Equibles

8-K

PRUDENTIAL FINANCIAL INC (PRU)

8-K 2022-02-03 For: 2022-02-03
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): February 3, 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 fourth quarter 2021 results.

Item 7.01    Regulation FD Disclosure.

A. Quarterly Financial Supplement. The Company furnishes herewith, as Exhibit 99.2, the Quarterly Financial Supplement for fourth quarter 2021.
B. Conference Call and Related Materials. Members of the Company's senior management will hold a conference call on Friday, February 4, 2022 at 11:00 A.M. ET, to discuss the Company's fourth quarter 2021 results. Related materials are available on the Company's Investor Relations website at www.investor.prudential.com.
C. Dividend Declaration. Today the Company announced the declaration of a quarterly dividend of $1.20 per share of Common Stock, payable on March 11, 2022, to shareholders of record as of February 15, 2022.

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. datedFebruaryexhibit991-4q21earningspre.htm3, 2022, announcingfourthquarter 2021 results (furnished and not filed).
99.2 Quarterly Financial Supplement for Prudential Financial, Inc. forfourthquarter 2021 (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: February 3, 2022

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

3

Document

Exhibit 99.1

earningsreleaseheader1a09.jpg

February 3, 2022

Prudential Financial, Inc. Announces

2021 Results

•Fourth quarter 2021 net income attributable to Prudential Financial, Inc. of $1.208 billion or $3.13 per Common share versus net income of $819 million or $2.03 per share for the year-ago quarter.

•Fourth quarter 2021 after-tax adjusted operating income of $1.227 billion or $3.18 per Common share versus $1.130 billion or $2.80 per share for the year-ago quarter.

•2021 net income attributable to Prudential Financial, Inc. of $7.724 billion or $19.51 per Common share versus net loss of $374 million or $1.00 per share for 2020.

•2021 after-tax adjusted operating income of $5.772 billion or $14.58 per Common share versus $3.913 billion or $9.72 per share for 2020.

•Book value per Common share of $161.26 versus $167.81 per share for the year-ago; adjusted book value per Common share of $108.72 versus $94.79 per share for the year-ago.

•Parent company highly liquid assets(1) of $3.6 billion versus $5.6 billion for the year-ago quarter.

•Assets under management(2) of $1.742 trillion versus $1.721 trillion for the year-ago quarter.

•As previously announced, the Company’s Board of Directors has authorized the repurchase of up to $1.5 billion of outstanding Common Stock during the period from January 1, 2022 through December 31, 2022. In addition, the Company declared a quarterly dividend of $1.20 per share of Common Stock, payable on March 11, 2022, to shareholders of record as of February 15, 2022, representing an increase of 4% over the prior year dividend level and a 4% annualized yield on adjusted book value.

Charles Lowrey, Chairman and CEO, commented on results:

“Prudential reported strong financial results for the fourth quarter and full year, and made significant progress in becoming a higher growth, less market sensitive, and more nimble company.

During 2021, we entered into agreements to divest lower growth and more market sensitive businesses and programmatically acquired businesses for sustainable long-term growth. We advanced our cost savings program and remain on track to achieve our previously announced goal of $750 million of savings by the end of 2023. We also refined our product mix to meet our customers’ changing needs. We did all of this while returning $4.3 billion to shareholders through share repurchases and dividends, expanding our commitments to our employees and communities, and taking new steps to address climate change.

Backed by this momentum and our rock solid financial position, we are starting 2022 from a position of strength, with an even sharper focus on growth, customers, and innovation, and on expanding access to investing, insurance, and retirement security for people around the world.”

NEWARK, N.J. – Prudential Financial, Inc. (NYSE: PRU) today reported fourth quarter and year-end 2021 results. Net income attributable to Prudential Financial, Inc. was $1.208 billion ($3.13 per Common share) for the fourth quarter of 2021, compared to net income of $819 million ($2.03 per Common share) for the fourth quarter of 2020.

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Prudential Financial, Inc. Fourth Quarter 2021 Earnings Release Page 2

After-tax adjusted operating income was $1.227 billion ($3.18 per Common share) for the fourth quarter of 2021, compared to $1.130 billion ($2.80 per Common share) for the fourth quarter of 2020.

Net income attributable to Prudential Financial, Inc. was $7.724 billion ($19.51 per Common share) for 2021, compared to a net loss of $374 million ($1.00 per Common share) for 2020. After-tax adjusted operating income was $5.772 billion ($14.58 per Common share) for 2021, compared to $3.913 billion ($9.72 per Common share) for 2020.

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.

NET INCOME

Net income in the current quarter included a goodwill impairment that resulted in a charge of $837 million, net of tax, reflecting the decline in the fair value of Assurance IQ as a result of lower publicly traded peer valuations and slower than expected earnings growth. This loss was offset by $420 million of pre-tax gains related to market experience updates, $332 million of pre-tax earnings from divested and run-off businesses, and $116 million of pre-tax net realized investment gains and related charges and adjustments, including $17 million of impairment and credit-related losses.

Net income for the year-ago quarter included $1.189 billion of pre-tax net realized investment losses and related charges and adjustments, driven by losses on derivatives, and also included $12 million from impairment and credit-related losses. These losses were offset by $376 million of pre-tax gains related to market experience updates and $108 million of pre-tax earnings from divested and run-off businesses.

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 $350 million for the fourth quarter of 2021, compared to $404 million in the year-ago quarter. This reflects record high asset management fees, driven by an increase in average account values, that were more than offset by lower Other Related Revenues, driven by a decrease in incentive fees and seed and co-investment income, as well as higher expenses.

PGIM assets under management of $1.524 trillion, a record high, were up 2% from the year-ago quarter, reflecting market appreciation, positive third-party net flows, private originations, and strong investment performance over the past year. Third-party net outflows of $0.1 billion in the current quarter reflect $3.6 billion of retail outflows mainly from mutual fund investors rebalancing out of fixed income, as well as equity sub-advised outflows, offset by $3.5 billion of institutional inflows driven by fixed income and real estate.

U.S. Businesses

U.S. Businesses reported adjusted operating income of $895 million for the fourth quarter of 2021, compared to $794 million in the year-ago quarter. This increase reflects higher net investment spread results, including higher variable investment income, and higher net fee income, driven primarily by equity market appreciation, partially offset by higher expenses and less favorable underwriting results.

Retirement:

•Reported adjusted operating income of $543 million in the current quarter, compared to $525 million in the year-ago quarter. This increase reflects higher net investment spread results, including higher variable investment income, partially offset by lower reserve gains, driven by less favorable COVID-19 mortality experience.

•Account values of $246 billion were up 1% from the year-ago quarter, driven by net flows and market appreciation. Net outflows in the current quarter totaled $1.4 billion as withdrawals and benefits exceeded sales of $3.5 billion, which included $2.7 billion of International Reinsurance transactions.

Group Insurance:

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Prudential Financial, Inc. Fourth Quarter 2021 Earnings Release Page 3

•Reported a loss, on an adjusted operating income basis, of $205 million in the current quarter, compared to a loss of $87 million in the year-ago quarter. This higher loss reflects lower underwriting results in group life, driven by COVID-19, and higher expenses.

•Reported earned premiums, policy charges, and fees of $1.4 billion were up 13% from the year-ago quarter.

Individual Annuities:

•Reported adjusted operating income of $486 million in the current quarter, compared to $440 million in the year-ago quarter. This increase reflects higher fee income, net of distribution expenses and other associated costs, higher net investment spread results, including higher variable investment income, and lower expenses.

•Account values of $182 billion were up 3% from the year-ago quarter, reflecting market appreciation, partially offset by net outflows. Gross sales of $1.6 billion in the current quarter reflect the continued success of our FlexGuard Indexed Variable Annuity.

Individual Life:

•Reported adjusted operating income of $81 million in the current quarter, compared to a loss of $65 million in the year-ago quarter. This increase reflects more favorable underwriting results and higher net investment spread results, including higher variable investment income, partially offset by higher expenses, driven by a legal reserve.

•Sales of $182 million in the current quarter decreased 24% from the year-ago quarter. This was primarily driven by higher sales ahead of product repricing in the year-ago quarter.

Assurance IQ reported a loss, on an adjusted operating income basis, of $10 million in the current quarter, compared to a loss of $19 million in the year-ago quarter. This reflects a 15% increase in revenues that were partially offset by increased expenses to support business growth.

International Businesses

International Businesses, consisting of Life Planner and Gibraltar Life & Other, reported adjusted operating income of $829 million for the fourth quarter of 2021, compared to $790 million in the year-ago quarter. This increase reflects lower expenses, business growth, and higher net investment spread results.

Life Planner:

•Reported adjusted operating income of $428 million in the current quarter, compared to $426 million in the year-ago quarter. This increase reflects business growth and higher net investment spread results, partially offset by higher expenses.

•Constant dollar basis sales(3) of $245 million in the current quarter increased 16% from the year-ago quarter, primarily driven by lower sales in Japan in the year-ago quarter following product repricing and continued sales growth in Brazil.

Gibraltar Life & Other:

•Reported adjusted operating income of $401 million in the current quarter, compared to $364 million in the year-ago quarter. This increase primarily reflects lower expenses.

•Constant dollar basis sales(3) of $213 million in the current quarter decreased 11% 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 $489 million for the fourth quarter of 2021, compared to a loss of $521 million in the year-ago quarter. The lower loss reflects higher net investment income, higher income from pension and other employee benefit plans, and lower interest expense, partially offset by higher expenses.

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Prudential Financial, Inc. Fourth Quarter 2021 Earnings Release Page 4

EARNINGS CONFERENCE CALL

Members of Prudential’s senior management will host a conference call on Friday, February 4, 2022, at 11:00 a.m. ET to discuss with the investment community the Company’s fourth 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 February 18. To access a replay via phone starting at 3:00 p.m. ET on February 4 through February 18 dial (877) 660-6853 (domestic) or (201) 612-7415 (international) and use replay code 13725139.

prurocklogoa04.jpg

FORWARD-LOOKING STATEMENTS

Certain of the statements included in this release, including those regarding our strategy to become a higher growth, less market sensitive, and more nimble company, our planned dispositions, our cost savings program, our plans relating to share repurchases and dividends, the ability of our product mix to meet customer needs, our efforts to address climate change, 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. Statements regarding our transformation strategy, our planned dispositions, our cost savings program, our plans relating to share repurchases and dividends, the ability of our product mix to meet customer needs, our efforts to address climate change, and other business strategies are subject to the risk that we will be unable to execute our strategy because of market or competitive conditions or other factors, including the impact of the COVID-19 pandemic. 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 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

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Prudential Financial, Inc. Fourth Quarter 2021 Earnings Release Page 5

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

(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

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Prudential Financial, Inc. Fourth Quarter 2021 Earnings Release Page 6

Form 10-Q.

Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with more than $1.5 trillion in assets under management as of December 31, 2021, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help to make lives better by creating financial opportunity for more people. 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 Year Ended
December 31 December 31
2021 2020 2021 2020
Adjusted operating income (loss) before income taxes (1):
PGIM $ 350 $ 404 $ 1,643 $ 1,262
U.S. Businesses 895 794 3,875 2,703
International Businesses 829 790 3,390 2,952
Corporate and Other (489) (521) (1,607) (1,967)
Total adjusted operating income before income taxes $ 1,585 $ 1,467 $ 7,301 $ 4,950
Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments $ 116 $ (1,189) $ 1,627 $ (4,300)
Market experience updates 420 376 750 (640)
Divested and Run-off Businesses:
Closed Block division 48 (9) 140 (24)
Other Divested and Run-off Businesses 284 117 716 (450)
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests 12 152 (41) 90
Other adjustments (2) (1,077) (14) (1,112) 51
Total reconciling items, before income taxes (197) (567) 2,080 (5,273)
Income (loss) before income taxes and equity in earnings of operating joint ventures $ 1,388 $ 900 $ 9,381 $ (323)
Income Statement Data:
Net income (loss) attributable to Prudential Financial, Inc. $ 1,208 $ 819 $ 7,724 $ (374)
Income attributable to noncontrolling interests 34 203 70 228
Net income (loss) 1,242 1,022 7,794 (146)
Less: Earnings attributable to noncontrolling interests 34 203 70 228
Income (loss) attributable to Prudential Financial, Inc. 1,208 819 7,724 (374)
Less: Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests (10) (169) 17 (132)
Income (loss) (after-tax) before equity in earnings of operating joint ventures 1,218 988 7,707 (242)
Less: Total reconciling items, before income taxes (197) (567) 2,080 (5,273)
Less: Income taxes, not applicable to adjusted operating income (188) (425) 145 (1,118)
Total reconciling items, after income taxes (9) (142) 1,935 (4,155)
After-tax adjusted operating income (1) 1,227 1,130 5,772 3,913
Income taxes, applicable to adjusted operating income 358 337 1,529 1,037
Adjusted operating income before income taxes (1) $ 1,585 $ 1,467 $ 7,301 $ 4,950
See footnotes on last page.

Page 1

Financial Highlights
(in millions, except per share data, unaudited)
Three Months Ended Year Ended
December 31 December 31
2021 2020 2021 2020
Earnings per share of Common Stock (diluted):
Net income (loss) attributable to Prudential Financial, Inc. $ 3.13 $ 2.03 $ 19.51 $ (1.00)
Less: Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments 0.30 (2.99) 4.17 (10.81)
Market experience updates 1.10 0.94 1.92 (1.61)
Divested and Run-off Businesses:
Closed Block division 0.13 (0.02) 0.36 (0.06)
Other Divested and Run-off Businesses 0.75 0.29 1.84 (1.13)
Difference in earnings allocated to participating unvested share-based payment awards — 0.01 (0.07) 0.07
Other adjustments (2) (2.83) (0.04) (2.85) 0.13
Total reconciling items, before income taxes (0.55) (1.81) 5.37 (13.41)
Less: Income taxes, not applicable to adjusted operating income (0.50) (1.04) 0.44 (2.69)
Total reconciling items, after income taxes (0.05) (0.77) 4.93 (10.72)
After-tax adjusted operating income $ 3.18 $ 2.80 $ 14.58 $ 9.72
Weighted average number of outstanding common shares (basic) 377.7 396.2 387.2 395.8
Weighted average number of outstanding common shares (diluted) 380.9 398.3 390.1 397.8
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc. $ 1,208 $ 819 $ 7,724 $ (374)
Less: Earnings allocated to participating unvested share-based payment awards 17 10 115 21
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation $ 1,191 $ 809 $ 7,609 $ (395)
After-tax adjusted operating income (1) $ 1,227 $ 1,130 $ 5,772 $ 3,913
Less: Earnings allocated to participating unvested share-based payment awards 17 13 86 47
After-tax adjusted operating income for earnings per share of Common Stock calculation (1) $ 1,210 $ 1,117 $ 5,686 $ 3,866
Prudential Financial, Inc. Equity (as of end of period):
GAAP book value (total PFI equity) at end of period $ 61,876 $ 67,425
Less: Accumulated other comprehensive income (AOCI) 21,324 30,738
GAAP book value excluding AOCI 40,552 36,687
Less: Cumulative effect of foreign exchange rate remeasurement and currency
translation adjustments corresponding to realized gains/losses (1,164) (1,399)
Adjusted book value 41,716 38,086
End of period number of common shares (diluted) 383.7 401.8
GAAP book value per common share - diluted 161.26 167.81
GAAP book value excluding AOCI per share - diluted 105.69 91.31
Adjusted book value per common share - diluted 108.72 94.79
See footnotes on last page.

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Financial Highlights
(in millions, or as otherwise noted, unaudited)
Three Months Ended Year Ended
December 31 December 31
2021 2020 2021 2020
PGIM:
PGIM:
Assets Managed by PGIM (in billions, as of end of period):
Institutional customers $ 629.4 $ 614.9
Retail customers 401.4 372.0
General account 493.0 511.7
Total PGIM $ 1,523.8 $ 1,498.6
Institutional Customers - Assets Under Management (in billions):
Gross additions, other than money market $ 20.2 $ 16.9 $ 78.4 $ 68.4
Net additions, other than money market $ 3.5 $ 2.5 $ 10.9 $ 3.0
Retail Customers - Assets Under Management (in billions):
Gross additions, other than money market $ 23.7 $ 24.6 $ 89.5 $ 95.0
Net additions (withdrawals), other than money market $ (3.6) $ 3.8 $ 0.1 $ 17.2
U.S. Businesses:
Retirement:
Gross additions $ 3,501 $ 8,251 $ 21,967 $ 22,469
Net additions (withdrawals) $ (1,392) $ 3,189 $ 1,142 $ 4,181
Total account value at end of period $ 245,720 $ 243,387
Group Insurance:
Group Insurance Annualized New Business Premiums (3):
Group life $ 23 $ 16 $ 265 $ 243
Group disability 49 20 221 163
Total $ 72 $ 36 $ 486 $ 406
Individual Annuities:
Fixed and Variable Annuity Sales and Account Values:
Gross sales $ 1,551 $ 1,980 $ 6,599 $ 6,815
Sales, net of full surrenders and death benefits $ (1,102) $ (125) $ (3,802) $ (1,030)
Total account value at end of period $ 182,305 $ 176,280
Individual Life:
Individual Life Insurance Annualized New Business Premiums (3):
Term life $ 24 $ 34 $ 115 $ 148
Guaranteed universal life 10 11 45 94
Other universal life 12 18 57 91
Variable life 136 176 538 449
Total $ 182 $ 239 $ 755 $ 782
International Businesses:
International Businesses:
International Businesses Annualized New Business Premiums (3)(4):
Actual exchange rate basis $ 438 $ 440 $ 1,940 $ 2,190
Constant exchange rate basis $ 458 $ 450 $ 2,002 $ 2,228
See footnotes on last page.

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Financial Highlights
(in billions, as of end of period, unaudited)
December 31
2021 2020
Assets and Assets Under Management and Administration:
Total assets $ 937.8 $ 940.7
Assets under management (at fair market value):
PGIM $ 1,523.8 $ 1,498.6
U.S. Businesses (5) 163.1 171.7
International Businesses 12.8 14.3
Corporate and Other (5) 42.6 36.3
Total assets under management 1,742.3 1,720.9
Assets under administration 382.5 341.7
Total assets under management and administration $ 2,124.8 $ 2,062.6
See footnotes on last page.

Page 4

(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, including a goodwill impairment that resulted in a charge of $837 million after-tax, $1,060 million pre-tax, for the three months ended December 31, 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.
(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) 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 103 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.
(5) Prior period amounts have been reclassified to conform to current period presentation.

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Document

Table of Contents

Exhibit 99.2

Prudential Financial, Inc. (PRU)
Quarterly Financial Supplement
Fourth Quarter 2021
Reference is made to Prudential Financial, Inc.'s (PFI) filings with the Securities and Exchange Commission for general information, and consolidated financial information. All financial information in this document is unaudited.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
TABLE OF CONTENTS
Page
HIGHLIGHTS
Financial Metrics Summary 1
Financial Highlights 2
Other Financial Highlights 3
Operations Highlights 4
Combined Statements of Operations 5
Consolidated Balance Sheets 6
Combining Balance Sheets 7
Short-Term and Long-Term Debt - Unaffiliated 8
PGIM
Statements of Operations 9
Supplementary Revenue and Assets Under Management Information 10
Supplementary Assets Under Management Information 11
U.S.BUSINESSES
Combined Statements of Operations 12
Statements of Operations - Retirement 13
Retirement Sales Results and Account Values 14
Statements of Operations - Group Insurance 15
Group Insurance Supplementary Information 16
Statements of Operations - Individual Annuities 17
Individual Annuities Sales Results and Account Values 18
Individual Annuities Account Value Activity 19
Individual Annuities Living Benefit Features 20
Individual Annuities Death Benefit Features 21
Statements of Operations - Individual Life 22
Individual Life Supplementary Information 23
Statements of Operations - Assurance IQ 24
INTERNATIONAL BUSINESSES
Combined Statements of Operations 25
Statements of Operations - Life Planner 26
Statements of Operations - Gibraltar Life and Other 27
Sales Results and Supplementary Information 28
CORPORATE AND OTHER
Statements of Operations 30
INVESTMENT PORTFOLIO
Investment Portfolio Composition 31
Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations 32
Investment Results 33
Investment Results - Japanese Insurance Operations 34
Investment Results - Excluding Japanese Insurance Operations 35
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES 36
KEY DEFINITIONS AND FORMULAS 38
RATINGS AND INVESTOR INFORMATION 41

