Equibles

8-K

PRUDENTIAL FINANCIAL INC (PRU)

8-K 2023-05-02 For: 2023-05-02
View Original
Added on April 03, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________

FORM 8-K

___________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 2, 2023

___________________________

PRUDENTIAL FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

___________________________

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

751 Broad Street

Newark, NJ 07102

(Address of principal executive offices and zip code)

(973) 802-6000

(Registrant’s telephone number, including area code)

___________________________

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

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

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

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

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

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

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

Emerging growth company ☐

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

Item 2.02    Results of Operations and Financial Condition.

Prudential Financial, Inc. (the "Company") furnishes herewith, as Exhibit 99.1, a news release announcing first 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 first quarter 2023.
B. Conference Call and Related Materials. Members of the Company's senior management will hold a conference call on Wednesday, May 3, 2023 at 11:00 A.M. ET, to discuss the Company's first quarter 2023 results. Related materials are available on the Company's Investor Relations website at www.investor.prudential.com.

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

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
99.1 News release of Prudential Financial, Inc. dated May 2, 2023, announcing first quarter 2023 results (furnished and not filed).
99.2 Quarterly Financial Supplement for Prudential Financial, Inc. for first 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: May 2, 2023

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

Document

Exhibit 99.1

earningsreleaseheader1a09a.jpg

May 2, 2023

Prudential Financial, Inc. Announces

First Quarter 2023 Results

•Net income(1) attributable to Prudential Financial, Inc. of $1.462 billion or $3.93 per Common share versus net loss of $493 million or $1.33 per share for the year-ago quarter.

•After-tax adjusted operating income of $990 million or $2.66 per Common share versus $1.191 billion or $3.10 per share for the year-ago quarter.

•Book value per Common share of $85.33 versus $76.77 per share for the year-ago quarter; adjusted book value per Common share of $97.29 versus $102.09 per share for the year-ago quarter.

•Parent company highly liquid assets(2) of $4.6 billion versus $3.6 billion for the year-ago quarter.

•Assets under management(3) of $1.417 trillion versus $1.620 trillion for the year-ago quarter.

•Capital returned to shareholders of $718 million in the first quarter, including $250 million of share repurchases and $468 million of dividends, versus $837 million in the year-ago quarter. Dividends paid in the first quarter were $1.25 per Common share, representing a 5% yield on adjusted book value.

Charles Lowrey, Chairman and CEO, commented on results:

“Our first quarter operating earnings reflect underlying business growth, including the benefits from a higher interest rate environment, offset by lower variable investment and fee income, and elevated seasonal mortality experience.

We continue to make progress on our transformation to become a higher growth, less market sensitive, and more nimble company. We are advancing our programmatic M&A strategy through the recently announced asset management acquisition which will expand our alternative capabilities and generate additional fee-based revenue, and we are continuing to invest in products and solutions that will drive long-term, sustainable growth and deliver value for our customers.

As we look ahead, our rock solid balance sheet, mix of mutually enhancing businesses, and growth strategy put us in a strong position to navigate the current macroeconomic environment on behalf of our stakeholders and be a global leader in expanding access to investing, insurance, and retirement security for people around the world.”

NEWARK, N.J. – Prudential Financial, Inc. (NYSE: PRU) today reported first quarter results. Net income attributable to Prudential Financial, Inc. was $1.462 billion ($3.93 per Common share) for the first quarter of 2023, compared to a net loss of $493 million ($1.33 per Common share) for the first quarter of 2022. After-tax adjusted operating income was $990 million ($2.66 per Common share) for the first quarter of 2023, compared to $1.191 billion ($3.10 per Common share) for the first quarter of 2022.

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

RESULTS OF ONGOING OPERATIONS

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

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 $151 million for the first quarter of 2023, compared to $188 million in the year-ago quarter. This decrease primarily reflects lower asset management fees, net of related expenses, driven by a reduction in assets under management, partially offset by higher Other Related Revenues, driven by higher seed and co-investment income.

PGIM assets under management of $1.270 trillion were down 10% from the year-ago quarter, primarily resulting from higher interest rates, declines in equity markets, and net outflows. Third-party net outflows of $14.0 billion in the current quarter were driven primarily by redemptions from public fixed income strategies and reflect institutional outflows of $10.2 billion and retail outflows of $3.8 billion.

U.S. Businesses

U.S. Businesses reported adjusted operating income of $760 million for the first quarter of 2023, compared to $813 million in the year-ago quarter. This decrease primarily reflects lower net fee income and lower net investment spread results, partially offset by more favorable underwriting results.

Retirement Strategies, consisting of Institutional Retirement Strategies and Individual Retirement Strategies, reported adjusted operating income of $837 million for the first quarter of 2023, compared to $946 million in the year-ago quarter.

Institutional Retirement Strategies:

•Reported adjusted operating income of $396 million in the current quarter, compared to $515 million in the year-ago quarter. This decrease reflects lower net investment spread results, driven by lower variable investment income, partially offset by the benefits from rising interest rates and business growth.

•Account values of $253 billion, a record high, increased 6% from the year-ago quarter and reflects business growth driven by significant pension risk transfer transactions. Net outflows in the current quarter totaled $1.6 billion as withdrawals and benefits exceeded sales of $3.8 billion, including $2.8 billion of pension risk transfer and $0.5 billion of international reinsurance transactions in the quarter.

Individual Retirement Strategies:

•Reported adjusted operating income of $441 million in the current quarter, compared to $431 million in the year-ago quarter. This increase reflects higher net investment spread results, partially offset by lower fee income, net of distribution expenses and other associated costs, driven by a reduction in account values.

•Account values of $124 billion were down 27% from the year-ago quarter, reflecting the sale of a block of legacy variable annuities, market depreciation, and net outflows. Gross sales of $1.7 billion in the current quarter reflect the continued momentum from our FlexGuard products and increased sales of fixed annuity products.

Group Insurance:

•Reported adjusted operating income of $25 million in the current quarter, compared to a loss of $115 million in the year-ago quarter. This increase reflects more favorable underwriting results in both group life and disability, partially offset by lower net investment spread results, driven by lower variable investment income.

•Reported earned premiums, policy charges, and fees of $1.4 billion increased 2% from the year-ago quarter, primarily driven by growth in disability and supplemental health.

Individual Life:

•Reported a loss, on an adjusted operating income basis, of $102 million in the current quarter, compared to a loss of $18 million in the year-ago quarter. This higher loss primarily reflects lower net investment spread results, driven by lower variable investment income, and less favorable underwriting results.

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

•Sales of $149 million in the current quarter were consistent with the year-ago quarter and reflect our pivot to less market sensitive products.

International Businesses

International Businesses, consisting of Life Planner and Gibraltar Life & Other, reported adjusted operating income of $840 million for the first quarter of 2023, compared to $951 million in the year-ago quarter. This decrease primarily reflects lower net investment spread results.

Life Planner:

•Reported adjusted operating income of $522 million in the current quarter, compared to $578 million in the year-ago quarter. This decrease primarily reflects lower net investment spread results, driven by lower variable investment income, less favorable underwriting results, and a net unfavorable impact from foreign currency exchange rates.

•Constant dollar basis sales(4) of $282 million in the current quarter increased 13% from the year-ago quarter, primarily driven by growth in Brazil, as well as higher sales in Japan.

Gibraltar Life & Other:

•Reported adjusted operating income of $318 million in the current quarter, compared to $373 million in the year-ago quarter. This decrease primarily reflects lower net investment spread results.

•Constant dollar basis sales(4) of $239 million in the current quarter increased 16% from the year-ago quarter, primarily driven by the Life Consultant channel.

Corporate & Other

Corporate & Other reported a loss, on an adjusted operating income basis, of $485 million for the first quarter of 2023, compared to a loss of $416 million in the year-ago quarter. This higher loss reflects higher expenses, partially offset by higher net investment income.

NET INCOME

Net Income in the current quarter included $369 million of pre-tax net realized investment gains and related charges and adjustments, including $180 million of pre-tax net impairment and credit-related losses, $103 million of pre-tax earnings from divested and run-off businesses, $75 million of pre-tax gains related to net change in value of market risk benefits, and $48 million of pre-tax gains related to market experience updates.

Net loss for the year-ago quarter included $1.721 billion of pre-tax net realized investment losses and related charges and adjustments, largely reflecting the impacts of rising interest rates, and also $44 million of pre-tax net impairment and credit-related losses, $304 million of pre-tax losses related to net change in value of market risk benefits, $244 million of pre-tax losses from divested and run-off businesses, and $121 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, May 3, 2023, at 11:00 a.m. ET to discuss with the investment community the Company’s first quarter results. The conference call will be broadcast live over the Company’s Investor Relations website at investor.prudential.com. Please log on 15 minutes early in the event necessary software needs to be downloaded. Institutional investors, analysts, and other interested parties are invited to listen to the call by dialing one of the following numbers: (877) 407-8293 (domestic) or (201) 689-8349 (international). A replay will be available on the Investor Relations website through May 17. To access a replay via phone starting at 3:00 p.m. ET on May 3 through May 17, dial (877) 660-6853 (domestic) or (201) 612-7415 (international) and use replay code 13733990.

prurocklogoa04a.jpg

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

FORWARD-LOOKING STATEMENTS

Certain of the statements included in this release, including those regarding our strategy to become a higher growth, less market sensitive, and more nimble company, our plan to reduce historical sources of earnings volatility, the expected impact of our programmatic M&A strategy, including the planned asset management acquisition, our plan to drive long-term, sustainable growth and deliver value for our customers, and other business strategies, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. Prudential Financial, Inc.’s actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in the “Risk Factors” and “Forward-Looking Statements” sections included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. The forward-looking statements herein are subject to the risk, among others, that we will be unable to execute our strategy because of market or competitive conditions or other factors. Prudential Financial, Inc. does not undertake to update any particular forward-looking statement included in this document.

NON-GAAP MEASURES

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

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

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

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

Adjusted operating income excludes "Change in value of market risk benefits, net of related hedging gains (losses)", which reflects the impact from changes in current market conditions, and market experience updates, reflecting the

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

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) and the cumulative effect of foreign currency exchange rate remeasurements and currency translation adjustments corresponding to realized investment gains and losses. These items are excluded in order to highlight the book value attributable to our core business operations separate from the portion attributable to external and potentially volatile capital and currency market conditions.

FOOTNOTES

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

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

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

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

Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.4 trillion in assets under management as of March 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
March 31
2023 2022
Adjusted operating income (loss) before income taxes (1):
PGIM $ 151 $ 188
U.S. Businesses 760 813
International Businesses 840 951
Corporate and Other (485) (416)
Total adjusted operating income before income taxes $ 1,266 $ 1,536
Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments $ 369 $ (1,721)
Change in value of market risk benefits, net of related hedging gains (losses) 75 (304)
Market experience updates 48 121
Divested and Run-off Businesses:
Closed Block division (4) 27
Other Divested and Run-off Businesses 107 (271)
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (5) (29)
Other adjustments (2) (9) (17)
Total reconciling items, before income taxes 581 (2,194)
Income (loss) before income taxes and equity in earnings of operating joint ventures $ 1,847 $ (658)
Income Statement Data:
Net income (loss) attributable to Prudential Financial, Inc. $ 1,462 $ (493)
Income (loss) attributable to noncontrolling interests 15 (13)
Net income (loss) 1,477 (506)
Less: Earnings attributable to noncontrolling interests 15 (13)
Income (loss) attributable to Prudential Financial, Inc. 1,462 (493)
Less: Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests (3) 21
Income (loss) (after-tax) before equity in earnings of operating joint ventures 1,465 (514)
Less: Total reconciling items, before income taxes 581 (2,194)
Less: Income taxes, not applicable to adjusted operating income 106 (489)
Total reconciling items, after income taxes 475 (1,705)
After-tax adjusted operating income (1) 990 1,191
Income taxes, applicable to adjusted operating income 276 345
Adjusted operating income before income taxes (1) $ 1,266 $ 1,536
See footnotes on last page.

