
985
1,043
1,095
1,108
4,092
4,231
3%
Less: Passthrough distribution revenue
21
20
21
21
88
83
-6%
Less: Revenue associated with consolidations
18
50
45
42
141
155
10%
Total adjusted revenues (2)
946
973
1,029
1,045
3,863
3,993
3%
Adjusted operating margin (2)(3)
16.5
%
23.5
%
23.7
%
23.8
%
22.7
%
22.0
%
__________
(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 22.5%, 22.3%, 22.0% and 15.8% for the three months ended December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively, and 20.8% and 21.4% for the twelve months ended December 31, 2025 and December 31, 2024, respectively.
Page 9
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
PGIM - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
% change
Supplementary Revenue Information (in millions):
Analysis of revenues by type:
Asset management fees
828
825
844
858
3,179
3,355
6%
Other related revenues (1)
38
82
93
107
430
320
-26%
Service, distribution and other revenues
119
136
158
143
483
556
15%
Total PGIM revenues
985
1,043
1,095
1,108
4,092
4,231
3%
Analysis of asset management fees by source:
Institutional customers - Third Party
387
387
395
399
1,484
1,568
6%
Retail customers - Third Party
225
219
231
236
868
911
5%
Affiliated
216
219
218
223
827
876
6%
Total asset management fees
828
825
844
858
3,179
3,355
6%
Supplementary Assets Under Management Information (at fair market value) (in billions):
December 31, 2025
Public Equity
Public Fixed Income
Real Estate
Private Credit and Other Alternatives
Multi-Asset
Total
Institutional customers - Third Party
76.4
468.4
69.8
36.0
1.4
652.0
Retail customers - Third Party
106.8
157.3
0.2
0.4
2.3
267.0
Affiliated
39.9
277.0
64.4
91.0
74.8
547.1
Total
223.1
902.7
134.4
127.4
78.5
1,466.1
December 31, 2024
Public Equity
Public Fixed Income
Real Estate
Private Credit and Other Alternatives
Multi-Asset
Total
Institutional customers - Third Party
73.8
426.3
66.6
33.0
1.4
601.1
Retail customers - Third Party
106.4
135.4
0.2
0.4
2.5
244.9
Affiliated
35.5
270.5
60.4
84.6
78.2
529.2
Total
215.7
832.2
127.2
118.0
82.1
1,375.2
__________
(1) Other related revenues, net of related expenses are $57 million, $64 million, $49 million and $19 million for the three months ended December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025, respectively, and $189 million and $203 million for the twelve months ended December 31, 2025 and December 31, 2024, respectively.
Page 10
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
PGIM - SUPPLEMENTARY ASSETS UNDER MANAGEMENT INFORMATION
(in billions)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
Institutional Customers - Third Party - Assets Under Management (at fair market value):
Beginning assets under management
601.1
620.2
647.6
654.9
562.7
601.1
Additions
23.8
22.1
18.8
20.6
101.4
85.3
Withdrawals
(16.2)
(19.5)
(18.5)
(25.0)
(79.7)
(79.2)
Net institutional additions (withdrawals), excluding realizations, distributions and money market activity
7.6
2.6
0.3
(4.4)
21.7
6.1
Realizations and distributions (1)
(4.2)
(2.3)
(4.0)
(3.1)
(9.5)
(13.6)
Change in market value
6.6
24.0
15.6
4.1
20.1
50.3
Net money market flows
1.7
0.8
(0.3)
0.5
(3.6)
2.7
Other (2)
7.4
2.3
(4.3)
—
9.7
5.4
Ending assets under management
620.2
647.6
654.9
652.0
601.1
652.0
Retail Customers - Third Party - Assets Under Management (at fair market value):
Beginning assets under management
244.9
240.6
256.7
265.2
215.5
244.9
Additions
17.7
16.0
16.2
21.5
65.6
71.4
Withdrawals
(17.9)
(18.8)
(15.9)
(22.8)
(64.2)
(75.4)
Net retail additions (withdrawals), excluding money market activity
(0.2)
(2.8)
0.3
(1.3)
1.4
(4.0)
Change in market value
(5.5)
18.6
9.2
2.7
29.7
25.0
Net money market flows
1.8
0.5
0.7
0.7
1.7
3.7
Other (2)
(0.4)
(0.2)
(1.7)
(0.3)
(3.4)
(2.6)
Ending assets under management
240.6
256.7
265.2
267.0
244.9
267.0
Affiliated - Assets Under Management (at fair market value):
Beginning assets under management
529.2
524.5
536.4
549.9
519.9
529.2
Additions
20.6
19.8
15.8
17.3
125.4
73.5
Withdrawals
(20.7)
(19.2)
(14.0)
(21.2)
(100.8)
(75.1)
Net affiliated additions (withdrawals), excluding realizations, distributions and money market activity
(0.1)
0.6
1.8
(3.9)
24.6
(1.6)
Realizations and distributions (1)
(0.1)
—
(0.6)
(0.1)
(0.4)
(0.8)
Change in market value
3.9
10.9
13.2
2.8
10.8
30.8
Net money market flows
(5.3)
(2.1)
—
1.5
(4.6)
(5.9)
Other (2)
(3.1)
2.5
(0.9)
(3.1)
(21.1)
(4.6)
Ending assets under management
524.5
536.4
549.9
547.1
529.2
547.1
__________
(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
Fourth Quarter 2025
COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES
(in millions)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
% change
Revenues (1):
Premiums
3,398
3,724
5,897
4,401
29,110
17,420
-40%
Policy charges and fee income
1,035
993
1,046
1,016
4,010
4,090
2%
Net investment income
2,700
2,760
2,948
2,982
10,406
11,390
9%
Asset management fees, commissions and other income
573
531
552
548
2,423
2,204
-9%
Total revenues
7,706
8,008
10,443
8,947
45,949
35,104
-24%
Benefits and expenses (1):
Insurance and annuity benefits
4,563
4,750
6,928
5,503
33,826
21,744
-36%
Change in estimates of liability for future policy benefits
(11)
68
117
45
(273)
219
180%
