PRUDENTIAL FINANCIAL INC

The following section provides a comparative discussion of our consolidated results of operations on a U.S. GAAP basis for the periods indicated.

Three Month Comparison.“Net income (loss) attributable to Prudential Financial, Inc.” for the third quarter of 2025 compared to the third quarter of 2024 increased $983 million, inclusive of a $242 million unfavorable variance from income taxes, primarily driven by the increase in pre-tax earnings, as described below.

On a pre-tax basis, “Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities” increased $1,229 million, reflecting the following notable items:

“Total revenues” decreased $1,602 million, primarily due to the following:

•“Premiums” — $3,832 million unfavorable variance, primarily reflecting lower pension risk transfer premiums due to lower sales in the current period, with corresponding offsets in “policyholders’ benefits,” as discussed below.

•“Realized investment gains (losses), net” — $818 million favorable variance, primarily reflecting the change in the fair value of embedded derivatives related to our Funds Withheld portfolios, which are offset by changes in the value of the investments in the Funds Withheld portfolios that are primarily recorded in “Other income (loss)” or through “Other comprehensive income,” as well as lower write-downs on, and lower losses from the sales of, fixed income securities. These variances were partially offset by unfavorable derivative results excluding the change in the fair value of embedded derivatives related to our Funds Withheld portfolios, as described above. See “—General Account Investments—Realized Investment Gains and Losses” for additional information;

•“Net investment income” — $473 million favorable variance, primarily reflecting business growth, higher reinvestment rates and higher income from non-coupon investments. See “—General Account Investments—Investment Results” for additional information;

•“Change in value of market risk benefits, net of related hedging gains (losses)” — $470 million favorable variance, primarily reflecting favorable equity market performance; and

•“Other income (loss)” — $435 million favorable variance, primarily reflecting favorable changes in the market value of equity and fixed income securities designated as trading, including on assets supporting experience-rated contractholder liabilities, which are fully offset in “Interest credited to policyholders’ account balances” as discussed below.

“Total benefits and expenses” decreased $2,831 million, primarily due to the following:

•“Policyholders’ benefits” — $3,895 million favorable variance, primarily reflecting lower pension risk transfer premiums, as discussed above.

•“Interest credited to policyholders’ account balances” — $719 million unfavorable variance, primarily reflecting the impact from the favorable changes in assets supporting experience-rated contractholder liabilities, as described above, and business growth; and

•“Dividends to policyholders” — $227 million unfavorable variance, primarily reflecting favorable changes in cumulative earnings in the Closed Block division, largely corresponding to “Realized investment gains (losses), net” above. See “—Closed Block Division” for additional information.

Nine Month Comparison.“Net income (loss) attributable to Prudential Financial, Inc.” for the first nine months of 2025 compared to the first nine months of 2024 decreased $113 million, inclusive of a $91 million unfavorable variance from income taxes, primarily driven by the impact of certain tax rate changes in the current period, and the increase in pre-tax earnings, as described below. See “—Income Taxes” for additional information.

On a pre-tax basis, “Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities” increased $84 million, reflecting the following notable items:

“Total revenues” decreased $12,798 million, primarily due to the following:

•“Premiums” — $13,207 million unfavorable variance, primarily reflecting lower pension risk transfer premiums due to lower sales in the current period, with corresponding offsets in “Policyholders’ benefits,” as discussed below; and

•“Realized investment gains (losses), net” — $1,137 million unfavorable variance, primarily reflecting unfavorable derivative results, including losses in the current period from product-related hedge positions and embedded derivatives, as well as from foreign currency hedges, partially offset by lower losses from the sales of fixed income securities. See “—General Account Investments—Realized Investment Gains and Losses” for additional information.

•“Net investment income” — $1,216 million favorable variance, primarily reflecting business growth, higher reinvestment rates and higher income from non-coupon investments. See “—General Account Investments—Investment Results” for additional information.

“Total benefits and expenses” decreased $12,882 million, primarily due to the following:

•“Policyholders’ benefits” — $13,032 million favorable variance, primarily reflecting lower pension risk transfer premiums, as discussed above; and

•“General and administrative expenses” — $496 million favorable variance, net of deferrals, primarily reflecting lower operating expenses, partially offset by higher variable expenses supporting business growth.

•“Interest credited to policyholders’ account balances” — $297 million unfavorable variance, primarily reflecting business growth.