Equibles

8-K

PRUDENTIAL FINANCIAL INC (PRU)

8-K 2023-02-07 For: 2023-02-07
View Original
Added on April 03, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________

FORM 8-K

___________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 7, 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 fourth quarter 2022 results.

Item 7.01    Regulation FD Disclosure.

A. Quarterly Financial Supplement. The Company furnishes herewith, as Exhibit 99.2, the Quarterly Financial Supplement for fourth quarter 2022.
B. Conference Call and Related Materials. Members of the Company's senior management will hold a conference call on Wednesday, February 8, 2023 at 11:00 A.M. ET, to discuss the Company's fourth quarter 2022 results. Related materials are available on the Company's Investor Relations website at www.investor.prudential.com.
C. Share Repurchase Authorization. Today, the Company is announcing that its Board of Directors has authorized the repurchase of up to $1.0 billion of its outstanding Common Stock during the period from January 1, 2023 through December 31, 2023.<br><br><br><br>The timing and amount of any share repurchases under the Company’s share repurchase authorization will be determined by management based on market conditions and other considerations, and such repurchases may be executed in the open market, through derivative, accelerated repurchase and other negotiated transactions and through plans designed to comply with Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended.
D. Dividend Declaration. Today the Company announced the declaration of a quarterly dividend of $1.25 per share of Common Stock, payable on March 16, 2023, to shareholders of record as of February 21, 2023.

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

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
99.1 News release of Prudential Financial, Inc. datedFebruaryexhibit991-4q22earningspre.htm7, 2023, announcingfourthquarter 2022 results (furnished and not filed).
99.2 Quarterly Financial Supplement for Prudential Financial, Inc. forfourthquarter 2022 (furnished and not filed).
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

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

Date: February 7, 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

February 7, 2023

Prudential Financial, Inc. Announces

2022 Results

•Fourth quarter 2022 net loss attributable to Prudential Financial, Inc. of $558 million or $1.53 per Common share versus net income of $1.208 billion or $3.13 per share for the year-ago quarter.

•Fourth quarter 2022 after-tax adjusted operating income of $907 million or $2.42 per Common share versus $1.227 billion or $3.18 per share for the year-ago quarter.

•2022 net loss attributable to Prudential Financial, Inc. of $1.438 billion or $3.93 per Common share versus net income of $7.724 billion or $19.51 per share for 2021.

•2022 after-tax adjusted operating income of $3.592 billion or $9.46 per Common share versus $5.772 billion or $14.58 per share for 2021.

•Book value per Common share of $43.81 versus $161.26 per share for the year-ago quarter; adjusted book value per Common share of $99.22 versus $108.72 per share for the year-ago quarter.

•Parent company highly liquid assets(1) of $4.5 billion versus $3.6 billion for the year-ago quarter.

•Assets under management(2) of $1.377 trillion versus $1.742 trillion for the year-ago quarter.

•Capital returned to shareholders of $824 million in the fourth quarter, including $375 million of share repurchases and $449 million of dividends, versus $818 million in the year-ago quarter. Dividends paid were $1.20 per Common share, representing a 5% yield on adjusted book value.

•The Company’s Board of Directors has authorized the repurchase of up to $1.0 billion of outstanding Common Stock during the period from January 1, 2023 through December 31, 2023. In addition, the Company declared a quarterly dividend of $1.25 per share of Common Stock, payable on March 16, 2023, to shareholders of record as of February 21, 2023. This represents an increase of 4% over the prior year dividend level, the 15th consecutive year the dividend has been increased.

Charles Lowrey, Chairman and CEO, commented on results:

“Our fourth quarter operating results reflect lower variable investment and fee income, partially offset by improved COVID-19 mortality, a benefit from net spread results due to rising interest rates, and underlying business growth.

During the year, we made further progress on our transformation to become a higher growth, less market sensitive, and more nimble company. We reduced the market sensitivity of our business while investing in sustainable, long-term growth. We also exceeded our $750 million cost savings target a year ahead of schedule and maintained our rock solid balance sheet and disciplined approach to capital deployment.

Looking ahead, our strategic progress, financial strength, and complementary businesses, combined with the benefits of a higher interest rate environment, position us well for the future. For nearly 150 years, Prudential has remained focused on creating value for its customers, shareholders, and other stakeholders. We will continue to meet their evolving needs with enhanced solutions and customer experience that make us a global leader in expanding access to investing, insurance, and retirement security.”

  • more -
Prudential Financial, Inc. Fourth Quarter 2022 Earnings Release Page 2

NEWARK, N.J. – Prudential Financial, Inc. (NYSE: PRU) today reported fourth quarter and year-end 2022 results. Net loss attributable to Prudential Financial, Inc. was $558 million ($1.53 per Common share) for the fourth quarter of 2022, compared to net income of $1.208 billion ($3.13 per Common share) for the fourth quarter of 2021. After-tax adjusted operating income was $907 million ($2.42 per Common share) for the fourth quarter of 2022, compared to $1.227 billion ($3.18 per Common share) for the fourth quarter of 2021.

Net loss attributable to Prudential Financial, Inc. was $1.438 billion ($3.93 per Common share) for 2022, compared to net income of $7.724 billion ($19.51 per Common share) for 2021. After-tax adjusted operating income was $3.592 billion ($9.46 per Common share) for 2022, compared to $5.772 billion ($14.58 per Common share) for 2021.

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

NET INCOME

Net loss in the current quarter included a goodwill impairment charge of $713 million, net of tax, reflecting a decline in the fair value of Assurance IQ as a result of lower expected earnings growth, a higher discount rate applied to future cash flows, and lower peer valuations. The current quarter also included $1.027 billion of pre-tax net realized investment losses and related charges and adjustments, largely reflecting the impacts of rising interest rates, including $41 million of pre-tax net impairment and credit-related losses, $62 million of pre-tax losses from divested and run-off businesses, and $123 million of pre-tax gains related to market experience updates.

Net income for the year-ago quarter included a goodwill impairment charge of $837 million, net of tax, reflecting the decline in the fair value of Assurance IQ. This loss was offset by $420 million of pre-tax gains related to market experience updates, $332 million of pre-tax earnings from divested and run-off businesses, and $116 million of pre-tax net realized investment gains and related charges and adjustments, including $17 million of pre-tax net impairment and credit-related losses.

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 $230 million for the fourth quarter of 2022, compared to $350 million in the year-ago quarter. This decrease primarily reflects lower asset management fees, driven by a reduction in assets under management, and lower Other Related Revenues, driven by lower incentive fees, agency income, and transaction fees, partially offset by lower expenses.

PGIM assets under management of $1.228 trillion were down 19% from the year-ago quarter, resulting from higher interest rates and widening credit spreads, as well as declines in equity markets. Third-party net outflows of $11.7 billion in the current quarter were driven primarily by public fixed income funds and reflect institutional outflows of $6.0 billion and retail outflows of $5.7 billion.

U.S. Businesses

U.S. Businesses reported adjusted operating income of $864 million for the fourth quarter of 2022, compared to $895 million in the year-ago quarter. This decrease primarily reflects lower net investment spread results, driven by lower variable investment income, and lower net fee income, partially offset by more favorable underwriting results.

Retirement Strategies, consisting of Institutional Retirement Strategies and Individual Retirement Strategies, reported adjusted operating income of $802 million for the fourth quarter of 2022, compared to $1.029 billion in the year-ago quarter.

Institutional Retirement Strategies:

•Reported adjusted operating income of $342 million in the current quarter, compared to $543 million in the year-ago quarter. This decrease reflects lower net investment spread results, driven by lower

  • more -
Prudential Financial, Inc. Fourth Quarter 2022 Earnings Release Page 3

variable investment income, partially offset by the benefits from business growth and rising interest rates.

•Account values of $252 billion, a record high, increased 2% from the year-ago quarter and reflects $31.8 billion of new business growth driven by significant pension risk transfer transactions. Net inflows in the current quarter totaled $8.0 billion, driven by $10.7 billion of international reinsurance transactions.

Individual Retirement Strategies:

•Reported adjusted operating income of $460 million in the current quarter, compared to $486 million in the year-ago quarter. This decrease reflects lower fee income, net of distribution expenses and other associated costs, driven by a reduction in account values, partially offset by higher net investment spread results.

•Account values of $120 billion were down 34% from the year-ago quarter, reflecting the sale of a block of legacy variable annuities, market depreciation, and net outflows. Gross sales of $1.5 billion in the current quarter reflect the continued momentum from our FlexGuard products and increased sales of fixed annuity products.

Group Insurance:

•Reported adjusted operating income of $15 million in the current quarter, compared to a net operating loss of $205 million in the year-ago quarter. This increase reflects more favorable underwriting results in both group life and disability, partially offset by lower net investment spread results, driven by lower variable investment income, and higher expenses.

•Reported earned premiums, policy charges, and fees of $1.4 billion decreased 1% from the year-ago quarter.

Individual Life:

•Reported adjusted operating income of $18 million in the current quarter, compared to $81 million in the year-ago quarter. This decrease primarily reflects lower net investment spread results, driven by lower variable investment income, partially offset by lower expenses.

•Sales of $154 million in the current quarter decreased 15% from the year-ago quarter, driven by lower Variable Life sales.

Assurance IQ reported adjusted operating income of $29 million in the current quarter, compared to a net operating loss of $10 million in the year-ago quarter. This increase reflects higher Medicare commission revenue and lower expenses.

International Businesses

International Businesses, consisting of Life Planner and Gibraltar Life & Other, reported adjusted operating income of $618 million for the fourth quarter of 2022, compared to $829 million in the year-ago quarter. This decrease primarily reflects lower net investment spread results, driven by lower variable investment income, less favorable underwriting results, including unfavorable policyholder behavior, and higher expenses.

Life Planner:

•Reported adjusted operating income of $363 million in the current quarter, compared to $428 million in the year-ago quarter. This decrease reflects lower net investment spread results, driven by lower variable investment income, higher expenses, and less favorable underwriting results, including unfavorable policyholder behavior, partially offset by business growth.

•Constant dollar basis sales(3) of $276 million in the current quarter increased 17% from the year-ago quarter, primarily driven by growth in Brazil, as well as higher sales in Japan.

Gibraltar Life & Other:

•Reported adjusted operating income of $255 million in the current quarter, compared to $401 million in the year-ago quarter. This decrease reflects lower net investment spread results, driven by lower variable

  • more -
Prudential Financial, Inc. Fourth Quarter 2022 Earnings Release Page 4

investment income, less favorable underwriting results, including unfavorable policyholder behavior, and higher expenses.

•Constant dollar basis sales(3) of $254 million in the current quarter increased 20% from the year-ago quarter, primarily driven by the Life Consultant channel.

Corporate & Other

Corporate & Other reported a loss, on an adjusted operating income basis, of $526 million for the fourth quarter of 2022, compared to a loss of $489 million in the year-ago quarter. This higher loss reflects higher expenses, partially offset by higher income from pension and other employee benefit plans.

EARNINGS CONFERENCE CALL

Members of Prudential’s senior management will host a conference call on Wednesday, February 8, 2023, at 11:00 a.m. ET to discuss with the investment community the Company’s fourth quarter results. The conference call will be broadcast live over the Company’s Investor Relations website at investor.prudential.com. Please log on 15 minutes early in the event necessary software needs to be downloaded. Institutional investors, analysts, and other 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 February 22. To access a replay via phone starting at 3:00 p.m. ET on February 8 through February 22, dial (877) 660-6853 (domestic) or (201) 612-7415 (international) and use replay code 13733989.

prurocklogoa04.jpg

FORWARD-LOOKING STATEMENTS

Certain of the statements included in this release, including those regarding our strategy to become a higher growth, less market sensitive, and more nimble company, our approach to capital management and deployment, the expected impact of the higher interest rate environment, 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

  • more -
Prudential Financial, Inc. Fourth Quarter 2022 Earnings Release Page 5

information relating to our financial performance is located on our website at investor.prudential.com.

Adjusted operating income is a non-GAAP measure used by the Company to evaluate segment performance and to allocate resources. Adjusted operating income excludes “Realized investment gains (losses), net,” as adjusted, and related charges and adjustments. A significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as our tax and capital profile.

Realized investment gains (losses) within certain businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments, are included in adjusted operating income. Adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset-liability management program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are designated as trading. Adjusted operating income also excludes investment gains and losses on assets supporting experience-rated contractholder liabilities and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to ultimately accrue to contractholders. Additionally, adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income.

Adjusted operating income excludes market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which we believe enhances the understanding of underlying performance trends. Adjusted operating income also excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations, and discontinued operations and earnings attributable to noncontrolling interests, each of which is presented as a separate component of net income under GAAP. Additionally, adjusted operating income excludes other items, such as certain components of the consideration for acquisitions, which are recognized as compensation expense over the requisite service periods, changes in the fair value of contingent consideration, and goodwill impairments. Earnings attributable to noncontrolling interests is presented as a separate component of net income under GAAP and excluded from adjusted operating income. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments.

Adjusted operating income does not equate to “Net income” as determined in accordance with U.S. GAAP. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described above.

