Equibles

8-K

PRUDENTIAL FINANCIAL INC (PRU)

8-K 2023-11-01 For: 2023-11-01
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): November 1, 2023

___________________________

PRUDENTIAL FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

___________________________

New Jersey 001-16707 22-3703799
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification Number)

751 Broad Street

Newark, NJ 07102

(Address of principal executive offices and zip code)

(973) 802-6000

(Registrant’s telephone number, including area code)

___________________________

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

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

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

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

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

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered
Common Stock, Par Value $.01 PRU New York Stock Exchange
5.950% Junior Subordinated Notes PRH New York Stock Exchange
5.625% Junior Subordinated Notes PRS New York Stock Exchange
4.125% Junior Subordinated Notes PFH New York Stock Exchange

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

Emerging growth company ☐

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

Item 2.02    Results of Operations and Financial Condition.

Prudential Financial, Inc. (the "Company") furnishes herewith, as Exhibit 99.1, a news release announcing third quarter 2023 results.

Item 7.01    Regulation FD Disclosure.

A. Quarterly Financial Supplement. The Company furnishes herewith, as Exhibit 99.2, the Quarterly Financial Supplement for third quarter 2023.
B. Conference Call and Related Materials. Members of the Company's senior management will hold a conference call on Thursday, November 2, 2023 at 11:00 A.M. ET, to discuss the Company's third quarter 2023 results. Related materials are available on the Company's Investor Relations website at www.investor.prudential.com.

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

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
99.1 News release of Prudential Financial, Inc. datedNovember1, 2023, announcingthirdquarter 2023 results (furnished and not filed).
99.2 Quarterly Financial Supplement for Prudential Financial, Inc. forthirdquarter 2023 (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: November 1, 2023

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

Document

Exhibit 99.1

earningsreleaseheader1a09.jpg

November 1, 2023

Prudential Financial, Inc. Announces

Third Quarter 2023 Results

•Net loss(1) attributable to Prudential Financial, Inc. of $802 million or $2.23 per Common share versus net loss of $92 million or $0.26 per share for the year-ago quarter.

•After-tax adjusted operating income of $1.266 billion or $3.44 per Common share versus $896 million or $2.37 per share for the year-ago quarter.

•Book value per Common share of $70.82 versus $82.83 per share for the year-ago quarter; adjusted book value per Common share of $94.19 versus $96.41 per share for the year-ago quarter.

•Parent company highly liquid assets(2) of $4.3 billion versus $5.1 billion for the year-ago quarter.

•Assets under management(3) of $1.361 trillion versus $1.350 trillion for the year-ago quarter.

•Capital returned to shareholders of $711 million in the third quarter, including $250 million of share repurchases and $461 million of dividends, versus $829 million in the year-ago quarter. Dividends paid in the third quarter were $1.25 per Common share, representing a 5% yield on adjusted book value.

Charles Lowrey, Chairman and CEO, commented on results:

“Our third quarter results reflect continued momentum across our businesses, including the benefits from strong sales and the fifth consecutive quarter of underlying earnings growth.

We continued to execute on our strategy to reduce market sensitivity and increase capital efficiency, enhance our capabilities to better serve customers, and optimize our operating model to drive sustainable growth. We launched Prismic, a life and annuity reinsurance company, which will leverage our differentiated brand, global asset and liability origination capabilities, and multi-channel distribution to drive future growth and unlock value for our customers, shareholders, and other stakeholders over time.

Prudential is uniquely positioned at the intersection of insurance and asset management, with a strategy and evolving business model that support our vision to be a global leader in expanding access to investing, insurance, and retirement security.”

NEWARK, N.J. – Prudential Financial, Inc. (NYSE: PRU) today reported third quarter results. Net loss attributable to Prudential Financial, Inc. was $802 million ($2.23 per Common share) for the third quarter of 2023, compared to a net loss of $92 million ($0.26 per Common share) for the third quarter of 2022. After-tax adjusted operating income was $1.266 billion ($3.44 per Common share) for the third quarter of 2023, compared to $896 million ($2.37 per Common share) for the third quarter of 2022.

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.

  • more -
Prudential Financial, Inc. Third Quarter 2023 Earnings Release Page 2

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 $211 million for the third quarter of 2023, compared to $219 million in the year-ago quarter. This decrease primarily reflects lower other related revenues, driven by lower agency and seed and co-investment income, and higher expenses.

PGIM assets under management of $1.219 trillion were up 1% from the year-ago quarter, primarily resulting from equity market appreciation and spread compression, partially offset by net outflows and the impact of higher interest rates. Third-party net outflows of $5.7 billion in the current quarter reflect institutional outflows of $3.8 billion, primarily driven by public fixed income outflows, and retail outflows of $1.9 billion, driven by public equity outflows.

U.S. Businesses

U.S. Businesses reported adjusted operating income of $1.088 billion for the third quarter of 2023, compared to $615 million in the year-ago quarter. This increase primarily reflects higher net investment spread results and lower expenses, partially offset by lower net fee income.

Retirement Strategies, consisting of Institutional Retirement Strategies and Individual Retirement Strategies, reported adjusted operating income of $941 million for the third quarter of 2023, compared to $655 million in the year-ago quarter.

Institutional Retirement Strategies:

•Reported adjusted operating income of $439 million in the current quarter, compared to $268 million in the year-ago quarter. This increase primarily reflects higher net investment spread results, including higher variable investment income.

•Account values of $246 billion increased 3% from the year-ago quarter, reflecting the benefits of business growth and favorable foreign exchange impacts, partially offset by the reinsurance of a block of structured settlements. Sales in the current quarter of $4.7 billion included $2.5 billion of pension risk transfer transactions.

Individual Retirement Strategies:

•Reported adjusted operating income of $502 million in the current quarter, compared to $387 million in the year-ago quarter. This increase primarily reflects higher net investment spread results, partially offset by lower fee income, net of distribution expenses and other associated costs.

•Account values of $110 billion were down 4% from the year-ago quarter, reflecting the reinsurance of a block of legacy variable annuities and net outflows, partially offset by market appreciation. Sales of $2.0 billion in the current quarter increased 40% from the year-ago quarter, reflecting continued momentum from our FlexGuard products and increased sales of fixed annuity products.

Group Insurance:

•Reported adjusted operating income of $89 million in the current quarter, compared to $30 million in the year-ago quarter. This increase primarily reflects more favorable group life underwriting results.

•Reported earned premiums, policy charges, and fees of $1.4 billion increased 3% from the year-ago quarter, reflecting growth in both disability and life.

Individual Life:

•Reported adjusted operating income of $58 million in the current quarter, compared to a loss of $70 million in the year-ago quarter. This increase primarily reflects higher net investment spread results and lower expenses, including a reduction in legal reserves, partially offset by less favorable underwriting results.

  • more -
Prudential Financial, Inc. Third Quarter 2023 Earnings Release Page 3

•Sales of $186 million in the current quarter increased 24% from the year-ago quarter, driven by Variable Life and Term sales, reflecting our pivot to less market sensitive products.

International Businesses

International Businesses, consisting of Life Planner and Gibraltar Life & Other, reported adjusted operating income of $811 million for the third quarter of 2023, compared to $748 million in the year-ago quarter. This increase primarily reflects higher net investment spread results.

Life Planner:

•Reported adjusted operating income of $527 million in the current quarter, compared to $430 million in the year-ago quarter. This increase reflects higher net investment spread results and more favorable underwriting results.

•Constant dollar basis sales(4) of $259 million in the current quarter increased 18% from the year-ago quarter, primarily driven by record high sales in Brazil, as well as higher sales in Japan.

Gibraltar Life & Other:

•Reported adjusted operating income of $284 million in the current quarter, compared to $318 million in the year-ago quarter. This decrease primarily reflects lower net investment spread results.

•Constant dollar basis sales(4) of $246 million in the current quarter increased 20% from the year-ago quarter, primarily driven by the Bank channel.

Corporate & Other

Corporate & Other reported a loss, on an adjusted operating income basis, of $504 million for the third quarter of 2023, compared to a loss of $415 million in the year-ago quarter. This higher loss primarily reflects higher expenses, less favorable foreign exchange rate impacts, and lower income from pension and other employee benefit plans, partially offset by higher net investment income and lower debt interest costs.

NET INCOME

Net Loss in the current quarter included $2.491 billion of pre-tax net realized investment losses and related charges and adjustments, largely reflecting the impacts of rising interest rates, and also $107 million of pre-tax net impairment and credit-related losses, $251 million of pre-tax losses related to net change in value of market risk benefits, $44 million of pre-tax losses from divested and run-off businesses, and $143 million of pre-tax gains related to market experience updates.

Net loss for the year-ago quarter included $1.243 billion of pre-tax net realized investment losses and related charges and adjustments, largely reflecting the impacts of rising interest rates, and also $75 million of pre-tax net impairment and credit-related losses, $74 million of pre-tax losses from divested and run-off businesses, $58 million of pre-tax losses related to net change in value of market risk benefits, and $125 million of pre-tax gains related to market experience updates.

EARNINGS CONFERENCE CALL

Members of Prudential’s senior management will host a conference call on Thursday, November 2, 2023, at 11:00 a.m. ET to discuss with the investment community the Company’s third 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 interested parties are invited to listen to the call by dialing one of the following numbers: (877) 407-8293 (domestic) or (201) 689-8349 (international). A replay will be available on the Investor Relations website through November 16. To access a replay via phone starting at 3:00 p.m. ET on November 2 through November 16, dial (877) 660-6853 (domestic) or (201) 612-7415 (international) and use replay code 13733992.

prurocklogoa04.jpg

  • more -
Prudential Financial, Inc. Third Quarter 2023 Earnings Release Page 4

FORWARD-LOOKING STATEMENTS

Certain of the statements included in this release, including those regarding Prismic and our expectations relating thereto, and other business strategies, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. Prudential Financial, Inc.’s actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in the “Risk Factors” and “Forward-Looking Statements” sections included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. The forward-looking statements herein are subject to the risk, among others, that we will be unable to execute our strategy because of market or competitive conditions or other factors. Prudential Financial, Inc. does not undertake to update any particular forward-looking statement included in this document.

NON-GAAP MEASURES

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

We believe that our use of these non-GAAP measures helps investors understand and evaluate the Company’s performance and financial position. The presentation of adjusted operating income as we measure it for management purposes enhances the understanding of the results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described below. Adjusted book value augments the understanding of our financial position by providing a measure of net worth that is primarily 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, 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 “Change in value of market risk benefits, net of related hedging gains (losses)”, which reflects the impact from changes in current market conditions, and market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which we believe enhances the understanding of underlying performance trends. Adjusted operating income also excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations, and

  • more -
Prudential Financial, Inc. Third Quarter 2023 Earnings Release Page 5

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, 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)On January 1, 2023, the Company adopted Accounting Standard Update 2018-12 for Targeted Improvements to the Accounting for Long-Duration Contracts, which provided new authoritative guidance impacting the accounting and disclosure requirements for long-duration insurance and investment contracts issued by the Company. Prior-year amounts have been adjusted to reflect this guidance.

(2)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 titled “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.

(3)For more information about assets under management, see the section titled “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.

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

Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.4 trillion in assets under management as of September 30, 2023, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise, and innovation for nearly 150 years. For more information, please visit news.prudential.com.

MEDIA CONTACT: Laura Edling, laura.edling@prudential.com

  • more -
Financial Highlights
(in millions, unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
2023 2022 2023 2022
Adjusted operating income (loss) before income taxes (1):
PGIM $ 211 $ 219 $ 541 $ 613
U.S. Businesses 1,088 615 2,804 2,001
International Businesses 811 748 2,435 2,391
Corporate and Other (504) (415) (1,516) (1,152)
Total adjusted operating income before income taxes $ 1,606 $ 1,167 $ 4,264 $ 3,853
Reconciling Items:
Realized investment losses, net, and related charges and adjustments $ (2,491) $ (1,243) $ (2,887) $ (5,402)
Change in value of market risk benefits, net of related hedging gains (losses) (251) (58) (160) (1,072)
Market experience updates 143 125 188 617
Divested and Run-off Businesses:
Closed Block division 2 (21) (50) 22
Other Divested and Run-off Businesses (46) (53) 125 175
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (11) (33) (42) (18)
Other adjustments (2) (10) (10) (28) (27)
Total reconciling items, before income taxes (2,664) (1,293) (2,854) (5,705)
Income (loss) before income taxes and equity in earnings of operating joint ventures $ (1,058) $ (126) $ 1,410 $ (1,852)
Income Statement Data:
Net income (loss) attributable to Prudential Financial, Inc. $ (802) $ (92) $ 1,171 $ (1,595)
Income (loss) attributable to noncontrolling interests 11 (16) 11 (36)
Net income (loss) (791) (108) 1,182 (1,631)
Less: Earnings attributable to noncontrolling interests 11 (16) 11 (36)
Income (loss) attributable to Prudential Financial, Inc. (802) (92) 1,171 (1,595)
Less: Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests 5 23 15 (17)
Income (loss) (after-tax) before equity in earnings of operating joint ventures (807) (115) 1,156 (1,578)
Less: Total reconciling items, before income taxes (2,664) (1,293) (2,854) (5,705)
Less: Income taxes, not applicable to adjusted operating income (591) (282) (667) (1,145)
Total reconciling items, after income taxes (2,073) (1,011) (2,187) (4,560)
After-tax adjusted operating income (1) 1,266 896 3,343 2,982
Income taxes, applicable to adjusted operating income 340 271 921 871
Adjusted operating income before income taxes (1) $ 1,606 $ 1,167 $ 4,264 $ 3,853
See footnotes on last page.

