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:

Long-Term Care

Three Month Comparison. Results decreased $69 million, including an unfavorable comparative net impact from our annual reviews and update of assumptions and other refinements. Results for the second quarter of 2025 included a $7 million netcharge from these updates, while results for 2024 included a $111 million netbenefit from these updates. Excluding this item, results increased $49 million compared to the prior year period, primarily reflecting more favorable impacts from changes in the market value of equity securities, partially offset by higher net realized investment losses from derivatives.

Six Month Comparison. Results decreased $240 million, including an unfavorable comparative net impact from our annual reviews and update of assumptions and other refinements, as discussed above. Excluding this item, results decreased $122 million compared to the prior year period, primarily reflecting less favorable impacts from changes in the market value of equity securities, and higher net realized investment losses from derivatives and credit impairments.

Other Divested and Run-off Businesses

Results for the second quarter of 2025 increased $43 million, primarily reflecting the absence of impairments and charges related to management’s decision to exit PGIM Wadhwani LLP (“PGIMW”) and its subsequent classification as a divested business in the second quarter of 2024, as well as less unfavorable results related to Assurance IQ. Results for the first six months of 2025 increased $198 million, primarily reflecting the absence of impairments and charges related to management’s decisions to exit Assurance IQ and PGIMW (and their subsequent classifications as divested businesses in the first and second quarter of 2024, respectively), as well as favorable results related to the Full Service Retirement business.