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
FINANCIAL METRICS SUMMARY
(in millions, except per share and return on equity data)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021 % change
Earnings
Adjusted operating income (loss) before income taxes:
PGIM 404 651 315 327 350 1,262 1,643 30%
U.S. Businesses 794 843 1,047 1,090 895 2,703 3,875 43%
International Businesses 790 871 803 887 829 2,952 3,390 15%
Corporate and Other (521) (322) (336) (460) (489) (1,967) (1,607) 18%
Total adjusted operating income before income taxes 1,467 2,043 1,829 1,844 1,585 4,950 7,301 47%
Income taxes, applicable to adjusted operating income 337 425 389 357 358 1,037 1,529 47%
After-tax adjusted operating income 1,130 1,618 1,440 1,487 1,227 3,913 5,772 48%
Income (loss) attributable to Prudential Financial, Inc. 819 2,828 2,158 1,530 1,208 (374) 7,724 2165%
Return on Equity
Operating Return on Average Equity (based on adjusted operating income) (1) 11.9 % 16.5 % 14.2 % 14.5 % 11.8 % 10.1 % 14.3 %
Return on Average Equity (based on net income (loss)) 4.9 % 18.0 % 14.3 % 9.8 % 7.8 % -0.6 % 12.4 %
Distributions to Shareholders
Dividends paid 442 467 460 451 443 1,769 1,821 3%
Share repurchases — 375 875 875 375 500 2,500 400%
Total capital returned 442 842 1,335 1,326 818 2,269 4,321 90%
Per Share Data
Net income (loss) (diluted) 2.03 6.98 5.40 3.90 3.13 (1.00) 19.51 2051%
Adjusted Operating Income (diluted) 2.80 3.99 3.60 3.78 3.18 9.72 14.58 50%
Shareholder dividends 1.10 1.15 1.15 1.15 1.15 4.40 4.60 5%
Book value 167.81 145.05 160.31 160.29 161.26
Book value excluding AOCI and FX (2) 94.79 100.49 104.39 106.85 108.72
Shares Outstanding
Weighted average number of common shares (basic) 396.2 396.3 391.1 383.8 377.7 395.8 387.2 -2%
Weighted average number of common shares (diluted) 398.3 398.8 394.1 386.8 380.9 397.8 390.1 -2%
End of period common shares (basic) 396.4 394.3 386.8 378.9 376.3
End of period common shares (diluted) 401.8 400.1 393.3 386.1 383.7
__________
(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) AOCI represents accumulated other comprehensive income and FX represents the remeasurement of foreign currency. See page 3 for further details.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021
Earnings per share of Common Stock (diluted):
After-tax adjusted operating income 2.80 3.99 3.60 3.78 3.18 9.72 14.58
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments (2.99) 2.65 0.91 0.25 0.30 (10.81) 4.17
Market experience updates 0.94 0.76 0.57 (0.51) 1.10 (1.61) 1.92
Divested and Run-off Businesses:
Closed Block division (0.02) 0.09 0.08 0.07 0.13 (0.06) 0.36
Other Divested and Run-off Businesses 0.29 0.11 0.86 0.12 0.75 (1.13) 1.84
Difference in earnings allocated to participating unvested share-based payment awards 0.01 (0.05) (0.03) — — 0.07 (0.07)
Other adjustments (1) (0.04) (0.03) (0.03) (0.02) (2.83) 0.13 (2.85)
Total reconciling items, before income taxes (1.81) 3.53 2.36 (0.09) (0.55) (13.41) 5.37
Income taxes, not applicable to adjusted operating income (1.04) 0.54 0.56 (0.21) (0.50) (2.69) 0.44
Total reconciling items, after income taxes (0.77) 2.99 1.80 0.12 (0.05) (10.72) 4.93
Net income (loss) attributable to Prudential Financial, Inc. 2.03 6.98 5.40 3.90 3.13 (1.00) 19.51
Weighted average number of outstanding common shares (basic) 396.2 396.3 391.1 383.8 377.7 395.8 387.2
Weighted average number of outstanding common shares (diluted) 398.3 398.8 394.1 386.8 380.9 397.8 390.1
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc. 819 2,828 2,158 1,530 1,208 (374) 7,724
Less: Earnings allocated to participating unvested share-based payment awards 10 44 31 23 17 21 115
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation 809 2,784 2,127 1,507 1,191 (395) 7,609
After-tax adjusted operating income 1,130 1,618 1,440 1,487 1,227 3,913 5,772
Less: Earnings allocated to participating unvested share-based payment awards 13 26 20 23 17 47 86
After-tax adjusted operating income for earnings per share of Common Stock calculation 1,117 1,592 1,420 1,464 1,210 3,866 5,686
___________
(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
Fourth Quarter 2021
OTHER FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2020 2021
4Q 1Q 2Q 3Q 4Q
Capitalization Data (1):
Senior Debt:
Short-term Debt 925 867 909 909 722
Long-term Debt 12,103 12,117 12,055 11,070 11,003
Junior Subordinated Long-term Debt 7,615 7,613 7,615 7,617 7,619
Prudential Financial, Inc. Equity:
Including accumulated other comprehensive income 67,425 58,036 63,048 61,887 61,876
Excluding accumulated other comprehensive income (2) 36,687 38,817 39,771 40,051 40,552
Amount included above for remeasurement of foreign currency (3) (1,399) (1,388) (1,287) (1,205) (1,164)
Excluding accumulated other comprehensive income and adjusted to remove amount
included for remeasurement of foreign currency (3) 38,086 40,205 41,058 41,256 41,716
Book Value per Share of Common Stock:
Including accumulated other comprehensive income 167.81 145.05 160.31 160.29 161.26
Excluding accumulated other comprehensive income (2) 91.31 97.02 101.12 103.73 105.69
Amount included above for remeasurement of foreign currency (3) (3.48) (3.47) (3.27) (3.12) (3.03)
Excluding accumulated other comprehensive income and adjusted to remove amount
included for remeasurement of foreign currency (3) 94.79 100.49 104.39 106.85 108.72
End of period number of common shares (diluted) 401.8 400.1 393.3 386.1 383.7
Common Stock Price Range (based on closing price):
High 81.29 93.87 108.51 108.01 114.00
Low 61.67 76.40 92.71 95.71 100.05
Close 78.07 91.10 102.47 105.20 108.24
Common Stock market capitalization (1) 30,947 35,921 39,635 39,860 40,731
__________
(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. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
OPERATIONS HIGHLIGHTS
2020 2021
4Q 1Q 2Q 3Q 4Q
Assets Under Management and Administration (in billions) (1)(2):
PGIM:
Institutional customers 614.9 591.8 618.6 625.3 629.4
Retail customers 372.0 381.0 401.2 395.4 401.4
General account 511.7 478.5 491.6 493.2 493.0
Total PGIM 1,498.6 1,451.3 1,511.4 1,513.9 1,523.8
U.S. Businesses (3) 171.7 159.7 162.6 160.0 163.1
International Businesses 14.3 14.5 13.2 12.1 12.8
Corporate and Other (3) 36.3 37.9 42.8 40.6 42.6
Total assets under management 1,720.9 1,663.4 1,730.0 1,726.6 1,742.3
Assets under administration 341.7 360.7 372.2 372.4 382.5
Total assets under management and administration 2,062.6 2,024.1 2,102.2 2,099.0 2,124.8
Distribution Representatives (1):
Prudential Advisors 3,023 3,019 3,005 2,979 2,846
International Life Planners 6,066 6,160 6,071 6,138 6,024
Gibraltar Life Consultants 7,254 7,144 7,088 7,094 7,100
Prudential Advisor Productivity (in thousands) 84 71 80 83 106
__________
(1) As of end of period.
(2) At fair market value.
(3) The amounts for fourth quarter of 2020 have been reclassified to conform to current period presentation.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
COMBINED STATEMENTS OF OPERATIONS
(in millions)
2021 Year-to-date
1Q 2Q 3Q 4Q 2020 2021 % change
Revenues (1):
Premiums 6,887 6,086 12,651 6,723 27,618 32,347 17%
Policy charges and fee income 1,492 1,393 1,589 1,512 5,766 5,986 4%
Net investment income 3,387 3,490 3,666 3,617 13,132 14,160 8%
Asset management fees, commissions and other income 1,990 1,649 1,757 1,892 5,766 7,288 26%
Total revenues 13,756 12,618 19,663 13,744 52,282 59,781 14%
Benefits and expenses (1):
Insurance and annuity benefits 7,530 6,692 13,520 7,626 30,000 35,368 18%
Interest credited to policyholders' account balances 684 667 665 667 2,781 2,683 -4%
Interest expense 375 370 367 362 1,565 1,474 -6%
Deferral of acquisition costs (691) (608) (646) (599) (2,621) (2,544) 3%
Amortization of acquisition costs 542 503 525 510 2,078 2,080 —%
General and administrative expenses 3,273 3,165 3,388 3,593 13,529 13,419 -1%
Total benefits and expenses 11,713 10,789 17,819 12,159 47,332 52,480 11%
Adjusted operating income before income taxes 2,043 1,829 1,844 1,585 4,950 7,301 47%
Income taxes, applicable to adjusted operating income 425 389 357 358 1,037 1,529 47%
After-tax adjusted operating income 1,618 1,440 1,487 1,227 3,913 5,772 48%
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments 1,055 358 98 116 (4,300) 1,627 138%
Market experience updates 304 225 (199) 420 (640) 750 217%
Divested and Run-off Businesses:
Closed Block division 34 31 27 48 (24) 140 683%
Other Divested and Run-off Businesses 45 339 48 284 (450) 716 259%
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (54) 4 (3) 12 90 (41) -146%
Other adjustments (2) (13) (13) (9) (1,077) 51 (1,112) -2280%
Total reconciling items, before income taxes 1,371 944 (38) (197) (5,273) 2,080 139%
Income taxes, not applicable to adjusted operating income 211 220 (98) (188) (1,118) 145 113%
Total reconciling items, after income taxes 1,160 724 60 (9) (4,155) 1,935 147%
Income (loss) before income taxes and equity in earnings of operating joint ventures 3,414 2,773 1,806 1,388 (323) 9,381 3004%
Income tax expense (benefit) 636 609 259 170 (81) 1,674 2167%
Income (loss) before equity in earnings of operating joint ventures 2,778 2,164 1,547 1,218 (242) 7,707 3285%
Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests 50 (6) (17) (10) (132) 17 113%
Income (loss) attributable to Prudential Financial, Inc. 2,828 2,158 1,530 1,208 (374) 7,724 2165%
Earnings attributable to noncontrolling interests (24) 25 35 34 228 70 -69%
Net income (loss) 2,804 2,183 1,565 1,242 (146) 7,794 5438%
Less: Income (loss) attributable to noncontrolling interests (24) 25 35 34 228 70 -69%
Net income (loss) attributable to Prudential Financial, Inc. 2,828 2,158 1,530 1,208 (374) 7,724 2165%
__________
(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 36 and 37 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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Table of Contents

Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
CONSOLIDATED BALANCE SHEETS
(in millions)
12/31/2020 03/31/2021 06/30/2021 09/30/2021 12/31/2021
Assets:
Investments:
Fixed maturities, available-for-sale, at fair value
(net of allowance for credit losses $133; $131; $80; $92; $114) (amortized cost $354,470; $341,122; $338,942; $332,957; $333,459) 412,905 378,596 382,981 373,252 372,410
Fixed maturities, held-to-maturity, at amortized cost, net of allowance for credit losses
(net of allowance for credit losses $9; $7; $7; $6; $5) (fair value $2,298; $2,125; $1,987; $1,956; $1,803) 1,930 1,801 1,662 1,644 1,514
Fixed maturities, trading, at fair value
(amortized cost $3,670; $6,602; $6,690; $9,583; $8,741) 3,914 6,202 6,567 9,548 8,823
Assets supporting experience-rated contractholder liabilities, at fair value 24,115 24,027 24,596 3,424 3,358
Equity securities, at fair value
(cost $5,968; $5,973; $5,413; $5,100; $5,815) 8,135 8,492 8,018 7,727 8,574
Commercial mortgage and other loans
(net of allowance for credit losses $235; $224; $172; $117; $119) 65,425 64,554 64,359 57,786 58,666
Policy loans 11,271 10,990 10,652 10,471 10,386
Other invested assets
(net of allowance for credit losses $2; $2; $2; $2; $2) 18,125 18,863 20,384 20,205 21,833
Short-term investments
(net of allowance for credit losses $1; $2; $0; $0; $0) 7,800 5,304 6,325 4,733 6,635
Total investments 553,620 518,829 525,544 488,790 492,199
Cash and cash equivalents 13,701 16,099 15,145 15,605 12,888
Accrued investment income 3,193 3,063 3,037 2,808 2,855
Deferred policy acquisition costs 19,027 19,273 19,029 18,067 18,192
Value of business acquired 1,103 1,006 1,057 815 771
Other assets
(net of allowance for credit losses $11; $13; $15; $16; $19) (1) 22,801 22,567 21,957 164,645 164,532
Separate account assets 327,277 326,443 340,692 241,852 246,145
Total assets 940,722 907,280 926,461 932,582 937,582
Liabilities:
Future policy benefits 306,343 290,536 289,233 291,721 290,784
Policyholders' account balances 161,682 160,227 159,548 122,337 122,633
Securities sold under agreements to repurchase 10,894 9,384 9,557 9,899 10,185
Cash collateral for loaned securities 3,499 4,673 4,431 4,382 4,251
Income taxes 12,022 9,336 10,196 10,540 9,513
Senior short-term debt 925 867 909 909 722
Senior long-term debt 12,103 12,117 12,055 11,070 11,003
Junior subordinated long-term debt 7,615 7,613 7,615 7,617 7,619
Other liabilities
(net of allowance for credit losses $20; $20; $20; $21; $21) (1) 29,847 27,023 28,257 169,414 171,845
Notes issued by consolidated variable interest entities 305 285 284 282 274
Separate account liabilities 327,277 326,443 340,692 241,852 246,145
Total liabilities 872,512 848,504 862,777 870,023 874,974
Equity:
Accumulated other comprehensive income 30,738 19,219 23,277 21,836 21,324
Other equity 36,687 38,817 39,771 40,051 40,552
Total Prudential Financial, Inc. equity 67,425 58,036 63,048 61,887 61,876
Noncontrolling interests 785 740 636 672 732
Total equity 68,210 58,776 63,684 62,559 62,608
Total liabilities and equity 940,722 907,280 926,461 932,582 937,582
__________
(1) September 30, 2021 and December 31, 2021 balances include the carrying amounts of Assets and Liabilities "held-for-sale" related to the pending dispositions of the Full Service Retirement Business and a portion of Individual Annuities’ Traditional Variable Annuity Block of Business.