Page 1

Financial Highlights
(in millions, except per share data, unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
2023 2022 2023 2022
Earnings per share of Common Stock:
Net income (loss) attributable to Prudential Financial, Inc. $ (2.23) $ (0.26) $ 3.15 $ (4.32)
Less: Reconciling Items:
Realized investment losses, net, and related charges and adjustments (6.85) (3.33) (7.89) (14.35)
Change in value of market risk benefits, net of related hedging gains (losses) (0.69) (0.16) (0.44) (2.85)
Market experience updates 0.39 0.34 0.51 1.64
Divested and Run-off Businesses:
Closed Block division 0.01 (0.06) (0.14) 0.06
Other Divested and Run-off Businesses (0.13) (0.14) 0.34 0.46
Difference in earnings allocated to participating unvested share-based payment awards 0.02 0.02 0.06 0.06
Other adjustments (2) (0.03) (0.03) (0.08) (0.07)
Total reconciling items, before income taxes (7.28) (3.36) (7.64) (15.05)
Less: Income taxes, not applicable to adjusted operating income (1.61) (0.73) (1.76) (2.91)
Total reconciling items, after income taxes (5.67) (2.63) (5.88) (12.14)
After-tax adjusted operating income $ 3.44 $ 2.37 $ 9.03 $ 7.82
Weighted average number of outstanding common shares - basic 362.6 371.0 364.6 373.8
Weighted average number of outstanding common shares - diluted 363.8 373.1 365.8 376.4
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc. $ (802) $ (92) $ 1,171 $ (1,595)
Less: Earnings allocated to participating unvested share-based payment awards 5 6 17 19
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation $ (807) $ (98) $ 1,154 $ (1,614)
After-tax adjusted operating income (1) $ 1,266 $ 896 $ 3,343 $ 2,982
Less: Earnings allocated to participating unvested share-based payment awards 14 12 39 40
After-tax adjusted operating income for earnings per share of Common Stock calculation (1) $ 1,252 $ 884 $ 3,304 $ 2,942
Prudential Financial, Inc. Equity (as of end of period):
GAAP book value (total PFI equity) at end of period $ 25,814 $ 30,962
Less: Accumulated other comprehensive income (AOCI) (7,831) (4,230)
GAAP book value excluding AOCI 33,645 35,192
Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses) (687) (847)
Adjusted book value $ 34,332 $ 36,039
End of period number of common shares - diluted 364.5 373.8
GAAP book value per common share - diluted 70.82 82.83
GAAP book value excluding AOCI per share - diluted 92.30 94.15
Adjusted book value per common share - diluted 94.19 96.41
See footnotes on last page.

Page 2

Financial Highlights
(in millions, or as otherwise noted, unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
2023 2022 2023 2022
PGIM:
PGIM:
Assets Managed by PGIM (in billions, as of end of period):
Institutional customers $ 547.6 $ 536.3
Retail customers 312.5 298.1
General account 358.5 371.8
Total PGIM $ 1,218.6 $ 1,206.2
Institutional Customers - Assets Under Management (in billions):
Gross additions, excluding money market $ 14.4 $ 16.4 $ 47.2 $ 57.8
Net additions (withdrawals), excluding money market $ (3.8) $ 0.6 $ (17.0) $ 9.0
Retail Customers - Assets Under Management (in billions):
Gross additions, excluding money market $ 11.9 $ 13.5 $ 37.1 $ 49.8
Net withdrawals, excluding money market $ (1.9) $ (4.6) $ (7.9) $ (17.5)
U.S. Businesses:
Retirement Strategies:
Institutional Retirement Strategies:
Gross additions $ 4,697 $ 13,518 $ 14,211 $ 19,496
Net additions (withdrawals) $ (3,084) $ 9,827 $ (4,909) $ 7,346
Total account value at end of period, net $ 245,660 $ 238,313
Individual Retirement Strategies:
Actively-Sold Protected Investment and Income Solutions and, Discontinued Traditional VA and Guaranteed Living Benefits:
Gross sales (3) $ 1,943 $ 1,375 $ 5,502 $ 4,474
Sales, net of full surrenders and death benefits $ 198 $ 164 $ 635 $ (443)
Total account value at end of period, net $ 110,106 $ 115,153
Group Insurance:
Group Insurance Annualized New Business Premiums (4):
Group life $ 61 $ 67 $ 255 $ 273
Group disability 34 36 216 183
Total $ 95 $ 103 $ 471 $ 456
Individual Life:
Individual Life Insurance Annualized New Business Premiums (4):
Term life $ 33 $ 24 $ 87 $ 71
Universal life 17 23 54 67
Variable life 136 103 391 317
Total $ 186 $ 150 $ 532 $ 455
International Businesses:
International Businesses:
International Businesses Annualized New Business Premiums (4)(5):
Actual exchange rate basis $ 491 $ 413 $ 1,489 $ 1,331
Constant exchange rate basis $ 505 $ 424 $ 1,527 $ 1,341
See footnotes on last page.

Page 3

Financial Highlights
(in billions, as of end of period, unaudited)
September 30
2023 2022
Assets and Assets Under Management and Administration:
Total assets $ 681.3 $ 677.1
Assets under management (at fair market value):
PGIM $ 1,218.6 $ 1,206.2
U.S. Businesses 119.9 123.4
International Businesses 16.4 13.8
Corporate and Other 6.4 6.1
Total assets under management 1,361.3 1,349.5
Assets under administration 164.7 139.4
Total assets under management and administration $ 1,526.0 $ 1,488.9

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 certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments.
(3) Includes Prudential FlexGuard and FlexGuard Income, Prudential Premier Investment, MyRock and all fixed annuity products. Excludes discontinued traditional variable annuities and guaranteed living benefits.
(4) 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.
(5) Actual amounts reflect the impact of currency fluctuations. Constant amounts reflect foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 110 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 5

Document

Table of Contents

Exhibit 99.2

Prudential Financial, Inc. (PRU)
Quarterly Financial Supplement
Third Quarter 2023
Reference is made to Prudential Financial, Inc.'s (PFI) filings with the Securities and Exchange Commission for general information and consolidated financial information. All financial information in this document is unaudited.

i

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
TABLE OF CONTENTS
Page
HIGHLIGHTS
Financial Metrics Summary 1
Financial Highlights 2
Other Financial Highlights 3
Operations Highlights 4
Combined Statements of Operations 5
Consolidated Balance Sheets 6
Combining Balance Sheets 7
Short-Term and Long-Term Debt - Unaffiliated 8
PGIM
Statements of Operations 9
Supplementary Revenue and Assets Under Management Information 10
Supplementary Assets Under Management Information 11
U.S.BUSINESSES
Combined Statements of Operations 12
Combined Statements of Operations - Retirement Strategies 13
Statements of Operations - Institutional Retirement Strategies 14
Institutional Retirement Strategies Sales Results and Account Values 15
Statements of Operations - Individual Retirement Strategies 16
Individual Retirement Strategies Sales Results and Account Values 17
Individual Retirement Strategies Account Value Activity 18
Individual Retirement Strategies Market Risk Benefit Features 19
Statements of Operations - Group Insurance 20
Group Insurance Supplementary Information 21
Statements of Operations - Individual Life 22
Individual Life Supplementary Information 23
INTERNATIONAL BUSINESSES
Combined Statements of Operations 24
Statements of Operations - Life Planner 25
Statements of Operations - Gibraltar Life and Other 26
Sales Results and Supplementary Information 27
CORPORATE AND OTHER
Statements of Operations 29
INVESTMENT PORTFOLIO
Investment Portfolio Composition 30
Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations 31
Investment Results 32
Investment Results - Japanese Insurance Operations 33
Investment Results - Excluding Japanese Insurance Operations 34
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES 35
KEY DEFINITIONS AND FORMULAS 39
RATINGS AND INVESTOR INFORMATION 42

ii

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
FINANCIAL METRICS SUMMARY
(in millions, except per share and return on equity data)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023 % change
Earnings
Adjusted operating income (loss) before income taxes:
PGIM 219 230 151 179 211 613 541 -12%
U.S. Businesses 615 710 760 956 1,088 2,001 2,804 40%
International Businesses 748 814 840 784 811 2,391 2,435 2%
Corporate and Other (415) (525) (485) (527) (504) (1,152) (1,516) -32%
Total adjusted operating income before income taxes 1,167 1,229 1,266 1,392 1,606 3,853 4,264 11%
Income taxes, applicable to adjusted operating income 271 297 276 305 340 871 921 6%
After-tax adjusted operating income 896 932 990 1,087 1,266 2,982 3,343 12%
Income (loss) attributable to Prudential Financial, Inc. (92) (52) 1,462 511 (802) (1,595) 1,171 173%
Return on Equity
Operating Return on Average Equity (based on adjusted operating income) (1) 9.8 % 10.5 % 11.2 % 12.2 % 14.5 % 10.4 % 12.7 %
Return on Average Equity (based on net income (loss)) -1.2 % -0.7 % 18.9 % 6.8 % -11.8 % -7.0 % 5.4 %
Distributions to Shareholders
Dividends paid 454 449 468 463 461 1,373 1,392 1%
Share repurchases 375 375 250 250 250 1,125 750 -33%
Total capital returned 829 824 718 713 711 2,498 2,142 -14%
Per Share Data
Net income (loss) - diluted (2) (0.26) (0.16) 3.93 1.38 (2.23) (4.32) 3.15 173%
Adjusted Operating Income - diluted 2.37 2.49 2.66 2.94 3.44 7.82 9.03 15%
Shareholder dividends 1.20 1.20 1.25 1.25 1.25 3.60 3.75 4%
GAAP book value - diluted 82.83 82.48 85.33 77.65 70.82
Adjusted book value - diluted (3) 96.41 94.69 97.29 97.38 94.19
Shares Outstanding
Weighted average number of common shares - basic 371.0 367.6 366.5 364.8 362.6 373.8 364.6 -2%
Weighted average number of common shares - diluted 373.1 369.4 367.7 366.1 363.8 376.4 365.8 -3%
End of period common shares - basic 369.1 366.0 365.9 363.4 361.3
End of period common shares - diluted 373.8 370.9 367.8 366.2 364.5
__________
(1) Operating Return on Average Equity (based on adjusted operating income) is a non-GAAP measure and represents adjusted operating income after-tax, annualized for interim periods, divided by average Prudential Financial, Inc. equity excluding accumulated other comprehensive income and adjusted to remove amounts included for foreign currency exchange rate remeasurement as described on page 3.
(2) For the three months ended September 30, 2023, December 31, 2022 and September 30, 2022, and for the nine months ended September 30, 2022 weighted average shares for basic earnings per share is used for calculating diluted earnings per share because dilutive shares and dilutive earnings per share are not applicable when a net loss is reported. As a result of the net loss attributable to Prudential Financial available to holders of Common Stock for the three months ended September 30, 2023, December 31, 2022 and September 30, 2022, and for the nine months ended September 30, 2022 all potential stock options and compensation programs were considered antidilutive.
(3) 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.