Page 1

Financial Highlights
(in millions, except per share data, unaudited)
Three Months Ended
March 31
2023 2022
Earnings per share of Common Stock:
Net income (loss) attributable to Prudential Financial, Inc. $ 3.93 $ (1.33)
Less: Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments 1.00 (4.54)
Change in value of market risk benefits, net of related hedging gains (losses) 0.20 (0.80)
Market experience updates 0.13 0.32
Divested and Run-off Businesses:
Closed Block division (0.01) 0.07
Other Divested and Run-off Businesses 0.29 (0.71)
Difference in earnings allocated to participating unvested share-based payment awards (0.01) 0.03
Other adjustments (2) (0.02) (0.04)
Total reconciling items, before income taxes 1.58 (5.67)
Less: Income taxes, not applicable to adjusted operating income 0.31 (1.24)
Total reconciling items, after income taxes 1.27 (4.43)
After-tax adjusted operating income $ 2.66 $ 3.10
Weighted average number of outstanding common shares (basic) 366.5 376.1
Weighted average number of outstanding common shares (diluted) 367.7 379.1
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc. $ 1,462 $ (493)
Less: Earnings allocated to participating unvested share-based payment awards 18 7
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation $ 1,444 $ (500)
After-tax adjusted operating income (1) $ 990 $ 1,191
Less: Earnings allocated to participating unvested share-based payment awards 13 17
After-tax adjusted operating income for earnings per share of Common Stock calculation (1) $ 977 $ 1,174
Prudential Financial, Inc. Equity (as of end of period):
GAAP book value (total PFI equity) at end of period $ 31,385 $ 29,289
Less: Accumulated other comprehensive income (AOCI) (3,825) (8,553)
GAAP book value excluding AOCI 35,210 37,842
Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses) (575) (1,107)
Adjusted book value $ 35,785 $ 38,949
End of period number of common shares (diluted) 367.8 381.5
GAAP book value per common share - diluted 85.33 76.77
GAAP book value excluding AOCI per share - diluted 95.73 99.19
Adjusted book value per common share - diluted 97.29 102.09
See footnotes on last page.

Page 2

Financial Highlights
(in millions, or as otherwise noted, unaudited)
Three Months Ended
March 31
2023 2022
PGIM:
PGIM:
Assets Managed by PGIM (in billions, as of end of period):
Institutional customers $ 561.2 $ 593.7
Retail customers 314.4 364.7
General account 394.2 456.2
Total PGIM $ 1,269.8 $ 1,414.6
Institutional Customers - Assets Under Management (in billions):
Gross additions, other than money market $ 13.9 $ 16.8
Net additions (withdrawals), other than money market $ (10.2) $ 0.3
Retail Customers - Assets Under Management (in billions):
Gross additions, other than money market $ 12.6 $ 20.2
Net withdrawals, other than money market $ (3.8) $ (4.6)
U.S. Businesses:
Retirement Strategies:
Institutional Retirement Strategies:
Gross additions $ 3,828 $ 2,278
Net withdrawals $ (1,646) $ (2,621)
Total account value at end of period $ 252,952 $ 239,102
Individual Retirement Strategies:
Actively-Sold Protected Investment and Income Solutions and, Discontinued Traditional VA and Guaranteed Living Benefits:
Gross sales (3) $ 1,667 $ 1,518
Sales, net of full surrenders and death benefits $ 187 $ (645)
Total account value at end of period $ 123,804 $ 168,794
Group Insurance:
Group Insurance Annualized New Business Premiums (4):
Group life $ 162 $ 180
Group disability 157 130
Total $ 319 $ 310
Individual Life:
Individual Life Insurance Annualized New Business Premiums (4):
Term life $ 23 $ 24
Universal life 17 22
Variable life 109 104
Total $ 149 $ 150
International Businesses:
International Businesses:
International Businesses Annualized New Business Premiums (4)(5):
Actual exchange rate basis $ 365 $ 461
Constant exchange rate basis $ 521 $ 456
See footnotes on last page.

Page 3

Financial Highlights
(in billions, as of end of period, unaudited)
March 31
2023 2022
Assets and Assets Under Management and Administration:
Total assets $ 709.3 $ 881.5
Assets under management (at fair market value):
PGIM $ 1,269.8 $ 1,414.6
U.S. Businesses 126.0 151.9
International Businesses 15.3 13.8
Corporate and Other 5.9 39.8
Total assets under management 1,417.0 1,620.1
Assets under administration 158.6 370.7
Total assets under management and administration $ 1,575.6 $ 1,990.8

Page 4

(1) Adjusted operating income is a non-GAAP measure of performance. See NON-GAAP MEASURES within the earnings release for additional information. Adjusted operating income, when presented at the segment level, is also a segment performance measure. This segment performance measure, while not a traditional U.S. GAAP measure, is required to be disclosed by U.S. GAAP in accordance with FASB Accounting Standard Codification (ASC) 280 – Segment Reporting. When presented by segment, we have prepared the reconciliation of adjusted operating income to the corresponding consolidated U.S. GAAP total in accordance with the disclosure requirements as articulated in ASC 280.
(2) Represents adjustments not included in the above reconciling items, including certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments.
(3) Includes Prudential FlexGuard and FlexGuard Income, Prudential Premier Investment (PPI), MyRock and all fixed annuity products. Excludes discontinued traditional variable annuities and guaranteed living benefits.
(4) Premiums from new sales are expected to be collected over a one-year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers’ Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Excess (unscheduled) and single premium business for the Company’s domestic individual life and international operations are included in annualized new business premiums based on a 10% credit.
(5) Actual amounts reflect the impact of currency fluctuations. Constant amounts reflect foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 110 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

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Document

Table of Contents

Exhibit 99.2

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

i

Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
First 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 38
RATINGS AND INVESTOR INFORMATION 41

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2023
Effective January 1, 2023, Prudential Financial, Inc. (the “Company”) adopted Accounting Standards Update 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts ("ASU 2018-12" or "LDTI"), which provides new authoritative guidance impacting the accounting and disclosure requirements for long-duration insurance and investment contracts issued by the Company. The Company adopted this guidance using the modified retrospective transition method, where permitted, for changes to the liability for future policy benefits and deferred policy acquisition costs and related balances, and the retrospective transition method, as required, for market risk benefits. The Company applied this guidance as of the transition date of January 1, 2021, and retrospectively adjusted prior period amounts for years 2021 and 2022 to reflect the new guidance.
This Quarterly Financial Supplement also reflects two segment reporting changes made by the Company effective January 1, 2023, which do not impact its consolidated financial statements in any of the periods presented:
• Assurance IQ no longer represents a separately reportable segment and is now included within the Company’s Corporate and Other operations.
• Prudential Advisors, the Company’s proprietary nationwide distribution business which was previously included in the Company’s Individual Life segment is now included within the Company’s Corporate and Other operations.
The historical results presented herein have been updated to reflect this new presentation.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2023
FINANCIAL METRICS SUMMARY
(in millions, except per share and return on equity data)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023 % change
Earnings
Adjusted operating income (loss) before income taxes:
PGIM 188 206 219 230 151 188 151 -20%
U.S. Businesses 813 573 615 710 760 813 760 -7%
International Businesses 951 692 748 814 840 951 840 -12%
Corporate and Other (416) (321) (415) (525) (485) (416) (485) -17%
Total adjusted operating income before income taxes 1,536 1,150 1,167 1,229 1,266 1,536 1,266 -18%
Income taxes, applicable to adjusted operating income 345 255 271 297 276 345 276 -20%
After-tax adjusted operating income 1,191 895 896 932 990 1,191 990 -17%
Income (loss) attributable to Prudential Financial, Inc. (493) (1,010) (92) (52) 1,462 (493) 1,462 397%
Return on Equity
Operating Return on Average Equity (based on adjusted operating income) (1) 12.0 % 9.4 % 9.8 % 10.5 % 11.2 % 12.0 % 11.2 %
Return on Average Equity (based on net income (loss)) -6.7 % -13.3 % -1.2 % -0.7 % 18.9 % -6.7 % 18.9 %
Distributions to Shareholders
Dividends paid 462 457 454 449 468 462 468 1%
Share repurchases 375 375 375 375 250 375 250 -33%
Total capital returned 837 832 829 824 718 837 718 -14%
Per Share Data
Net income (loss) (diluted) (2) (1.33) (2.71) (0.26) (0.16) 3.93 (1.33) 3.93 395%
Adjusted Operating Income (diluted) 3.10 2.34 2.37 2.49 2.66 3.10 2.66 -14%
Shareholder dividends 1.20 1.20 1.20 1.20 1.25 1.20 1.25 4%
Book value 76.77 82.92 82.83 82.48 85.33
Book value excluding AOCI and FX (3) 102.09 97.91 96.41 94.69 97.29
Shares Outstanding
Weighted average number of common shares (basic) 376.1 374.4 371.0 367.6 366.5 376.1 366.5 -3%
Weighted average number of common shares (diluted) 379.1 377.1 373.1 369.4 367.7 379.1 367.7 -3%
End of period common shares (basic) 375.7 372.6 369.1 366.0 365.9
End of period common shares (diluted) 381.5 377.9 373.8 370.9 367.8
__________
(1) Operating Return on Average Equity (based on adjusted operating income) is a non-GAAP measure and represents adjusted operating income after-tax, annualized for interim periods, divided by average Prudential Financial, Inc. equity excluding accumulated other comprehensive income and adjusted to remove amounts included for foreign currency exchange rate remeasurement as described on page 3.
(2) For the three months ended December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022 weighted average shares for basic earnings per share is used for calculating diluted earnings per share because dilutive shares and dilutive earnings per share are not applicable when a net loss is reported. As a result of the net loss attributable to Prudential Financial available to holders of Common Stock for the three months ended December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022 all potential stock options and compensation programs were considered antidilutive.
(3) AOCI represents accumulated other comprehensive income and FX represents the remeasurement of foreign currency. See page 3 for further details.

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Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2023
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023
Earnings per share of Common Stock (diluted):
After-tax adjusted operating income 3.10 2.34 2.37 2.49 2.66 3.10 2.66
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments (4.54) (6.47) (3.33) (2.50) 1.00 (4.54) 1.00
Change in value of market risk benefits, net of related hedging gains (losses) (0.80) (1.88) (0.16) 1.70 0.20 (0.80) 0.20
Market experience updates 0.32 0.98 0.34 0.07 0.13 0.32 0.13
Divested and Run-off Businesses:
Closed Block division 0.07 0.04 (0.06) (0.11) (0.01) 0.07 (0.01)
Other Divested and Run-off Businesses (0.71) 1.32 (0.14) (0.08) 0.29 (0.71) 0.29
Difference in earnings allocated to participating unvested share-based payment awards 0.03 0.01 0.02 0.02 (0.01) 0.03 (0.01)
Other adjustments (1) (0.04) — (0.03) (2.47) (0.02) (0.04) (0.02)
Total reconciling items, before income taxes (5.67) (6.00) (3.36) (3.37) 1.58 (5.67) 1.58
Income taxes, not applicable to adjusted operating income (1.24) (0.95) (0.73) (0.72) 0.31 (1.24) 0.31
Total reconciling items, after income taxes (4.43) (5.05) (2.63) (2.65) 1.27 (4.43) 1.27
Net income (loss) attributable to Prudential Financial, Inc. (1.33) (2.71) (0.26) (0.16) 3.93 (1.33) 3.93
Weighted average number of outstanding common shares (basic) 376.1 374.4 371.0 367.6 366.5 376.1 366.5
Weighted average number of outstanding common shares (diluted) 379.1 377.1 373.1 369.4 367.7 379.1 367.7
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc. (493) (1,010) (92) (52) 1,462 (493) 1,462
Less: Earnings allocated to participating unvested share-based payment awards 7 6 6 6 18 7 18
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation (500) (1,016) (98) (58) 1,444 (500) 1,444
After-tax adjusted operating income 1,191 895 896 932 990 1,191 990
Less: Earnings allocated to participating unvested share-based payment awards 17 11 12 12 13 17 13
After-tax adjusted operating income for earnings per share of Common Stock calculation 1,174 884 884 920 977 1,174 977
___________
(1) Represents adjustments not included in the above reconciling items, including a goodwill impairment that resulted in a charge in fourth quarter of 2022 related to Assurance IQ. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.