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Table of Contents

Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
COMBINING BALANCE SHEETS
(in millions)
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
As of December 31, 2020
Consolidated PFI Closed Block Division PFI Excluding Closed Block Division PGIM U.S. Businesses International Businesses Corporate and Other
Assets:
Total investments 553,620 61,065 492,555 4,462 204,464 211,879 71,750
Deferred policy acquisition costs 19,027 209 18,818 — 11,073 7,668 77
Other assets 40,798 815 39,983 4,176 24,684 11,581 (458)
Separate account assets 327,277 — 327,277 40,042 234,991 — 52,244
Total assets 940,722 62,089 878,633 48,680 475,212 231,128 123,613
Liabilities:
Future policy benefits 306,343 46,762 259,581 — 116,573 128,776 14,232
Policyholders' account balances 161,682 4,874 156,808 — 67,752 51,429 37,627
Debt 20,643 — 20,643 2,218 8,170 95 10,160
Other liabilities 56,567 12,044 44,523 2,893 15,015 18,662 7,953
Separate account liabilities 327,277 — 327,277 40,042 234,991 — 52,244
Total liabilities 872,512 63,680 808,832 45,153 442,501 198,962 122,216
Equity:
Accumulated other comprehensive income 30,738 10 30,728 (39) 13,260 17,219 288
Other equity 36,687 (1,615) 38,302 2,439 19,363 14,912 1,588
Total Prudential Financial, Inc. equity 67,425 (1,605) 69,030 2,400 32,623 32,131 1,876
Noncontrolling interests 785 14 771 1,127 88 35 (479)
Total equity 68,210 (1,591) 69,801 3,527 32,711 32,166 1,397
Total liabilities and equity 940,722 62,089 878,633 48,680 475,212 231,128 123,613
______________
(1) Balances include the carrying amounts of Assets and Liabilities "held-for-sale" related to the pending dispositions of the Full Service Retirement Business and a portion of Individual Annuities’ Traditional Variable Annuity Block of Business.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED
(in millions)
As of December 31, 2020
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 4,975 7,619 12,692 — 5,856 7,615 13,471
Operating Debt 5,650 — 6,070 779 5,666 — 6,445
Limited recourse and non-recourse borrowing 378 — 582 146 581 — 727
Total Debt 11,003 7,619 19,344 925 12,103 7,615 20,643
As of December 31, 2020
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 444 152 12,692 12,967 444 60 13,471
Operating Debt 468 — 6,070 6,018 427 — 6,445
Limited recourse and non-recourse borrowing 274 308 582 — 409 318 727
Total Debt 1,186 460 19,344 18,985 1,280 378 20,643
__________
(1) Includes Prudential Funding, LLC.
(2) Capital Debt at The Prudential Insurance Company of America includes 344 million of surplus notes as of December 31, 2021 and 343 million as of December 31, 2020.

All values are in US Dollars.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
STATEMENTS OF OPERATIONS - PGIM
(in millions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021 % change
Revenues (1):
Premiums — — — — — — — —
Policy charges and fee income — — — — — — — —
Net investment income 115 26 71 13 47 304 157 -48%
Asset management fees, commissions and other income 1,237 1,288 938 1,059 1,051 3,849 4,336 13%
Total revenues 1,352 1,314 1,009 1,072 1,098 4,153 4,493 8%
Benefits and expenses (1):
Insurance and annuity benefits — — — — — — — —
Interest credited to policyholders' account balances — — — — — — — —
Interest expense 6 7 6 6 6 33 25 -24%
Deferral of acquisition costs (1) (2) (1) (1) (1) (7) (5) 29%
Amortization of acquisition costs 2 2 1 2 1 8 6 -25%
General and administrative expenses 941 656 688 738 742 2,857 2,824 -1%
Total benefits and expenses 948 663 694 745 748 2,891 2,850 -1%
Adjusted operating income before income taxes 404 651 315 327 350 1,262 1,643 30%
Total revenues 1,352 1,314 1,009 1,072 1,098 4,153 4,493 8%
Less: Passthrough distribution revenue 31 32 29 30 29 116 120 3%
Less: Revenue associated with consolidations 214 (29) 35 46 19 268 71 -74%
Total adjusted revenues (2) 1,107 1,311 945 996 1,050 3,769 4,302 14%
Adjusted operating margin (2)(3) 36.5 % 49.7 % 33.3 % 32.8 % 33.3 % 33.5 % 38.2 %
__________
(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 31.9%, 30.5%, 31.2%, 49.5%, and 29.9% for the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively, and 36.6%, and 30.4% for the twelve months ended December 31, 2021 and December 31, 2020, respectively. Adjusted Operating Margin excluding the gain on the sale of Pramerica SGR is 29.3% and 32.2% for the three months ended March 31, 2021 and twelve months ended December 31, 2021, respectively.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
PGIM - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION
2021 Year-to-date
1Q 2Q 3Q 4Q 2020 2021 % change
Supplementary Revenue Information (in millions):
Analysis of revenues by type:
Asset management fees 795 803 847 857 2,910 3,302 13%
Other related revenues (1) 82 86 92 143 552 403 -27%
Service, distribution and other revenues 437 120 133 98 691 788 14%
Total PGIM revenues 1,314 1,009 1,072 1,098 4,153 4,493 8%
Analysis of asset management fees by source:
Institutional customers 348 349 366 376 1,350 1,439 7%
Retail customers 302 307 332 334 1,003 1,275 27%
General account 145 147 149 147 557 588 6%
Total asset management fees 795 803 847 857 2,910 3,302 13%
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 470.3 61.9 26.7 6.6 629.4
Retail customers 171.8 1.9 0.8 79.0 401.4
General account 338.6 68.8 81.2 — 493.0
Total 980.7 132.6 108.7 85.6 1,523.8
Public Fixed Income Real Estate Private Credit and Other Alternatives Multi-Asset Total
Institutional customers 471.6 50.8 25.7 5.8 614.9
Retail customers 174.7 1.8 0.7 57.9 372.0
General account 358.2 68.9 80.1 — 511.7
Total 1,004.5 121.5 106.5 63.7 1,498.6
__________
(1) Other related revenues, net of related expenses are 87 million, 56 million, 62 million, 57 million, and 179 million for the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively, and 262 million, and 402 million for the twelve months ended December 31, 2021, and December 31, 2020, respectively.

All values are in US Dollars.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
PGIM - SUPPLEMENTARY ASSETS UNDER MANAGEMENT INFORMATION
(in billions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021
Institutional Customers - Assets Under Management (at fair market value):
Assets gathered by Investment Management & Advisory Services sales force:
Beginning assets under management 530.0 550.2 528.6 555.6 562.4 494.6 550.2
Additions 16.9 21.2 23.0 14.0 20.2 68.4 78.4
Withdrawals (14.4) (20.1) (17.4) (13.3) (16.7) (65.4) (67.5)
Change in market value 23.0 (19.4) 18.8 1.7 4.0 49.2 5.1
Net money market flows (6.0) (2.5) 0.8 (1.1) (1.9) 2.6 (4.7)
Other 0.7 (0.8) 1.8 5.5 — 0.8 6.5
Ending assets under management 550.2 528.6 555.6 562.4 568.0 550.2 568.0
Affiliated institutional assets under management 64.7 63.2 63.0 62.9 61.4 64.7 61.4
Total assets managed for institutional customers at end of period 614.9 591.8 618.6 625.3 629.4 614.9 629.4
Net institutional additions, excluding money market activity 2.5 1.1 5.6 0.7 3.5 3.0 10.9
Retail Customers - Assets Under Management (at fair market value):
Assets gathered by Investment Management & Advisory Services sales force:
Beginning assets under management 230.0 252.5 250.8 266.0 262.8 189.7 252.5
Additions 24.6 29.7 19.2 16.9 23.7 95.0 89.5
Withdrawals (20.8) (25.3) (19.5) (17.3) (27.3) (77.8) (89.4)
Change in market value 18.3 (6.1) 16.9 1.0 5.0 45.2 16.8
Net money market flows 0.2 0.1 0.2 0.3 0.1 0.4 0.7
Other 0.2 (0.1) (1.6) (4.1) 1.5 — (4.3)
Ending assets under management 252.5 250.8 266.0 262.8 265.8 252.5 265.8
Affiliated retail assets under management 119.5 130.2 135.2 132.6 135.6 119.5 135.6
Total assets managed for retail customers at end of period 372.0 381.0 401.2 395.4 401.4 372.0 401.4
Net retail additions (withdrawals), excluding money market activity 3.8 4.4 (0.3) (0.4) (3.6) 17.2 0.1