Page 1

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023
Earnings per share of Common Stock - diluted:
After-tax adjusted operating income 2.37 2.49 2.66 2.94 3.44 7.82 9.03
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments (3.33) (2.50) 1.00 (2.09) (6.85) (14.35) (7.89)
Change in value of market risk benefits, net of related hedging gains (losses) (0.16) 1.70 0.20 0.04 (0.69) (2.85) (0.44)
Market experience updates 0.34 0.07 0.13 (0.01) 0.39 1.64 0.51
Divested and Run-off Businesses:
Closed Block division (0.06) (0.11) (0.01) (0.13) 0.01 0.06 (0.14)
Other Divested and Run-off Businesses (0.14) (0.08) 0.29 0.17 (0.13) 0.46 0.34
Difference in earnings allocated to participating unvested share-based payment awards 0.02 0.02 (0.01) 0.02 0.02 0.06 0.06
Other adjustments (1) (0.03) (2.47) (0.02) (0.02) (0.03) (0.07) (0.08)
Total reconciling items, before income taxes (3.36) (3.37) 1.58 (2.02) (7.28) (15.05) (7.64)
Income taxes, not applicable to adjusted operating income (0.73) (0.72) 0.31 (0.46) (1.61) (2.91) (1.76)
Total reconciling items, after income taxes (2.63) (2.65) 1.27 (1.56) (5.67) (12.14) (5.88)
Net income (loss) attributable to Prudential Financial, Inc. (0.26) (0.16) 3.93 1.38 (2.23) (4.32) 3.15
Weighted average number of outstanding common shares - basic 371.0 367.6 366.5 364.8 362.6 373.8 364.6
Weighted average number of outstanding common shares - diluted 373.1 369.4 367.7 366.1 363.8 376.4 365.8
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc. (92) (52) 1,462 511 (802) (1,595) 1,171
Less: Earnings allocated to participating unvested share-based payment awards 6 6 18 6 5 19 17
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation (98) (58) 1,444 505 (807) (1,614) 1,154
After-tax adjusted operating income 896 932 990 1,087 1,266 2,982 3,343
Less: Earnings allocated to participating unvested share-based payment awards 12 12 13 12 14 40 39
After-tax adjusted operating income for earnings per share of Common Stock calculation 884 920 977 1,075 1,252 2,942 3,304
___________
(1) Represents adjustments not included in the above reconciling items, including a goodwill impairment that resulted in a charge in fourth quarter of 2022 related to Assurance IQ. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.

Page 2

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
OTHER FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2022 2023
3Q 4Q 1Q 2Q 3Q
Capitalization Data (1):
Senior Debt:
Short-term Debt 767 775 705 763 615
Long-term Debt 10,810 10,814 10,860 10,787 10,787
Junior Subordinated Long-term Debt 9,088 9,094 9,591 8,089 8,090
Prudential Financial, Inc. Equity:
GAAP book value (total PFI equity) at end of period 30,962 30,593 31,385 28,434 25,814
Less: Accumulated other comprehensive income (AOCI) (4,230) (3,806) (3,825) (6,649) (7,831)
GAAP book value excluding AOCI (2) 35,192 34,399 35,210 35,083 33,645
Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses) (3) (847) (723) (575) (578) (687)
Adjusted book value 36,039 35,122 35,785 35,661 34,332
Book Value per Share of Common Stock:
GAAP book value per common share - diluted 82.83 82.48 85.33 77.65 70.82
GAAP book value excluding AOCI per share - diluted (2) 94.15 92.74 95.73 95.80 92.30
Adjusted book value per common share - diluted 96.41 94.69 97.29 97.38 94.19
End of period number of common shares - diluted 373.8 370.9 367.8 366.2 364.5
Common Stock Price Range (based on closing price):
High 105.49 110.21 104.94 88.22 99.14
Low 85.78 89.19 77.23 78.04 88.66
Close 85.78 99.46 82.74 88.22 94.89
Common Stock market capitalization (1) 31,661 36,402 30,275 32,059 34,284
__________
(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.

Page 3

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
OPERATIONS HIGHLIGHTS
2022 2023
3Q 4Q 1Q 2Q 3Q
Assets Under Management and Administration (in billions) (1)(2):
PGIM:
Institutional customers 536.3 549.2 561.2 556.7 547.6
Retail customers 298.1 299.6 314.4 324.1 312.5
General account 371.8 379.6 394.2 385.0 358.5
Total PGIM 1,206.2 1,228.4 1,269.8 1,265.8 1,218.6
U.S. Businesses 123.4 126.7 126.0 127.0 119.9
International Businesses 13.8 16.1 15.3 15.7 16.4
Corporate and Other 6.1 6.1 5.9 6.1 6.4
Total assets under management 1,349.5 1,377.3 1,417.0 1,414.6 1,361.3
Assets under administration 139.4 157.4 158.6 166.6 164.7
Total assets under management and administration 1,488.9 1,534.7 1,575.6 1,581.2 1,526.0
Distribution Representatives (1):
Prudential Advisors 2,774 2,616 2,627 2,638 2,681
International Life Planners 5,972 5,924 5,978 5,806 5,917
Gibraltar Life Consultants 6,861 6,821 6,689 6,648 6,736
__________
(1) As of end of period.
(2) At fair market value.

Page 4

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
COMBINED STATEMENTS OF OPERATIONS
(in millions)
2023 Year-to-date
4Q 1Q 2Q 3Q 2022 2023 % change
Revenues (1):
Premiums 5,904 8,833 6,368 3,659 28,466 18,860 -34%
Policy charges and fee income 1,100 1,073 1,032 1,060 3,175 3,165 —%
Net investment income 3,483 3,671 3,814 3,893 9,701 11,378 17%
Asset management fees, commissions and other income 1,719 1,527 1,430 1,514 5,997 4,471 -25%
Total revenues 12,206 15,104 12,644 10,126 47,339 37,874 -20%
Benefits and expenses (1):
Insurance and annuity benefits 6,614 9,588 6,931 4,348 31,023 20,867 -33%
Change in estimates of liability for future policy benefits 50 22 159 49 901 230 -74%
Interest credited to policyholders' account balances 735 756 780 804 1,927 2,340 21%
Interest expense 417 441 461 422 1,172 1,324 13%
Deferral of acquisition costs (539) (569) (546) (576) (1,616) (1,691) -5%
Amortization of acquisition costs 328 355 355 351 1,053 1,061 1%
General and administrative expenses 3,372 3,245 3,112 3,122 9,026 9,479 5%
Total benefits and expenses 10,977 13,838 11,252 8,520 43,486 33,610 -23%
Adjusted operating income before income taxes 1,229 1,266 1,392 1,606 3,853 4,264 11%
Income taxes, applicable to adjusted operating income 297 276 305 340 871 921 6%
After-tax adjusted operating income 932 990 1,087 1,266 2,982 3,343 12%
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments (924) 369 (765) (2,491) (5,402) (2,887) 47%
Change in value of market risk benefits, net of related hedging gains (losses) 629 75 16 (251) (1,072) (160) 85%
Market experience updates 25 48 (3) 143 617 188 -70%
Divested and Run-off Businesses:
Closed Block division (40) (4) (48) 2 22 (50) -327%
Other Divested and Run-off Businesses (29) 107 64 (46) 175 125 -29%
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (18) (5) (26) (11) (18) (42) -133%
Other adjustments (2) (912) (9) (9) (10) (27) (28) -4%
Total reconciling items, before income taxes (1,269) 581 (771) (2,664) (5,705) (2,854) 50%
Income taxes, not applicable to adjusted operating income (302) 106 (182) (591) (1,145) (667) 42%
Total reconciling items, after income taxes (967) 475 (589) (2,073) (4,560) (2,187) 52%
Income (loss) before income taxes and equity in earnings of operating joint ventures (40) 1,847 621 (1,058) (1,852) 1,410 176%
Income tax expense (benefit) (5) 382 123 (251) (274) 254 193%
Income (loss) before equity in earnings of operating joint ventures (35) 1,465 498 (807) (1,578) 1,156 173%
Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests (17) (3) 13 5 (17) 15 188%
Income (loss) attributable to Prudential Financial, Inc. (52) 1,462 511 (802) (1,595) 1,171 173%
Earnings attributable to noncontrolling interests 8 15 (15) 11 (36) 11 131%
Net income (loss) (44) 1,477 496 (791) (1,631) 1,182 172%
Less: Income (loss) attributable to noncontrolling interests 8 15 (15) 11 (36) 11 131%
Net income (loss) attributable to Prudential Financial, Inc. (52) 1,462 511 (802) (1,595) 1,171 173%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, change in value of market risk benefits, net of related hedging gains (losses), revenues of Divested and Run-off Businesses, and include revenues representing equity in earnings of 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 acquisitions, including 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 35, 36, 37 and 38 for reconciliation.
(2) Represents adjustments not included in the above reconciling items, including a goodwill impairment related to Assurance IQ that resulted in a charge of 903 million pre-tax and 713 million after-tax in the fourth quarter of 2022. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.

All values are in US Dollars.

Page 5

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
CONSOLIDATED BALANCE SHEETS
(in millions)
09/30/2022 12/31/2022 03/31/2023 06/30/2023 09/30/2023
Assets:
Investments:
Fixed maturities, available-for-sale, at fair value 295,841 307,719 320,512 312,230 295,318
Fixed maturities, held-to-maturity, at amortized cost, net of allowance for credit losses 1,199 1,296 1,277 1,171 —
Fixed maturities, trading, at fair value 5,690 5,951 6,269 6,349 7,129
Assets supporting experience-rated contractholder liabilities, at fair value 2,580 2,844 2,958 3,019 2,943
Equity securities, at fair value 6,882 7,150 7,573 8,359 7,039
Commercial mortgage and other loans 56,896 56,745 56,778 57,689 57,908
Policy loans 9,920 10,046 10,041 9,983 9,959
Other invested assets 21,050 21,099 21,491 21,473 21,868
Short-term investments 5,181 4,591 5,177 5,059 5,072
Total investments 405,239 417,441 432,076 425,332 407,236
Cash and cash equivalents 20,104 17,251 17,425 14,652 16,892
Accrued investment income 2,888 3,012 3,095 3,142 3,191
Deferred policy acquisition costs 20,038 20,546 20,741 20,320 20,394
Value of business acquired 560 621 601 542 514
Market risk benefit assets 806 800 976 1,951 2,200
Income tax assets — — — 803 1,108
Other assets 32,912 31,679 32,061 29,691 39,077
Separate account assets 194,525 197,679 202,294 200,871 190,642
Total assets 677,072 689,029 709,269 697,304 681,254
Liabilities:
Future policy benefits 255,135 261,773 273,586 268,649 253,551
Policyholders' account balances 131,533 135,624 138,139 138,743 140,788
Market risk benefit liabilities 6,488 5,864 6,096 5,462 4,660
Securities sold under agreements to repurchase 8,223 6,589 6,617 6,097 5,547
Cash collateral for loaned securities 5,865 6,100 5,975 5,207 6,067
Income tax liabilities 403 277 517 — —
Senior short-term debt 767 775 705 763 615
Senior long-term debt 10,810 10,814 10,860 10,787 10,787
Junior subordinated long-term debt 9,088 9,094 9,591 8,089 8,090
Other liabilities 22,386 22,518 22,027 22,779 32,769
Notes issued by consolidated variable interest entities 218 374 415 402 791
Separate account liabilities 194,525 197,679 202,294 200,871 190,642
Total liabilities 645,441 657,481 676,822 667,849 654,307
Equity:
Accumulated other comprehensive loss (4,230) (3,806) (3,825) (6,649) (7,831)
Other equity 35,192 34,399 35,210 35,083 33,645
Total Prudential Financial, Inc. equity 30,962 30,593 31,385 28,434 25,814
Noncontrolling interests 669 955 1,062 1,021 1,133
Total equity 31,631 31,548 32,447 29,455 26,947
Total liabilities and equity 677,072 689,029 709,269 697,304 681,254

