Equibles

8-K

PRUDENTIAL FINANCIAL INC (PRU)

8-K 2024-02-06 For: 2024-02-06
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 6, 2024

___________________________

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 2023 results.

Item 7.01    Regulation FD Disclosure.

A. Quarterly Financial Supplement. The Company furnishes herewith, as Exhibit 99.2, the Quarterly Financial Supplement for fourth quarter 2023.
B. Conference Call and Related Materials. Members of the Company's senior management will hold a conference call on Wednesday, February 7, 2024 at 11:00 A.M. ET, to discuss the Company's fourth quarter 2023 results. Related materials are available on the Company's Investor Relations website at www.investor.prudential.com.
C. Dividend Declaration. Today the Company announced the declaration of a quarterly dividend of $1.30 per share of Common Stock, payable on March 14, 2024, to shareholders of record as of February 20, 2024.

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

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
99.1 News release of Prudential Financial, Inc. dated February 6, 2024, announcing fourth quarter 2023 results (furnished and not filed).
99.2 Quarterly Financial Supplement for Prudential Financial, Inc. for fourth quarter 2023 (furnished and not filed).
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

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

Date: February 6, 2024

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

earningsreleaseheader1a09a.jpg

February 6, 2024

Prudential Financial, Inc. Announces

2023 Results(1)

•2023 net income attributable to Prudential Financial, Inc. of $2.488 billion or $6.74 per Common share versus net loss of $1.647 billion or $4.49 per share for 2022.

•2023 after-tax adjusted operating income of $4.286 billion or $11.62 per Common share versus $3.914 billion or $10.31 per share for 2022.

•Fourth quarter 2023 net income attributable to Prudential Financial, Inc. of $1.317 billion or $3.61 per Common share versus net loss of $52 million or $0.16 per share for the year-ago quarter.

•Fourth quarter 2023 after-tax adjusted operating income of $943 million or $2.58 per Common share versus $932 million or $2.49 per share for the year-ago quarter.

•Book value per Common share of $76.77 versus $82.48 per share for the year-ago quarter; adjusted book value per Common share of $96.64 versus $94.69 per share for the year-ago quarter.

•Parent company highly liquid assets(2) of $4.1 billion versus $4.5 billion for the year-ago quarter.

•Assets under management(3) of $1.450 trillion versus $1.377 trillion for the year-ago quarter.

•Capital returned to shareholders of $708 million in the fourth quarter, including $250 million of share repurchases and $458 million of dividends, versus $824 million in the year-ago quarter. Dividends paid in the fourth quarter were $1.25 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, 2024 through December 31, 2024. In addition, the Company declared a quarterly dividend of $1.30 per share of Common Stock, payable on March 14, 2024, to shareholders of record as of February 20, 2024. This represents an increase of 4% over the prior year dividend level, the 16th consecutive year the dividend has been increased.

Charles Lowrey, Chairman and CEO, commented on results:

“Our 2023 results reflect continued strong sales across our insurance and retirement businesses and solid underlying earnings growth.

We are proud of the significant progress we made to become a higher growth, more capital efficient, and more nimble company.

In 2023, we successfully reduced our market sensitivity and increased capital flexibility through multiple strategic transactions. We reached more people around the world with our leading life, retirement, and investment products through expanded distribution and enhanced technology. We launched Prismic, a life and annuity reinsurance company, to drive future growth and unlock value for all stakeholders. And finally, we adopted a new operating model to ensure we meet our customers’ evolving needs while driving efficiency to maintain our competitive market position.

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Prudential Financial, Inc. Fourth Quarter 2023 Earnings Release Page 2

Looking ahead, we are confident that our strategy and mutually reinforcing business system position us well to deliver long-term, sustainable growth, and to continue to be a global leader in expanding access to investing, insurance, and retirement security.”

NEWARK, N.J. – Prudential Financial, Inc. (NYSE: PRU) today reported fourth quarter and year-end 2023 results. Net income attributable to Prudential Financial, Inc. was $1.317 billion ($3.61 per Common share) for the fourth quarter of 2023, compared to a net loss of $52 million ($0.16 per Common share) for the fourth quarter of 2022. After-tax adjusted operating income was $943 million ($2.58 per Common share) for the fourth quarter of 2023, compared to $932 million ($2.49 per Common share) for the fourth quarter of 2022.

Net income attributable to Prudential Financial, Inc. was $2.488 billion ($6.74 per Common share) for 2023, compared to net loss of $1.647 billion ($4.49 per Common share) for 2022. After-tax adjusted operating income was $4.286 billion ($11.62 per Common share) for 2023, compared to $3.914 billion ($10.31 per Common share) for 2022.

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

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 $172 million for the fourth quarter of 2023, compared to $230 million in the year-ago quarter. This decrease primarily reflects higher expenses and lower other related revenues, driven by lower incentive fees and agency income, partially offset by higher asset management fees.

PGIM assets under management of $1.298 trillion were up 6% from the year-ago quarter, primarily resulting from equity market appreciation, partially offset by net outflows. Third-party net outflows of $13.5 billion in the current quarter reflect retail outflows of $7.2 billion, driven by equity sub-advised mandates and fixed income outflows, and institutional outflows of $6.3 billion, including a large redemption from an equity mandate and outflows from public fixed income.

U.S. Businesses

U.S. Businesses reported adjusted operating income of $988 million for the fourth quarter of 2023, compared to $710 million in the year-ago quarter. This increase primarily reflects higher net investment spread results and lower expenses, partially offset by lower net fee income.

Retirement Strategies, consisting of Institutional Retirement Strategies and Individual Retirement Strategies, reported adjusted operating income of $914 million for the fourth quarter of 2023, compared to $747 million in the year-ago quarter.

Institutional Retirement Strategies:

•Reported adjusted operating income of $432 million in the current quarter, compared to $332 million in the year-ago quarter. This increase primarily reflects higher net investment spread results.

•Account values of $258 billion increased 3% from the year-ago quarter, reflecting the benefits of business growth, favorable foreign exchange impacts, and market appreciation, partially offset by the reinsurance of a block of structured settlements. Sales in the current quarter of $14.3 billion reflect $13.0 billion of international reinsurance transactions, including a $9.2 billion longevity risk transfer transaction in the Netherlands.

Individual Retirement Strategies:

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Prudential Financial, Inc. Fourth Quarter 2023 Earnings Release Page 3

•Reported adjusted operating income of $482 million in the current quarter, compared to $415 million in the year-ago quarter. This increase primarily reflects higher net investment spread results and lower expenses, partially offset by lower fee income, net of distribution expenses and other associated costs.

•Account values of $118 billion were down 1% from the year-ago quarter, reflecting the reinsurance of a block of legacy variable annuities and net outflows, partially offset by market appreciation. Sales of $2.1 billion in the current quarter increased 41% from the year-ago quarter, reflecting continued momentum from our FlexGuard products and increased sales of fixed annuity products.

Group Insurance:

•Reported adjusted operating income of $66 million in the current quarter, compared to $15 million in the year-ago quarter. This increase primarily reflects more favorable underwriting results in both group life and disability and lower 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 $8 million in the current quarter, compared to a loss of $52 million in the year-ago quarter. This increase reflects higher net investment spread results and lower expenses, partially offset by less favorable underwriting results.

•Sales of $205 million in the current quarter increased 33% from the year-ago quarter, driven by Variable Life and Term sales, reflecting our pivot to less market sensitive products.

International Businesses

International Businesses, consisting of Life Planner and Gibraltar Life & Other, reported adjusted operating income of $748 million for the fourth quarter of 2023, compared to $814 million in the year-ago quarter. This decrease primarily reflects less favorable underwriting results, including unfavorable policyholder behavior, partially offset by lower expenses.

Life Planner:

•Reported adjusted operating income of $464 million in the current quarter, compared to $493 million in the year-ago quarter. This decrease reflects less favorable underwriting results, including unfavorable policyholder behavior, partially offset by higher net investment spread results.

•Constant dollar basis sales(4) of $306 million in the current quarter increased 21% from the year-ago quarter, driven by higher sales in both Japan and Brazil.

Gibraltar Life & Other:

•Reported adjusted operating income of $284 million in the current quarter, compared to $321 million in the year-ago quarter. This decrease primarily reflects less favorable underwriting results, including unfavorable policyholder behavior, and lower net investment spread results, partially offset by lower expenses.

•Constant dollar basis sales(4) of $320 million in the current quarter increased 27% from the year-ago quarter, driven by growth in the Independent Agency and Bank channels.

Corporate & Other

Corporate & Other reported a loss, on an adjusted operating income basis, of $656 million for the fourth quarter of 2023, compared to a loss of $525 million in the year-ago quarter. This higher loss primarily reflects higher expenses, driven by a $200 million restructuring charge in the current quarter.

NET INCOME

Net Income in the current quarter included $314 million of pre-tax net realized investment gains and related charges and adjustments, largely reflecting the impacts of lower interest rates, and includes $21 million of pre-tax net impairment and credit-related losses, $216 million of pre-tax gains related to net change in value of market risk benefits, $174 million of pre-tax earnings from divested and run-off businesses, a goodwill impairment charge of

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Prudential Financial, Inc. Fourth Quarter 2023 Earnings Release Page 4

$177 million pre-tax, reflecting the decline in the fair value of Assurance IQ, and $78 million of pre-tax losses related to market experience updates.

Net loss for the year-ago quarter included $924 million of pre-tax net realized investment losses and related charges and adjustments, largely reflecting the impacts of rising interest rates, and includes $42 million of pre-tax net impairment and credit-related losses, a goodwill impairment charge of $903 million pre-tax, reflecting the decline in the fair value of Assurance IQ, $69 million of pre-tax losses from divested and run-off businesses, $629 million of pre-tax gains related to net change in value of market risk benefits, and $25 million of pre-tax gains related to market experience updates.

EARNINGS CONFERENCE CALL

Members of Prudential’s senior management will host a conference call on Wednesday, February 7, 2024, 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 also be available on the Investor Relations website through February 21. To access a replay via phone starting at 3:00 p.m. ET on February 7 through February 21, dial (877) 660-6853 (domestic) or (201) 612-7415 (international) and use replay code 13742767.

prurocklogoa04a.jpg

FORWARD-LOOKING STATEMENTS

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

NON-GAAP MEASURES

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

We believe that our use of these non-GAAP measures helps investors understand and evaluate the Company’s performance and financial position. The presentation of adjusted operating income as we measure it for management purposes enhances the understanding of the results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described below. Adjusted book value augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations separate from the portion that is affected by capital and currency market conditions, and by isolating the accounting impact associated with insurance liabilities that are generally not marked to market and the supporting investments that are marked to market through accumulated other comprehensive income under GAAP. However, these non-GAAP measures are not substitutes for income and equity determined in accordance with GAAP, and the adjustments made to derive these measures are important to an understanding of our overall results of operations and financial position. The schedules accompanying this release provide reconciliations of non-GAAP measures with the corresponding measures calculated using GAAP. Additional historic information relating to our financial performance is located on our website at investor.prudential.com.

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Prudential Financial, Inc. Fourth Quarter 2023 Earnings Release Page 5

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

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

Adjusted operating income excludes “Change in value of market risk benefits, net of related hedging gains (losses)”, which reflects the impact from changes in current market conditions, and market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which we believe enhances the understanding of underlying performance trends. Adjusted operating income also excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations, and discontinued operations and earnings attributable to noncontrolling interests, each of which is presented as a separate component of net income under GAAP. Additionally, adjusted operating income excludes other items, such as certain components of the consideration for acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments. Earnings attributable to noncontrolling interests is presented as a separate component of net income under GAAP and excluded from adjusted operating income. 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), the cumulative change in fair value of funds withheld embedded derivatives, and the cumulative effect of foreign currency exchange rate remeasurements and currency translation adjustments corresponding to realized investment gains and losses. These items are excluded in order to highlight the book value attributable to our core business operations separate from the portion attributable to external and potentially volatile capital and currency market conditions.

FOOTNOTES

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

(2)Highly liquid assets predominantly include cash, short-term investments, U.S. Treasury securities, obligations of other U.S. government authorities and agencies, and/or foreign government bonds. For more information about

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Prudential Financial, Inc. Fourth Quarter 2023 Earnings Release Page 6

highly liquid assets, see the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

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

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

Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.4 trillion in assets under management as of December 31, 2023, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise, and innovation for nearly 150 years. For more information, please visit news.prudential.com.