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Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2023
OTHER FINANCIAL HIGHLIGHTS
(in millions, except per share data)
2022 2023
1Q 2Q 3Q 4Q 1Q
Capitalization Data (1):
Senior Debt:
Short-term Debt 544 558 767 775 705
Long-term Debt 11,082 11,008 10,810 10,814 10,860
Junior Subordinated Long-term Debt 8,607 8,604 9,088 9,094 9,591
Prudential Financial, Inc. Equity:
Including accumulated other comprehensive income 29,289 31,334 30,962 30,593 31,385
Excluding accumulated other comprehensive income (2) 37,842 36,037 35,192 34,399 35,210
Amount included above for remeasurement of foreign currency (3) (1,107) (962) (847) (723) (575)
Excluding accumulated other comprehensive income and adjusted to remove amount
included for remeasurement of foreign currency (3) 38,949 36,999 36,039 35,122 35,785
Book Value per Share of Common Stock:
Including accumulated other comprehensive income 76.77 82.92 82.83 82.48 85.33
Excluding accumulated other comprehensive income (2) 99.19 95.36 94.15 92.74 95.73
Amount included above for remeasurement of foreign currency (3) (2.90) (2.55) (2.26) (1.95) (1.56)
Excluding accumulated other comprehensive income and adjusted to remove amount
included for remeasurement of foreign currency (3) 102.09 97.91 96.41 94.69 97.29
End of period number of common shares (diluted) 381.5 377.9 373.8 370.9 367.8
Common Stock Price Range (based on closing price):
High 121.38 121.06 105.49 110.21 104.94
Low 102.05 91.33 85.78 89.19 77.23
Close 118.17 95.68 85.78 99.46 82.74
Common Stock market capitalization (1) 44,396 35,650 31,661 36,402 30,275
__________
(1) As of end of period.
(2) Foreign currency translation adjustments and the cumulative impact of foreign currency exchange rate remeasurement, except for those items remeasured through net income (loss), are a component of accumulated other comprehensive income.
(3) Includes the cumulative impact of net gains and losses resulting from foreign currency exchange rate remeasurement and associated realized investment gains and losses included in net income (loss) and currency translation adjustments corresponding to realized investment gains and losses.

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Prudential Financial, Inc. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
OPERATIONS HIGHLIGHTS
2022 2023
1Q 2Q 3Q 4Q 1Q
Assets Under Management and Administration (in billions) (1)(2):
PGIM:
Institutional customers 593.7 560.7 536.3 549.2 561.2
Retail customers 364.7 314.3 298.1 299.6 314.4
General account 456.2 382.4 371.8 379.6 394.2
Total PGIM 1,414.6 1,257.4 1,206.2 1,228.4 1,269.8
U.S. Businesses 151.9 132.2 123.4 126.7 126.0
International Businesses 13.8 13.6 13.8 16.1 15.3
Corporate and Other 39.8 6.4 6.1 6.1 5.9
Total assets under management 1,620.1 1,409.6 1,349.5 1,377.3 1,417.0
Assets under administration 370.7 145.9 139.4 157.4 158.6
Total assets under management and administration 1,990.8 1,555.5 1,488.9 1,534.7 1,575.6
Distribution Representatives (1):
Prudential Advisors 2,835 2,817 2,774 2,616 2,627
International Life Planners 6,056 5,924 5,972 5,924 5,978
Gibraltar Life Consultants 7,022 6,910 6,861 6,821 6,689
Prudential Advisor Productivity (in thousands) 76 83 78 108 78
__________
(1) As of end of period.
(2) At fair market value.

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Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2023
COMBINED STATEMENTS OF OPERATIONS
(in millions)
2023 Year-to-date
2Q 3Q 4Q 1Q 2022 2023 % change
Revenues (1):
Premiums 5,995 15,322 5,904 8,833 7,149 8,833 24%
Policy charges and fee income 869 1,083 1,100 1,073 1,223 1,073 -12%
Net investment income 3,241 3,047 3,483 3,671 3,413 3,671 8%
Asset management fees, commissions and other income 2,852 1,628 1,719 1,527 1,517 1,527 1%
Total revenues 12,957 21,080 12,206 15,104 13,302 15,104 14%
Benefits and expenses (1):
Insurance and annuity benefits 7,135 15,925 6,614 9,588 7,963 9,588 20%
Change in estimates of liability for future policy benefits 909 59 50 22 (67) 22 133%
Interest credited to policyholders' account balances 654 628 735 756 645 756 17%
Interest expense 401 407 417 441 364 441 21%
Deferral of acquisition costs (513) (531) (539) (569) (572) (569) 1%
Amortization of acquisition costs 345 355 328 355 353 355 1%
General and administrative expenses 2,876 3,070 3,372 3,245 3,080 3,245 5%
Total benefits and expenses 11,807 19,913 10,977 13,838 11,766 13,838 18%
Adjusted operating income before income taxes 1,150 1,167 1,229 1,266 1,536 1,266 -18%
Income taxes, applicable to adjusted operating income 255 271 297 276 345 276 -20%
After-tax adjusted operating income 895 896 932 990 1,191 990 -17%
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments (2,438) (1,243) (924) 369 (1,721) 369 121%
Change in value of market risk benefits, net of related hedging gains (losses) (710) (58) 629 75 (304) 75 125%
Market experience updates 371 125 25 48 121 48 -60%
Divested and Run-off Businesses:
Closed Block division 16 (21) (40) (4) 27 (4) -115%
Other Divested and Run-off Businesses 499 (53) (29) 107 (271) 107 139%
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests 44 (33) (18) (5) (29) (5) 83%
Other adjustments (2) — (10) (912) (9) (17) (9) 47%
Total reconciling items, before income taxes (2,218) (1,293) (1,269) 581 (2,194) 581 126%
Income taxes, not applicable to adjusted operating income (374) (282) (302) 106 (489) 106 122%
Total reconciling items, after income taxes (1,844) (1,011) (967) 475 (1,705) 475 128%
Income (loss) before income taxes and equity in earnings of operating joint ventures (1,068) (126) (40) 1,847 (658) 1,847 381%
Income tax expense (benefit) (119) (11) (5) 382 (144) 382 365%
Income (loss) before equity in earnings of operating joint ventures (949) (115) (35) 1,465 (514) 1,465 385%
Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests (61) 23 (17) (3) 21 (3) -114%
Income (loss) attributable to Prudential Financial, Inc. (1,010) (92) (52) 1,462 (493) 1,462 397%
Earnings attributable to noncontrolling interests (7) (16) 8 15 (13) 15 215%
Net income (loss) (1,017) (108) (44) 1,477 (506) 1,477 392%
Less: Income (loss) attributable to noncontrolling interests (7) (16) 8 15 (13) 15 215%
Net income (loss) attributable to Prudential Financial, Inc. (1,010) (92) (52) 1,462 (493) 1,462 397%
__________
(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 and 37 for reconciliation.
(2) Represents adjustments not included in the above reconciling items, including a goodwill impairment related to Assurance IQ that resulted in a charge of 903 million pre-tax and 713 million after-tax in the fourth quarter of 2022. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.

All values are in US Dollars.

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Prudential Financial, Inc. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
CONSOLIDATED BALANCE SHEETS
(in millions)
03/31/2022 06/30/2022 09/30/2022 12/31/2022 03/31/2023
Assets:
Investments:
Fixed maturities, available-for-sale, at fair value
(net of allowance for credit losses $192; $109; $151; $138; $269) (amortized cost $332,640; $319,003; $325,957; $335,447; $338,604) 344,957 306,655 295,841 307,719 320,512
Fixed maturities, held-to-maturity, at amortized cost, net of allowance for credit losses
(net of allowance for credit losses $4; $3; $2; $2; $2) (fair value $1,679; $1,475; $1,371; $1,455; $1,449) 1,432 1,280 1,199 1,296 1,277
Fixed maturities, trading, at fair value
(amortized cost $8,262; $7,354; $7,268; $7,303; $7,427) 7,724 6,272 5,690 5,951 6,269
Assets supporting experience-rated contractholder liabilities, at fair value 3,184 2,785 2,580 2,844 2,958
Equity securities, at fair value
(cost $4,872; $4,502; $5,378; $5,306; $5,432) 7,397 6,402 6,882 7,150 7,573
Commercial mortgage and other loans
(net of allowance for credit losses $121; $196; $218; $203; $221) 59,304 56,840 56,896 56,745 56,778
Policy loans 10,207 10,024 9,920 10,046 10,041
Other invested assets
(net of allowance for credit losses $2; $1; $1; $1; $1) 21,540 21,310 21,050 21,099 21,491
Short-term investments
(net of allowance for credit losses $0; $0; $5; $6; $7) 4,592 6,828 5,181 4,591 5,177
Total investments 460,337 418,396 405,239 417,441 432,076
Cash and cash equivalents 14,086 14,359 20,104 17,251 17,425
Accrued investment income 2,838 2,798 2,888 3,012 3,095
Deferred policy acquisition costs 19,868 20,092 20,038 20,546 20,741
Value of business acquired 723 590 560 621 601
Market risk benefit assets 920 869 806 800 976
Income tax assets 135 — — — —
Other assets
(net of allowance for credit losses $20; $21; $21; $26; $26) (1) 152,932 36,158 32,912 31,679 32,061
Separate account assets 229,621 205,613 194,525 197,679 202,294
Total assets 881,460 698,875 677,072 689,029 709,269
Liabilities:
Future policy benefits 297,793 266,090 255,135 261,773 273,586
Policyholders' account balances 122,690 130,408 131,533 135,624 138,139
Market risk benefit liabilities 8,079 7,293 6,488 5,864 6,096
Securities sold under agreements to repurchase 9,085 8,006 8,223 6,589 6,617
Cash collateral for loaned securities 4,771 5,741 5,865 6,100 5,975
Income tax liabilities — 70 403 277 517
Senior short-term debt 544 558 767 775 705
Senior long-term debt 11,082 11,008 10,810 10,814 10,860
Junior subordinated long-term debt 8,607 8,604 9,088 9,094 9,591
Other liabilities
(net of allowance for credit losses $19; $18; $17; $18; $17) (1) 158,939 23,235 22,386 22,518 22,027
Notes issued by consolidated variable interest entities 260 232 218 374 415
Separate account liabilities 229,621 205,613 194,525 197,679 202,294
Total liabilities 851,471 666,858 645,441 657,481 676,822
Equity:
Accumulated other comprehensive loss (8,553) (4,703) (4,230) (3,806) (3,825)
Other equity 37,842 36,037 35,192 34,399 35,210
Total Prudential Financial, Inc. equity 29,289 31,334 30,962 30,593 31,385
Noncontrolling interests 700 683 669 955 1,062
Total equity 29,989 32,017 31,631 31,548 32,447
Total liabilities and equity 881,460 698,875 677,072 689,029 709,269
__________
(1) March 31, 2022 balances include the carrying amounts of Assets and Liabilities "held-for-sale" related to the April 2022 dispositions of the Full Service Retirement Business and a portion of Individual Retirement Strategies' Traditional Variable Annuity Block of Business.