Page 6

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
COMBINING BALANCE SHEETS
(in millions)
As of September 30, 2023
Consolidated PFI Closed Block Division PFI Excluding Closed Block Division PGIM U.S. Businesses International Businesses Corporate and Other
Assets:
Total investments 407,236 47,670 359,566 4,644 174,768 157,656 22,498
Deferred policy acquisition costs 20,394 171 20,223 — 11,625 9,005 (407)
Other assets 62,982 887 62,095 4,352 38,980 10,936 7,827
Separate account assets 190,642 — 190,642 35,254 158,321 — (2,933)
Total assets 681,254 48,728 632,526 44,250 383,694 177,597 26,985
Liabilities:
Future policy benefits 253,551 43,731 209,820 — 99,686 102,475 7,659
Policyholders' account balances 140,788 4,528 136,260 — 83,076 48,448 4,736
Debt 19,492 — 19,492 1,415 7,604 81 10,392
Other liabilities 49,834 2,926 46,908 3,669 20,503 8,513 14,223
Separate account liabilities 190,642 — 190,642 35,254 158,321 — (2,933)
Total liabilities 654,307 51,185 603,122 40,338 369,190 159,517 34,077
Equity:
Accumulated other comprehensive loss (7,831) (1,092) (6,739) (159) (3,588) (491) (2,501)
Other equity 33,645 (1,377) 35,022 2,481 18,007 18,540 (4,006)
Total Prudential Financial, Inc. equity 25,814 (2,469) 28,283 2,322 14,419 18,049 (6,507)
Noncontrolling interests 1,133 12 1,121 1,590 85 31 (585)
Total equity 26,947 (2,457) 29,404 3,912 14,504 18,080 (7,092)
Total liabilities and equity 681,254 48,728 632,526 44,250 383,694 177,597 26,985
As of December 31, 2022
Consolidated PFI Closed Block Division PFI Excluding Closed Block Division PGIM U.S. Businesses International Businesses Corporate and Other
Assets:
Total investments 417,441 48,858 368,583 3,811 179,299 165,831 19,642
Deferred policy acquisition costs 20,546 181 20,365 — 11,809 8,941 (385)
Other assets 53,363 1,895 51,468 4,498 27,009 12,019 7,942
Separate account assets 197,679 — 197,679 40,055 161,267 — (3,643)
Total assets 689,029 50,934 638,095 48,364 379,384 186,791 23,556
Liabilities:
Future policy benefits 261,773 44,414 217,359 — 99,948 109,018 8,393
Policyholders' account balances 135,624 4,606 131,018 — 75,928 46,903 8,187
Debt 20,683 — 20,683 1,726 7,850 84 11,023
Other liabilities 41,722 3,479 38,243 2,813 20,238 11,497 3,695
Separate account liabilities 197,679 — 197,679 40,055 161,267 — (3,643)
Total liabilities 657,481 52,499 604,982 44,594 365,231 167,502 27,655
Equity:
Accumulated other comprehensive income (loss) (3,806) (214) (3,592) (145) (3,034) 1,590 (2,003)
Other equity 34,399 (1,363) 35,762 2,613 17,103 17,668 (1,622)
Total Prudential Financial, Inc. equity 30,593 (1,577) 32,170 2,468 14,069 19,258 (3,625)
Noncontrolling interests 955 12 943 1,302 84 31 (474)
Total equity 31,548 (1,565) 33,113 3,770 14,153 19,289 (4,099)
Total liabilities and equity 689,029 50,934 638,095 48,364 379,384 186,791 23,556

Page 7

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED
(in millions)
As of December 31, 2022
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 4,871 8,090 12,961 100 4,877 9,094 14,071
Operating Debt 5,588 — 6,121 511 5,583 — 6,094
Limited recourse and non-recourse borrowing 328 — 410 164 354 — 518
Total Debt 10,787 8,090 19,492 775 10,814 9,094 20,683
As of December 31, 2022
The Prudential Insurance Company of America (1)(2) Other Affiliates Total Debt Prudential Financial, Inc. The Prudential Insurance Company of America (1)(2) Other Affiliates Total Debt
Borrowings by sources:
Capital Debt 346 42 12,961 13,579 445 47 14,071
Operating Debt 508 — 6,121 5,608 486 — 6,094
Limited recourse and non-recourse borrowing 155 255 410 — 179 339 518
Total Debt 1,009 297 19,492 19,187 1,110 386 20,683
__________
(1) Includes Prudential Funding, LLC.
(2) Capital Debt at The Prudential Insurance Company of America includes 346 million of surplus notes as of September 30, 2023 and 345 million as of December 31, 2022.

All values are in US Dollars.

Page 8

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
STATEMENTS OF OPERATIONS - PGIM
(in millions)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023 % change
Revenues (1):
Premiums — — — — — — — —
Policy charges and fee income — — — — — — — —
Net investment income 56 56 80 67 42 38 189 397%
Asset management fees, commissions and other income 851 904 818 782 934 2,624 2,534 -3%
Total revenues 907 960 898 849 976 2,662 2,723 2%
Benefits and expenses (1):
Insurance and annuity benefits — — — — — — — —
Change in estimates of liability for future policy benefits — — — — — — — —
Interest credited to policyholders' account balances — — — — — — — —
Interest expense 14 27 27 29 28 30 84 180%
Deferral of acquisition costs (1) — (1) — (1) (2) (2) —%
Amortization of acquisition costs 1 — 1 — — 3 1 -67%
General and administrative expenses 674 703 720 641 738 2,018 2,099 4%
Total benefits and expenses 688 730 747 670 765 2,049 2,182 6%
Adjusted operating income before income taxes 219 230 151 179 211 613 541 -12%
Total revenues 907 960 898 849 976 2,662 2,723 2%
Less: Passthrough distribution revenue 19 19 19 20 20 67 59 -12%
Less: Revenue associated with consolidations 8 31 32 (25) 62 2 69 3,350%
Total adjusted revenues (2) 880 910 847 854 894 2,593 2,595 —%
Adjusted operating margin (2)(3) 24.9 % 25.3 % 17.8 % 21.0 % 23.6 % 23.6 % 20.8 %
__________
(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 21.6%, 21.1%, 16.8%, 23.9%, and 24.2% for the three months ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively, and 19.9% and 23.0% for the nine months ended September 30, 2023 and September 30, 2022, respectively.

Page 9

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
PGIM - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION
2023 Year-to-date
4Q 1Q 2Q 3Q 2022 2023 % change
Supplementary Revenue Information (in millions):
Analysis of revenues by type:
Asset management fees 725 720 726 738 2,307 2,184 -5%
Other related revenues (1) 113 52 58 71 116 181 56%
Service, distribution and other revenues 122 126 65 167 239 358 50%
Total PGIM revenues 960 898 849 976 2,662 2,723 2%
Analysis of asset management fees by source:
Institutional customers 359 362 357 363 1,084 1,082 —%
Retail customers 250 243 253 261 831 757 -9%
General account 116 115 116 114 392 345 -12%
Total asset management fees 725 720 726 738 2,307 2,184 -5%
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 387.2 70.5 32.4 1.3 547.6
Retail customers 131.6 2.2 0.9 69.7 312.5
General account 228.6 54.4 71.9 — 358.5
Total 747.4 127.1 105.2 71.0 1,218.6
Public Fixed Income Real Estate Private Credit and Other Alternatives Multi-Asset Total
Institutional customers 384.8 74.1 29.4 1.2 536.3
Retail customers 131.4 2.1 0.9 69.7 298.1
General account 246.3 52.8 69.4 — 371.8
Total 762.5 129.0 99.7 70.9 1,206.2
__________
(1) Other related revenues, net of related expenses are 37 million, 31 million, 28 million, 51 million, and 47 million for the three months ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively, and 96 million and 57 million for the nine months ended September 30, 2023 and September 30, 2022, respectively.

All values are in US Dollars.

Page 10

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
PGIM - SUPPLEMENTARY ASSETS UNDER MANAGEMENT INFORMATION
(in billions)
2023 Year-to-date
4Q 1Q 2Q 3Q 2022 2023
Institutional Customers - Assets Under Management (at fair market value):
Beginning assets under management 516.6 528.9 540.2 536.7 568.0 528.9
Additions 13.8 13.9 18.9 14.4 57.8 47.2
Withdrawals (19.8) (24.1) (21.9) (18.2) (48.8) (64.2)
Net institutional additions (withdrawals), excluding money market activity (6.0) (10.2) (3.0) (3.8) 9.0 (17.0)
Change in market value 17.0 17.2 3.5 (13.8) (102.8) 6.9
Net money market flows (0.7) 3.2 (3.7) 0.1 0.1 (0.4)
Other (1) 2.0 1.1 (0.3) 9.4 42.3 10.2
Ending assets under management 528.9 540.2 536.7 528.6 516.6 528.6
Affiliated institutional assets under management 20.3 21.0 20.0 19.0 19.7 19.0
Total assets managed for institutional customers at end of period 549.2 561.2 556.7 547.6 536.3 547.6
Retail Customers - Assets Under Management (at fair market value):
Beginning assets under management 192.2 191.7 201.4 209.4 265.8 191.7
Additions 16.5 12.6 12.6 11.9 49.8 37.1
Withdrawals (22.2) (16.4) (14.8) (13.8) (67.3) (45.0)
Net retail withdrawals, excluding money market activity (5.7) (3.8) (2.2) (1.9) (17.5) (7.9)
Change in market value 4.2 13.6 10.3 (4.7) (61.0) 19.2
Net money market flows 1.0 0.4 0.2 0.7 0.9 1.3
Other — (0.5) (0.3) (0.4) 4.0 (1.2)
Ending assets under management 191.7 201.4 209.4 203.1 192.2 203.1
Affiliated retail assets under management 107.9 113.0 114.7 109.4 105.9 109.4
Total assets managed for retail customers at end of period 299.6 314.4 324.1 312.5 298.1 312.5
__________
(1) Other includes 9.5 billion related to the reinsurance of in-force structured settlement annuities business to Prismic Life Reinsurance, Ltd in September 2023 which was previously included in General Account assets under management.

All values are in US Dollars.

Page 11

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES
(in millions)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023 % change
Revenues (1):
Premiums 12,038 2,895 5,268 3,098 550 18,106 8,916 -51%
Policy charges and fee income 1,013 1,028 1,014 968 997 2,961 2,979 1%
Net investment income 1,729 1,989 2,117 2,253 2,355 5,528 6,725 22%
Asset management fees, commissions and other income 641 584 676 699 637 3,396 2,012 -41%
Total revenues 15,421 6,496 9,075 7,018 4,539 29,991 20,632 -31%
Benefits and expenses (1):
Insurance and annuity benefits 13,020 4,021 6,434 4,284 1,601 21,842 12,319 -44%
Change in estimates of liability for future policy benefits 21 (9) 16 (134) 33 829 (85) -110%
Interest credited to policyholders' account balances 413 508 507 523 540 1,279 1,570 23%
Interest expense 197 165 251 249 226 609 726 19%
Deferral of acquisition costs (254) (253) (274) (295) (307) (763) (876) -15%
Amortization of acquisition costs 213 195 212 205 204 626 621 -1%
General and administrative expenses 1,196 1,159 1,169 1,230 1,154 3,568 3,553 —%
Total benefits and expenses 14,806 5,786 8,315 6,062 3,451 27,990 17,828 -36%
Adjusted operating income before income taxes 615 710 760 956 1,088 2,001 2,804 40%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates.

Page 12

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES
(in millions)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023 % change
Revenues (1):
Premiums 10,576 1,419 3,785 1,561 (959) 13,703 4,387 -68%
Policy charges and fee income 346 344 332 320 318 1,209 970 -20%
Net investment income 1,028 1,243 1,322 1,416 1,491 3,328 4,229 27%
Asset management fees, commissions and other income 489 450 545 559 524 2,890 1,628 -44%
Total revenues 12,439 3,456 5,984 3,856 1,374 21,130 11,214 -47%
Benefits and expenses (1):
Insurance and annuity benefits 11,042 2,004 4,383 2,312 (417) 15,621 6,278 -60%
Change in estimates of liability for future policy benefits 18 2 (42) (157) 31 (526) (168) 68%
Interest credited to policyholders' account balances 143 232 240 255 270 476 765 61%
Interest expense (10) (53) 24 15 14 13 53 308%
Deferral of acquisition costs (83) (79) (99) (107) (117) (250) (323) -29%
Amortization of acquisition costs 100 81 97 89 89 292 275 -6%
General and administrative expenses 574 522 544 573 563 1,722 1,680 -2%
Total benefits and expenses 11,784 2,709 5,147 2,980 433 17,348 8,560 -51%
Adjusted operating income before income taxes 655 747 837 876 941 3,782 2,654 -30%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses.

Page 13

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES - INSTITUTIONAL RETIREMENT STRATEGIES
(in millions)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023 % change
Revenues (1):
Premiums 10,558 1,395 3,763 1,531 (979) 13,642 4,315 -68%
Policy charges and fee income 11 6 8 8 10 28 26 -7%
Net investment income 824 969 1,004 1,072 1,098 2,684 3,174 18%
Asset management fees, commissions and other income 75 109 114 126 92 283 332 17%
Total revenues 11,468 2,479 4,889 2,737 221 16,637 7,847 -53%
Benefits and expenses (1):
Insurance and annuity benefits 11,028 1,960 4,350 2,263 (438) 15,516 6,175 -60%
Change in estimates of liability for future policy benefits 12 (6) (44) (156) 24 (528) (176) 67%
Interest credited to policyholders' account balances 100 139 125 144 146 255 415 63%
Interest expense 6 7 10 (4) (6) 8 — -100%
Deferral of acquisition costs (11) (5) (17) (16) (18) (16) (51) -219%
Amortization of acquisition costs 2 3 4 6 3 8 13 63%
General and administrative expenses 63 49 65 72 71 179 208 16%
Total benefits and expenses 11,200 2,147 4,493 2,309 (218) 15,422 6,584 -57%
Adjusted operating income before income taxes 268 332 396 428 439 1,215 1,263 4%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses.

