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 $221 million compared to the prior year period, primarily reflecting favorable impacts from changes in the market value of equity securities and favorable impacts from changes in the market value of derivatives used for duration management.

Nine Month Comparison. Results increased $393 million, including a favorable comparative net impact from our annual reviews and update of assumptions and other refinements. Results for 2024 included a $111 million netbenefit from these updates, while results for 2023 included a $79 million netcharge from these updates. Excluding this item, results increased $203 million compared to the prior year period, primarily reflecting more favorable impacts from changes in the market value of equity securities and less unfavorable impacts from changes in the market value of derivatives used for duration management.

Other Divested and Run-off Businesses

Results for the third quarter of 2024 decreased $61 million, primarily reflecting unfavorable results related to the Full Service Retirement business due to the absence of accelerated deferred gain amortization from higher surrenders in the prior year period, partially offset by less unfavorable results related to AIQ. Results for the first nine months of 2024 decreased $321 million, primarily reflecting unfavorable results related to the Full Service Retirement business, as discussed above, as well as impairments and charges related to management’s decisions to exit AIQ and PGIMW (and their subsequent classifications as divested businesses in the first and second quarter of 2024, respectively).