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Prudential Financial, Inc. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
COMBINING BALANCE SHEETS
(in millions)
As of March 31, 2023
Consolidated PFI Closed Block Division PFI Excluding Closed Block Division PGIM U.S. Businesses International Businesses Corporate and Other
Assets:
Total investments 432,076 50,134 381,942 4,351 186,321 171,867 19,403
Deferred policy acquisition costs 20,741 178 20,563 — 11,863 9,093 (393)
Other assets 54,158 1,071 53,087 4,341 28,948 12,019 7,779
Separate account assets 202,294 — 202,294 39,261 166,680 — (3,647)
Total assets 709,269 51,383 657,886 47,953 393,812 192,979 23,142
Liabilities:
Future policy benefits 273,586 44,119 229,467 — 104,179 116,364 8,924
Policyholders' account balances 138,139 4,572 133,567 — 77,484 48,050 8,033
Debt 21,156 — 21,156 1,715 7,828 84 11,529
Other liabilities 41,647 4,172 37,475 2,952 20,444 9,826 4,253
Separate account liabilities 202,294 — 202,294 39,261 166,680 — (3,647)
Total liabilities 676,822 52,863 623,959 43,928 376,615 174,324 29,092
Equity:
Accumulated other comprehensive income (loss) (3,825) (134) (3,691) (127) (1,945) 400 (2,019)
Other equity 35,210 (1,358) 36,568 2,644 19,056 18,224 (3,356)
Total Prudential Financial, Inc. equity 31,385 (1,492) 32,877 2,517 17,111 18,624 (5,375)
Noncontrolling interests 1,062 12 1,050 1,508 86 31 (575)
Total equity 32,447 (1,480) 33,927 4,025 17,197 18,655 (5,950)
Total liabilities and equity 709,269 51,383 657,886 47,953 393,812 192,979 23,142
As of December 31, 2022
Consolidated PFI Closed Block Division PFI Excluding Closed Block Division PGIM U.S. Businesses International Businesses Corporate and Other
Assets:
Total investments 417,441 48,858 368,583 3,811 179,299 165,831 19,642
Deferred policy acquisition costs 20,546 181 20,365 — 11,809 8,941 (385)
Other assets (1) 53,363 1,895 51,468 4,498 27,009 12,019 7,942
Separate account assets 197,679 — 197,679 40,055 161,267 — (3,643)
Total assets 689,029 50,934 638,095 48,364 379,384 186,791 23,556
Liabilities:
Future policy benefits 261,773 44,414 217,359 — 99,948 109,018 8,393
Policyholders' account balances 135,624 4,606 131,018 — 75,928 46,903 8,187
Debt 20,683 — 20,683 1,726 7,850 84 11,023
Other liabilities (1) 41,722 3,479 38,243 2,813 20,238 11,497 3,695
Separate account liabilities 197,679 — 197,679 40,055 161,267 — (3,643)
Total liabilities 657,481 52,499 604,982 44,594 365,231 167,502 27,655
Equity:
Accumulated other comprehensive income (loss) (3,806) (214) (3,592) (145) (3,034) 1,590 (2,003)
Other equity 34,399 (1,363) 35,762 2,613 17,103 17,668 (1,622)
Total Prudential Financial, Inc. equity 30,593 (1,577) 32,170 2,468 14,069 19,258 (3,625)
Noncontrolling interests 955 12 943 1,302 84 31 (474)
Total equity 31,548 (1,565) 33,113 3,770 14,153 19,289 (4,099)
Total liabilities and equity 689,029 50,934 638,095 48,364 379,384 186,791 23,556
______________
(1) Balances include the carrying amounts of Assets and Liabilities "held-for-sale" related to the April 2022 dispositions of the Full Service Retirement Business and a portion of Individual Retirement Strategies' Traditional Variable Annuity Block of Business.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
First 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 4,875 9,591 14,566 100 4,877 9,094 14,071
Operating Debt 5,584 — 6,091 511 5,583 — 6,094
Limited recourse and non-recourse borrowing 401 — 499 164 354 — 518
Total Debt 10,860 9,591 21,156 775 10,814 9,094 20,683
As of December 31, 2022
The Prudential The Prudential
Insurance Company Other Prudential Insurance Company Other
of America (1)(2) Affiliates Total Debt Financial, Inc. of America (1)(2) Affiliates Total Debt
Borrowings by sources:
Capital Debt 445 47 14,566 13,579 445 47 14,071
Operating Debt 482 — 6,091 5,608 486 — 6,094
Limited recourse and non-recourse borrowing 154 345 499 — 179 339 518
Total Debt 1,081 392 21,156 19,187 1,110 386 20,683
__________
(1) Includes Prudential Funding, LLC.
(2) Capital Debt at The Prudential Insurance Company of America includes 345 million of surplus notes as of both March 31, 2023 and December 31, 2022.

All values are in US Dollars.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2023
STATEMENTS OF OPERATIONS - PGIM
(in millions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023 % change
Revenues (1):
Premiums — — — — — — — —
Policy charges and fee income — — — — — — — —
Net investment income (4) (14) 56 56 80 (4) 80 2100%
Asset management fees, commissions and other income 930 843 851 904 818 930 818 -12%
Total revenues 926 829 907 960 898 926 898 -3%
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 6 10 14 27 27 6 27 350%
Deferral of acquisition costs (1) — (1) — (1) (1) (1) —%
Amortization of acquisition costs 1 1 1 — 1 1 1 —%
General and administrative expenses 732 612 674 703 720 732 720 -2%
Total benefits and expenses 738 623 688 730 747 738 747 1%
Adjusted operating income before income taxes 188 206 219 230 151 188 151 -20%
Total revenues 926 829 907 960 898 926 898 -3%
Less: Passthrough distribution revenue 19 29 19 19 19 19 19 —%
Less: Revenue associated with consolidations 15 (21) 8 31 32 15 32 113%
Total adjusted revenues (2) 892 821 880 910 847 892 847 -5%
Adjusted operating margin (2)(3) 21.1 % 25.1 % 24.9 % 25.3 % 17.8 % 21.1 % 17.8 %
__________
(1) Revenues exclude realized investment gains, net of losses. Benefits and expenses include charges for income attributable to noncontrolling interests and exclude certain components of the consideration for acquisitions.
(2) Not calculated in accordance with GAAP. Adjusted revenue excludes passthrough distribution revenue and revenue associated with consolidations. Adjusted operating income before income taxes as a percentage of total adjusted revenues.
(3) Reported Operating Margin based on total revenues is 16.8%, 23.9%, 24.2%, 24.8%, and 20.3% for the three months ended March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022, respectively.

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Prudential Financial, Inc. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
PGIM - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION
2023 Year-to-date
2Q 3Q 4Q 1Q 2022 2023 % change
Supplementary Revenue Information (in millions):
Analysis of revenues by type:
Asset management fees 756 742 725 720 809 720 -11%
Other related revenues (1) 17 80 113 52 19 52 174%
Service, distribution and other revenues 56 85 122 126 98 126 29%
Total PGIM revenues 829 907 960 898 926 898 -3%
Analysis of asset management fees by source:
Institutional customers 357 364 359 362 363 362 —%
Retail customers 274 256 250 243 301 243 -19%
General account 125 122 116 115 145 115 -21%
Total asset management fees 756 742 725 720 809 720 -11%
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 403.3 72.5 30.5 1.3 561.2
Retail customers 133.0 2.1 0.9 72.6 314.4
General account 261.4 55.1 73.9 — 394.2
Total 797.7 129.7 105.3 73.9 1,269.8
Public Fixed Income Real Estate Private Credit and Other Alternatives Multi-Asset Total
Institutional customers 439.9 65.4 25.8 6.4 593.7
Retail customers 158.1 1.9 0.8 74.0 364.7
General account 309.1 65.5 77.4 — 456.2
Total 907.1 132.8 104.0 80.4 1,414.6
__________
(1) Other related revenues, net of related expenses are 28 million, 51 million, 47 million, 2 million, and 8 million for the three months ended March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022, respectively.

All values are in US Dollars.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2023
PGIM - SUPPLEMENTARY ASSETS UNDER MANAGEMENT INFORMATION
(in billions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023
Institutional Customers - Assets Under Management (at fair market value):
Beginning assets under management 568.0 536.9 539.7 516.6 528.9 568.0 528.9
Additions 16.8 24.6 16.4 13.8 13.9 16.8 13.9
Withdrawals (16.5) (16.5) (15.8) (19.8) (24.1) (16.5) (24.1)
Change in market value (34.2) (46.5) (22.1) 17.0 17.2 (34.2) 17.2
Net money market flows 4.4 (3.4) (0.9) (0.7) 3.2 4.4 3.2
Other (1.6) 44.6 (0.7) 2.0 1.1 (1.6) 1.1
Ending assets under management 536.9 539.7 516.6 528.9 540.2 536.9 540.2
Affiliated institutional assets under management 56.8 21.0 19.7 20.3 21.0 56.8 21.0
Total assets managed for institutional customers at end of period 593.7 560.7 536.3 549.2 561.2 593.7 561.2
Net institutional additions (withdrawals), excluding money market activity 0.3 8.1 0.6 (6.0) (10.2) 0.3 (10.2)
Retail Customers - Assets Under Management (at fair market value):
Beginning assets under management 265.8 238.7 204.0 192.2 191.7 265.8 191.7
Additions 20.2 16.1 13.5 16.5 12.6 20.2 12.6
Withdrawals (24.8) (24.4) (18.1) (22.2) (16.4) (24.8) (16.4)
Change in market value (22.5) (33.0) (5.5) 4.2 13.6 (22.5) 13.6
Net money market flows 0.6 0.3 — 1.0 0.4 0.6 0.4
Other (0.6) 6.3 (1.7) — (0.5) (0.6) (0.5)
Ending assets under management 238.7 204.0 192.2 191.7 201.4 238.7 201.4
Affiliated retail assets under management 126.0 110.3 105.9 107.9 113.0 126.0 113.0
Total assets managed for retail customers at end of period 364.7 314.3 298.1 299.6 314.4 364.7 314.4
Net retail withdrawals, excluding money market activity (4.6) (8.3) (4.6) (5.7) (3.8) (4.6) (3.8)