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

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Financial Highlights
(in millions, unaudited)
Three Months Ended Year Ended
December 31, December 31,
2023 2022 2023 2022
Adjusted operating income (loss) before income taxes (1):
PGIM $ 172 $ 230 $ 713 $ 843
U.S. Businesses 988 710 3,792 2,711
International Businesses 748 814 3,183 3,205
Corporate and Other (656) (525) (2,172) (1,677)
Total adjusted operating income before income taxes $ 1,252 $ 1,229 $ 5,516 $ 5,082
Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments $ 314 $ (924) $ (2,573) $ (6,326)
Change in value of market risk benefits, net of related hedging gains (losses) 216 629 56 (443)
Market experience updates (78) 25 110 642
Divested and Run-off Businesses:
Closed Block division (50) (40) (100) (18)
Other Divested and Run-off Businesses 224 (29) 349 146
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (26) (18) (68) (36)
Other adjustments (2) (190) (912) (218) (939)
Total reconciling items, before income taxes 410 (1,269) (2,444) (6,974)
Income (loss) before income taxes and equity in earnings of operating joint ventures $ 1,662 $ (40) $ 3,072 $ (1,892)
Income Statement Data:
Net income (loss) attributable to Prudential Financial, Inc. $ 1,317 $ (52) $ 2,488 $ (1,647)
Income (loss) attributable to noncontrolling interests 9 8 20 (28)
Net income (loss) 1,326 (44) 2,508 (1,675)
Less: Earnings attributable to noncontrolling interests 9 8 20 (28)
Income (loss) attributable to Prudential Financial, Inc. 1,317 (52) 2,488 (1,647)
Less: Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests 14 (17) 29 (34)
Income (loss) (after-tax) before equity in earnings of operating joint ventures 1,303 (35) 2,459 (1,613)
Less: Total reconciling items, before income taxes 410 (1,269) (2,444) (6,974)
Less: Income taxes, not applicable to adjusted operating income 50 (302) (617) (1,447)
Total reconciling items, after income taxes 360 (967) (1,827) (5,527)
After-tax adjusted operating income (1) 943 932 4,286 3,914
Income taxes, applicable to adjusted operating income 309 297 1,230 1,168
Adjusted operating income before income taxes (1) $ 1,252 $ 1,229 $ 5,516 $ 5,082
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,
2023 2022 2023 2022
Earnings per share of Common Stock:
Net income (loss) attributable to Prudential Financial, Inc. $ 3.61 $ (0.16) $ 6.74 $ (4.49)
Less: Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments 0.87 (2.50) (7.06) (16.88)
Change in value of market risk benefits, net of related hedging gains (losses) 0.60 1.70 0.15 (1.18)
Market experience updates (0.22) 0.07 0.30 1.71
Divested and Run-off Businesses:
Closed Block division (0.14) (0.11) (0.27) (0.05)
Other Divested and Run-off Businesses 0.62 (0.08) 0.96 0.39
Difference in earnings allocated to participating unvested share-based payment awards (0.01) 0.02 0.05 0.07
Other adjustments (2) (0.53) (2.47) (0.60) (2.51)
Total reconciling items, before income taxes 1.19 (3.37) (6.47) (18.45)
Less: Income taxes, not applicable to adjusted operating income 0.16 (0.72) (1.59) (3.65)
Total reconciling items, after income taxes 1.03 (2.65) (4.88) (14.80)
After-tax adjusted operating income $ 2.58 $ 2.49 $ 11.62 $ 10.31
Weighted average number of outstanding common shares - basic 360.3 367.6 363.5 372.3
Weighted average number of outstanding common shares - diluted 361.0 369.4 364.6 374.7
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc. $ 1,317 $ (52) $ 2,488 $ (1,647)
Less: Earnings allocated to participating unvested share-based payment awards 14 6 29 25
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation $ 1,303 $ (58) $ 2,459 $ (1,672)
After-tax adjusted operating income (1) $ 943 $ 932 $ 4,286 $ 3,914
Less: Earnings allocated to participating unvested share-based payment awards 10 12 49 52
After-tax adjusted operating income for earnings per share of Common Stock calculation (1) $ 933 $ 920 $ 4,237 $ 3,862
Prudential Financial, Inc. Equity (as of end of period):
GAAP book value (total PFI equity) at end of period $ 27,820 $ 30,593
Less: Accumulated other comprehensive income (AOCI) (6,504) (3,806)
GAAP book value excluding AOCI 34,324 34,399
Less: Cumulative change in fair value of funds withheld embedded derivatives (181) —
Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses) (518) (723)
Adjusted book value $ 35,023 $ 35,122
End of period number of common shares - diluted 362.4 370.9
GAAP book value per common share - diluted 76.77 82.48
GAAP book value excluding AOCI per share - diluted 94.71 92.74
Adjusted book value per common share - diluted 96.64 94.69
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,
2023 2022 2023 2022
PGIM:
PGIM:
Assets Managed by PGIM (in billions, as of end of period):
Institutional customers $ 582.6 $ 549.2
Retail customers 330.3 299.6
General account 385.2 379.6
Total PGIM $ 1,298.1 $ 1,228.4
Institutional Customers - Assets Under Management (in billions):
Gross additions, excluding money market $ 20.5 $ 13.8 $ 67.7 $ 71.6
Net additions (withdrawals), excluding money market $ (6.3) $ (6.0) $ (23.3) $ 3.0
Retail Customers - Assets Under Management (in billions):
Gross additions, excluding money market $ 14.8 $ 16.5 $ 51.9 $ 66.3
Net withdrawals, excluding money market $ (7.2) $ (5.7) $ (15.1) $ (23.2)
U.S. Businesses:
Retirement Strategies:
Institutional Retirement Strategies:
Gross additions $ 14,287 $ 12,277 $ 28,498 $ 31,773
Net additions $ 8,124 $ 8,029 $ 3,215 $ 15,375
Total account value at end of period, net $ 258,417 $ 251,818
Individual Retirement Strategies:
Actively-Sold Protected Investment and Income Solutions and, Discontinued Traditional VA and Guaranteed Living Benefits:
Gross sales (3) $ 2,102 $ 1,490 $ 7,604 $ 5,964
Sales, net of full surrenders and death benefits $ 234 $ 355 $ 869 $ (88)
Total account value at end of period, net $ 117,911 $ 119,205
Group Insurance:
Annualized New Business Premiums (4):
Group life $ 41 $ 10 $ 296 $ 283
Group disability 19 13 235 196
Total $ 60 $ 23 $ 531 $ 479
Individual Life:
Annualized New Business Premiums (4):
Term life $ 33 $ 22 $ 120 $ 93
Universal life 27 25 81 92
Variable life 145 107 536 424
Total $ 205 $ 154 $ 737 $ 609
International Businesses:
International Businesses:
Annualized New Business Premiums (4)(5):
Actual exchange rate basis $ 598 $ 488 $ 2,087 $ 1,819
Constant exchange rate basis $ 626 $ 505 $ 2,153 $ 1,846
See footnotes on last page.

Page 3

Financial Highlights
(in billions, as of end of period, unaudited)
December 31,
2023 2022
Assets and Assets Under Management and Administration:
Total assets $ 721.1 $ 689.0
Assets under management (at fair market value):
PGIM $ 1,298.1 $ 1,228.4
U.S. Businesses (6) 123.9 124.1
International Businesses 17.9 16.1
Corporate and Other (6) 9.7 8.7
Total assets under management 1,449.6 1,377.3
Assets under administration 181.5 157.4
Total assets under management and administration $ 1,631.1 $ 1,534.7

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 $177 million pre-tax and $140 million after-tax for the three months and year ended December 31, 2023, and $903 million pre-tax and $713 million after-tax for the three months and year ended December 31, 2022. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.
(3) Includes Prudential FlexGuard and FlexGuard Income, Prudential Premier Investment, MyRock, Private Placement Variable Annuity and all fixed annuity products. Excludes discontinued traditional variable annuities and guaranteed living benefits.
(4) Premiums from new sales are expected to be collected over a one-year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers’ Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Excess (unscheduled) and single premium business for the Company’s domestic individual life and international operations are included in annualized new business premiums based on a 10% credit.
(5) Actual amounts reflect the impact of currency fluctuations. Constant amounts reflect foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 110 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.
(6) Prior period amounts have been reclassified to conform to current period presentation.

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Document

Table of Contents

Exhibit 99.2

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

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Table of Contents

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

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
FINANCIAL METRICS SUMMARY
(in millions, except per share and return on equity data)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023 % change
Earnings
Adjusted operating income (loss) before income taxes:
PGIM 230 151 179 211 172 843 713 -15%
U.S. Businesses 710 760 956 1,088 988 2,711 3,792 40%
International Businesses 814 840 784 811 748 3,205 3,183 -1%
Corporate and Other (525) (485) (527) (504) (656) (1,677) (2,172) -30%
Total adjusted operating income before income taxes 1,229 1,266 1,392 1,606 1,252 5,082 5,516 9%
Income taxes, applicable to adjusted operating income 297 276 305 340 309 1,168 1,230 5%
After-tax adjusted operating income 932 990 1,087 1,266 943 3,914 4,286 10%
Income (loss) attributable to Prudential Financial, Inc. (52) 1,462 511 (802) 1,317 (1,647) 2,488 251%
Return on Equity
Operating Return on Average Equity (based on adjusted operating income) (1) 10.5 % 11.2 % 12.2 % 14.5 % 10.9 % 10.4 % 12.2 %
Return on Average Equity (based on net income (loss)) -0.7 % 18.9 % 6.8 % -11.8 % 19.6 % -5.4 % 8.6 %
Distributions to Shareholders
Dividends paid 449 468 463 461 458 1,822 1,850 2%
Share repurchases 375 250 250 250 250 1,500 1,000 -33%
Total capital returned 824 718 713 711 708 3,322 2,850 -14%
Per Share Data
Net income (loss) - diluted (2) (0.16) 3.93 1.38 (2.23) 3.61 (4.49) 6.74 250%
Adjusted Operating Income - diluted 2.49 2.66 2.94 3.44 2.58 10.31 11.62 13%
Shareholder dividends 1.20 1.25 1.25 1.25 1.25 4.80 5.00 4%
GAAP book value - diluted 82.48 85.33 77.65 70.82 76.77
Adjusted book value - diluted (3) 94.69 97.29 97.38 94.19 96.64
Shares Outstanding
Weighted average number of common shares - basic 367.6 366.5 364.8 362.6 360.3 372.3 363.5 -2%
Weighted average number of common shares - diluted 369.4 367.7 366.1 363.8 361.0 374.7 364.6 -3%
End of period common shares - basic 366.0 365.9 363.4 361.3 359.2
End of period common shares - diluted 370.9 367.8 366.2 364.5 362.4
__________
(1) Operating Return on Average Equity (based on adjusted operating income) is a non-GAAP measure and represents adjusted operating income after-tax, annualized for interim periods, divided by average Prudential Financial, Inc. equity excluding accumulated other comprehensive income, adjusted to remove amounts included for foreign currency exchange rate remeasurement and the cumulative change in fair value of funds withheld embedded derivatives as described on page 3.
(2) For the three months ended September 30, 2023 and December 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 September 30, 2023 and December 31, 2022, and for the year ended December 31, 2022 all potential stock options and compensation programs were considered antidilutive.
(3) Adjusted book value is calculated as total equity (GAAP book value) excluding accumulated other comprehensive income (loss), the cumulative effect of foreign currency exchange rate remeasurements and currency translation adjustments corresponding to realized investment gains and losses, and the cumulative change in fair value of funds withheld embedded derivatives as described on page 3.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023
Earnings per share of Common Stock (diluted):
After-tax adjusted operating income 2.49 2.66 2.94 3.44 2.58 10.31 11.62
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments (2.50) 1.00 (2.09) (6.85) 0.87 (16.88) (7.06)
Change in value of market risk benefits, net of related hedging gains (losses) 1.70 0.20 0.04 (0.69) 0.60 (1.18) 0.15
Market experience updates 0.07 0.13 (0.01) 0.39 (0.22) 1.71 0.30
Divested and Run-off Businesses:
Closed Block division (0.11) (0.01) (0.13) 0.01 (0.14) (0.05) (0.27)
Other Divested and Run-off Businesses (0.08) 0.29 0.17 (0.13) 0.62 0.39 0.96
Difference in earnings allocated to participating unvested share-based payment awards 0.02 (0.01) 0.02 0.02 (0.01) 0.07 0.05
Other adjustments (1) (2.47) (0.02) (0.02) (0.03) (0.53) (2.51) (0.60)
Total reconciling items, before income taxes (3.37) 1.58 (2.02) (7.28) 1.19 (18.45) (6.47)
Income taxes, not applicable to adjusted operating income (0.72) 0.31 (0.46) (1.61) 0.16 (3.65) (1.59)
Total reconciling items, after income taxes (2.65) 1.27 (1.56) (5.67) 1.03 (14.80) (4.88)
Net income (loss) attributable to Prudential Financial, Inc. (0.16) 3.93 1.38 (2.23) 3.61 (4.49) 6.74
Weighted average number of outstanding common shares - basic 367.6 366.5 364.8 362.6 360.3 372.3 363.5
Weighted average number of outstanding common shares - diluted 369.4 367.7 366.1 363.8 361.0 374.7 364.6
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc. (52) 1,462 511 (802) 1,317 (1,647) 2,488
Less: Earnings allocated to participating unvested share-based payment awards 6 18 6 5 14 25 29
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation (58) 1,444 505 (807) 1,303 (1,672) 2,459
After-tax adjusted operating income 932 990 1,087 1,266 943 3,914 4,286
Less: Earnings allocated to participating unvested share-based payment awards 12 13 12 14 10 52 49
After-tax adjusted operating income for earnings per share of Common Stock calculation 920 977 1,075 1,252 933 3,862 4,237
___________
(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, 2023 and 2022 related to Assurance IQ. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
OTHER FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2022 2023
4Q 1Q 2Q 3Q 4Q
Capitalization Data (1):
Senior Debt:
Short-term Debt 775 705 763 615 618
Long-term Debt 10,814 10,860 10,787 10,787 10,788
Junior Subordinated Long-term Debt 9,094 9,591 8,089 8,090 8,094
Prudential Financial, Inc. Equity:
GAAP book value (total PFI equity) at end of period 30,593 31,385 28,434 25,814 27,820
Less: Accumulated other comprehensive income (AOCI) (3,806) (3,825) (6,649) (7,831) (6,504)
GAAP book value excluding AOCI (2) 34,399 35,210 35,083 33,645 34,324
Less: Cumulative change in fair value of funds withheld embedded derivatives (3) — — — — (181)
Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses) (4) (723) (575) (578) (687) (518)
Adjusted book value 35,122 35,785 35,661 34,332 35,023
Book Value per Share of Common Stock:
GAAP book value per common share - diluted 82.48 85.33 77.65 70.82 76.77
GAAP book value excluding AOCI per share - diluted (2) 92.74 95.73 95.80 92.30 94.71
Adjusted book value per common share - diluted 94.69 97.29 97.38 94.19 96.64
End of period number of common shares - diluted 370.9 367.8 366.2 364.5 362.4
Common Stock Price Range (based on closing price):
High 110.21 104.94 88.22 99.14 105.21
Low 89.19 77.23 78.04 88.66 88.61
Close 99.46 82.74 88.22 94.89 103.71
Common Stock market capitalization (1) 36,402 30,275 32,059 34,284 37,253
__________
(1) As of end of period.
(2) Foreign currency translation adjustments and the cumulative impact of foreign currency exchange rate remeasurement, except for those items remeasured through net income (loss), are a component of accumulated other comprehensive income.
(3) Amount represents the cumulative change in fair value of funds withheld embedded derivatives related to unrealized gains and losses on available-for-sale securities and certain derivatives associated with a reinsurance agreement with Prismic Life Reinsurance, Ltd.
(4) Includes the cumulative impact of net gains and losses resulting from foreign currency exchange rate remeasurement and associated realized investment gains and losses included in net income (loss) and currency translation adjustments corresponding to realized investment gains and losses.

