Equibles

8-K

PRUDENTIAL FINANCIAL INC (PRU)

8-K 2022-08-02 For: 2022-08-02
View Original
Added on April 03, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________

FORM 8-K

___________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 2, 2022

___________________________

PRUDENTIAL FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

___________________________

New Jersey 001-16707 22-3703799
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)

751 Broad Street

Newark, NJ 07102

(Address of principal executive offices and zip code)

(973) 802-6000

(Registrant’s telephone number, including area code)

___________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered
Common Stock, Par Value $.01 PRU New York Stock Exchange
5.625% Junior Subordinated Notes PRS New York Stock Exchange
4.125% Junior Subordinated Notes PFH New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Item 2.02    Results of Operations and Financial Condition.

Prudential Financial, Inc. (the "Company") furnishes herewith, as Exhibit 99.1, a news release announcing second quarter 2022 results.

Item 7.01    Regulation FD Disclosure.

A. Quarterly Financial Supplement. The Company furnishes herewith, as Exhibit 99.2, the Quarterly Financial Supplement for second quarter 2022.
B. Conference Call and Related Materials. Members of the Company's senior management will hold a conference call on Wednesday, August 3, 2022 at 11:00 A.M. ET, to discuss the Company's second quarter 2022 results. Related materials are available on the Company's Investor Relations website at www.investor.prudential.com.

Investors and others should note that the Company routinely uses its Investor Relations website to post presentations to investors and other important information, including information that may be deemed material to investors. Accordingly, the Company encourages investors and others interested in the Company to review the information that it shares at www.investor.prudential.com. Interested parties may register to receive automatic email alerts when presentations and other information are posted to the Investor Relations website by clicking on “Subscribe to Email Alerts" at www.investor.prudential.com and following the instructions provided.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
99.1 News release of Prudential Financial, Inc. dated August 2, 2022, announcing second quarter 2022 results (furnished and not filed).
99.2 Quarterly Financial Supplement for Prudential Financial, Inc. for second quarter 2022 (furnished and not filed).
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: August 2, 2022

PRUDENTIAL FINANCIAL, INC.
By: /s/ Robert D. Axel
Name: Robert D. Axel<br>Title:   Senior Vice President and Principal Accounting Officer

Document

Exhibit 99.1

earningsreleaseheader1a09.jpg

August 2, 2022

Prudential Financial, Inc. Announces

Second Quarter 2022 Results

•Net loss attributable to Prudential Financial, Inc. of $565 million or $1.53 per Common share versus net income of $2.158 billion or $5.40 per share for the year-ago quarter. The current quarter included a net after-tax charge from our annual assumption update and other refinements of $1.048 billion or $2.80 per Common share versus a benefit of $182 million or $0.45 per share in the year-ago quarter. The current quarter also included an after-tax gain due to the sales of a block of legacy variable annuities and the Full Service business of $1.140 billion or $3.04 per Common share.

•After-tax adjusted operating income of $664 million or $1.74 per Common share versus $1.440 billion or $3.60 per share for the year-ago quarter. The current quarter included a net after-tax charge from our annual assumption update and other refinements of $1.124 billion or $2.94 per Common share versus $24 million or $0.06 per share in the year-ago quarter. The current quarter also included an after-tax gain due to the sale of a block of legacy variable annuities of $673 million or $1.76 per Common share.

•Book value per Common share of $74.72 versus $160.31 per share for the year-ago quarter; adjusted book value per Common share of $104.19 versus $104.39 per share for the year-ago quarter.

•Parent company highly liquid assets(1) of $7.1 billion versus $4.9 billion for the year-ago quarter.

•Assets under management(2) of $1.410 trillion versus $1.730 trillion for the year-ago quarter.

•Capital returned to shareholders of $832 million in the quarter, including $375 million of share repurchases and $457 million of dividends, versus $1.335 billion in the year-ago quarter. Dividends paid were $1.20 per Common share, representing a 5% yield on adjusted book value.

Charles Lowrey, Chairman and CEO, commented on results:

“Our second quarter results reflect macroeconomic trends, including rising interest rates, widening credit spreads, and equity market declines, as well as the strengthening of our Individual Life reserves through our annual review of assumptions. We also continued to make significant strategic progress transforming our businesses to be less market sensitive and more nimble, while making additional investments to support our long-term, sustainable growth.

We completed the sales of our Full Service business and a significant portion of our traditional variable annuities, which reduced our market sensitivity by 20%. We are increasing our presence in Africa through a programmatic acquisition in a key growth market. We also continued to expand our products and solutions, and are expecting to reach our $750 million cost savings program target one year ahead of schedule.

Our actions are supported by the strength of our rock solid balance sheet, which gives us the financial flexibility to navigate through the current macroeconomic environment, while continuing to invest in our businesses and return capital to shareholders. Our strategy continues to position us well for the future and to be a leader in expanding access to insurance, investing, and retirement security around the world. We remain confident that we are on the right path to drive long-term sustainable growth and create value for all of our stakeholders.”

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Prudential Financial, Inc. Second Quarter 2022 Earnings Release Page 2

NEWARK, N.J. – Prudential Financial, Inc. (NYSE: PRU) today reported second quarter results. Net loss attributable to Prudential Financial, Inc. was $565 million ($1.53 per Common share) for the second quarter of 2022, compared to net income of $2.158 billion ($5.40 per Common share) for the second quarter of 2021. After-tax adjusted operating income was $664 million ($1.74 per Common share) for the second quarter of 2022, compared to $1.440 billion ($3.60 per Common share) for the second quarter of 2021.

Consolidated adjusted operating income and adjusted book value are non-GAAP measures. A discussion of these measures, including definitions thereof, how they are useful to investors, and certain limitations thereof, is included later in this press release under “Non-GAAP Measures” and reconciliations to the most comparable GAAP measures are provided in the tables that accompany this release.

RESULTS OF ONGOING OPERATIONS

The Company’s ongoing operations include PGIM, U.S. Businesses, International Businesses, and Corporate & Other. In the following business-level discussion, adjusted operating income refers to pre-tax results.

PGIM

PGIM, the Company’s global investment management business, reported adjusted operating income of $206 million for the second quarter of 2022, compared to $315 million in the year-ago quarter. This decrease reflects lower Other Related Revenues, driven by a decrease in seed and co-investment income, and lower asset management fees.

PGIM assets under management of $1.257 trillion were down 17% from the year-ago quarter, reflecting the impact of market depreciation resulting from higher interest rates and credit spreads, as well as declines in equity markets. While third-party net outflows of $0.2 billion in the current quarter reflect $8.3 billion of retail outflows mainly from fixed income, they were mostly offset by strong institutional inflows of $8.1 billion primarily driven by fixed income.

U.S. Businesses

U.S. Businesses reported adjusted operating income of $370 million for the second quarter of 2022, compared to $1.047 billion in the year-ago quarter. This decrease includes an unfavorable comparative impact from our annual assumption update and other refinements of $1.410 billion as well as a gain on the sale of a block of legacy variable annuities of $852 million. Excluding these items, current quarter results primarily reflect lower net investment spread results and lower net fee income, partially offset by a gain on a strategic investment and more favorable underwriting results.

Retirement Strategies, consisting of Institutional Retirement Strategies (former Retirement segment) and Individual Retirement Strategies (former Individual Annuities segment), reported adjusted operating income of $1.703 billion for the second quarter of 2022, compared to $922 million in the year-ago quarter.

Institutional Retirement Strategies:

•Reported adjusted operating income of $398 million in the current quarter, compared to $450 million in the year-ago quarter. This decrease includes a favorable comparative impact from our annual assumption update and other refinements of $14 million. Excluding this item, current quarter results primarily reflect lower net investment spread results, partially offset by higher reserve gains.

•Account values of $235 billion declined 4% from the year-ago quarter, driven by unfavorable foreign exchange impacts and market depreciation. Net inflows in the current quarter totaled $0.1 billion as sales of $3.7 billion were mostly offset by withdrawals and benefit payments.

Individual Retirement Strategies:

•Reported adjusted operating income of $1.305 billion in the current quarter, compared to $472 million in the year-ago quarter. This increase includes a favorable comparative impact from our annual assumption update and other refinements of $40 million as well as a gain on the sale of a block of legacy variable annuities of $852 million. Excluding these items, current quarter results primarily reflect lower fee income, net of distribution expenses and other associated costs, partially offset by a gain on a strategic investment and higher net investment spread results.

•Account values of $123 billion were down 32% from the year-ago quarter, reflecting the sale of a block of legacy variable annuities, market depreciation, and net outflows. Gross sales of $1.6 billion in the current quarter reflect the continued momentum from our FlexGuard products.

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Prudential Financial, Inc. Second Quarter 2022 Earnings Release Page 3

Group Insurance:

•Reported adjusted operating income of $53 million in the current quarter, compared to $17 million in the year-ago quarter. This increase includes an unfavorable comparative impact from our annual assumption update and other refinements of $4 million. Excluding this item, current quarter results primarily reflect more favorable underwriting results in both group life and disability, partially offset by lower net investment spread results.

•Reported earned premiums, policy charges, and fees of $1.4 billion decreased 3% from the year-ago quarter.

Individual Life:

•Reported a loss, on an adjusted operating income basis, of $1.325 billion in the current quarter, compared to adjusted operating income of $146 million in the year-ago quarter. This decrease includes an unfavorable comparative impact from our annual assumption update and other refinements of $1.408 billion, primarily driven by updated policyholder behavior and mortality assumptions in the current quarter. Excluding this item, current quarter results primarily reflect lower net investment spread results and higher expenses, partially offset by more favorable underwriting results.

•Sales of $155 million in the current quarter decreased 14% from the year-ago quarter, driven by lower Universal Life and Term sales.

Assurance IQ reported a loss, on an adjusted operating income basis, of $61 million in the current quarter, compared to a loss of $38 million in the year-ago quarter. This higher loss includes an unfavorable impact from our annual assumption update and other refinements of $17 million in the current quarter. Excluding this item, current quarter results primarily reflect lower revenues, partially offset by lower expenses.

International Businesses

International Businesses, consisting of Life Planner and Gibraltar Life & Other, reported adjusted operating income of $555 million for the second quarter of 2022, compared to $803 million in the year-ago quarter. This decrease includes an unfavorable comparative impact from our annual assumption update and other refinements of $17 million. Excluding this item, current quarter results primarily reflect lower earnings from joint venture investments, lower net investment spread results, and less favorable underwriting results, partially offset by business growth.

Life Planner:

•Reported adjusted operating income of $343 million in the current quarter, compared to $407 million in the year-ago quarter. This decrease includes an unfavorable comparative impact from our annual assumption update and other refinements of $21 million. Excluding this item, current quarter results primarily reflect lower net investment spread results and less favorable underwriting results, partially offset by business growth.

•Constant dollar basis sales(3) of $240 million in the current quarter increased 2% from the year-ago quarter, primarily driven by growth in Brazil.

Gibraltar Life & Other:

•Reported adjusted operating income of $212 million in the current quarter, compared to $396 million in the year-ago quarter. This decrease includes a favorable comparative impact from our annual assumption update and other refinements of $4 million. Excluding this item, current quarter results primarily reflect lower earnings from joint venture investments, lower net investment spread results, and less favorable underwriting results.

•Constant dollar basis sales(3) of $240 million in the current quarter decreased 8% from the year-ago quarter, primarily driven by lower protection product sales in the Bank channel.

Corporate & Other

Corporate & Other reported a loss, on an adjusted operating income basis, of $259 million for the second quarter of 2022, compared to a loss of $336 million in the year-ago quarter. This lower loss includes an unfavorable

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Prudential Financial, Inc. Second Quarter 2022 Earnings Release Page 4

comparative impact from our annual assumption update and other refinements of $1 million. Excluding this item, current quarter results primarily reflect lower expenses, higher income from pension and other employee benefit plans, and higher net investment income.

NET INCOME

Net loss in the current quarter included $2.350 billion of pre-tax net realized investment losses and related charges and adjustments, largely reflecting the impacts of rising interest rates, and also $104 million of net impairment and credit-related losses, $531 million of pre-tax gains related to market experience updates, and $415 million of pre-tax earnings from divested and run-off businesses, including a pre-tax gain of $690 million on the sale of the Full Service business.

Net income for the year-ago quarter included $358 million of pre-tax net realized investment gains and related charges and adjustments, including $61 million of net impairment and credit-related gains, $370 million of pre-tax earnings from divested and run-off businesses, and $225 million of pre-tax gains related to market experience updates.

EARNINGS CONFERENCE CALL

Members of Prudential’s senior management will host a conference call on Wednesday, August 3, 2022, at 11:00 a.m. ET to discuss with the investment community the Company’s second quarter results. The conference call will be broadcast live over the Company’s Investor Relations website at investor.prudential.com. Please log on 15 minutes early in the event necessary software needs to be downloaded. Institutional investors, analysts, and other members of the professional financial community are invited to listen to the call and participate in the Q&A by dialing one of the following numbers: (877) 407-8293 (domestic) or (201) 689-8349 (international). All others may join the conference call in listen-only mode by dialing one of the above numbers. A replay will remain on the Investor Relations website through August 17. To access a replay via phone starting at 3:00 p.m. ET on August 3 through August 17 dial (877) 660-6853 (domestic) or (201) 612-7415 (international) and use replay code 13725141.

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FORWARD-LOOKING STATEMENTS

Certain of the statements included in this release, including those regarding our strategy to become a higher growth and less market sensitive company, our cost savings program, our plans relating to share repurchases and dividends, our efforts to enhance customer experience and expand our products and solutions to more people, our strategy to create sustainable, long-term growth, our efforts to expand access to investing, insurance, and retirement security around the world, and other business strategies, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. Prudential Financial, Inc.’s actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in the “Risk Factors” and “Forward-Looking Statements” sections included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. The forward-looking statements herein are subject to the risk, among others, that we will be unable to execute our strategy because of market or competitive conditions or other factors. Prudential Financial, Inc. does not undertake to update any particular forward-looking statement included in this document.