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

FOOTNOTES

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

(2)For more information about assets under management, see the section entitled “Management’s Discussion and

  • more -
Prudential Financial, Inc. Fourth Quarter 2022 Earnings Release Page 6

Analysis of Financial Condition and Results of Operations – Results of Operations – Segment Measures” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

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

Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.4 trillion in assets under management as of December 31, 2022, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise, and innovation for 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 Year Ended
December 31 December 31
2022 2021 2022 2021
Adjusted operating income (loss) before income taxes (1):
PGIM $ 230 $ 350 $ 843 $ 1,643
U.S. Businesses 864 895 2,879 3,875
International Businesses 618 829 2,404 3,390
Corporate and Other (526) (489) (1,476) (1,607)
Total adjusted operating income before income taxes $ 1,186 $ 1,585 $ 4,650 $ 7,301
Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments $ (1,027) $ 116 $ (6,201) $ 1,627
Market experience updates 123 420 781 750
Divested and Run-off Businesses:
Closed Block division (44) 48 (32) 140
Other Divested and Run-off Businesses (18) 284 9 716
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (21) 12 (44) (41)
Other adjustments (2) (912) (1,077) (939) (1,112)
Total reconciling items, before income taxes (1,899) (197) (6,426) 2,080
Income (loss) before income taxes and equity in earnings of operating joint ventures $ (713) $ 1,388 $ (1,776) $ 9,381
Income Statement Data:
Net income (loss) attributable to Prudential Financial, Inc. $ (558) $ 1,208 $ (1,438) $ 7,724
Income (loss) attributable to noncontrolling interests 2 34 (24) 70
Net income (loss) (556) 1,242 (1,462) 7,794
Less: Earnings attributable to noncontrolling interests 2 34 (24) 70
Income (loss) attributable to Prudential Financial, Inc. (558) 1,208 (1,438) 7,724
Less: Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests (9) (10) (32) 17
Income (loss) (after-tax) before equity in earnings of operating joint ventures (549) 1,218 (1,406) 7,707
Less: Total reconciling items, before income taxes (1,899) (197) (6,426) 2,080
Less: Income taxes, not applicable to adjusted operating income (443) (188) (1,428) 145
Total reconciling items, after income taxes (1,456) (9) (4,998) 1,935
After-tax adjusted operating income (1) 907 1,227 3,592 5,772
Income taxes, applicable to adjusted operating income 279 358 1,058 1,529
Adjusted operating income before income taxes (1) $ 1,186 $ 1,585 $ 4,650 $ 7,301
See footnotes on last page.

Page 1

Financial Highlights
(in millions, except per share data, unaudited)
Three Months Ended Year Ended
December 31 December 31
2022 2021 2022 2021
Earnings per share of Common Stock:
Net income (loss) attributable to Prudential Financial, Inc. $ (1.53) $ 3.13 $ (3.93) $ 19.51
Less: Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments (2.78) 0.30 (16.55) 4.17
Market experience updates 0.33 1.10 2.08 1.92
Divested and Run-off Businesses:
Closed Block division (0.12) 0.13 (0.09) 0.36
Other Divested and Run-off Businesses (0.05) 0.75 0.02 1.84
Difference in earnings allocated to participating unvested share-based payment awards 0.02 — 0.06 (0.07)
Other adjustments (2) (2.47) (2.83) (2.51) (2.85)
Total reconciling items, before income taxes (5.07) (0.55) (16.99) 5.37
Less: Income taxes, not applicable to adjusted operating income (1.12) (0.50) (3.60) 0.44
Total reconciling items, after income taxes (3.95) (0.05) (13.39) 4.93
After-tax adjusted operating income $ 2.42 $ 3.18 $ 9.46 $ 14.58
Weighted average number of outstanding common shares (basic) 367.6 377.7 372.3 387.2
Weighted average number of outstanding common shares (diluted) 369.4 380.9 374.7 390.1
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc. $ (558) $ 1,208 $ (1,438) $ 7,724
Less: Earnings allocated to participating unvested share-based payment awards 6 17 25 115
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation $ (564) $ 1,191 $ (1,463) $ 7,609
After-tax adjusted operating income (1) $ 907 $ 1,227 $ 3,592 $ 5,772
Less: Earnings allocated to participating unvested share-based payment awards 12 17 48 86
After-tax adjusted operating income for earnings per share of Common Stock calculation (1) $ 895 $ 1,210 $ 3,544 $ 5,686
Prudential Financial, Inc. Equity (as of end of period):
GAAP book value (total PFI equity) at end of period $ 16,250 $ 61,876
Less: Accumulated other comprehensive income (AOCI) (19,827) 21,324
GAAP book value excluding AOCI 36,077 40,552
Less: Cumulative effect of foreign exchange rate remeasurement and currency translation <br> adjustments corresponding to realized gains/losses (723) (1,164)
Adjusted book value $ 36,800 $ 41,716
End of period number of common shares (diluted) 370.9 383.7
GAAP book value per common share - diluted 43.81 161.26
GAAP book value excluding AOCI per share - diluted 97.27 105.69
Adjusted book value per common share - diluted 99.22 108.72
See footnotes on last page.

Page 2

Financial Highlights
(in millions, or as otherwise noted, unaudited)
Three Months Ended Year Ended
December 31 December 31
2022 2021 2022 2021
PGIM:
PGIM:
Assets Managed by PGIM (in billions, as of end of period):
Institutional customers $ 549.2 $ 629.4
Retail customers 299.6 401.4
General account 379.6 493.0
Total PGIM $ 1,228.4 $ 1,523.8
Institutional Customers - Assets Under Management (in billions):
Gross additions, other than money market $ 13.8 $ 20.2 $ 71.6 $ 78.4
Net additions (withdrawals), other than money market $ (6.0) $ 3.5 $ 3.0 $ 10.9
Retail Customers - Assets Under Management (in billions):
Gross additions, other than money market $ 16.5 $ 23.7 $ 66.3 $ 89.5
Net additions (withdrawals), other than money market $ (5.7) $ (3.6) $ (23.2) $ 0.1
U.S. Businesses:
Retirement Strategies:
Institutional Retirement Strategies:
Gross additions $ 12,277 $ 3,501 $ 31,773 $ 21,967
Net additions (withdrawals) $ 8,029 $ (1,392) $ 15,375 $ 1,142
Total account value at end of period $ 251,818 $ 245,720
Individual Retirement Strategies:
Fixed and Variable Annuity Sales and Account Values:
Gross sales $ 1,497 $ 1,551 $ 6,027 $ 6,599
Sales, net of full surrenders and death benefits $ 355 $ (1,102) $ (88) $ (3,802)
Total account value at end of period $ 120,022 $ 182,305
Group Insurance:
Group Insurance Annualized New Business Premiums (3):
Group life $ 10 $ 23 $ 283 $ 265
Group disability 13 49 196 221
Total $ 23 $ 72 $ 479 $ 486
Individual Life:
Individual Life Insurance Annualized New Business Premiums (3):
Term life $ 22 $ 24 $ 93 $ 115
Universal life (4) 25 22 92 102
Variable life 107 136 424 538
Total $ 154 $ 182 $ 609 $ 755
International Businesses:
International Businesses:
International Businesses Annualized New Business Premiums (3)(5):
Actual exchange rate basis $ 488 $ 438 $ 1,819 $ 1,940
Constant exchange rate basis $ 530 $ 448 $ 1,929 $ 1,965
See footnotes on last page.

Page 3

Financial Highlights
(in billions, as of end of period, unaudited)
December 31
2022 2021
Assets and Assets Under Management and Administration:
Total assets $ 689.9 $ 937.6
Assets under management (at fair market value):
PGIM $ 1,228.4 $ 1,523.8
U.S. Businesses 126.7 163.1
International Businesses 16.1 12.8
Corporate and Other 6.1 42.6
Total assets under management 1,377.3 1,742.3
Assets under administration 157.4 382.5
Total assets under management and administration $ 1,534.7 $ 2,124.8

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 goodwill impairments related to Assurance IQ that resulted in charges of $903 million pre-tax and $713 million after-tax for the three months and year ended December 31, 2022, and $1,060 million pre-tax and $837 million after-tax for the three months and year ended December 31, 2021. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of the associated contingent consideration.
(3) Premiums from new sales are expected to be collected over a one-year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers’ Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Excess (unscheduled) and single premium business for the Company’s domestic individual life and international operations are included in annualized new business premiums based on a 10% credit.
(4) Prior period amounts have been reclassified to conform to current period presentation.
(5) Actual amounts reflect the impact of currency fluctuations. Constant amounts reflect foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 104 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 5

Document

Table of Contents

Exhibit 99.2

Prudential Financial, Inc. (PRU)
Quarterly Financial Supplement
Fourth Quarter 2022
Reference is made to Prudential Financial, Inc.'s (PFI) filings with the Securities and Exchange Commission for general information, and consolidated financial information. All financial information in this document is unaudited.

i

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
TABLE OF CONTENTS
Page
HIGHLIGHTS
Financial Metrics Summary 1
Financial Highlights 2
Other Financial Highlights 3
Operations Highlights 4
Combined Statements of Operations 5
Consolidated Balance Sheets 6
Combining Balance Sheets 7
Short-Term and Long-Term Debt - Unaffiliated 8
PGIM
Statements of Operations 9
Supplementary Revenue and Assets Under Management Information 10
Supplementary Assets Under Management Information 11
U.S.BUSINESSES
Combined Statements of Operations 12
Combined Statements of Operations - Retirement Strategies 13
Statements of Operations - 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 Living Benefit Features 19
Individual Retirement Strategies Death Benefit Features 20
Statements of Operations - Group Insurance 21
Group Insurance Supplementary Information 22
Statements of Operations - Individual Life 23
Individual Life Supplementary Information 24
Statements of Operations - Assurance IQ 25
INTERNATIONAL BUSINESSES
Combined Statements of Operations 26
Statements of Operations - Life Planner 27
Statements of Operations - Gibraltar Life and Other 28
Sales Results and Supplementary Information 29
CORPORATE AND OTHER
Statements of Operations 31
INVESTMENT PORTFOLIO
Investment Portfolio Composition 32
Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations 33
Investment Results 34
Investment Results - Japanese Insurance Operations 35
Investment Results - Excluding Japanese Insurance Operations 36
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES 37
KEY DEFINITIONS AND FORMULAS 39
RATINGS AND INVESTOR INFORMATION 42

ii

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
FINANCIAL METRICS SUMMARY
(in millions, except per share and return on equity data)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022 % change
Earnings
Adjusted operating income (loss) before income taxes:
PGIM 350 188 206 219 230 1,643 843 -49%
U.S. Businesses 895 943 370 702 864 3,875 2,879 -26%
International Businesses 829 801 555 430 618 3,390 2,404 -29%
Corporate and Other (489) (366) (259) (325) (526) (1,607) (1,476) 8%
Total adjusted operating income before income taxes 1,585 1,566 872 1,026 1,186 7,301 4,650 -36%
Income taxes, applicable to adjusted operating income 358 348 208 223 279 1,529 1,058 -31%
After-tax adjusted operating income 1,227 1,218 664 803 907 5,772 3,592 -38%
Income (loss) attributable to Prudential Financial, Inc. 1,208 (31) (565) (284) (558) 7,724 (1,438) -119%
Return on Equity
Operating Return on Average Equity (based on adjusted operating income) (1) 11.8 % 11.8 % 6.6 % 8.3 % 9.7 % 14.3 % 9.1 %
Return on Average Equity (based on net income (loss)) 7.8 % -0.2 % -6.3 % -5.1 % -13.6 % 12.4 % -4.3 %
Distributions to Shareholders
Dividends paid 443 462 457 454 449 1,821 1,822 —%
Share repurchases 375 375 375 375 375 2,500 1,500 -40%
Total capital returned 818 837 832 829 824 4,321 3,322 -23%
Per Share Data
Net income (loss) (diluted) (2) 3.13 (0.10) (1.53) (0.78) (1.53) 19.51 (3.93) -120%
Adjusted Operating Income (diluted) 3.18 3.17 1.74 2.13 2.42 14.58 9.46 -35%
Shareholder dividends 1.15 1.20 1.20 1.20 1.20 4.60 4.80 4%
Book value 161.26 115.28 74.72 44.15 43.81
Book value excluding AOCI and FX (3) 108.72 107.16 104.19 102.26 99.22
Shares Outstanding
Weighted average number of common shares (basic) 377.7 376.1 374.4 371.0 367.6 387.2 372.3 -4%
Weighted average number of common shares (diluted) 380.9 379.1 377.1 373.1 369.4 390.1 374.7 -4%
End of period common shares (basic) 376.3 375.7 372.6 369.1 366.0
End of period common shares (diluted) 383.7 381.5 377.9 373.8 370.9
__________
(1) Operating Return on Average Equity (based on adjusted operating income) is a non-GAAP measure and represents adjusted operating income after-tax, annualized for interim periods, divided by average Prudential Financial, Inc. equity excluding accumulated other comprehensive income and adjusted to remove amounts included for foreign currency exchange rate remeasurement as described on page 3.
(2) For the three months ended December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, and for the year ended December 31, 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 December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, and for the year ended December 31, 2022 all potential stock options and compensation programs were considered antidilutive.
(3) AOCI represents accumulated other comprehensive income and FX represents the remeasurement of foreign currency. See page 3 for further details.

