PRUDENTIAL FINANCIAL INC

Individual Life develops and distributes variable life, universal life, and term life insurance products primarily to U.S. mass middle (households with investable assets in excess of $25,000 or annual income in excess of $50,000), mass affluent (households with investable assets or annual income in excess of $100,000), and affluent (households with investable assets in excess of $250,000) customers with a focus on providing life insurance solutions to protect individuals, families, and businesses, and to support estate and wealth transfer planning.

Our distribution efforts, which are supported by a network of internal and external wholesalers, are executed through a diverse group of distributors, including:

•Third-party distribution through independent brokers, banks, wirehouses, general agencies and producer groups;

•Financial professionals associated with Prudential Advisors, Prudential’s proprietary nationwide advice organization; and

•Trusted partnerships, via embedded digital solutions through credit unions, mortgage originators, affinities, and digital marketing affiliates/paid media efforts.

Our revenues primarily come in the form of premiums in accordance with the terms of the policies, policy charges and fee income from in-force policies and asset-based fees, and investment income from assets supporting customer liabilities and required capital.

Our profitability is substantially impacted by our ability to appropriately price our products. We price our products based on our assumptions of future mortality and morbidity, policyholder behavior, interest rates and investment returns, expenses, premium payment patterns, performance and cost of ceded reinsurance, separate account fund performance, and product-generated tax deductions.

We compete with many large, well-established life insurance companies in a mature market. We compete primarily based on price, service (including the speed and ease of underwriting), distribution channel relationships, brand recognition, and financial strength. We periodically adjust product offerings, prices, and features based on the market and our strategy, with a goal of achieving customer and enterprise value.

We use ceded reinsurance across a range of products to (1) reduce market sensitivity and (2) mitigate mortality risk. In 2024, we executed two separate transactions to reinsure a significant portion of our in-force guaranteed universal life block of business. We also use assumed reinsurance in connection with our 2013 acquisition of The Hartford’s individual life insurance business. See Note 15 to the Consolidated Financial Statements for additional details regarding these agreements.