NON-GAAP MEASURES

Consolidated adjusted operating income and adjusted book value are non-GAAP measures. Reconciliations to the most directly comparable GAAP measures are included in this release.

We believe that our use of these non-GAAP measures helps investors understand and evaluate the Company’s performance and financial position. The presentation of adjusted operating income as we measure it for management purposes enhances the understanding of the 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 below. Adjusted book value augments the understanding of our financial position by providing a measure of net worth that is primarily

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Prudential Financial, Inc. Second Quarter 2022 Earnings Release Page 5

attributable to our business operations separate from the portion that is affected by capital and currency market conditions, and by isolating the accounting impact associated with insurance liabilities that are generally not marked to market and the supporting investments that are marked to market through accumulated other comprehensive income under GAAP. However, these non-GAAP measures are not substitutes for income and equity determined in accordance with GAAP, and the adjustments made to derive these measures are important to an understanding of our overall results of operations and financial position. The schedules accompanying this release provide reconciliations of non-GAAP measures with the corresponding measures calculated using GAAP. Additional historic information relating to our financial performance is located on our website at investor.prudential.com.

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,” as adjusted, 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 our tax and capital profile.

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. Additionally, adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income.

Adjusted operating income excludes 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, 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, changes in the fair value of contingent consideration, and goodwill impairments. Earnings attributable to noncontrolling interests is presented as a separate component of net income under GAAP and excluded from adjusted operating income. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments.

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.

Adjusted book value is calculated as total equity (GAAP book value) excluding accumulated other comprehensive income (loss) and the cumulative effect of foreign currency exchange rate remeasurements and currency translation adjustments corresponding to realized investment gains and losses. These items are excluded in order to highlight the book value attributable to our core business operations separate from the portion attributable to external and potentially volatile capital and currency market conditions.

FOOTNOTES

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Prudential Financial, Inc. Second Quarter 2022 Earnings Release Page 6

(1)Highly liquid assets predominantly include cash, short-term investments, U.S. Treasury securities, obligations of other U.S. government authorities and agencies, and/or foreign government bonds. For more information about highly liquid assets, see the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

(2)For more information about assets under management, see the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Segment Measures” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

(3)For more information about constant dollar basis sales, see the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations by Segment – International Businesses” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with more than $1.4 trillion in assets under management as of June 30, 2022, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise, and innovation for more than a century. For more information, please visit news.prudential.com.

MEDIA CONTACT: Bill Launder, (973) 802-8760, bill.launder@prudential.com

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Financial Highlights
(in millions, unaudited)
Three Months Ended Six Months Ended
June 30 June 30
2022 2021 2022 2021
Adjusted operating income (loss) before income taxes (1):
PGIM $ 206 $ 315 $ 394 $ 966
U.S. Businesses 370 1,047 1,313 1,890
International Businesses 555 803 1,356 1,674
Corporate and Other (259) (336) (625) (658)
Total adjusted operating income before income taxes $ 872 $ 1,829 $ 2,438 $ 3,872
Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments $ (2,350) $ 358 $ (3,710) $ 1,413
Market experience updates 531 225 525 529
Divested and Run-off Businesses:
Closed Block division 13 31 36 65
Other Divested and Run-off Businesses 402 339 103 384
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests 21 4 (1) (50)
Other adjustments (2) — (13) (17) (26)
Total reconciling items, before income taxes (1,383) 944 (3,064) 2,315
Income (loss) before income taxes and equity in earnings of operating joint ventures $ (511) $ 2,773 $ (626) $ 6,187
Income Statement Data:
Net income (loss) attributable to Prudential Financial, Inc. $ (565) $ 2,158 $ (596) $ 4,986
Income (loss) attributable to noncontrolling interests (7) 25 (20) 1
Net income (loss) (572) 2,183 (616) 4,987
Less: Earnings attributable to noncontrolling interests (7) 25 (20) 1
Income (loss) attributable to Prudential Financial, Inc. (565) 2,158 (596) 4,986
Less: Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests (43) (6) (28) 44
Income (loss) (after-tax) before equity in earnings of operating joint ventures (522) 2,164 (568) 4,942
Less: Total reconciling items, before income taxes (1,383) 944 (3,064) 2,315
Less: Income taxes, not applicable to adjusted operating income (197) 220 (614) 431
Total reconciling items, after income taxes (1,186) 724 (2,450) 1,884
After-tax adjusted operating income (1) 664 1,440 1,882 3,058
Income taxes, applicable to adjusted operating income 208 389 556 814
Adjusted operating income before income taxes (1) $ 872 $ 1,829 $ 2,438 $ 3,872
See footnotes on last page.

Page 1

Financial Highlights
(in millions, except per share data, unaudited)
Three Months Ended Six Months Ended
June 30 June 30
2022 2021 2022 2021
Earnings per share of Common Stock:
Net income (loss) attributable to Prudential Financial, Inc. $ (1.53) $ 5.40 $ (1.62) $ 12.39
Less: Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments (6.23) 0.91 (9.81) 3.56
Market experience updates 1.41 0.57 1.39 1.33
Divested and Run-off Businesses:
Closed Block division 0.03 0.08 0.10 0.16
Other Divested and Run-off Businesses 1.07 0.86 0.27 0.97
Difference in earnings allocated to participating unvested share-based payment awards 0.01 (0.03) 0.03 (0.07)
Other adjustments (2) — (0.03) (0.04) (0.07)
Total reconciling items, before income taxes (3.71) 2.36 (8.06) 5.88
Less: Income taxes, not applicable to adjusted operating income (0.44) 0.56 (1.53) 1.09
Total reconciling items, after income taxes (3.27) 1.80 (6.53) 4.79
After-tax adjusted operating income $ 1.74 $ 3.60 $ 4.91 $ 7.60
Weighted average number of outstanding common shares (basic) 374.4 391.1 375.3 393.7
Weighted average number of outstanding common shares (diluted) 377.1 394.1 378.1 396.4
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc. $ (565) $ 2,158 $ (596) $ 4,986
Less: Earnings allocated to participating unvested share-based payment awards 6 31 13 75
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation $ (571) $ 2,127 $ (609) $ 4,911
After-tax adjusted operating income (1) $ 664 $ 1,440 $ 1,882 $ 3,058
Less: Earnings allocated to participating unvested share-based payment awards 9 20 26 46
After-tax adjusted operating income for earnings per share of Common Stock calculation (1) $ 655 $ 1,420 $ 1,856 $ 3,012
Prudential Financial, Inc. Equity (as of end of period):
GAAP book value (total PFI equity) at end of period $ 28,235 $ 63,048
Less: Accumulated other comprehensive income (AOCI) (10,178) 23,277
GAAP book value excluding AOCI 38,413 39,771
Less: Cumulative effect of foreign exchange rate remeasurement and currency
translation adjustments corresponding to realized gains/losses (962) (1,287)
Adjusted book value $ 39,375 $ 41,058
End of period number of common shares (diluted) 377.9 393.3
GAAP book value per common share - diluted 74.72 160.31
GAAP book value excluding AOCI per share - diluted 101.65 101.12
Adjusted book value per common share - diluted 104.19 104.39
See footnotes on last page.

Page 2

Financial Highlights
(in millions, or as otherwise noted, unaudited)
Three Months Ended Six Months Ended
June 30 June 30
2022 2021 2022 2021
PGIM:
PGIM:
Assets Managed by PGIM (in billions, as of end of period):
Institutional customers $ 560.7 $ 618.6
Retail customers 314.3 401.2
General account 382.4 491.6
Total PGIM $ 1,257.4 $ 1,511.4
Institutional Customers - Assets Under Management (in billions):
Gross additions, other than money market $ 24.6 $ 23.0 $ 41.4 $ 44.2
Net additions, other than money market $ 8.1 $ 5.6 $ 8.4 $ 6.7
Retail Customers - Assets Under Management (in billions):
Gross additions, other than money market $ 16.1 $ 19.2 $ 36.3 $ 48.9
Net additions (withdrawals), other than money market $ (8.3) $ (0.3) $ (12.9) $ 4.1
U.S. Businesses:
Retirement Strategies:
Institutional Retirement Strategies:
Gross additions $ 3,700 $ 661 $ 5,978 $ 10,421
Net additions (withdrawals) $ 140 $ (5,083) $ (2,481) $ (965)
Total account value at end of period $ 234,594 $ 243,843
Individual Retirement Strategies:
Fixed and Variable Annuity Sales and Account Values:
Gross sales $ 1,598 $ 1,693 $ 3,141 $ 3,548
Sales, net of full surrenders and death benefits $ 38 $ (990) $ (607) $ (1,627)
Total account value at end of period $ 123,138 $ 182,411
Group Insurance:
Group Insurance Annualized New Business Premiums (3):
Group life $ 26 $ 16 $ 206 $ 191
Group disability 17 35 147 155
Total $ 43 $ 51 $ 353 $ 346
Individual Life:
Individual Life Insurance Annualized New Business Premiums (3):
Term life $ 23 $ 34 $ 47 $ 65
Universal life (4) 22 34 44 61
Variable life 110 112 214 258
Total $ 155 $ 180 $ 305 $ 384
International Businesses:
International Businesses:
International Businesses Annualized New Business Premiums (3)(5):
Actual exchange rate basis $ 457 $ 492 $ 918 $ 998
Constant exchange rate basis $ 480 $ 498 $ 952 $ 1,008
See footnotes on last page.

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Financial Highlights
(in billions, as of end of period, unaudited)
June 30
2022 2021
Assets and Assets Under Management and Administration:
Total assets $ 695.6 $ 926.5
Assets under management (at fair market value):
PGIM $ 1,257.4 $ 1,511.4
U.S. Businesses 132.2 162.6
International Businesses 13.6 13.2
Corporate and Other 6.4 42.8
Total assets under management 1,409.6 1,730.0
Assets under administration 145.9 372.2
Total assets under management and administration $ 1,555.5 $ 2,102.2
See footnotes on last page.

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(1) Adjusted operating income is a non-GAAP measure of performance. See NON-GAAP MEASURES within the earnings release for additional information. Adjusted operating income, when presented at the segment level, is also a segment performance measure. This segment performance measure, while not a traditional U.S. GAAP measure, is required to be disclosed by U.S. GAAP in accordance with FASB Accounting Standard Codification (ASC) 280 – Segment Reporting. When presented by segment, we have prepared the reconciliation of adjusted operating income to the corresponding consolidated U.S. GAAP total in accordance with the disclosure requirements as articulated in ASC 280.
(2) Represents adjustments not included in the above reconciling items. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of the associated contingent consideration, and goodwill impairments.
(3) Premiums from new sales 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.
(4) Prior period amounts have been reclassified to conform to current period presentation.
(5) Actual amounts reflect the impact of currency fluctuations. Constant amounts reflect foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 104 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

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Document

Table of Contents

Exhibit 99.2

Prudential Financial, Inc. (PRU)
Quarterly Financial Supplement
Second Quarter 2022
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
Second Quarter 2022
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
Combined Statements of Operations - Retirement Strategies 13
Statements of Operations -InstitutionalRetirement Strategies 14
Institutional Retirement StrategiesSales Results and Account Values 15
Statements of Operations - IndividualRetirement Strategies 16
Individual Retirement Strategies SalesResultsand Account Values 17
Individual Retirement StrategiesAccount ValueActivity 18
Individual Retirement StrategiesLiving Benefit Features 19
Individual Retirement Strategies Death Benefit Features 20
Statements of Operations - Group Insurance 21
Group Insurance Supplementary Information 22
Statements of Operations - Individual Life 23
Individual Life Supplementary Information 24
Statements of Operations - Assurance IQ 25
INTERNATIONAL BUSINESSES
Combined Statements of Operations 26
Statements of Operations - Life Planner 27
Statements of Operations - Gibraltar Life and Other 28
Sales Results and Supplementary Information 29
CORPORATE AND OTHER
Statements of Operations 31
INVESTMENT PORTFOLIO
Investment Portfolio Composition 32
Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations 33
Investment Results 34
Investment Results - Japanese Insurance Operations 35
Investment Results - Excluding Japanese Insurance Operations 36
INCOME STATEMENT IMPACT FROM ANNUALASSUMPTION UPDATES AND OTHER REFINEMENTS 37
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES 38
KEY DEFINITIONS AND FORMULAS 40
RATINGS AND INVESTOR INFORMATION 43