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES
(in millions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021 % change
Revenues (1):
Premiums 3,706 2,484 2,545 8,639 3,054 11,817 16,722 42%
Policy charges and fee income 1,416 1,405 1,331 1,519 1,440 5,446 5,695 5%
Net investment income 1,914 1,896 1,924 2,110 2,006 7,186 7,936 10%
Asset management fees, commissions and other income 886 815 845 880 991 2,617 3,531 35%
Total revenues 7,922 6,600 6,645 13,148 7,491 27,066 33,884 25%
Benefits and expenses (1):
Insurance and annuity benefits 4,926 3,697 3,550 9,946 4,349 16,216 21,542 33%
Interest credited to policyholders' account balances 441 442 433 436 438 1,801 1,749 -3%
Interest expense 204 198 199 200 201 856 798 -7%
Deferral of acquisition costs (354) (341) (304) (294) (301) (1,250) (1,240) 1%
Amortization of acquisition costs 229 235 252 247 247 915 981 7%
General and administrative expenses 1,682 1,526 1,468 1,523 1,662 5,825 6,179 6%
Total benefits and expenses 7,128 5,757 5,598 12,058 6,596 24,363 30,009 23%
Adjusted operating income before income taxes 794 843 1,047 1,090 895 2,703 3,875 43%
__________
(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. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT
(in millions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021 % change
Revenues (1):
Premiums 2,332 1,021 1,094 7,178 1,502 6,263 10,795 72%
Policy charges and fee income 9 9 9 9 9 34 36 6%
Net investment income 925 925 952 1,054 990 3,446 3,921 14%
Asset management fees, commissions and other income 138 147 115 145 139 308 546 77%
Total revenues 3,404 2,102 2,170 8,386 2,640 10,051 15,298 52%
Benefits and expenses (1):
Insurance and annuity benefits 2,721 1,343 1,570 7,662 1,950 8,009 12,525 56%
Interest credited to policyholders' account balances 95 90 89 85 84 410 348 -15%
Interest expense 4 3 4 4 3 20 14 -30%
Deferral of acquisition costs (7) (5) (2) (8) (3) (17) (18) -6%
Amortization of acquisition costs 5 4 4 9 5 16 22 38%
General and administrative expenses 61 53 55 63 58 228 229 —%
Total benefits and expenses 2,879 1,488 1,720 7,815 2,097 8,666 13,120 51%
Adjusted operating income before income taxes 525 614 450 571 543 1,385 2,178 57%
__________
(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. 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.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
U.S. BUSINESSES - RETIREMENT SALES RESULTS AND ACCOUNT VALUES
(in millions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021
Beginning total account value 234,696 243,387 247,496 243,843 246,068 227,596 243,387
Additions 8,251 9,760 661 8,045 3,501 22,469 21,967
Withdrawals and benefits (5,062) (5,642) (5,744) (4,546) (4,893) (18,288) (20,825)
Change in market value, interest credited and interest income 1,475 (653) 1,346 618 570 8,854 1,881
Other (1) 4,027 644 84 (1,892) 474 2,756 (690)
Ending total account value 243,387 247,496 243,843 246,068 245,720 243,387 245,720
Net additions (withdrawals) 3,189 4,118 (5,083) 3,499 (1,392) 4,181 1,142
Amounts included in ending total account value above:
Investment-only stable value wraps 76,295 74,179 72,857 71,962 70,207
International reinsurance (2)(3) 72,810 81,803 81,402 79,993 82,406
Group annuities and other products (3) 94,282 91,514 89,584 94,113 93,107
Ending total account value 243,387 247,496 243,843 246,068 245,720
__________
(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) Prior period amounts have been reclassified to conform to current period presentation.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - GROUP INSURANCE
(in millions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021 % change
Revenues (1):
Premiums 1,114 1,209 1,201 1,217 1,259 4,499 4,886 9%
Policy charges and fee income 157 194 158 169 174 673 695 3%
Net investment income 137 132 133 142 131 526 538 2%
Asset management fees, commissions and other income 26 21 26 25 26 88 98 11%
Total revenues 1,434 1,556 1,518 1,553 1,590 5,786 6,217 7%
Benefits and expenses (1):
Insurance and annuity benefits 1,230 1,388 1,207 1,394 1,493 4,664 5,482 18%
Interest credited to policyholders' account balances 49 47 43 41 40 206 171 -17%
Interest expense — 1 1 — 1 3 3 —%
Deferral of acquisition costs — — — — (3) — (3) —%
Amortization of acquisition costs 2 1 2 1 1 8 5 -38%
General and administrative expenses 240 251 248 252 263 921 1,014 10%
Total benefits and expenses 1,521 1,688 1,501 1,688 1,795 5,802 6,672 15%
Adjusted operating income (loss) before income taxes (87) (132) 17 (135) (205) (16) (455) -2744%
__________
(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
Fourth Quarter 2021
U.S. BUSINESSES - GROUP INSURANCE SUPPLEMENTARY INFORMATION
(dollar amounts in millions, or as otherwise noted)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021
Annualized New Business Premiums:
Group life 16 175 16 51 23 243 265
Group disability 20 120 35 17 49 163 221
Total 36 295 51 68 72 406 486
Future Policy Benefits (1):
Group life 2,630 2,586 2,482 2,574 2,756
Group disability 2,792 2,862 2,906 2,954 3,030
Total 5,422 5,448 5,388 5,528 5,786
Policyholders' Account Balances (1):
Group life 7,307 6,899 6,624 6,380 6,175
Group disability 163 148 131 131 131
Total 7,470 7,047 6,755 6,511 6,306
Separate Account Liabilities (1):
Group life 28,340 26,739 27,185 27,345 27,097
Group Life Insurance:
Gross premiums, policy charges and fee income (2) 1,040 1,036 1,068 1,004 1,053 4,131 4,161
Earned premiums 863 923 904 915 928 3,450 3,670
Earned policy charges and fee income 138 173 138 148 151 605 610
Benefits ratio (3) 98.6 % 104.2 % 91.1 % 105.2 % 109.8 % 93.6 % 102.7 %
Administrative operating expense ratio 13.2 % 10.8 % 11.0 % 11.7 % 11.5 % 12.4 % 11.3 %
Persistency ratio 96.1 % 96.7 % 96.6 % 96.5 % 96.4 %
Group Disability Insurance:
Gross premiums, policy charges and fee income (2) 279 314 317 322 355 1,151 1,308
Earned premiums 251 286 297 302 331 1,049 1,216
Earned policy charges and fee income 19 21 20 21 23 68 85
Benefits ratio (3) 90.5 % 80.5 % 80.9 % 85.9 % 87.3 % 78.8 % 83.8 %
Administrative operating expense ratio 28.2 % 32.2 % 32.7 % 32.3 % 31.4 % 26.1 % 32.1 %
Persistency ratio 89.6 % 94.0 % 94.0 % 93.5 % 93.4 %
Total Group Insurance:
Benefits ratio (3) 96.9 % 99.0 % 88.8 % 100.7 % 104.3 % 90.4 % 98.3 %
Administrative operating expense ratio 16.4 % 15.8 % 16.1 % 16.8 % 16.5 % 15.4 % 16.3 %
Net face amount of policies in force (in billions) (4) 1,909 1,931 1,960 1,976 2,004
__________
(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 91.1%, 80.9% and 88.7% for the three months ended June 30, 2021, respectively. Benefit ratios including these impacts for Group Life, Group Disability, and Total Group Insurance are 102.7%, 83.8%, 98.3% and 93.4%, 78.4%, 90.2% for the twelve months ended December 31, 2021 and December 31, 2020, respectively.
(4) At end of period; net of reinsurance.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - INDIVIDUAL ANNUITIES
(in millions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021 % change
Revenues (1):
Premiums 29 30 26 24 20 129 100 -22%
Policy charges and fee income 628 643 657 663 655 2,409 2,618 9%
Net investment income 238 224 223 247 231 898 925 3%
Asset management fees, commissions and other income 296 302 322 326 321 1,004 1,271 27%
Total revenues 1,191 1,199 1,228 1,260 1,227 4,440 4,914 11%
Benefits and expenses (1):
Insurance and annuity benefits 87 81 66 73 61 337 281 -17%
Interest credited to policyholders' account balances 83 88 90 92 89 337 359 7%
Interest expense 7 4 5 5 4 59 18 -69%
Deferral of acquisition costs (110) (101) (99) (87) (84) (366) (371) -1%
Amortization of acquisition costs 132 131 154 137 137 524 559 7%
General and administrative expenses 552 552 540 541 534 2,079 2,167 4%
Total benefits and expenses 751 755 756 761 741 2,970 3,013 1%
Adjusted operating income before income taxes 440 444 472 499 486 1,470 1,901 29%
__________
(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
Fourth Quarter 2021
U.S. BUSINESSES - INDIVIDUAL ANNUITIES SALES RESULTS AND ACCOUNT VALUES
(in millions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021
Variable Annuities:
Beginning total account value 158,646 170,546 170,630 176,554 172,813 164,928 170,546
Sales: Highest Daily Suite (1) 209 24 8 3 3 1,471 38
Other variable annuities (2) 1,559 1,726 1,627 1,460 1,503 4,250 6,316
Total sales 1,768 1,750 1,635 1,463 1,506 5,721 6,354
Full surrenders and death benefits (2,079) (2,454) (2,658) (2,545) (2,625) (7,746) (10,282)
Sales, net of full surrenders and death benefits (311) (704) (1,023) (1,082) (1,119) (2,025) (3,928)
Partial withdrawals and other benefit payments (1,347) (1,332) (1,238) (1,237) (1,522) (4,824) (5,329)
Net flows (1,658) (2,036) (2,261) (2,319) (2,641) (6,849) (9,257)
Change in market value, interest credited, and other 14,463 3,034 9,106 (518) 7,176 16,006 18,798
Policy charges (905) (914) (921) (904) (909) (3,539) (3,648)
Ending total account value 170,546 170,630 176,554 172,813 176,439 170,546 176,439
Variable Annuities Account Value by Product:
Highest Daily Suite - risk retained by Prudential (1) 117,942 117,748 120,492 116,741 118,384 117,942 118,384
Highest Daily Suite - externally reinsured living benefits 3,173 3,201 3,299 3,228 3,303 3,173 3,303
Other variable annuities (2) 49,431 49,681 52,763 52,844 54,752 49,431 54,752
Ending total account value 170,546 170,630 176,554 172,813 176,439 170,546 176,439
Fixed Annuities and other products:
Beginning total account value 5,552 5,734 5,812 5,857 5,865 4,753 5,734
Sales 212 105 58 37 45 1,094 245
Full surrenders and death benefits (26) (38) (25) (28) (28) (99) (119)
Sales, net of full surrenders and death benefits 186 67 33 9 17 995 126
Partial withdrawals and other benefit payments (94) (97) (90) (97) (99) (367) (383)
Net flows 92 (30) (57) (88) (82) 628 (257)
Interest credited and other 91 108 102 96 84 354 390
Policy charges (1) — — — (1) (1) (1)
Ending total account value, gross 5,734 5,812 5,857 5,865 5,866 5,734 5,866
Reinsurance ceded (429) (448) (459) (463) (477) (429) (477)
Ending total account value, net 5,305 5,364 5,398 5,402 5,389 5,305 5,389
SALES BY DISTRIBUTION CHANNEL:
Variable and Fixed Annuities (3):
Insurance Agents 649 613 630 578 635 2,336 2,456
Wirehouses 215 134 131 90 113 884 468
Independent Marketing Organization 16 6 3 3 3 202 15
Independent Financial Planners 1,024 1,032 860 762 725 3,033 3,379
Bank Distribution 76 70 69 67 75 360 281
Total 1,980 1,855 1,693 1,500 1,551 6,815 6,599
__________
(1) Includes variable annuities with "Highest Daily" optional living benefits retained by Prudential and predecessor "Lifetime Five" feature.
