PRUDENTIAL FINANCIAL INC

Corporate and Other includes corporate operations, after allocations to our business segments, and Divested and Run-off Businesses other than those that qualify for “discontinued operations” accounting treatment under U.S. GAAP. The following table sets forth Corporate and Other’s operating results for the periods indicated:

The loss from Corporate and Other operations, on an adjusted operating income basis, decreased $209 million primarily reflecting:

•lower net charges from other corporate activities, primarily driven by lower net costs related to corporate initiatives and long-term compensation plans, and lower expenses driven by an update of internal expense allocations, partially offset by organizational charges in the current year;

•higher investment income results, primarily driven by higher income from non-coupon investments; and

•favorable pension and employee benefits results, primarily driven by higher earnings from our pension and post-retirement plans from higher expected returns on plan assets and lower service costs.

•higher interest expense on debt, largely driven by the absence of income offsets from the termination of an affiliated financing agreement resulting from the reinsurance transactions in Individual Life in 2024.

For purposes of calculating pension income from our pension plans for the year ended December 31, 2026, we decreased the discount rate from 5.85% to 5.55% as of December 31, 2025. The expected rate of return on plan assets decreased from 8.00% in 2025 to 7.75% in 2026. The assumed rate of increase in compensation will remain unchanged at 6.25% in 2026. Giving effect to the foregoing changes and other factors, we expect income from our pension plans in 2026 to be approximately $50 million to $55 million lower than 2025 levels. This decrease is primarily driven by the lower expected rate of return on plan assets and the lower discount rate.

For purposes of calculating postretirement income for the year ended December 31, 2026, we decreased the discount rate from 5.70% to 5.25% as of December 31, 2025. The expected rate of return on plan assets decreased from 6.50% in 2025 to 6.25% in 2026. Giving effect to the foregoing changes and other factors, we expect postretirement income in 2026 to be approximately $5 million to $10 million higher than 2025 levels. This increase is primarily driven by favorable equity returns on plan assets in the current year.

In 2026, pension and other postretirement benefit service costs related to active employees will continue to be allocated to our business segments. For further information regarding our pension and postretirement plans, see Note 19 to the Consolidated Financial Statements.