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Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
In October 2021, we announced the creation of Retirement Strategies, a new U.S. business that would serve the retirement needs of both our institutional and individual customers by bringing the institutional investment and pension solutions offered through our Retirement business together with the financial solutions and capabilities of our Individual Annuities business. As of the second quarter of 2022, this new structure has been fully operationalized; therefore, the results of our former Retirement segment (now known as the “Institutional Retirement Strategies” operating segment) and our former Individual Annuities segment (now known as the “Individual Retirement Strategies” operating segment) have been aggregated into the Retirement Strategies segment. Prior periods have been updated to conform to this new presentation.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
FINANCIAL METRICS SUMMARY
(in millions, except per share and return on equity data)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022 % change
Earnings
Adjusted operating income (loss) before income taxes:
PGIM 315 327 350 188 206 966 394 -59%
U.S. Businesses 1,047 1,090 895 943 370 1,890 1,313 -31%
International Businesses 803 887 829 801 555 1,674 1,356 -19%
Corporate and Other (336) (460) (489) (366) (259) (658) (625) 5%
Total adjusted operating income before income taxes 1,829 1,844 1,585 1,566 872 3,872 2,438 -37%
Income taxes, applicable to adjusted operating income 389 357 358 348 208 814 556 -32%
After-tax adjusted operating income 1,440 1,487 1,227 1,218 664 3,058 1,882 -38%
Income (loss) attributable to Prudential Financial, Inc. 2,158 1,530 1,208 (31) (565) 4,986 (596) -112%
Return on Equity
Operating Return on Average Equity (based on adjusted operating income) (1) 14.2 % 14.5 % 11.8 % 11.8 % 6.6 % 15.4 % 9.3 %
Return on Average Equity (based on net income (loss)) 14.3 % 9.8 % 7.8 % -0.2 % -6.3 % 15.9 % -2.7 %
Distributions to Shareholders
Dividends paid 460 451 443 462 457 927 919 -1%
Share repurchases 875 875 375 375 375 1,250 750 -40%
Total capital returned 1,335 1,326 818 837 832 2,177 1,669 -23%
Per Share Data
Net income (loss) (diluted) (2) 5.40 3.90 3.13 (0.10) (1.53) 12.39 (1.62) -113%
Adjusted Operating Income (diluted) 3.60 3.78 3.18 3.17 1.74 7.60 4.91 -35%
Shareholder dividends 1.15 1.15 1.15 1.20 1.20 2.30 2.40 4%
Book value 160.31 160.29 161.26 115.28 74.72
Book value excluding AOCI and FX (3) 104.39 106.85 108.72 107.16 104.19
Shares Outstanding
Weighted average number of common shares (basic) 391.1 383.8 377.7 376.1 374.4 393.7 375.3 -5%
Weighted average number of common shares (diluted) 394.1 386.8 380.9 379.1 377.1 396.4 378.1 -5%
End of period common shares (basic) 386.8 378.9 376.3 375.7 372.6
End of period common shares (diluted) 393.3 386.1 383.7 381.5 377.9
__________
(1) Operating Return on Average Equity (based on adjusted operating income) is a non-GAAP measure and represents adjusted operating income after-tax, annualized for interim periods, divided by average Prudential Financial, Inc. equity excluding accumulated other comprehensive income and adjusted to remove amounts included for foreign currency exchange rate remeasurement as described on page 3.
(2) For the three months ended June 30, 2022 and March 31, 2022, and for the six months ended June 30, 2022 weighted average shares for basic earnings per share is used for calculating diluted earnings per share because dilutive shares and dilutive earnings per share are not applicable when a net loss is reported. As a result of the net loss attributable to Prudential Financial available to holders of Common Stock for the three months ended June 30, 2022 and March 31, 2022, and for the six months ended June 30, 2022 all potential stock options and compensation programs were considered antidilutive.
(3) AOCI represents accumulated other comprehensive income and FX represents the remeasurement of foreign currency. See page 3 for further details.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022
Earnings per share of Common Stock (diluted):
After-tax adjusted operating income 3.60 3.78 3.18 3.17 1.74 7.60 4.91
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments 0.91 0.25 0.30 (3.59) (6.23) 3.56 (9.81)
Market experience updates 0.57 (0.51) 1.10 (0.02) 1.41 1.33 1.39
Divested and Run-off Businesses:
Closed Block division 0.08 0.07 0.13 0.06 0.03 0.16 0.10
Other Divested and Run-off Businesses 0.86 0.12 0.75 (0.79) 1.07 0.97 0.27
Difference in earnings allocated to participating unvested share-based payment awards (0.03) — — 0.03 0.01 (0.07) 0.03
Other adjustments (1) (0.03) (0.02) (2.83) (0.04) — (0.07) (0.04)
Total reconciling items, before income taxes 2.36 (0.09) (0.55) (4.35) (3.71) 5.88 (8.06)
Income taxes, not applicable to adjusted operating income 0.56 (0.21) (0.50) (1.08) (0.44) 1.09 (1.53)
Total reconciling items, after income taxes 1.80 0.12 (0.05) (3.27) (3.27) 4.79 (6.53)
Net income (loss) attributable to Prudential Financial, Inc. 5.40 3.90 3.13 (0.10) (1.53) 12.39 (1.62)
Weighted average number of outstanding common shares (basic) 391.1 383.8 377.7 376.1 374.4 393.7 375.3
Weighted average number of outstanding common shares (diluted) 394.1 386.8 380.9 379.1 377.1 396.4 378.1
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc. 2,158 1,530 1,208 (31) (565) 4,986 (596)
Less: Earnings allocated to participating unvested share-based payment awards 31 23 17 7 6 75 13
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation 2,127 1,507 1,191 (38) (571) 4,911 (609)
After-tax adjusted operating income 1,440 1,487 1,227 1,218 664 3,058 1,882
Less: Earnings allocated to participating unvested share-based payment awards 20 23 17 17 9 46 26
After-tax adjusted operating income for earnings per share of Common Stock calculation 1,420 1,464 1,210 1,201 655 3,012 1,856
___________
(1) Represents adjustments not included in the above reconciling items, including a goodwill impairment that resulted in a charge in fourth quarter of 2021 related to Assurance IQ. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of the associated contingent consideration.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
OTHER FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2021 2022
2Q 3Q 4Q 1Q 2Q
Capitalization Data (1):
Senior Debt:
Short-term Debt 909 909 722 544 558
Long-term Debt 12,055 11,070 11,003 11,082 11,008
Junior Subordinated Long-term Debt 7,615 7,617 7,619 8,607 8,604
Prudential Financial, Inc. Equity:
Including accumulated other comprehensive income 63,048 61,887 61,876 43,978 28,235
Excluding accumulated other comprehensive income (2) 39,771 40,051 40,552 39,773 38,413
Amount included above for remeasurement of foreign currency (3) (1,287) (1,205) (1,164) (1,107) (962)
Excluding accumulated other comprehensive income and adjusted to remove amount
included for remeasurement of foreign currency (3) 41,058 41,256 41,716 40,880 39,375
Book Value per Share of Common Stock:
Including accumulated other comprehensive income 160.31 160.29 161.26 115.28 74.72
Excluding accumulated other comprehensive income (2) 101.12 103.73 105.69 104.25 101.65
Amount included above for remeasurement of foreign currency (3) (3.27) (3.12) (3.03) (2.91) (2.54)
Excluding accumulated other comprehensive income and adjusted to remove amount
included for remeasurement of foreign currency (3) 104.39 106.85 108.72 107.16 104.19
End of period number of common shares (diluted) 393.3 386.1 383.7 381.5 377.9
Common Stock Price Range (based on closing price):
High 108.51 108.01 114.00 121.38 121.06
Low 92.71 95.71 100.05 102.05 91.33
Close 102.47 105.20 108.24 118.17 95.68
Common Stock market capitalization (1) 39,635 39,860 40,731 44,396 35,650
__________
(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) 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. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
OPERATIONS HIGHLIGHTS
2021 2022
2Q 3Q 4Q 1Q 2Q
Assets Under Management and Administration (in billions) (1)(2):
PGIM:
Institutional customers 618.6 625.3 629.4 593.7 560.7
Retail customers 401.2 395.4 401.4 364.7 314.3
General account 491.6 493.2 493.0 456.2 382.4
Total PGIM 1,511.4 1,513.9 1,523.8 1,414.6 1,257.4
U.S. Businesses 162.6 160.0 163.1 151.9 132.2
International Businesses 13.2 12.1 12.8 13.8 13.6
Corporate and Other 42.8 40.6 42.6 39.8 6.4
Total assets under management 1,730.0 1,726.6 1,742.3 1,620.1 1,409.6
Assets under administration 372.2 372.4 382.5 370.7 145.9
Total assets under management and administration 2,102.2 2,099.0 2,124.8 1,990.8 1,555.5
Distribution Representatives (1):
Prudential Advisors 3,005 2,979 2,846 2,835 2,817
International Life Planners 6,071 6,138 6,024 6,056 5,924
Gibraltar Life Consultants 7,088 7,094 7,100 7,022 6,910
Prudential Advisor Productivity (in thousands) 80 83 106 76 83
__________
(1) As of end of period.
(2) At fair market value.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
COMBINED STATEMENTS OF OPERATIONS
(in millions)
2022 Year-to-date
3Q 4Q 1Q 2Q 2021 2022 % change
Revenues (1):
Premiums 12,651 6,723 7,300 6,634 12,973 13,934 7%
Policy charges and fee income 1,589 1,512 1,454 1,615 2,885 3,069 6%
Net investment income 3,666 3,617 3,413 3,241 6,877 6,654 -3%
Asset management fees, commissions and other income 1,757 1,892 1,490 2,284 3,639 3,774 4%
Total revenues 19,663 13,744 13,657 13,774 26,374 27,431 4%
Benefits and expenses (1):
Insurance and annuity benefits 13,520 7,626 8,035 8,694 14,222 16,729 18%
Interest credited to policyholders' account balances 665 667 655 663 1,351 1,318 -2%
Interest expense 367 362 364 401 745 765 3%
Deferral of acquisition costs (646) (599) (581) (522) (1,299) (1,103) 15%
Amortization of acquisition costs 525 510 535 605 1,045 1,140 9%
General and administrative expenses 3,388 3,593 3,083 3,061 6,438 6,144 -5%
Total benefits and expenses 17,819 12,159 12,091 12,902 22,502 24,993 11%
Adjusted operating income before income taxes 1,844 1,585 1,566 872 3,872 2,438 -37%
Income taxes, applicable to adjusted operating income 357 358 348 208 814 556 -32%
After-tax adjusted operating income 1,487 1,227 1,218 664 3,058 1,882 -38%
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments 98 116 (1,360) (2,350) 1,413 (3,710) -363%
Market experience updates (199) 420 (6) 531 529 525 -1%
Divested and Run-off Businesses:
Closed Block division 27 48 23 13 65 36 -45%
Other Divested and Run-off Businesses 48 284 (299) 402 384 103 -73%
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (3) 12 (22) 21 (50) (1) 98%
Other adjustments (2) (9) (1,077) (17) — (26) (17) 35%
Total reconciling items, before income taxes (38) (197) (1,681) (1,383) 2,315 (3,064) -232%
Income taxes, not applicable to adjusted operating income (98) (188) (417) (197) 431 (614) -242%
Total reconciling items, after income taxes 60 (9) (1,264) (1,186) 1,884 (2,450) -230%
Income (loss) before income taxes and equity in earnings of operating joint ventures 1,806 1,388 (115) (511) 6,187 (626) -110%
Income tax expense (benefit) 259 170 (69) 11 1,245 (58) -105%
Income (loss) before equity in earnings of operating joint ventures 1,547 1,218 (46) (522) 4,942 (568) -111%
Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests (17) (10) 15 (43) 44 (28) -164%
Income (loss) attributable to Prudential Financial, Inc. 1,530 1,208 (31) (565) 4,986 (596) -112%
Earnings attributable to noncontrolling interests 35 34 (13) (7) 1 (20) -2100%
Net income (loss) 1,565 1,242 (44) (572) 4,987 (616) -112%
Less: Income (loss) attributable to noncontrolling interests 35 34 (13) (7) 1 (20) -2100%
Net income (loss) attributable to Prudential Financial, Inc. 1,530 1,208 (31) (565) 4,986 (596) -112%
__________
(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, revenues of Divested and Run-off Businesses, and changes in the fair value of contingent consideration associated with the Assurance IQ acquisition, and include revenues representing equity in earnings of operating joint ventures 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 the Assurance IQ acquisition which are recognized as compensation expense over the requisite service periods and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates. See pages 38 and 39 for reconciliation.
(2) Represents adjustments not included in the above reconciling items, including a goodwill impairment that resulted in a charge of 837 million after-tax, 1,060 million pre-tax, in fourth quarter of 2021 related to Assurance IQ. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of the associated contingent consideration.

All values are in US Dollars.

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
CONSOLIDATED BALANCE SHEETS
(in millions)
06/30/2021 09/30/2021 12/31/2021 03/31/2022 06/30/2022
Assets:
Investments:
Fixed maturities, available-for-sale, at fair value
(net of allowance for credit losses $80; $92; $114; $192; $109) (amortized cost $338,942; $332,957; $333,459; $332,640; $319,003) 382,981 373,252 372,410 344,957 306,655
Fixed maturities, held-to-maturity, at amortized cost, net of allowance for credit losses
(net of allowance for credit losses $7; $6; $5; $4; $3) (fair value $1,987; $1,956; $1,803; $1,679; $1,475) 1,662 1,644 1,514 1,432 1,280
Fixed maturities, trading, at fair value
(amortized cost $6,690; $9,583; $8,741; $8,262; $7,354) 6,567 9,548 8,823 7,724 6,272
Assets supporting experience-rated contractholder liabilities, at fair value 24,596 3,424 3,358 3,184 2,785
Equity securities, at fair value
(cost $5,413; $5,100; $5,815; $4,872; $4,502) 8,018 7,727 8,574 7,397 6,402
Commercial mortgage and other loans
(net of allowance for credit losses $172; $117; $119; $121; $196) 64,359 57,786 58,666 59,304 56,840
Policy loans 10,652 10,471 10,386 10,207 10,024
Other invested assets
(net of allowance for credit losses $2; $2; $2; $2; $1) 20,384 20,205 21,833 21,540 21,310
Short-term investments
(net of allowance for credit losses $0; $0; $0; $0; $0) 6,325 4,733 6,635 4,592 6,828
Total investments 525,544 488,790 492,199 460,337 418,396
Cash and cash equivalents 15,145 15,605 12,888 14,086 14,359
Accrued investment income 3,037 2,808 2,855 2,838 2,798
Deferred policy acquisition costs 19,029 18,067 18,192 18,479 18,632
Value of business acquired 1,057 815 771 714 571
Income tax assets — — — — 696
Other assets
(net of allowance for credit losses $15; $16; $19; $20; $21) (1) 21,957 164,645 164,532 151,991 34,534
Separate account assets 340,692 241,852 246,145 229,621 205,613
Total assets 926,461 932,582 937,582 878,066 695,599
Liabilities:
Future policy benefits 289,233 291,721 290,784 284,380 275,096
Policyholders' account balances 159,548 122,337 122,633 122,465 130,352
Securities sold under agreements to repurchase 9,557 9,899 10,185 9,085 8,006
Cash collateral for loaned securities 4,431 4,382 4,251 4,771 5,741
Income tax liabilities 10,196 10,540 9,513 4,501 —
Senior short-term debt 909 909 722 544 558
Senior long-term debt 12,055 11,070 11,003 11,082 11,008
Junior subordinated long-term debt 7,615 7,617 7,619 8,607 8,604
Other liabilities
(net of allowance for credit losses $20; $21; $21; $19; $18) (1) 28,257 169,414 171,845 158,072 21,471
Notes issued by consolidated variable interest entities 284 282 274 260 232
Separate account liabilities 340,692 241,852 246,145 229,621 205,613
Total liabilities 862,777 870,023 874,974 833,388 666,681
Equity:
Accumulated other comprehensive income (loss) 23,277 21,836 21,324 4,205 (10,178)
Other equity 39,771 40,051 40,552 39,773 38,413
Total Prudential Financial, Inc. equity 63,048 61,887 61,876 43,978 28,235
Noncontrolling interests 636 672 732 700 683
Total equity 63,684 62,559 62,608 44,678 28,918
Total liabilities and equity 926,461 932,582 937,582 878,066 695,599
__________
(1) September 30, 2021, December 31, 2021 and March 31, 2022 balances include the carrying amounts of Assets and Liabilities "held-for-sale" related to the April 2022 dispositions of the Full Service Retirement Business and a portion of Individual Retirement Strategies' Traditional Variable Annuity Block of Business.