Page 1

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022
Earnings per share of Common Stock (diluted):
After-tax adjusted operating income 3.18 3.17 1.74 2.13 2.42 14.58 9.46
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments 0.30 (3.59) (6.23) (3.92) (2.78) 4.17 (16.55)
Market experience updates 1.10 (0.02) 1.41 0.36 0.33 1.92 2.08
Divested and Run-off Businesses:
Closed Block division 0.13 0.06 0.03 (0.06) (0.12) 0.36 (0.09)
Other Divested and Run-off Businesses 0.75 (0.79) 1.07 (0.20) (0.05) 1.84 0.02
Difference in earnings allocated to participating unvested share-based payment awards — 0.03 0.01 0.01 0.02 (0.07) 0.06
Other adjustments (1) (2.83) (0.04) — (0.03) (2.47) (2.85) (2.51)
Total reconciling items, before income taxes (0.55) (4.35) (3.71) (3.84) (5.07) 5.37 (16.99)
Income taxes, not applicable to adjusted operating income (0.50) (1.08) (0.44) (0.93) (1.12) 0.44 (3.60)
Total reconciling items, after income taxes (0.05) (3.27) (3.27) (2.91) (3.95) 4.93 (13.39)
Net income (loss) attributable to Prudential Financial, Inc. 3.13 (0.10) (1.53) (0.78) (1.53) 19.51 (3.93)
Weighted average number of outstanding common shares (basic) 377.7 376.1 374.4 371.0 367.6 387.2 372.3
Weighted average number of outstanding common shares (diluted) 380.9 379.1 377.1 373.1 369.4 390.1 374.7
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc. 1,208 (31) (565) (284) (558) 7,724 (1,438)
Less: Earnings allocated to participating unvested share-based payment awards 17 7 6 6 6 115 25
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation 1,191 (38) (571) (290) (564) 7,609 (1,463)
After-tax adjusted operating income 1,227 1,218 664 803 907 5,772 3,592
Less: Earnings allocated to participating unvested share-based payment awards 17 17 9 10 12 86 48
After-tax adjusted operating income for earnings per share of Common Stock calculation 1,210 1,201 655 793 895 5,686 3,544
___________
(1) Represents adjustments not included in the above reconciling items, including goodwill impairments that resulted in charges in the fourth quarters and years ended December 31, 2022 and 2021 related to Assurance IQ. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of the associated contingent consideration.

Page 2

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
OTHER FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2021 2022
4Q 1Q 2Q 3Q 4Q
Capitalization Data (1):
Senior Debt:
Short-term Debt 722 544 558 767 775
Long-term Debt 11,003 11,082 11,008 10,810 10,814
Junior Subordinated Long-term Debt 7,619 8,607 8,604 9,088 9,094
Prudential Financial, Inc. Equity:
Including accumulated other comprehensive income 61,876 43,978 28,235 16,502 16,250
Excluding accumulated other comprehensive income (2) 40,552 39,773 38,413 37,376 36,077
Amount included above for remeasurement of foreign currency (3) (1,164) (1,107) (962) (847) (723)
Excluding accumulated other comprehensive income and adjusted to remove amount
included for remeasurement of foreign currency (3) 41,716 40,880 39,375 38,223 36,800
Book Value per Share of Common Stock:
Including accumulated other comprehensive income 161.26 115.28 74.72 44.15 43.81
Excluding accumulated other comprehensive income (2) 105.69 104.25 101.65 99.99 97.27
Amount included above for remeasurement of foreign currency (3) (3.03) (2.91) (2.54) (2.27) (1.95)
Excluding accumulated other comprehensive income and adjusted to remove amount
included for remeasurement of foreign currency (3) 108.72 107.16 104.19 102.26 99.22
End of period number of common shares (diluted) 383.7 381.5 377.9 373.8 370.9
Common Stock Price Range (based on closing price):
High 114.00 121.38 121.06 105.49 110.21
Low 100.05 102.05 91.33 85.78 89.19
Close 108.24 118.17 95.68 85.78 99.46
Common Stock market capitalization (1) 40,731 44,396 35,650 31,661 36,402
__________
(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. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
OPERATIONS HIGHLIGHTS
2021 2022
4Q 1Q 2Q 3Q 4Q
Assets Under Management and Administration (in billions) (1)(2):
PGIM:
Institutional customers 629.4 593.7 560.7 536.3 549.2
Retail customers 401.4 364.7 314.3 298.1 299.6
General account 493.0 456.2 382.4 371.8 379.6
Total PGIM 1,523.8 1,414.6 1,257.4 1,206.2 1,228.4
U.S. Businesses 163.1 151.9 132.2 123.4 126.7
International Businesses 12.8 13.8 13.6 13.8 16.1
Corporate and Other 42.6 39.8 6.4 6.1 6.1
Total assets under management 1,742.3 1,620.1 1,409.6 1,349.5 1,377.3
Assets under administration 382.5 370.7 145.9 139.4 157.4
Total assets under management and administration 2,124.8 1,990.8 1,555.5 1,488.9 1,534.7
Distribution Representatives (1):
Prudential Advisors 2,846 2,835 2,817 2,774 2,616
International Life Planners 6,024 6,056 5,924 5,972 5,924
Gibraltar Life Consultants 7,100 7,022 6,910 6,861 6,821
Prudential Advisor Productivity (in thousands) 106 76 83 78 108
__________
(1) As of end of period.
(2) At fair market value.

Page 4

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
COMBINED STATEMENTS OF OPERATIONS
(in millions)
2022 Year-to-date
1Q 2Q 3Q 4Q 2021 2022 % change
Revenues (1):
Premiums 7,300 6,634 15,724 6,145 32,347 35,803 11%
Policy charges and fee income 1,454 1,615 1,279 1,328 5,986 5,676 -5%
Net investment income 3,413 3,241 3,047 3,483 14,160 13,184 -7%
Asset management fees, commissions and other income 1,490 2,284 1,561 1,693 7,288 7,028 -4%
Total revenues 13,657 13,774 21,611 12,649 59,781 61,691 3%
Benefits and expenses (1):
Insurance and annuity benefits 8,035 8,694 16,513 6,963 35,368 40,205 14%
Interest credited to policyholders' account balances 655 663 634 720 2,683 2,672 —%
Interest expense 364 401 407 417 1,474 1,589 8%
Deferral of acquisition costs (581) (522) (531) (561) (2,544) (2,195) 14%
Amortization of acquisition costs 535 605 499 546 2,080 2,185 5%
General and administrative expenses 3,083 3,061 3,063 3,378 13,419 12,585 -6%
Total benefits and expenses 12,091 12,902 20,585 11,463 52,480 57,041 9%
Adjusted operating income before income taxes 1,566 872 1,026 1,186 7,301 4,650 -36%
Income taxes, applicable to adjusted operating income 348 208 223 279 1,529 1,058 -31%
After-tax adjusted operating income 1,218 664 803 907 5,772 3,592 -38%
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments (1,360) (2,350) (1,464) (1,027) 1,627 (6,201) -481%
Market experience updates (6) 531 133 123 750 781 4%
Divested and Run-off Businesses:
Closed Block division 23 13 (24) (44) 140 (32) -123%
Other Divested and Run-off Businesses (299) 402 (76) (18) 716 9 -99%
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (22) 21 (22) (21) (41) (44) -7%
Other adjustments (2) (17) — (10) (912) (1,112) (939) 16%
Total reconciling items, before income taxes (1,681) (1,383) (1,463) (1,899) 2,080 (6,426) -409%
Income taxes, not applicable to adjusted operating income (417) (197) (371) (443) 145 (1,428) -1085%
Total reconciling items, after income taxes (1,264) (1,186) (1,092) (1,456) 1,935 (4,998) -358%
Income (loss) before income taxes and equity in earnings of operating joint ventures (115) (511) (437) (713) 9,381 (1,776) -119%
Income tax expense (benefit) (69) 11 (148) (164) 1,674 (370) -122%
Income (loss) before equity in earnings of operating joint ventures (46) (522) (289) (549) 7,707 (1,406) -118%
Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests 15 (43) 5 (9) 17 (32) -288%
Income (loss) attributable to Prudential Financial, Inc. (31) (565) (284) (558) 7,724 (1,438) -119%
Earnings attributable to noncontrolling interests (13) (7) (6) 2 70 (24) -134%
Net income (loss) (44) (572) (290) (556) 7,794 (1,462) -119%
Less: Income (loss) attributable to noncontrolling interests (13) (7) (6) 2 70 (24) -134%
Net income (loss) attributable to Prudential Financial, Inc. (31) (565) (284) (558) 7,724 (1,438) -119%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, revenues of Divested and Run-off Businesses, and changes in the fair value of contingent consideration associated with the Assurance IQ acquisition, and include revenues representing equity in earnings of operating joint ventures other than those classified as Divested and Run-off Businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, benefits and expenses of Divested and Run-off Businesses, and certain components of 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 37 and 38 for reconciliation.
(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 and year ended December 31, 2022, and 1,060 million pre-tax and 837 million after-tax in the fourth quarter and year ended December 31, 2021. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of the associated contingent consideration.

All values are in US Dollars.

Page 5

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
CONSOLIDATED BALANCE SHEETS
(in millions)
12/31/2021 03/31/2022 06/30/2022 09/30/2022 12/31/2022
Assets:
Investments:
Fixed maturities, available-for-sale, at fair value
(net of allowance for credit losses $114; $192; $109; $151; $138) (amortized cost $333,459; $332,640; $319,003; $325,957; $335,447) 372,410 344,957 306,655 295,841 307,719
Fixed maturities, held-to-maturity, at amortized cost, net of allowance for credit losses
(net of allowance for credit losses $5; $4; $3; $2; $2) (fair value $1,803; $1,679; $1,475; $1,371; $1,455) 1,514 1,432 1,280 1,199 1,296
Fixed maturities, trading, at fair value
(amortized cost $8,741; $8,262; $7,354; $7,268; $7,303) 8,823 7,724 6,272 5,690 5,951
Assets supporting experience-rated contractholder liabilities, at fair value 3,358 3,184 2,785 2,580 2,844
Equity securities, at fair value
(cost $5,815; $4,872; $4,502; $5,378; $5,306) 8,574 7,397 6,402 6,882 7,150
Commercial mortgage and other loans
(net of allowance for credit losses $119; $121; $196; $218; $203) 58,666 59,304 56,840 56,896 56,745
Policy loans 10,386 10,207 10,024 9,920 10,046
Other invested assets
(net of allowance for credit losses $2; $2; $1; $1; $1) 21,833 21,540 21,310 21,050 21,099
Short-term investments
(net of allowance for credit losses $0; $0; $0; $5; $6) 6,635 4,592 6,828 5,181 4,591
Total investments 492,199 460,337 418,396 405,239 417,441
Cash and cash equivalents 12,888 14,086 14,359 20,104 17,251
Accrued investment income 2,855 2,838 2,798 2,888 3,012
Deferred policy acquisition costs 18,192 18,479 18,632 19,334 19,537
Value of business acquired 771 714 571 532 595
Income tax assets — — 696 3,831 4,214
Other assets
(net of allowance for credit losses $19; $20; $21; $21; $26) (1) 164,532 151,991 34,534 31,303 30,188
Separate account assets 246,145 229,621 205,613 194,525 197,679
Total assets 937,582 878,066 695,599 677,756 689,917
Liabilities:
Future policy benefits 290,784 284,380 275,096 278,262 284,452
Policyholders' account balances 122,633 122,465 130,352 131,679 135,602
Securities sold under agreements to repurchase 10,185 9,085 8,006 8,223 6,589
Cash collateral for loaned securities 4,251 4,771 5,741 5,865 6,100
Income tax liabilities 9,513 4,501 — — —
Senior short-term debt 722 544 558 767 775
Senior long-term debt 11,003 11,082 11,008 10,810 10,814
Junior subordinated long-term debt 7,619 8,607 8,604 9,088 9,094
Other liabilities
(net of allowance for credit losses $21; $19; $18; $17; $18) (1) 171,845 158,072 21,471 21,139 21,230
Notes issued by consolidated variable interest entities 274 260 232 218 374
Separate account liabilities 246,145 229,621 205,613 194,525 197,679
Total liabilities 874,974 833,388 666,681 660,576 672,709
Equity:
Accumulated other comprehensive income (loss) 21,324 4,205 (10,178) (20,874) (19,827)
Other equity 40,552 39,773 38,413 37,376 36,077
Total Prudential Financial, Inc. equity 61,876 43,978 28,235 16,502 16,250
Noncontrolling interests 732 700 683 678 958
Total equity 62,608 44,678 28,918 17,180 17,208
Total liabilities and equity 937,582 878,066 695,599 677,756 689,917
__________
(1) December 31, 2021 and March 31, 2022 balances include the carrying amounts of Assets and Liabilities "held-for-sale" related to the April 2022 dispositions of the Full Service Retirement Business and a portion of Individual Retirement Strategies' Traditional Variable Annuity Block of Business.