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Quarterly Financial Supplement
First Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES
(in millions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023 % change
Revenues (1):
Premiums 3,172 2,896 12,038 2,895 5,268 3,172 5,268 66%
Policy charges and fee income 1,155 793 1,013 1,028 1,014 1,155 1,014 -12%
Net investment income 1,998 1,801 1,729 1,989 2,117 1,998 2,117 6%
Asset management fees, commissions and other income 616 2,139 641 584 676 616 676 10%
Total revenues 6,941 7,629 15,421 6,496 9,075 6,941 9,075 31%
Benefits and expenses (1):
Insurance and annuity benefits 4,470 4,352 13,020 4,021 6,434 4,470 6,434 44%
Change in estimates of liability for future policy benefits (79) 887 21 (9) 16 (79) 16 120%
Interest credited to policyholders' account balances 421 445 413 508 507 421 507 20%
Interest expense 198 214 197 165 251 198 251 27%
Deferral of acquisition costs (258) (251) (254) (253) (274) (258) (274) -6%
Amortization of acquisition costs 207 206 213 195 212 207 212 2%
General and administrative expenses 1,169 1,203 1,196 1,159 1,169 1,169 1,169 —%
Total benefits and expenses 6,128 7,056 14,806 5,786 8,315 6,128 8,315 36%
Adjusted operating income before income taxes 813 573 615 710 760 813 760 -7%
__________
(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. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES
(in millions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023 % change
Revenues (1):
Premiums 1,695 1,432 10,576 1,419 3,785 1,695 3,785 123%
Policy charges and fee income 483 380 346 344 332 483 332 -31%
Net investment income 1,230 1,070 1,028 1,243 1,322 1,230 1,322 7%
Asset management fees, commissions and other income 436 1,965 489 450 545 436 545 25%
Total revenues 3,844 4,847 12,439 3,456 5,984 3,844 5,984 56%
Benefits and expenses (1):
Insurance and annuity benefits 2,243 2,336 11,042 2,004 4,383 2,243 4,383 95%
Change in estimates of liability for future policy benefits (78) (466) 18 2 (42) (78) (42) 46%
Interest credited to policyholders' account balances 158 175 143 232 240 158 240 52%
Interest expense 8 15 (10) (53) 24 8 24 200%
Deferral of acquisition costs (82) (85) (83) (79) (99) (82) (99) -21%
Amortization of acquisition costs 98 94 100 81 97 98 97 -1%
General and administrative expenses 551 597 574 522 544 551 544 -1%
Total benefits and expenses 2,898 2,666 11,784 2,709 5,147 2,898 5,147 78%
Adjusted operating income before income taxes 946 2,181 655 747 837 946 837 -12%
__________
(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. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES - INSTITUTIONAL RETIREMENT STRATEGIES
(in millions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023 % change
Revenues (1):
Premiums 1,657 1,427 10,558 1,395 3,763 1,657 3,763 127%
Policy charges and fee income 8 9 11 6 8 8 8 —%
Net investment income 968 892 824 969 1,004 968 1,004 4%
Asset management fees, commissions and other income 114 94 75 109 114 114 114 —%
Total revenues 2,747 2,422 11,468 2,479 4,889 2,747 4,889 78%
Benefits and expenses (1):
Insurance and annuity benefits 2,178 2,310 11,028 1,960 4,350 2,178 4,350 100%
Change in estimates of liability for future policy benefits (83) (457) 12 (6) (44) (83) (44) 47%
Interest credited to policyholders' account balances 80 75 100 139 125 80 125 56%
Interest expense 4 (2) 6 7 10 4 10 150%
Deferral of acquisition costs (2) (3) (11) (5) (17) (2) (17) -750%
Amortization of acquisition costs 3 3 2 3 4 3 4 33%
General and administrative expenses 52 64 63 49 65 52 65 25%
Total benefits and expenses 2,232 1,990 11,200 2,147 4,493 2,232 4,493 101%
Adjusted operating income before income taxes 515 432 268 332 396 515 396 -23%
__________
(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
First Quarter 2023
U.S. BUSINESSES - RETIREMENT STRATEGIES - INSTITUTIONAL RETIREMENT STRATEGIES SALES RESULTS AND ACCOUNT VALUES
(in millions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023
Beginning total account value 245,720 239,102 234,594 238,313 251,818 245,720 251,818
Additions 2,278 3,700 13,518 12,277 3,828 2,278 3,828
Withdrawals and benefits (4,899) (3,560) (3,691) (4,248) (5,474) (4,899) (5,474)
Change in market value, interest credited and interest income (1,570) (2,389) (553) 402 1,823 (1,570) 1,823
Other (1) (2,427) (2,259) (5,555) 5,074 957 (2,427) 957
Ending total account value 239,102 234,594 238,313 251,818 252,952 239,102 252,952
Net additions (withdrawals) (2,621) 140 9,827 8,029 (1,646) (2,621) (1,646)
Amounts included in ending total account value above:
Investment-only stable value wraps 68,582 71,125 71,168 69,521 68,170
International reinsurance (2) 81,816 74,021 68,581 83,910 84,137
Group annuities and other products 88,704 89,448 98,564 98,387 100,645
Ending total account value 239,102 234,594 238,313 251,818 252,952
__________
(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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Prudential Financial, Inc. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES
(in millions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023 % change
Revenues (1):
Premiums 38 5 18 24 22 38 22 -42%
Policy charges and fee income 475 371 335 338 324 475 324 -32%
Net investment income 262 178 204 274 318 262 318 21%
Asset management fees, commissions and other income 322 1,871 414 341 431 322 431 34%
Total revenues 1,097 2,425 971 977 1,095 1,097 1,095 —%
Benefits and expenses (1):
Insurance and annuity benefits 65 26 14 44 33 65 33 -49%
Change in estimates of liability for future policy benefits 5 (9) 6 8 2 5 2 -60%
Interest credited to policyholders' account balances 78 100 43 93 115 78 115 47%
Interest expense 4 17 (16) (60) 14 4 14 250%
Deferral of acquisition costs (80) (82) (72) (74) (82) (80) (82) -3%
Amortization of acquisition costs 95 91 98 78 93 95 93 -2%
General and administrative expenses 499 533 511 473 479 499 479 -4%
Total benefits and expenses 666 676 584 562 654 666 654 -2%
Adjusted operating income before income taxes 431 1,749 387 415 441 431 441 2%
__________
(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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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2023
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES SALES RESULTS AND ACCOUNT VALUES
(in millions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023
Actively -Sold Protected Investment and Income Product Sales (1):
FlexGuard Suite 1,405 1,451 1,080 1,062 1,088 1,405 1,088
Investment Only VA (2) 89 63 46 31 32 89 32
Fixed 24 67 249 397 547 24 547
Total 1,518 1,581 1,375 1,490 1,667 1,518 1,667
Actively-Sold Protected Investment and Income Solutions (1):
Beginning total account value 18,819 19,455 18,526 19,099 21,208 18,819 21,208
Sales 1,518 1,581 1,375 1,490 1,667 1,518 1,667
Full surrenders and death benefits (89) (95) (94) (148) (191) (89) (191)
Sales, net of full surrenders and death benefits 1,429 1,486 1,281 1,342 1,476 1,429 1,476
Partial withdrawals and other benefit payments (138) (119) (124) (158) (135) (138) (135)
Net flows 1,291 1,367 1,157 1,184 1,341 1,291 1,341
Change in market value, interest credited, and other (654) (2,294) (581) 930 725 (654) 725
Policy charges (1) (2) (3) (5) (6) (1) (6)
Ending total account value, gross 19,455 18,526 19,099 21,208 23,268 19,455 23,268
Reinsurance ceded (481) (514) (637) (817) (1,079) (481) (1,079)
Ending total account value, net 18,974 18,012 18,462 20,391 22,189 18,974 22,189
Discontinued Traditional VA and Guaranteed Living Benefit Block (3):
Beginning total account value 163,486 149,339 104,612 96,691 98,814 163,486 98,814
Sales 25 17 14 7 8 25 8
Full surrenders and death benefits (2,099) (1,465) (1,131) (994) (1,297) (2,099) (1,297)
Sales, net of full surrenders and death benefits (2,074) (1,448) (1,117) (987) (1,289) (2,074) (1,289)
Partial withdrawals and other benefit payments (1,329) (875) (852) (1,075) (985) (1,329) (985)
Net flows (3,403) (2,323) (1,969) (2,062) (2,274) (3,403) (2,274)
Change in market value and other (4) (9,893) (41,786) (5,340) 4,809 4,605 (9,893) 4,605
Policy charges (851) (618) (612) (624) (609) (851) (609)
Ending total account value 149,339 104,612 96,691 98,814 100,536 149,339 100,536
__________
(1) Includes Prudential FlexGuard and FlexGuard Income, Prudential Premier Investment (PPI), MyRock and all fixed annuity products. Excludes discontinued traditional variable annuities and guaranteed living benefits.
(2) Represents variable annuities without guaranteed living benefits including Prudential Premier Investment (PPI) and MyRock.
(3) Includes Prudential Highest Daily Income, Prudential Defined Income and other legacy variable products with and without guaranteed minimum income and withdrawal benefits.
(4) Includes impact from the sale of a Traditional Variable Annuity Block of Business in second quarter of 2022.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2023
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES ACCOUNT VALUE ACTIVITY
(in millions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023
Account Values in General Account (1):
Beginning balance 20,062 20,928 19,430 20,170 22,063 20,062 22,063
Premiums and deposits 1,366 1,458 1,300 1,437 1,601 1,366 1,601
Full surrenders and death benefits (106) (225) (86) (87) (119) (106) (119)
Premiums and deposits net of full surrenders and death benefits 1,260 1,233 1,214 1,350 1,482 1,260 1,482
Partial withdrawals and other benefit payments (174) (124) (131) (167) (148) (174) (148)
Net flows 1,086 1,109 1,083 1,183 1,334 1,086 1,334
Change in market value, interest credited and other (2) 72 (2,461) (240) 619 582 72 582
Net transfers (to) from separate account (292) (145) (102) 92 (30) (292) (30)
Policy charges — (1) (1) (1) (1) — (1)
Ending balance, gross 20,928 19,430 20,170 22,063 23,948 20,928 23,948
Reinsurance ceded (481) (514) (637) (817) (1,079) (481) (1,079)
Ending balance, net 20,447 18,916 19,533 21,246 22,869 20,447 22,869
Account Values in Separate Account (1):
Beginning balance 162,243 147,866 103,708 95,620 97,959 162,243 97,959
Premiums and deposits 177 140 89 60 74 177 74
Full surrenders and death benefits (2,082) (1,335) (1,139) (1,055) (1,369) (2,082) (1,369)
Premiums and deposits net of full surrenders and death benefits (1,905) (1,195) (1,050) (995) (1,295) (1,905) (1,295)
Partial withdrawals and other benefit payments (1,293) (870) (845) (1,066) (972) (1,293) (972)
Net flows (3,198) (2,065) (1,895) (2,061) (2,267) (3,198) (2,267)
Change in market value, interest credited and other (2) (10,619) (41,619) (5,681) 5,120 4,748 (10,619) 4,748
Net transfers (to) from general account 292 145 102 (92) 30 292 30
Policy charges (852) (619) (614) (628) (614) (852) (614)
Ending balance 147,866 103,708 95,620 97,959 99,856 147,866 99,856
__________
(1) Premiums and deposits, and surrenders and withdrawals, are classified within the general account and separate account for purposes of this presentation based on the allocation of customer funds. For example, premiums allocated by customers to separate account investments at the time of sale, while remitted through the company's general account, are shown as separate account premium in this display, rather than as general account premium and transfers to the separate account.
(2) Includes impact from the sale of a Traditional Variable Annuity Block of Business in second quarter of 2022.

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Prudential Financial, Inc. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES MARKET RISK BENEFIT FEATURES
(in millions)
2022 2023
1Q 2Q 3Q 4Q 1Q
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 103,805 73,070 67,654 69,365 70,701
Account Values with Auto-Rebalancing Feature - externally reinsured 3,068 2,660 2,446 2,482 2,493
Account Values without Auto-Rebalancing Feature 40,530 27,511 25,294 25,660 26,004
Total 147,403 103,241 95,394 97,507 99,198
Market Risk Benefits Net Amount at Risk by Product Design Type:
Net Amount at Risk with Auto-Rebalancing Feature 5,860 7,872 10,669 9,335 8,167
Net Amount at Risk without Auto-Rebalancing Feature 2,196 3,666 4,630 3,845 3,165
Total 8,056 11,538 15,299 13,180 11,332
__________
(1) At end of period.