Interest credited to policyholders' account balances
724
754
808
856
2,655
3,142
18%
Interest expense
295
286
291
299
1,246
1,171
-6%
Deferral of acquisition costs
(411)
(431)
(426)
(432)
(1,650)
(1,700)
-3%
Amortization of acquisition costs
227
233
234
244
853
938
10%
Operating expenses
529
583
500
521
2,133
2,133
—%
Variable expenses
859
810
842
860
3,431
3,371
-2%
Total benefits and expenses
6,775
7,053
9,294
7,896
42,221
31,018
-27%
Adjusted operating income (loss) before income taxes
931
955
1,149
1,051
3,728
4,086
10%
__________
(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
Fourth Quarter 2025
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT
(in millions)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
% change
Revenues (1):
Premiums (2)
1,746
2,127
4,290
2,832
22,963
10,995
-52%
Policy charges and fee income
30
25
31
28
96
114
19%
Net investment income
1,758
1,819
1,963
1,998
6,299
7,538
20%
Asset management fees, commissions and other income
131
105
121
129
572
486
-15%
Total revenues
3,665
4,076
6,405
4,987
29,930
19,133
-36%
Benefits and expenses (1):
Insurance and annuity benefits
2,440
2,809
4,889
3,524
25,768
13,662
-47%
Change in estimates of liability for future policy benefits
(25)
123
112
53
(363)
263
172%
Interest credited to policyholders' account balances
474
512
559
607
1,564
2,152
38%
Interest expense
15
9
7
12
22
43
95%
Deferral of acquisition costs
(208)
(206)
(181)
(166)
(718)
(761)
-6%
Amortization of acquisition costs
64
68
68
87
193
287
49%
Operating expenses
137
138
138
134
487
547
12%
Variable expenses
242
226
215
200
922
883
-4%
Total benefits and expenses
3,139
3,679
5,807
4,451
27,875
17,076
-39%
Adjusted operating income (loss) before income taxes
526
397
598
536
2,055
2,057
—%
__________
(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 $1.0 billion, $2.4 billion, $0.2 billion and $0.0 billion for the three months ended December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively, and $3.7 billion and $16.4 billion for the twelve months ended December 31, 2025 and December 31, 2024, respectively.
Page 13
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
U.S. BUSINESSES - RETIREMENT - SALES RESULTS AND ACCOUNT VALUES
(in millions)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
Sales and Additions:
Retail annuities (1)
3,473
3,135
3,377
3,574
14,036
13,559
Longevity reinsurance (2)
4,922
5,581
1,476
80
9,977
12,059
Fee-based stable value
1,081
1,048
551
1,086
5,774
3,766
Pension risk transfer and other (3)
1,048
2,225
4,326
2,520
20,580
10,119
Total
10,524
11,989
9,730
7,260
50,367
39,503
Account Value:
Beginning account value, gross
333,243
340,617
359,635
365,143
295,978
333,243
Sales and additions
10,524
11,989
9,730
7,260
50,367
39,503
Withdrawals and benefits
(7,292)
(6,188)
(7,223)
(7,682)
(27,237)
(28,385)
Net flows
3,232
5,801
2,507
(422)
23,130
11,118
Change in market value, interest credited and policy charges
1,627
5,525
6,207
4,190
15,181
17,549
Other (4)
2,515
7,692
(3,206)
1,127
(1,046)
8,128
Ending account value, gross
340,617
359,635
365,143
370,038
333,243
370,038
Reinsurance ceded
(12,096)
(11,579)
(11,987)
(12,888)
(11,766)
(12,888)
Ending account value, net
328,521
348,056
353,156
357,150
321,477
357,150
Amounts included in net flows above:
Retail annuities (1)
2,823
2,472
2,614
2,785
12,126
10,694
Longevity reinsurance (2)
3,385
3,873
(311)
(1,706)
4,147
5,241
Fee-based stable value
(883)
(25)
(1,049)
(1,191)
(3,188)
(3,148)
Pension risk transfer and other (3)
(2,093)
(519)
1,253
(310)
10,045
(1,669)
Total
3,232
5,801
2,507
(422)
23,130
11,118
Amounts included in ending account value, net above:
Retail annuities (1)
43,543
49,649
54,553
57,532
42,286
57,532
Longevity reinsurance (2)
113,480
125,534
122,682
123,120
106,877
123,120
Fee-based stable value
66,947
67,362
67,727
67,763
66,899
67,763
Pension risk transfer and other (3)
104,551
105,511
108,194
108,735
105,415
108,735
Total
328,521
348,056
353,156
357,150
321,477
357,150
__________
(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
Fourth Quarter 2025
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - GROUP INSURANCE
(in millions)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
% change
Revenues (1):
Premiums
1,396
1,349
1,353
1,321
5,129
5,419
6%
Policy charges and fee income
197
184
183
164
678
728
7%
Net investment income
134
133
138
138
530
543
2%
Asset management fees, commissions and other income
21
21
20
22
90
84
-7%
Total revenues
1,748
1,687
1,694
1,645
6,427
6,774
5%
Benefits and expenses (1):
Insurance and annuity benefits
1,296
1,230
1,272
1,224
4,801
5,022
5%
Change in estimates of liability for future policy benefits
—
—
—
—
—
—
—
Interest credited to policyholders' account balances
35
32
33
37
149
137
-8%
Interest expense
5
5
7
4
11
21
91%
Deferral of acquisition costs
—
(4)
—
—
(28)
(4)
86%
Amortization of acquisition costs
2
4
2
1
6
9
50%
Operating expenses
194
186
181
190
734
751
2%
Variable expenses
127
109
109
112
440
457
4%
Total benefits and expenses
1,659
1,562
1,604
1,568
6,113
6,393
5%
Adjusted operating income (loss) before income taxes
89
125
90
77
314
381
21%
__________
(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
Fourth Quarter 2025
U.S. BUSINESSES - GROUP INSURANCE SUPPLEMENTARY INFORMATION