Page 14

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
U.S. BUSINESSES - RETIREMENT STRATEGIES - INSTITUTIONAL RETIREMENT STRATEGIES SALES RESULTS AND ACCOUNT VALUES
(in millions)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023
Beginning total account value 234,594 238,313 251,818 252,952 258,533 245,720 251,818
Additions 13,518 12,277 3,828 5,686 4,697 19,496 14,211
Withdrawals and benefits (3,691) (4,248) (5,474) (5,865) (7,781) (12,150) (19,120)
Net flows 9,827 8,029 (1,646) (179) (3,084) 7,346 (4,909)
Change in market value, interest credited and interest income (553) 402 1,823 2,456 878 (4,512) 5,157
Other (1) (5,555) 5,074 957 3,304 (1,394) (10,241) 2,867
Ending total account value, gross 238,313 251,818 252,952 258,533 254,933 238,313 254,933
Reinsurance ceded — — — — (9,273) — (9,273)
Ending total account value, net 238,313 251,818 252,952 258,533 245,660 238,313 245,660
Amounts included in ending total account value, net above:
Investment-only stable value wraps 71,168 69,521 68,170 67,335 65,497
International reinsurance (2) 68,581 83,910 84,137 90,612 88,253
Group annuities and other products 98,564 98,387 100,645 100,586 91,910
Ending total account value, net 238,313 251,818 252,952 258,533 245,660
__________
(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.

Page 15

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES
(in millions)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023 % change
Revenues (1):
Premiums 18 24 22 30 20 61 72 18%
Policy charges and fee income 335 338 324 312 308 1,181 944 -20%
Net investment income 204 274 318 344 393 644 1,055 64%
Asset management fees, commissions and other income 414 341 431 433 432 2,607 1,296 -50%
Total revenues 971 977 1,095 1,119 1,153 4,493 3,367 -25%
Benefits and expenses (1):
Insurance and annuity benefits 14 44 33 49 21 105 103 -2%
Change in estimates of liability for future policy benefits 6 8 2 (1) 7 2 8 300%
Interest credited to policyholders' account balances 43 93 115 111 124 221 350 58%
Interest expense (16) (60) 14 19 20 5 53 960%
Deferral of acquisition costs (72) (74) (82) (91) (99) (234) (272) -16%
Amortization of acquisition costs 98 78 93 83 86 284 262 -8%
General and administrative expenses 511 473 479 501 492 1,543 1,472 -5%
Total benefits and expenses 584 562 654 671 651 1,926 1,976 3%
Adjusted operating income before income taxes 387 415 441 448 502 2,567 1,391 -46%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses.

Page 16

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES SALES RESULTS AND ACCOUNT VALUES
(in millions)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023
Actively -Sold Protected Investment and Income Product Sales (1):
FlexGuard Suite 1,080 1,062 1,088 1,240 1,279 3,936 3,607
Investment Only VA (2) 46 31 32 36 48 198 116
Fixed 249 397 547 616 616 340 1,779
Total 1,375 1,490 1,667 1,892 1,943 4,474 5,502
Actively-Sold Protected Investment and Income Solutions (1):
Beginning total account value 18,526 19,099 21,208 23,268 25,970 18,819 21,208
Sales 1,375 1,490 1,667 1,892 1,943 4,474 5,502
Full surrenders and death benefits (94) (148) (191) (223) (208) (278) (622)
Sales, net of full surrenders and death benefits 1,281 1,342 1,476 1,669 1,735 4,196 4,880
Partial withdrawals and other benefit payments (124) (158) (135) (131) (135) (381) (401)
Net flows 1,157 1,184 1,341 1,538 1,600 3,815 4,479
Change in market value, interest credited, and other (581) 930 725 1,171 (494) (3,529) 1,402
Policy charges (3) (5) (6) (7) (7) (6) (20)
Ending total account value, gross 19,099 21,208 23,268 25,970 27,069 19,099 27,069
Reinsurance ceded (637) (817) (1,079) (1,357) (1,552) (637) (1,552)
Ending total account value, net 18,462 20,391 22,189 24,613 25,517 18,462 25,517
Discontinued Traditional VA and Guaranteed Living Benefit Block (3):
Beginning total account value 104,612 96,691 98,814 100,536 100,327 163,486 98,814
Sales 14 7 8 9 7 56 24
Full surrenders and death benefits (1,131) (994) (1,297) (1,428) (1,544) (4,695) (4,269)
Sales, net of full surrenders and death benefits (1,117) (987) (1,289) (1,419) (1,537) (4,639) (4,245)
Partial withdrawals and other benefit payments (852) (1,075) (985) (926) (927) (3,056) (2,838)
Net flows (1,969) (2,062) (2,274) (2,345) (2,464) (7,695) (7,083)
Change in market value and other (5,340) 4,809 4,605 2,693 (3,298) (57,019) 4,000
Policy charges (612) (624) (609) (557) (544) (2,081) (1,710)
Ending total account value, gross 96,691 98,814 100,536 100,327 94,021 96,691 94,021
Reinsurance ceded — — — (10,227) (9,432) — (9,432)
Ending total account value, net 96,691 98,814 100,536 90,100 84,589 96,691 84,589
__________
(1) Includes Prudential FlexGuard and FlexGuard Income, Prudential Premier Investment, MyRock and all fixed annuity products. Excludes discontinued traditional variable annuities and guaranteed living benefits.
(2) Represents variable annuities without guaranteed living benefits including Prudential Premier Investment and MyRock.
(3) Includes Prudential Highest Daily Income, Prudential Defined Income and other legacy variable products with and without guaranteed minimum income and withdrawal benefits.

Page 17

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES ACCOUNT VALUE ACTIVITY
(in millions)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023
Account Values in General Account (1):
Beginning balance 19,430 20,170 22,063 23,948 26,455 20,062 22,063
Premiums and deposits 1,300 1,437 1,601 1,821 1,856 4,124 5,278
Full surrenders and death benefits (86) (87) (119) (118) (121) (417) (358)
Premiums and deposits net of full surrenders and death benefits 1,214 1,350 1,482 1,703 1,735 3,707 4,920
Partial withdrawals and other benefit payments (131) (167) (148) (149) (148) (429) (445)
Net flows 1,083 1,183 1,334 1,554 1,587 3,278 4,475
Change in market value, interest credited and other (240) 619 582 1,181 (285) (2,629) 1,478
Net transfers (to) from separate account (102) 92 (30) (227) (142) (539) (399)
Policy charges (1) (1) (1) (1) (2) (2) (4)
Ending balance, gross 20,170 22,063 23,948 26,455 27,613 20,170 27,613
Reinsurance ceded (637) (817) (1,079) (1,357) (1,552) (637) (1,552)
Ending balance, net 19,533 21,246 22,869 25,098 26,061 19,533 26,061
Account Values in Separate Account (1):
Beginning balance 103,708 95,620 97,959 99,856 99,842 162,243 97,959
Premiums and deposits 89 60 74 80 94 406 248
Full surrenders and death benefits (1,139) (1,055) (1,369) (1,533) (1,631) (4,556) (4,533)
Premiums and deposits net of full surrenders and death benefits (1,050) (995) (1,295) (1,453) (1,537) (4,150) (4,285)
Partial withdrawals and other benefit payments (845) (1,066) (972) (908) (914) (3,008) (2,794)
Net flows (1,895) (2,061) (2,267) (2,361) (2,451) (7,158) (7,079)
Change in market value, interest credited and other (5,681) 5,120 4,748 2,683 (3,507) (57,919) 3,924
Net transfers (to) from general account 102 (92) 30 227 142 539 399
Policy charges (614) (628) (614) (563) (549) (2,085) (1,726)
Ending balance, gross 95,620 97,959 99,856 99,842 93,477 95,620 93,477
Reinsurance ceded — — — (10,227) (9,432) — (9,432)
Ending balance, net 95,620 97,959 99,856 89,615 84,045 95,620 84,045
__________
(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.

Page 18

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES MARKET RISK BENEFIT FEATURES
(in millions)
2022 2023
3Q 4Q 1Q 2Q 3Q
MARKET RISK BENEFITS ACCOUNT VALUES AND NET AMOUNT AT RISK (1):
Market Risk Benefits Account Values by Risk Management Design:
Account Values with Auto-Rebalancing Feature - risk retained by Prudential 67,654 69,365 70,701 70,816 66,563
Account Values with Auto-Rebalancing Feature - externally reinsured 2,446 2,482 2,493 2,468 2,269
Account Values without Auto-Rebalancing Feature 25,294 25,660 26,004 25,667 23,869
Total 95,394 97,507 99,198 98,951 92,701
Market Risk Benefits Net Amount at Risk by Product Design Type:
Net Amount at Risk with Auto-Rebalancing Feature 10,669 9,335 8,167 7,803 9,508
Net Amount at Risk without Auto-Rebalancing Feature 4,630 3,845 3,165 3,082 3,909
Total 15,299 13,180 11,332 10,885 13,417
__________
(1) At end of period.

Page 19

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - GROUP INSURANCE
(in millions)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023 % change
Revenues (1):
Premiums 1,215 1,231 1,237 1,288 1,268 3,643 3,793 4%
Policy charges and fee income 170 185 181 161 163 496 505 2%
Net investment income 121 117 126 128 130 362 384 6%
Asset management fees, commissions and other income 19 22 20 21 15 59 56 -5%
Total revenues 1,525 1,555 1,564 1,598 1,576 4,560 4,738 4%
Benefits and expenses (1):
Insurance and annuity benefits 1,196 1,221 1,218 1,140 1,179 3,693 3,537 -4%
Change in estimates of liability for future policy benefits — — — — — — — —
Interest credited to policyholders' account balances 37 41 44 41 39 112 124 11%
Interest expense 1 1 4 2 1 3 7 133%
Deferral of acquisition costs (1) — — — (1) (3) (1) 67%
Amortization of acquisition costs 2 1 1 2 1 1 4 300%
General and administrative expenses 260 276 272 274 268 785 814 4%
Total benefits and expenses 1,495 1,540 1,539 1,459 1,487 4,591 4,485 -2%
Adjusted operating income (loss) before income taxes 30 15 25 139 89 (31) 253 916%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses.

Page 20

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
U.S. BUSINESSES - GROUP INSURANCE SUPPLEMENTARY INFORMATION
(dollar amounts in millions, or as otherwise noted)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023
Annualized New Business Premiums:
Group life 67 10 162 32 61 273 255
Group disability 36 13 157 25 34 183 216
Total 103 23 319 57 95 456 471
Future Policy Benefits (1):
Group life 2,366 2,551 2,397 2,309 2,242
Group disability 3,098 3,106 3,141 3,144 3,175
Total 5,464 5,657 5,538 5,453 5,417
Policyholders' Account Balances (1):
Group life 5,889 5,751 5,480 5,385 5,250
Group disability 125 131 117 121 112
Total 6,014 5,882 5,597 5,506 5,362
Separate Account Liabilities (1):
Group life 22,789 23,513 24,661 23,747 22,864
Group Life Insurance:
Gross premiums, policy charges and fee income (2) 1,050 1,121 1,085 1,135 1,100 3,207 3,320
Earned premiums 885 899 892 937 900 2,689 2,729
Earned policy charges and fee income 145 164 158 137 138 424 433
Benefits ratio (3) 91.2 % 90.2 % 92.9 % 85.1 % 84.8 % 94.4 % 87.6 %
Administrative operating expense ratio 10.9 % 10.9 % 11.8 % 11.9 % 11.8 % 10.8 % 11.8 %
Persistency ratio 96.0 % 95.9 % 94.4 % 94.0 % 93.7 %
Group Disability Insurance:
Gross premiums, policy charges and fee income (2) 356 361 371 380 393 1,040 1,144
Earned premiums 330 332 345 351 368 954 1,064
Earned policy charges and fee income 25 21 23 24 25 72 72
Benefits ratio (3) 72.5 % 74.2 % 65.8 % 69.8 % 76.2 % 73.0 % 70.7 %
Administrative operating expense ratio 30.3 % 31.6 % 25.2 % 25.6 % 24.1 % 31.2 % 24.9 %
Persistency ratio 90.9 % 90.6 % 92.5 % 91.9 % 91.2 %
Total Group Insurance:
Benefits ratio (3) 86.4 % 86.2 % 85.9 % 81.1 % 82.4 % 89.2 % 83.1 %
Administrative operating expense ratio 15.9 % 15.9 % 15.2 % 15.4 % 15.1 % 15.8 % 15.2 %
Net face amount of policies in force (in billions) (4) 2,103 2,126 2,104 2,153 2,143
__________
(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 83.0%, 66.4%, and 78.7% for the three months ended June 30, 2023, respectively. Benefits ratios including these impacts for Group Life, Group Disability, and Total Group Insurance are 86.9%, 69.6%, 82.3% and 94.2%, 73.8%, 89.2% for the nine months ended September 30, 2023 and September 30, 2022, respectively.
(4) At end of period; net of reinsurance.

