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)Benefits ratios reflect the impacts of our annual reviews and update of assumptions and other refinements. Excluding these impacts, the group life, group disability and total Group Insurance benefits ratios were 84.0%, 76.5% and 81.9% for 2025, respectively, 86.9%, 73.3% and 83.1% for 2024, respectively, and 87.6%, 71.1% and 83.2% for 2023, 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.

Adjusted operating income increased $67 million, including a less favorable comparative net impact from our annual reviews and update of assumptions and other refinements. Results for 2025 and 2024 included net benefits from this update of $11 million and $25 million, respectively.

Excluding this item, adjusted operating income increased $81 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.

•higher variable and operating expenses, largely supporting business growth; and

•lower underwriting results in our group disability business, driven by less favorable claims experience on long-term disability contracts.

Revenues increased $347 million primarily reflecting:

•higher premiums and policy charges and fee income, driven by business growth in both our group life and group disability businesses; and

•lower premium and policy returns, driven by less favorable mortality on experience-rated contracts.

Benefits and expenses increased $280 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, benefits and expenses increased $266 million primarily reflecting:

•higher policyholders’ benefits and changes in reserves, driven by business growth and less favorable claims experience on long-term disability contracts; and

•higher general and administrative expenses, driven by business growth.

•more favorable mortality experience on non-experience-rated contracts in our group life business.

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 increased $61 million, primarily reflecting:

•higher sales in the Premier market segment in both our group disability and group life businesses.

This variance was partially offset by

•lower sales in the Association market segment in both our group life and group disability businesses.