(dollar amounts in millions, or as otherwise noted)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
Annualized New Business Premiums:
Group life
225
35
36
29
289
325
Group disability
175
42
42
27
261
286
Total
400
77
78
56
550
611
Future Policy Benefits (1):
Group life
2,422
2,396
2,334
2,306
Group disability
3,283
3,316
3,345
3,398
Total
5,705
5,712
5,679
5,704
Policyholders' Account Balances (1):
Group life
4,519
4,460
4,503
4,732
Group disability
117
104
99
100
Total
4,636
4,564
4,602
4,832
Separate Account Liabilities (1):
Group life
25,547
26,364
26,988
26,916
Group Life Insurance:
Gross premiums, policy charges and fee income (2)
1,196
1,195
1,155
1,159
4,526
4,705
Earned premiums
996
935
952
916
3,615
3,799
Earned policy charges and fee income
171
156
154
137
577
618
Benefits ratio (3)
87.1
%
83.1
%
84.1
%
81.3
%
86.9
%
84.0
%
Administrative expense ratio
10.8
%
11.5
%
10.5
%
11.7
%
11.3
%
11.1
%
Persistency ratio
97.0
%
96.8
%
96.5
%
96.1
%
Group Disability Insurance:
Gross premiums, policy charges and fee income (2)
429
447
434
432
1,639
1,742
Earned premiums
400
414
401
405
1,514
1,620
Earned policy charges and fee income
26
28
29
27
101
110
Benefits ratio (3)
65.6
%
75.3
%
79.7
%
85.3
%
73.3
%
76.5
%
Administrative expense ratio
25.8
%
24.8
%
24.0
%
24.9
%
25.0
%
24.9
%
Persistency ratio
95.3
%
94.1
%
92.9
%
91.8
%
Total Group Insurance:
Benefits ratio (3)
81.3
%
80.9
%
82.8
%
82.5
%
83.1
%
81.9
%
Administrative expense ratio
14.8
%
15.2
%
14.2
%
15.5
%
15.0
%
14.9
%
Net face amount of policies in force (in billions) (4)
2,127
2,118
2,118
2,117
__________
(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. Benefits ratios including these impacts for Group Life, Group Disability, and Total Group Insurance are 83.8%, 76.4%, 81.7% and 86.9%, 71.8%, 82.7% for the twelve months ended December 31, 2025 and December 31, 2024, respectively.
(4) At end of period; net of reinsurance.
Page 16
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - INDIVIDUAL LIFE
(in millions)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
% change
Revenues (1):
Premiums
237
232
236
231
957
936
-2%
Policy charges and fee income
430
354
454
445
1,620
1,683
4%
Net investment income
360
348
371
358
1,392
1,437
3%
Asset management fees, commissions and other income
84
80
82
90
296
336
14%
Total revenues
1,111
1,014
1,143
1,124
4,265
4,392
3%
Benefits and expenses (1):
Insurance and annuity benefits
522
427
482
422
1,910
1,853
-3%
Change in estimates of liability for future policy benefits
7
(38)
(5)
(3)
44
(39)
-189%
Interest credited to policyholders' account balances
146
143
153
149
586
591
1%
Interest expense
111
102
104
105
366
422
15%
Deferral of acquisition costs
(190)
(209)
(236)
(250)
(855)
(885)
-4%
Amortization of acquisition costs
106
104
105
106
413
421
2%
Operating expenses
109
156
105
104
453
474
5%
Variable expenses
248
247
282
305
1,048
1,082
3%
Total benefits and expenses
1,059
932
990
938
3,965
3,919
-1%
Adjusted operating income (loss) before income taxes
52
82
153
186
300
473
58%
__________
(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
Fourth Quarter 2025
U.S. BUSINESSES - INDIVIDUAL LIFE SUPPLEMENTARY INFORMATION
(in millions, or as otherwise noted)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
ANNUALIZED NEW BUSINESS PREMIUMS (1):
Term life
32
39
37
36
134
144
Universal life
18
18
24
21
59
81
Variable life
154
160
186
201
687
701
Total
204
217
247
258
880
926
ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):
Prudential Advisors
38
43
48
49
167
178
Third party distribution
166
174
199
209
713
748
Total
204
217
247
258
880
926
ACCOUNT VALUE ACTIVITY:
Policyholders' Account Balances (2):
Beginning account balance, gross
19,161
19,289
19,679
19,940
18,666
19,161
Premiums and deposits
347
346
349
361
1,090
1,403
Surrenders and withdrawals
(417)
(467)
(419)
(557)
(1,547)
(1,860)
Net sales (redemptions)
(70)
(121)
(70)
(196)
(457)
(457)
Benefit payments
(31)
(27)
(31)
53
(56)
(36)
Net flows
(101)
(148)
(101)
(143)
(513)
(493)
Interest credited and other
224
508
304
179
963
1,215
Net transfers (to) from separate account
145
168
193
288
615
794
Policy charges
(140)
(138)
(135)
(146)
(570)
(559)
Ending account balance, gross
19,289
19,679
19,940
20,118
19,161
20,118
Reinsurance ceded
—
—
—
—
—
—
Ending account balance, net
19,289
19,679
19,940
20,118
19,161
20,118
Separate Account Liabilities:
Beginning account balance
54,803
53,323
57,995
61,376
46,453
54,803
Premiums and deposits
963
1,084
1,117
1,293
3,895
4,457
Surrenders and withdrawals
(326)
(315)
(442)
(558)
(1,238)
(1,641)
Net sales (redemptions)
637
769
675
735
2,657
2,816
Benefit payments
(184)
(165)
(170)
(244)
(651)
(763)
Net flows
453
604
505
491
2,006
2,053
Change in market value, interest credited and other
(1,414)
4,608
3,450
1,398
8,390
8,042
Net transfers (to) from general account
(145)
(168)
(193)
(288)
(615)
(794)
Policy charges
(374)
(372)
(381)
(383)
(1,431)
(1,510)
Ending account balance
53,323
57,995
61,376
62,594
54,803
62,594
NET FACE AMOUNT IN FORCE (in billions) (3):
Term life
274
284
282
284
Universal life
25
25
25
25
Variable life
165
170
174
176
Total
464
479
481
485
__________
(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