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
COMBINING BALANCE SHEETS
(in millions)
As of June 30, 2022
Consolidated PFI Closed Block Division PFI Excluding Closed Block Division PGIM U.S. Businesses International Businesses Corporate and Other
Assets:
Total investments 418,396 51,061 367,335 3,441 168,022 172,496 23,376
Deferred policy acquisition costs 18,632 179 18,453 — 11,122 7,679 (348)
Other assets 52,958 1,357 51,601 4,173 29,712 9,458 8,258
Separate account assets 205,613 — 205,613 41,874 166,861 — (3,122)
Total assets 695,599 52,597 643,002 49,488 375,717 189,633 28,164
Liabilities:
Future policy benefits 275,096 44,934 230,162 — 102,266 118,471 9,425
Policyholders' account balances 130,352 4,664 125,688 — 72,270 45,125 8,293
Debt 20,170 — 20,170 1,729 7,889 289 10,263
Other liabilities 35,450 4,445 31,005 2,447 11,015 10,607 6,936
Separate account liabilities 205,613 — 205,613 41,874 166,861 — (3,122)
Total liabilities 666,681 54,043 612,638 46,050 360,301 174,492 31,795
Equity:
Accumulated other comprehensive loss (10,178) (107) (10,071) (162) (5,516) (2,056) (2,337)
Other equity 38,413 (1,351) 39,764 2,573 20,844 17,161 (814)
Total Prudential Financial, Inc. equity 28,235 (1,458) 29,693 2,411 15,328 15,105 (3,151)
Noncontrolling interests 683 12 671 1,027 88 36 (480)
Total equity 28,918 (1,446) 30,364 3,438 15,416 15,141 (3,631)
Total liabilities and equity 695,599 52,597 643,002 49,488 375,717 189,633 28,164
As of December 31, 2021
Consolidated PFI Closed Block Division PFI Excluding Closed Block Division PGIM U.S. Businesses International Businesses Corporate and Other
Assets:
Total investments 492,199 58,800 433,399 4,808 191,928 204,475 32,188
Deferred policy acquisition costs 18,192 188 18,004 — 10,714 7,658 (368)
Other assets (1) 181,046 991 180,055 4,828 70,007 10,603 94,617
Separate account assets 246,145 — 246,145 43,930 205,951 — (3,736)
Total assets 937,582 59,979 877,603 53,566 478,600 222,736 122,701
Liabilities:
Future policy benefits 290,784 45,596 245,188 — 108,439 127,661 9,088
Policyholders' account balances 122,633 4,737 117,896 — 59,987 49,503 8,406
Debt 19,344 — 19,344 1,698 8,513 166 8,967
Other liabilities (1) 196,068 11,086 184,982 4,192 65,038 16,125 99,627
Separate account liabilities 246,145 — 246,145 43,930 205,951 — (3,736)
Total liabilities 874,974 61,419 813,555 49,820 447,928 193,455 122,352
Equity:
Accumulated other comprehensive income 21,324 (46) 21,370 (48) 9,218 12,182 18
Other equity 40,552 (1,406) 41,958 2,721 21,362 17,062 813
Total Prudential Financial, Inc. equity 61,876 (1,452) 63,328 2,673 30,580 29,244 831
Noncontrolling interests 732 12 720 1,073 92 37 (482)
Total equity 62,608 (1,440) 64,048 3,746 30,672 29,281 349
Total liabilities and equity 937,582 59,979 877,603 53,566 478,600 222,736 122,701
______________
(1) Balances include the carrying amounts of Assets and Liabilities "held-for-sale" related to the April 2022 dispositions of the Full Service Retirement Business and a portion of Individual Retirement Strategies' Traditional Variable Annuity Block of Business.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED
(in millions)
As of December 31, 2021
Senior 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 4,978 8,604 13,582 98 4,975 7,619 12,692
Operating Debt 5,653 — 6,040 420 5,650 — 6,070
Limited recourse and non-recourse borrowing 377 — 548 204 378 — 582
Total Debt 11,008 8,604 20,170 722 11,003 7,619 19,344
As of December 31, 2021
The Prudential The Prudential
Insurance Company Other Prudential Insurance Company Other
of America (1)(2) Affiliates Total Debt Financial, Inc. of America (1)(2) Affiliates Total Debt
Borrowings by sources:
Capital Debt 444 46 13,582 12,096 444 152 12,692
Operating Debt 435 — 6,040 5,602 468 — 6,070
Limited recourse and non-recourse borrowing 205 343 548 — 274 308 582
Total Debt 1,084 389 20,170 17,698 1,186 460 19,344
__________
(1) Includes Prudential Funding, LLC.
(2) Capital Debt at The Prudential Insurance Company of America includes 344 million of surplus notes as of June 30, 2022 and 344 million as of December 31, 2021.

All values are in US Dollars.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
STATEMENTS OF OPERATIONS - PGIM
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022 % change
Revenues (1):
Premiums — — — — — — — —
Policy charges and fee income — — — — — — — —
Net investment income 71 13 47 (4) (14) 97 (18) -119%
Asset management fees, commissions and other income 938 1,059 1,051 930 843 2,226 1,773 -20%
Total revenues 1,009 1,072 1,098 926 829 2,323 1,755 -24%
Benefits and expenses (1):
Insurance and annuity benefits — — — — — — — —
Interest credited to policyholders' account balances — — — — — — — —
Interest expense 6 6 6 6 10 13 16 23%
Deferral of acquisition costs (1) (1) (1) (1) — (3) (1) 67%
Amortization of acquisition costs 1 2 1 1 1 3 2 -33%
General and administrative expenses 688 738 742 732 612 1,344 1,344 —%
Total benefits and expenses 694 745 748 738 623 1,357 1,361 —%
Adjusted operating income before income taxes 315 327 350 188 206 966 394 -59%
Total revenues 1,009 1,072 1,098 926 829 2,323 1,755 -24%
Less: Passthrough distribution revenue 29 30 29 19 29 61 48 -21%
Less: Revenue associated with consolidations 35 46 19 15 (21) 6 (6) -200%
Total adjusted revenues (2) 945 996 1,050 892 821 2,256 1,713 -24%
Adjusted operating margin (2)(3) 33.3 % 32.8 % 33.3 % 21.1 % 25.1 % 42.8 % 23.0 %
__________
(1) Revenues exclude realized investment gains, net of losses. Benefits and expenses include charges for income attributable to 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 24.8%, 20.3%, 31.9%, 30.5%, and 31.2% for the three months ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and June 30, 2021, respectively, and 22.5% and 41.6% for the six months ended June 30, 2022 and June 30, 2021, respectively.

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
PGIM - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION
2022 Year-to-date
3Q 4Q 1Q 2Q 2021 2022 % change
Supplementary Revenue Information (in millions):
Analysis of revenues by type:
Asset management fees 847 857 809 756 1,598 1,565 -2%
Other related revenues (1) 92 143 19 17 168 36 -79%
Service, distribution and other revenues 133 98 98 56 557 154 -72%
Total PGIM revenues 1,072 1,098 926 829 2,323 1,755 -24%
Analysis of asset management fees by source:
Institutional customers 366 376 363 357 697 720 3%
Retail customers 332 334 301 274 609 575 -6%
General account 149 147 145 125 292 270 -8%
Total asset management fees 847 857 809 756 1,598 1,565 -2%
Supplementary Assets Under Management Information (at fair market value) (in billions):
Public Fixed Income Real Estate Private Credit and Other Alternatives Multi-Asset Total
Institutional customers 408.0 74.2 30.9 1.3 560.7
Retail customers 140.7 2.0 0.8 71.5 314.3
General account 251.8 55.6 71.5 — 382.4
Total 800.5 131.8 103.2 72.8 1,257.4
Public Fixed Income Real Estate Private Credit and Other Alternatives Multi-Asset Total
Institutional customers 471.2 54.2 24.4 6.6 618.6
Retail customers 178.7 1.8 0.7 74.4 401.2
General account 337.5 69.6 79.7 — 491.6
Total 987.4 125.6 104.8 81.0 1,511.4
__________
(1) Other related revenues, net of related expenses are 2 million, 8 million, 87 million, 56 million, and 62 million for the three months ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and June 30, 2021, respectively, and 10 million and 119 million for the six months ended June 30, 2022 and June 30, 2021, respectively.

All values are in US Dollars.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
PGIM - SUPPLEMENTARY ASSETS UNDER MANAGEMENT INFORMATION
(in billions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022
Institutional Customers - Assets Under Management (at fair market value):
Assets gathered by Investment Management & Advisory Services sales force:
Beginning assets under management 528.6 555.6 562.4 568.0 536.9 550.2 568.0
Additions 23.0 14.0 20.2 16.8 24.6 44.2 41.4
Withdrawals (17.4) (13.3) (16.7) (16.5) (16.5) (37.5) (33.0)
Change in market value 18.8 1.7 4.0 (34.2) (46.5) (0.6) (80.7)
Net money market flows 0.8 (1.1) (1.9) 4.4 (3.4) (1.7) 1.0
Other 1.8 5.5 — (1.6) 44.6 1.0 43.0
Ending assets under management 555.6 562.4 568.0 536.9 539.7 555.6 539.7
Affiliated institutional assets under management 63.0 62.9 61.4 56.8 21.0 63.0 21.0
Total assets managed for institutional customers at end of period 618.6 625.3 629.4 593.7 560.7 618.6 560.7
Net institutional additions, excluding money market activity 5.6 0.7 3.5 0.3 8.1 6.7 8.4
Retail Customers - Assets Under Management (at fair market value):
Assets gathered by Investment Management & Advisory Services sales force:
Beginning assets under management 250.8 266.0 262.8 265.8 238.7 252.5 265.8
Additions 19.2 16.9 23.7 20.2 16.1 48.9 36.3
Withdrawals (19.5) (17.3) (27.3) (24.8) (24.4) (44.8) (49.2)
Change in market value 16.9 1.0 5.0 (22.5) (33.0) 10.8 (55.5)
Net money market flows 0.2 0.3 0.1 0.6 0.3 0.3 0.9
Other (1.6) (4.1) 1.5 (0.6) 6.3 (1.7) 5.7
Ending assets under management 266.0 262.8 265.8 238.7 204.0 266.0 204.0
Affiliated retail assets under management 135.2 132.6 135.6 126.0 110.3 135.2 110.3
Total assets managed for retail customers at end of period 401.2 395.4 401.4 364.7 314.3 401.2 314.3
Net retail additions (withdrawals), excluding money market activity (0.3) (0.4) (3.6) (4.6) (8.3) 4.1 (12.9)

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022 % change
Revenues (1):
Premiums 2,545 8,639 3,054 3,074 3,271 5,029 6,345 26%
Policy charges and fee income 1,331 1,519 1,440 1,377 1,528 2,736 2,905 6%
Net investment income 1,924 2,110 2,006 1,998 1,802 3,820 3,800 -1%
Asset management fees, commissions and other income 845 880 991 809 1,760 1,660 2,569 55%
Total revenues 6,645 13,148 7,491 7,258 8,361 13,245 15,619 18%
Benefits and expenses (1):
Insurance and annuity benefits 3,550 9,946 4,349 4,278 5,608 7,247 9,886 36%
Interest credited to policyholders' account balances 433 436 438 430 450 875 880 1%
Interest expense 199 200 201 202 217 397 419 6%
Deferral of acquisition costs (304) (294) (301) (258) (253) (645) (511) 21%
Amortization of acquisition costs 252 247 247 241 323 487 564 16%
General and administrative expenses 1,468 1,523 1,662 1,422 1,646 2,994 3,068 2%
Total benefits and expenses 5,598 12,058 6,596 6,315 7,991 11,355 14,306 26%
Adjusted operating income before income taxes 1,047 1,090 895 943 370 1,890 1,313 -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, and changes in the fair value of contingent consideration associated with the Assurance IQ acquisition. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, goodwill impairment and certain components of the Assurance IQ acquisition which are recognized as compensation expense over the requisite service periods and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates.