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Table of Contents

Prudential Financial, Inc. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - GROUP INSURANCE
(in millions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023 % change
Revenues (1):
Premiums 1,219 1,209 1,215 1,231 1,237 1,219 1,237 1%
Policy charges and fee income 176 150 170 185 181 176 181 3%
Net investment income 124 117 121 117 126 124 126 2%
Asset management fees, commissions and other income 20 20 19 22 20 20 20 —%
Total revenues 1,539 1,496 1,525 1,555 1,564 1,539 1,564 2%
Benefits and expenses (1):
Insurance and annuity benefits 1,353 1,144 1,196 1,221 1,218 1,353 1,218 -10%
Change in estimates of liability for future policy benefits — — — — — — — —
Interest credited to policyholders' account balances 36 39 37 41 44 36 44 22%
Interest expense 1 1 1 1 4 1 4 300%
Deferral of acquisition costs (2) — (1) — — (2) — 100%
Amortization of acquisition costs (2) 1 2 1 1 (2) 1 150%
General and administrative expenses 268 257 260 276 272 268 272 1%
Total benefits and expenses 1,654 1,442 1,495 1,540 1,539 1,654 1,539 -7%
Adjusted operating income (loss) before income taxes (115) 54 30 15 25 (115) 25 122%
__________
(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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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2023
U.S. BUSINESSES - GROUP INSURANCE SUPPLEMENTARY INFORMATION
(dollar amounts in millions, or as otherwise noted)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023
Annualized New Business Premiums:
Group life 180 26 67 10 162 180 162
Group disability 130 17 36 13 157 130 157
Total 310 43 103 23 319 310 319
Future Policy Benefits (1):
Group life 2,630 2,471 2,366 2,551 2,397
Group disability 3,066 3,089 3,098 3,106 3,141
Total 5,696 5,560 5,464 5,657 5,538
Policyholders' Account Balances (1):
Group life 5,997 5,984 5,889 5,751 5,480
Group disability 137 133 125 131 117
Total 6,134 6,117 6,014 5,882 5,597
Separate Account Liabilities (1):
Group life 25,938 23,772 22,789 23,513 24,661
Group Life Insurance:
Gross premiums, policy charges and fee income (2) 1,054 1,103 1,050 1,121 1,085 1,054 1,085
Earned premiums 916 888 885 899 892 916 892
Earned policy charges and fee income 153 126 145 164 158 153 158
Benefits ratio (3) 104.3 % 87.6 % 91.2 % 90.2 % 92.9 % 104.3 % 92.9 %
Administrative operating expense ratio 10.7 % 10.7 % 10.9 % 10.9 % 11.8 % 10.7 % 11.8 %
Persistency ratio 96.3 % 96.4 % 96.0 % 95.9 % 94.4 %
Group Disability Insurance:
Gross premiums, policy charges and fee income (2) 340 344 356 361 371 340 371
Earned premiums 303 321 330 332 345 303 345
Earned policy charges and fee income 23 24 25 21 23 23 23
Benefits ratio (3) 73.4 % 73.0 % 72.5 % 74.2 % 65.8 % 73.4 % 65.8 %
Administrative operating expense ratio 31.1 % 32.2 % 30.3 % 31.6 % 25.2 % 31.1 % 25.2 %
Persistency ratio 92.8 % 92.4 % 90.9 % 90.6 % 92.5 %
Total Group Insurance:
Benefits ratio (3) 97.0 % 83.9 % 86.4 % 86.2 % 85.9 % 97.0 % 85.9 %
Administrative operating expense ratio 15.7 % 15.9 % 15.9 % 15.9 % 15.2 % 15.7 % 15.2 %
Net face amount of policies in force (in billions) (4) 2,021 2,068 2,103 2,126 2,104
__________
(1) As of end of period.
(2) Before returns of premiums to participating policyholders for favorable claims experience.
(3) Benefits ratios excluding the impact of the annual assumption updates and other refinements in the second quarter. Benefits ratios including these impacts for Group Life, Group Disability, and Total Group Insurance are 87.0%, 75.5%, and 84.10% for the three months ended June 30, 2022, respectively.
(4) At end of period; net of reinsurance.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2023
U.S. BUSINESSES - STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE
(in millions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023 % change
Revenues (1):
Premiums 258 255 247 245 246 258 246 -5%
Policy charges and fee income 496 263 497 499 501 496 501 1%
Net investment income 644 614 580 629 669 644 669 4%
Asset management fees, commissions and other income 160 154 133 112 111 160 111 -31%
Total revenues 1,558 1,286 1,457 1,485 1,527 1,558 1,527 -2%
Benefits and expenses (1):
Insurance and annuity benefits 874 872 782 796 833 874 833 -5%
Change in estimates of liability for future policy benefits (1) 1,353 3 (11) 58 (1) 58 5900%
Interest credited to policyholders' account balances 227 231 233 235 223 227 223 -2%
Interest expense 189 198 206 217 223 189 223 18%
Deferral of acquisition costs (174) (166) (170) (174) (175) (174) (175) -1%
Amortization of acquisition costs 111 111 111 113 114 111 114 3%
General and administrative expenses 350 349 362 361 353 350 353 1%
Total benefits and expenses 1,576 2,948 1,527 1,537 1,629 1,576 1,629 3%
Adjusted operating loss before income taxes (18) (1,662) (70) (52) (102) (18) (102) -467%
__________
(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
First Quarter 2023
U.S. BUSINESSES - INDIVIDUAL LIFE SUPPLEMENTARY INFORMATION
(in millions, or as otherwise noted)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023
ANNUALIZED NEW BUSINESS PREMIUMS (1):
Term life 24 23 24 22 23 24 23
Universal life 22 22 23 25 17 22 17
Variable life 104 110 103 107 109 104 109
Total 150 155 150 154 149 150 149
ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):
Prudential Advisors 35 33 33 32 33 35 33
Third party distribution 115 122 117 122 116 115 116
Total 150 155 150 154 149 150 149
ACCOUNT VALUE ACTIVITY:
Policyholders' Account Balances (2):
Beginning balance 31,304 31,314 31,274 31,400 31,522 31,304 31,522
Premiums and deposits 670 622 642 647 636 670 636
Surrenders and withdrawals (424) (437) (348) (478) (455) (424) (455)
Net sales 246 185 294 169 181 246 181
Benefit payments (60) (60) (51) (51) (59) (60) (59)
Net flows 186 125 243 118 122 186 122
Interest credited and other 175 262 314 426 461 175 461
Net transfers from separate account 168 98 89 98 78 168 78
Policy charges (519) (525) (520) (520) (539) (519) (539)
Ending balance 31,314 31,274 31,400 31,522 31,644 31,314 31,644
Separate Account Liabilities:
Beginning balance 48,133 45,226 38,931 37,250 39,419 48,133 39,419
Premiums and deposits 658 700 671 684 709 658 709
Surrenders and withdrawals (238) (237) (242) (179) (224) (238) (224)
Net sales 420 463 429 505 485 420 485
Benefit payments (146) (116) (171) (102) (130) (146) (130)
Net flows 274 347 258 403 355 274 355
Change in market value, interest credited and other (2,699) (6,231) (1,532) 2,188 2,286 (2,699) 2,286
Net transfers to general account (168) (98) (89) (98) (78) (168) (78)
Policy charges (314) (313) (318) (324) (332) (314) (332)
Ending balance 45,226 38,931 37,250 39,419 41,650 45,226 41,650
NET FACE AMOUNT IN FORCE (in billions) (3):
Term life 299 298 297 296 295
Universal life 98 99 99 98 98
Variable life 149 144 143 145 148
Total 546 541 539 539 541
__________
(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. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES
(in millions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023 % change
Revenues (1):
Premiums 3,985 3,099 3,291 3,016 3,569 3,985 3,569 -10%
Policy charges and fee income 83 90 83 84 72 83 72 -13%
Net investment income 1,297 1,286 1,112 1,271 1,285 1,297 1,285 -1%
Asset management fees, commissions and other income 113 (20) 132 89 89 113 89 -21%
Total revenues 5,478 4,455 4,618 4,460 5,015 5,478 5,015 -8%
Benefits and expenses (1):
Insurance and annuity benefits 3,500 2,780 2,905 2,589 3,159 3,500 3,159 -10%
Change in estimates of liability for future policy benefits 12 22 38 59 6 12 6 -50%
Interest credited to policyholders' account balances 190 175 180 193 215 190 215 13%
Interest expense 3 5 11 16 11 3 11 267%
Deferral of acquisition costs (320) (278) (285) (295) (313) (320) (313) 2%
Amortization of acquisition costs 155 150 150 141 151 155 151 -3%
General and administrative expenses 987 909 871 943 946 987 946 -4%
Total benefits and expenses 4,527 3,763 3,870 3,646 4,175 4,527 4,175 -8%
Adjusted operating income before income taxes 951 692 748 814 840 951 840 -12%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, 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
First Quarter 2023
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - LIFE PLANNER
(in millions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023 % change
Revenues (1):
Premiums 2,105 1,619 1,689 1,540 1,934 2,105 1,934 -8%
Policy charges and fee income 47 40 41 47 48 47 48 2%
Net investment income 574 555 435 555 573 574 573 —%
Asset management fees, commissions and other income 74 50 79 91 69 74 69 -7%
Total revenues 2,800 2,264 2,244 2,233 2,624 2,800 2,624 -6%
Benefits and expenses (1):
Insurance and annuity benefits 1,805 1,445 1,432 1,310 1,692 1,805 1,692 -6%
Change in estimates of liability for future policy benefits 11 (25) 8 13 2 11 2 -82%
Interest credited to policyholders' account balances 48 43 44 48 57 48 57 19%
Interest expense 2 3 6 7 3 2 3 50%
Deferral of acquisition costs (168) (137) (137) (136) (158) (168) (158) 6%
Amortization of acquisition costs 77 76 75 68 76 77 76 -1%
General and administrative expenses 447 416 386 430 430 447 430 -4%
Total benefits and expenses 2,222 1,821 1,814 1,740 2,102 2,222 2,102 -5%
Adjusted operating income before income taxes 578 443 430 493 522 578 522 -10%
__________
(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
First Quarter 2023
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - GIBRALTAR LIFE AND OTHER
(in millions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023 % change
Revenues (1):
Premiums 1,880 1,480 1,602 1,476 1,635 1,880 1,635 -13%
Policy charges and fee income 36 50 42 37 24 36 24 -33%
Net investment income 723 731 677 716 712 723 712 -2%
Asset management fees, commissions and other income 39 (70) 53 (2) 20 39 20 -49%
Total revenues 2,678 2,191 2,374 2,227 2,391 2,678 2,391 -11%
Benefits and expenses (1):
Insurance and annuity benefits 1,695 1,335 1,473 1,279 1,467 1,695 1,467 -13%
Change in estimates of liability for future policy benefits 1 47 30 46 4 1 4 300%
Interest credited to policyholders' account balances 142 132 136 145 158 142 158 11%
Interest expense 1 2 5 9 8 1 8 700%
Deferral of acquisition costs (152) (141) (148) (159) (155) (152) (155) -2%
Amortization of acquisition costs 78 74 75 73 75 78 75 -4%
General and administrative expenses 540 493 485 513 516 540 516 -4%
Total benefits and expenses 2,305 1,942 2,056 1,906 2,073 2,305 2,073 -10%
Adjusted operating income before income taxes 373 249 318 321 318 373 318 -15%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, 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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Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2023
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
(in millions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023
Actual exchange rate basis (1):
Net premiums, policy charges and fee income:
Japan - Prudential of Japan 1,943 1,448 1,496 1,341 1,735 1,943 1,735
Japan - Gibraltar Life 1,916 1,530 1,644 1,513 1,659 1,916 1,659
Emerging Markets 209 211 234 246 247 209 247
Total 4,068 3,189 3,374 3,100 3,641 4,068 3,641
Annualized new business premiums:
Japan - Prudential of Japan 200 159 138 160 137 200 137
Japan - Gibraltar Life 205 231 198 244 201 205 201
Emerging Markets 56 67 77 84 27 56 27
Total 461 457 413 488 365 461 365
Annualized new business premiums by distribution channel:
Life Planners 256 226 215 244 164 256 164
Gibraltar Life Consultants 100 140 125 156 116 100 116
Banks 52 33 34 49 54 52 54
Independent Agency 53 58 39 39 31 53 31
Total 461 457 413 488 365 461 365
Constant exchange rate basis (2):
Net premiums, policy charges and fee income:
Japan - Prudential of Japan 2,000 1,556 1,657 1,523 1,901 2,000 1,901
Japan - Gibraltar Life 1,974 1,678 1,837 1,680 1,820 1,974 1,820
Emerging Markets 182 176 203 216 213 182 213
Total 4,156 3,410 3,697 3,419 3,934 4,156 3,934
Annualized new business premiums:
Japan - Prudential of Japan 204 170 155 181 212 204 212
Japan - Gibraltar Life 206 237 205 252 239 206 239
Emerging Markets 46 54 64 72 70 46 70
Total 456 461 424 505 521 456 521
Annualized new business premiums by distribution channel:
Life Planners 250 224 219 253 282 250 282
Gibraltar Life Consultants 101 143 129 161 131 101 131
Banks 52 33 34 49 55 52 55
Independent Agency 53 61 42 42 53 53 53
Total 456 461 424 505 521 456 521
__________
(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. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
2022 2023
1Q 2Q 3Q 4Q 1Q
Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan - Prudential of Japan 370 368 366 363 362
Japan - Gibraltar Life 342 335 332 328 325
Emerging Markets 33 35 37 38 39
Total 745 738 735 729 726
Number of individual policies in force at end of period (in thousands) (3):
Japan - Prudential of Japan 4,436 4,447 4,455 4,463 4,484
Japan - Gibraltar Life 6,868 6,805 6,765 6,713 6,681
Emerging Markets 664 682 704 726 742
Total 11,968 11,934 11,924 11,902 11,907
International life insurance individual policy persistency:
Life Planner:
13 months 92.8 % 92.7 % 92.4 % 92.4 % 92.4 %
25 months 85.9 % 85.4 % 85.6 % 85.3 % 84.7 %
Gibraltar Life (4):
13 months 95.9 % 95.7 % 95.5 % 95.2 % 95.2 %
25 months 90.1 % 90.2 % 90.8 % 90.8 % 90.1 %
Number of Life Planners at end of period:
Japan 4,557 4,481 4,481 4,446 4,454
All other countries 1,499 1,443 1,491 1,478 1,524
Total Life Planners 6,056 5,924 5,972 5,924 5,978
Gibraltar Life Consultants 7,022 6,910 6,861 6,821 6,689
__________
(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. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
STATEMENTS OF OPERATIONS - CORPORATE AND OTHER
(in millions)
2022 2023 Year-to-date
1Q 2Q 3Q 4Q 1Q 2022 2023 % change
Revenues (1):
Premiums (8) — (7) (7) (4) (8) (4) 50%
Policy charges and fee income (15) (14) (13) (12) (13) (15) (13) 13%
Net investment income 122 168 150 167 189 122 189 55%
Asset management fees, commissions and other income (142) (110) 4 142 (56) (142) (56) 61%
Total revenues (43) 44 134 290 116 (43) 116 370%
Benefits and expenses (1):
Insurance and annuity benefits (7) 3 — 4 (5) (7) (5) 29%
Change in estimates of liability for future policy benefits — — — — — — — —
Interest credited to policyholders' account balances 34 34 35 34 34 34 34 —%
Interest expense 157 172 185 209 152 157 152 -3%
Deferral of acquisition costs 7 16 9 9 19 7 19 171%
Amortization of acquisition costs (10) (12) (9) (8) (9) (10) (9) 10%
General and administrative expenses 192 152 329 567 410 192 410 114%
Total benefits and expenses 373 365 549 815 601 373 601 61%
Adjusted operating loss before income taxes (416) (321) (415) (525) (485) (416) (485) -17%
Adjusted operating income (loss) before income taxes comprised as follows:
Investment income 27 50 38 62 61 27 61 126%
Interest expense on debt (198) (209) (213) (209) (212) (198) (212) -7%
Long-term and deferred compensation expense (46) 12 (11) (15) (55) (46) (55) -20%
Other (2) (199) (174) (229) (363) (279) (199) (279) -40%
Adjusted operating loss before income taxes (416) (321) (415) (525) (485) (416) (485) -17%
__________
(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.
(2) Includes pension and employee benefits and other corporate activities, including consolidating adjustments.