(2) Includes Prudential Defined Income (PDI), Legacy Protection Plus (LPP) death benefit and products without guaranteed minimum income and withdrawal benefits.
(3) Amounts represent gross sales.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
U.S. BUSINESSES - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY
(in millions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021
Account Values in General Account (1):
Beginning balance 12,487 13,843 15,450 17,102 18,300 11,043 13,843
Premiums and deposits 1,467 1,640 1,512 1,341 1,359 3,209 5,852
Full surrenders and death benefits (89) (107) (94) (93) (101) (317) (395)
Premiums and deposits net of full surrenders and death benefits 1,378 1,533 1,418 1,248 1,258 2,892 5,457
Partial withdrawals and other benefit payments (165) (161) (150) (159) (184) (626) (654)
Net flows 1,213 1,372 1,268 1,089 1,074 2,266 4,803
Interest credited and other 191 204 392 140 701 401 1,437
Net transfers (to) from separate account (47) 31 (8) (31) (12) 134 (20)
Policy charges (1) — — — (1) (1) (1)
Ending balance, gross 13,843 15,450 17,102 18,300 20,062 13,843 20,062
Reinsurance ceded (429) (448) (459) (463) (477) (429) (477)
Ending balance, net 13,414 15,002 16,643 17,837 19,585 13,414 19,585
Account Values in Separate Account (1):
Beginning balance 151,711 162,437 160,992 165,309 160,378 158,638 162,437
Premiums and deposits 513 215 181 159 192 3,606 747
Full surrenders and death benefits (2,016) (2,385) (2,589) (2,480) (2,552) (7,528) (10,006)
Premiums and deposits net of full surrenders and death benefits (1,503) (2,170) (2,408) (2,321) (2,360) (3,922) (9,259)
Partial withdrawals and other benefit payments (1,276) (1,268) (1,178) (1,175) (1,437) (4,565) (5,058)
Net flows (2,779) (3,438) (3,586) (3,496) (3,797) (8,487) (14,317)
Change in market value, interest credited and other 14,363 2,938 8,816 (562) 6,559 15,959 17,751
Net transfers (to) from general account 47 (31) 8 31 12 (134) 20
Policy charges (905) (914) (921) (904) (909) (3,539) (3,648)
Ending balance 162,437 160,992 165,309 160,378 162,243 162,437 162,243
__________
(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.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
U.S. BUSINESSES - INDIVIDUAL ANNUITIES LIVING BENEFIT FEATURES
(in millions)
2020 2021
4Q 1Q 2Q 3Q 4Q
ACCOUNT VALUE AND NET AMOUNT AT RISK (1):
Variable Annuity Account Values
Guaranteed minimum accumulation benefits 1,956 1,862 1,831 1,743 1,702
Guaranteed minimum withdrawal benefits 322 317 319 302 302
Guaranteed minimum income benefits 2,492 2,487 2,547 2,430 2,444
Guaranteed minimum withdrawal & income benefits - risk retained by Prudential 136,486 134,870 138,097 133,982 135,293
Guaranteed minimum withdrawal & income benefits - externally reinsured 3,173 3,201 3,299 3,228 3,303
Total 144,429 142,737 146,093 141,685 143,044
Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature - risk retained by Prudential 112,811 112,565 115,152 111,582 113,110
Account Values with Auto-Rebalancing Feature - externally reinsured 3,173 3,201 3,299 3,228 3,303
Account Values without Auto-Rebalancing Feature 28,445 26,971 27,642 26,875 26,631
Total 144,429 142,737 146,093 141,685 143,044
Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature - risk retained by Prudential 3,513 3,445 2,898 3,287 2,931
Net Amount at Risk without Auto-Rebalancing Feature 509 492 422 450 409
Total 4,022 3,937 3,320 3,737 3,340
__________
(1) At end of period.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
U.S. BUSINESSES - INDIVIDUAL ANNUITIES DEATH BENEFIT FEATURES
(in millions)
2020 2021
4Q 1Q 2Q 3Q 4Q
ACCOUNT VALUE AND NET AMOUNT AT RISK (1):
Variable Annuity Account Values
Return of net deposits:
Account value 133,216 131,685 134,910 130,968 132,265
Net amount at risk 208 220 200 203 199
Minimum return, anniversary contract value, or maximum contract value:
Account value 29,551 29,338 29,959 28,912 29,121
Net amount at risk 2,327 2,339 2,049 2,419 2,055
Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature 115,984 115,766 118,450 114,810 116,413
Account Values without Auto-Rebalancing Feature 46,783 45,257 46,419 45,070 44,973
Total 162,767 161,023 164,869 159,880 161,386
Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature 1,145 1,204 1,027 1,334 1,066
Net Amount at Risk without Auto-Rebalancing Feature 1,390 1,355 1,222 1,288 1,188
Total 2,535 2,559 2,249 2,622 2,254
__________
(1) At end of period.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
U.S. BUSINESSES - STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE
(in millions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021 % change
Revenues (1):
Premiums 231 224 224 220 273 926 941 2%
Policy charges and fee income 622 559 507 678 602 2,330 2,346 1%
Net investment income 613 615 615 667 653 2,314 2,550 10%
Asset management fees, commissions and other income 230 237 270 274 279 828 1,060 28%
Total revenues 1,696 1,635 1,616 1,839 1,807 6,398 6,897 8%
Benefits and expenses (1):
Insurance and annuity benefits 888 885 707 817 845 3,206 3,254 1%
Interest credited to policyholders' account balances 214 217 211 218 225 848 871 3%
Interest expense 191 188 187 187 190 769 752 -2%
Deferral of acquisition costs (237) (235) (203) (199) (211) (867) (848) 2%
Amortization of acquisition costs 90 99 92 100 104 367 395 8%
General and administrative expenses 615 525 476 506 573 2,123 2,080 -2%
Total benefits and expenses 1,761 1,679 1,470 1,629 1,726 6,446 6,504 1%
Adjusted operating income (loss) before income taxes (65) (44) 146 210 81 (48) 393 919%
__________
(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
Fourth Quarter 2021
U.S. BUSINESSES - INDIVIDUAL LIFE SUPPLEMENTARY INFORMATION
(in millions, or as otherwise noted)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021
ANNUALIZED NEW BUSINESS PREMIUMS (1):
Term life 34 31 34 26 24 148 115
Guaranteed Universal life 11 12 18 5 10 94 45
Other Universal life 18 15 16 14 12 91 57
Variable life 176 146 112 144 136 449 538
Total 239 204 180 189 182 782 755
ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):
Prudential Advisors 44 36 40 35 38 146 149
Third party distribution 195 168 140 154 144 636 606
Total 239 204 180 189 182 782 755
ACCOUNT VALUE ACTIVITY:
Policyholders' Account Balances (2):
Beginning balance 29,635 29,950 30,385 30,567 30,602 29,041 29,950
Premiums and deposits 713 755 573 1,103 691 3,024 3,122
Surrenders and withdrawals (354) (305) (293) (888) (386) (1,367) (1,872)
Net sales 359 450 280 215 305 1,657 1,250
Benefit payments (80) (64) (57) (77) (52) (230) (250)
Net flows 279 386 223 138 253 1,427 1,000
Interest credited and other 320 435 374 312 451 982 1,572
Net transfers from separate account 222 123 101 97 88 505 409
Policy charges (506) (509) (516) (512) (518) (2,005) (2,055)
Ending balance 29,950 30,385 30,567 30,602 30,876 29,950 30,876
Separate Account Liabilities:
Beginning balance 37,342 41,428 42,836 45,502 45,555 35,633 41,428
Premiums and deposits 790 740 646 708 762 2,557 2,856
Surrenders and withdrawals (243) (268) (294) (258) (272) (966) (1,092)
Net sales 547 472 352 450 490 1,591 1,764
Benefit payments (72) (152) (136) (140) (150) (408) (578)
Net flows 475 320 216 310 340 1,183 1,186
Change in market value, interest credited and other 4,116 1,501 2,847 147 2,639 6,194 7,134
Net transfers to general account (222) (123) (101) (97) (88) (505) (409)
Policy charges (283) (290) (296) (307) (313) (1,077) (1,206)
Ending balance 41,428 42,836 45,502 45,555 48,133 41,428 48,133
NET FACE AMOUNT IN FORCE (in billions) (3):
Term life 237 239 241 241 299
Guaranteed Universal life 68 68 68 67 69
Other Universal life 30 30 29 29 30
Variable life 138 143 145 149 152
Total 473 480 483 486 550
__________
(1) Excludes corporate-owned life insurance.
(2) Includes fixed rate funds, alliance deposits, supplementary contracts and deferred revenues on variable products.
(3) At end of period; net of reinsurance. Net Face Amount In Force excludes certain policies considered to be non-core business drivers impacting Adjusted Operating Income for Individual Life. Policies within the Closed Block division are not reported through Individual Life.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
U.S. BUSINESSES - STATEMENTS OF OPERATIONS - ASSURANCE IQ
(in millions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021 % change
Revenues (1):
Premiums — — — — — — — —
Policy charges and fee income — — — — — — — —
Net investment income 1 — 1 — 1 2 2 —%
Asset management fees, commissions and other income 196 108 112 110 226 389 556 43%
Total revenues 197 108 113 110 227 391 558 43%
Benefits and expenses (1):
Insurance and annuity benefits — — — — — — — —
Interest credited to policyholders' account balances — — — — — — — —
Interest expense 2 2 2 4 3 5 11 120%
Deferral of acquisition costs — — — — — — — —
Amortization of acquisition costs — — — — — — — —
General and administrative expenses 214 145 149 161 234 474 689 45%
Total benefits and expenses 216 147 151 165 237 479 700 46%
Adjusted operating loss before income taxes (19) (39) (38) (55) (10) (88) (142) -61%
__________
(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. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES
(in millions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021 % change
Revenues (1):
Premiums 3,808 4,411 3,547 4,021 3,682 15,827 15,661 -1%
Policy charges and fee income 87 101 76 86 88 374 351 -6%
Net investment income 1,330 1,300 1,354 1,376 1,373 4,982 5,403 8%
Asset management fees, commissions and other income 150 119 116 135 130 393 500 27%
Total revenues 5,375 5,931 5,093 5,618 5,273 21,576 21,915 2%
Benefits and expenses (1):
Insurance and annuity benefits 3,363 3,836 3,152 3,573 3,289 13,754 13,850 1%
Interest credited to policyholders' account balances 210 209 200 195 195 851 799 -6%
Interest expense 2 1 1 1 3 8 6 -25%
Deferral of acquisition costs (333) (361) (320) (367) (307) (1,416) (1,355) 4%
Amortization of acquisition costs 265 317 264 291 276 1,204 1,148 -5%
General and administrative expenses 1,078 1,058 993 1,038 988 4,223 4,077 -3%
Total benefits and expenses 4,585 5,060 4,290 4,731 4,444 18,624 18,525 -1%
Adjusted operating income before income taxes 790 871 803 887 829 2,952 3,390 15%
__________
(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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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - LIFE PLANNER
(in millions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021 % change
Revenues (1):
Premiums 1,856 2,268 1,826 1,983 1,829 7,740 7,906 2%
Policy charges and fee income 54 62 41 53 51 237 207 -13%
Net investment income 541 533 549 580 582 1,915 2,244 17%
Asset management fees, commissions and other income 80 67 67 79 73 230 286 24%