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022 % change
Revenues (1):
Premiums 1,120 7,202 1,522 1,592 1,802 2,171 3,394 56%
Policy charges and fee income 666 672 664 615 507 1,318 1,122 -15%
Net investment income 1,175 1,301 1,221 1,230 1,070 2,324 2,300 -1%
Asset management fees, commissions and other income 437 471 460 413 1,399 886 1,812 105%
Total revenues 3,398 9,646 3,867 3,850 4,778 6,699 8,628 29%
Benefits and expenses (1):
Insurance and annuity benefits 1,636 7,735 2,011 2,031 2,301 3,060 4,332 42%
Interest credited to policyholders' account balances 179 177 173 167 181 357 348 -3%
Interest expense 9 9 7 8 15 16 23 44%
Deferral of acquisition costs (101) (95) (87) (81) (87) (207) (168) 19%
Amortization of acquisition costs 158 146 142 134 111 293 245 -16%
General and administrative expenses 595 604 592 551 554 1,200 1,105 -8%
Total benefits and expenses 2,476 8,576 2,838 2,810 3,075 4,719 5,885 25%
Adjusted operating income before income taxes 922 1,070 1,029 1,040 1,703 1,980 2,743 39%
__________
(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.

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES - INSTITUTIONAL RETIREMENT STRATEGIES
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022 % change
Revenues (1):
Premiums 1,094 7,178 1,502 1,554 1,799 2,115 3,353 59%
Policy charges and fee income 9 9 9 8 10 18 18 —%
Net investment income 952 1,054 990 968 892 1,877 1,860 -1%
Asset management fees, commissions and other income 115 145 139 113 93 262 206 -21%
Total revenues 2,170 8,386 2,640 2,643 2,794 4,272 5,437 27%
Benefits and expenses (1):
Insurance and annuity benefits 1,570 7,662 1,950 1,935 2,259 2,913 4,194 44%
Interest credited to policyholders' account balances 89 85 84 81 76 179 157 -12%
Interest expense 4 4 3 4 (2) 7 2 -71%
Deferral of acquisition costs (2) (8) (3) (2) (3) (7) (5) 29%
Amortization of acquisition costs 4 9 5 5 3 8 8 —%
General and administrative expenses 55 63 58 52 63 108 115 6%
Total benefits and expenses 1,720 7,815 2,097 2,075 2,396 3,208 4,471 39%
Adjusted operating income before income taxes 450 571 543 568 398 1,064 966 -9%
__________
(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.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
U.S. BUSINESSES - RETIREMENT STRATEGIES - INSTITUTIONAL RETIREMENT STRATEGIES SALES RESULTS AND ACCOUNT VALUES
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022
Beginning total account value 247,496 243,843 246,068 245,720 239,102 243,387 245,720
Additions 661 8,045 3,501 2,278 3,700 10,421 5,978
Withdrawals and benefits (5,744) (4,546) (4,893) (4,899) (3,560) (11,386) (8,459)
Change in market value, interest credited and interest income 1,346 618 570 (1,570) (2,389) 693 (3,959)
Other (1) 84 (1,892) 474 (2,427) (2,259) 728 (4,686)
Ending total account value 243,843 246,068 245,720 239,102 234,594 243,843 234,594
Net additions (withdrawals) (5,083) 3,499 (1,392) (2,621) 140 (965) (2,481)
Amounts included in ending total account value above:
Investment-only stable value wraps 72,857 71,962 70,207 68,582 71,125
International reinsurance (2)(3) 81,402 79,993 82,406 81,816 74,021
Group annuities and other products (3) 89,584 94,113 93,107 88,704 89,448
Ending total account value 243,843 246,068 245,720 239,102 234,594
__________
(1) 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.
(2) Represents notional amounts based on present value of future benefits under international reinsurance contracts.
(3) The amounts for second and third quarters of 2021 have been reclassified to conform to current period presentation.

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022 % change
Revenues (1):
Premiums 26 24 20 38 3 56 41 -27%
Policy charges and fee income 657 663 655 607 497 1,300 1,104 -15%
Net investment income 223 247 231 262 178 447 440 -2%
Asset management fees, commissions and other income 322 326 321 300 1,306 624 1,606 157%
Total revenues 1,228 1,260 1,227 1,207 1,984 2,427 3,191 31%
Benefits and expenses (1):
Insurance and annuity benefits 66 73 61 96 42 147 138 -6%
Interest credited to policyholders' account balances 90 92 89 86 105 178 191 7%
Interest expense 5 5 4 4 17 9 21 133%
Deferral of acquisition costs (99) (87) (84) (79) (84) (200) (163) 19%
Amortization of acquisition costs 154 137 137 129 108 285 237 -17%
General and administrative expenses 540 541 534 499 491 1,092 990 -9%
Total benefits and expenses 756 761 741 735 679 1,511 1,414 -6%
Adjusted operating income before income taxes 472 499 486 472 1,305 916 1,777 94%
__________
(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.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES SALES RESULTS AND ACCOUNT VALUES
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022
Variable Annuities:
Beginning total account value 170,630 176,554 172,813 176,439 162,936 170,546 176,439
Sales: FlexGuard Suite (1)(2) 1,479 1,317 1,369 1,405 1,451 3,053 2,856
Other variable annuities (2)(3) 156 146 137 114 80 332 194
Total sales 1,635 1,463 1,506 1,519 1,531 3,385 3,050
Full surrenders and death benefits (2,658) (2,545) (2,625) (2,156) (1,528) (5,112) (3,684)
Sales, net of full surrenders and death benefits (1,023) (1,082) (1,119) (637) 3 (1,727) (634)
Partial withdrawals and other benefit payments (1,238) (1,237) (1,522) (1,371) (915) (2,570) (2,286)
Net flows (2,261) (2,319) (2,641) (2,008) (912) (4,297) (2,920)
Change in market value, interest credited, and other (4) 9,106 (518) 7,176 (10,643) (43,832) 12,140 (54,475)
Policy charges (921) (904) (909) (852) (618) (1,835) (1,470)
Ending total account value 176,554 172,813 176,439 162,936 117,574 176,554 117,574
Variable Annuities Account Value by Product:
FlexGuard Suite (1)(2) 5,534 6,824 8,699 9,625 9,533 5,534 9,533
Other variable annuities (2)(3) 171,020 165,989 167,740 153,311 108,041 171,020 108,041
Ending total account value 176,554 172,813 176,439 162,936 117,574 176,554 117,574
Fixed Annuities and other products:
Beginning total account value 5,812 5,857 5,865 5,866 5,858 5,734 5,866
Sales 58 37 45 24 67 163 91
Full surrenders and death benefits (25) (28) (28) (32) (32) (63) (64)
Sales, net of full surrenders and death benefits 33 9 17 (8) 35 100 27
Partial withdrawals and other benefit payments (90) (97) (99) (96) (79) (187) (175)
Net flows (57) (88) (82) (104) (44) (87) (148)
Interest credited and other 102 96 84 96 (249) 210 (153)
Policy charges — — (1) — (1) — (1)
Ending total account value, gross 5,857 5,865 5,866 5,858 5,564 5,857 5,564
Reinsurance ceded (459) (463) (477) (481) (514) (459) (514)
Ending total account value, net 5,398 5,402 5,389 5,377 5,050 5,398 5,050
SALES BY DISTRIBUTION CHANNEL:
Variable and Fixed Annuities (5):
Insurance Agents 630 578 635 614 607 1,243 1,221
Wirehouses 131 90 113 84 58 265 142
Independent Marketing Organization 3 3 3 1 2 9 3
Independent Financial Planners 860 762 725 766 843 1,892 1,609
Bank Distribution 69 67 75 78 88 139 166
Total 1,693 1,500 1,551 1,543 1,598 3,548 3,141
__________
(1) Includes Prudential FlexGuard and FlexGuard Income.
(2) Prior period amounts have been reclassified to conform to current period presentation.
(3) Includes Prudential Premier Investment (PPI), MyRock and legacy products with and without guaranteed minimum income and withdrawal benefits.
(4) Includes impact from the sale of the Traditional Variable Annuity Block of Business.
(5) Amounts represent gross sales.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES ACCOUNT VALUE ACTIVITY
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022
Account Values in General Account (1):
Beginning balance 15,450 17,102 18,300 20,062 20,928 13,843 20,062
Premiums and deposits 1,512 1,341 1,359 1,366 1,596 3,152 2,962
Full surrenders and death benefits (94) (93) (101) (106) (225) (201) (331)
Premiums and deposits net of full surrenders and death benefits 1,418 1,248 1,258 1,260 1,371 2,951 2,631
Partial withdrawals and other benefit payments (150) (159) (184) (174) (124) (311) (298)
Net flows 1,268 1,089 1,074 1,086 1,247 2,640 2,333
Change in market value, interest credited and other (2) 392 140 701 72 (2,461) 596 (2,389)
Net transfers (to) from separate account (8) (31) (12) (292) (283) 23 (575)
Policy charges — — (1) — (1) — (1)
Ending balance, gross 17,102 18,300 20,062 20,928 19,430 17,102 19,430
Reinsurance ceded (459) (463) (477) (481) (514) (459) (514)
Ending balance, net 16,643 17,837 19,585 20,447 18,916 16,643 18,916
Account Values in Separate Account (1):
Beginning balance 160,992 165,309 160,378 162,243 147,866 162,437 162,243
Premiums and deposits 181 159 192 177 2 396 179
Full surrenders and death benefits (2,589) (2,480) (2,552) (2,082) (1,335) (4,974) (3,417)
Premiums and deposits net of full surrenders and death benefits (2,408) (2,321) (2,360) (1,905) (1,333) (4,578) (3,238)
Partial withdrawals and other benefit payments (1,178) (1,175) (1,437) (1,293) (870) (2,446) (2,163)
Net flows (3,586) (3,496) (3,797) (3,198) (2,203) (7,024) (5,401)
Change in market value, interest credited and other (2) 8,816 (562) 6,559 (10,619) (41,620) 11,754 (52,239)
Net transfers (to) from general account 8 31 12 292 283 (23) 575
Policy charges (921) (904) (909) (852) (618) (1,835) (1,470)
Ending balance 165,309 160,378 162,243 147,866 103,708 165,309 103,708
__________
(1) Premiums and deposits, and surrenders and withdrawals, are classified within the general account and separate account for purposes of this presentation based on the allocation of customer funds. For example, premiums allocated by customers to separate account investments at the time of sale, while remitted through the company's general account, are shown as separate account premium in this display, rather than as general account premium and transfers to the separate account.
(2) Includes impact from the sale of the Traditional Variable Annuity Block of Business.

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES LIVING BENEFIT FEATURES
(in millions)
2021 2022
2Q 3Q 4Q 1Q 2Q
ACCOUNT VALUE AND NET AMOUNT AT RISK (1):
Variable Annuity Account Values
Guaranteed minimum accumulation benefits 1,831 1,743 1,702 1,543 546
Guaranteed minimum withdrawal benefits 319 302 302 271 112
Guaranteed minimum income benefits 2,547 2,430 2,444 2,202 1,631
Guaranteed minimum withdrawal & income benefits - risk retained by Prudential 138,097 133,982 135,293 123,571 87,601
Guaranteed minimum withdrawal & income benefits - externally reinsured 3,299 3,228 3,303 3,068 2,660
Total 146,093 141,685 143,044 130,655 92,550
Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature - risk retained by Prudential 115,152 111,582 113,110 103,805 73,070
Account Values with Auto-Rebalancing Feature - externally reinsured 3,299 3,228 3,303 3,068 2,660
Account Values without Auto-Rebalancing Feature 27,642 26,875 26,631 23,782 16,820
Total 146,093 141,685 143,044 130,655 92,550
Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature - risk retained by Prudential 2,898 3,287 2,931 4,485 5,754
Net Amount at Risk without Auto-Rebalancing Feature 422 450 409 734 1,526
Total 3,320 3,737 3,340 5,219 7,280
__________
(1) At end of period.

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES DEATH BENEFIT FEATURES
(in millions)
2021 2022
2Q 3Q 4Q 1Q 2Q
ACCOUNT VALUE AND NET AMOUNT AT RISK (1):
Variable Annuity Account Values
Return of net deposits:
Account value 134,910 130,968 132,265 120,838 84,119
Net amount at risk 200 203 199 311 640
Minimum return, anniversary contract value, or maximum contract value:
Account value 29,959 28,912 29,121 26,565 19,122
Net amount at risk 2,049 2,419 2,055 3,187 4,529
Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature 118,450 114,810 116,413 106,873 75,730
Account Values without Auto-Rebalancing Feature 46,419 45,070 44,973 40,530 27,511
Total 164,869 159,880 161,386 147,403 103,241
Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature 1,027 1,334 1,066 1,910 2,961
Net Amount at Risk without Auto-Rebalancing Feature 1,222 1,288 1,188 1,588 2,208
Total 2,249 2,622 2,254 3,498 5,169
__________
(1) At end of period.