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Table of Contents

Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
OPERATIONS HIGHLIGHTS
2022 2023
4Q 1Q 2Q 3Q 4Q
Assets Under Management and Administration (in billions) (1)(2):
PGIM:
Institutional customers 549.2 561.2 556.7 547.6 582.6
Retail customers 299.6 314.4 324.1 312.5 330.3
General account 379.6 394.2 385.0 358.5 385.2
Total PGIM 1,228.4 1,269.8 1,265.8 1,218.6 1,298.1
U.S. Businesses (3) 124.1 123.0 123.6 116.5 123.9
International Businesses 16.1 15.3 15.7 16.4 17.9
Corporate and Other (3) 8.7 8.9 9.5 9.8 9.7
Total assets under management 1,377.3 1,417.0 1,414.6 1,361.3 1,449.6
Assets under administration 157.4 158.6 166.6 164.7 181.5
Total assets under management and administration 1,534.7 1,575.6 1,581.2 1,526.0 1,631.1
Distribution Representatives (1):
Prudential Advisors 2,616 2,627 2,638 2,681 2,660
International Life Planners 5,924 5,978 5,806 5,917 5,856
Gibraltar Life Consultants 6,821 6,689 6,648 6,736 6,808
__________
(1) As of end of period.
(2) At fair market value.
(3) Prior period amounts have been reclassified to conform to current period presentation.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
COMBINED STATEMENTS OF OPERATIONS
(in millions)
2023 Year-to-date
1Q 2Q 3Q 4Q 2022 2023 % change
Revenues (1):
Premiums 8,833 6,368 3,659 6,364 34,370 25,224 -27%
Policy charges and fee income 1,073 1,032 1,060 1,059 4,275 4,224 -1%
Net investment income 3,671 3,814 3,893 3,919 13,184 15,297 16%
Asset management fees, commissions and other income 1,527 1,430 1,514 1,678 7,716 6,149 -20%
Total revenues 15,104 12,644 10,126 13,020 59,545 50,894 -15%
Benefits and expenses (1):
Insurance and annuity benefits 9,588 6,931 4,348 7,130 37,637 27,997 -26%
Change in estimates of liability for future policy benefits 22 159 49 20 951 250 -74%
Interest credited to policyholders' account balances 756 780 804 836 2,662 3,176 19%
Interest expense 441 461 422 442 1,589 1,766 11%
Deferral of acquisition costs (569) (546) (576) (637) (2,155) (2,328) -8%
Amortization of acquisition costs 355 355 351 356 1,381 1,417 3%
General and administrative expenses 3,245 3,112 3,122 3,621 12,398 13,100 6%
Total benefits and expenses 13,838 11,252 8,520 11,768 54,463 45,378 -17%
Adjusted operating income before income taxes 1,266 1,392 1,606 1,252 5,082 5,516 9%
Income taxes, applicable to adjusted operating income 276 305 340 309 1,168 1,230 5%
After-tax adjusted operating income 990 1,087 1,266 943 3,914 4,286 10%
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments 369 (765) (2,491) 314 (6,326) (2,573) 59%
Change in value of market risk benefits, net of related hedging gains (losses) 75 16 (251) 216 (443) 56 113%
Market experience updates 48 (3) 143 (78) 642 110 -83%
Divested and Run-off Businesses:
Closed Block division (4) (48) 2 (50) (18) (100) -456%
Other Divested and Run-off Businesses 107 64 (46) 224 146 349 139%
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (5) (26) (11) (26) (36) (68) -89%
Other adjustments (2) (9) (9) (10) (190) (939) (218) 77%
Total reconciling items, before income taxes 581 (771) (2,664) 410 (6,974) (2,444) 65%
Income taxes, not applicable to adjusted operating income 106 (182) (591) 50 (1,447) (617) 57%
Total reconciling items, after income taxes 475 (589) (2,073) 360 (5,527) (1,827) 67%
Income (loss) before income taxes and equity in earnings of operating joint ventures 1,847 621 (1,058) 1,662 (1,892) 3,072 262%
Income tax expense (benefit) 382 123 (251) 359 (279) 613 320%
Income (loss) before equity in earnings of operating joint ventures 1,465 498 (807) 1,303 (1,613) 2,459 252%
Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests (3) 13 5 14 (34) 29 185%
Income (loss) attributable to Prudential Financial, Inc. 1,462 511 (802) 1,317 (1,647) 2,488 251%
Earnings attributable to noncontrolling interests 15 (15) 11 9 (28) 20 171%
Net income (loss) 1,477 496 (791) 1,326 (1,675) 2,508 250%
Less: Income (loss) attributable to noncontrolling interests 15 (15) 11 9 (28) 20 171%
Net income (loss) attributable to Prudential Financial, Inc. 1,462 511 (802) 1,317 (1,647) 2,488 251%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, change in value of market risk benefits, net of related hedging gains (losses), revenues of Divested and Run-off Businesses, and include revenues representing equity in earnings of operating joint ventures other than those classified as Divested and Run-off Businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, benefits and expenses of Divested and Run-off Businesses, and certain components of acquisitions, including the Assurance IQ acquisition which are recognized as compensation expense over the requisite service periods and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates. See pages 35, 36, 37 and 38 for reconciliation.
(2) Represents adjustments not included in the above reconciling items, including goodwill impairments related to Assurance IQ that resulted in charges of 177 million pre-tax and 140 million after-tax in the fourth quarter and year ended December 31, 2023, and 903 million pre-tax and 713 million after-tax in the fourth quarter and year ended December 31, 2022. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.

All values are in US Dollars.

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Table of Contents

Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
CONSOLIDATED BALANCE SHEETS
(in millions)
03/31/2023 06/30/2023 09/30/2023 12/31/2023
Assets:
Investments:
Fixed maturities, available-for-sale, at fair value 320,512 312,230 295,318 316,321
Fixed maturities, held-to-maturity, at amortized cost, net of allowance for credit losses 1,277 1,171 — —
Fixed maturities, trading, at fair value 6,269 6,349 7,129 9,790
Assets supporting experience-rated contractholder liabilities, at fair value 2,958 3,019 2,943 3,168
Equity securities, at fair value 7,573 8,359 7,039 8,242
Commercial mortgage and other loans 56,778 57,689 57,908 59,305
Policy loans 10,041 9,983 9,959 10,047
Other invested assets 21,491 21,473 21,868 22,855
Short-term investments 5,177 5,059 5,072 5,005
Total investments 432,076 425,332 407,236 434,733
Cash and cash equivalents 17,425 14,652 16,892 19,419
Accrued investment income 3,095 3,142 3,191 3,287
Deferred policy acquisition costs 20,741 20,320 20,394 20,856
Value of business acquired 601 542 514 530
Market risk benefit assets 976 1,951 2,200 1,981
Reinsurance recoverables and deposit receivables (1) 19,448 17,322 25,941 27,311
Income tax assets — 803 1,108 939
Other assets (1) 12,613 12,369 13,136 13,179
Separate account assets 202,294 200,871 190,642 198,888
Total assets 709,269 697,304 681,254 721,123
Liabilities:
Future policy benefits 273,586 268,649 253,551 273,281
Policyholders' account balances 138,139 138,743 140,788 147,018
Market risk benefit liabilities 6,096 5,462 4,660 5,467
Reinsurance and funds withheld payables (1) 6,243 6,632 14,199 15,729
Securities sold under agreements to repurchase 6,617 6,097 5,547 6,056
Cash collateral for loaned securities 5,975 5,207 6,067 6,477
Income tax liabilities 517 — — —
Short-term debt 705 763 615 618
Long-term debt 20,451 18,876 18,877 18,882
Other liabilities (1) 15,402 15,739 18,155 17,546
Notes issued by consolidated variable interest entities 415 402 791 1,374
Separate account liabilities 202,294 200,871 190,642 198,888
Total liabilities 676,440 667,441 653,892 691,336
Mezzanine Equity:
Redeemable noncontrolling interests (1) 382 408 414 524
Total mezzanine equity 382 408 414 524
Equity:
Accumulated other comprehensive loss (3,825) (6,649) (7,831) (6,504)
Other equity (2) 35,210 35,083 33,645 34,324
Total Prudential Financial, Inc. equity 31,385 28,434 25,814 27,820
Noncontrolling interests 1,062 1,021 1,133 1,443
Total equity 32,447 29,455 26,947 29,263
Total liabilities, mezzanine equity and equity 709,269 697,304 681,253 721,123
____________
(1) Prior period amounts have been reclassified to conform to current period presentation.
(2) Includes 181 million of cumulative change in fair value of funds withheld embedded derivatives as described on page 3, as of December 31, 2023.

All values are in US Dollars.

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Table of Contents

Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
COMBINING BALANCE SHEETS
(in millions)
Closed Block Division PFI Excluding Closed Block Division PGIM U.S. Businesses International Businesses Corporate and Other
Assets:
Total investments 49,336 385,397 4,906 184,264 169,531 26,696
Deferred policy acquisition costs 168 20,688 — 11,757 9,351 (420)
Other assets 1,584 65,062 4,511 41,498 12,342 6,711
Separate account assets — 198,888 32,647 169,386 — (3,145)
Total assets 51,088 670,035 42,064 406,905 191,224 29,842
Liabilities:
Future policy benefits 43,587 229,694 — 107,007 113,501 9,186
Policyholders' account balances 4,500 142,518 — 85,983 51,941 4,594
Debt — 19,500 1,577 7,360 72 10,491
Other liabilities (1) 4,539 48,110 3,095 21,668 8,267 15,080
Separate account liabilities — 198,888 32,647 169,386 — (3,145)
Total liabilities 52,626 638,710 37,319 391,404 173,781 36,206
Mezzanine Equity:
Redeemable noncontrolling interests (1) — 524 524 — — —
Total mezzanine equity — 524 524 — — —
Equity:
Accumulated other comprehensive loss (144) (6,360) (86) (1,862) (1,922) (2,490)
Other equity (2) (1,405) 35,729 2,768 17,281 19,335 (3,655)
Total Prudential Financial, Inc. equity (1,549) 29,369 2,682 15,419 17,413 (6,145)
Noncontrolling interests 11 1,432 1,539 82 30 (219)
Total equity (1,538) 30,801 4,221 15,501 17,443 (6,364)
Total liabilities, mezzanine equity and equity 51,088 670,035 42,064 406,905 191,224 29,842
Closed Block Division PFI Excluding Closed Block Division PGIM U.S. Businesses International Businesses Corporate and Other
Assets:
Total investments 48,858 368,583 3,811 179,299 165,831 19,642
Deferred policy acquisition costs 181 20,365 — 11,809 8,941 (385)
Other assets 1,895 51,468 4,498 27,009 12,019 7,942
Separate account assets — 197,679 40,055 161,267 — (3,643)
Total assets 50,934 638,095 48,364 379,384 186,791 23,556
Liabilities:
Future policy benefits 44,414 217,359 — 99,948 109,018 8,393
Policyholders' account balances 4,606 131,018 — 75,928 46,903 8,187
Debt — 20,683 1,726 7,850 84 11,023
Other liabilities (1) 3,479 37,872 2,442 20,238 11,497 3,695
Separate account liabilities — 197,679 40,055 161,267 — (3,643)
Total liabilities 52,499 604,611 44,223 365,231 167,502 27,655
Mezzanine Equity:
Redeemable noncontrolling interest (1) — 371 371 — — —
Total mezzanine equity — 371 371 — — —
Equity:
Accumulated other comprehensive income (loss) (214) (3,592) (145) (3,034) 1,590 (2,003)
Other equity (1,363) 35,762 2,613 17,103 17,668 (1,622)
Total Prudential Financial, Inc. equity (1,577) 32,170 2,468 14,069 19,258 (3,625)
Noncontrolling interests 12 943 1,302 84 31 (474)
Total equity (1,565) 33,113 3,770 14,153 19,289 (4,099)
Total liabilities, mezzanine equity and equity 50,934 638,095 48,364 379,384 186,791 23,556
____________
(1) Prior period amounts have been reclassified to conform to current period presentation for PGIM.
(2) Corporate and Other includes 181 million of cumulative change in fair value of funds withheld embedded derivatives as described on page 3.