Page 21

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
U.S. BUSINESSES - STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE
(in millions)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023 % change
Revenues (1):
Premiums 247 245 246 249 241 760 736 -3%
Policy charges and fee income 497 499 501 487 516 1,256 1,504 20%
Net investment income 580 629 669 709 734 1,838 2,112 15%
Asset management fees, commissions and other income 133 112 111 119 98 447 328 -27%
Total revenues 1,457 1,485 1,527 1,564 1,589 4,301 4,680 9%
Benefits and expenses (1):
Insurance and annuity benefits 782 796 833 832 839 2,528 2,504 -1%
Change in estimates of liability for future policy benefits 3 (11) 58 23 2 1,355 83 -94%
Interest credited to policyholders' account balances 233 235 223 227 231 691 681 -1%
Interest expense 206 217 223 232 211 593 666 12%
Deferral of acquisition costs (170) (174) (175) (188) (189) (510) (552) -8%
Amortization of acquisition costs 111 113 114 114 114 333 342 3%
General and administrative expenses 362 361 353 383 323 1,061 1,059 —%
Total benefits and expenses 1,527 1,537 1,629 1,623 1,531 6,051 4,783 -21%
Adjusted operating income (loss) before income taxes (70) (52) (102) (59) 58 (1,750) (103) 94%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses. Revenues and Benefits and expenses exclude market experience updates.

Page 22

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
U.S. BUSINESSES - INDIVIDUAL LIFE SUPPLEMENTARY INFORMATION
(in millions, or as otherwise noted)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023
ANNUALIZED NEW BUSINESS PREMIUMS (1):
Term life 24 22 23 31 33 71 87
Universal life 23 25 17 20 17 67 54
Variable life 103 107 109 146 136 317 391
Total 150 154 149 197 186 455 532
ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):
Prudential Advisors 33 32 33 38 35 101 106
Third party distribution 117 122 116 159 151 354 426
Total 150 154 149 197 186 455 532
ACCOUNT VALUE ACTIVITY:
Policyholders' Account Balances (2):
Beginning balance 31,274 31,400 31,522 31,644 32,713 31,304 31,522
Premiums and deposits 642 647 636 577 587 1,934 1,800
Surrenders and withdrawals (348) (478) (455) (429) (417) (1,209) (1,301)
Net sales 294 169 181 148 170 725 499
Benefit payments (51) (51) (59) (45) (41) (171) (145)
Net flows 243 118 122 103 129 554 354
Interest credited and other 314 426 461 406 274 751 1,141
Net transfers from separate account 89 98 78 1,079 128 355 1,285
Policy charges (520) (520) (539) (519) (514) (1,564) (1,572)
Ending balance 31,400 31,522 31,644 32,713 32,730 31,400 32,730
Separate Account Liabilities:
Beginning balance 38,931 37,250 39,419 41,650 43,230 48,133 39,419
Premiums and deposits 671 684 709 865 739 2,029 2,313
Surrenders and withdrawals (242) (179) (224) (278) (212) (717) (714)
Net sales 429 505 485 587 527 1,312 1,599
Benefit payments (171) (102) (130) (91) (119) (433) (340)
Net flows 258 403 355 496 408 879 1,259
Change in market value, interest credited and other (1,532) 2,188 2,286 2,489 (1,003) (10,462) 3,772
Net transfers to general account (89) (98) (78) (1,079) (128) (355) (1,285)
Policy charges (318) (324) (332) (326) (336) (945) (994)
Ending balance 37,250 39,419 41,650 43,230 42,171 37,250 42,171
NET FACE AMOUNT IN FORCE (in billions) (3):
Term life 297 296 295 294 293
Universal life 99 98 98 98 97
Variable life 143 145 148 150 150
Total 539 539 541 542 540
__________
(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.

Page 23

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES
(in millions)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023 % change
Revenues (1):
Premiums 3,291 3,016 3,569 3,274 3,112 10,375 9,955 -4%
Policy charges and fee income 83 84 72 77 77 256 226 -12%
Net investment income 1,112 1,271 1,285 1,321 1,316 3,695 3,922 6%
Asset management fees, commissions and other income 132 89 89 51 61 225 201 -11%
Total revenues 4,618 4,460 5,015 4,723 4,566 14,551 14,304 -2%
Benefits and expenses (1):
Insurance and annuity benefits 2,905 2,589 3,159 2,647 2,751 9,185 8,557 -7%
Change in estimates of liability for future policy benefits 38 59 6 293 16 72 315 338%
Interest credited to policyholders' account balances 180 193 215 226 239 545 680 25%
Interest expense 11 16 11 4 3 19 18 -5%
Deferral of acquisition costs (285) (295) (313) (281) (292) (883) (886) —%
Amortization of acquisition costs 150 141 151 159 156 455 466 2%
General and administrative expenses 871 943 946 891 882 2,767 2,719 -2%
Total benefits and expenses 3,870 3,646 4,175 3,939 3,755 12,160 11,869 -2%
Adjusted operating income before income taxes 748 814 840 784 811 2,391 2,435 2%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, change in value of market risk benefits, net of related hedging gains (losses) and include revenues representing equity in earnings of 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.

Page 24

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - LIFE PLANNER
(in millions)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023 % change
Revenues (1):
Premiums 1,689 1,540 1,934 1,693 1,665 5,413 5,292 -2%
Policy charges and fee income 41 47 48 48 48 128 144 13%
Net investment income 435 555 573 586 584 1,564 1,743 11%
Asset management fees, commissions and other income 79 91 69 54 62 203 185 -9%
Total revenues 2,244 2,233 2,624 2,381 2,359 7,308 7,364 1%
Benefits and expenses (1):
Insurance and annuity benefits 1,432 1,310 1,692 1,417 1,421 4,682 4,530 -3%
Change in estimates of liability for future policy benefits 8 13 2 69 11 (6) 82 1467%
Interest credited to policyholders' account balances 44 48 57 57 61 135 175 30%
Interest expense 6 7 3 (1) (1) 11 1 -91%
Deferral of acquisition costs (137) (136) (158) (142) (143) (442) (443) —%
Amortization of acquisition costs 75 68 76 78 76 228 230 1%
General and administrative expenses 386 430 430 416 407 1,249 1,253 —%
Total benefits and expenses 1,814 1,740 2,102 1,894 1,832 5,857 5,828 —%
Adjusted operating income before income taxes 430 493 522 487 527 1,451 1,536 6%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates.

Page 25

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - GIBRALTAR LIFE AND OTHER
(in millions)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023 % change
Revenues (1):
Premiums 1,602 1,476 1,635 1,581 1,447 4,962 4,663 -6%
Policy charges and fee income 42 37 24 29 29 128 82 -36%
Net investment income 677 716 712 735 732 2,131 2,179 2%
Asset management fees, commissions and other income 53 (2) 20 (3) (1) 22 16 -27%
Total revenues 2,374 2,227 2,391 2,342 2,207 7,243 6,940 -4%
Benefits and expenses (1):
Insurance and annuity benefits 1,473 1,279 1,467 1,230 1,330 4,503 4,027 -11%
Change in estimates of liability for future policy benefits 30 46 4 224 5 78 233 199%
Interest credited to policyholders' account balances 136 145 158 169 178 410 505 23%
Interest expense 5 9 8 5 4 8 17 113%
Deferral of acquisition costs (148) (159) (155) (139) (149) (441) (443) —%
Amortization of acquisition costs 75 73 75 81 80 227 236 4%
General and administrative expenses 485 513 516 475 475 1,518 1,466 -3%
Total benefits and expenses 2,056 1,906 2,073 2,045 1,923 6,303 6,041 -4%
Adjusted operating income before income taxes 318 321 318 297 284 940 899 -4%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, change in value of market risk benefits, net of related hedging gains (losses) and include revenues representing equity in earnings of 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.

Page 26

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
(in millions)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023
Actual exchange rate basis (1):
Net premiums, policy charges and fee income:
Japan - Prudential of Japan 1,496 1,341 1,735 1,463 1,422 4,887 4,620
Japan - Gibraltar Life 1,644 1,513 1,659 1,610 1,476 5,090 4,745
Emerging Markets 234 246 247 278 291 654 816
Total 3,374 3,100 3,641 3,351 3,189 10,631 10,181
Annualized new business premiums:
Japan - Prudential of Japan 138 160 196 158 143 497 497
Japan - Gibraltar Life 198 244 231 241 236 634 708
Emerging Markets 77 84 81 91 112 200 284
Total 413 488 508 490 491 1,331 1,489
Annualized new business premiums by distribution channel:
Life Planners 215 244 277 249 255 697 781
Gibraltar Life Consultants 125 156 128 144 131 365 403
Banks 34 49 55 51 68 119 174
Independent Agency 39 39 48 46 37 150 131
Total 413 488 508 490 491 1,331 1,489
Constant exchange rate basis (2):
Net premiums, policy charges and fee income:
Japan - Prudential of Japan 1,657 1,523 1,901 1,600 1,601 5,213 5,102
Japan - Gibraltar Life 1,837 1,680 1,820 1,758 1,663 5,489 5,241
Emerging Markets 203 216 213 228 235 561 676
Total 3,697 3,419 3,934 3,586 3,499 11,263 11,019
Annualized new business premiums:
Japan - Prudential of Japan 155 181 212 174 162 529 548
Japan - Gibraltar Life 205 252 239 251 246 648 736
Emerging Markets 64 72 70 76 97 164 243
Total 424 505 521 501 505 1,341 1,527
Annualized new business premiums by distribution channel:
Life Planners 219 253 282 250 259 693 791
Gibraltar Life Consultants 129 161 131 149 136 373 416
Banks 34 49 55 51 69 119 175
Independent Agency 42 42 53 51 41 156 145
Total 424 505 521 501 505 1,341 1,527
__________
(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 110 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 27

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
2022 2023
3Q 4Q 1Q 2Q 3Q
Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan - Prudential of Japan 366 363 362 361 359
Japan - Gibraltar Life 332 328 325 323 320
Emerging Markets 37 38 39 40 42
Total 735 729 726 724 721
Number of individual policies in force at end of period (in thousands) (3):
Japan - Prudential of Japan 4,455 4,463 4,484 4,496 4,501
Japan - Gibraltar Life 6,765 6,713 6,681 6,650 6,626
Emerging Markets 704 726 742 754 769
Total 11,924 11,902 11,907 11,900 11,896
International life insurance individual policy persistency:
Life Planner:
13 months 92.4 % 92.4 % 92.4 % 92.2 % 92.2 %
25 months 85.6 % 85.3 % 84.7 % 84.0 % 83.2 %
Gibraltar Life (4):
13 months 95.5 % 95.2 % 95.2 % 95.0 % 94.8 %
25 months 90.8 % 90.8 % 90.1 % 89.2 % 88.7 %
Number of Life Planners at end of period:
Japan 4,481 4,446 4,454 4,317 4,337
All other countries 1,491 1,478 1,524 1,489 1,580
Total Life Planners 5,972 5,924 5,978 5,806 5,917
Gibraltar Life Consultants 6,861 6,821 6,689 6,648 6,736
__________
(1) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 110 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.

Page 28

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
STATEMENTS OF OPERATIONS - CORPORATE AND OTHER
(in millions)
2022 2023 Year-to-date
3Q 4Q 1Q 2Q 3Q 2022 2023 % change
Revenues (1):
Premiums (7) (7) (4) (4) (3) (15) (11) 27%
Policy charges and fee income (13) (12) (13) (13) (14) (42) (40) 5%
Net investment income 150 167 189 173 180 440 542 23%
Asset management fees, commissions and other income 4 142 (56) (102) (118) (248) (276) -11%
Total revenues 134 290 116 54 45 135 215 59%
Benefits and expenses (1):
Insurance and annuity benefits — 4 (5) — (4) (4) (9) -125%
Change in estimates of liability for future policy benefits — — — — — — — —
Interest credited to policyholders' account balances 35 34 34 31 25 103 90 -13%
Interest expense 185 209 152 179 165 514 496 -4%
Deferral of acquisition costs 9 9 19 30 24 32 73 128%
Amortization of acquisition costs (9) (8) (9) (9) (9) (31) (27) 13%
General and administrative expenses 329 567 410 350 348 673 1,108 65%
Total benefits and expenses 549 815 601 581 549 1,287 1,731 34%
Adjusted operating loss before income taxes (415) (525) (485) (527) (504) (1,152) (1,516) -32%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses and goodwill impairment and certain components of consideration for a business acquisition, which are recognized as compensation expense over the requisite service periods. Revenues and Benefits and expenses include consolidating adjustments.

