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.

(1)The amounts for the three months ended March 31, 2024 reflect the correction of an error related to indexed variable and fixed annuity products within the Retirement Strategies segment. See “—Retirement Strategies” for additional information. Prior period amounts have been updated to conform to current period presentation.

(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 represents 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 thefirst quarter of 2025 decreased in comparison to the prior year period, primarily reflecting lower net other related revenues, partially offset by higher net asset management fees.

Retirement Strategies. Results for the first quarter of 2025 decreased in comparison to the prior year period, primarily driven by higher expenses and lower net fee income, partially offset by higher net investment spread results and more favorable reserve experience.

Group Insurance. Results for the first quarter of 2025 increased in comparison to the prior year period, primarily reflecting higher underwriting results, partially offset by higher expenses and lower net investment spread results.

Individual Life. Results for the first quarter of 2025 reflected decreased losses in comparison to the prior year period, primarily driven by higher underwriting results and lower expenses, partially offset by lower net investment spread results.

International Businesses. Results for the first quarter of 2025 decreased in comparison to the prior year period, inclusive of a net unfavorable impact from foreign currency exchange rates. Excluding this item, results for the first quarter of 2025 decreased, primarily driven by lower net investment spread results and lower earnings on joint ventures and other operating entities.

Corporate and Other. Results for the first quarter of 2025 reflected decreased losses in comparison to the prior year period, primarily driven by lower net charges from other corporate activities and higher pension and employee benefits results, partially offset by higher interest expense on debt.

Closed Block Division. Results for the first quarter of 2025 decreased in comparison to the prior year period, primarily driven by lower net investment activity results, partially offset by changes in the policyholder dividend obligation.