All values are in US Dollars.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED
(in millions)
As of December 31, 2022
Senior Debt
Long-term Debt Junior Subordinated Long-term Debt Total Debt Short-term Debt Long-term Debt Junior Subordinated Long-term Debt Total Debt
Borrowings by use of proceeds:
Capital Debt 4,869 8,094 12,963 100 4,877 9,094 14,071
Operating Debt 5,589 — 6,124 511 5,583 — 6,094
Limited recourse and non-recourse borrowing 330 — 413 164 354 — 518
Total Debt 10,788 8,094 19,500 775 10,814 9,094 20,683
As of December 31, 2022
The Prudential Insurance Company of America (1)(2) Other Affiliates Total Debt Prudential Financial, Inc. The Prudential Insurance Company of America (1)(2) Other Affiliates Total Debt
Borrowings by sources:
Capital Debt 346 44 12,963 13,579 445 47 14,071
Operating Debt 510 — 6,124 5,608 486 — 6,094
Limited recourse and non-recourse borrowing 130 283 413 — 179 339 518
Total Debt 986 327 19,500 19,187 1,110 386 20,683
__________
(1) Includes Prudential Funding, LLC.
(2) Capital Debt at The Prudential Insurance Company of America includes 346 million of surplus notes as of December 31, 2023 and 345 million as of December 31, 2022.

All values are in US Dollars.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
STATEMENTS OF OPERATIONS - PGIM
(in millions)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023 % change
Revenues (1):
Premiums — — — — — — — —
Policy charges and fee income — — — — — — — —
Net investment income 56 80 67 42 79 94 268 185%
Asset management fees, commissions and other income 904 818 782 934 836 3,528 3,370 -4%
Total revenues 960 898 849 976 915 3,622 3,638 —%
Benefits and expenses (1):
Insurance and annuity benefits — — — — — — — —
Change in estimates of liability for future policy benefits — — — — — — — —
Interest credited to policyholders' account balances — — — — — — — —
Interest expense 27 27 29 28 29 57 113 98%
Deferral of acquisition costs — (1) — (1) — (2) (2) —%
Amortization of acquisition costs — 1 — — 1 3 2 -33%
General and administrative expenses 703 720 641 738 713 2,721 2,812 3%
Total benefits and expenses 730 747 670 765 743 2,779 2,925 5%
Adjusted operating income before income taxes 230 151 179 211 172 843 713 -15%
Total revenues 960 898 849 976 915 3,622 3,638 —%
Less: Passthrough distribution revenue 19 19 20 20 19 86 78 -9%
Less: Revenue associated with consolidations 31 32 (25) 62 16 33 85 158%
Total adjusted revenues (2) 910 847 854 894 880 3,503 3,475 -1%
Adjusted operating margin (2)(3) 25.3 % 17.8 % 21.0 % 23.6 % 19.5 % 24.1 % 20.5 %
__________
(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 18.8%, 21.6%, 21.1%, 16.8%, and 23.9% for the three months ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, respectively, and 19.6% and 23.0% for the years ended December 31, 2023 and December 31, 2022, respectively.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
PGIM - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION
2023 Year-to-date
1Q 2Q 3Q 4Q 2022 2023 % change
Supplementary Revenue Information (in millions):
Analysis of revenues by type:
Asset management fees 720 726 738 735 3,032 2,919 -4%
Other related revenues (1) 52 58 71 66 229 247 8%
Service, distribution and other revenues 126 65 167 114 361 472 31%
Total PGIM revenues 898 849 976 915 3,622 3,638 —%
Analysis of asset management fees by source:
Institutional customers 362 357 363 366 1,443 1,448 —%
Retail customers 243 253 261 257 1,081 1,014 -6%
General account 115 116 114 112 508 457 -10%
Total asset management fees 720 726 738 735 3,032 2,919 -4%
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 415.3 69.0 34.9 2.0 582.6
Retail customers 137.4 2.2 0.9 71.4 330.3
General account 247.1 58.0 76.3 — 385.2
Total 799.8 129.2 112.1 73.4 1,298.1
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
__________
(1) Other related revenues, net of related expenses are 36 million, 37 million, 31 million, 28 million, and 51 million for the three months ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, respectively, and 132 million and 108 million for the years ended December 31, 2023 and December 31, 2022, respectively.

All values are in US Dollars.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
PGIM - SUPPLEMENTARY ASSETS UNDER MANAGEMENT INFORMATION
(in billions)
2023 Year-to-date
1Q 2Q 3Q 4Q 2022 2023
Institutional Customers - Assets Under Management (at fair market value):
Beginning assets under management 528.9 540.2 536.7 528.6 568.0 528.9
Additions 13.9 18.9 14.4 20.5 71.6 67.7
Withdrawals (24.1) (21.9) (18.2) (26.8) (68.6) (91.0)
Net institutional additions (withdrawals), excluding money market activity (10.2) (3.0) (3.8) (6.3) 3.0 (23.3)
Change in market value 17.2 3.5 (13.8) 36.7 (85.8) 43.6
Net money market flows 3.2 (3.7) 0.1 (1.1) (0.6) (1.5)
Other (1) 1.1 (0.3) 9.4 4.8 44.3 15.0
Ending assets under management 540.2 536.7 528.6 562.7 528.9 562.7
Affiliated institutional assets under management 21.0 20.0 19.0 19.9 20.3 19.9
Total assets managed for institutional customers at end of period 561.2 556.7 547.6 582.6 549.2 582.6
Retail Customers - Assets Under Management (at fair market value):
Beginning assets under management 191.7 201.4 209.4 203.1 265.8 191.7
Additions 12.6 12.6 11.9 14.8 66.3 51.9
Withdrawals (16.4) (14.8) (13.8) (22.0) (89.5) (67.0)
Net retail withdrawals, excluding money market activity (3.8) (2.2) (1.9) (7.2) (23.2) (15.1)
Change in market value 13.6 10.3 (4.7) 19.5 (56.8) 38.7
Net money market flows 0.4 0.2 0.7 0.3 1.9 1.6
Other (0.5) (0.3) (0.4) (0.2) 4.0 (1.4)
Ending assets under management 201.4 209.4 203.1 215.5 191.7 215.5
Affiliated retail assets under management 113.0 114.7 109.4 114.8 107.9 114.8
Total assets managed for retail customers at end of period 314.4 324.1 312.5 330.3 299.6 330.3
__________
(1) Other includes 9.5 billion related to the reinsurance of in-force structured settlement annuities business to Prismic Life Reinsurance, Ltd in September 2023 which was previously included in General Account assets under management.

All values are in US Dollars.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES
(in millions)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023 % change
Revenues (1):
Premiums 2,895 5,268 3,098 550 3,505 21,001 12,421 -41%
Policy charges and fee income 1,028 1,014 968 997 990 3,989 3,969 -1%
Net investment income 1,989 2,117 2,253 2,355 2,281 7,517 9,006 20%
Asset management fees, commissions and other income 584 676 699 637 698 3,980 2,710 -32%
Total revenues 6,496 9,075 7,018 4,539 7,474 36,487 28,106 -23%
Benefits and expenses (1):
Insurance and annuity benefits 4,021 6,434 4,284 1,601 4,607 25,863 16,926 -35%
Change in estimates of liability for future policy benefits (9) 16 (134) 33 (29) 820 (114) -114%
Interest credited to policyholders' account balances 508 507 523 540 550 1,787 2,120 19%
Interest expense 165 251 249 226 253 774 979 26%
Deferral of acquisition costs (253) (274) (295) (307) (349) (1,016) (1,225) -21%
Amortization of acquisition costs 195 212 205 204 209 821 830 1%
General and administrative expenses 1,159 1,169 1,230 1,154 1,245 4,727 4,798 2%
Total benefits and expenses 5,786 8,315 6,062 3,451 6,486 33,776 24,314 -28%
Adjusted operating income before income taxes 710 760 956 1,088 988 2,711 3,792 40%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES
(in millions)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023 % change
Revenues (1):
Premiums 1,419 3,785 1,561 (959) 2,041 15,122 6,428 -57%
Policy charges and fee income 344 332 320 318 310 1,553 1,280 -18%
Net investment income 1,243 1,322 1,416 1,491 1,405 4,571 5,634 23%
Asset management fees, commissions and other income 450 545 559 524 577 3,340 2,205 -34%
Total revenues 3,456 5,984 3,856 1,374 4,333 24,586 15,547 -37%
Benefits and expenses (1):
Insurance and annuity benefits 2,004 4,383 2,312 (417) 2,615 17,625 8,893 -50%
Change in estimates of liability for future policy benefits 2 (42) (157) 31 (25) (524) (193) 63%
Interest credited to policyholders' account balances 232 240 255 270 277 708 1,042 47%
Interest expense (53) 24 15 14 20 (40) 73 283%
Deferral of acquisition costs (79) (99) (107) (117) (131) (329) (454) -38%
Amortization of acquisition costs 81 97 89 89 90 373 365 -2%
General and administrative expenses 522 544 573 563 573 2,244 2,253 —%
Total benefits and expenses 2,709 5,147 2,980 433 3,419 20,057 11,979 -40%
Adjusted operating income before income taxes 747 837 876 941 914 4,529 3,568 -21%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES - INSTITUTIONAL RETIREMENT STRATEGIES
(in millions)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023 % change
Revenues (1):
Premiums 1,395 3,763 1,531 (979) 2,027 15,037 6,342 -58%
Policy charges and fee income 6 8 8 10 7 34 33 -3%
Net investment income 969 1,004 1,072 1,098 1,006 3,653 4,180 14%
Asset management fees, commissions and other income 109 114 126 92 143 392 475 21%
Total revenues 2,479 4,889 2,737 221 3,183 19,116 11,030 -42%
Benefits and expenses (1):
Insurance and annuity benefits 1,960 4,350 2,263 (438) 2,584 17,476 8,759 -50%
Change in estimates of liability for future policy benefits (6) (44) (156) 24 (25) (534) (201) 62%
Interest credited to policyholders' account balances 139 125 144 146 137 394 552 40%
Interest expense 7 10 (4) (6) 1 15 1 -93%
Deferral of acquisition costs (5) (17) (16) (18) (24) (21) (75) -257%
Amortization of acquisition costs 3 4 6 3 3 11 16 45%
General and administrative expenses 49 65 72 71 75 228 283 24%
Total benefits and expenses 2,147 4,493 2,309 (218) 2,751 17,569 9,335 -47%
Adjusted operating income before income taxes 332 396 428 439 432 1,547 1,695 10%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
U.S. BUSINESSES - RETIREMENT STRATEGIES - INSTITUTIONAL RETIREMENT STRATEGIES SALES RESULTS AND ACCOUNT VALUES
(in millions)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023
Beginning total account value 238,313 251,818 252,952 258,533 254,933 245,720 251,818
Additions 12,277 3,828 5,686 4,697 14,287 31,773 28,498
Withdrawals and benefits (4,248) (5,474) (5,865) (7,781) (6,163) (16,398) (25,283)
Net flows 8,029 (1,646) (179) (3,084) 8,124 15,375 3,215
Change in market value, interest credited and interest income 402 1,823 2,456 878 2,565 (4,110) 7,722
Other (1) 5,074 957 3,304 (1,394) 2,032 (5,167) 4,899
Ending total account value, gross 251,818 252,952 258,533 254,933 267,654 251,818 267,654
Reinsurance ceded — — — (9,273) (9,237) — (9,237)
Ending total account value, net 251,818 252,952 258,533 245,660 258,417 251,818 258,417
Amounts included in ending total account value, net above:
Investment-only stable value wraps 69,521 68,170 67,335 65,497 64,098
International reinsurance (2) 83,910 84,137 90,612 88,253 102,544
Group annuities and other products 98,387 100,645 100,586 91,910 91,775
Ending total account value, net 251,818 252,952 258,533 245,660 258,417
__________
(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.