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - GROUP INSURANCE
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022 % change
Revenues (1):
Premiums 1,201 1,217 1,259 1,219 1,208 2,410 2,427 1%
Policy charges and fee income 158 169 174 181 151 352 332 -6%
Net investment income 133 142 131 124 117 265 241 -9%
Asset management fees, commissions and other income 26 25 26 20 20 47 40 -15%
Total revenues 1,518 1,553 1,590 1,544 1,496 3,074 3,040 -1%
Benefits and expenses (1):
Insurance and annuity benefits 1,207 1,394 1,493 1,351 1,145 2,595 2,496 -4%
Interest credited to policyholders' account balances 43 41 40 36 38 90 74 -18%
Interest expense 1 — 1 1 1 2 2 —%
Deferral of acquisition costs — — (3) (2) — — (2) —%
Amortization of acquisition costs 2 1 1 1 2 3 3 —%
General and administrative expenses 248 252 263 268 257 499 525 5%
Total benefits and expenses 1,501 1,688 1,795 1,655 1,443 3,189 3,098 -3%
Adjusted operating income (loss) before income taxes 17 (135) (205) (111) 53 (115) (58) 50%
__________
(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.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
U.S. BUSINESSES - GROUP INSURANCE SUPPLEMENTARY INFORMATION
(dollar amounts in millions, or as otherwise noted)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022
Annualized New Business Premiums:
Group life 16 51 23 180 26 191 206
Group disability 35 17 49 130 17 155 147
Total 51 68 72 310 43 346 353
Future Policy Benefits (1):
Group life 2,482 2,574 2,756 2,606 2,480
Group disability 2,906 2,954 3,030 3,066 3,089
Total 5,388 5,528 5,786 5,672 5,569
Policyholders' Account Balances (1):
Group life 6,624 6,380 6,175 5,992 5,978
Group disability 131 131 131 137 133
Total 6,755 6,511 6,306 6,129 6,111
Separate Account Liabilities (1):
Group life 27,185 27,345 27,097 25,938 23,772
Group Life Insurance:
Gross premiums, policy charges and fee income (2) 1,068 1,004 1,053 1,059 1,103 2,104 2,162
Earned premiums 904 915 928 916 887 1,827 1,803
Earned policy charges and fee income 138 148 151 158 127 311 285
Benefits ratio (3) 91.1 % 105.2 % 109.8 % 103.6 % 87.7 % 97.8 % 95.9 %
Administrative operating expense ratio 11.0 % 11.7 % 11.5 % 10.7 % 10.7 % 10.9 % 10.7 %
Persistency ratio 96.6 % 96.5 % 96.4 % 96.3 % 96.4 %
Group Disability Insurance:
Gross premiums, policy charges and fee income (2) 317 322 355 340 344 631 684
Earned premiums 297 302 331 303 321 583 624
Earned policy charges and fee income 20 21 23 23 24 41 47
Benefits ratio (3) 80.9 % 85.9 % 87.3 % 73.4 % 73.0 % 80.7 % 73.2 %
Administrative operating expense ratio 32.7 % 32.3 % 31.4 % 31.1 % 32.2 % 32.5 % 31.7 %
Persistency ratio 94.0 % 93.5 % 93.4 % 92.8 % 92.4 %
Total Group Insurance:
Benefits ratio (3) 88.8 % 100.7 % 104.3 % 96.5 % 84.0 % 93.9 % 90.4 %
Administrative operating expense ratio 16.1 % 16.8 % 16.5 % 15.6 % 15.9 % 15.9 % 15.8 %
Net face amount of policies in force (in billions) (4) 1,960 1,976 2,004 2,021 2,068
__________
(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 87.1%, 75.5%, and 84.20% for the three months ended June 30, 2022, respectively, and 91.1%, 80.9%, and 88.7% for the three months ended June 30, 2021, respectively.
(4) At end of period; net of reinsurance.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
U.S. BUSINESSES - STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022 % change
Revenues (1):
Premiums 224 220 273 263 261 448 524 17%
Policy charges and fee income 507 678 602 581 870 1,066 1,451 36%
Net investment income 615 667 653 644 614 1,230 1,258 2%
Asset management fees, commissions and other income 270 274 279 269 263 507 532 5%
Total revenues 1,616 1,839 1,807 1,757 2,008 3,251 3,765 16%
Benefits and expenses (1):
Insurance and annuity benefits 707 817 845 896 2,162 1,592 3,058 92%
Interest credited to policyholders' account balances 211 218 225 227 231 428 458 7%
Interest expense 187 187 190 189 198 375 387 3%
Deferral of acquisition costs (203) (199) (211) (175) (166) (438) (341) 22%
Amortization of acquisition costs 92 100 104 106 210 191 316 65%
General and administrative expenses 476 506 573 463 698 1,001 1,161 16%
Total benefits and expenses 1,470 1,629 1,726 1,706 3,333 3,149 5,039 60%
Adjusted operating income (loss) before income taxes 146 210 81 51 (1,325) 102 (1,274) -1349%
__________
(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.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
U.S. BUSINESSES - INDIVIDUAL LIFE SUPPLEMENTARY INFORMATION
(in millions, or as otherwise noted)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022
ANNUALIZED NEW BUSINESS PREMIUMS (1):
Term life 34 26 24 24 23 65 47
Universal life (2) 34 19 22 22 22 61 44
Variable life 112 144 136 104 110 258 214
Total 180 189 182 150 155 384 305
ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):
Prudential Advisors 40 35 38 35 33 76 68
Third party distribution 140 154 144 115 122 308 237
Total 180 189 182 150 155 384 305
ACCOUNT VALUE ACTIVITY:
Policyholders' Account Balances (3):
Beginning balance 30,385 30,567 30,602 30,876 31,079 29,950 30,876
Premiums and deposits 573 1,103 691 671 623 1,328 1,294
Surrenders and withdrawals (293) (888) (386) (424) (437) (598) (861)
Net sales 280 215 305 247 186 730 433
Benefit payments (57) (77) (52) (60) (60) (121) (120)
Net flows 223 138 253 187 126 609 313
Interest credited and other 374 312 451 367 404 809 771
Net transfers from separate account 101 97 88 168 98 224 266
Policy charges (516) (512) (518) (519) (525) (1,025) (1,044)
Ending balance 30,567 30,602 30,876 31,079 31,182 30,567 31,182
Separate Account Liabilities:
Beginning balance 42,836 45,502 45,555 48,133 45,226 41,428 48,133
Premiums and deposits 646 708 762 658 700 1,386 1,358
Surrenders and withdrawals (294) (258) (272) (238) (237) (562) (475)
Net sales 352 450 490 420 463 824 883
Benefit payments (136) (140) (150) (146) (116) (288) (262)
Net flows 216 310 340 274 347 536 621
Change in market value, interest credited and other 2,847 147 2,639 (2,699) (6,231) 4,348 (8,930)
Net transfers to general account (101) (97) (88) (168) (98) (224) (266)
Policy charges (296) (307) (313) (314) (313) (586) (627)
Ending balance 45,502 45,555 48,133 45,226 38,931 45,502 38,931
NET FACE AMOUNT IN FORCE (in billions) (4):
Term life 241 241 299 299 298
Universal life (2) 97 96 99 98 99
Variable life 145 149 152 149 144
Total 483 486 550 546 541
__________
(1) Excludes corporate-owned life insurance.
(2) The amounts for second, third and fourth quarters of 2021 have been reclassified to conform to current period presentation.
(3) Includes fixed rate funds, alliance deposits, supplementary contracts and deferred revenues on variable products.
(4) 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.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
U.S. BUSINESSES - STATEMENTS OF OPERATIONS - ASSURANCE IQ
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022 % change
Revenues (1):
Premiums — — — — — — — —
Policy charges and fee income — — — — — — — —
Net investment income 1 — 1 — 1 1 1 —%
Asset management fees, commissions and other income 112 110 226 107 78 220 185 -16%
Total revenues 113 110 227 107 79 221 186 -16%
Benefits and expenses (1):
Insurance and annuity benefits — — — — — — — —
Interest credited to policyholders' account balances — — — — — — — —
Interest expense 2 4 3 4 3 4 7 75%
Deferral of acquisition costs — — — — — — — —
Amortization of acquisition costs — — — — — — — —
General and administrative expenses 149 161 234 140 137 294 277 -6%
Total benefits and expenses 151 165 237 144 140 298 284 -5%
Adjusted operating loss before income taxes (38) (55) (10) (37) (61) (77) (98) -27%
__________
(1) Revenues exclude changes in the fair value of contingent consideration associated with the Assurance IQ acquisition. Benefits and expenses exclude goodwill impairment and certain components of the Assurance IQ acquisition which are recognized as compensation expense over the requisite service periods.

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022 % change
Revenues (1):
Premiums 3,547 4,021 3,682 4,234 3,363 7,958 7,597 -5%
Policy charges and fee income 76 86 88 92 101 177 193 9%
Net investment income 1,354 1,376 1,373 1,297 1,286 2,654 2,583 -3%
Asset management fees, commissions and other income 116 135 130 103 (14) 235 89 -62%
Total revenues 5,093 5,618 5,273 5,726 4,736 11,024 10,462 -5%
Benefits and expenses (1):
Insurance and annuity benefits 3,152 3,573 3,289 3,764 3,083 6,988 6,847 -2%
Interest credited to policyholders' account balances 200 195 195 191 179 409 370 -10%
Interest expense 1 1 3 3 5 2 8 300%
Deferral of acquisition costs (320) (367) (307) (328) (286) (681) (614) 10%
Amortization of acquisition costs 264 291 276 305 291 581 596 3%
General and administrative expenses 993 1,038 988 990 909 2,051 1,899 -7%
Total benefits and expenses 4,290 4,731 4,444 4,925 4,181 9,350 9,106 -3%
Adjusted operating income before income taxes 803 887 829 801 555 1,674 1,356 -19%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities and include revenues representing equity in earnings of operating joint ventures. 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. Revenues and Benefits and expenses exclude market experience updates.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - LIFE PLANNER
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022 % change
Revenues (1):
Premiums 1,826 1,983 1,829 2,225 1,762 4,094 3,987 -3%
Policy charges and fee income 41 53 51 53 49 103 102 -1%
Net investment income 549 580 582 574 555 1,082 1,129 4%
Asset management fees, commissions and other income 67 79 73 72 59 134 131 -2%
Total revenues 2,483 2,695 2,535 2,924 2,425 5,413 5,349 -1%
Benefits and expenses (1):
Insurance and annuity benefits 1,652 1,778 1,658 1,979 1,636 3,641 3,615 -1%
Interest credited to policyholders' account balances 46 47 49 49 45 97 94 -3%
Interest expense — 1 2 2 3 1 5 400%
Deferral of acquisition costs (163) (173) (165) (176) (145) (345) (321) 7%
Amortization of acquisition costs 110 128 122 145 128 260 273 5%
General and administrative expenses 431 439 441 447 415 888 862 -3%
Total benefits and expenses 2,076 2,220 2,107 2,446 2,082 4,542 4,528 —%
Adjusted operating income before income taxes 407 475 428 478 343 871 821 -6%
__________
(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 include revenues representing equity in earnings of operating joint ventures. 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. Revenues and Benefits and expenses exclude market experience updates.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - GIBRALTAR LIFE AND OTHER
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022 % change
Revenues (1):
Premiums 1,721 2,038 1,853 2,009 1,601 3,864 3,610 -7%
Policy charges and fee income 35 33 37 39 52 74 91 23%
Net investment income 805 796 791 723 731 1,572 1,454 -8%
Asset management fees, commissions and other income 49 56 57 31 (73) 101 (42) -142%
Total revenues 2,610 2,923 2,738 2,802 2,311 5,611 5,113 -9%
Benefits and expenses (1):
Insurance and annuity benefits 1,500 1,795 1,631 1,785 1,447 3,347 3,232 -3%
Interest credited to policyholders' account balances 154 148 146 142 134 312 276 -12%
Interest expense 1 — 1 1 2 1 3 200%
Deferral of acquisition costs (157) (194) (142) (152) (141) (336) (293) 13%
Amortization of acquisition costs 154 163 154 160 163 321 323 1%
General and administrative expenses 562 599 547 543 494 1,163 1,037 -11%
Total benefits and expenses 2,214 2,511 2,337 2,479 2,099 4,808 4,578 -5%
Adjusted operating income before income taxes 396 412 401 323 212 803 535 -33%
__________
(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 include revenues representing equity in earnings of operating joint ventures. 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. Revenues and Benefits and expenses exclude market experience updates.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022
Actual exchange rate basis (1):
Net premiums, policy charges and fee income:
Japan, excluding Gibraltar Life 1,698 1,845 1,687 2,065 1,580 3,853 3,645
Gibraltar Life 1,756 2,071 1,890 2,048 1,653 3,938 3,701
All other countries 169 191 193 213 231 344 444
Total 3,623 4,107 3,770 4,326 3,464 8,135 7,790
Annualized new business premiums:
Japan, excluding Gibraltar Life 184 183 174 200 159 390 359
Gibraltar Life 261 270 211 205 231 519 436
All other countries 47 51 53 56 67 89 123
Total 492 504 438 461 457 998 918
Annualized new business premiums by distribution channel:
Life Planners 231 234 227 256 226 479 482
Gibraltar Life Consultants 137 150 93 100 140 242 240
Banks 61 71 68 52 33 179 85
Independent Agency 63 49 50 53 58 98 111
Total 492 504 438 461 457 998 918
Constant exchange rate basis (2):
Net premiums, policy charges and fee income:
Japan, excluding Gibraltar Life 1,742 1,896 1,763 2,184 1,747 3,917 3,931
Gibraltar Life 1,802 2,123 1,966 2,165 1,824 4,012 3,989
All other countries 181 201 215 225 231 372 456
Total 3,725 4,220 3,944 4,574 3,802 8,301 8,376
Annualized new business premiums:
Japan, excluding Gibraltar Life 187 186 178 208 174 394 382
Gibraltar Life 262 272 212 207 240 521 447
All other countries 49 51 58 57 66 93 123
Total 498 509 448 472 480 1,008 952
Annualized new business premiums by distribution channel:
Life Planners 236 237 236 265 240 487 505
Gibraltar Life Consultants 138 151 93 101 145 243 246
Banks 61 71 68 52 33 179 85
Independent Agency 63 50 51 54 62 99 116
Total 498 509 448 472 480 1,008 952
__________
(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 104 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

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Table of Contents

Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
2021 2022
2Q 3Q 4Q 1Q 2Q
Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life 386 386 386 385 384
Gibraltar Life 359 358 357 355 348
All other countries 37 39 40 42 42
Total 782 783 783 782 774
Number of individual policies in force at end of period (in thousands) (3):
Japan, excluding Gibraltar Life 4,354 4,385 4,405 4,436 4,447
Gibraltar Life 6,949 6,941 6,907 6,868 6,805
All other countries 615 636 652 664 682
Total 11,918 11,962 11,964 11,968 11,934
International life insurance individual policy persistency:
Life Planner:
13 months 92.4 % 93.1 % 93.1 % 92.8 % 92.7 %
25 months 86.9 % 87.0 % 86.7 % 85.9 % 85.4 %
Gibraltar Life (4):
13 months 95.2 % 95.7 % 95.9 % 95.9 % 95.7 %
25 months 90.0 % 89.8 % 89.9 % 90.1 % 90.2 %
Number of Life Planners at end of period:
Japan 4,595 4,630 4,566 4,557 4,481
All other countries 1,476 1,508 1,458 1,499 1,443
Total Life Planners 6,071 6,138 6,024 6,056 5,924
Gibraltar Life Consultants 7,088 7,094 7,100 7,022 6,910
__________
(1) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 104 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.
(4) Reflects business sold by Life Consultants and Independent Agents.