Page 29

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
INVESTMENT PORTFOLIO COMPOSITION
(in millions)
September 30, 2023 December 31, 2022
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
226,376 19,563 206,813 58.5 % 242,246 21,140 221,106 60.8 %
— — — 0.0 % 1,229 — 1,229 0.3 %
68,113 9,175 58,938 16.7 % 64,745 8,931 55,814 15.4 %
— — — 0.0 % 67 — 67 0.0 %
6,516 816 5,700 1.6 % 5,738 900 4,838 1.3 %
2,943 — 2,943 0.8 % 2,844 — 2,844 0.8 %
6,366 1,778 4,588 1.3 % 6,404 1,733 4,671 1.3 %
57,521 7,836 49,685 14.0 % 56,608 7,926 48,682 13.4 %
9,959 3,520 6,439 1.8 % 10,046 3,637 6,409 1.8 %
18,674 4,679 13,995 4.0 % 17,531 4,254 13,277 3.7 %
5,058 303 4,755 1.3 % 4,573 337 4,236 1.2 %
401,526 47,670 353,856 100.0 % 412,031 48,858 363,173 100.0 %
5,710 — 5,710 5,410 — 5,410
407,236 47,670 359,566 417,441 48,858 368,583
Fixed Maturities by Credit Quality (3)(5): September 30, 2023 December 31, 2022
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
183,149 5,150 23,198 1 165,100 79.8 % 189,939 6,918 18,145 — 178,712 80.8 %
40,894 393 6,397 — 34,890 16.9 % 39,388 534 5,212 — 34,710 15.7 %
224,043 5,543 29,595 1 199,990 96.7 % 229,327 7,452 23,357 — 213,422 96.5 %
5,064 70 411 — 4,723 2.3 % 5,416 66 625 — 4,857 2.2 %
1,818 29 176 64 1,607 0.7 % 2,362 39 287 1 2,113 1.0 %
426 18 65 37 342 0.2 % 614 10 141 8 475 0.2 %
273 4 25 101 151 0.1 % 318 9 63 25 239 0.1 %
7,581 121 677 202 6,823 3.3 % 8,710 124 1,116 34 7,684 3.5 %
231,624 5,664 30,272 203 206,813 100.0 % 238,037 7,576 24,473 34 221,106 100.0 %
17,383 144 2,557 — 14,970 25.4 % 16,111 126 2,145 — 14,092 25.2 %
39,502 576 4,761 — 35,317 59.9 % 36,773 406 4,307 — 32,872 58.9 %
56,885 720 7,318 — 50,287 85.3 % 52,884 532 6,452 — 46,964 84.1 %
5,113 48 492 5 4,664 7.8 % 5,522 38 538 — 5,022 9.0 %
3,333 12 153 1 3,191 5.5 % 2,654 11 148 — 2,517 4.5 %
736 6 57 3 682 1.2 % 1,307 7 117 16 1,181 2.1 %
121 15 — 22 114 0.2 % 160 22 1 51 130 0.3 %
9,303 81 702 31 8,651 14.7 % 9,643 78 804 67 8,850 15.9 %
66,188 801 8,020 31 58,938 100.0 % 62,527 610 7,256 67 55,814 100.0 %
(1) In the the third quarter of 2023, the Company changed its intent to hold a portion of its held-to-maturity portfolio which will be redeemed as part of a recently announced reinsurance transaction that is targeted to close by December 31, 2023. As a result, the entire held-to-maturity portfolio was reclassified to fixed maturities available-for-sale. On an amortized cost basis, net of allowance, as of December 31, 2022, includes 1,149 million (fair value, 1,299 million) and 67 million (fair value, 71 million) of public and private fixed maturities, respectively, classified as “1” highest quality and 80 million (fair value, 85 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.
(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 September 30, 2023 and December 31, 2022, 781 securities with amortized cost of 8,710 million (fair value 8,318 million) and 422 securities with amortized cost of 4,836 million (fair value 4,610 million), respectively, that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

All values are in US Dollars.

Page 30

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
INVESTMENT PORTFOLIO COMPOSITION - JAPANESE INSURANCE OPERATIONS AND EXCLUDING JAPANESE INSURANCE OPERATIONS (1)
(in millions)
September 30, 2023 December 31, 2022
Amount % of Total Amount % of Total
Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value 104,691 67.4 % 112,013 68.4 %
Public, held-to-maturity, at amortized cost, net of allowance — 0.0 % 1,229 0.7 %
Private, available-for-sale, at fair value 19,497 12.5 % 19,268 11.8 %
Private, held-to-maturity, at amortized cost, net of allowance — 0.0 % 67 0.0 %
Fixed maturities, trading, at fair value 516 0.3 % 612 0.4 %
Assets supporting experience-rated contractholder liabilities, at fair value 2,943 1.9 % 2,844 1.7 %
Equity securities, at fair value 1,669 1.1 % 1,806 1.1 %
Commercial mortgage and other loans, at book value, net of allowance 17,640 11.4 % 18,080 11.0 %
Policy loans, at outstanding balance 2,545 1.6 % 2,607 1.6 %
Other invested assets (3) 5,694 3.7 % 5,272 3.2 %
Short-term investments, net of allowance 196 0.1 % 100 0.1 %
Total 155,391 100.0 % 163,898 100.0 %
September 30, 2023 December 31, 2022
Amount % of Total Amount % of Total
Excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value 102,122 51.4 % 109,093 54.8 %
Public, held-to-maturity, at amortized cost — 0.0 % — 0.0 %
Private, available-for-sale, at fair value 39,441 19.9 % 36,546 18.3 %
Private, held-to-maturity, at amortized cost — 0.0 % — 0.0 %
Fixed maturities, trading, at fair value 5,184 2.6 % 4,226 2.1 %
Assets supporting experience-rated contractholder liabilities, at fair value — 0.0 % — 0.0 %
Equity securities, at fair value 2,919 1.5 % 2,865 1.4 %
Commercial mortgage and other loans, at book value, net of allowance 32,045 16.1 % 30,602 15.4 %
Policy loans, at outstanding balance 3,894 2.0 % 3,802 1.9 %
Other invested assets, net of allowance (3) 8,301 4.2 % 8,005 4.0 %
Short-term investments, net of allowance 4,559 2.3 % 4,136 2.1 %
Total 198,465 100.0 % 199,275 100.0 %
__________
(1) Excludes Closed Block division.
(2) Excludes assets classified as "Separate account assets" on our balance sheet.
(3) Other invested assets consist of investments in LPs/LLCs, investment real estate held through direct ownership, derivative instruments and other miscellaneous investments.

Page 31

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
INVESTMENT RESULTS (1)
(in millions)
Three Months Ended September 30,
2023 2022
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (6) Amount Yield (6) Amount
General Account (2)
Fixed maturities (3) 4.18 % 3,098 (367) 3.72 % 2,617 25
Equity securities 2.32 % 30 — 1.73 % 19 —
Commercial mortgage and other loans 4.01 % 495 (68) 3.71 % 446 (16)
Policy loans 4.50 % 72 — 4.51 % 70 —
Short-term investments and cash equivalents 6.41 % 232 2 3.23 % 130 (4)
Gross investment income before investment expenses 4.21 % 3,927 (433) 3.69 % 3,282 5
Investment expenses (4) -0.13 % (211) — -0.14 % (176) —
Subtotal 4.08 % 3,716 (433) 3.55 % 3,106 5
Other investments (3)(4) 299 (1,776) 28 (541)
Investment results of other entities and operations (5) 45 38 63 77
Less: investment income related to adjusted operating income reconciling items (167) (150)
Total 3,893 (2,171) 3,047 (459)
Nine Months Ended September 30,
2023 2022
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (6) Amount Yield (6) Amount
General Account (2)
Fixed maturities (3) 4.09 % 9,125 (586) 3.68 % 7,994 (901)
Equity securities 2.93 % 109 — 2.07 % 75 —
Commercial mortgage and other loans 3.95 % 1,435 (105) 3.68 % 1,349 (90)
Policy loans 4.56 % 216 — 4.53 % 214 —
Short-term investments and cash equivalents 5.80 % 643 2 1.83 % 202 (5)
Gross investment income before investment expenses 4.12 % 11,528 (689) 3.61 % 9,834 (996)
Investment expenses (4) -0.13 % (633) — -0.14 % (439) —
Subtotal 3.99 % 10,895 (689) 3.47 % 9,395 (996)
Other investments (3)(4) 780 (2,100) 799 (2,439)
Investment results of other entities and operations (5) 201 27 225 256
Less: investment income related to adjusted operating income reconciling items (498) (718)
Total 11,378 (2,762) 9,701 (3,179)
__________
(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) Prior period amounts have been reclassified to conform to current period presentation.
(5) Includes invested income of commercial loans, assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment management operations.
(6) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. The denominator in the yield percentage includes assets "held-for-sale" as of March 31, 2022 and December 31, 2021. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.

Page 32

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS
(in millions)
Three Months Ended September 30,
2023 2022
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (1) Amount Yield (1) Amount
Japanese Insurance Operations:
Fixed maturities (2) 2.96 % 1,009 (15) 2.82 % 954 156
Equity securities 1.12 % 5 — 1.04 % 4 —
Commercial mortgage and other loans 3.67 % 162 (33) 3.63 % 169 (3)
Policy loans 3.89 % 25 — 3.94 % 24 —
Short-term investments and cash equivalents 5.20 % 27 — 3.07 % 12 (2)
Gross investment income before investment expenses 3.05 % 1,228 (48) 2.91 % 1,163 151
Investment expenses -0.12 % (79) — -0.13 % (74) —
Subtotal 2.93 % 1,149 (48) 2.78 % 1,089 151
Other investments (2) 84 (807) 6 (502)
Total 1,233 (855) 1,095 (351)
Nine Months Ended September 30,
2023 2022
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (1) Amount Yield (1) Amount
Japanese Insurance Operations:
Fixed maturities (2) 2.88 % 2,981 189 2.75 % 2,863 233
Equity securities 2.84 % 37 — 2.89 % 41 —
Commercial mortgage and other loans 3.66 % 484 (48) 3.65 % 521 (12)
Policy loans 3.88 % 74 — 3.92 % 75 —
Short-term investments and cash equivalents 4.76 % 71 — 2.08 % 18 (2)
Gross investment income before investment expenses 3.00 % 3,647 141 2.87 % 3,518 219
Investment expenses -0.13 % (241) — -0.14 % (197) —
Subtotal 2.87 % 3,406 141 2.73 % 3,321 219
Other investments (2) 238 (926) 142 (2,077)
Total 3,644 (785) 3,463 (1,858)
__________
(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.

Page 33

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS (1)
(in millions)
Three Months Ended September 30,
2023 2022
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (5) Amount Yield (5) Amount
Excluding Japanese Insurance Operations (2):
Fixed maturities (3) 5.22 % 2,089 (352) 4.57 % 1,663 (131)
Equity securities 2.92 % 25 — 2.18 % 15 —
Commercial mortgage and other loans 4.19 % 333 (35) 3.77 % 277 (13)
Policy loans 4.90 % 47 — 4.88 % 46 —
Short-term investments and cash equivalents 6.57 % 205 2 3.24 % 118 (2)
Gross investment income before investment expenses 5.09 % 2,699 (385) 4.32 % 2,119 (146)
Investment expenses (4) -0.13 % (132) — -0.15 % (102) —
Subtotal 4.96 % 2,567 (385) 4.17 % 2,017 (146)
Other investments (3)(4) 215 (969) 22 (39)
Total 2,782 (1,354) 2,039 (185)
Nine Months Ended September 30,
2023 2022
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (5) Amount Yield (5) Amount
Excluding Japanese Insurance Operations (2):
Fixed maturities (3) 5.14 % 6,144 (775) 4.53 % 5,131 (1,134)
Equity securities 2.98 % 72 — 1.54 % 34 —
Commercial mortgage and other loans 4.11 % 951 (57) 3.70 % 828 (78)
Policy loans 5.02 % 142 — 4.94 % 139 —
Short-term investments and cash equivalents 5.93 % 572 2 1.82 % 184 (3)
Gross investment income before investment expenses 4.99 % 7,881 (830) 4.20 % 6,316 (1,215)
Investment expenses (4) -0.13 % (392) — -0.15 % (242) —
Subtotal 4.86 % 7,489 (830) 4.05 % 6,074 (1,215)
Other investments (3)(4) 542 (1,174) 657 (362)
Total 8,031 (2,004) 6,731 (1,577)
__________
(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) Prior period amounts have been reclassified to conform to current period presentation.
(5) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. The denominator in the yield percentage includes assets "held-for-sale" as of March 31, 2022 and December 31, 2021. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.