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Table of Contents

Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES
(in millions)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023 % change
Revenues (1):
Premiums 24 22 30 20 14 85 86 1%
Policy charges and fee income 338 324 312 308 303 1,519 1,247 -18%
Net investment income 274 318 344 393 399 918 1,454 58%
Asset management fees, commissions and other income 341 431 433 432 434 2,948 1,730 -41%
Total revenues 977 1,095 1,119 1,153 1,150 5,470 4,517 -17%
Benefits and expenses (1):
Insurance and annuity benefits 44 33 49 21 31 149 134 -10%
Change in estimates of liability for future policy benefits 8 2 (1) 7 — 10 8 -20%
Interest credited to policyholders' account balances 93 115 111 124 140 314 490 56%
Interest expense (60) 14 19 20 19 (55) 72 231%
Deferral of acquisition costs (74) (82) (91) (99) (107) (308) (379) -23%
Amortization of acquisition costs 78 93 83 86 87 362 349 -4%
General and administrative expenses 473 479 501 492 498 2,016 1,970 -2%
Total benefits and expenses 562 654 671 651 668 2,488 2,644 6%
Adjusted operating income before income taxes 415 441 448 502 482 2,982 1,873 -37%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES SALES RESULTS AND ACCOUNT VALUES
(in millions)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023
Actively -Sold Protected Investment and Income Product Sales (1):
FlexGuard Suite 1,062 1,088 1,240 1,279 1,263 4,998 4,870
Investment Only VA (2) 31 32 36 48 35 229 151
Fixed 397 547 616 616 804 737 2,583
Total 1,490 1,667 1,892 1,943 2,102 5,964 7,604
Actively-Sold Protected Investment and Income Solutions (1):
Beginning total account value 19,099 21,208 23,268 25,970 27,069 18,819 21,208
Sales 1,490 1,667 1,892 1,943 2,102 5,964 7,604
Full surrenders and death benefits (148) (191) (223) (208) (239) (426) (861)
Sales, net of full surrenders and death benefits 1,342 1,476 1,669 1,735 1,863 5,538 6,743
Partial withdrawals and other benefit payments (158) (135) (131) (135) (170) (539) (571)
Net flows 1,184 1,341 1,538 1,600 1,693 4,999 6,172
Change in market value, interest credited, and other 930 725 1,171 (494) 1,901 (2,599) 3,303
Policy charges (5) (6) (7) (7) (8) (11) (28)
Ending total account value, gross 21,208 23,268 25,970 27,069 30,655 21,208 30,655
Reinsurance ceded (817) (1,079) (1,357) (1,552) (1,694) (817) (1,694)
Ending total account value, net 20,391 22,189 24,613 25,517 28,961 20,391 28,961
Discontinued Traditional VA and Guaranteed Living Benefit Block (3):
Beginning total account value 96,691 98,814 100,536 100,327 94,021 163,486 98,814
Sales 7 8 9 7 7 63 31
Full surrenders and death benefits (994) (1,297) (1,428) (1,544) (1,636) (5,689) (5,905)
Sales, net of full surrenders and death benefits (987) (1,289) (1,419) (1,537) (1,629) (5,626) (5,874)
Partial withdrawals and other benefit payments (1,075) (985) (926) (927) (1,122) (4,131) (3,960)
Net flows (2,062) (2,274) (2,345) (2,464) (2,751) (9,757) (9,834)
Change in market value and other 4,809 4,605 2,693 (3,298) 8,321 (52,210) 12,321
Policy charges (624) (609) (557) (544) (538) (2,705) (2,248)
Ending total account value, gross 98,814 100,536 100,327 94,021 99,053 98,814 99,053
Reinsurance ceded — — (10,227) (9,432) (10,103) — (10,103)
Ending total account value, net 98,814 100,536 90,100 84,589 88,950 98,814 88,950
__________
(1) Includes Prudential FlexGuard and FlexGuard Income, Prudential Premier Investment, MyRock, Private Placement Variable Annuity and all fixed annuity products. Excludes discontinued traditional variable annuities and guaranteed living benefits.
(2) Represents variable annuities without guaranteed living benefits including Prudential Premier Investment, MyRock and Private Placement Variable Annuity.
(3) Includes Prudential Highest Daily Income, Prudential Defined Income and other legacy variable products with and without guaranteed minimum income and withdrawal benefits.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES ACCOUNT VALUE ACTIVITY
(in millions)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023
Account Values in General Account (1):
Beginning balance 20,170 22,063 23,948 26,455 27,613 20,062 22,063
Premiums and deposits 1,437 1,601 1,821 1,856 2,030 5,561 7,308
Full surrenders and death benefits (87) (119) (118) (121) (155) (504) (513)
Premiums and deposits net of full surrenders and death benefits 1,350 1,482 1,703 1,735 1,875 5,057 6,795
Partial withdrawals and other benefit payments (167) (148) (149) (148) (191) (596) (636)
Net flows 1,183 1,334 1,554 1,587 1,684 4,461 6,159
Change in market value, interest credited and other 619 582 1,181 (285) 1,189 (2,010) 2,667
Net transfers (to) from separate account 92 (30) (227) (142) 360 (447) (39)
Policy charges (1) (1) (1) (2) (2) (3) (6)
Ending balance, gross 22,063 23,948 26,455 27,613 30,844 22,063 30,844
Reinsurance ceded (817) (1,079) (1,357) (1,552) (1,694) (817) (1,694)
Ending balance, net 21,246 22,869 25,098 26,061 29,150 21,246 29,150
Account Values in Separate Account (1):
Beginning balance 95,620 97,959 99,856 99,842 93,477 162,243 97,959
Premiums and deposits 60 74 80 94 79 466 327
Full surrenders and death benefits (1,055) (1,369) (1,533) (1,631) (1,720) (5,611) (6,253)
Premiums and deposits net of full surrenders and death benefits (995) (1,295) (1,453) (1,537) (1,641) (5,145) (5,926)
Partial withdrawals and other benefit payments (1,066) (972) (908) (914) (1,101) (4,074) (3,895)
Net flows (2,061) (2,267) (2,361) (2,451) (2,742) (9,219) (9,821)
Change in market value, interest credited and other 5,120 4,748 2,683 (3,507) 9,033 (52,799) 12,957
Net transfers (to) from general account (92) 30 227 142 (360) 447 39
Policy charges (628) (614) (563) (549) (544) (2,713) (2,270)
Ending balance, gross 97,959 99,856 99,842 93,477 98,864 97,959 98,864
Reinsurance ceded — — (10,227) (9,432) (10,103) — (10,103)
Ending balance, net 97,959 99,856 89,615 84,045 88,761 97,959 88,761
__________
(1) Premiums and deposits, and surrenders and withdrawals, are classified within the general account and separate account for purposes of this presentation based on the allocation of customer funds. For example, premiums allocated by customers to separate account investments at the time of sale, while remitted through the company's general account, are shown as separate account premium in this display, rather than as general account premium and transfers to the separate account.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES MARKET RISK BENEFIT FEATURES
(in millions)
2022 2023
4Q 1Q 2Q 3Q 4Q
MARKET RISK BENEFITS ACCOUNT VALUES AND NET AMOUNT AT RISK (1):
Market Risk Benefits Account Values by Risk Management Design:
Account Values with Auto-Rebalancing Feature - risk retained by Prudential 69,365 70,701 70,816 66,563 70,093
Account Values with Auto-Rebalancing Feature - externally reinsured 2,482 2,493 2,468 2,269 2,315
Account Values without Auto-Rebalancing Feature 25,660 26,004 25,667 23,869 25,244
Total 97,507 99,198 98,951 92,701 97,652
Market Risk Benefits Net Amount at Risk by Product Design Type:
Net Amount at Risk with Auto-Rebalancing Feature 9,335 8,167 7,803 9,508 7,177
Net Amount at Risk without Auto-Rebalancing Feature 3,845 3,165 3,082 3,909 2,576
Total 13,180 11,332 10,885 13,417 9,753
__________
(1) At end of period.