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
STATEMENTS OF OPERATIONS - CORPORATE AND OTHER
(in millions)
2021 2022 Year-to-date
2Q 3Q 4Q 1Q 2Q 2021 2022 % change
Revenues (1):
Premiums (6) (9) (13) (8) — (14) (8) 43%
Policy charges and fee income (14) (16) (16) (15) (14) (28) (29) -4%
Net investment income 141 167 191 122 167 306 289 -6%
Asset management fees, commissions and other income (250) (317) (280) (352) (305) (482) (657) -36%
Total revenues (129) (175) (118) (253) (152) (218) (405) -86%
Benefits and expenses (1):
Insurance and annuity benefits (10) 1 (12) (7) 3 (13) (4) 69%
Interest credited to policyholders' account balances 34 34 34 34 34 67 68 1%
Interest expense 164 160 152 153 169 333 322 -3%
Deferral of acquisition costs 17 16 10 6 17 30 23 -23%
Amortization of acquisition costs (14) (15) (14) (12) (10) (26) (22) 15%
General and administrative expenses 16 89 201 (61) (106) 49 (167) -441%
Total benefits and expenses 207 285 371 113 107 440 220 -50%
Adjusted operating loss before income taxes (336) (460) (489) (366) (259) (658) (625) 5%
Adjusted operating income (loss) before income taxes comprised as follows:
Investment income 36 40 63 27 50 72 77 7%
Interest expense on debt (211) (209) (199) (198) (209) (419) (407) 3%
Long-term and deferred compensation expense (28) (8) (10) (46) 12 (64) (34) 47%
Other (2) (133) (283) (343) (149) (112) (247) (261) -6%
Adjusted operating loss before income taxes (336) (460) (489) (366) (259) (658) (625) 5%
__________
(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 include consolidating adjustments.
(2) Includes pension and employee benefits and other corporate activities, including consolidating adjustments.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
INVESTMENT PORTFOLIO COMPOSITION
(in millions)
June 30, 2022 December 31, 2021
Closed PFI Excluding Closed PFI Excluding
Total Block Closed Block Division Total Block Closed Block Division
Portfolio Division Amount % of Total Portfolio Division Amount % of Total
244,484 22,881 221,603 61.4 % 305,035 28,167 276,868 65.0 %
1,202 — 1,202 0.3 % 1,413 — 1,413 0.3 %
61,721 9,407 52,314 14.5 % 66,897 10,237 56,660 13.3 %
78 — 78 0.0 % 101 — 101 0.1 %
6,084 1,009 5,075 1.4 % 8,610 1,137 7,473 1.8 %
2,785 — 2,785 0.8 % 3,358 — 3,358 0.8 %
5,740 1,675 4,065 1.1 % 7,875 2,288 5,587 1.3 %
56,526 7,956 48,570 13.4 % 57,387 8,241 49,146 11.6 %
10,024 3,702 6,322 1.7 % 10,386 3,815 6,571 1.5 %
17,186 4,256 12,930 3.6 % 16,843 4,358 12,485 2.9 %
6,821 175 6,646 1.8 % 6,600 557 6,043 1.4 %
412,651 51,061 361,590 100.0 % 484,505 58,800 425,705 100.0 %
5,745 — 5,745 7,694 — 7,694
418,396 51,061 367,335 492,199 58,800 433,399
Fixed Maturities by Credit Quality (3)(5): June 30, 2022 December 31, 2021
PFI Excluding Closed Block Division PFI Excluding Closed Block Division
Gross Gross Gross Gross
Amortized Unrealized Unrealized Allowance for Fair Amortized Unrealized Unrealized Allowance for Fair
Cost Gains Losses Credit Losses Value % of Total Cost Gains Losses Credit Losses Value % of Total
179,895 10,149 10,909 — 179,135 80.8 % 195,493 27,963 595 — 222,861 80.5 %
37,134 872 4,022 — 33,984 15.3 % 38,830 5,254 148 — 43,936 15.9 %
217,029 11,021 14,931 — 213,119 96.1 % 234,323 33,217 743 — 266,797 96.4 %
6,220 144 719 — 5,645 2.5 % 6,313 429 196 — 6,546 2.4 %
2,553 44 386 — 2,211 1.0 % 2,642 88 66 1 2,663 0.9 %
542 16 98 8 452 0.2 % 620 45 14 3 648 0.2 %
214 3 26 15 176 0.2 % 249 14 19 30 214 0.1 %
9,529 207 1,229 23 8,484 3.9 % 9,824 576 295 34 10,071 3.6 %
226,558 11,228 16,160 23 221,603 100.0 % 244,147 33,793 1,038 34 276,868 100.0 %
14,738 185 1,453 — 13,470 25.7 % 12,433 941 71 — 13,303 23.5 %
33,000 596 3,258 — 30,338 58.0 % 31,607 2,029 260 — 33,376 58.9 %
47,738 781 4,711 — 43,808 83.7 % 44,040 2,970 331 — 46,679 82.4 %
5,296 66 463 — 4,899 9.4 % 5,966 287 39 — 6,214 11.0 %
2,640 91 187 — 2,544 4.9 % 2,833 106 74 8 2,857 5.0 %
1,022 10 72 22 938 1.8 % 769 23 33 24 735 1.3 %
154 5 — 34 125 0.2 % 185 19 1 28 175 0.3 %
9,112 172 722 56 8,506 16.3 % 9,753 435 147 60 9,981 17.6 %
56,850 953 5,433 56 52,314 100.0 % 53,793 3,405 478 60 56,660 100.0 %
(1) On an amortized cost basis, net of allowance, as of June 30, 2022, includes 1,125 million (fair value, 1,307 million) and 78 million (fair value, 84 million) of public and private fixed maturities, respectively, classified as “1” highest quality and 77 million (fair value, 84 million) and 0 million (fair value, 0 million) of public and private fixed maturities, respectively, classified as “2” high quality securities based on the NAIC designations. On an amortized cost basis, net of allowance, as of December 31, 2021, includes 1,324 million (fair value, 1,594 million) and 101 million (fair value, 110 million) of public and private fixed maturities, respectively, classified as “1” highest quality and 89 million (fair value, 99 million) and 0 million (fair value, 0 million) of public and private fixed maturities, respectively, classified as “2” high quality securities based on the NAIC designations.
(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. Also excludes assets "held-for-sale" of 40,669 million as of December 31, 2021.
(4) Includes invested assets of our investment management and derivative operations. Excludes assets of our investment management operations that are managed for third parties and those assets classified as “Separate account assets” on our balance sheet.
(5) Excludes fixed maturity securities classified as trading.
(6) Reflects equivalent ratings for investments of the international operations. Includes, as of June 30, 2022 and December 31, 2021, 745 securities with amortized cost of 7,028 million (fair value 6,519 million) and 617 securities with amortized cost of 4,547 million (fair value 4,596 million), respectively, that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

All values are in US Dollars.

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Table of Contents

Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
INVESTMENT PORTFOLIO COMPOSITION - JAPANESE INSURANCE OPERATIONS AND EXCLUDING JAPANESE INSURANCE OPERATIONS (1)
(in millions)
June 30, 2022 December 31, 2021
Amount % of Total Amount % of Total
Japanese Insurance Operations (2):
118,161 69.3 % 146,600 72.2 %
1,202 0.7 % 1,413 0.7 %
19,431 11.4 % 21,079 10.4 %
78 0.0 % 101 0.1 %
680 0.4 % 839 0.4 %
2,785 1.6 % 3,328 1.6 %
1,829 1.1 % 2,187 1.1 %
19,024 11.2 % 19,969 9.8 %
2,500 1.5 % 2,726 1.3 %
4,622 2.7 % 4,203 2.1 %
240 0.1 % 692 0.3 %
170,552 100.0 % 203,137 100.0 %
June 30, 2022 December 31, 2021
Amount % of Total Amount % of Total
Excluding Japanese Insurance Operations (2):
103,442 54.1 % 130,268 58.5 %
— 0.0 % — 0.0 %
32,883 17.2 % 35,581 16.0 %
— 0.0 % — 0.0 %
4,395 2.3 % 6,634 3.0 %
— 0.0 % 30 0.0 %
2,236 1.2 % 3,400 1.6 %
29,546 15.5 % 29,177 13.1 %
3,822 2.0 % 3,845 1.7 %
8,308 4.3 % 8,282 3.7 %
6,406 3.4 % 5,351 2.4 %
191,038 100.0 % 222,568 100.0 %
__________
(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.
(4) Excludes assets "held-for-sale" of 40,669 million as of December 31, 2021.

All values are in US Dollars.