Page 6

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
COMBINING BALANCE SHEETS
(in millions)
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 3,811 179,393 165,831 19,548
Deferred policy acquisition costs 19,537 169 19,368 — 11,911 7,800 (343)
Other assets 55,260 1,895 53,365 4,498 25,791 11,924 11,152
Separate account assets 197,679 — 197,679 40,055 161,267 — (3,643)
Total assets 689,917 50,922 638,995 48,364 378,362 185,555 26,714
Liabilities:
Future policy benefits 284,452 44,433 240,019 — 109,161 121,145 9,713
Policyholders' account balances 135,602 4,606 130,996 — 75,947 46,862 8,187
Debt 20,683 — 20,683 1,726 8,120 84 10,753
Other liabilities 34,293 3,472 30,821 2,813 12,128 8,096 7,784
Separate account liabilities 197,679 — 197,679 40,055 161,267 — (3,643)
Total liabilities 672,709 52,511 620,198 44,594 366,623 176,187 32,794
Equity:
Accumulated other comprehensive loss (19,827) (214) (19,613) (145) (8,834) (7,746) (2,888)
Other equity 36,077 (1,387) 37,464 2,613 20,489 17,083 (2,721)
Total Prudential Financial, Inc. equity 16,250 (1,601) 17,851 2,468 11,655 9,337 (5,609)
Noncontrolling interests 958 12 946 1,302 84 31 (471)
Total equity 17,208 (1,589) 18,797 3,770 11,739 9,368 (6,080)
Total liabilities and equity 689,917 50,922 638,995 48,364 378,362 185,555 26,714
As of December 31, 2021
Consolidated PFI Closed Block Division PFI Excluding Closed Block Division PGIM U.S. Businesses International Businesses Corporate and Other
Assets:
Total investments 492,199 58,800 433,399 4,808 191,928 204,475 32,188
Deferred policy acquisition costs 18,192 188 18,004 — 10,714 7,658 (368)
Other assets (1) 181,046 991 180,055 4,828 70,007 10,603 94,617
Separate account assets 246,145 — 246,145 43,930 205,951 — (3,736)
Total assets 937,582 59,979 877,603 53,566 478,600 222,736 122,701
Liabilities:
Future policy benefits 290,784 45,596 245,188 — 108,439 127,661 9,088
Policyholders' account balances 122,633 4,737 117,896 — 59,987 49,503 8,406
Debt 19,344 — 19,344 1,698 8,513 166 8,967
Other liabilities (1) 196,068 11,086 184,982 4,192 65,038 16,125 99,627
Separate account liabilities 246,145 — 246,145 43,930 205,951 — (3,736)
Total liabilities 874,974 61,419 813,555 49,820 447,928 193,455 122,352
Equity:
Accumulated other comprehensive income 21,324 (46) 21,370 (48) 9,218 12,182 18
Other equity 40,552 (1,406) 41,958 2,721 21,362 17,062 813
Total Prudential Financial, Inc. equity 61,876 (1,452) 63,328 2,673 30,580 29,244 831
Noncontrolling interests 732 12 720 1,073 92 37 (482)
Total equity 62,608 (1,440) 64,048 3,746 30,672 29,281 349
Total liabilities and equity 937,582 59,979 877,603 53,566 478,600 222,736 122,701
______________
(1) Balances include the carrying amounts of Assets and Liabilities "held-for-sale" related to the April 2022 dispositions of the Full Service Retirement Business and a portion of Individual Retirement Strategies' Traditional Variable Annuity Block of Business.

Page 7

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED
(in millions)
As of December 31, 2021
Senior Debt
Long-term Debt Junior Subordinated Long-term Debt Total Debt Short-term Debt Long-term Debt Junior Subordinated Long-term Debt Total Debt
Borrowings by use of proceeds:
Capital Debt 4,877 9,094 14,071 98 4,975 7,619 12,692
Operating Debt 5,583 — 6,094 420 5,650 — 6,070
Limited recourse and non-recourse borrowing 354 — 518 204 378 — 582
Total Debt 10,814 9,094 20,683 722 11,003 7,619 19,344
As of December 31, 2021
The Prudential The Prudential
Insurance Company Other Prudential Insurance Company Other
of America (1)(2) Affiliates Total Debt Financial, Inc. of America (1)(2) Affiliates Total Debt
Borrowings by sources:
Capital Debt 445 47 14,071 12,096 444 152 12,692
Operating Debt 486 — 6,094 5,602 468 — 6,070
Limited recourse and non-recourse borrowing 179 339 518 — 274 308 582
Total Debt 1,110 386 20,683 17,698 1,186 460 19,344
__________
(1) Includes Prudential Funding, LLC.
(2) Capital Debt at The Prudential Insurance Company of America includes 345 million of surplus notes as of December 31, 2022 and 344 million as of December 31, 2021.

All values are in US Dollars.

Page 8

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
STATEMENTS OF OPERATIONS - PGIM
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022 % change
Revenues (1):
Premiums — — — — — — — —
Policy charges and fee income — — — — — — — —
Net investment income 47 (4) (14) 56 56 157 94 -40%
Asset management fees, commissions and other income 1,051 930 843 851 904 4,336 3,528 -19%
Total revenues 1,098 926 829 907 960 4,493 3,622 -19%
Benefits and expenses (1):
Insurance and annuity benefits — — — — — — — —
Interest credited to policyholders' account balances — — — — — — — —
Interest expense 6 6 10 14 27 25 57 128%
Deferral of acquisition costs (1) (1) — (1) — (5) (2) 60%
Amortization of acquisition costs 1 1 1 1 — 6 3 -50%
General and administrative expenses 742 732 612 674 703 2,824 2,721 -4%
Total benefits and expenses 748 738 623 688 730 2,850 2,779 -2%
Adjusted operating income before income taxes 350 188 206 219 230 1,643 843 -49%
Total revenues 1,098 926 829 907 960 4,493 3,622 -19%
Less: Passthrough distribution revenue 29 19 29 19 19 120 86 -28%
Less: Revenue associated with consolidations 19 15 (21) 8 31 71 33 -54%
Total adjusted revenues (2) 1,050 892 821 880 910 4,302 3,503 -19%
Adjusted operating margin (2)(3) 33.3 % 21.1 % 25.1 % 24.9 % 25.3 % 38.2 % 24.1 %
__________
(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 23.9%, 24.2%, 24.8%, 20.3%, and 31.9% for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, respectively, and 23.2% and 36.6% for the years ended December 31, 2022 and December 31, 2021, respectively.

Page 9

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
PGIM - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION
2022 Year-to-date
1Q 2Q 3Q 4Q 2021 2022 % change
Supplementary Revenue Information (in millions):
Analysis of revenues by type:
Asset management fees 809 756 742 725 3,302 3,032 -8%
Other related revenues (1) 19 17 80 113 403 229 -43%
Service, distribution and other revenues 98 56 85 122 788 361 -54%
Total PGIM revenues 926 829 907 960 4,493 3,622 -19%
Analysis of asset management fees by source:
Institutional customers 363 357 364 359 1,439 1,443 —%
Retail customers 301 274 256 250 1,275 1,081 -15%
General account 145 125 122 116 588 508 -14%
Total asset management fees 809 756 742 725 3,302 3,032 -8%
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 396.3 73.4 30.0 1.2 549.2
Retail customers 131.3 2.0 0.9 69.6 299.6
General account 249.2 54.2 72.5 — 379.6
Total 776.8 129.6 103.4 70.8 1,228.4
Public Fixed Income Real Estate Private Credit and Other Alternatives Multi-Asset Total
Institutional customers 470.3 61.9 26.7 6.6 629.4
Retail customers 171.8 1.9 0.8 79.0 401.4
General account 338.6 68.8 81.2 — 493.0
Total 980.7 132.6 108.7 85.6 1,523.8
__________
(1) Other related revenues, net of related expenses are 51 million, 47 million, 2 million, 8 million, and 87 million for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, respectively, and 108 million and 262 million for the years ended December 31, 2022 and December 31, 2021, respectively.

All values are in US Dollars.

Page 10

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
PGIM - SUPPLEMENTARY ASSETS UNDER MANAGEMENT INFORMATION
(in billions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022
Institutional Customers - Assets Under Management (at fair market value):
Beginning assets under management 562.4 568.0 536.9 539.7 516.6 550.2 568.0
Additions 20.2 16.8 24.6 16.4 13.8 78.4 71.6
Withdrawals (16.7) (16.5) (16.5) (15.8) (19.8) (67.5) (68.6)
Change in market value 4.0 (34.2) (46.5) (22.1) 17.0 5.1 (85.8)
Net money market flows (1.9) 4.4 (3.4) (0.9) (0.7) (4.7) (0.6)
Other — (1.6) 44.6 (0.7) 2.0 6.5 44.3
Ending assets under management 568.0 536.9 539.7 516.6 528.9 568.0 528.9
Affiliated institutional assets under management 61.4 56.8 21.0 19.7 20.3 61.4 20.3
Total assets managed for institutional customers at end of period 629.4 593.7 560.7 536.3 549.2 629.4 549.2
Net institutional additions (withdrawals), excluding money market activity 3.5 0.3 8.1 0.6 (6.0) 10.9 3.0
Retail Customers - Assets Under Management (at fair market value):
Beginning assets under management 262.8 265.8 238.7 204.0 192.2 252.5 265.8
Additions 23.7 20.2 16.1 13.5 16.5 89.5 66.3
Withdrawals (27.3) (24.8) (24.4) (18.1) (22.2) (89.4) (89.5)
Change in market value 5.0 (22.5) (33.0) (5.5) 4.2 16.8 (56.8)
Net money market flows 0.1 0.6 0.3 — 1.0 0.7 1.9
Other 1.5 (0.6) 6.3 (1.7) — (4.3) 4.0
Ending assets under management 265.8 238.7 204.0 192.2 191.7 265.8 191.7
Affiliated retail assets under management 135.6 126.0 110.3 105.9 107.9 135.6 107.9
Total assets managed for retail customers at end of period 401.4 364.7 314.3 298.1 299.6 401.4 299.6
Net retail additions (withdrawals), excluding money market activity (3.6) (4.6) (8.3) (4.6) (5.7) 0.1 (23.2)

Page 11

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022 % change
Revenues (1):
Premiums 3,054 3,074 3,271 12,134 2,847 16,722 21,326 28%
Policy charges and fee income 1,440 1,377 1,528 1,194 1,250 5,695 5,349 -6%
Net investment income 2,006 1,998 1,802 1,732 1,993 7,936 7,525 -5%
Asset management fees, commissions and other income 991 809 1,760 822 869 3,531 4,260 21%
Total revenues 7,491 7,258 8,361 15,882 6,959 33,884 38,460 14%
Benefits and expenses (1):
Insurance and annuity benefits 4,349 4,278 5,608 13,198 4,006 21,542 27,090 26%
Interest credited to policyholders' account balances 438 430 450 418 496 1,749 1,794 3%
Interest expense 201 202 217 199 168 798 786 -2%
Deferral of acquisition costs (301) (258) (253) (250) (258) (1,240) (1,019) 18%
Amortization of acquisition costs 247 241 323 173 214 981 951 -3%
General and administrative expenses 1,662 1,422 1,646 1,442 1,469 6,179 5,979 -3%
Total benefits and expenses 6,596 6,315 7,991 15,180 6,095 30,009 35,581 19%
Adjusted operating income before income taxes 895 943 370 702 864 3,875 2,879 -26%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, and changes in the fair value of contingent consideration associated with the Assurance IQ acquisition. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, goodwill impairment and certain components of the Assurance IQ acquisition which are recognized as compensation expense over the requisite service periods and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates.

Page 12

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022 % change
Revenues (1):
Premiums 1,522 1,592 1,802 10,670 1,370 10,895 15,434 42%
Policy charges and fee income 664 615 507 471 467 2,654 2,060 -22%
Net investment income 1,221 1,230 1,070 1,028 1,243 4,846 4,571 -6%
Asset management fees, commissions and other income 460 413 1,399 464 412 1,817 2,688 48%
Total revenues 3,867 3,850 4,778 12,633 3,492 20,212 24,753 22%
Benefits and expenses (1):
Insurance and annuity benefits 2,011 2,031 2,301 11,217 1,977 12,806 17,526 37%
Interest credited to policyholders' account balances 173 167 181 146 220 707 714 1%
Interest expense 7 8 15 (10) (53) 32 (40) -225%
Deferral of acquisition costs (87) (81) (87) (80) (83) (389) (331) 15%
Amortization of acquisition costs 142 134 111 114 106 581 465 -20%
General and administrative expenses 592 551 554 568 523 2,396 2,196 -8%
Total benefits and expenses 2,838 2,810 3,075 11,955 2,690 16,133 20,530 27%
Adjusted operating income before income taxes 1,029 1,040 1,703 678 802 4,079 4,223 4%
__________
(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 13

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES - INSTITUTIONAL RETIREMENT STRATEGIES
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022 % change
Revenues (1):
Premiums 1,502 1,554 1,799 10,657 1,352 10,795 15,362 42%
Policy charges and fee income 9 8 10 10 7 36 35 -3%
Net investment income 990 968 892 824 969 3,921 3,653 -7%
Asset management fees, commissions and other income 139 113 93 75 110 546 391 -28%
Total revenues 2,640 2,643 2,794 11,566 2,438 15,298 19,441 27%
Benefits and expenses (1):
Insurance and annuity benefits 1,950 1,935 2,259 11,164 1,917 12,525 17,275 38%
Interest credited to policyholders' account balances 84 81 76 102 124 348 383 10%
Interest expense 3 4 (2) 6 7 14 15 7%
Deferral of acquisition costs (3) (2) (3) (10) (7) (18) (22) -22%
Amortization of acquisition costs 5 5 3 11 4 22 23 5%
General and administrative expenses 58 52 63 60 51 229 226 -1%
Total benefits and expenses 2,097 2,075 2,396 11,333 2,096 13,120 17,900 36%
Adjusted operating income before income taxes 543 568 398 233 342 2,178 1,541 -29%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses.