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Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2023
INVESTMENT PORTFOLIO COMPOSITION
(in millions)
March 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
253,378 21,835 231,543 61.6 % 242,246 21,140 221,106 60.8 %
1,215 — 1,215 0.3 % 1,229 — 1,229 0.3 %
66,325 9,062 57,263 15.2 % 64,745 8,931 55,814 15.4 %
62 — 62 0.0 % 67 — 67 0.0 %
6,010 868 5,142 1.4 % 5,738 900 4,838 1.3 %
2,958 — 2,958 0.8 % 2,844 — 2,844 0.8 %
6,777 1,843 4,934 1.3 % 6,404 1,733 4,671 1.3 %
56,521 7,781 48,740 13.0 % 56,608 7,926 48,682 13.4 %
10,041 3,586 6,455 1.7 % 10,046 3,637 6,409 1.8 %
17,749 4,828 12,921 3.4 % 17,531 4,254 13,277 3.7 %
5,163 331 4,832 1.3 % 4,573 337 4,236 1.2 %
426,199 50,134 376,065 100.0 % 412,031 48,858 363,173 100.0 %
5,877 — 5,877 5,410 — 5,410
432,076 50,134 381,942 417,441 48,858 368,583
Fixed Maturities by Credit Quality (3)(5): March 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
192,192 8,490 13,665 — 187,017 80.8 % 189,939 6,918 18,145 — 178,712 80.8 %
40,061 664 4,298 — 36,427 15.7 % 39,388 534 5,212 — 34,710 15.7 %
232,253 9,154 17,963 — 223,444 96.5 % 229,327 7,452 23,357 — 213,422 96.5 %
5,761 83 560 — 5,284 2.3 % 5,416 66 625 — 4,857 2.2 %
2,321 40 194 62 2,105 0.9 % 2,362 39 287 1 2,113 1.0 %
542 13 92 34 429 0.2 % 614 10 141 8 475 0.2 %
393 9 29 92 281 0.1 % 318 9 63 25 239 0.1 %
9,017 145 875 188 8,099 3.5 % 8,710 124 1,116 34 7,684 3.5 %
241,270 9,299 18,838 188 231,543 100.0 % 238,037 7,576 24,473 34 221,106 100.0 %
16,360 173 1,787 — 14,746 25.8 % 16,111 126 2,145 — 14,092 25.2 %
37,005 527 3,556 — 33,976 59.3 % 36,773 406 4,307 — 32,872 58.9 %
53,365 700 5,343 — 48,722 85.1 % 52,884 532 6,452 — 46,964 84.1 %
5,305 44 433 5 4,911 8.6 % 5,522 38 538 — 5,022 9.0 %
2,701 11 114 — 2,598 4.5 % 2,654 11 148 — 2,517 4.5 %
933 6 73 6 860 1.5 % 1,307 7 117 16 1,181 2.1 %
203 21 1 51 172 0.3 % 160 22 1 51 130 0.3 %
9,142 82 621 62 8,541 14.9 % 9,643 78 804 67 8,850 15.9 %
62,507 782 5,964 62 57,263 100.0 % 62,527 610 7,256 67 55,814 100.0 %
(1) On an amortized cost basis, net of allowance, as of March 31, 2023, includes 1,136 million (fair value, 1,298 million) and 62 million (fair value, 67 million) of public and private fixed maturities, respectively, classified as “1” highest quality and 79 million (fair value, 84 million) and 0 million (fair value, 0 million) of public and private fixed maturities, respectively, classified as “2” high quality securities based on the NAIC designations. On an amortized cost basis, net of allowance, as of December 31, 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 March 31, 2023 and December 31, 2022, 543 securities with amortized cost of 5,665 million (fair value 5,472 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. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
INVESTMENT PORTFOLIO COMPOSITION - JAPANESE INSURANCE OPERATIONS AND EXCLUDING JAPANESE INSURANCE OPERATIONS (1)
(in millions)
March 31, 2023 December 31, 2022
Amount % of Total Amount % of Total
Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value 117,188 69.0 % 112,013 68.4 %
Public, held-to-maturity, at amortized cost, net of allowance 1,215 0.7 % 1,229 0.7 %
Private, available-for-sale, at fair value 19,576 11.5 % 19,268 11.8 %
Private, held-to-maturity, at amortized cost, net of allowance 62 0.0 % 67 0.0 %
Fixed maturities, trading, at fair value 606 0.4 % 612 0.4 %
Assets supporting experience-rated contractholder liabilities, at fair value 2,958 1.7 % 2,844 1.7 %
Equity securities, at fair value 1,748 1.0 % 1,806 1.1 %
Commercial mortgage and other loans, at book value, net of allowance 17,912 10.6 % 18,080 11.0 %
Policy loans, at outstanding balance 2,635 1.6 % 2,607 1.6 %
Other invested assets (3) 5,376 3.2 % 5,272 3.2 %
Short-term investments, net of allowance 472 0.3 % 100 0.1 %
Total 169,748 100.0 % 163,898 100.0 %
March 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 114,355 55.4 % 109,093 54.8 %
Public, held-to-maturity, at amortized cost — 0.0 % — 0.0 %
Private, available-for-sale, at fair value 37,687 18.3 % 36,546 18.3 %
Private, held-to-maturity, at amortized cost — 0.0 % — 0.0 %
Fixed maturities, trading, at fair value 4,536 2.2 % 4,226 2.1 %
Assets supporting experience-rated contractholder liabilities, at fair value — 0.0 % — 0.0 %
Equity securities, at fair value 3,186 1.5 % 2,865 1.4 %
Commercial mortgage and other loans, at book value, net of allowance 30,828 14.9 % 30,602 15.4 %
Policy loans, at outstanding balance 3,820 1.9 % 3,802 1.9 %
Other invested assets, net of allowance (3) 7,545 3.7 % 8,005 4.0 %
Short-term investments, net of allowance 4,360 2.1 % 4,136 2.1 %
Total 206,317 100.0 % 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. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
INVESTMENT RESULTS (1)
(in millions)
Three Months Ended March 31
2023 2022
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (5) Amount Yield (5) Amount
General Account (2)
Fixed maturities (3) 3.93 % 2,992 (45) 3.61 % 2,748 (355)
Equity securities 2.12 % 26 — 1.07 % 14 —
Commercial mortgage and other loans 3.82 % 463 (16) 3.65 % 460 1
Policy loans 4.50 % 72 — 4.42 % 72 —
Short-term investments and cash equivalents 5.90 % 212 — 0.58 % 18 (3)
Gross investment income before investment expenses 3.97 % 3,765 (61) 3.50 % 3,312 (357)
Investment expenses -0.13 % (209) — -0.15 % (131) —
Subtotal 3.84 % 3,556 (61) 3.35 % 3,181 (357)
Other investments (3) 198 307 453 (856)
Investment results of other entities and operations (4) 85 (12) 170 69
Less: investment income related to adjusted operating income reconciling items (168) (391)
Total 3,671 234 3,413 (1,144)
__________
(1) Excludes Closed Block division.
(2) Excludes commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders, assets of our investment management operations, including assets that are managed for third parties and assets classified as "Separate account assets" on our balance sheet.
(3) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.
(4) Includes invested income of commercial loans, assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment management operations.
(5) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. The denominator in the yield percentage includes assets "held-for-sale" as of March 31, 2022 and December 31, 2021. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.

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Prudential Financial, Inc. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS
(in millions)
Three Months Ended March 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) 2.79 % 983 209 2.67 % 966 (40)
Equity securities 1.31 % 6 — 0.81 % 4 —
Commercial mortgage and other loans 3.60 % 161 (7) 3.61 % 178 2
Policy loans 3.86 % 25 — 3.95 % 26 —
Short-term investments and cash equivalents 3.61 % 18 — 2.11 % 3 —
Gross investment income before investment expenses 2.88 % 1,193 202 2.77 % 1,177 (38)
Investment expenses -0.13 % (83) — -0.14 % (60) —
Subtotal 2.75 % 1,110 202 2.63 % 1,117 (38)
Other investments (2) 55 261 74 (723)
Total 1,165 463 1,191 (761)
__________
(1) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.
(2) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
First Quarter 2023
INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS (1)
(in millions)
Three Months Ended March 31
2023 2022
Investment Income Realized Gains (Losses) Investment Income Realized Gains (Losses)
Yield (4) Amount Yield (4) Amount
Excluding Japanese Insurance Operations (2):
Fixed maturities (3) 4.92 % 2,009 (254) 4.47 % 1,782 (315)
Equity securities 2.59 % 20 — 1.23 % 10 —
Commercial mortgage and other loans 3.95 % 302 (9) 3.67 % 282 (1)
Policy loans 4.95 % 47 — 4.76 % 46 —
Short-term investments and cash equivalents 6.13 % 194 — 0.51 % 15 (3)
Gross investment income before investment expenses 4.81 % 2,572 (263) 4.09 % 2,135 (319)
Investment expenses -0.12 % (126) — -0.16 % (71) —
Subtotal 4.69 % 2,446 (263) 3.93 % 2,064 (319)
Other investments (3) 143 46 379 (133)
Total 2,589 (217) 2,443 (452)
__________
(1) Excludes Closed Block division.
(2) Excludes commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders, assets of our investment management operations, including assets that are managed for third parties and assets classified as "Separate account assets" on our balance sheet.
(3) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.
(4) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. The denominator in the yield percentage includes assets "held-for-sale" as of March 31, 2022 and December 31, 2021. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.

