PRUDENTIAL FINANCIAL INC

We analyze the performance of our segments and Corporate and Other operations using a measure of segment profitability called adjusted operating income. See “—Segment Measures” below for a discussion of adjusted operating income and its use as a measure of segment operating performance.

Shown below are the adjusted operating income contributions of each segment and Corporate and Other operations for the periods indicated and a reconciliation of this segment measure of performance to “Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities” as presented in the Unaudited Interim Consolidated Statements of Operations.

(2)See “—General Account Investments” and Note 19 to the Unaudited Interim Consolidated Financial Statements for additional information.

(3)Represents the contribution to income (loss) of Divested and Run-off Businesses that have been or will be sold or exited, including businesses that have been placed in wind-down, but did not qualify for “discontinued operations” accounting treatment under U.S. GAAP. See “—Divested and Run-off Businesses” for additional information.

(4)Equity in earnings of joint ventures and other operating entities is included in adjusted operating income but excluded from “Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities” as it is reflected on an after-tax U.S. GAAP basis as a separate line in the Unaudited Interim Consolidated Statements of Operations. Earnings attributable to noncontrolling interests are excluded from adjusted operating income but included in “Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities” as they are reflected on a U.S. GAAP basis as a separate line in the Unaudited Interim Consolidated Statements of Operations. Earnings attributable to noncontrolling interests represent the portion of earnings from consolidated entities that relates to the equity interests of minority investors.

(5)Includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.

Segment results for the period presented above reflect the following:

PGIM. Results for both thethird quarter and the first nine months of 2024 increased in comparison to the prior year periods, primarily reflecting higher net asset management fees and net other related revenues. The increase forthe first nine months of 2024 was partially offset by higher expenses.

Retirement Strategies. Results for the third quarter of 2024 increased in comparison to the prior year period, driven by higher net investment spread results and more favorable reserve experience, partially offset by higher expenses and lower net fee income. Results for the first nine months of 2024 increased in comparison to the prior year period, inclusive of a favorable comparative net impact from our annual reviews and update of assumptions and other refinements. Excluding this item, results increased, primarily driven by higher net investment spread results, partially offset by higher expenses and lower net fee income.

Group Insurance. Results for the third quarter of 2024 decreased in comparison to the prior year period, primarily driven by higher expenses, partially offset by higher net investment spread results. Results for the first nine months of 2024 decreased in comparison to the prior year period, inclusive of a less favorable comparative net impact from our annual reviews and update of assumptions and other refinements. Excluding this item, results increased, primarily driven by higher underwriting results and higher net investment spread results, partially offset by higher expenses.

Individual Life. Results for the third quarter of 2024 increased in comparison to the prior year period, primarily reflecting a favorable impact from the first quarter 2024 reinsurance transaction with Somerset Reinsurance Ltd. (“Somerset Re”). Results for the first nine months of 2024 decreased in comparison to the prior year period, inclusive of an unfavorable comparative net impact from our annual reviews and update of assumptions and other refinements. Excluding this item, results for the first nine months of 2024 increased, primarily reflecting the ongoing favorable impact from the first quarter 2024 reinsurance transaction.

International Businesses. Results for the third quarter of 2024 decreased in comparison to the prior year period, inclusive of an unfavorable net impact from foreign currency exchange rates. Excluding this item, results for the third quarter of 2024 decreased, primarily driven by lower underwriting results and higher expenses, partially offset by higher earnings from joint ventures and other operating entities and higher net investment spread results. Results for the first nine months of 2024 decreased, inclusive of an unfavorable net impact from foreign currency exchange rates and an unfavorable comparative net impact from our annual reviews and update of assumptions and other refinements. Excluding these items, results for the first nine months of 2024 increased, primarily driven by higher earnings from joint ventures and other operating entities, higher net investment spread results, partially offset by lower underwriting results.

Corporate and Other. Results for the third quarter of 2024 reflected increased losses in comparison to the prior year period, primarily driven by higher net charges from other corporate activities. Results for the first nine months of 2024 reflected decreased losses in comparison to the prior year period, primarily driven by lower net charges from other corporate activities.

Closed Block Division. Results for the third quarter of 2024 remained unchanged while results for the first nine months of 2024 decreased in comparison to the prior year periods. The decrease was primarily driven by an increase in dividends to policyholders, partially offset by higher net investment activity results.