Total revenues 2,531 2,930 2,483 2,695 2,535 10,122 10,643 5%
Benefits and expenses (1):
Insurance and annuity benefits 1,656 1,989 1,652 1,778 1,658 6,758 7,077 5%
Interest credited to policyholders' account balances 50 51 46 47 49 213 193 -9%
Interest expense 1 1 — 1 2 5 4 -20%
Deferral of acquisition costs (169) (182) (163) (173) (165) (730) (683) 6%
Amortization of acquisition costs 116 150 110 128 122 562 510 -9%
General and administrative expenses 451 457 431 439 441 1,810 1,768 -2%
Total benefits and expenses 2,105 2,466 2,076 2,220 2,107 8,618 8,869 3%
Adjusted operating income before income taxes 426 464 407 475 428 1,504 1,774 18%
__________
(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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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - GIBRALTAR LIFE AND OTHER
(in millions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021 % change
Revenues (1):
Premiums 1,952 2,143 1,721 2,038 1,853 8,087 7,755 -4%
Policy charges and fee income 33 39 35 33 37 137 144 5%
Net investment income 789 767 805 796 791 3,067 3,159 3%
Asset management fees, commissions and other income 70 52 49 56 57 163 214 31%
Total revenues 2,844 3,001 2,610 2,923 2,738 11,454 11,272 -2%
Benefits and expenses (1):
Insurance and annuity benefits 1,707 1,847 1,500 1,795 1,631 6,996 6,773 -3%
Interest credited to policyholders' account balances 160 158 154 148 146 638 606 -5%
Interest expense 1 — 1 — 1 3 2 -33%
Deferral of acquisition costs (164) (179) (157) (194) (142) (686) (672) 2%
Amortization of acquisition costs 149 167 154 163 154 642 638 -1%
General and administrative expenses 627 601 562 599 547 2,413 2,309 -4%
Total benefits and expenses 2,480 2,594 2,214 2,511 2,337 10,006 9,656 -3%
Adjusted operating income before income taxes 364 407 396 412 401 1,448 1,616 12%
__________
(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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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
(in millions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021
Actual exchange rate basis (1):
Net premiums, policy charges and fee income:
Japan, excluding Gibraltar Life 1,736 2,155 1,698 1,845 1,687 7,272 7,385
Gibraltar Life 1,985 2,182 1,756 2,071 1,890 8,224 7,899
All other countries 174 175 169 191 193 705 728
Total 3,895 4,512 3,623 4,107 3,770 16,201 16,012
Annualized new business premiums:
Japan, excluding Gibraltar Life 159 206 184 183 174 866 747
Gibraltar Life 238 258 261 270 211 1,149 1,000
All other countries 43 42 47 51 53 175 193
Total 440 506 492 504 438 2,190 1,940
Annualized new business premiums by distribution channel:
Life Planners 202 248 231 234 227 1,041 940
Gibraltar Life Consultants 108 105 137 150 93 491 485
Banks 98 118 61 71 68 459 318
Independent Agency 32 35 63 49 50 199 197
Total 440 506 492 504 438 2,190 1,940
Constant exchange rate basis (2):
Net premiums, policy charges and fee income:
Japan, excluding Gibraltar Life 1,754 2,186 1,751 1,905 1,772 7,423 7,614
Gibraltar Life 1,997 2,221 1,810 2,133 1,975 8,374 8,139
All other countries 218 223 210 234 248 856 915
Total 3,969 4,630 3,771 4,272 3,995 16,653 16,668
Annualized new business premiums:
Japan, excluding Gibraltar Life 159 208 186 187 179 870 760
Gibraltar Life 238 259 263 271 213 1,153 1,006
All other countries 53 51 58 61 66 205 236
Total 450 518 507 519 458 2,228 2,002
Annualized new business premiums by distribution channel:
Life Planners 212 259 244 248 245 1,075 996
Gibraltar Life Consultants 107 105 138 152 93 495 488
Banks 98 118 61 71 68 459 318
Independent Agency 33 36 64 48 52 199 200
Total 450 518 507 519 458 2,228 2,002
__________
(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 103 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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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
2020 2021
4Q 1Q 2Q 3Q 4Q
Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life 388 388 389 389 389
Gibraltar Life 363 362 361 360 359
All other countries 42 43 44 46 47
Total 793 793 794 795 795
Number of individual policies in force at end of period (in thousands) (3):
Japan, excluding Gibraltar Life 4,286 4,323 4,354 4,385 4,405
Gibraltar Life 7,016 6,982 6,949 6,941 6,907
All other countries 590 602 615 636 652
Total 11,892 11,907 11,918 11,962 11,964
International life insurance individual policy persistency:
Life Planner:
13 months 92.8 % 92.8 % 92.4 % 93.1 % 93.1 %
25 months 86.3 % 87.0 % 86.9 % 87.0 % 86.7 %
Gibraltar Life (4):
13 months 94.9 % 95.0 % 95.2 % 95.7 % 95.9 %
25 months 89.7 % 89.8 % 90.0 % 89.8 % 89.9 %
Number of Life Planners at end of period:
Japan 4,555 4,654 4,595 4,630 4,566
All other countries 1,511 1,506 1,476 1,508 1,458
Total Life Planners 6,066 6,160 6,071 6,138 6,024
Gibraltar Life Consultants 7,254 7,144 7,088 7,094 7,100
__________
(1) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 103 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. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
STATEMENTS OF OPERATIONS - CORPORATE AND OTHER
(in millions)
2020 2021 Year-to-date
4Q 1Q 2Q 3Q 4Q 2020 2021 % change
Revenues (1):
Premiums (9) (8) (6) (9) (13) (26) (36) -38%
Policy charges and fee income (13) (14) (14) (16) (16) (54) (60) -11%
Net investment income 176 165 141 167 191 660 664 1%
Asset management fees, commissions and other income (208) (232) (250) (317) (280) (1,093) (1,079) 1%
Total revenues (54) (89) (129) (175) (118) (513) (511) —%
Benefits and expenses (1):
Insurance and annuity benefits 14 (3) (10) 1 (12) 30 (24) -180%
Interest credited to policyholders' account balances 33 33 34 34 34 129 135 5%
Interest expense 174 169 164 160 152 668 645 -3%
Deferral of acquisition costs 12 13 17 16 10 52 56 8%
Amortization of acquisition costs (11) (12) (14) (15) (14) (49) (55) -12%
General and administrative expenses 245 33 16 89 201 624 339 -46%
Total benefits and expenses 467 233 207 285 371 1,454 1,096 -25%
Adjusted operating loss before income taxes (521) (322) (336) (460) (489) (1,967) (1,607) 18%
Adjusted operating income (loss) before income taxes comprised as follows:
Investment income 34 36 36 40 63 133 175 32%
Interest expense on debt (216) (208) (211) (209) (199) (894) (827) 7%
Long-term and deferred compensation expense (6) (36) (28) (8) (10) (138) (82) 41%
Other (2)(3) (333) (114) (133) (283) (343) (1,068) (873) 18%
Adjusted operating loss before income taxes (521) (322) (336) (460) (489) (1,967) (1,607) 18%
__________
(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.
(3) The amount for fourth quarter of 2020 has been reclassified to conform to current period presentation.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
INVESTMENT PORTFOLIO COMPOSITION
(in millions)
December 31, 2021 December 31, 2020
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
305,035 28,167 276,868 65.0 % 339,288 29,475 309,813 63.7 %
1,413 — 1,413 0.3 % 1,719 — 1,719 0.4 %
66,897 10,237 56,660 13.3 % 72,973 12,749 60,224 12.4 %
101 — 101 0.1 % 211 — 211 0.1 %
8,610 1,137 7,473 1.8 % 3,702 277 3,425 0.7 %
3,358 — 3,358 0.8 % 24,115 — 24,115 5.0 %
7,875 2,288 5,587 1.3 % 7,453 2,345 5,108 1.1 %
57,387 8,241 49,146 11.6 % 64,313 8,421 55,892 11.5 %
10,386 3,815 6,571 1.5 % 11,271 4,064 7,207 1.5 %
16,843 4,358 12,485 2.9 % 14,326 3,610 10,716 2.1 %
6,600 557 6,043 1.4 % 7,764 124 7,640 1.5 %
484,505 58,800 425,705 100.0 % 547,135 61,065 486,070 100.0 %
7,694 — 7,694 6,485 — 6,485
492,199 58,800 433,399 553,620 61,065 492,555
Fixed Maturities by Credit Quality (3)(5): December 31, 2021 December 31, 2020
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
195,493 27,963 595 — 222,861 80.5 % 218,038 39,679 360 — 257,357 83.1 %
38,830 5,254 148 — 43,936 15.9 % 35,349 6,897 48 — 42,198 13.6 %
234,323 33,217 743 — 266,797 96.4 % 253,387 46,576 408 — 299,555 96.7 %
6,313 429 196 — 6,546 2.4 % 6,056 663 64 — 6,655 2.1 %
2,642 88 66 1 2,663 0.9 % 2,290 121 67 — 2,344 0.8 %
620 45 14 3 648 0.2 % 915 100 29 6 980 0.3 %
249 14 19 30 214 0.1 % 331 37 24 65 279 0.1 %
9,824 576 295 34 10,071 3.6 % 9,592 921 184 71 10,258 3.3 %
244,147 33,793 1,038 34 276,868 100.0 % 262,979 47,497 592 71 309,813 100.0 %
12,433 941 71 — 13,303 23.5 % 11,913 1,632 21 — 13,524 22.5 %
31,607 2,029 260 — 33,376 58.9 % 33,109 3,786 132 — 36,763 61.0 %
44,040 2,970 331 — 46,679 82.4 % 45,022 5,418 153 — 50,287 83.5 %
5,966 287 39 — 6,214 11.0 % 5,857 529 31 — 6,355 10.6 %
2,833 106 74 8 2,857 5.0 % 2,829 90 52 23 2,844 4.7 %
769 23 33 24 735 1.3 % 714 23 38 10 689 1.1 %
185 19 1 28 175 0.3 % 40 11 — 2 49 0.1 %
9,753 435 147 60 9,981 17.6 % 9,440 653 121 35 9,937 16.5 %
53,793 3,405 478 60 56,660 100.0 % 54,462 6,071 274 35 60,224 100.0 %
(1) 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. On an amortized cost basis, net of allowance, as of December 31, 2020, includes 1,621 million (fair value, 1,963 million) and 211 million (fair value, 225 million) of public and private fixed maturities, respectively, classified as “1” highest quality and 98 million (fair value, 110 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 December 31, 2021 and 2020, 617 securities with amortized cost of 4,547 million (fair value, 4,596 million) and 102 securities with amortized cost of 356 million (fair value, 382 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. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
INVESTMENT PORTFOLIO COMPOSITION - JAPANESE INSURANCE OPERATIONS AND EXCLUDING JAPANESE INSURANCE OPERATIONS (1)
(in millions)
December 31, 2021 December 31, 2020
Amount % of Total Amount % of Total
Japanese Insurance Operations (2):
146,600 72.2 % 154,261 73.3 %
1,413 0.7 % 1,719 0.8 %
21,079 10.4 % 21,748 10.3 %
101 0.1 % 211 0.1 %
839 0.4 % 550 0.3 %
3,328 1.6 % 3,149 1.5 %
2,187 1.1 % 2,134 1.0 %
19,969 9.8 % 19,915 9.5 %
2,726 1.3 % 3,078 1.5 %
4,203 2.1 % 3,045 1.5 %
692 0.3 % 438 0.2 %
203,137 100.0 % 210,248 100.0 %
December 31, 2021 December 31, 2020
Amount % of Total Amount % of Total
Excluding Japanese Insurance Operations (2):
130,268 58.5 % 155,552 56.4 %
— 0.0 % — 0.0 %
35,581 16.0 % 38,476 14.0 %
— 0.0 % — 0.0 %
6,634 3.0 % 2,875 1.0 %
30 0.0 % 20,966 7.6 %
3,400 1.6 % 2,974 1.1 %
29,177 13.1 % 35,977 13.0 %
3,845 1.7 % 4,129 1.5 %
8,282 3.7 % 7,671 2.8 %
5,351 2.4 % 7,202 2.6 %
222,568 100.0 % 275,822 100.0 %
__________
(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. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
INVESTMENT RESULTS (1)
(in millions)
Three Months Ended December 31
2021 2020
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (5) Amount Yield (5) Amount
General Account (2)
Fixed maturities (3) 3.73 % 2,773 94 3.67 % 2,801 3
Equity securities 3.62 % 48 — 2.98 % 35 —
