PRUDENTIAL FINANCIAL INC

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

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

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

(3)Ratio of operating and variable expenses (excluding commissions) to net premiums plus policy charges and fee income, excluding third-party administrator pass-through fees and expenses.

(4)Prior period ratios have been updated to conform to current period presentation.

Adjusted operating income increased $44 million, primarily reflecting higher underwriting results in our group life business, driven by a positive impact from a reserve refinement for certain experience-rated contracts and more favorable mortality experience on non-experience-rated contracts, and higher underwriting results in our group disability business driven by more favorable claims experience on long-term disability contracts. These favorable variances were partially offset by higher variable and operating expenses, largely supporting business growth, and lower net investment spread results driven by lower income on non-coupon investments.

Revenues increased $114 million. The increase primarily reflected higher premiums and policy charges and fee income, driven by business growth in our group life business as well as a positive impact from a reserve refinement for certain experience-rated contracts.

Benefits and expenses increased $70 million. The increase primarily reflected higher policyholders’ benefits and higher general and administrative expenses, both largely driven by business growth, partially offset by more favorable mortality experience on non-experience-rated contracts in our group life business and more favorable claims experience on long-term disability contracts.

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 March 31, 2025 increased $22 million compared to the prior year period, primarily driven by higher sales in the Premier market segment in both our group life and group disability businesses, partially offset by lower sales in the National market segment in our group disability business, including lower supplemental health product sales, primarily reflecting the absence of outsized sales which occurred in the prior year period.