Page 34

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022
Reconciling Items Reconciling Items
Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of 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 Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums 18,860 — — (1) 1,228 358 — — 20,445 28,466 — — (2) 1,248 299 — — 30,011
Policy charges and fee income 3,165 95 — 59 — — — — 3,319 3,175 43 — 141 — 58 — — 3,417
Net investment income 11,378 (14) — — 1,491 512 — — 13,367 9,701 (18) — — 1,508 736 — — 11,927
Realized investment gains (losses), net 293 (2,932) — — (361) (123) — — (3,123) 678 (3,506) — — 69 (351) — — (3,110)
Asset management fees, commissions and other income 4,178 464 — — 183 273 (51) — 5,047 5,319 (1,553) — — (621) (925) 21 — 2,241
Change in value of market risk benefits, net of related hedging gains (losses) — — (160) — — — — — (160) — — (1,072) — — 34 — — (1,038)
Total revenues 37,874 (2,387) (160) 58 2,541 1,020 (51) — 38,895 47,339 (5,034) (1,072) 139 2,204 (149) 21 — 43,448
Benefits and expenses:
Insurance and annuity benefits 20,867 17 — 7 2,290 566 — — 23,747 31,023 335 — (11) 1,865 (209) — — 33,003
Change in estimates of liability for future policy benefits 230 34 — (137) — 104 — — 231 901 141 — (468) — 23 — — 597
Interest credited to policyholders' account balances 2,340 428 — — 89 145 — — 3,002 1,927 (136) — — 91 (487) — — 1,395
Interest expense 1,324 — — — — (3) — — 1,321 1,172 — — — 4 — — — 1,176
Deferral of acquisition costs (1,691) — — — — — — — (1,691) (1,616) — — — — — — — (1,616)
Amortization of acquisition costs 1,061 21 — — 10 — — — 1,092 1,053 28 — 1 10 — — — 1,092
General and administrative expenses 9,479 — — — 202 83 (9) 28 9,783 9,026 — — — 212 349 39 27 9,653
Total benefits and expenses 33,610 500 — (130) 2,591 895 (9) 28 37,485 43,486 368 — (478) 2,182 (324) 39 27 45,300
__________
(1) See page 39 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, and goodwill impairments.

Page 35

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended September 30, 2023 Three Months Ended September 30, 2022
Reconciling Items Reconciling Items
Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of 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 Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums 3,659 — — (1) 392 123 — — 4,173 15,322 — — (1) 396 128 — — 15,845
Policy charges and fee income 1,060 12 — 40 — — — — 1,112 1,083 33 — 27 — — — — 1,143
Net investment income 3,893 (5) — — 511 172 — — 4,571 3,047 (4) — — 434 154 — — 3,631
Realized investment gains (losses), net 47 (2,126) — — (231) (92) — — (2,402) 250 (687) — — 29 (22) — — (430)
Asset management fees, commissions and other income 1,467 (277) — — (57) 38 (22) — 1,149 1,378 (445) — — (149) (687) (27) — 70
Change in value of market risk benefits, net of related hedging gains (losses) — — (251) — — — — — (251) — — (58) — — — — — (58)
Total revenues 10,126 (2,396) (251) 39 615 241 (22) — 8,352 21,080 (1,103) (58) 26 710 (427) (27) — 20,201
Benefits and expenses:
Insurance and annuity benefits 4,348 91 — 4 515 202 — — 5,160 15,925 154 — (2) 621 (456) — — 16,242
Change in estimates of liability for future policy benefits 49 2 — (108) — 8 — — (49) 59 — — (97) — 3 — — (35)
Interest credited to policyholders' account balances 804 (5) — — 30 43 — — 872 628 (20) — — 30 53 — — 691
Interest expense 422 — — — (1) — — — 421 407 — — — 4 (1) — — 410
Deferral of acquisition costs (576) — — — — — — — (576) (531) — — — — — — — (531)
Amortization of acquisition costs 351 7 — — 3 — — — 361 355 6 — — 3 (1) — — 363
General and administrative expenses 3,122 — — — 66 34 (11) 10 3,221 3,070 — — — 73 28 6 10 3,187
Total benefits and expenses 8,520 95 — (104) 613 287 (11) 10 9,410 19,913 140 — (99) 731 (374) 6 10 20,327
__________
(1) See page 39 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, and goodwill impairments.

Page 36

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended March 31, 2023
Reconciling Items Reconciling Items
Total realized investment gains (losses), net, and related charges and adjustments Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of 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 Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums — — 1 451 108 — — 6,464 8,833 — — — 406 124 — — 9,363
Policy charges and fee income 77 — 21 — — — — 1,198 1,073 37 — 24 — — — — 1,134
Net investment income (5) — — 468 164 — — 4,110 3,671 (5) — — 481 173 — — 4,320
Realized investment gains (losses), net (1,200) — — (339) (27) — — (1,397) 137 105 — — (17) (8) — — 217
Asset management fees, commissions and other income 78 — — 174 646 (19) — 2,429 1,390 375 — — 101 89 (19) — 1,936
Change in value of market risk benefits, net of related hedging gains (losses) — 629 — — — — — 629 — — 75 — — — — — 75
Total revenues (1,050) 629 22 754 891 (19) — 13,433 15,104 512 75 24 971 378 (19) — 17,045
Benefits and expenses:
Insurance and annuity benefits (128) — 5 678 842 — — 8,011 9,588 (32) — 4 875 188 — — 10,623
Change in estimates of liability for future policy benefits 13 — (7) — 1 — — 57 22 24 — (28) — 7 — — 25
Interest credited to policyholders' account balances (20) — — 30 53 — — 798 756 144 — — 30 51 — — 981
Interest expense — — — 5 (2) — — 420 441 — — — 1 (1) — — 441
Deferral of acquisition costs — — — — — — — (539) (569) — — — — — — — (569)
Amortization of acquisition costs 9 — (1) 4 1 — — 341 355 7 — — 3 — — — 365
Goodwill impairment — — — — — — 903 903 — — — — — — — — —
General and administrative expenses — — — 77 25 (1) 9 3,482 3,245 — — — 66 26 (14) 9 3,332
Total benefits and expenses (126) — (3) 794 920 (1) 912 13,473 13,838 143 — (24) 975 271 (14) 9 15,198
__________
(1) See page 39 for a definition of adjusted operating income.
(2) Represents adjustments not included in the above reconciling items, including goodwill impairments related to Assurance IQ that resulted in charges of 903 million pre-tax and 713 million after-tax in the fourth quarter of December 31, 2022. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.

All values are in US Dollars.

Page 37

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended June 30, 2023
Reconciling Items
Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums 6,368 — — — 430 111 — — 6,909
Policy charges and fee income 1,032 46 — (5) — — — — 1,073
Net investment income 3,814 (4) — — 499 167 — — 4,476
Realized investment gains (losses), net 109 (911) — — (113) (23) — — (938)
Asset management fees, commissions and other income 1,321 366 — — 139 146 (10) — 1,962
Change in value of market risk benefits, net of related hedging gains (losses) — — 16 — — — — — 16
Total revenues 12,644 (503) 16 (5) 955 401 (10) — 13,498
Benefits and expenses:
Insurance and annuity benefits 6,931 (42) — (1) 900 176 — — 7,964
Change in estimates of liability for future policy benefits 159 8 — (1) — 89 — — 255
Interest credited to policyholders' account balances 780 289 — — 29 51 — — 1,149
Interest expense 461 — — — — (2) — — 459
Deferral of acquisition costs (546) — — — — — — — (546)
Amortization of acquisition costs 355 7 — — 4 — — — 366
General and administrative expenses 3,112 — — — 70 23 16 9 3,230
Total benefits and expenses 11,252 262 — (2) 1,003 337 16 9 12,877
__________
(1) See page 39 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, and goodwill impairments.

Page 38

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
KEY DEFINITIONS AND FORMULAS
1. Adjusted operating income before income taxes:
Adjusted operating income is a non-GAAP measure used by the Company to evaluate segment performance and to allocate resources. Adjusted operating income excludes “Realized investment gains (losses), net, and related charges and adjustments." A significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as 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 “Change in value of market risk benefits, net of related hedging gains (losses)”, which reflects the impact from changes in current market conditions, and market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which we believe enhances the understanding of underlying performance trends. Adjusted operating income also excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations and discontinued operations and earnings attributable to noncontrolling interests, each of which is presented as a separate component of net income under GAAP. Additionally, adjusted operating income excludes other items, such as certain components of the consideration for acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments. Earnings attributable to noncontrolling interests 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 the Japan operation.
4. Assets Under Administration:
Fair market value of assets in client accounts and mortgage servicing assets, which are reported on an unpaid principal balance basis, that are not included in Assets Under Management. Prudential does not receive a management fee on these assets, but may receive a fee for executing trades, custody or record keeping services, or servicing the mortgage loans. In addition, fair market value of assets for which Prudential provides non-discretionary investment advice and receives a fee.
5. Assets Under Management:
Fair market value of assets directly managed by Prudential or joint ventures of which Prudential has at least 50% ownership, and assets invested in investment options included in the Company’s products that are managed by third party sub-advised managers at the discretion of Prudential. This includes externally managed modified coinsurance for both Hartford and Allstate. It also includes the fair value of derivatives used in various portfolio management strategies related to the portfolio’s invested assets, regardless of the hedge accounting designation, but excludes direct hedges of product liabilities and expenses.
6. Book value per share of Common Stock:
GAAP equity attributed to Prudential Financial, Inc. divided by the number of common shares outstanding at end of period, on a diluted basis. Adjusted book value per common share is a non-GAAP measure. This non-GAAP measure augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations, separate from the portion that is affected by capital and currency market conditions including the removal of the associated accounting impacts of the remeasurement of certain insurance liabilities and investments that are marked to market through AOCI under GAAP. However, adjusted book value per common share is not a substitute for book value per share including AOCI determined in accordance with GAAP, and the adjustments made to derive the measure are important to an understanding of our overall financial position.

Page 39

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
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 the Japan operation.
13. Gibraltar Life Consultants:
Captive insurance agents for Gibraltar Life.
14. Group Insurance Benefits Ratios:
Ratio of policyholder benefits to earned premiums, policy charges and fee income.
15. Group Life Insurance and Group Disability Insurance Administrative Operating Expense Ratios:
Ratio of administrative operating expenses (excluding commissions) to gross premiums, and net policy charges and fee income.
16. Individual Retirement Strategies Account Values in General Account and Separate Account:
Amounts represent the breakdown of invested customer funds in annuities either written or reinsured by the Company.
17. Individual Retirement Strategies - Net Amounts at Risk:
Living Benefit Features - For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance.
Death Benefit Features - Net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.
18. Insurance and Annuity Benefits:
Total death benefits, annuity benefits, disability benefits, other policy benefits, and losses paid or incurred, under insurance and annuity contracts, plus the change in reserves for future policy benefits, losses and loss adjustment expenses.
19. International Life Planners:
Captive insurance Advisors in our Life Planner operations.

Page 40

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2023
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.

Page 41

Table of Contents

Prudential Financial, Inc. image23.jpg
Quarterly Financial Supplement
Third Quarter 2023
RATINGS AND INVESTOR INFORMATION
FINANCIAL STRENGTH RATINGS
as of November 1, 2023
Standard & Fitch
A.M. Best* Poor's Moody's* Ratings*
The Prudential Insurance Company of America A+ AA- Aa3 AA-
PRUCO Life Insurance Company A+ AA- Aa3 AA-
PRUCO Life Insurance Company of New Jersey A+ AA- NR AA-
The Prudential Life Insurance Co., Ltd. (Prudential of Japan) NR A+ NR NR
Gibraltar Life Insurance Company, Ltd. NR A+ NR NR
The Prudential Gibraltar Financial Life Insurance Co. Ltd. NR A+ NR NR
CREDIT RATINGS:
as of November 1, 2023
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.

Page 42

Report a Problem

Category
Description
Email (optional, for follow-up)