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Table of Contents

Prudential Financial, Inc. image2.jpg
Quarterly Financial Supplement
First 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 March 31, 2022
Reconciling Items Reconciling Items
Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums 8,833 — — — 406 124 — — 9,363 7,149 — — — 409 131 — — 7,689
Policy charges and fee income 1,073 37 — 24 — — — — 1,134 1,223 (22) — 41 — 57 — — 1,299
Net investment income 3,671 (5) — — 481 173 — — 4,320 3,413 (10) — — 554 401 — — 4,358
Realized investment gains (losses), net 137 105 — — (17) (8) — — 217 168 (1,177) — — 100 (135) — — (1,044)
Asset management fees, commissions and other income 1,390 375 — — 101 89 (19) — 1,936 1,349 (461) — — (98) (950) (17) — (177)
Change in value of market risk benefits, net of related hedging gains (losses) — — 75 — — — — — 75 — — (304) — — 34 — — (270)
Total revenues 15,104 512 75 24 971 378 (19) — 17,045 13,302 (1,670) (304) 41 965 (462) (17) — 11,855
Benefits and expenses:
Insurance and annuity benefits 9,588 (32) — 4 875 188 — — 10,623 7,963 49 — 8 835 155 — — 9,010
Change in estimates of liability for future policy benefits 22 24 — (28) — 7 — — 25 (67) 9 — (88) — 1 — — (145)
Interest credited to policyholders' account balances 756 144 — — 30 51 — — 981 645 (21) — — 30 (594) — — 60
Interest expense 441 — — — 1 (1) — — 441 364 — — — — 1 — — 365
Deferral of acquisition costs (569) — — — — — — — (569) (572) — — — — — — — (572)
Amortization of acquisition costs 355 7 — — 3 — — — 365 353 14 — — 3 1 — — 371
General and administrative expenses 3,245 — — — 66 26 (14) 9 3,332 3,080 — — — 70 245 12 17 3,424
Total benefits and expenses 13,838 143 — (24) 975 271 (14) 9 15,198 11,766 51 — (80) 938 (191) 12 17 12,513
__________
(1) See page 38 for a definition of adjusted operating income.
(2) Represents adjustments not included in the above reconciling items. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments.

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Prudential Financial, Inc. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
Three Months Ended June 30, 2022 Three Months Ended September 30, 2022
Reconciling Items Reconciling Items
Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP Adjusted Operating Income (Loss) basis (1) Total realized investment gains (losses), net, and related charges and adjustments Change in value of market risk benefits, net of related hedging gains (losses) Market experience updates Closed Block Division Other Divested and Run-off Businesses Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) U.S. GAAP
Revenues:
Premiums 5,995 — — (1) 443 40 — — 6,477 15,322 — — (1) 396 128 — — 15,845
Policy charges and fee income 869 32 — 73 — 1 — — 975 1,083 33 — 27 — — — — 1,143
Net investment income 3,241 (4) — — 520 181 — — 3,938 3,047 (4) — — 434 154 — — 3,631
Realized investment gains (losses), net 260 (1,642) — — (60) (194) — — (1,636) 250 (687) — — 29 (22) — — (430)
Asset management fees, commissions and other income 2,592 (647) — — (374) 712 65 — 2,348 1,378 (445) — — (149) (687) (27) — 70
Change in value of market risk benefits, net of related hedging gains (losses) — — (710) — — — — — (710) — — (58) — — — — — (58)
Total revenues 12,957 (2,261) (710) 72 529 740 65 — 11,392 21,080 (1,103) (58) 26 710 (427) (27) — 20,201
Benefits and expenses:
Insurance and annuity benefits 7,135 132 — (17) 409 92 — — 7,751 15,925 154 — (2) 621 (456) — — 16,242
Change in estimates of liability for future policy benefits 909 132 — (283) — 19 — — 777 59 — — (97) — 3 — — (35)
Interest credited to policyholders' account balances 654 (95) — — 31 54 — — 644 628 (20) — — 30 53 — — 691
Interest expense 401 — — — — — — — 401 407 — — — 4 (1) — — 410
Deferral of acquisition costs (513) — — — — — — — (513) (531) — — — — — — — (531)
Amortization of acquisition costs 345 8 — 1 4 — — — 358 355 6 — — 3 (1) — — 363
General and administrative expenses 2,876 — — — 69 76 21 — 3,042 3,070 — — — 73 28 6 10 3,187
Total benefits and expenses 11,807 177 — (299) 513 241 21 — 12,460 19,913 140 — (99) 731 (374) 6 10 20,327
__________
(1) See page 38 for a definition of adjusted operating income.
(2) Represents adjustments not included in the above reconciling items. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments.

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Prudential Financial, Inc. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
(in millions)
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
Revenues:
Premiums — — 1 451 108 — — 6,464
Policy charges and fee income 77 — 21 — — — — 1,198
Net investment income (5) — — 468 164 — — 4,110
Realized investment gains (losses), net (1,200) — — (339) (27) — — (1,397)
Asset management fees, commissions and other income 78 — — 174 646 (19) — 2,429
Change in value of market risk benefits, net of related hedging gains (losses) — 629 — — — — — 629
Total revenues (1,050) 629 22 754 891 (19) — 13,433
Benefits and expenses:
Insurance and annuity benefits (128) — 5 678 842 — — 8,011
Change in estimates of liability for future policy benefits 13 — (7) — 1 — — 57
Interest credited to policyholders' account balances (20) — — 30 53 — — 798
Interest expense — — — 5 (2) — — 420
Deferral of acquisition costs — — — — — — — (539)
Amortization of acquisition costs 9 — (1) 4 1 — — 341
Goodwill impairment — — — — — — 903 903
General and administrative expenses — — — 77 25 (1) 9 3,482
Total benefits and expenses (126) — (3) 794 920 (1) 912 13,473
__________
(1) See page 38 for a definition of adjusted operating income.
(2) Represents adjustments not included in the above reconciling items, including goodwill impairments related to Assurance IQ that resulted in charges of 903 million pre-tax and 713 million after-tax in the fourth quarter of December 31, 2022. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.

All values are in US Dollars.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
First 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:
Equity attributed to Prudential Financial, Inc. divided by the number of common shares outstanding at end of period, on a diluted basis. Book value per share excluding Accumulated Other Comprehensive Income (Loss) (“AOCI”) and adjusted to remove amount included for remeasurement of foreign currency exchange rate is a non-GAAP measure. This non-GAAP measure augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations, separate from the portion that is affected by capital and currency market conditions including the removal of the associated accounting impacts of the remeasurement of certain insurance liabilities and investments that are marked to market through AOCI under GAAP. However, book value per share excluding AOCI and adjusted to remove the amount included for foreign currency exchange rate remeasurement is not a substitute for book value per share including AOCI determined in accordance with GAAP, and the adjustments made to derive the measure are important to an understanding of our overall financial position.

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Table of Contents

Prudential Financial, Inc.
Quarterly Financial Supplement
First 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
First Quarter 2023
KEY DEFINITIONS AND FORMULAS
20. Non-recourse and Limited-recourse Debt:
Limited and non-recourse borrowing is where the debt holder is only entitled to collect against the assets pledged to the debt as collateral or has very limited rights to collect against other assets.
21. Other Related Revenues:
Other related revenues include incentive fees, transaction fees, seed and co-investment results, and commercial mortgage revenues.
22. PGIM Asset Under Management Classifications:
Public Equity - Represents stock ownership interest in a corporation or partnership (excluding hedge funds) or real estate investment trust.
Public Fixed Income - Represents debt instruments that pay fixed interest and usually have a maturity (excluding mortgages).
Real Estate - Includes direct real estate equity and real estate mortgages.
Private Credit and Other Alternatives - Includes private credit, private equity, hedge funds and other alternative strategies.
Multi-Asset - Includes funds or products that invest in more than one asset class, balancing equity and fixed income funds and target date funds.
23. Policy Persistency - Group Insurance:
Percentage of the premiums in force at the end of the prior year that are still in force at the end of the period (excluding Servicemembers' Group Life Insurance and Prudential Employee Benefit Plan).
24. Policy Persistency - International Businesses:
13 month persistency represents the average percentage of face amount of policies that are still in force at their 13th policy month. 25 month persistency represents the average percentage of face amount of policies that are still in force at their 25th policy month.
25. Prudential Advisors:
Captive financial professionals in our insurance operations in the United States.
26. Prudential Advisor Productivity:
Commissions on new sales of all products by Prudential Advisors financial professionals under contract for the entire period, divided by the number of those financial professionals. Excludes commissions on new sales by financial professionals hired or departed during the period. For interim reporting periods, the productivity measures are annualized.
27. Prudential Financial, Inc. Equity:
Amount of capital assigned to each of the Company's segments for purposes of measuring segment adjusted operating income before income taxes, established at a level which management considers necessary to support the segment's risks. Represents all of Prudential Financial, Inc. equity that is not attributable to noncontrolling interests.
28. Separate Accounts:
Assets of our insurance companies allocated under certain policies and contracts that are segregated from the general account and other separate accounts. The policyholder or contractholder predominantly bears the risk of investments held in a separate account.
29. Wrap-Fee Products:
Investment products generating asset-based fees in which the funds of the customer are generally invested in other investment products such as mutual funds.

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Table of Contents

Prudential Financial, Inc. image2.jpg
Quarterly Financial Supplement
First Quarter 2023
RATINGS AND INVESTOR INFORMATION
FINANCIAL STRENGTH RATINGS
as of May 2, 2023
Standard & Fitch
A.M. Best* Poor's Moody's* Ratings*
The Prudential Insurance Company of America A+ AA- Aa3 AA-
PRUCO Life Insurance Company A+ AA- Aa3 AA-
PRUCO Life Insurance Company of New Jersey A+ AA- NR AA-
The Prudential Life Insurance Co., Ltd. (Prudential of Japan) NR A+ NR NR
Gibraltar Life Insurance Company, Ltd. NR A+ NR NR
The Prudential Gibraltar Financial Life Insurance Co. Ltd. NR A+ NR NR
CREDIT RATINGS:
as of May 2, 2023
Prudential Financial, Inc.:
Short-Term Borrowings AMB-1 A-1 P-2 F1
Long-Term Senior Debt a- A A3 A-
Junior Subordinated Long-Term Debt bbb BBB+ Baa1 BBB
The Prudential Insurance Company of America:
Capital and surplus notes a A A2 A
Prudential Funding, LLC:
Short-Term Debt AMB-1 A-1+ P-1 F1+
Long-Term Senior Debt a+ AA- A1 A+
PRICOA Global Funding I:
Long-Term Senior Debt aa- AA- Aa3 AA-
* NR indicates not rated.
INVESTOR INFORMATION:
Corporate Office:
Prudential Financial, Inc.
751 Broad Street
Newark, New Jersey 07102
Common Stock:
Common Stock of Prudential Financial, Inc. is traded on the New York Stock Exchange under the symbol PRU.
For more information, please visit our website at investor.prudential.com.

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