Fourth Quarter 2025
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - U.S. LEGACY PRODUCTS
(in millions)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
% change
Revenues (1):
Premiums
19
16
18
17
61
70
15%
Policy charges and fee income
378
430
378
379
1,616
1,565
-3%
Net investment income
448
460
476
488
2,185
1,872
-14%
Asset management fees, commissions and other income
337
325
329
307
1,465
1,298
-11%
Total revenues
1,182
1,231
1,201
1,191
5,327
4,805
-10%
Benefits and expenses (1):
Insurance and annuity benefits
305
284
285
333
1,347
1,207
-10%
Change in estimates of liability for future policy benefits
7
(17)
10
(5)
46
(5)
-111%
Interest credited to policyholders' account balances
69
67
63
63
356
262
-26%
Interest expense
164
170
173
178
847
685
-19%
Deferral of acquisition costs
(13)
(12)
(9)
(16)
(49)
(50)
-2%
Amortization of acquisition costs
55
57
59
50
241
221
-8%
Operating expenses
89
103
76
93
459
361
-21%
Variable expenses
242
228
236
243
1,021
949
-7%
Total benefits and expenses
918
880
893
939
4,268
3,630
-15%
Adjusted operating income (loss) before income taxes
264
351
308
252
1,059
1,175
11%
__________
(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
Fourth Quarter 2025
U.S. BUSINESSES - U.S. LEGACY PRODUCTS - SUPPLEMENTARY INFORMATION
(in millions, or as otherwise noted)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
Annuities Account Value (1):
Beginning account value, gross
93,598
89,139
90,263
90,034
101,384
93,598
Premiums and deposits (2)
6
8
4
6
31
24
Full surrenders and death benefits
(2,477)
(2,170)
(2,633)
(2,576)
(9,831)
(9,856)
Premiums and deposits net of full surrenders and death benefits
(2,471)
(2,162)
(2,629)
(2,570)
(9,800)
(9,832)
Partial withdrawals and other benefit payments
(1,181)
(1,036)
(1,049)
(1,228)
(4,532)
(4,494)
Net flows
(3,652)
(3,198)
(3,678)
(3,798)
(14,332)
(14,326)
Change in market value interest credited and other
(332)
4,802
3,935
1,433
8,637
9,838
Policy charges
(475)
(480)
(486)
(466)
(2,091)
(1,907)
Ending account value, gross
89,139
90,263
90,034
87,203
93,598
87,203
Reinsurance ceded
(8,608)
(8,393)
(8,315)
(7,954)
(8,764)
(7,954)
Ending account value, net
80,531
81,870
81,719
79,249
84,834
79,249
Guaranteed Universal Life Policyholders' Account Balances (3):
Beginning account balance, gross
14,611
14,655
14,685
14,720
14,357
14,611
Premiums and deposits (2)
350
342
338
479
1,443
1,509
Surrenders and withdrawals
(32)
(26)
(26)
(29)
(131)
(113)
Net premiums (redemptions)
318
316
312
450
1,312
1,396
Benefit payments
(30)
(44)
(29)
(24)
(106)
(127)
Net flows
288
272
283
426
1,206
1,269
Interest credited and other
141
139
140
140
576
560
Policy charges
(385)
(381)
(388)
(389)
(1,528)
(1,543)
Ending account balance, gross
14,655
14,685
14,720
14,897
14,611
14,897
Reinsurance ceded
(9,029)
(9,043)
(9,077)
(9,244)
(8,995)
(9,244)
Ending account balance, net
5,626
5,642
5,643
5,653
5,616
5,653
Net Face Amount In Force (in billions) (4):
Guaranteed Universal Life
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
Fourth Quarter 2025
U.S. BUSINESSES - U.S. LEGACY PRODUCTS - MARKET RISK BENEFIT FEATURES
(in millions)
2024
2025
4Q
1Q
2Q
3Q
4Q
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
64,932
61,716
62,634
62,435
60,554
Account Values with Auto-Rebalancing Feature - externally reinsured
1,902
1,763
1,758
1,713
1,628
Account Values without Auto-Rebalancing Feature
22,519
21,588
21,733
21,711
20,937
Total
89,353
85,067
86,125
85,859
83,119
Market Risk Benefits Net Amount at Risk by Product Design Type:
Net Amount at Risk with Auto-Rebalancing Feature
6,510
6,938
6,104
5,575
5,558
Net Amount at Risk without Auto-Rebalancing Feature
2,775
2,779
2,632
2,421
2,517
Total
9,285
9,717
8,736
7,996
8,075
__________
(1) At end of period.
Page 21
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES
(in millions)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
% change
Revenues (1):
Premiums
3,057
2,709
2,800
2,627
11,656
11,193
-4%
Policy charges and fee income
88
92
96
104
324
380
17%
Net investment income
1,469
1,451
1,540
1,569
5,723
6,029
5%
Asset management fees, commissions and other income
124
147
159
116
222
546
146%
Total revenues
4,738
4,399
4,595
4,416
17,925
18,148
1%
Benefits and expenses (1):
Insurance and annuity benefits
2,789
2,446
2,559
2,428
10,268
10,222
—%
Change in estimates of liability for future policy benefits
(3)
32
(21)
5
381
13
-97%
Interest credited to policyholders' account balances
347
369
390
402
1,210
1,508
25%
Interest expense
(1)
1
2
1
(2)
3
250%
Deferral of acquisition costs
(306)
(297)
(308)
(286)
(1,138)
(1,197)
-5%
Amortization of acquisition costs
165
174
175
179
646
693
7%
Operating expenses
436
467
466
499
1,793
1,868
4%
Variable expenses
463
446
451
431
1,661
1,791
8%
Total benefits and expenses
3,890
3,638
3,714
3,659
14,819
14,901
1%
Adjusted operating income (loss) before income taxes
848
761
881
757
3,106
3,247
5%
__________
(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
Fourth Quarter 2025
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
(in millions)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
Actual exchange rate basis (1):
Net premiums, policy charges and fee income:
Japan
2,860
2,462
2,548
2,350
10,799
10,220
Emerging Markets
285
339
348
381
1,181
1,353
Total
3,145
2,801
2,896
2,731
11,980
11,573
Annualized new business premiums:
Japan
478
453
453
410
1,732
1,794
Emerging Markets
98
88
102
112
390
400
Total
576
541
555
522
2,122
2,194
Annualized new business premiums by distribution channel:
Life Planners
258
216
227
224
842
925
Life Consultants
130
150
138
110
480
528
Banks
95
93
108
103
459
399
Independent Agency and Other
93
82
82
85
341
342
Total
576
541
555
522
2,122
2,194
Constant exchange rate basis (2):
Net premiums, policy charges and fee income:
Japan
2,950
2,475
2,580
2,424
11,071
10,429
Emerging Markets
289
333
328
357
1,102
1,307
Total
3,239
2,808
2,908
2,781
12,173
11,736
Annualized new business premiums:
Japan
487
454
457
421
1,761
1,819
Emerging Markets
99
87
96
104
363
386
Total
586
541
553
525
2,124
2,205
Annualized new business premiums by distribution channel:
Life Planners
265
214
227
229
850
935
Life Consultants
132
151
139
112
486
534
Banks
95
93
106
100
448
394
Independent Agency and Other
94
83
81
84
340
342
Total
586
541
553
525
2,124
2,205
__________
(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 143 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
Fourth Quarter 2025
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
2024
2025
4Q
1Q
2Q
3Q
4Q
Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan
533
530
526
524
521
Emerging Markets
49
50
52
54
56
Total
582
580
578
578
577
Policyholder Account Balances at end of period (in millions) (1)(2):
(Constant exchange rate basis)
International Businesses
55,548
49,858
51,945
53,903
55,367
Number of individual policies in force at end of period (in thousands) (3):
Japan
11,078
11,102
11,116
11,142
11,136
Emerging Markets
842
855
869
884
907
Total
11,920
11,957
11,985
12,026
12,043
International Businesses life insurance individual policy persistency:
13 months
91.4
%
92.0
%
92.8
%
93.6
%
94.0
%
25 months
83.4
%
83.2
%
83.0
%
82.6
%
83.4
%
Number of Life Planners at end of period:
Japan
4,309
4,356
4,285
4,282
4,283
Emerging Markets
1,726
1,819
1,876
1,859
1,952
Total Life Planners
6,035
6,175
6,161
6,141
6,235
Life Consultants
6,844
6,840
6,822
6,940
6,983
__________
(1) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 143 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
Fourth Quarter 2025
STATEMENTS OF OPERATIONS - CORPORATE AND OTHER
(in millions)
2025
Year-to-date
1Q
2Q
3Q
4Q
2024
2025
% change
Revenues (1):
Premiums
(9)
(7)
(6)
—
(21)
(22)
-5%
Policy charges and fee income
(15)
(15)
(16)
(14)
(57)
(60)
-5%
Net investment income
330
330
330
348
1,231
1,338
9%
Asset management fees, commissions and other income
(323)
(252)
(202)
(285)
(1,066)
(1,062)
—%
Total revenues
(17)
56
106
49
87
194
123%
Benefits and expenses (1):
Insurance and annuity benefits
(8)
(1)
(2)
5
(19)
(6)
68%
Change in estimates of liability for future policy benefits
—
—
—
—
—
—
—
Interest credited to policyholders' account balances
12
12
17
13
84
54
-36%
Interest expense
207
215
211
205
670
838
25%
Deferral of acquisition costs
33
39
35
37
188
144
-23%
Amortization of acquisition costs
(16)
(15)
(14)
(15)
(56)
(60)
-7%
Operating expenses
155
107
170
367
1,103
799
-28%
Variable expenses
15
(21)
16
(11)
(100)
(1)
99%
Total benefits and expenses
398
336
433
601
1,870
1,768
-5%
Adjusted operating income (loss) before income taxes
(415)
(280)
(327)
(552)
(1,783)
(1,574)
12%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses and goodwill impairment and certain components of consideration for a business acquisition, which are recognized as compensation expense over the requisite service periods. Revenues and Benefits and expenses include consolidating adjustments.
Page 25
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
INVESTMENT PORTFOLIO COMPOSITION
(in millions)
December 31, 2025
December 31, 2024
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
238,205
18,833
4,576
214,796
53.6
%
230,018
19,103
4,837
206,078
54.9
%
Private, available-for-sale, at fair value
92,900
10,049
2,217
80,634
20.2
%
81,179
9,625
2,795
68,759
18.3
%
Fixed maturities, trading, at fair value
14,448
581
9,049
4,818
1.2
%
12,447
647
7,732
4,068
1.1
%
Assets supporting experience-rated contractholder liabilities, at fair value
4,842
—
—
4,842
1.2
%
3,707
—
—
3,707
1.0
%
Equity securities, at fair value
10,515
1,593
—
8,922
2.2
%
8,896
1,642
—
7,254
1.9
%
Commercial mortgage and other loans, at book value, net of allowance
63,921
7,463
263
56,195
14.0
%
61,872
7,652
233
53,987
14.4
%
Policy loans, at outstanding balance
9,958
3,217
—
6,741
1.7
%
9,795
3,348
—
6,447
1.7
%
Other invested assets, net of allowance (2)
24,066
4,532
1,850
17,684
4.4
%
23,577
4,929
1,867
16,781
4.4
%
Short-term investments, net of allowance
6,404
255
71
6,078
1.5
%
9,056
520
43
8,493
2.3
%
Subtotal (3)
465,259
46,523
18,026
400,710
100.0
%
440,547
47,466
17,507
375,574
100.0
%
Invested assets of other entities and operations (4)
5,260
—
—
5,260
4,233
—
—
4,233
Total investments
470,519
46,523
18,026
405,970
444,780
47,466
17,507
379,807
Fixed Maturities by Credit Quality (3)(5):
December 31, 2025
December 31, 2024
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
184,052
2,585