Page 14

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
U.S. BUSINESSES - RETIREMENT STRATEGIES - INSTITUTIONAL RETIREMENT STRATEGIES SALES RESULTS AND ACCOUNT VALUES
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022
Beginning total account value 246,068 245,720 239,102 234,594 238,313 243,387 245,720
Additions 3,501 2,278 3,700 13,518 12,277 21,967 31,773
Withdrawals and benefits (4,893) (4,899) (3,560) (3,691) (4,248) (20,825) (16,398)
Change in market value, interest credited and interest income 570 (1,570) (2,389) (553) 402 1,881 (4,110)
Other (1) 474 (2,427) (2,259) (5,555) 5,074 (690) (5,167)
Ending total account value 245,720 239,102 234,594 238,313 251,818 245,720 251,818
Net additions (withdrawals) (1,392) (2,621) 140 9,827 8,029 1,142 15,375
Amounts included in ending total account value above:
Investment-only stable value wraps 70,207 68,582 71,125 71,168 69,521
International reinsurance (2) 82,406 81,816 74,021 68,581 83,910
Group annuities and other products 93,107 88,704 89,448 98,564 98,387
Ending total account value 245,720 239,102 234,594 238,313 251,818
__________
(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. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022 % change
Revenues (1):
Premiums 20 38 3 13 18 100 72 -28%
Policy charges and fee income 655 607 497 461 460 2,618 2,025 -23%
Net investment income 231 262 178 204 274 925 918 -1%
Asset management fees, commissions and other income 321 300 1,306 389 302 1,271 2,297 81%
Total revenues 1,227 1,207 1,984 1,067 1,054 4,914 5,312 8%
Benefits and expenses (1):
Insurance and annuity benefits 61 96 42 53 60 281 251 -11%
Interest credited to policyholders' account balances 89 86 105 44 96 359 331 -8%
Interest expense 4 4 17 (16) (60) 18 (55) -406%
Deferral of acquisition costs (84) (79) (84) (70) (76) (371) (309) 17%
Amortization of acquisition costs 137 129 108 103 102 559 442 -21%
General and administrative expenses 534 499 491 508 472 2,167 1,970 -9%
Total benefits and expenses 741 735 679 622 594 3,013 2,630 -13%
Adjusted operating income before income taxes 486 472 1,305 445 460 1,901 2,682 41%
__________
(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 16

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES SALES RESULTS AND ACCOUNT VALUES
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022
Variable Annuities:
Beginning total account value 172,813 176,439 162,936 117,574 110,030 170,546 176,439
Sales: FlexGuard Suite (1)(2) 1,369 1,405 1,451 1,081 1,061 5,739 4,998
Other variable annuities (2)(3) 137 114 80 59 39 615 292
Total sales 1,506 1,519 1,531 1,140 1,100 6,354 5,290
Full surrenders and death benefits (2,625) (2,156) (1,528) (1,201) (1,114) (10,282) (5,999)
Sales, net of full surrenders and death benefits (1,119) (637) 3 (61) (14) (3,928) (709)
Partial withdrawals and other benefit payments (1,522) (1,371) (915) (895) (1,138) (5,329) (4,319)
Net flows (2,641) (2,008) (912) (956) (1,152) (9,257) (5,028)
Change in market value, interest credited, and other (4) 7,176 (10,643) (43,832) (5,973) 5,653 18,798 (54,795)
Policy charges (909) (852) (618) (615) (590) (3,648) (2,675)
Ending total account value 176,439 162,936 117,574 110,030 113,941 176,439 113,941
Variable Annuities Account Value by Product:
FlexGuard Suite (1)(2) 8,699 9,625 9,533 10,123 11,825 8,699 11,825
Other variable annuities (2)(3) 167,740 153,311 108,041 99,907 102,116 167,740 102,116
Ending total account value 176,439 162,936 117,574 110,030 113,941 176,439 113,941
Fixed Annuities and other products:
Beginning total account value 5,865 5,866 5,858 5,564 5,760 5,734 5,866
Sales 45 24 67 249 397 245 737
Full surrenders and death benefits (28) (32) (32) (24) (28) (119) (116)
Sales, net of full surrenders and death benefits 17 (8) 35 225 369 126 621
Partial withdrawals and other benefit payments (99) (96) (79) (81) (95) (383) (351)
Net flows (82) (104) (44) 144 274 (257) 270
Interest credited and other 84 96 (249) 53 49 390 (51)
Policy charges (1) — (1) (1) (2) (1) (4)
Ending total account value, gross 5,866 5,858 5,564 5,760 6,081 5,866 6,081
Reinsurance ceded (477) (481) (514) (637) (817) (477) (817)
Ending total account value, net 5,389 5,377 5,050 5,123 5,264 5,389 5,264
SALES BY DISTRIBUTION CHANNEL:
Variable and Fixed Annuities (5):
Insurance Agents 635 614 607 563 606 2,456 2,390
Wirehouses 113 84 58 86 100 468 328
Independent Marketing Organization 3 1 2 3 4 15 10
Independent Financial Planners 725 766 843 668 707 3,379 2,984
Bank Distribution 75 78 88 69 80 281 315
Total 1,551 1,543 1,598 1,389 1,497 6,599 6,027
__________
(1) Includes Prudential FlexGuard and FlexGuard Income.
(2) The amounts for fourth quarter of 2021, and first quarter of 2022 have been reclassified to conform to current period presentation.
(3) Includes Prudential Premier Investment (PPI), MyRock and legacy products with and without guaranteed minimum income and withdrawal benefits.
(4) Includes impact from the sale of the Traditional Variable Annuity Block of Business in second quarter of 2022.
(5) Amounts represent gross sales.

Page 17

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES ACCOUNT VALUE ACTIVITY
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022
Account Values in General Account (1):
Beginning balance 18,300 20,062 20,928 19,430 20,170 13,843 20,062
Premiums and deposits 1,359 1,366 1,596 1,300 1,437 5,852 5,699
Full surrenders and death benefits (101) (106) (225) (86) (87) (395) (504)
Premiums and deposits net of full surrenders and death benefits 1,258 1,260 1,371 1,214 1,350 5,457 5,195
Partial withdrawals and other benefit payments (184) (174) (124) (131) (167) (654) (596)
Net flows 1,074 1,086 1,247 1,083 1,183 4,803 4,599
Change in market value, interest credited and other (2) 701 72 (2,461) (240) 619 1,437 (2,010)
Net transfers (to) from separate account (12) (292) (283) (102) 93 (20) (584)
Policy charges (1) — (1) (1) (2) (1) (4)
Ending balance, gross 20,062 20,928 19,430 20,170 22,063 20,062 22,063
Reinsurance ceded (477) (481) (514) (637) (817) (477) (817)
Ending balance, net 19,585 20,447 18,916 19,533 21,246 19,585 21,246
Account Values in Separate Account (1):
Beginning balance 160,378 162,243 147,866 103,708 95,620 162,437 162,243
Premiums and deposits 192 177 2 89 60 747 328
Full surrenders and death benefits (2,552) (2,082) (1,335) (1,139) (1,055) (10,006) (5,611)
Premiums and deposits net of full surrenders and death benefits (2,360) (1,905) (1,333) (1,050) (995) (9,259) (5,283)
Partial withdrawals and other benefit payments (1,437) (1,293) (870) (845) (1,066) (5,058) (4,074)
Net flows (3,797) (3,198) (2,203) (1,895) (2,061) (14,317) (9,357)
Change in market value, interest credited and other (2) 6,559 (10,619) (41,620) (5,680) 5,083 17,751 (52,836)
Net transfers (to) from general account 12 292 283 102 (93) 20 584
Policy charges (909) (852) (618) (615) (590) (3,648) (2,675)
Ending balance 162,243 147,866 103,708 95,620 97,959 162,243 97,959
__________
(1) Premiums and deposits, and surrenders and withdrawals, are classified within the general account and separate account for purposes of this presentation based on the allocation of customer funds. For example, premiums allocated by customers to separate account investments at the time of sale, while remitted through the company's general account, are shown as separate account premium in this display, rather than as general account premium and transfers to the separate account.
(2) Includes impact from the sale of the Traditional Variable Annuity Block of Business in second quarter of 2022.

Page 18

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES LIVING BENEFIT FEATURES
(in millions)
2021 2022
4Q 1Q 2Q 3Q 4Q
ACCOUNT VALUE AND NET AMOUNT AT RISK (1):
Variable Annuity Account Values
Guaranteed minimum accumulation benefits 1,702 1,543 546 503 501
Guaranteed minimum withdrawal benefits 302 271 112 102 105
Guaranteed minimum income benefits 2,444 2,202 1,631 1,519 1,561
Guaranteed minimum withdrawal & income benefits - risk retained by Prudential 135,293 123,571 87,601 80,866 82,718
Guaranteed minimum withdrawal & income benefits - externally reinsured 3,303 3,068 2,660 2,446 2,482
Total 143,044 130,655 92,550 85,436 87,367
Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature - risk retained by Prudential 113,110 103,805 73,070 67,654 69,365
Account Values with Auto-Rebalancing Feature - externally reinsured 3,303 3,068 2,660 2,446 2,482
Account Values without Auto-Rebalancing Feature 26,631 23,782 16,820 15,336 15,520
Total 143,044 130,655 92,550 85,436 87,367
Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature - risk retained by Prudential 2,931 4,485 5,754 8,174 7,152
Net Amount at Risk without Auto-Rebalancing Feature 409 734 1,526 2,372 2,075
Total 3,340 5,219 7,280 10,546 9,227
__________
(1) At end of period.

Page 19

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES DEATH BENEFIT FEATURES
(in millions)
2021 2022
4Q 1Q 2Q 3Q 4Q
ACCOUNT VALUE AND NET AMOUNT AT RISK (1):
Variable Annuity Account Values
Return of net deposits:
Account value 132,265 120,838 84,119 77,643 79,436
Net amount at risk 199 311 640 1,483 987
Minimum return, anniversary contract value, or maximum contract value:
Account value 29,121 26,565 19,122 17,751 18,071
Net amount at risk 2,055 3,187 4,529 5,363 4,733
Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature 116,413 106,873 75,730 70,100 71,847
Account Values without Auto-Rebalancing Feature 44,973 40,530 27,511 25,294 25,660
Total 161,386 147,403 103,241 95,394 97,507
Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature 1,066 1,910 2,961 3,779 3,269
Net Amount at Risk without Auto-Rebalancing Feature 1,188 1,588 2,208 3,067 2,451
Total 2,254 3,498 5,169 6,846 5,720
__________
(1) At end of period.

Page 20

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - GROUP INSURANCE
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022 % change
Revenues (1):
Premiums 1,259 1,219 1,208 1,216 1,232 4,886 4,875 —%
Policy charges and fee income 174 181 151 170 187 695 689 -1%
Net investment income 131 124 117 121 117 538 479 -11%
Asset management fees, commissions and other income 26 20 20 20 20 98 80 -18%
Total revenues 1,590 1,544 1,496 1,527 1,556 6,217 6,123 -2%
Benefits and expenses (1):
Insurance and annuity benefits 1,493 1,351 1,145 1,201 1,223 5,482 4,920 -10%
Interest credited to policyholders' account balances 40 36 38 38 41 171 153 -11%
Interest expense 1 1 1 1 1 3 4 33%
Deferral of acquisition costs (3) (2) — (1) — (3) (3) —%
Amortization of acquisition costs 1 1 2 1 1 5 5 —%
General and administrative expenses 263 268 257 260 275 1,014 1,060 5%
Total benefits and expenses 1,795 1,655 1,443 1,500 1,541 6,672 6,139 -8%
Adjusted operating income (loss) before income taxes (205) (111) 53 27 15 (455) (16) 96%
__________
(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 21

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
U.S. BUSINESSES - GROUP INSURANCE SUPPLEMENTARY INFORMATION
(dollar amounts in millions, or as otherwise noted)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022
Annualized New Business Premiums:
Group life 23 180 26 67 10 265 283
Group disability 49 130 17 36 13 221 196
Total 72 310 43 103 23 486 479
Future Policy Benefits (1):
Group life 2,756 2,606 2,480 2,402 2,580
Group disability 3,030 3,066 3,089 3,098 3,106
Total 5,786 5,672 5,569 5,500 5,686
Policyholders' Account Balances (1):
Group life 6,175 5,992 5,978 5,882 5,744
Group disability 131 137 133 125 131
Total 6,306 6,129 6,111 6,007 5,875
Separate Account Liabilities (1):
Group life 27,097 25,938 23,772 22,789 23,513
Group Life Insurance:
Gross premiums, policy charges and fee income (2) 1,053 1,059 1,103 1,052 1,122 4,161 4,336
Earned premiums 928 916 887 886 900 3,670 3,589
Earned policy charges and fee income 151 158 127 145 167 610 597
Benefits ratio (3) 109.8 % 103.6 % 87.7 % 91.4 % 90.2 % 102.7 % 93.3 %
Administrative operating expense ratio 11.5 % 10.7 % 10.7 % 10.9 % 10.8 % 11.3 % 10.8 %
Persistency ratio 96.4 % 96.3 % 96.4 % 96.0 % 95.9 %
Group Disability Insurance:
Gross premiums, policy charges and fee income (2) 355 340 344 356 361 1,308 1,401
Earned premiums 331 303 321 330 332 1,216 1,286
Earned policy charges and fee income 23 23 24 25 20 85 92
Benefits ratio (3) 87.3 % 73.4 % 73.0 % 72.5 % 74.2 % 83.8 % 73.3 %
Administrative operating expense ratio 31.4 % 31.1 % 32.2 % 30.3 % 31.6 % 32.1 % 31.3 %
Persistency ratio 93.4 % 92.8 % 92.4 % 90.9 % 90.6 %
Total Group Insurance:
Benefits ratio (3) 104.3 % 96.5 % 84.0 % 86.6 % 86.2 % 98.3 % 88.4 %
Administrative operating expense ratio 16.5 % 15.6 % 15.9 % 15.9 % 15.9 % 16.3 % 15.8 %
Net face amount of policies in force (in billions) (4) 2,004 2,021 2,068 2,103 2,126
__________
(1) As of end of period.
(2) Before returns of premiums to participating policyholders for favorable claims experience.
(3) Benefits ratios excluding the impact of the annual assumption updates and other refinements in the second quarter. Benefits ratios including these impacts for Group Life, Group Disability, and Total Group Insurance are 87.1%, 75.5%, and 84.20% for the three months ended June 30, 2022, respectively. Benefits ratios including these impacts for Group Life, Group Disability, and Total Group Insurance are 93.2%, 73.9%, 88.4% and 102.7%, 83.8%, 98.3% for the years ended December 31, 2022 and December 31, 2021, respectively.
(4) At end of period; net of reinsurance.

