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.

“Net income (loss) attributable to Prudential Financial, Inc.” for the first three months of 2026 compared to the first three months of 2025 decreased $110 million, inclusive of a $78 million favorable variance from income taxes, primarily driven by the decrease in pre-tax earnings, as described below, and a lower effective tax rate in the current period. See Note 14 to the Unaudited Interim Consolidated Financial Statements for additional information regarding income taxes.

On a pre-tax basis, “Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities” decreased $187 million, reflecting the following notable items:

“Total revenues” increased $2,056 million, primarily due to the following:

•“Premiums” — $1,362 million favorable variance, primarily reflecting higher pension risk transfer premiums with corresponding offsets in “Policyholders’ benefits,” as discussed below;

•“Net investment income” — $535 million favorable variance, primarily reflecting business growth, higher reinvestment rates and higher prepayment fee income (see “—General Account Investments—Investment Results” for additional information); and

•“Realized investment gains (losses), net” — $366 million favorable variance, primarily reflecting favorable derivative results in the current period, including 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,” partially offset by losses from the sales of fixed income securities in the current period. See “—General Account Investments—Realized Investment Gains and Losses” for additional information.

Partially offset by:

•“Other income (loss)” — $250 million unfavorable variance, primarily reflecting unfavorable changes in the market value of fixed income securities designated as trading, as well as equity securities.

“Total benefits and expenses” increased $2,243 million, primarily due to the following:

•“Policyholders’ benefits” — $1,393 million unfavorable variance, primarily reflecting higher pension risk transfer premiums, as discussed above;

•“General and administrative expenses” — $386 million unfavorable variance, net of deferrals, primarily reflecting higher operating expenses, including remediation costs associated with the Prudential of Japan matter, as well as expenses supporting business growth; and

•“Interest credited to policyholders’ account balances” — $284 million unfavorable variance, primarily reflecting business growth and a higher weighted-average crediting rate in Japan. See Note 10 to the Unaudited Interim Consolidated Financial Statements for additional information regarding policyholders’ account balances.