Commercial mortgage and other loans 4.08 % 512 (2) 3.81 % 470 2
Policy loans 4.47 % 72 — 3.98 % 72 —
Short-term investments and cash equivalents 0.45 % 14 1 0.32 % 15 (1)
Gross investment income before investment expenses 3.68 % 3,419 93 3.53 % 3,393 4
Investment expenses -0.15 % (128) — -0.14 % (121) —
Subtotal 3.53 % 3,291 93 3.39 % 3,272 4
Other investments (3) 488 455 364 (1,583)
Investment results of other entities and operations (4) 222 28 338 (60)
Less: investment income related to adjusted operating income reconciling items (384) (439)
Total 3,617 576 3,535 (1,639)
Twelve Months Ended December 31
2021 2020
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (5) Amount Yield (5) Amount
General Account (2)
Fixed maturities (3) 3.72 % 11,005 1,464 3.75 % 11,291 452
Equity securities 2.32 % 118 — 2.74 % 120 —
Commercial mortgage and other loans 4.00 % 1,966 81 3.94 % 1,901 7
Policy loans 4.65 % 310 — 4.47 % 336 —
Short-term investments and cash equivalents 0.48 % 59 (1) 0.83 % 185 5
Gross investment income before investment expenses 3.65 % 13,458 1,544 3.61 % 13,833 464
Investment expenses -0.15 % (495) — -0.14 % (517) —
Subtotal 3.50 % 12,963 1,544 3.47 % 13,316 464
Other investments (3) 1,870 1,569 658 (4,593)
Investment results of other entities and operations (4) 954 104 1,196 60
Less: investment income related to adjusted operating income reconciling items (1,627) (2,038)
Total 14,160 3,217 13,132 (4,069)
__________
(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 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. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS
(in millions)
Three Months Ended December 31
2021 2020
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (1) Amount Yield (1) Amount
Japanese Insurance Operations:
Fixed maturities (2) 2.68 % 982 83 2.72 % 991 20
Equity securities 5.38 % 30 — 5.20 % 27 —
Commercial mortgage and other loans 4.12 % 204 (2) 3.70 % 181 2
Policy loans 3.92 % 27 — 2.52 % 20 —
Short-term investments and cash equivalents 0.56 % 1 — 0.34 % 2 —
Gross investment income before investment expenses 2.89 % 1,244 81 2.84 % 1,221 22
Investment expenses -0.14 % (61) — -0.14 % (61) —
Subtotal 2.75 % 1,183 81 2.70 % 1,160 22
Other investments (2) 109 85 108 (236)
Total 1,292 166 1,268 (214)
Twelve Months Ended December 31
2021 2020
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (1) Amount Yield (1) Amount
Japanese Insurance Operations:
Fixed maturities (2) 2.72 % 3,921 271 2.78 % 3,875 371
Equity securities 3.52 % 76 — 3.62 % 72 —
Commercial mortgage and other loans 3.92 % 768 33 3.85 % 731 5
Policy loans 4.05 % 114 — 3.23 % 98 —
Short-term investments and cash equivalents 0.48 % 4 — 0.86 % 14 1
Gross investment income before investment expenses 2.88 % 4,883 304 2.91 % 4,790 377
Investment expenses -0.14 % (241) — -0.14 % (245) —
Subtotal 2.74 % 4,642 304 2.77 % 4,545 377
Other investments (2) 457 (391) 245 486
Total 5,099 (87) 4,790 863
__________
(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
Fourth Quarter 2021
INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS (1)
(in millions)
Three Months Ended December 31
2021 2020
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (4) Amount Yield (4) Amount
Excluding Japanese Insurance Operations (2):
Fixed maturities (3) 4.74 % 1,791 11 4.53 % 1,810 (17)
Equity securities 2.37 % 18 — 1.23 % 8 —
Commercial mortgage and other loans 4.05 % 308 — 3.88 % 289 —
Policy loans 4.87 % 45 — 5.11 % 52 —
Short-term investments and cash equivalents 0.44 % 13 1 0.32 % 13 (1)
Gross investment income before investment expenses 4.35 % 2,175 12 4.08 % 2,172 (18)
Investment expenses -0.16 % (67) — -0.13 % (60) —
Subtotal 4.19 % 2,108 12 3.95 % 2,112 (18)
Other investments (3) 379 370 256 (1,347)
Total 2,487 382 2,368 (1,365)
Twelve Months Ended December 31
2021 2020
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (4) Amount Yield (4) Amount
Excluding Japanese Insurance Operations (2):
Fixed maturities (3) 4.68 % 7,084 1,193 4.59 % 7,416 81
Equity securities 1.44 % 42 — 2.01 % 48 —
Commercial mortgage and other loans 4.05 % 1,198 48 4.00 % 1,170 2
Policy loans 5.09 % 196 — 5.31 % 238 —
Short-term investments and cash equivalents 0.48 % 55 (1) 0.83 % 171 4
Gross investment income before investment expenses 4.30 % 8,575 1,240 4.15 % 9,043 87
Investment expenses -0.15 % (254) — -0.14 % (272) —
Subtotal 4.15 % 8,321 1,240 4.01 % 8,771 87
Other investments (3) 1,413 1,960 413 (5,079)
Total 9,734 3,200 9,184 (4,992)
__________
(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 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. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended December 31, 2020
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 — — 476 113 — — 7,312 7,505 — — 525 271 — — 8,301
Policy charges and fee income (70) (16) — 58 — — 1,484 1,490 (13) 8 — 68 — — 1,553
Net investment income (14) — 635 398 — — 4,636 3,535 (9) — 602 448 — — 4,576
Realized investment gains (losses), net 98 193 302 100 — — 878 72 (1,704) 202 (84) (209) — — (1,723)
Asset management fees, commissions and other income 159 — 235 38 (25) — 2,114 1,993 496 — 405 480 (52) — 3,322
Total revenues 173 177 1,648 707 (25) — 16,424 14,595 (1,230) 210 1,448 1,058 (52) — 16,029
Benefits and Expenses:
Insurance and annuity benefits (12) (142) 1,486 209 — — 9,167 8,303 (40) (62) 1,338 369 — — 9,908
Interest credited to policyholders' account balances 75 (22) 31 (28) — — 723 684 150 (22) 31 320 — — 1,163
Interest expense — — — — — — 362 386 — — — 1 — — 387
Deferral of acquisition costs — — — — — — (599) (676) — — — (1) — — (677)
Amortization of acquisition costs (6) (78) 6 3 — — 435 485 (78) (76) 6 2 — — 339
Goodwill impairment — — — — — 1,060 1,060 — — — — — — — —
General and administrative expenses — (1) 77 239 (37) 17 3,888 3,946 (73) (6) 82 250 (204) 14 4,009
Total benefits and expenses 57 (243) 1,600 423 (37) 1,077 15,036 13,128 (41) (166) 1,457 941 (204) 14 15,129
Twelve Months Ended December 31, 2020
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 — — 1,789 691 — — 34,827 27,618 — — 1,982 1,540 — — 31,140
Policy charges and fee income (248) (45) — 251 — — 5,944 5,766 (134) 40 — 357 — — 6,029
Net investment income (40) — 2,500 1,667 — — 18,287 13,132 (39) — 2,240 2,077 — — 17,410
Realized investment gains (losses), net 2,082 380 807 178 — — 4,024 235 (4,236) (236) 182 168 — — (3,887)
Asset management fees, commissions and other income 271 — 851 116 (97) — 7,852 5,531 203 — 362 278 (138) 105 6,341
Total revenues 2,065 335 5,947 2,903 (97) — 70,934 52,282 (4,206) (196) 4,766 4,420 (138) 105 57,033
Benefits and expenses:
Insurance and annuity benefits (165) (200) 5,351 978 — — 41,332 30,000 — 261 4,306 2,117 — — 36,684
Interest credited to policyholders' account balances 450 (45) 124 270 — — 3,482 2,781 10 21 127 1,599 — — 4,538
Interest expense — — — 4 — — 1,478 1,565 — — 1 8 — — 1,574
Deferral of acquisition costs — — — (4) — — (2,548) (2,621) — — — (142) — — (2,763)
Amortization of acquisition costs 153 (163) 21 6 — — 2,097 2,078 (115) 132 26 100 — — 2,221
Goodwill impairment — — — — — 1,060 1,060 — — — — — — — —
General and administrative expenses — (7) 311 933 (56) 52 14,652 13,529 199 30 330 1,188 (228) 54 15,102
Total benefits and expenses 438 (415) 5,807 2,187 (56) 1,112 61,553 47,332 94 444 4,790 4,870 (228) 54 57,356
__________
(1) See page 38 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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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended March 31, 2021 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 6,887 — — 431 225 — — 7,543 6,086 — — 463 230 — — 6,779
Policy charges and fee income 1,492 (76) 6 — 68 — — 1,490 1,393 (43) (16) — 66 — — 1,400
Net investment income 3,387 (12) — 586 421 — — 4,382 3,490 (6) — 629 439 — — 4,552
Realized investment gains (losses), net 169 1,851 95 72 (108) — — 2,079 101 20 129 265 120 — — 635
Asset management fees, commissions and other income 1,821 (367) — 276 (244) (28) — 1,458 1,548 406 — 256 362 (21) — 2,551
Total revenues 13,756 1,396 101 1,365 362 (28) — 16,952 12,618 377 113 1,613 1,217 (21) — 15,917
Benefits and expenses:
Insurance and annuity benefits 7,530 (178) (138) 1,215 285 — — 8,714 6,692 34 (30) 1,466 286 — — 8,448
Interest credited to policyholders' account balances 684 274 (13) 31 (208) — — 768 667 33 (17) 31 360 — — 1,074
Interest expense 375 — — — 2 — — 377 370 — — — 1 — — 371
Deferral of acquisition costs (691) — — — (1) — — (692) (608) — — — (1) — — (609)
Amortization of acquisition costs 542 240 (49) 6 2 — — 741 503 (54) (61) 5 (1) — — 392
General and administrative expenses 3,273 5 (3) 79 237 26 13 3,630 3,165 6 (4) 80 233 (25) 13 3,468
Total benefits and expenses 11,713 341 (203) 1,331 317 26 13 13,538 10,789 19 (112) 1,582 878 (25) 13 13,144
Three Months Ended September 30, 2021
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
Revenues:
Premiums 12,651 — — 419 123 — — 13,193
Policy charges and fee income 1,589 (59) (19) — 59 — — 1,570
Net investment income 3,666 (8) — 650 409 — — 4,717
Realized investment gains (losses), net 122 113 (37) 168 66 — — 432
Asset management fees, commissions and other income 1,635 73 — 84 (40) (23) — 1,729
Total revenues 19,663 119 (56) 1,321 617 (23) — 21,641
Benefits and expenses:
Insurance and annuity benefits 13,520 (9) 110 1,184 198 — — 15,003
Interest credited to policyholders' account balances 665 68 7 31 146 — — 917
Interest expense 367 — — — 1 — — 368
Deferral of acquisition costs (646) — — — (2) — — (648)
Amortization of acquisition costs 525 (27) 25 4 2 — — 529
General and administrative expenses 3,388 (11) 1 75 224 (20) 9 3,666
Total benefits and expenses 17,819 21 143 1,294 569 (20) 9 19,835
__________
(1) See page 38 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.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2021
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
Fourth Quarter 2021
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 Annuity 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 Annuities - 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
Fourth Quarter 2021
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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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2021
RATINGS AND INVESTOR INFORMATION
FINANCIAL STRENGTH RATINGS
as of February 3, 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-
Prudential Annuities Life Assurance Corporation A+ AA- NR A
Prudential Retirement Insurance and Annuity Company A+ AA- Aa3 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 February 3, 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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