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Table of Contents

Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - GROUP INSURANCE
(in millions)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023 % change
Revenues (1):
Premiums 1,231 1,237 1,288 1,268 1,231 4,874 5,024 3%
Policy charges and fee income 185 181 161 163 169 681 674 -1%
Net investment income 117 126 128 130 128 479 512 7%
Asset management fees, commissions and other income 22 20 21 15 19 81 75 -7%
Total revenues 1,555 1,564 1,598 1,576 1,547 6,115 6,285 3%
Benefits and expenses (1):
Insurance and annuity benefits 1,221 1,218 1,140 1,179 1,166 4,914 4,703 -4%
Change in estimates of liability for future policy benefits — — — — — — — —
Interest credited to policyholders' account balances 41 44 41 39 42 153 166 8%
Interest expense 1 4 2 1 1 4 8 100%
Deferral of acquisition costs — — — (1) (2) (3) (3) —%
Amortization of acquisition costs 1 1 2 1 5 2 9 350%
General and administrative expenses 276 272 274 268 269 1,061 1,083 2%
Total benefits and expenses 1,540 1,539 1,459 1,487 1,481 6,131 5,966 -3%
Adjusted operating income (loss) before income taxes 15 25 139 89 66 (16) 319 2094%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
U.S. BUSINESSES - GROUP INSURANCE SUPPLEMENTARY INFORMATION
(dollar amounts in millions, or as otherwise noted)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023
Annualized New Business Premiums:
Group life 10 162 32 61 41 283 296
Group disability 13 157 25 34 19 196 235
Total 23 319 57 95 60 479 531
Future Policy Benefits (1):
Group life 2,551 2,397 2,309 2,242 2,421
Group disability 3,106 3,141 3,144 3,175 3,178
Total 5,657 5,538 5,453 5,417 5,599
Policyholders' Account Balances (1):
Group life 5,751 5,480 5,385 5,250 5,229
Group disability 131 117 121 112 113
Total 5,882 5,597 5,506 5,362 5,342
Separate Account Liabilities (1):
Group life 23,513 24,661 23,747 22,864 25,021
Group Life Insurance:
Gross premiums, policy charges and fee income (2) 1,121 1,085 1,135 1,100 1,149 4,328 4,469
Earned premiums 899 892 937 900 873 3,588 3,602
Earned policy charges and fee income 164 158 137 138 144 588 577
Benefits ratio (3) 90.2 % 92.9 % 85.1 % 84.8 % 87.5 % 93.4 % 87.6 %
Administrative operating expense ratio 10.9 % 11.8 % 11.9 % 11.8 % 11.2 % 10.8 % 11.7 %
Persistency ratio 95.9 % 94.4 % 94.0 % 93.7 % 93.6 %
Group Disability Insurance:
Gross premiums, policy charges and fee income (2) 361 371 380 393 385 1,401 1,529
Earned premiums 332 345 351 368 358 1,286 1,422
Earned policy charges and fee income 21 23 24 25 25 93 97
Benefits ratio (3) 74.2 % 65.8 % 69.8 % 76.2 % 72.2 % 73.3 % 71.1 %
Administrative operating expense ratio 31.6 % 25.2 % 25.6 % 24.1 % 25.9 % 31.3 % 25.2 %
Persistency ratio 90.6 % 92.5 % 91.9 % 91.2 % 91.1 %
Total Group Insurance:
Benefits ratio (3) 86.2 % 85.9 % 81.1 % 82.4 % 83.3 % 88.4 % 83.2 %
Administrative operating expense ratio 15.9 % 15.2 % 15.4 % 15.1 % 14.9 % 15.8 % 15.2 %
Net face amount of policies in force (in billions) (4) 2,126 2,104 2,153 2,143 2,155
__________
(1) As of end of period.
(2) Before returns of premiums to participating policyholders for favorable claims experience.
(3) Benefits ratios excluding the impact of the annual assumption updates and other refinements in the second quarter. Benefits ratios including these impacts for Group Life, Group Disability, and Total Group Insurance are 83.0%, 66.4%, and 78.7% for the three months ended June 30, 2023, respectively. Benefits ratios including these impacts for Group Life, Group Disability, and Total Group Insurance are 87.0%, 70.2%, 82.5% and 93.3%, 73.9%, 88.5% for the years ended December 31, 2023 and December 31, 2022, respectively.
(4) At end of period; net of reinsurance.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
U.S. BUSINESSES - STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE
(in millions)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023 % change
Revenues (1):
Premiums 245 246 249 241 233 1,005 969 -4%
Policy charges and fee income 499 501 487 516 511 1,755 2,015 15%
Net investment income 629 669 709 734 748 2,467 2,860 16%
Asset management fees, commissions and other income 112 111 119 98 102 559 430 -23%
Total revenues 1,485 1,527 1,564 1,589 1,594 5,786 6,274 8%
Benefits and expenses (1):
Insurance and annuity benefits 796 833 832 839 826 3,324 3,330 —%
Change in estimates of liability for future policy benefits (11) 58 23 2 (4) 1,344 79 -94%
Interest credited to policyholders' account balances 235 223 227 231 231 926 912 -2%
Interest expense 217 223 232 211 232 810 898 11%
Deferral of acquisition costs (174) (175) (188) (189) (216) (684) (768) -12%
Amortization of acquisition costs 113 114 114 114 114 446 456 2%
General and administrative expenses 361 353 383 323 403 1,422 1,462 3%
Total benefits and expenses 1,537 1,629 1,623 1,531 1,586 7,588 6,369 -16%
Adjusted operating income (loss) before income taxes (52) (102) (59) 58 8 (1,802) (95) 95%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses. Revenues and Benefits and expenses exclude market experience updates.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
U.S. BUSINESSES - INDIVIDUAL LIFE SUPPLEMENTARY INFORMATION
(in millions, or as otherwise noted)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023
ANNUALIZED NEW BUSINESS PREMIUMS (1):
Term life 22 23 31 33 33 93 120
Universal life 25 17 20 17 27 92 81
Variable life 107 109 146 136 145 424 536
Total 154 149 197 186 205 609 737
ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):
Prudential Advisors 32 33 38 35 38 133 144
Third party distribution 122 116 159 151 167 476 593
Total 154 149 197 186 205 609 737
ACCOUNT VALUE ACTIVITY:
Policyholders' Account Balances (2):
Beginning balance 31,400 31,522 31,644 32,713 32,730 31,304 31,522
Premiums and deposits 647 636 577 587 675 2,581 2,475
Surrenders and withdrawals (478) (455) (429) (417) (557) (1,687) (1,858)
Net sales 169 181 148 170 118 894 617
Benefit payments (51) (59) (45) (41) (43) (222) (188)
Net flows 118 122 103 129 75 672 429
Interest credited and other 426 461 406 274 624 1,177 1,765
Net transfers from separate account 98 78 1,079 128 113 453 1,398
Policy charges (520) (539) (519) (514) (516) (2,084) (2,088)
Ending balance 31,522 31,644 32,713 32,730 33,026 31,522 33,026
Separate Account Liabilities:
Beginning balance 37,250 39,419 41,650 43,230 42,171 48,133 39,419
Premiums and deposits 684 709 865 739 836 2,713 3,149
Surrenders and withdrawals (179) (224) (278) (212) (235) (896) (949)
Net sales 505 485 587 527 601 1,817 2,200
Benefit payments (102) (130) (91) (119) (126) (535) (466)
Net flows 403 355 496 408 475 1,282 1,734
Change in market value, interest credited and other 2,188 2,286 2,489 (1,003) 4,262 (8,274) 8,034
Net transfers to general account (98) (78) (1,079) (128) (113) (453) (1,398)
Policy charges (324) (332) (326) (336) (342) (1,269) (1,336)
Ending balance 39,419 41,650 43,230 42,171 46,453 39,419 46,453
NET FACE AMOUNT IN FORCE (in billions) (3):
Term life 296 295 294 293 290
Universal life 98 98 98 97 97
Variable life 145 148 150 150 154
Total 539 541 542 540 541
__________
(1) Excludes corporate-owned life insurance.
(2) Includes fixed rate funds, alliance deposits, supplementary contracts and deferred revenues on variable products.
(3) At end of period; net of reinsurance. Net Face Amount In Force excludes certain policies considered to be non-core business drivers impacting Adjusted Operating Income for Individual Life. Policies within the Closed Block division are not reported through Individual Life.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES
(in millions)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023 % change
Revenues (1):
Premiums 3,016 3,569 3,274 3,112 2,864 13,391 12,819 -4%
Policy charges and fee income 84 72 77 77 82 340 308 -9%
Net investment income 1,271 1,285 1,321 1,316 1,367 4,966 5,289 7%
Asset management fees, commissions and other income 89 89 51 61 65 314 266 -15%
Total revenues 4,460 5,015 4,723 4,566 4,378 19,011 18,682 -2%
Benefits and expenses (1):
Insurance and annuity benefits 2,589 3,159 2,647 2,751 2,525 11,774 11,082 -6%
Change in estimates of liability for future policy benefits 59 6 293 16 49 131 364 178%
Interest credited to policyholders' account balances 193 215 226 239 263 738 943 28%
Interest expense 16 11 4 3 5 35 23 -34%
Deferral of acquisition costs (295) (313) (281) (292) (312) (1,178) (1,198) -2%
Amortization of acquisition costs 141 151 159 156 156 596 622 4%
General and administrative expenses 943 946 891 882 944 3,710 3,663 -1%
Total benefits and expenses 3,646 4,175 3,939 3,755 3,630 15,806 15,499 -2%
Adjusted operating income before income taxes 814 840 784 811 748 3,205 3,183 -1%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, change in value of market risk benefits, net of related hedging gains (losses) and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - LIFE PLANNER
(in millions)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023 % change
Revenues (1):
Premiums 1,540 1,934 1,693 1,665 1,511 6,953 6,803 -2%
Policy charges and fee income 47 48 48 48 52 175 196 12%
Net investment income 555 573 586 584 608 2,119 2,351 11%
Asset management fees, commissions and other income 91 69 54 62 61 294 246 -16%
Total revenues 2,233 2,624 2,381 2,359 2,232 9,541 9,596 1%
Benefits and expenses (1):
Insurance and annuity benefits 1,310 1,692 1,417 1,421 1,311 5,992 5,841 -3%
Change in estimates of liability for future policy benefits 13 2 69 11 23 7 105 1400%
Interest credited to policyholders' account balances 48 57 57 61 68 183 243 33%
Interest expense 7 3 (1) (1) (4) 18 (3) -117%
Deferral of acquisition costs (136) (158) (142) (143) (144) (578) (587) -2%
Amortization of acquisition costs 68 76 78 76 76 296 306 3%
General and administrative expenses 430 430 416 407 438 1,679 1,691 1%
Total benefits and expenses 1,740 2,102 1,894 1,832 1,768 7,597 7,596 —%
Adjusted operating income before income taxes 493 522 487 527 464 1,944 2,000 3%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - GIBRALTAR LIFE AND OTHER
(in millions)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023 % change
Revenues (1):
Premiums 1,476 1,635 1,581 1,447 1,353 6,438 6,016 -7%
Policy charges and fee income 37 24 29 29 30 165 112 -32%
Net investment income 716 712 735 732 759 2,847 2,938 3%
Asset management fees, commissions and other income (2) 20 (3) (1) 4 20 20 —%
Total revenues 2,227 2,391 2,342 2,207 2,146 9,470 9,086 -4%
Benefits and expenses (1):
Insurance and annuity benefits 1,279 1,467 1,230 1,330 1,214 5,782 5,241 -9%
Change in estimates of liability for future policy benefits 46 4 224 5 26 124 259 109%
Interest credited to policyholders' account balances 145 158 169 178 195 555 700 26%
Interest expense 9 8 5 4 9 17 26 53%
Deferral of acquisition costs (159) (155) (139) (149) (168) (600) (611) -2%
Amortization of acquisition costs 73 75 81 80 80 300 316 5%
General and administrative expenses 513 516 475 475 506 2,031 1,972 -3%
Total benefits and expenses 1,906 2,073 2,045 1,923 1,862 8,209 7,903 -4%
Adjusted operating income before income taxes 321 318 297 284 284 1,261 1,183 -6%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, change in value of market risk benefits, net of related hedging gains (losses) and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
(in millions)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023
Actual exchange rate basis (1):
Net premiums, policy charges and fee income:
Japan - Prudential of Japan 1,341 1,735 1,463 1,422 1,266 6,228 5,886
Japan - Gibraltar Life 1,513 1,659 1,610 1,476 1,383 6,603 6,128
Emerging Markets 246 247 278 291 297 900 1,113
Total 3,100 3,641 3,351 3,189 2,946 13,731 13,127
Annualized new business premiums:
Japan - Prudential of Japan 160 196 158 143 182 657 679
Japan - Gibraltar Life 244 231 241 236 310 878 1,018
Emerging Markets 84 81 91 112 106 284 390
Total 488 508 490 491 598 1,819 2,087
Annualized new business premiums by distribution channel:
Life Planners 244 277 249 255 288 941 1,069
Gibraltar Life Consultants 156 128 144 131 139 521 542
Banks 49 55 51 68 82 168 256
Independent Agency 39 48 46 37 89 189 220
Total 488 508 490 491 598 1,819 2,087
Constant exchange rate basis (2):
Net premiums, policy charges and fee income:
Japan - Prudential of Japan 1,523 1,901 1,600 1,601 1,474 6,736 6,576
Japan - Gibraltar Life 1,680 1,820 1,758 1,663 1,578 7,169 6,819
Emerging Markets 216 213 228 235 245 777 921
Total 3,419 3,934 3,586 3,499 3,297 14,682 14,316
Annualized new business premiums:
Japan - Prudential of Japan 181 212 174 162 210 710 758
Japan - Gibraltar Life 252 239 251 246 320 900 1,056
Emerging Markets 72 70 76 97 96 236 339
Total 505 521 501 505 626 1,846 2,153
Annualized new business premiums by distribution channel:
Life Planners 253 282 250 259 306 946 1,097
Gibraltar Life Consultants 161 131 149 136 145 534 561
Banks 49 55 51 69 82 168 257
Independent Agency 42 53 51 41 93 198 238
Total 505 521 501 505 626 1,846 2,153
__________
(1) Translated based on applicable average exchange rates for the period shown.
(2) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 110 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
2022 2023
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 - Prudential of Japan 363 362 361 359 350
Japan - Gibraltar Life 328 325 323 320 316
Emerging Markets 38 39 40 42 43
Total 729 726 724 721 709
Number of individual policies in force at end of period (in thousands) (3):
Japan - Prudential of Japan 4,463 4,484 4,496 4,501 4,511
Japan - Gibraltar Life 6,713 6,681 6,650 6,626 6,594
Emerging Markets 726 742 754 769 789
Total 11,902 11,907 11,900 11,896 11,894
International life insurance individual policy persistency:
Life Planner:
13 months 92.4 % 92.4 % 92.2 % 92.2 % 92.0 %
25 months 85.3 % 84.7 % 84.0 % 83.2 % 83.1 %
Gibraltar Life (4):
13 months 95.2 % 95.2 % 95.0 % 94.8 % 94.3 %
25 months 90.8 % 90.1 % 89.2 % 88.7 % 88.0 %
Number of Life Planners at end of period:
Japan 4,446 4,454 4,317 4,337 4,310
All other countries 1,478 1,524 1,489 1,580 1,546
Total Life Planners 5,924 5,978 5,806 5,917 5,856
Gibraltar Life Consultants 6,821 6,689 6,648 6,736 6,808
__________
(1) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 110 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.
(2) Net of reinsurance.
(3) Direct business only; policy count includes annuities.
(4) Reflects business sold by Life Consultants and Independent Agents.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
STATEMENTS OF OPERATIONS - CORPORATE AND OTHER
(in millions)
2022 2023 Year-to-date
4Q 1Q 2Q 3Q 4Q 2022 2023 % change
Revenues (1):
Premiums (7) (4) (4) (3) (5) (22) (16) 27%
Policy charges and fee income (12) (13) (13) (14) (13) (54) (53) 2%
Net investment income 167 189 173 180 192 607 734 21%
Asset management fees, commissions and other income 142 (56) (102) (118) 79 (106) (197) -86%
Total revenues 290 116 54 45 253 425 468 10%
Benefits and expenses (1):
Insurance and annuity benefits 4 (5) — (4) (2) — (11) —%
Change in estimates of liability for future policy benefits — — — — — — — —
Interest credited to policyholders' account balances 34 34 31 25 23 137 113 -18%
Interest expense 209 152 179 165 155 723 651 -10%
Deferral of acquisition costs 9 19 30 24 24 41 97 137%
Amortization of acquisition costs (8) (9) (9) (9) (10) (39) (37) 5%
General and administrative expenses 567 410 350 348 719 1,240 1,827 47%
Total benefits and expenses 815 601 581 549 909 2,102 2,640 26%
Adjusted operating loss before income taxes (525) (485) (527) (504) (656) (1,677) (2,172) -30%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses and goodwill impairment and certain components of consideration for a business acquisition, which are recognized as compensation expense over the requisite service periods. Revenues and Benefits and expenses include consolidating adjustments.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
INVESTMENT PORTFOLIO COMPOSITION
(in millions)
December 31, 2023 December 31, 2022
Closed PFI Excluding Closed PFI Excluding
Total Block Closed Block Division Total Block Closed Block Division
Portfolio Division Amount % of Total Portfolio Division Amount % of Total
241,222 20,483 220,739 58.3 % 242,246 21,140 221,106 60.8 %
— — — 0.0 % 1,229 — 1,229 0.3 %
74,542 10,003 64,539 17.0 % 64,745 8,931 55,814 15.4 %
— — — 0.0 % 67 — 67 0.0 %
8,785 887 7,898 2.1 % 5,738 900 4,838 1.3 %
3,168 — 3,168 0.8 % 2,844 — 2,844 0.8 %
7,634 1,970 5,664 1.5 % 6,404 1,733 4,671 1.3 %
58,786 7,769 51,017 13.5 % 56,608 7,926 48,682 13.4 %
10,047 3,479 6,568 1.7 % 10,046 3,637 6,409 1.8 %
19,036 4,513 14,523 3.8 % 17,531 4,254 13,277 3.7 %
4,992 232 4,760 1.3 % 4,573 337 4,236 1.2 %
428,212 49,336 378,876 100.0 % 412,031 48,858 363,173 100.0 %
6,521 — 6,521 5,410 — 5,410
434,733 49,336 385,397 417,441 48,858 368,583
Fixed Maturities by Credit Quality (3)(5): December 31, 2023 December 31, 2022
PFI Excluding Closed Block Division PFI Excluding Closed Block Division
Gross Gross Gross Gross
Amortized Unrealized Unrealized Allowance for Fair Amortized Unrealized Unrealized Allowance for Fair
Cost Gains Losses Credit Losses Value % of Total Cost Gains Losses Credit Losses Value % of Total
184,490 6,710 15,855 1 175,344 79.4 % 189,939 6,918 18,145 — 178,712 80.8 %
40,517 1,040 3,535 — 38,022 17.2 % 39,388 534 5,212 — 34,710 15.7 %
225,007 7,750 19,390 1 213,366 96.6 % 229,327 7,452 23,357 — 213,422 96.5 %
5,237 154 240 — 5,151 2.3 % 5,416 66 625 — 4,857 2.2 %
1,765 50 99 53 1,663 0.8 % 2,362 39 287 1 2,113 1.0 %
479 13 63 7 422 0.2 % 614 10 141 8 475 0.2 %
224 4 16 75 137 0.1 % 318 9 63 25 239 0.1 %
7,705 221 418 135 7,373 3.4 % 8,710 124 1,116 34 7,684 3.5 %
232,712 7,971 19,808 136 220,739 100.0 % 238,037 7,576 24,473 34 221,106 100.0 %
17,993 244 1,693 — 16,544 25.6 % 16,111 126 2,145 — 14,092 25.2 %
40,382 889 2,959 — 38,312 59.4 % 36,773 406 4,307 — 32,872 58.9 %
58,375 1,133 4,652 — 54,856 85.0 % 52,884 532 6,452 — 46,964 84.1 %
5,342 119 260 5 5,196 8.0 % 5,522 38 538 — 5,022 9.0 %
3,155 28 90 2 3,091 4.8 % 2,654 11 148 — 2,517 4.5 %
1,283 21 69 3 1,232 1.9 % 1,307 7 117 16 1,181 2.1 %
158 17 5 6 164 0.3 % 160 22 1 51 130 0.3 %
9,938 185 424 16 9,683 15.0 % 9,643 78 804 67 8,850 15.9 %
68,313 1,318 5,076 16 64,539 100.0 % 62,527 610 7,256 67 55,814 100.0 %
(1) In the the third quarter of 2023, the Company changed its intent to hold a portion of its held-to-maturity portfolio which will be redeemed as part of a recently announced reinsurance transaction. As a result, the entire held-to-maturity portfolio was reclassified to fixed maturities available-for-sale. On an amortized cost basis, net of allowance, as of December 31, 2022, includes 1,149 million (fair value, 1,299 million) and 67 million (fair value, 71 million) of public and private fixed maturities, respectively, classified as “1” highest quality and 80 million (fair value, 85 million) and 0 million (fair value, 0 million) of public and private fixed maturities, respectively, classified as “2” high quality securities based on the NAIC designations.
(2) Other invested assets consist of investments in limited partnerships and limited liability companies (“LPs/LLCs”), investment real estate held through direct ownership, derivative instruments and other miscellaneous investments.
(3) Excludes (i) assets of our investment management operations, including assets managed for third parties, (ii) derivative operations and (iii) those assets classified as "Separate account assets" on our balance sheet.
(4) Includes invested assets of our investment management and derivative operations. Excludes assets of our investment management operations that are managed for third parties and those assets classified as “Separate account assets” on our balance sheet.
(5) Excludes fixed maturity securities classified as trading.
(6) Reflects equivalent ratings for investments of the international operations. Includes, as of December 31, 2023 and December 31, 2022, 639 securities with amortized cost of 7,242 million (fair value 7,227 million) and 422 securities with amortized cost of 4,836 million (fair value 4,610 million), respectively, that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