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
INVESTMENT RESULTS (1)
(in millions)
Three Months Ended June 30
2022 2021
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (5) Amount Yield (5) Amount
General Account (2)
Fixed maturities (3) 3.60 % 2,629 (571) 3.68 % 2,729 177
Equity securities 3.89 % 42 — 3.73 % 46 —
Commercial mortgage and other loans 3.66 % 443 (75) 3.99 % 496 40
Policy loans 4.51 % 72 — 4.49 % 77 —
Short-term investments and cash equivalents 1.68 % 54 2 0.65 % 19 —
Gross investment income before investment expenses 3.61 % 3,240 (644) 3.64 % 3,367 217
Investment expenses -0.08 % (81) — -0.16 % (139) —
Subtotal 3.53 % 3,159 (644) 3.48 % 3,228 217
Other investments (3) 267 (553) 409 189
Investment results of other entities and operations (4) (8) 110 286 (36)
Less: investment income related to adjusted operating income reconciling items (177) (433)
Total 3,241 (1,087) 3,490 370
Six Months Ended June 30
2022 2021
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (5) Amount Yield (5) Amount
General Account (2)
Fixed maturities (3) 3.65 % 5,377 (926) 3.66 % 5,485 1,238
Equity securities 2.29 % 56 — 2.29 % 57 —
Commercial mortgage and other loans 3.64 % 903 (74) 3.93 % 973 49
Policy loans 4.49 % 144 — 4.72 % 163 —
Short-term investments and cash equivalents 1.08 % 72 (1) 0.47 % 28 —
Gross investment income before investment expenses 3.56 % 6,552 (1,001) 3.59 % 6,706 1,287
Investment expenses -0.12 % (212) — -0.15 % (265) —
Subtotal 3.44 % 6,340 (1,001) 3.44 % 6,441 1,287
Other investments (3) 720 (681) 758 1,085
Investment results of other entities and operations (4) 162 179 520 5
Less: investment income related to adjusted operating income reconciling items (568) (842)
Total 6,654 (1,503) 6,877 2,377
__________
(1) Excludes Closed Block division.
(2) 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 and assets classified as "Separate account assets" on our balance sheet.
(3) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.
(4) Includes invested income of commercial loans, assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment management operations.
(5) 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. The denominator in the yield percentage includes assets "held-for-sale" as of March 31, 2022 and December 31, 2021. 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 commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS
(in millions)
Three Months Ended June 30
2022 2021
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (1) Amount Yield (1) Amount
Japanese Insurance Operations:
Fixed maturities (2) 2.70 % 943 117 2.72 % 976 113
Equity securities 6.75 % 33 — 6.66 % 36 —
Commercial mortgage and other loans 3.60 % 174 (11) 3.80 % 189 17
Policy loans 3.76 % 25 — 3.49 % 25 —
Short-term investments and cash equivalents 1.45 % 3 — 0.52 % 1 —
Gross investment income before investment expenses 2.86 % 1,178 106 2.90 % 1,227 130
Investment expenses -0.14 % (63) — -0.15 % (62) —
Subtotal 2.72 % 1,115 106 2.75 % 1,165 130
Other investments (2) 62 (852) 122 495
Total 1,177 (746) 1,287 625
Six Months Ended June 30
2022 2021
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (1) Amount Yield (1) Amount
Japanese Insurance Operations:
Fixed maturities (2) 2.70 % 1,909 77 2.69 % 1,945 56
Equity securities 3.66 % 37 — 3.76 % 40 —
Commercial mortgage and other loans 3.63 % 352 (9) 3.78 % 375 21
Policy loans 3.89 % 51 — 4.14 % 60 —
Short-term investments and cash equivalents 1.76 % 6 — 0.45 % 2 —
Gross investment income before investment expenses 2.84 % 2,355 68 2.85 % 2,422 77
Investment expenses -0.14 % (123) — -0.14 % (118) —
Subtotal 2.70 % 2,232 68 2.71 % 2,304 77
Other investments (2) 136 (1,575) 215 (437)
Total 2,368 (1,507) 2,519 (360)
__________
(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 commercial loans and 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 held-to-maturity and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS (1)
(in millions)
Three Months Ended June 30
2022 2021
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (4) Amount Yield (4) Amount
Excluding Japanese Insurance Operations (2):
Fixed maturities (3) 4.43 % 1,686 (688) 4.58 % 1,753 64
Equity securities 1.68 % 9 — 1.48 % 10 —
Commercial mortgage and other loans 3.70 % 269 (64) 4.12 % 307 23
Policy loans 5.02 % 47 — 5.22 % 52 —
Short-term investments and cash equivalents 1.69 % 51 2 0.66 % 18 —
Gross investment income before investment expenses 4.23 % 2,062 (750) 4.27 % 2,140 87
Investment expenses -0.03 % (18) — -0.17 % (77) —
Subtotal 4.20 % 2,044 (750) 4.10 % 2,063 87
Other investments (3) 205 299 287 (306)
Total 2,249 (451) 2,350 (219)
Six Months Ended June 30
2022 2021
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (4) Amount Yield (4) Amount
Excluding Japanese Insurance Operations (2):
Fixed maturities (3) 4.52 % 3,468 (1,003) 4.57 % 3,540 1,182
Equity securities 1.34 % 19 — 1.18 % 17 —
Commercial mortgage and other loans 3.65 % 551 (65) 4.04 % 598 28
Policy loans 4.91 % 93 — 5.14 % 103 —
Short-term investments and cash equivalents 1.05 % 66 (1) 0.47 % 26 —
Gross investment income before investment expenses 4.15 % 4,197 (1,069) 4.22 % 4,284 1,210
Investment expenses -0.10 % (89) — -0.17 % (147) —
Subtotal 4.05 % 4,108 (1,069) 4.05 % 4,137 1,210
Other investments (3) 584 894 543 1,522
Total 4,692 (175) 4,680 2,732
__________
(1) Excludes Closed Block division.
(2) 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 and assets classified as "Separate account assets" on our balance sheet.
(3) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.
(4) 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. The denominator in the yield percentage includes assets "held-for-sale" as of March 31, 2022 and December 31, 2021. 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 commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
INCOME STATEMENT IMPACT FROM ANNUAL ASSUMPTION UPDATES AND OTHER REFINEMENTS (1)
(in millions)
Three Months Ended June 30, 2022
Premiums Policy Charges and Fee Income Asset Management Fees, Commissions and Other Income Insurance and Annuity Benefits Interest Credited to Policyholders' Account Balances Amortization of Acquisition Costs General and Administrative Expenses Adjusted Operating Income (Loss) Before Income Taxes
Retirement Strategies - Institutional Retirement Strategies — — — 4 (4) — — —
Retirement Strategies - Individual Retirement Strategies — — — (27) 1 1 — 25
Group Insurance — — — 3 — — — (3)
Individual Life — 281 — 1,572 — 85 25 (1,401)
Assurance IQ — — (17) — — — — (17)
International Businesses - Life Planner — 2 — 23 — (2) — (19)
International Businesses - Gibraltar Life and Other — — — 3 — 9 — (12)
Corporate and Other — — — (4) — — — 4
Total — 283 (17) 1,574 (3) 93 25 (1,423)
Three Months Ended June 30, 2021
Premiums Policy Charges and Fee Income Asset Management Fees, Commissions and Other Income Insurance and Annuity Benefits Interest Credited to Policyholders' Account Balances Amortization of Acquisition Costs General and Administrative Expenses Adjusted Operating Income (Loss) Before Income Taxes
Retirement Strategies - Institutional Retirement Strategies (2) — — — 14 — — — (14)
Retirement Strategies - Individual Retirement Strategies — — — (6) 2 19 — (15)
Group Insurance 4 — — 3 — — — 1
Individual Life — (59) — (42) — (8) (16) 7
International Businesses - Life Planner — (10) — (4) — (8) — 2
International Businesses - Gibraltar Life and Other — — — 4 — 12 — (16)
Corporate and Other — — — (5) — — — 5
Total 4 (69) — (36) 2 15 (16) (30)
__________
(1) Includes one-time impact for annual actuarial assumption updates and other refinements in our insurance businesses as well as the impact from updated Assurance IQ persistency assumptions.
(2) Prior period amounts have been restated to conform to the current period presentation, as the results of the Full Service Retirement Business were transferred to Divested and Run-off Businesses in the third quarter of 2021. This business was subsequently sold in April, 2022.

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Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended June 30, 2022 Three Months Ended June 30, 2021
Reconciling Items Reconciling Items
Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to 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 Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums 6,634 — — 443 35 — — 7,112 6,086 — — 463 230 — — 6,779
Policy charges and fee income 1,615 (57) (7) — — — — 1,551 1,393 (43) (16) — 66 — — 1,400
Net investment income 3,241 (4) — 520 181 — — 3,938 3,490 (6) — 629 439 — — 4,552
Realized investment gains (losses), net 268 (1,440) 279 (60) (194) — — (1,147) 101 20 129 265 120 — — 635
Asset management fees, commissions and other income 2,016 (797) — (374) 679 43 — 1,567 1,548 406 — 256 362 (21) — 2,551
Total revenues 13,774 (2,298) 272 529 701 43 — 13,021 12,618 377 113 1,613 1,217 (21) — 15,917
Benefits and Expenses:
Insurance and annuity benefits 8,694 334 (202) 411 168 — — 9,405 6,692 34 (30) 1,466 286 — — 8,448
Interest credited to policyholders' account balances 663 (83) — 31 54 — — 665 667 33 (17) 31 360 — — 1,074
Interest expense 401 — — — — — — 401 370 — — — 1 — — 371
Deferral of acquisition costs (522) — — — (1) — — (523) (608) — — — (1) — — (609)
Amortization of acquisition costs 605 23 (52) 4 1 — — 581 503 (54) (61) 5 (1) — — 392
General and administrative expenses 3,061 (222) (5) 70 77 22 — 3,003 3,165 6 (4) 80 233 (25) 13 3,468
Total benefits and expenses 12,902 52 (259) 516 299 22 — 13,532 10,789 19 (112) 1,582 878 (25) 13 13,144
Six Months Ended June 30, 2022 Six Months Ended June 30, 2021
Reconciling Items Reconciling Items
Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to 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 Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums 13,934 — — 852 278 — — 15,064 12,973 — — 894 455 — — 14,322
Policy charges and fee income 3,069 (135) 16 — 60 — — 3,010 2,885 (119) (10) — 134 — — 2,890
Net investment income 6,654 (14) — 1,074 582 — — 8,296 6,877 (18) — 1,215 860 — — 8,934
Realized investment gains (losses), net 414 (1,968) 332 40 (281) — — (1,463) 270 1,871 224 337 12 — — 2,714
Asset management fees, commissions and other income 3,360 (1,320) — (472) (272) 33 — 1,329 3,369 39 — 532 118 (49) — 4,009
Total revenues 27,431 (3,437) 348 1,494 367 33 — 26,236 26,374 1,773 214 2,978 1,579 (49) — 32,869
Benefits and expenses:
Insurance and annuity benefits 16,729 293 (243) 1,249 480 — — 18,508 14,222 (144) (168) 2,681 571 — — 17,162
Interest credited to policyholders' account balances 1,318 (36) 31 61 (540) — — 834 1,351 307 (30) 62 152 — — 1,842
Interest expense 765 — — — 1 — — 766 745 — — — 3 — — 748
Deferral of acquisition costs (1,103) — — — (1) — — (1,104) (1,299) — — — (2) — — (1,301)
Amortization of acquisition costs 1,140 236 39 9 4 — — 1,428 1,045 186 (110) 11 1 — — 1,133
General and administrative expenses 6,144 (220) (4) 139 320 34 17 6,430 6,438 11 (7) 159 470 1 26 7,098
Total benefits and expenses 24,993 273 (177) 1,458 264 34 17 26,862 22,502 360 (315) 2,913 1,195 1 26 26,682
__________
(1) See page 40 for a definition of adjusted operating income.
(2) Represents adjustments not included in the above reconciling items. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of the associated contingent consideration, and goodwill impairments.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended December 31, 2021
Reconciling Items Reconciling Items
Total realized investment gains (losses), net, and related charges and adjustments Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to 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 Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums — — 419 123 — — 13,193 6,723 — — 476 113 — — 7,312
Policy charges and fee income (59) (19) — 59 — — 1,570 1,512 (70) (16) — 58 — — 1,484
Net investment income (8) — 650 409 — — 4,717 3,617 (14) — 635 398 — — 4,636
Realized investment gains (losses), net 113 (37) 168 66 — — 432 185 98 193 302 100 — — 878
Asset management fees, commissions and other income 73 — 84 (40) (23) — 1,729 1,707 159 — 235 38 (25) — 2,114
Total revenues 119 (56) 1,321 617 (23) — 21,641 13,744 173 177 1,648 707 (25) — 16,424
Benefits and expenses:
Insurance and annuity benefits (9) 110 1,184 198 — — 15,003 7,626 (12) (142) 1,486 209 — — 9,167
Interest credited to policyholders' account balances 68 7 31 146 — — 917 667 75 (22) 31 (28) — — 723
Interest expense — — — 1 — — 368 362 — — — — — — 362
Deferral of acquisition costs — — — (2) — — (648) (599) — — — — — — (599)
Amortization of acquisition costs (27) 25 4 2 — — 529 510 (6) (78) 6 3 — — 435
Goodwill impairment — — — — — — — — — — — — — 1,060 1,060
General and administrative expenses (11) 1 75 224 (20) 9 3,666 3,593 — (1) 77 239 (37) 17 3,888
Total benefits and expenses 21 143 1,294 569 (20) 9 19,835 12,159 57 (243) 1,600 423 (37) 1,077 15,036
Reconciling Items
Total realized investment gains (losses), net, and related charges and adjustments Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums — — 409 243 — — 7,952
Policy charges and fee income (78) 23 — 60 — — 1,459
Net investment income (10) — 554 401 — — 4,358
Realized investment gains (losses), net (528) 53 100 (87) — — (316)
Asset management fees, commissions and other income (523) — (98) (951) (10) — (238)
Total revenues (1,139) 76 965 (334) (10) — 13,215
Benefits and expenses:
Insurance and annuity benefits (41) (41) 838 312 — — 9,103
Interest credited to policyholders' account balances 47 31 30 (594) — — 169
Interest expense — — — 1 — — 365
Deferral of acquisition costs — — — — — — (581)
Amortization of acquisition costs 213 91 5 3 — — 847
General and administrative expenses 2 1 69 243 12 17 3,427
Total benefits and expenses 221 82 942 (35) 12 17 13,330
__________
(1) See page 40 for a definition of adjusted operating income.
(2) Represents adjustments not included in the above reconciling items, including a goodwill impairment that resulted in a charge of 837 million after-tax, 1,060 million pre-tax, in fourth quarter of 2021 related to Assurance IQ. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of the associated contingent consideration.

All values are in US Dollars.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
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,” as adjusted, 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 our tax and capital profile.
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. Additionally, adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income.
Adjusted Operating Income excludes 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, 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, as well as changes in the fair value of contingent consideration, and goodwill impairments. Earnings attributable to 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 IRS 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 Gibraltar Life Consultants include production by captive agents associated with consolidated joint venture of Gibraltar Life and Other operations.
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:
Equity attributed to Prudential Financial, Inc. divided by the number of common shares outstanding at end of period, on a diluted basis. Book value per share excluding Accumulated Other Comprehensive Income (Loss) (“AOCI”) and adjusted to remove amount included for remeasurement of foreign currency exchange rate is a non-GAAP measure. These items are excluded in order to highlight the book value attributable to our core business operations. 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, and by isolating the accounting impact associated with insurance liabilities that are generally not marked to market along with the supporting investments that are marked to market through AOCI under GAAP. However, book value per share excluding AOCI and adjusted to remove the amount included for foreign currency exchange rate remeasurement is not a substitute for book value per share including AOCI determined in accordance with GAAP, and the adjustments made to derive the measure are important to an understanding of our overall financial position.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
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 a premium, net of any amount 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. Gibraltar Life:
Includes results from consolidated joint venture operation of Gibraltar Life and Other operations.
13. Gibraltar Life Consultants:
Captive insurance agents for Gibraltar Life.
14. Group Insurance Benefits Ratios:
Ratio of policyholder benefits to earned premiums, policy charges and fee income.
15. Group Life Insurance and Group Disability Insurance Administrative Operating Expense Ratios:
Ratio of administrative operating expenses (excluding commissions) to gross premiums, and net policy charges and fee income.
16. Individual Retirement Strategies Account Values in General Account and Separate Account:
Amounts represent the breakdown of invested customer funds in annuities either written or reinsured by the Company.
17. Individual Retirement Strategies - 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.
18. 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.
19. International Life Planners:
Captive insurance Advisors in our Life Planner operations.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Second Quarter 2022
KEY DEFINITIONS AND FORMULAS
20. 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.
21. Other Related Revenues:
Other related revenues include incentive fees, transaction fees, seed and co-investment results, and commercial mortgage revenues.
22. PGIM Asset Under Management Classifications:
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.
23. 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).
24. 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.
25. Prudential Advisors:
Captive financial professionals in our insurance operations in the United States.
26. Prudential Advisor Productivity:
Commissions on new sales of all products by Prudential Advisors financial professionals under contract for the entire period, divided by the number of those financial professionals. Excludes commissions on new sales by financial professionals hired or departed during the period. For interim reporting periods, the productivity measures are annualized.
27. 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.
28. 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.
29. Wrap-Fee Products:
Investment products generating asset-based fees in which the funds of the customer are generally invested in other investment products such as mutual funds.

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Table of Contents

Prudential Financial, Inc. image30.jpg
Quarterly Financial Supplement
Second Quarter 2022
RATINGS AND INVESTOR INFORMATION
FINANCIAL STRENGTH RATINGS
as of August 2, 2022
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 August 2, 2022
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- A1 A+
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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