Page 22

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
U.S. BUSINESSES - STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022 % change
Revenues (1):
Premiums 273 263 261 248 245 941 1,017 8%
Policy charges and fee income 602 581 870 553 596 2,346 2,600 11%
Net investment income 653 644 614 582 632 2,550 2,472 -3%
Asset management fees, commissions and other income 279 269 263 240 213 1,060 985 -7%
Total revenues 1,807 1,757 2,008 1,623 1,686 6,897 7,074 3%
Benefits and expenses (1):
Insurance and annuity benefits 845 896 2,162 780 806 3,254 4,644 43%
Interest credited to policyholders' account balances 225 227 231 234 235 871 927 6%
Interest expense 190 189 198 206 217 752 810 8%
Deferral of acquisition costs (211) (175) (166) (169) (175) (848) (685) 19%
Amortization of acquisition costs 104 106 210 58 107 395 481 22%
General and administrative expenses 573 463 698 473 478 2,080 2,112 2%
Total benefits and expenses 1,726 1,706 3,333 1,582 1,668 6,504 8,289 27%
Adjusted operating income (loss) before income taxes 81 51 (1,325) 41 18 393 (1,215) -409%
__________
(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 23

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
U.S. BUSINESSES - INDIVIDUAL LIFE SUPPLEMENTARY INFORMATION
(in millions, or as otherwise noted)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022
ANNUALIZED NEW BUSINESS PREMIUMS (1):
Term life 24 24 23 24 22 115 93
Universal life (2) 22 22 22 23 25 102 92
Variable life 136 104 110 103 107 538 424
Total 182 150 155 150 154 755 609
ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):
Prudential Advisors 38 35 33 33 32 149 133
Third party distribution 144 115 122 117 122 606 476
Total 182 150 155 150 154 755 609
ACCOUNT VALUE ACTIVITY:
Policyholders' Account Balances (3):
Beginning balance 30,602 30,876 31,079 31,182 31,512 29,950 30,876
Premiums and deposits 691 671 623 639 648 3,122 2,581
Surrenders and withdrawals (386) (424) (437) (348) (478) (1,872) (1,687)
Net sales 305 247 186 291 170 1,250 894
Benefit payments (52) (60) (60) (51) (51) (250) (222)
Net flows 253 187 126 240 119 1,000 672
Interest credited and other 451 367 404 521 297 1,572 1,589
Net transfers from separate account 88 168 98 89 98 409 453
Policy charges (518) (519) (525) (520) (520) (2,055) (2,084)
Ending balance 30,876 31,079 31,182 31,512 31,506 30,876 31,506
Separate Account Liabilities:
Beginning balance 45,555 48,133 45,226 38,931 37,250 41,428 48,133
Premiums and deposits 762 658 700 671 684 2,856 2,713
Surrenders and withdrawals (272) (238) (237) (242) (179) (1,092) (896)
Net sales 490 420 463 429 505 1,764 1,817
Benefit payments (150) (146) (116) (171) (102) (578) (535)
Net flows 340 274 347 258 403 1,186 1,282
Change in market value, interest credited and other 2,639 (2,699) (6,231) (1,532) 2,188 7,134 (8,274)
Net transfers to general account (88) (168) (98) (89) (98) (409) (453)
Policy charges (313) (314) (313) (318) (324) (1,206) (1,269)
Ending balance 48,133 45,226 38,931 37,250 39,419 48,133 39,419
NET FACE AMOUNT IN FORCE (in billions) (4):
Term life 299 299 298 297 296
Universal life (2) 99 98 99 99 98
Variable life 152 149 144 143 145
Total 550 546 541 539 539
__________
(1) Excludes corporate-owned life insurance.
(2) The amounts for fourth quarter of 2021 have been reclassified to conform to current period presentation.
(3) Includes fixed rate funds, alliance deposits, supplementary contracts and deferred revenues on variable products.
(4) At end of period; net of reinsurance. Net Face Amount In Force excludes certain policies considered to be non-core business drivers impacting Adjusted Operating Income for Individual Life. Policies within the Closed Block division are not reported through Individual Life.

Page 24

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
U.S. BUSINESSES - STATEMENTS OF OPERATIONS - ASSURANCE IQ
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022 % change
Revenues (1):
Premiums — — — — — — — —
Policy charges and fee income — — — — — — — —
Net investment income 1 — 1 1 1 2 3 50%
Asset management fees, commissions and other income 226 107 78 98 224 556 507 -9%
Total revenues 227 107 79 99 225 558 510 -9%
Benefits and expenses (1):
Insurance and annuity benefits — — — — — — — —
Interest credited to policyholders' account balances — — — — — — — —
Interest expense 3 4 3 2 3 11 12 9%
Deferral of acquisition costs — — — — — — — —
Amortization of acquisition costs — — — — — — — —
General and administrative expenses 234 140 137 141 193 689 611 -11%
Total benefits and expenses 237 144 140 143 196 700 623 -11%
Adjusted operating income (loss) before income taxes (10) (37) (61) (44) 29 (142) (113) 20%
__________
(1) Revenues exclude changes in the fair value of contingent consideration associated with the Assurance IQ acquisition. Benefits and expenses exclude goodwill impairment and certain components of the Assurance IQ acquisition which are recognized as compensation expense over the requisite service periods.

Page 25

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022 % change
Revenues (1):
Premiums 3,682 4,234 3,363 3,597 3,305 15,661 14,499 -7%
Policy charges and fee income 88 92 101 98 91 351 382 9%
Net investment income 1,373 1,297 1,286 1,112 1,271 5,403 4,966 -8%
Asset management fees, commissions and other income 130 103 (14) 51 87 500 227 -55%
Total revenues 5,273 5,726 4,736 4,858 4,754 21,915 20,074 -8%
Benefits and expenses (1):
Insurance and annuity benefits 3,289 3,764 3,083 3,314 2,953 13,850 13,114 -5%
Interest credited to policyholders' account balances 195 191 179 182 189 799 741 -7%
Interest expense 3 3 5 11 16 6 35 483%
Deferral of acquisition costs (307) (328) (286) (289) (312) (1,355) (1,215) 10%
Amortization of acquisition costs 276 305 291 337 343 1,148 1,276 11%
General and administrative expenses 988 990 909 873 947 4,077 3,719 -9%
Total benefits and expenses 4,444 4,925 4,181 4,428 4,136 18,525 17,670 -5%
Adjusted operating income before income taxes 829 801 555 430 618 3,390 2,404 -29%
__________
(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 26

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - LIFE PLANNER
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022 % change
Revenues (1):
Premiums 1,829 2,225 1,762 1,813 1,667 7,906 7,467 -6%
Policy charges and fee income 51 53 49 51 53 207 206 —%
Net investment income 582 574 555 435 555 2,244 2,119 -6%
Asset management fees, commissions and other income 73 72 59 57 83 286 271 -5%
Total revenues 2,535 2,924 2,425 2,356 2,358 10,643 10,063 -5%
Benefits and expenses (1):
Insurance and annuity benefits 1,658 1,979 1,636 1,647 1,491 7,077 6,753 -5%
Interest credited to policyholders' account balances 49 49 45 46 46 193 186 -4%
Interest expense 2 2 3 6 7 4 18 350%
Deferral of acquisition costs (165) (176) (145) (141) (153) (683) (615) 10%
Amortization of acquisition costs 122 145 128 158 172 510 603 18%
General and administrative expenses 441 447 415 386 432 1,768 1,680 -5%
Total benefits and expenses 2,107 2,446 2,082 2,102 1,995 8,869 8,625 -3%
Adjusted operating income before income taxes 428 478 343 254 363 1,774 1,438 -19%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates.

Page 27

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - GIBRALTAR LIFE AND OTHER
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022 % change
Revenues (1):
Premiums 1,853 2,009 1,601 1,784 1,638 7,755 7,032 -9%
Policy charges and fee income 37 39 52 47 38 144 176 22%
Net investment income 791 723 731 677 716 3,159 2,847 -10%
Asset management fees, commissions and other income 57 31 (73) (6) 4 214 (44) -121%
Total revenues 2,738 2,802 2,311 2,502 2,396 11,272 10,011 -11%
Benefits and expenses (1):
Insurance and annuity benefits 1,631 1,785 1,447 1,667 1,462 6,773 6,361 -6%
Interest credited to policyholders' account balances 146 142 134 136 143 606 555 -8%
Interest expense 1 1 2 5 9 2 17 750%
Deferral of acquisition costs (142) (152) (141) (148) (159) (672) (600) 11%
Amortization of acquisition costs 154 160 163 179 171 638 673 5%
General and administrative expenses 547 543 494 487 515 2,309 2,039 -12%
Total benefits and expenses 2,337 2,479 2,099 2,326 2,141 9,656 9,045 -6%
Adjusted operating income before income taxes 401 323 212 176 255 1,616 966 -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 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 28

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022
Actual exchange rate basis (1):
Net premiums, policy charges and fee income:
Japan, excluding Gibraltar Life 1,687 2,065 1,580 1,623 1,465 7,385 6,733
Gibraltar Life 1,890 2,048 1,653 1,831 1,676 7,899 7,208
All other countries 193 213 231 241 255 728 940
Total 3,770 4,326 3,464 3,695 3,396 16,012 14,881
Annualized new business premiums:
Japan, excluding Gibraltar Life 174 200 159 138 160 747 657
Gibraltar Life 211 205 231 198 244 1,000 878
All other countries 53 56 67 77 84 193 284
Total 438 461 457 413 488 1,940 1,819
Annualized new business premiums by distribution channel:
Life Planners 227 256 226 215 244 940 941
Gibraltar Life Consultants 93 100 140 125 156 485 521
Banks 68 52 33 34 49 318 168
Independent Agency 50 53 58 39 39 197 189
Total 438 461 457 413 488 1,940 1,819
Constant exchange rate basis (2):
Net premiums, policy charges and fee income:
Japan, excluding Gibraltar Life 1,763 2,184 1,747 1,844 1,710 7,576 7,485
Gibraltar Life 1,966 2,165 1,824 2,057 1,902 8,101 7,948
All other countries 215 225 231 253 270 788 979
Total 3,944 4,574 3,802 4,154 3,882 16,465 16,412
Annualized new business premiums:
Japan, excluding Gibraltar Life 178 208 174 160 186 758 728
Gibraltar Life 212 207 240 206 254 1,005 907
All other countries 58 57 66 81 90 202 294
Total 448 472 480 447 530 1,965 1,929
Annualized new business premiums by distribution channel:
Life Planners 236 265 240 241 276 960 1,022
Gibraltar Life Consultants 93 101 145 130 162 487 538
Banks 68 52 33 34 49 318 168
Independent Agency 51 54 62 42 43 200 201
Total 448 472 480 447 530 1,965 1,929
__________
(1) Translated based on applicable average exchange rates for the period shown.
(2) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 104 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 29

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
2021 2022
4Q 1Q 2Q 3Q 4Q
Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life 386 385 384 381 379
Gibraltar Life 357 355 348 345 340
All other countries 40 42 42 45 47
Total 783 782 774 771 766
Number of individual policies in force at end of period (in thousands) (3):
Japan, excluding Gibraltar Life 4,405 4,436 4,447 4,455 4,463
Gibraltar Life 6,907 6,868 6,805 6,765 6,713
All other countries 652 664 682 704 726
Total 11,964 11,968 11,934 11,924 11,902
International life insurance individual policy persistency:
Life Planner:
13 months 93.1 % 92.8 % 92.7 % 92.4 % 92.4 %
25 months 86.7 % 85.9 % 85.4 % 85.6 % 85.3 %
Gibraltar Life (4):
13 months 95.9 % 95.9 % 95.7 % 95.5 % 95.2 %
25 months 89.9 % 90.1 % 90.2 % 90.8 % 90.8 %
Number of Life Planners at end of period:
Japan 4,566 4,557 4,481 4,481 4,446
All other countries 1,458 1,499 1,443 1,491 1,478
Total Life Planners 6,024 6,056 5,924 5,972 5,924
Gibraltar Life Consultants 7,100 7,022 6,910 6,861 6,821
__________
(1) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 104 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.
(2) Net of reinsurance.
(3) Direct business only; policy count includes annuities.
(4) Reflects business sold by Life Consultants and Independent Agents.