23,277
—
163,360
76.1
%
176,693
3,412
20,161
—
159,944
77.6
%
2
46,660
907
2,952
—
44,615
20.8
%
43,221
522
3,744
—
39,999
19.4
%
Subtotal - High or Highest Quality Securities
230,712
3,492
26,229
—
207,975
96.9
%
219,914
3,934
23,905
—
199,943
97.0
%
3
5,605
86
540
—
5,151
2.4
%
4,807
60
574
—
4,293
2.1
%
4
1,105
44
9
—
1,140
0.5
%
1,264
48
30
—
1,282
0.6
%
5
480
16
25
7
464
0.2
%
439
16
12
7
436
0.2
%
6
87
6
5
22
66
0.0
%
196
7
9
70
124
0.1
%
Subtotal - Other Securities
7,277
152
579
29
6,821
3.1
%
6,706
131
625
77
6,135
3.0
%
Total
237,989
3,644
26,808
29
214,796
100.0
%
226,620
4,065
24,530
77
206,078
100.0
%
Private Fixed Maturities:
NAIC Rating (6)
1
21,362
336
1,431
—
20,267
25.1
%
18,756
257
1,920
—
17,093
24.9
%
2
47,978
1,777
1,961
—
47,794
59.3
%
44,179
765
3,453
—
41,491
60.3
%
Subtotal - High or Highest Quality Securities
69,340
2,113
3,392
—
68,061
84.4
%
62,935
1,022
5,373
—
58,584
85.2
%
3
7,581
390
116
19
7,836
9.7
%
6,483
114
282
—
6,315
9.2
%
4
3,343
54
52
22
3,323
4.1
%
2,646
15
101
28
2,532
3.7
%
5
1,228
22
20
44
1,186
1.5
%
1,051
30
34
29
1,018
1.5
%
6
244
29
6
39
228
0.3
%
437
24
11
140
310
0.4
%
Subtotal - Other Securities
12,396
495
194
124
12,573
15.6
%
10,617
183
428
197
10,175
14.8
%
Total
81,736
2,608
3,586
124
80,634
100.0
%
73,552
1,205
5,801
197
68,759
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 December 31, 2025 and 2024, 1,482 securities with amortized cost of $9,683 million (fair value $9,598 million) and 803 securities with amortized cost of $4,147 million (fair value $3,840 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
Fourth Quarter 2025
INVESTMENT PORTFOLIO COMPOSITION - JAPANESE INSURANCE OPERATIONS AND EXCLUDING JAPANESE INSURANCE OPERATIONS AND FUNDS WITHHELD (1)
(in millions)
December 31, 2025
December 31, 2024
Amount
% of Total
Amount
% of Total
Investment Portfolio Composition - Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value
102,061
65.4
%
102,904
65.1
%
Private, available-for-sale, at fair value
21,284
13.6
%
21,603
13.6
%
Fixed maturities, trading, at fair value
551
0.3
%
461
0.3
%
Assets supporting experience-rated contractholder liabilities, at fair value
4,842
3.1
%
3,707
2.3
%
Equity securities, at fair value
1,652
1.1
%
1,845
1.2
%
Commercial mortgage and other loans, at book value, net of allowance
14,487
9.3
%
16,137
10.2
%
Policy loans, at outstanding balance
2,708
1.7
%
2,608
1.6
%
Other invested assets, net of allowance (3)
6,357
4.1
%
6,588
4.2
%
Short-term investments, net of allowance
2,166
1.4
%
2,324
1.5
%
Total
156,108
100.0
%
158,177
100.0
%
December 31, 2025
December 31, 2024
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
112,735
46.1
%
103,174
47.4
%
Private, available-for-sale, at fair value
59,350
24.3
%
47,156
21.7
%
Fixed maturities, trading, at fair value
4,267
1.7
%
3,607
1.7
%
Assets supporting experience-rated contractholder liabilities, at fair value
—
0.0
%
—
0.0
%
Equity securities, at fair value
7,270
3.0
%
5,409
2.5
%
Commercial mortgage and other loans, at book value, net of allowance
41,708
17.1
%
37,850
17.4
%
Policy loans, at outstanding balance
4,033
1.6
%
3,839
1.8
%
Other invested assets, net of allowance (3)
11,327
4.6
%
10,193
4.7
%
Short-term investments, net of allowance
3,912
1.6
%
6,169
2.8
%
Total
244,602
100.0
%
217,397
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
Fourth Quarter 2025
INVESTMENT RESULTS (1)
(in millions)
Three Months Ended December 31,
2025
Investment Income
Realized Gains (Losses)
Yield (2)
Amount
General Account (3)
Fixed maturities (4)
4.50
%
3,605
(304)
Equity securities
3.07
%
60
—
Commercial mortgage and other loans
4.61
%
642
11
Policy loans
4.24
%
71
—
Short-term investments and cash equivalents
4.69
%
196
—
Gross investment income before investment expenses
4.49
%
4,574
(293)
Investment expenses
-0.19
%
(335)
—
Subtotal
4.30
%
4,239
(293)
Other investments (4)
383
(119)
Investment results of other entities and operations (5)
62
15
Investment results of Funds Withheld (6)
381
(159)
Less: investment income related to adjusted operating income reconciling items
(118)
—
Total
4,947
(556)
Twelve Months Ended December 31,
2025
2024
Investment Income
Realized Gains (Losses)
Investment Income
Realized Gains (Losses)
Yield (2)
Amount
Yield (2)
Amount
General Account (3)
Fixed maturities (4)
4.48
%
13,834
(452)
4.33
%
12,896
(2,076)
Equity securities
2.48
%
173
—
3.25
%
170
—
Commercial mortgage and other loans
4.58
%
2,461
(164)
4.38
%
2,237
(223)
Policy loans
4.51
%
292
—
4.62
%
292
—
Short-term investments and cash equivalents
5.26
%
836
1
6.35
%
996
(12)
Gross investment income before investment expenses
4.49
%
17,596
(615)
4.40
%
16,591
(2,311)
Investment expenses
-0.17
%
(1,209)
—
-0.16
%
(1,116)
—
Subtotal
4.32
%
16,387
(615)
4.24
%
15,475
(2,311)
Other investments (4)
1,393
(1,820)
1,035
267
Investment results of other entities and operations (5)
233
19
59
48
Investment results of Funds Withheld (6)
1,404
(1,343)
1,292
(664)
Less: investment income related to adjusted operating income reconciling items
(479)
—
(486)
—
Total
18,938
(3,759)
17,375
(2,660)
________
(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. Prior periods have been updated to reflect the correction of an error.
