PRUDENTIAL FINANCIAL INC

Divested and Run-off Businesses Included in Corporate and Other

Income from our Divested and Run-off Businesses includes results from several 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. The results of these Divested and Run-off Businesses are reflected in our Corporate and Other operations but are excluded from adjusted operating income. A summary of the results of the Divested and Run-off Businesses reflected in our Corporate and Other operations is as follows for the periods indicated:

(1)Effective first quarter of 2024, the results of AIQ are excluded from Corporate and Other’s adjusted operating results and are included herein. Prior period amounts have been updated to conform to current period presentation. Effective second quarter of 2024, the results of PGIMW are excluded from PGIM’s adjusted operating results and are included herein.

Long-Term Care

Three Month Comparison. Results increased $133 million, including a favorable comparative net impact from our annual reviews and update of assumptions and other refinements. Results for thesecond quarter of 2024 included a $111 million netbenefit from these updates, while results for the second quarter of 2023 included a $79 million netcharge from these updates. Excluding this item, results decreased $57 million compared to the prior year period, primarily reflecting less favorable impacts from changes in the market value of equity securities and higher net realized investment losses from derivatives.

Six Month Comparison. Results increased $172 million, including a favorable comparative net impact from our annual reviews and update of assumptions and other refinements, as discussed above. Excluding this item, results decreased $18 million compared to the prior year period, primarily reflecting higher net realized investment losses from more unfavorable impacts from changes in the market value of derivatives used for duration management and lower income on non-coupon investments, partially offset by more favorable impacts from changes in the market value of equity securities.

Other Divested and Run-off Businesses

Results for the second quarter decreased $94 million, primarily reflecting impairments and charges related to management’s decision to exit PGIMW and its subsequent classification as a divested business in the current period, less favorable results related to the Full Service Retirement business and higher losses related to Assurance IQ. Results for the first six months of 2024 decreased $260 million, primarily reflecting impairments and charges related to management’s decision to exit Assurance IQ and its subsequent classification as a divested business in the first quarter of 2024, unfavorable results related to the Full Service Retirement business, as well as impairments and charges related to PGIMW, as discussed above.