Page 30

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
STATEMENTS OF OPERATIONS - CORPORATE AND OTHER
(in millions)
2021 2022 Year-to-date
4Q 1Q 2Q 3Q 4Q 2021 2022 % change
Revenues (1):
Premiums (13) (8) — (7) (7) (36) (22) 39%
Policy charges and fee income (16) (15) (14) (13) (13) (60) (55) 8%
Net investment income 191 122 167 147 163 664 599 -10%
Asset management fees, commissions and other income (280) (352) (305) (163) (167) (1,079) (987) 9%
Total revenues (118) (253) (152) (36) (24) (511) (465) 9%
Benefits and expenses (1):
Insurance and annuity benefits (12) (7) 3 1 4 (24) 1 104%
Interest credited to policyholders' account balances 34 34 34 34 35 135 137 1%
Interest expense 152 153 169 183 206 645 711 10%
Deferral of acquisition costs 10 6 17 9 9 56 41 -27%
Amortization of acquisition costs (14) (12) (10) (12) (11) (55) (45) 18%
General and administrative expenses 201 (61) (106) 74 259 339 166 -51%
Total benefits and expenses 371 113 107 289 502 1,096 1,011 -8%
Adjusted operating loss before income taxes (489) (366) (259) (325) (526) (1,607) (1,476) 8%
Adjusted operating income (loss) before income taxes comprised as follows:
Investment income 63 27 50 38 62 175 177 1%
Interest expense on debt (199) (198) (209) (213) (209) (827) (829) —%
Long-term and deferred compensation expense (10) (46) 12 (11) (15) (82) (60) 27%
Other (2) (343) (149) (112) (139) (364) (873) (764) 12%
Adjusted operating loss before income taxes (489) (366) (259) (325) (526) (1,607) (1,476) 8%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses. Revenues and Benefits and expenses include consolidating adjustments.
(2) Includes pension and employee benefits and other corporate activities, including consolidating adjustments.

Page 31

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
INVESTMENT PORTFOLIO COMPOSITION
(in millions)
December 31, 2022 December 31, 2021
Closed PFI Excluding Closed PFI Excluding
Total Block Closed Block Division Total Block Closed Block Division
Portfolio Division Amount % of Total Portfolio Division Amount % of Total
242,246 21,140 221,106 60.8 % 305,035 28,167 276,868 65.0 %
1,229 — 1,229 0.3 % 1,413 — 1,413 0.3 %
64,745 8,931 55,814 15.4 % 66,897 10,237 56,660 13.3 %
67 — 67 0.0 % 101 — 101 0.1 %
5,738 900 4,838 1.3 % 8,610 1,137 7,473 1.8 %
2,844 — 2,844 0.8 % 3,358 — 3,358 0.8 %
6,404 1,733 4,671 1.3 % 7,875 2,288 5,587 1.3 %
56,608 7,926 48,682 13.4 % 57,387 8,241 49,146 11.6 %
10,046 3,637 6,409 1.8 % 10,386 3,815 6,571 1.5 %
17,531 4,254 13,277 3.7 % 16,843 4,358 12,485 2.9 %
4,573 337 4,236 1.2 % 6,600 557 6,043 1.4 %
412,031 48,858 363,173 100.0 % 484,505 58,800 425,705 100.0 %
5,410 — 5,410 7,694 — 7,694
417,441 48,858 368,583 492,199 58,800 433,399
Fixed Maturities by Credit Quality (3)(5): December 31, 2022 December 31, 2021
PFI Excluding Closed Block Division PFI Excluding Closed Block Division
Gross Gross Gross Gross
Amortized Unrealized Unrealized Allowance for Fair Amortized Unrealized Unrealized Allowance for Fair
Cost Gains Losses Credit Losses Value % of Total Cost Gains Losses Credit Losses Value % of Total
189,939 6,918 18,145 — 178,712 80.8 % 195,493 27,963 595 — 222,861 80.5 %
39,388 534 5,212 — 34,710 15.7 % 38,830 5,254 148 — 43,936 15.9 %
229,327 7,452 23,357 — 213,422 96.5 % 234,323 33,217 743 — 266,797 96.4 %
5,416 66 625 — 4,857 2.2 % 6,313 429 196 — 6,546 2.4 %
2,362 39 287 1 2,113 1.0 % 2,642 88 66 1 2,663 0.9 %
614 10 141 8 475 0.2 % 620 45 14 3 648 0.2 %
318 9 63 25 239 0.1 % 249 14 19 30 214 0.1 %
8,710 124 1,116 34 7,684 3.5 % 9,824 576 295 34 10,071 3.6 %
238,037 7,576 24,473 34 221,106 100.0 % 244,147 33,793 1,038 34 276,868 100.0 %
16,111 126 2,145 — 14,092 25.2 % 12,433 941 71 — 13,303 23.5 %
36,773 406 4,307 — 32,872 58.9 % 31,607 2,029 260 — 33,376 58.9 %
52,884 532 6,452 — 46,964 84.1 % 44,040 2,970 331 — 46,679 82.4 %
5,522 38 538 — 5,022 9.0 % 5,966 287 39 — 6,214 11.0 %
2,654 11 148 — 2,517 4.5 % 2,833 106 74 8 2,857 5.0 %
1,307 7 117 16 1,181 2.1 % 769 23 33 24 735 1.3 %
160 22 1 51 130 0.3 % 185 19 1 28 175 0.3 %
9,643 78 804 67 8,850 15.9 % 9,753 435 147 60 9,981 17.6 %
62,527 610 7,256 67 55,814 100.0 % 53,793 3,405 478 60 56,660 100.0 %
(1) 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. On an amortized cost basis, net of allowance, as of December 31, 2021, includes 1,324 million (fair value, 1,594 million) and 101 million (fair value, 110 million) of public and private fixed maturities, respectively, classified as “1” highest quality and 89 million (fair value, 99 million) and 0 million (fair value, 0 million) of public and private fixed maturities, respectively, classified as “2” high quality securities based on the NAIC designations.
(2) Other invested assets consist of investments in limited partnerships and limited liability companies (“LPs/LLCs”), investment real estate held through direct ownership, derivative instruments and other miscellaneous investments.
(3) Excludes (i) assets of our investment management operations, including assets managed for third parties, (ii) derivative operations and (iii) those assets classified as "Separate account assets" on our balance sheet. Also excludes assets "held-for-sale" of 40,669 million as of December 31, 2021.
(4) Includes invested assets of our investment management and derivative operations. Excludes assets of our investment management operations that are managed for third parties and those assets classified as “Separate account assets” on our balance sheet.
(5) Excludes fixed maturity securities classified as trading.
(6) Reflects equivalent ratings for investments of the international operations. Includes, as of December 31, 2022 and 2021, 422 securities with amortized cost of 4,836 million (fair value 4,610 million) and 617 securities with amortized cost of 4,547 million (fair value 4,596 million), respectively, that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

All values are in US Dollars.

Page 32

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
INVESTMENT PORTFOLIO COMPOSITION - JAPANESE INSURANCE OPERATIONS AND EXCLUDING JAPANESE INSURANCE OPERATIONS (1)
(in millions)
December 31, 2022 December 31, 2021
Amount % of Total Amount % of Total
Japanese Insurance Operations (2):
112,013 68.4 % 146,600 72.2 %
1,229 0.7 % 1,413 0.7 %
19,268 11.8 % 21,079 10.4 %
67 0.0 % 101 0.1 %
612 0.4 % 839 0.4 %
2,844 1.7 % 3,328 1.6 %
1,806 1.1 % 2,187 1.1 %
18,080 11.0 % 19,969 9.8 %
2,607 1.6 % 2,726 1.3 %
5,272 3.2 % 4,203 2.1 %
100 0.1 % 692 0.3 %
163,898 100.0 % 203,137 100.0 %
December 31, 2022 December 31, 2021
Amount % of Total Amount % of Total
Excluding Japanese Insurance Operations (2):
109,093 54.8 % 130,268 58.5 %
— 0.0 % — 0.0 %
36,546 18.3 % 35,581 16.0 %
— 0.0 % — 0.0 %
4,226 2.1 % 6,634 3.0 %
— 0.0 % 30 0.0 %
2,865 1.4 % 3,400 1.6 %
30,602 15.4 % 29,177 13.1 %
3,802 1.9 % 3,845 1.7 %
8,005 4.0 % 8,282 3.7 %
4,136 2.1 % 5,351 2.4 %
199,275 100.0 % 222,568 100.0 %
__________
(1) Excludes Closed Block division.
(2) Excludes assets classified as "Separate account assets" on our balance sheet.
(3) Other invested assets consist of investments in LPs/LLCs, investment real estate held through direct ownership, derivative instruments and other miscellaneous investments.
(4) Excludes assets "held-for-sale" of 40,669 million as of December 31, 2021.

All values are in US Dollars.

Page 33

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
INVESTMENT RESULTS (1)
(in millions)
Three Months Ended December 31
2022 2021
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (5) Amount Yield (5) Amount
General Account (2)
Fixed maturities (3) 3.97 % 2,873 (185) 3.73 % 2,773 94
Equity securities 4.17 % 48 — 3.62 % 48 —
Commercial mortgage and other loans 3.82 % 458 (47) 4.08 % 512 (2)
Policy loans 4.40 % 69 — 4.47 % 72 —
Short-term investments and cash equivalents 4.63 % 169 — 0.45 % 14 1
Gross investment income before investment expenses 3.89 % 3,617 (232) 3.68 % 3,419 93
Investment expenses -0.12 % (192) — -0.15 % (128) —
Subtotal 3.77 % 3,425 (232) 3.53 % 3,291 93
Other investments (3) 153 (804) 488 455
Investment results of other entities and operations (4) 64 (17) 222 28
Less: investment income related to adjusted operating income reconciling items (159) (384)
Total 3,483 (1,053) 3,617 576
Twelve Months Ended December 31
2022 2021
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (5) Amount Yield (5) Amount
General Account (2)
Fixed maturities (3) 3.71 % 10,867 (1,086) 3.72 % 11,005 1,464
Equity securities 2.59 % 123 — 2.32 % 118 —
Commercial mortgage and other loans 3.73 % 1,807 (137) 4.00 % 1,966 81
Policy loans 4.52 % 283 — 4.65 % 310 —
Short-term investments and cash equivalents 2.75 % 371 (5) 0.48 % 59 (1)
Gross investment income before investment expenses 3.68 % 13,451 (1,228) 3.65 % 13,458 1,544
Investment expenses -0.14 % (631) — -0.15 % (495) —
Subtotal 3.54 % 12,820 (1,228) 3.50 % 12,963 1,544
Other investments (3) 952 (2,110) 1,870 1,569
Investment results of other entities and operations (4) 289 239 954 104
Less: investment income related to adjusted operating income reconciling items (877) (1,627)
Total 13,184 (3,099) 14,160 3,217
__________
(1) Excludes Closed Block division.
(2) Excludes commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders, assets of our investment management operations, including assets that are managed for third parties and assets classified as "Separate account assets" on our balance sheet.
(3) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.
(4) Includes invested income of commercial loans, assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment management operations.
(5) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. The denominator in the yield percentage includes assets "held-for-sale" as of March 31, 2022 and December 31, 2021. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.

Page 34

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS
(in millions)
Three Months Ended December 31
2022 2021
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (1) Amount Yield (1) Amount
Japanese Insurance Operations:
Fixed maturities (2) 2.80 % 968 (1) 2.68 % 982 83
Equity securities 6.05 % 26 — 5.38 % 30 —
Commercial mortgage and other loans 3.66 % 165 (10) 4.12 % 204 (2)
Policy loans 3.85 % 24 — 3.92 % 27 —
Short-term investments and cash equivalents 4.08 % 13 (1) 0.56 % 1 —
Gross investment income before investment expenses 2.96 % 1,196 (12) 2.89 % 1,244 81
Investment expenses -0.13 % (84) — -0.14 % (61) —
Subtotal 2.83 % 1,112 (12) 2.75 % 1,183 81
Other investments (2) 66 (87) 109 85
Total 1,178 (99) 1,292 166
Twelve Months Ended December 31
2022 2021
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (1) Amount Yield (1) Amount
Japanese Insurance Operations:
Fixed maturities (2) 2.75 % 3,831 232 2.72 % 3,921 271
Equity securities 3.59 % 67 — 3.52 % 76 —
Commercial mortgage and other loans 3.67 % 686 (22) 3.92 % 768 33
Policy loans 3.90 % 99 — 4.05 % 114 —
Short-term investments and cash equivalents 3.75 % 31 (3) 0.48 % 4 —
Gross investment income before investment expenses 2.89 % 4,714 207 2.88 % 4,883 304
Investment expenses -0.14 % (281) — -0.14 % (241) —
Subtotal 2.75 % 4,433 207 2.74 % 4,642 304
Other investments (2) 208 (2,164) 457 (391)
Total 4,641 (1,957) 5,099 (87)
__________
(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 35

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS (1)
(in millions)
Three Months Ended December 31
2022 2021
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (4) Amount Yield (4) Amount
Excluding Japanese Insurance Operations (2):
Fixed maturities (3) 5.04 % 1,905 (184) 4.74 % 1,791 11
Equity securities 3.10 % 22 — 2.37 % 18 —
Commercial mortgage and other loans 3.91 % 293 (37) 4.05 % 308 —
Policy loans 4.77 % 45 — 4.87 % 45 —
Short-term investments and cash equivalents 4.54 % 156 1 0.44 % 13 1
Gross investment income before investment expenses 4.61 % 2,421 (220) 4.35 % 2,175 12
Investment expenses -0.10 % (108) — -0.16 % (67) —
Subtotal 4.51 % 2,313 (220) 4.19 % 2,108 12
Other investments (3) 87 (717) 379 370
Total 2,400 (937) 2,487 382
Twelve Months Ended December 31
2022 2021
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (4) Amount Yield (4) Amount
Excluding Japanese Insurance Operations (2):
Fixed maturities (3) 4.56 % 7,036 (1,318) 4.68 % 7,084 1,193
Equity securities 1.95 % 56 — 1.44 % 42 —
Commercial mortgage and other loans 3.77 % 1,121 (115) 4.05 % 1,198 48
Policy loans 4.94 % 184 — 5.09 % 196 —
Short-term investments and cash equivalents 2.70 % 340 (2) 0.48 % 55 (1)
Gross investment income before investment expenses 4.31 % 8,737 (1,435) 4.30 % 8,575 1,240
Investment expenses -0.14 % (350) — -0.15 % (254) —
Subtotal 4.17 % 8,387 (1,435) 4.15 % 8,321 1,240
Other investments (3) 744 54 1,413 1,960
Total 9,131 (1,381) 9,734 3,200
__________
(1) Excludes Closed Block division.
(2) Excludes commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders, assets of our investment management operations, including assets that are managed for third parties and assets classified as "Separate account assets" on our balance sheet.
(3) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.
(4) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. The denominator in the yield percentage includes assets "held-for-sale" as of March 31, 2022 and December 31, 2021. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.

