PRUDENTIAL FINANCIAL INC

International Businesses develops and distributes life insurance, retirement products, investment products, and certain accident and health products with fixed benefits to affluent, mass affluent, and broad middle income customers predominantly in Japan, Brazil, and Mexico, as well as through joint ventures in Chile, China, India, and Indonesia, and through strategic investments in Ghana and South Africa.

Our marketing and distribution efforts are conducted through the following proprietary agent models and third-party channels:

•Proprietary agent models:

◦Life Planners—focus on selling protection-oriented life insurance products to mass affluent and affluent customers, as well as retirement-oriented products to small businesses. The Life Planner model is anchored in quality, with a strong emphasis on recruiting and retaining top talent committed to exceptional service.

◦Life Consultants—focus on primarily selling individual protection products to the broad middle income market in Japan, particularly through relationships with affinity groups.

•Third-party channels:

◦Bank Distribution Channel—In Japan, we primarily sell life insurance products with savings features, premature death protection, and estate planning benefits, as well as investment and annuity products. We have relationships with Japan’s major banks, as well as many regional banks, and continue to explore opportunities to expand our distribution capabilities through this channel. In Brazil, our primary focus is on whole life products with riders that provide additional coverage options and flexibility. These products are distributed through strategic partnerships with Brazil’s leading banks.

◦Independent Agency Distribution Channel—sells protection products and retirement-oriented high cash value products through the corporate market, as well as protection and investment products through the individual market. Our aim is to maintain a diverse mix of independent agency relationships across both individual and corporate markets.

In February 2026, in conjunction with its previously announced internal investigation into employee misconduct in Japan, the Company voluntarily suspended new sales activity at Prudential of Japan for a 90-day period, commencing February 9, 2026. See “—Litigation and Regulatory Matters—Regulatory” within Note 25 to the Consolidated Financial Statements and “Management’s Discussion and Analysis—Results of Operations by Segment—International Businesses” for additional information.

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. Sales and surrenders of non-yen denominated products in Japan can be sensitive to foreign currency relationships which are impacted by, among other things, the comparative interest rates in their respective countries.

We price our products based on local regulation, which is generally more restrictive than U.S. insurance regulation for product offerings, pricing, and structure. Each international insurance operation has its own underwriting department that employs variations of U.S. practices in underwriting individual policy risks. To the extent permitted by local regulation, we base premiums and policy charges for our products on expected death and morbidity benefits, surrender benefits, expenses, required reserves, interest rates, investment returns, policy persistency, and premium payment patterns. In setting underwriting limits, we also consider local industry standards to prevent adverse selection and to stay abreast of industry trends. In addition, we set underwriting limits together with each operation’s reinsurers.

We also price our products based on achieving a targeted rate of return for each operation while taking into account the country-specific costs of capital, risks, and competitive environment. The profitability of our products is impacted by differences between actual mortality, morbidity, expense, and investment experience and the related assumptions used in pricing these policies. As a result, the profitability of our products can fluctuate from period to period. Changes in local tax laws may also affect profitability.

The life insurance market in Japan is mature and pricing is competitive. Demographic trends in Japan suggest an increasing opportunity for product innovation, such as introducing products that allow for savings and income, as well as offering differentiated health products with value added services as a growing portion of the population prepares for retirement. The ability to sell through multiple and complementary distribution channels is also a competitive advantage; however, competition for sales personnel, as well as access to third-party distribution channels, is intense.

The life insurance market in Brazil continues to grow steadily, driven by rising middle-class income and increasing demand for protection and retirement solutions. The competitive landscape is shaped by major insurers, bancassurance channels, and rapidly emerging digital players. Our strategy focuses on expanding through our proprietary life planner model and delivering a differentiated, high-touch sales experience, while continuing to strengthen partnerships with leading banks and other third-party distributors.

In both of these markets, rather than competing primarily based on price, we generally compete on the basis of customer service, including our needs-based approach to selling, the quality and diversity of our distribution capabilities, and our 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 to (1) mitigate mortality and morbidity risk for certain products and (2) for capital management purposes.