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)Benefit ratios reflect the impact of our annual reviews and update of assumptions and other refinements. Excluding these impacts, the group life, group disability and total Group Insurance benefit ratios were 83.1%, 75.3% and 80.9% for the three months ended June 30, 2025, respectively; 85.2%, 70.6% and 81.1% for the six months ended June 30, 2025, respectively; 85.3%, 70.4% and 81.1% for the three months ended June 30, 2024, respectively; and 87.7%, 70.9% and 82.9% for the six months ended June 30, 2024, respectively.

(4)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.

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

Three Month Comparison. Adjusted operating income increased $4 million, including a less favorable comparative net impact from our annual reviews and update of assumptions and other refinements. Resultsfor thesecond quarter of 2025 and 2024 included net benefits from this update of $11 million and $25 million, respectively. Excluding this item, adjusted operating income increased $18 million, primarily reflecting higher underwriting results in our group life business driven by more favorable mortality experience on non-experience-rated contracts. This variance was partially offset by lower underwriting results in our group disability business driven by less favorable claims experience on long-term disability contracts, as well as higher variable and operating expenses, largely supporting business growth.

Six Month Comparison. Adjusted operating income increased $48 million, including a less favorable comparative net impact from our annual reviews and update of assumptions and other refinements, as discussed above. Excluding this item, adjusted operating income increased $62 million, primarily reflecting higher underwriting results in our group life business, driven by more favorable mortality experience on non-experience-rated contracts and a positive impact from a reserve refinement for certain experience-rated contracts. Also contributing to the increase were 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.

Three Month Comparison. Revenues increased $101 million primarily reflecting higher premiums and policy charges and fee income, driven by business growth in our group life and group disability businesses.

Benefits and expenses increased $97 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, benefits and expenses increased $83 million. The increase primarily reflected higher policyholders’ benefits and changes in reserves, as well as 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.

Six Month Comparison. Revenues increased $215 million primarily reflecting higher premiums and policy charges and fee income, driven by business growth in our group life and group disability businesses, as well as a positive impact from a reserve refinement for certain experience-rated contracts.

Benefits and expenses increased $167 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, benefits and expenses increased $153 million. The increase primarily reflected higher policyholders’ benefits and changes in reserves, as well as 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 June 30, 2025 increased $31 million compared to the prior year period, primarily driven by higher sales in the National market segment in both our group disability and group life businesses.

Total annualized new business premiums for the six months ended June 30, 2025 increased $53 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.