All values are in US Dollars.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
INVESTMENT PORTFOLIO COMPOSITION - JAPANESE INSURANCE OPERATIONS AND EXCLUDING JAPANESE INSURANCE OPERATIONS (1)
(in millions)
December 31, 2023 December 31, 2022
Amount % of Total Amount % of Total
Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value 113,737 68.2 % 112,013 68.4 %
Public, held-to-maturity, at amortized cost, net of allowance — 0.0 % 1,229 0.7 %
Private, available-for-sale, at fair value 20,891 12.5 % 19,268 11.8 %
Private, held-to-maturity, at amortized cost, net of allowance — 0.0 % 67 0.0 %
Fixed maturities, trading, at fair value 669 0.4 % 612 0.4 %
Assets supporting experience-rated contractholder liabilities, at fair value 3,168 1.9 % 2,844 1.7 %
Equity securities, at fair value 1,614 1.0 % 1,806 1.1 %
Commercial mortgage and other loans, at book value, net of allowance 17,980 10.8 % 18,080 11.0 %
Policy loans, at outstanding balance 2,670 1.6 % 2,607 1.6 %
Other invested assets (3) 5,617 3.4 % 5,272 3.2 %
Short-term investments, net of allowance 421 0.2 % 100 0.1 %
Total 166,767 100.0 % 163,898 100.0 %
December 31, 2023 December 31, 2022
Amount % of Total Amount % of Total
Excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value 107,002 50.4 % 109,093 54.8 %
Public, held-to-maturity, at amortized cost — 0.0 % — 0.0 %
Private, available-for-sale, at fair value 43,648 20.7 % 36,546 18.3 %
Private, held-to-maturity, at amortized cost — 0.0 % — 0.0 %
Fixed maturities, trading, at fair value 7,229 3.4 % 4,226 2.1 %
Assets supporting experience-rated contractholder liabilities, at fair value — 0.0 % — 0.0 %
Equity securities, at fair value 4,050 1.9 % 2,865 1.4 %
Commercial mortgage and other loans, at book value, net of allowance 33,037 15.6 % 30,602 15.4 %
Policy loans, at outstanding balance 3,898 1.8 % 3,802 1.9 %
Other invested assets, net of allowance (3) 8,906 4.2 % 8,005 4.0 %
Short-term investments, net of allowance 4,339 2.0 % 4,136 2.1 %
Total 212,109 100.0 % 199,275 100.0 %
__________
(1) Excludes Closed Block division.
(2) Excludes assets classified as "Separate account assets" on our balance sheet.
(3) Other invested assets consist of investments in LPs/LLCs, investment real estate held through direct ownership, derivative instruments and other miscellaneous investments.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
INVESTMENT RESULTS (1)
(in millions)
Three Months Ended December 31,
2023 2022
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (6) Amount Yield (6) Amount
General Account (2)
Fixed maturities (3) 4.13 % 3,074 (375) 3.97 % 2,873 (185)
Equity securities 3.71 % 47 1 4.17 % 48 —
Commercial mortgage and other loans 4.10 % 513 (123) 3.82 % 458 (47)
Policy loans 4.56 % 74 — 4.40 % 69 —
Short-term investments and cash equivalents 4.70 % 199 1 4.63 % 169 —
Gross investment income before investment expenses 4.15 % 3,907 (496) 3.89 % 3,617 (232)
Investment expenses (4) -0.12 % (210) — -0.12 % (192) —
Subtotal 4.03 % 3,697 (496) 3.77 % 3,425 (232)
Other investments (3)(4) 256 50 153 (809)
Investment results of other entities and operations (5) 77 (27) 64 (17)
Less: investment income related to adjusted operating income reconciling items (111) (159)
Total 3,919 (473) 3,483 (1,058)
Twelve Months Ended December 31,
2023 2022
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (6) Amount Yield (6) Amount
General Account (2)
Fixed maturities (3) 4.13 % 12,222 (960) 3.71 % 10,867 (1,086)
Equity securities 3.09 % 156 2 2.59 % 123 —
Commercial mortgage and other loans 4.01 % 1,948 (228) 3.73 % 1,807 (137)
Policy loans 4.59 % 290 — 4.52 % 283 —
Short-term investments and cash equivalents 5.34 % 842 3 2.75 % 371 (5)
Gross investment income before investment expenses 4.15 % 15,458 (1,183) 3.68 % 13,451 (1,228)
Investment expenses (4) -0.13 % (846) — -0.14 % (631) —
Subtotal 4.02 % 14,612 (1,183) 3.54 % 12,820 (1,228)
Other investments (3)(4) 1,038 (2,052) 952 (3,248)
Investment results of other entities and operations (5) 256 — 289 239
Less: investment income related to adjusted operating income reconciling items (609) (877)
Total 15,297 (3,235) 13,184 (4,237)
________
(1) Excludes Closed Block division.
(2) Excludes commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders, assets of our investment management operations, including assets that are managed for third parties and assets classified as "Separate account assets" on our balance sheet.
(3) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.
(4) Prior period amounts have been reclassified to conform to current period presentation.
(5) Includes invested income of commercial loans, assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment management operations.
(6) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. The denominator in the yield percentage includes assets "held-for-sale" as of March 31, 2022 and December 31, 2021. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS
(in millions)
Three Months Ended December 31,
2023 2022
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (1) Amount Yield (1) Amount
Japanese Insurance Operations:
Fixed maturities (2) 2.96 % 1,023 52 2.80 % 968 (1)
Equity securities 5.97 % 24 — 6.05 % 26 —
Commercial mortgage and other loans 3.74 % 166 (56) 3.66 % 165 (10)
Policy loans 3.86 % 25 — 3.85 % 24 —
Short-term investments and cash equivalents 4.28 % 23 — 4.08 % 13 (1)
Gross investment income before investment expenses 3.10 % 1,261 (4) 2.96 % 1,196 (12)
Investment expenses -0.12 % (77) — -0.13 % (84) —
Subtotal 2.98 % 1,184 (4) 2.83 % 1,112 (12)
Other investments (2) 93 530 66 (87)
Total 1,277 526 1,178 (99)
Twelve Months Ended December 31,
2023 2022
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (1) Amount Yield (1) Amount
Japanese Insurance Operations:
Fixed maturities (2) 2.92 % 4,004 240 2.75 % 3,831 232
Equity securities 3.61 % 61 — 3.59 % 67 —
Commercial mortgage and other loans 3.70 % 649 (103) 3.67 % 686 (22)
Policy loans 3.88 % 99 — 3.90 % 99 —
Short-term investments and cash equivalents 3.72 % 94 — 3.75 % 31 (3)
Gross investment income before investment expenses 3.03 % 4,907 137 2.89 % 4,714 207
Investment expenses -0.13 % (318) — -0.14 % (281) —
Subtotal 2.90 % 4,589 137 2.75 % 4,433 207
Other investments (2) 331 (396) 208 (2,164)
Total 4,920 (259) 4,641 (1,957)
__________
(1) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.
(2) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS (1)
(in millions)
Three Months Ended December 31,
2023 2022
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (5) Amount Yield (5) Amount
Excluding Japanese Insurance Operations (2):
Fixed maturities (3) 7.84 % 2,051 (427) 5.04 % 1,905 (184)
Equity securities 2.65 % 23 1 3.10 % 22 —
Commercial mortgage and other loans 4.29 % 347 (67) 3.91 % 293 (37)
Policy loans 5.03 % 49 — 4.77 % 45 —
Short-term investments and cash equivalents 4.74 % 176 1 4.54 % 156 1
Gross investment income before investment expenses 4.96 % 2,646 (492) 4.61 % 2,421 (220)
Investment expenses (4) -0.12 % (133) — -0.10 % (108) —
Subtotal 4.84 % 2,513 (492) 4.51 % 2,313 (220)
Other investments (3)(4) 163 (480) 87 (722)
Total 2,676 (972) 2,400 (942)
Twelve Months Ended December 31,
2023 2022
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (5) Amount Yield (5) Amount
Excluding Japanese Insurance Operations (2):
Fixed maturities (3) 5.18 % 8,218 (1,200) 4.56 % 7,036 (1,318)
Equity securities 2.82 % 95 2 1.95 % 56 —
Commercial mortgage and other loans 4.19 % 1,299 (125) 3.77 % 1,121 (115)
Policy loans 5.07 % 191 — 4.94 % 184 —
Short-term investments and cash equivalents 5.54 % 748 3 2.70 % 340 (2)
Gross investment income before investment expenses 5.01 % 10,551 (1,320) 4.31 % 8,737 (1,435)
Investment expenses (4) -0.13 % (528) — -0.14 % (350) —
Subtotal 4.88 % 10,023 (1,320) 4.17 % 8,387 (1,435)
Other investments (3)(4) 707 (1,656) 744 (1,084)
Total 10,730 (2,976) 9,131 (2,519)
__________
(1) Excludes Closed Block division.
(2) Excludes commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders, assets of our investment management operations, including assets that are managed for third parties and assets classified as "Separate account assets" on our balance sheet.
(3) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.
(4) Prior period amounts have been reclassified to conform to current period presentation.
(5) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. The denominator in the yield percentage includes assets "held-for-sale" as of March 31, 2022 and December 31, 2021. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Twelve Months Ended December 31, 2022
Reconciling Items Reconciling Items
Total realized investment gains (losses), net, and related charges and adjustments Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums — — 1 1,675 464 — — 27,364 34,370 — — (1) 1,699 407 — — 36,475
Policy charges and fee income 237 — 66 — — — — 4,527 4,275 120 — 162 — 58 — — 4,615
Net investment income (18) — — 1,959 627 — — 17,865 13,184 (23) — — 1,976 900 — — 16,037
Realized investment gains (losses), net (3) (3,442) — — (380) (82) — — (3,615) 847 (4,706) — — (270) (378) — — (4,507)
Asset management fees, commissions and other income 1,127 — — 412 468 (85) — 7,782 6,869 (1,475) — — (447) (279) 2 — 4,670
Change in value of market risk benefits, net of related hedging gains (losses) — 56 — — — — — 56 — — (443) — — 34 — — (409)
Total revenues (2,096) 56 67 3,666 1,477 (85) — 53,979 59,545 (6,084) (443) 161 2,958 742 2 — 56,881
Benefits and expenses:
Insurance and annuity benefits (105) — (2) 3,362 748 — — 32,000 37,637 207 — (6) 2,543 633 — — 41,014
Change in estimates of liability for future policy benefits 52 — (41) — 76 — — 337 951 154 — (475) — 24 — — 654
Interest credited to policyholders' account balances 501 — — 118 188 — — 3,983 2,662 (156) — — 121 (434) — — 2,193
Interest expense — — — — (4) — — 1,762 1,589 — — — 9 (2) — — 1,596
Deferral of acquisition costs — — — — — — — (2,328) (2,155) — — — — — — — (2,155)
Amortization of acquisition costs 29 — — 13 — — — 1,459 1,381 37 — — 14 1 — — 1,433
Goodwill impairment — — — — — — 177 177 — — — — — — — 903 903
General and administrative expenses — — — 273 120 (17) 41 13,517 12,398 — — — 289 374 38 36 13,135
Total benefits and expenses 477 — (43) 3,766 1,128 (17) 218 50,907 54,463 242 — (481) 2,976 596 38 939 58,773
__________
(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 177 million pre-tax and 140 million after-tax in the year ended December 31, 2023, and 903 million pre-tax and 713 million after-tax in the year ended December 31, 2022. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.
(3) Includes realized gains and losses from sales of funds withheld assets not passed back to reinsurers of (146) million for year ended December 31, 2023. Also includes changes in the value of the funds withheld embedded derivatives associated with available-for-sale securities of (254) million and certain derivatives of 25 million for year ended December 31, 2023.