Page 36

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended December 31, 2021
Reconciling Items Reconciling Items
Total realized investment gains (losses), net, and related charges and adjustments Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums — — 450 113 — — 6,708 6,723 — — 476 113 — — 7,312
Policy charges and fee income 14 (11) — — — — 1,331 1,512 (70) (16) — 58 — — 1,484
Net investment income (5) — 468 164 — — 4,110 3,617 (14) — 635 398 — — 4,636
Realized investment gains (losses), net (1,284) 128 (339) (27) — — (1,392) 185 98 193 302 100 — — 878
Asset management fees, commissions and other income 208 — 173 655 (22) — 2,577 1,707 159 — 235 38 (25) — 2,114
Total revenues (1,067) 117 752 905 (22) — 13,334 13,744 173 177 1,648 707 (25) — 16,424
Benefits and Expenses:
Insurance and annuity benefits 1 14 679 849 — — 8,506 7,626 (12) (142) 1,486 209 — — 9,167
Interest credited to policyholders' account balances (19) (5) 30 53 — — 779 667 75 (22) 31 (28) — — 723
Interest expense — — 5 (2) — — 420 362 — — — — — — 362
Deferral of acquisition costs — — — (1) — — (562) (599) — — — — — — (599)
Amortization of acquisition costs (21) (15) 6 — — — 516 510 (6) (78) 6 3 — — 435
Goodwill impairment — — — — — 903 903 — — — — — — 1,060 1,060
General and administrative expenses (1) — 76 24 (1) 9 3,485 3,593 — (1) 77 239 (37) 17 3,888
Total benefits and expenses (40) (6) 796 923 (1) 912 14,047 12,159 57 (243) 1,600 423 (37) 1,077 15,036
Twelve Months Ended December 31, 2021
Reconciling Items Reconciling Items
Total realized investment gains (losses), net, and related charges and adjustments Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums — — 1,699 517 — — 38,019 32,347 — — 1,789 691 — — 34,827
Policy charges and fee income (160) (2) — 60 — — 5,574 5,986 (248) (45) — 251 — — 5,944
Net investment income (23) — 1,976 900 — — 16,037 14,160 (40) — 2,500 1,667 — — 18,287
Realized investment gains (losses), net (4,125) 585 (270) (329) — — (3,369) 577 2,082 380 807 178 — — 4,024
Asset management fees, commissions and other income (1,713) — (448) (303) (5) — 3,789 6,711 271 — 851 116 (97) — 7,852
Total revenues (6,021) 583 2,957 845 (5) — 60,050 59,781 2,065 335 5,947 2,903 (97) — 70,934
Benefits and expenses:
Insurance and annuity benefits 289 (259) 2,551 899 — — 43,685 35,368 (165) (200) 5,351 978 — — 41,332
Interest credited to policyholders' account balances (71) 28 121 (434) — — 2,316 2,683 450 (45) 124 270 — — 3,482
Interest expense — — 9 (2) — — 1,596 1,474 — — — 4 — — 1,478
Deferral of acquisition costs — — — (3) — — (2,198) (2,544) — — — (4) — — (2,548)
Amortization of acquisition costs 183 37 19 5 — — 2,429 2,080 153 (163) 21 6 — — 2,097
Goodwill impairment — — — — — 903 903 — — — — — — 1,060 1,060
General and administrative expenses (221) (4) 289 371 39 36 13,095 13,419 — (7) 311 933 (56) 52 14,652
Total benefits and expenses 180 (198) 2,989 836 39 939 61,826 52,480 438 (415) 5,807 2,187 (56) 1,112 61,553
__________
(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 and year ended December 31, 2022, and 1,060 million pre-tax and 837 million after-tax in the fourth quarter and year ended December 31, 2021. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of the associated contingent consideration.

All values are in US Dollars.

Page 37

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended March 31, 2022 Three Months Ended June 30, 2022
Reconciling Items Reconciling Items
Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums 7,300 — — 409 243 — — 7,952 6,634 — — 443 35 — — 7,112
Policy charges and fee income 1,454 (78) 23 — 60 — — 1,459 1,615 (57) (7) — — — — 1,551
Net investment income 3,413 (10) — 554 401 — — 4,358 3,241 (4) — 520 181 — — 3,938
Realized investment gains (losses), net 146 (528) 53 100 (87) — — (316) 268 (1,440) 279 (60) (194) — — (1,147)
Asset management fees, commissions and other income 1,344 (523) — (98) (951) (10) — (238) 2,016 (797) — (374) 679 43 — 1,567
Total revenues 13,657 (1,139) 76 965 (334) (10) — 13,215 13,774 (2,298) 272 529 701 43 — 13,021
Benefits and expenses:
Insurance and annuity benefits 8,035 (41) (41) 838 312 — — 9,103 8,694 334 (202) 411 168 — — 9,405
Interest credited to policyholders' account balances 655 47 31 30 (594) — — 169 663 (83) — 31 54 — — 665
Interest expense 364 — — — 1 — — 365 401 — — — — — — 401
Deferral of acquisition costs (581) — — — — — — (581) (522) — — — (1) — — (523)
Amortization of acquisition costs 535 213 91 5 3 — — 847 605 23 (52) 4 1 — — 581
General and administrative expenses 3,083 2 1 69 243 12 17 3,427 3,061 (222) (5) 70 77 22 — 3,003
Total benefits and expenses 12,091 221 82 942 (35) 12 17 13,330 12,902 52 (259) 516 299 22 — 13,532
Three Months Ended September 30, 2022
Reconciling Items
Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums 15,724 — — 397 126 — — 16,247
Policy charges and fee income 1,279 (39) (7) — — — — 1,233
Net investment income 3,047 (4) — 434 154 — — 3,631
Realized investment gains (losses), net 226 (873) 125 29 (21) — — (514)
Asset management fees, commissions and other income 1,335 (601) — (149) (686) (16) — (117)
Total revenues 21,611 (1,517) 118 711 (427) (16) — 20,480
Benefits and expenses:
Insurance and annuity benefits 16,513 (5) (30) 623 (430) — — 16,671
Interest credited to policyholders' account balances 634 (16) 2 30 53 — — 703
Interest expense 407 — — 4 (1) — — 410
Deferral of acquisition costs (531) — — — (1) — — (532)
Amortization of acquisition costs 499 (32) 13 4 1 — — 485
General and administrative expenses 3,063 — — 74 27 6 10 3,180
Total benefits and expenses 20,585 (53) (15) 735 (351) 6 10 20,917
__________
(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, as well as changes in the fair value of the associated contingent consideration, and goodwill impairments.

Page 38

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
KEY DEFINITIONS AND FORMULAS
1. Adjusted operating income before income taxes:
Adjusted operating income is a non-GAAP measure used by the Company to evaluate segment performance and to allocate resources. Adjusted operating income excludes “Realized investment gains (losses), net,” as adjusted, and related charges and adjustments. A significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as our tax and capital profile.
Realized investment gains (losses) within certain businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset-liability management program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are designated as trading. Adjusted operating income also excludes investment gains and losses on assets supporting experience-rated contractholder liabilities and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to ultimately accrue to contractholders. Additionally, adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income.
Adjusted Operating Income excludes market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which we believe enhances the understanding of underlying performance trends. Adjusted operating income also excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations and discontinued operations and earnings attributable to noncontrolling interests, each of which is presented as a separate component of net income under GAAP. Additionally, adjusted operating income excludes other items, such as certain components of the consideration for acquisitions, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of contingent consideration, and goodwill impairments. Earnings attributable to noncontrolling interests is presented as a separate component of net income under GAAP and excluded from adjusted operating income.
Adjusted operating income does not equate to "Net income" as determined in accordance with U.S. GAAP. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described above.
2. After-tax adjusted operating income:
Adjusted operating income before taxes, as defined above, less the income tax effect applicable to adjusted operating income before taxes. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments.
3. Annualized New Business Premiums:
Premiums from new sales that are expected to be collected over a one year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers' Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Excess (unscheduled) and single premium business for the company's domestic individual life and international operations are included in annualized new business premiums based on a 10% credit. Amounts ascribed to Gibraltar Life Consultants include production by captive agents associated with 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:
Equity attributed to Prudential Financial, Inc. divided by the number of common shares outstanding at end of period, on a diluted basis. Book value per share excluding Accumulated Other Comprehensive Income (Loss) (“AOCI”) and adjusted to remove amount included for remeasurement of foreign currency exchange rate is a non-GAAP measure. These items are excluded in order to highlight the book value attributable to our core business operations. This non-GAAP measure augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations, separate from the portion that is affected by capital and currency market conditions, and by isolating the accounting impact associated with insurance liabilities that are generally not marked to market along with the supporting investments that are marked to market through AOCI under GAAP. However, book value per share excluding AOCI and adjusted to remove the amount included for foreign currency exchange rate remeasurement is not a substitute for book value per share including AOCI determined in accordance with GAAP, and the adjustments made to derive the measure are important to an understanding of our overall financial position.

Page 39

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2022
KEY DEFINITIONS AND FORMULAS
7. Borrowings - Capital Debt:
Debt utilized to meet the capital requirements of our business.
8. Borrowings - Operating Debt:
Debt utilized for business funding to meet specific purposes, which may include activities associated with our PGIM and Assurance IQ businesses. Operating debt also consists of debt issued to finance specific portfolios of investment assets, the proceeds from which will service the debt. Specifically, this includes assets supporting reserve requirements under Regulation XXX and Guideline AXXX, as well as funding for institutional and insurance company portfolio cash flow timing differences.
9. Divested and Run-off Businesses:
Businesses that have been or will be sold or exited, including businesses that have been placed in wind down status that do not qualify for “discontinued operations” accounting treatment under U.S. GAAP.
10. Earned Premiums:
The portion of a premium, net of any amount ceded, that represents coverage already provided or that belongs to the insurer based on the part of the policy period that has passed.
11. General Account:
Includes assets of the insurance companies for which the Company bears the investment risk. These generally include assets supporting "Future Policy Benefits" and "Policyholders' Account Balances". General account assets also include assets of the parent company, Prudential Financial, Inc. and excludes assets recognized for statutory purposes that are specifically allocated to a separate account.
12. Gibraltar Life:
Includes results from 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
Fourth Quarter 2022
KEY DEFINITIONS AND FORMULAS
20. Non-recourse and Limited-recourse Debt:
Limited and non-recourse borrowing is where the debt holder is only entitled to collect against the assets pledged to the debt as collateral or has very limited rights to collect against other assets.
21. Other Related Revenues:
Other related revenues include incentive fees, transaction fees, seed and co-investment results, and commercial mortgage revenues.
22. PGIM Asset Under Management Classifications:
Public Equity - Represents stock ownership interest in a corporation or partnership (excluding hedge funds) or real estate investment trust.
Public Fixed Income - Represents debt instruments that pay fixed interest and usually have a maturity (excluding mortgages).
Real Estate - Includes direct real estate equity and real estate mortgages.
Private Credit and Other Alternatives - Includes private credit, private equity, hedge funds and other alternative strategies.
Multi-Asset - Includes funds or products that invest in more than one asset class, balancing equity and fixed income funds and target date funds.
23. Policy Persistency - Group Insurance:
Percentage of the premiums in force at the end of the prior year that are still in force at the end of the period (excluding Servicemembers' Group Life Insurance and Prudential Employee Benefit Plan).
24. Policy Persistency - International Businesses:
13 month persistency represents the average percentage of face amount of policies that are still in force at their 13th policy month. 25 month persistency represents the average percentage of face amount of policies that are still in force at their 25th policy month.
25. Prudential Advisors:
Captive financial professionals in our insurance operations in the United States.
26. Prudential Advisor Productivity:
Commissions on new sales of all products by Prudential Advisors financial professionals under contract for the entire period, divided by the number of those financial professionals. Excludes commissions on new sales by financial professionals hired or departed during the period. For interim reporting periods, the productivity measures are annualized.
27. Prudential Financial, Inc. Equity:
Amount of capital assigned to each of the Company's segments for purposes of measuring segment adjusted operating income before income taxes, established at a level which management considers necessary to support the segment's risks. Represents all of Prudential Financial, Inc. equity that is not attributable to noncontrolling interests.
28. Separate Accounts:
Assets of our insurance companies allocated under certain policies and contracts that are segregated from the general account and other separate accounts. The policyholder or contractholder predominantly bears the risk of investments held in a separate account.
29. Wrap-Fee Products:
Investment products generating asset-based fees in which the funds of the customer are generally invested in other investment products such as mutual funds.

Page 41

Table of Contents

Prudential Financial, Inc. image28.jpg
Quarterly Financial Supplement
Fourth Quarter 2022
RATINGS AND INVESTOR INFORMATION
FINANCIAL STRENGTH RATINGS
as of February 7, 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 February 7, 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)