PRUDENTIAL FINANCIAL INC

The following table sets forth Group Insurance’s operating results and benefits and administrative operating expense ratios for the periods indicated:

(1)Ratio of policyholder benefits to earned premiums plus policy charges and fee income.

(2)Benefit ratios reflect the impact of our annual reviews and update of assumptions and other refinements. Excluding these impacts, the group life, group disability and total Group Insurance benefit ratios were 85.3%, 70.4% and 81.1% for the three months ended June 30, 2024, respectively; 87.7%, 70.9% and 82.9% for the six months ended June 30, 2024, respectively; 85.1%, 69.8% and 81.1% for the three months ended June 30, 2023, respectively; and 89.0%, 67.8% and 83.5% for the six months ended June 30, 2023, respectively.

(3)Ratio of general and administrative expenses (excluding commissions) to gross premiums plus policy charges and fee income.

(4)The benefits and administrative ratios are measures used to evaluate profitability and efficiency.

Three Month Comparison. Adjusted operating income decreased $18 million, including a less favorable comparative net impact from our annual reviews and update of assumptions and other refinements. Resultsfor thesecond quarter of 2024 and 2023 included net benefits from this update of $25 million and $36 million, respectively. Excluding this item, adjusted operating income decreased $7 million, primarily reflecting higher operating expenses, largely supporting business growth. Underwriting results in our group disability business were higher, reflecting an increase in supplemental health product sales, but were offset by lower underwriting results in our group life business, driven by less favorable mortality experience on non-experience-rated contracts.

Six Month Comparison. Adjusted operating income increased $2 million, including a less favorable comparative net impact from our annual reviews and update of assumptions and other refinements, as discussed above. Excluding this item, adjusted operating income increased $13 million, primarily reflecting higher underwriting results in our group life business, driven by more favorable mortality experience on both non-experience- and experience-rated contracts, and higher net investment spread results driven by higher reinvestment rates. These increases were partially offset by higher operating expenses, largely supporting business growth.

Three Month Comparison. Revenues decreased $12 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, revenues decreased $9 million. The decrease primarily reflected lower premiums and policy charges and fee income driven by the impact from more favorable mortality on experience-rated contracts in our group life business, with offsets in policyholders’ benefits and changes in reserves, as discussed below.

Benefits and expenses increased $6 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, benefits and expenses decreased $2 million. The decrease primarily reflected more favorable mortality experience on experience-rated contracts in our group life business, as discussed above, mostly offset by higher general and administrative expenses, largely supporting business growth.

Six Month Comparison. Revenues increased $58 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, revenues increased $61 million. The increase primarily reflected higher premiums and policy charges and fee income, driven by business growth in our group disability business, including supplemental health products, and higher net investment income driven by higher reinvestment rates.

Benefits and expenses increased $56 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, benefits and expenses increased $48 million. The increase primarily reflected higher general and administrative expenses, largely supporting business growth, as well as higher policyholders’ benefits and changes in reserves, driven by less favorable claims experience on long-term disability contracts and from business growth, as described above in our group disability business. This was partially offset by more favorable mortality experience on non-experience-rated contracts in our group life business.

The following table sets forth Group Insurance’s annualized new business premiums, as defined under “—Segment Measures” above, for the periods indicated:

(1)Amounts exclude new premiums resulting from rate changes on existing policies, from additional coverage 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.

Total annualized new business premiums for the three months ended June 30, 2024 decreased $11 million compared to the prior year period, primarily driven by lower sales in both our group disability and group life businesses in the National Market segment.

Total annualized new business premiums for the six months ended June 30, 2024 increased $48 million compared to the prior year period, primarily driven by higher sales in our group disability business, including an increase in supplemental health product sales, and higher enrollment in our group life business in the National Market segment. This increase was partially offset by lower sales in the Premier Market segment in both our group disability and group life businesses, reflecting the absence of outsized sales in the prior year period.