All values are in US Dollars.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended December 31, 2022
Reconciling Items Reconciling Items
Total realized investment gains (losses), net, and related charges and adjustments Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums — — 2 447 106 — — 6,919 5,904 — — 1 451 108 — — 6,464
Policy charges and fee income 142 — 7 — — — — 1,208 1,100 77 — 21 — — — — 1,198
Net investment income (4) — — 468 115 — — 4,498 3,483 (5) — — 468 164 — — 4,110
Realized investment gains (losses), net (3) (510) — — (19) 41 — — (492) 169 (1,200) — — (339) (27) — — (1,397)
Asset management fees, commissions and other income 663 — — 229 195 (34) — 2,735 1,550 78 — — 174 646 (19) — 2,429
Change in value of market risk benefits, net of related hedging gains (losses) — 216 — — — — — 216 — — 629 — — — — — 629
Total revenues 291 216 9 1,125 457 (34) — 15,084 12,206 (1,050) 629 22 754 891 (19) — 13,433
Benefits and expenses:
Insurance and annuity benefits (122) — (9) 1,072 182 — — 8,253 6,614 (128) — 5 678 842 — — 8,011
Change in estimates of liability for future policy benefits 18 — 96 — (28) — — 106 50 13 — (7) — 1 — — 57
Interest credited to policyholders' account balances 73 — — 29 43 — — 981 735 (20) — — 30 53 — — 798
Interest expense — — — — (1) — — 441 417 — — — 5 (2) — — 420
Deferral of acquisition costs — — — — — — — (637) (539) — — — — — — — (539)
Amortization of acquisition costs 8 — — 3 — — — 367 328 9 — (1) 4 1 — — 341
Goodwill impairment — — — — — — 177 177 — — — — — — — 903 903
General and administrative expenses — — — 71 37 (8) 13 3,734 3,372 — — — 77 25 (1) 9 3,482
Total benefits and expenses (23) — 87 1,175 233 (8) 190 13,422 10,977 (126) — (3) 794 920 (1) 912 13,473
__________
(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 177 million pre-tax and 140 million after-tax in the fourth quarter of December 31, 2023, and 903 million pre-tax and 713 million after-tax in the fourth quarter of December 31, 2022. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.
(3) Includes realized gains and losses from sales of funds withheld assets not passed back to reinsurers of (77) million for three months ended December 31, 2023. Also includes changes in the value of the funds withheld embedded derivatives associated with available-for-sale securities of (503) million and certain derivatives of 35 million for three months ended December 31, 2023.

All values are in US Dollars.

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Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended March 31, 2023 Three Months Ended June 30, 2023
Reconciling Items Reconciling Items
Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums 8,833 — — — 406 124 — — 9,363 6,368 — — — 430 111 — — 6,909
Policy charges and fee income 1,073 37 — 24 — — — — 1,134 1,032 46 — (5) — — — — 1,073
Net investment income 3,671 (5) — — 481 173 — — 4,320 3,814 (4) — — 499 167 — — 4,476
Realized investment gains (losses), net 137 105 — — (17) (8) — — 217 109 (911) — — (113) (23) — — (938)
Asset management fees, commissions and other income 1,390 375 — — 101 89 (19) — 1,936 1,321 366 — — 139 146 (10) — 1,962
Change in value of market risk benefits, net of related hedging gains (losses) — — 75 — — — — — 75 — — 16 — — — — — 16
Total revenues 15,104 512 75 24 971 378 (19) — 17,045 12,644 (503) 16 (5) 955 401 (10) — 13,498
Benefits and expenses:
Insurance and annuity benefits 9,588 (32) — 4 875 188 — — 10,623 6,931 (42) — (1) 900 176 — — 7,964
Change in estimates of liability for future policy benefits 22 24 — (28) — 7 — — 25 159 8 — (1) — 89 — — 255
Interest credited to policyholders' account balances 756 144 — — 30 51 — — 981 780 289 — — 29 51 — — 1,149
Interest expense 441 — — — 1 (1) — — 441 461 — — — — (2) — — 459
Deferral of acquisition costs (569) — — — — — — — (569) (546) — — — — — — — (546)
Amortization of acquisition costs 355 7 — — 3 — — — 365 355 7 — — 4 — — — 366
General and administrative expenses 3,245 — — — 66 26 (14) 9 3,332 3,112 — — — 70 23 16 9 3,230
Total benefits and expenses 13,838 143 — (24) 975 271 (14) 9 15,198 11,252 262 — (2) 1,003 337 16 9 12,877
__________
(1) See page 39 for a definition of adjusted operating income.
(2) Represents adjustments not included in the above reconciling items. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments.

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Table of Contents

Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended September 30, 2023
Reconciling Items
Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums 3,659 — — (1) 392 123 — — 4,173
Policy charges and fee income 1,060 12 — 40 — — — — 1,112
Net investment income 3,893 (5) — — 511 172 — — 4,571
Realized investment gains (losses), net 47 (2,126) — — (231) (92) — — (2,402)
Asset management fees, commissions and other income 1,467 (277) — — (57) 38 (22) — 1,149
Change in value of market risk benefits, net of related hedging gains (losses) — — (251) — — — — — (251)
Total revenues 10,126 (2,396) (251) 39 615 241 (22) — 8,352
Benefits and expenses:
Insurance and annuity benefits 4,348 91 — 4 515 202 — — 5,160
Change in estimates of liability for future policy benefits 49 2 — (108) — 8 — — (49)
Interest credited to policyholders' account balances 804 (5) — — 30 43 — — 872
Interest expense 422 — — — (1) — — — 421
Deferral of acquisition costs (576) — — — — — — — (576)
Amortization of acquisition costs 351 7 — — 3 — — — 361
General and administrative expenses 3,122 — — — 66 34 (11) 10 3,221
Total benefits and expenses 8,520 95 — (104) 613 287 (11) 10 9,410
__________
(1) See page 39 for a definition of adjusted operating income.
(2) Represents adjustments not included in the above reconciling items. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
KEY DEFINITIONS AND FORMULAS
1. Adjusted operating income before income taxes:
Adjusted operating income is a non-GAAP measure used by the Company to evaluate segment performance and to allocate resources. Adjusted operating income excludes “Realized investment gains (losses), net, and related charges and adjustments." A significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as our tax and capital profile.
Realized investment gains (losses) within certain businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset-liability management program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are designated as trading. Adjusted operating income also excludes investment gains and losses on assets supporting experience-rated contractholder liabilities and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to ultimately accrue to contractholders. Additionally, adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income.
Adjusted operating income excludes “Change in value of market risk benefits, net of related hedging gains (losses)”, which reflects the impact from changes in current market conditions, and market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which we believe enhances the understanding of underlying performance trends. Adjusted operating income also excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations and discontinued operations and earnings attributable to noncontrolling interests, each of which is presented as a separate component of net income under GAAP. Additionally, adjusted operating income excludes other items, such as certain components of the consideration for acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments. Earnings attributable to noncontrolling interests is presented as a separate component of net income under GAAP and excluded from adjusted operating income.
Adjusted operating income does not equate to "Net income" as determined in accordance with U.S. GAAP. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described above.
2. After-tax adjusted operating income:
Adjusted operating income before taxes, as defined above, less the income tax effect applicable to adjusted operating income before taxes. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments.
3. Annualized New Business Premiums:
Premiums from new sales that are expected to be collected over a one year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers' Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Excess (unscheduled) and single premium business for the company's domestic individual life and international operations are included in annualized new business premiums based on a 10% credit. Amounts ascribed to Gibraltar Life Consultants include production by captive agents associated with the Japan operation.
4. Assets Under Administration:
Fair market value of assets in client accounts and mortgage servicing assets, which are reported on an unpaid principal balance basis, that are not included in Assets Under Management. Prudential does not receive a management fee on these assets, but may receive a fee for executing trades, custody or record keeping services, or servicing the mortgage loans. In addition, fair market value of assets for which Prudential provides non-discretionary investment advice and receives a fee.
5. Assets Under Management:
Fair market value of assets directly managed by Prudential or joint ventures of which Prudential has at least 50% ownership, and assets invested in investment options included in the Company’s products that are managed by third party sub-advised managers at the discretion of Prudential. This includes externally managed modified coinsurance for both Hartford and Allstate. It also includes the fair value of derivatives used in various portfolio management strategies related to the portfolio’s invested assets, regardless of the hedge accounting designation, but excludes direct hedges of product liabilities and expenses.
6. Book value per share of Common Stock:
GAAP equity attributed to Prudential Financial, Inc. divided by the number of common shares outstanding at end of period, on a diluted basis. Adjusted book value per common share is a non-GAAP measure. This non-GAAP measure augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations, separate from the portion that is affected by capital and currency market conditions including the removal of the associated accounting impacts of the remeasurement of certain insurance liabilities and investments that are marked to market through AOCI under GAAP, and the cumulative change in fair value of funds withheld embedded derivatives related to unrealized gains and losses on available-for-sale securities and certain derivatives. However, adjusted book value per common share is not a substitute for book value per share including AOCI determined in accordance with GAAP, and the adjustments made to derive the measure are important to an understanding of our overall financial position.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
KEY DEFINITIONS AND FORMULAS
7. Borrowings - Capital Debt:
Debt utilized to meet the capital requirements of our business.
8. Borrowings - Operating Debt:
Debt utilized for business funding to meet specific purposes, which may include activities associated with our PGIM and Assurance IQ businesses. Operating debt also consists of debt issued to finance specific portfolios of investment assets, the proceeds from which will service the debt. Specifically, this includes assets supporting reserve requirements under Regulation XXX and Guideline AXXX, as well as funding for institutional and insurance company portfolio cash flow timing differences.
9. Divested and Run-off Businesses:
Businesses that have been or will be sold or exited, including businesses that have been placed in wind down status that do not qualify for “discontinued operations” accounting treatment under U.S. GAAP.
10. Earned Premiums:
The portion of a premium, net of any amount ceded, that represents coverage already provided or that belongs to the insurer based on the part of the policy period that has passed.
11. General Account:
Includes assets of the insurance companies for which the Company bears the investment risk. These generally include assets supporting "Future Policy Benefits" and "Policyholders' Account Balances". General account assets also include assets of the parent company, Prudential Financial, Inc. and excludes assets recognized for statutory purposes that are specifically allocated to a separate account.
12. Gibraltar Life:
Includes results from the Japan operation.
13. Gibraltar Life Consultants:
Captive insurance agents for Gibraltar Life.
14. Group Insurance Benefits Ratios:
Ratio of policyholder benefits to earned premiums, policy charges and fee income.
15. Group Life Insurance and Group Disability Insurance Administrative Operating Expense Ratios:
Ratio of administrative operating expenses (excluding commissions) to gross premiums, and net policy charges and fee income.
16. Individual Retirement Strategies Account Values in General Account and Separate Account:
Amounts represent the breakdown of invested customer funds in annuities either written or reinsured by the Company.
17. Individual Retirement Strategies - Net Amounts at Risk:
Living Benefit Features - For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance.
Death Benefit Features - Net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.
18. Insurance and Annuity Benefits:
Total death benefits, annuity benefits, disability benefits, other policy benefits, and losses paid or incurred, under insurance and annuity contracts, plus the change in reserves for future policy benefits, losses and loss adjustment expenses.
19. International Life Planners:
Captive insurance Advisors in our Life Planner operations.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2023
KEY DEFINITIONS AND FORMULAS
20. Non-recourse and Limited-recourse Debt:
Limited and non-recourse borrowing is where the debt holder is only entitled to collect against the assets pledged to the debt as collateral or has very limited rights to collect against other assets.
21. Other Related Revenues:
Other related revenues include incentive fees, transaction fees, seed and co-investment results, and commercial mortgage revenues.
22. PGIM Asset Under Management Classifications:
Public Equity - Represents stock ownership interest in a corporation or partnership (excluding hedge funds) or real estate investment trust.
Public Fixed Income - Represents debt instruments that pay fixed interest and usually have a maturity (excluding mortgages).
Real Estate - Includes direct real estate equity and real estate mortgages.
Private Credit and Other Alternatives - Includes private credit, private equity, hedge funds and other alternative strategies.
Multi-Asset - Includes funds or products that invest in more than one asset class, balancing equity and fixed income funds and target date funds.
23. Policy Persistency - Group Insurance:
Percentage of the premiums in force at the end of the prior year that are still in force at the end of the period (excluding Servicemembers' Group Life Insurance and Prudential Employee Benefit Plan).
24. Policy Persistency - International Businesses:
13 month persistency represents the average percentage of face amount of policies that are still in force at their 13th policy month. 25 month persistency represents the average percentage of face amount of policies that are still in force at their 25th policy month.
25. Prudential Advisors:
Captive financial professionals in our insurance operations in the United States.
26. Prudential 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.
27. 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.
28. Wrap-Fee Products:
Investment products generating asset-based fees in which the funds of the customer are generally invested in other investment products such as mutual funds.

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Table of Contents

Prudential Financial, Inc. image35.jpg
Quarterly Financial Supplement
Fourth Quarter 2023
RATINGS AND INVESTOR INFORMATION
FINANCIAL STRENGTH RATINGS
as of February 6, 2024
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 6, 2024
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 NR
PRICOA Global Funding I:
Long-Term Senior Debt aa- AA- Aa3 AA-
* NR indicates not rated.
INVESTOR INFORMATION:
Corporate Office:
Prudential Financial, Inc.
751 Broad Street
Newark, New Jersey 07102
Common Stock:
Common Stock of Prudential Financial, Inc. is traded on the New York Stock Exchange under the symbol PRU.
For more information, please visit our website at investor.prudential.com.

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