(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
Fourth Quarter 2025
INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS
(in millions)
Three Months Ended December 31,
2025
Investment Income
Realized Gains (Losses)
Yield (1)
Amount
Japanese Insurance Operations:
Fixed maturities (2)
3.31
%
1,178
(123)
Equity securities
4.17
%
19
—
Commercial mortgage and other loans
3.83
%
140
(7)
Policy loans
3.75
%
26
—
Short-term investments and cash equivalents
3.59
%
39
—
Gross investment income before investment expenses
3.38
%
1,402
(130)
Investment expenses
-0.13
%
(89)
—
Subtotal
3.25
%
1,313
(130)
Other investments (2)
191
(109)
Total
1,504
(239)
Twelve Months Ended December 31,
2025
2024
Investment Income
Realized Gains (Losses)
Investment Income
Realized Gains (Losses)
Yield (1)
Amount
Yield (1)
Amount
Japanese Insurance Operations:
Fixed maturities (2)
3.24
%
4,521
(41)
3.15
%
4,358
(805)
Equity securities
3.35
%
59
—
3.29
%
49
—
Commercial mortgage and other loans
3.85
%
580
(33)
3.81
%
632
(42)
Policy loans
3.83
%
102
—
3.81
%
98
—
Short-term investments and cash equivalents
4.36
%
162
—
5.57
%
126
(1)
Gross investment income before investment expenses
3.33
%
5,424
(74)
3.26
%
5,263
(848)
Investment expenses
-0.13
%
(349)
—
-0.13
%
(329)
—
Subtotal
3.20
%
5,075
(74)
3.13
%
4,934
(848)
Other investments (2)
650
(282)
489
(465)
Total
5,725
(356)
5,423
(1,313)
__________
(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
Fourth Quarter 2025
INVESTMENT RESULTS - EXCLUDING FUNDS WITHHELD AND JAPANESE INSURANCE OPERATIONS (1)
(in millions)
Three Months Ended December 31,
2025
Investment Income
Realized Gains (Losses)
Yield (2)
Amount
Excluding Funds Withheld and Japanese Insurance Operations (3):
Fixed maturities (4)
5.47
%
2,427
(181)
Equity securities
2.73
%
41
—
Commercial mortgage and other loans
4.89
%
502
18
Policy loans
4.58
%
45
—
Short-term investments and cash equivalents
5.07
%
157
—
Gross investment income before investment expenses
5.26
%
3,172
(163)
Investment expenses
-0.24
%
(246)
—
Subtotal
5.02
%
2,926
(163)
Other investments (4)
192
(10)
Total
3,118
(173)
Twelve Months Ended December 31,
2025
2024
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)
5.52
%
9,313
(411)
5.36
%
8,538
(1,271)
Equity securities
2.18
%
114
—
3.23
%
121
—
Commercial mortgage and other loans
4.87
%
1,881
(131)
4.65
%
1,605
(181)
Policy loans
4.99
%
190
—
5.18
%
194
—
Short-term investments and cash equivalents
5.53
%
674
1
6.46
%
870
(11)
Gross investment income before investment expenses
5.32
%
12,172
(541)
5.26
%
11,328
(1,463)
Investment expenses
-0.20
%
(860)
—
-0.19
%
(787)
—
Subtotal
5.12
%
11,312
(541)
5.07
%
10,541
(1,463)
Other investments (4)
743
(1,538)
546
732
Total
12,055
(2,079)
11,087
(731)
__________
(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. Prior periods have been updated to reflect the correction of an error.
(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
Fourth Quarter 2025
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 35 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 31
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Twelve Months Ended December 31, 2025
Twelve Months Ended December 31, 2024
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
28,591
—
—
(1)
1,719
488
—
—
30,797
40,745
—
—
(1)
1,690
463
—
—
42,897
Policy charges and fee income
4,410
268
—
(12)
—
—
—
—
4,666
4,277
99
—
(87)
—
9
—
—
4,298
Net investment income
18,938
(12)
—
—
2,056
491
—
—
21,473
17,375
(17)
—
—
2,048
503
—
—
19,909
Realized investment gains (losses), net (3)
(598)
(3,051)
—
—
(373)
(110)
—
—
(4,132)
(585)
(1,979)
—
—
(769)
(96)
—
—
(3,429)
Asset management fees, commissions and other income
6,336
1,604
—
—
349
342
(186)
—
8,445
6,241
156
—
—
318
547
(135)
—
7,127
Change in value of market risk benefits, net of related hedging gains (losses)
—
—
(475)
—
—
—
—
—
(475)
—
—
(397)
—
—
—
—
—
(397)
Total revenues
57,677
(1,191)
(475)
(13)
3,751
1,211
(186)
—
60,774
68,053
(1,741)
(397)
(88)
3,287
1,426
(135)
—
70,405
Benefits and expenses:
Insurance and annuity benefits
31,960
147
—
(5)
3,406
792
—
—
36,300
44,075
(3)
—
(3)
2,983
765
—
—
47,817
Change in estimates of liability for future policy benefits
232
(85)
—
(76)
—
32
—
—
103
108
33
—
(33)
—
(145)
—
—
(37)
Interest credited to policyholders' account balances
4,704
107
—
—
113
144
—
—
5,068
3,949
347
—
—
117
169
—
—
4,582
Interest expense
2,112
—
—
—
(8)
7
—
—
2,111
2,019
—
—
—
(2)
13
—
—
2,030
Deferral of acquisition costs
(2,753)
(98)
—
—
—
—
—
—
(2,851)
(2,601)
—
—
—
—
(1)
—
—
(2,602)
Amortization of acquisition costs
1,571
51
—
—
13
—
—
—
1,635
1,445
32
—
—
12
3
—
—
1,492
Operating expenses
6,773
—
—
—
270
99
—
(27)
7,115
6,870
—
—
—
283
457
—
17
7,627
Variable expenses
6,441
305
—
—
25
30
(166)
2
6,637
6,262
—
—
—
7
135
(119)
2
6,287
Total benefits and expenses
51,040
427
—
(81)
3,819
1,104
(166)
(25)
56,118
62,127
409
—
(36)
3,400
1,396
(119)
19
67,196
__________
(1) See page 35 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 $(222) million and $(427) million for twelve months ended December 31, 2025 and December 31, 2024, respectively. Also includes changes in the value of the funds withheld and modified coinsurance embedded derivatives associated with available-for-sale securities of $(253) million and $436 million and certain derivatives of $48 million and $(29) million for twelve months ended December 31, 2025 and December 31, 2024, respectively.
Page 32
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended March 31, 2025
Three Months Ended June 30, 2025
Reconciling Items
Reconciling Items
Adjusted Operating Income (Loss) basis (1)
Total realized investment gains (losses), net, and related charges and adjustments
Change in value of market risk benefits, net of related hedging gains (losses)
Market experience updates
Closed Block Division
Other Divested and Run-off Businesses
Equity in earnings of joint ventures and other operating entities, and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
Other adjustments (2)
U.S. GAAP
Adjusted Operating Income (Loss) basis (1)
Total realized investment gains (losses), net, and related charges and adjustments
Change in value of market risk benefits, net of related hedging gains (losses)
Market experience updates
Closed Block Division
Other Divested and Run-off Businesses
Equity in earnings of joint ventures and other operating entities, and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
Other adjustments (2)
U.S. GAAP
Revenues:
Premiums
6,446
—
—
—
417
137
—
—
7,000
6,426
—
—
(1)
445
112
—
—
6,982
Policy charges and fee income
1,108
46
—
3
—
—
—
—
1,157
1,070
174
—
5
—
—
—
—
1,249
Net investment income
4,519
(3)
—
—
493
121
—
—
5,130
4,600
(3)
—
—
511
118
—
—
5,226
Realized investment gains (losses), net (3)
(157)
(489)
—
—
(57)
(27)
—
—
(730)
(148)
(1,302)
—
—
(198)
(51)
—
—
(1,699)
Asset management fees, commissions and other income
1,496
(190)
—
—
(33)
23
(32)
—
1,264
1,558
609
—
—
189
89
(51)
—
2,394
Change in value of market risk benefits, net of related hedging gains (losses)
—
—
(351)
—
—
—
—
—
(351)
—
—
(426)
—
—
—
—
—
(426)
Total revenues
13,412
(636)
(351)
3
820
254
(32)
—
13,470
13,506
(522)
(426)
4
947
268
(51)
—
13,726
Benefits and expenses:
Insurance and annuity benefits
7,344
2
—
2
729
208
—
—
8,285
7,195
200
—
(5)
864
186
—
—
8,440
Change in estimates of liability for future policy benefits
(14)
3
—
(38)
—
(1)
—
—
(50)
100
(254)
—
(33)
—
12
—
—
(175)
Interest credited to policyholders' account balances
1,083
(325)
—
—
28
39
—
—
825
1,135
(64)
—
—
29
38
—
—
1,138
Interest expense
522
—
—
—
(2)
2
—
—
522
526
—
—
—
(1)
1
—
—
526
Deferral of acquisition costs
(684)
(98)
—
—
—
—
—
—
(782)
(689)
—
—
—
—
—
—
—
(689)
Amortization of acquisition costs
376
28
—
—
3
—
—
—
407
392
12
—
—
3
—
—
—
407
Operating expenses
1,624
—
—
—
65
43
—
(28)
1,704
1,634
—
—
—
69
14
—
—
1,717
Variable expenses
1,641
—
—
—
19
14
(35)
—
1,639
1,548
100
—
—
1
5
(33)
1
1,622
Total benefits and expenses
11,892
(390)
—
(36)
842
305
(35)
(28)
12,550
11,841
(6)
—
(38)
965
256
(33)
1
12,986
__________
(1) See page 35 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 $(55) million and $(27) million for three months ended March 31, 2025 and June 30, 2025, respectively. Also includes changes in the value of the funds withheld and modified coinsurance embedded derivatives associated with available-for-sale securities of $(104) million and $(47) million and certain derivatives of $5 million and $55 million for three months ended March 31, 2025 and June 30, 2025, respectively.
Page 33
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended September 30, 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
8,691
—
—
1
394
127
—
—
9,213
Policy charges and fee income
1,126
25
—
(18)
—
—
—
—
1,133
Net investment income
4,872
(3)
—
—
528
131
—
—
5,528
Realized investment gains (losses), net (3)
(119)
(900)
—
—
3
(10)
—
—
(1,026)
Asset management fees, commissions and other income
1,669
829
—
—
133
151
(66)
—
2,716
Change in value of market risk benefits, net of related hedging gains (losses)
—
—
324
—
—
—
—
—
324
Total revenues
16,239
(49)
324
(17)
1,058
399
(66)
—
17,888
Benefits and expenses:
Insurance and annuity benefits
9,485
(85)
—
(1)
949
200
—
—
10,548
Change in estimates of liability for future policy benefits
96
168
—
20
—
12
—
—
296
Interest credited to policyholders' account balances
1,215
300
—
—
27
40
—
—
1,582
Interest expense
531
—
—
—
(3)
2
—
—
530
Deferral of acquisition costs
(699)
—
—
—
—
—
—
—
(699)
Amortization of acquisition costs
395
4
—
—
4
—
—
—
403
Operating expenses
1,639
—
—
—
69
19
—
1
1,728
Variable expenses
1,630
138
—
—
2
3
(55)
—
1,718
Total benefits and expenses
14,292
525
—
19
1,048
276
(55)
1
16,106
__________
(1) See page 35 for a definition of adjusted operating income.
(2) Represents adjustments not included in the above reconciling items, including certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.
(3) Includes realized gains and losses from sales of funds withheld and modified coinsurance assets not passed back to reinsurers of $(91) million for three months ended September 30, 2025. Also includes changes in the value of the funds withheld and modified coinsurance embedded derivatives associated with available-for-sale securities of $(129) million and certain derivatives of $(15) million for three months ended September 30, 2025.
Page 34
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
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 35
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
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 36
Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
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 Fixed Income - Represents debt instruments that pay fixed interest and usually have a maturity (excluding mortgages).
Real Estate - Includes direct real estate equity and real estate mortgages.
Private Credit and Other Alternatives - Includes private credit, private equity, hedge funds and other alternative strategies.
Multi-Asset - Includes funds or products that invest in more than one asset class, balancing equity and fixed income funds and target date funds.
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.
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Table of Contents
Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2025
RATINGS AND INVESTOR INFORMATION
FINANCIAL STRENGTH RATINGS
as of April 14, 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 April 14, 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 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | — | — |
| Buybacks share repurchase, buyback program | 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.
Source: SEC EDGAR · public domain · Highlights by Palanor