PRUDENTIAL FINANCIAL INC

•Effective January 1, 2026, traditional variable annuities with guaranteed living benefit riders and certain other annuity products previously included in the former Individual Retirement Strategies segment were transferred into a new reportable segment named “U.S. Legacy Products.” See “—U.S. Legacy Products” below for the operating results and additional information regarding this new segment.

Subsequent to this transfer, the remaining blocks of business in the former Individual Retirement Strategies segment, consisting primarily of indexed-variable annuity and fixed annuity products, were combined with the products included in the former Institutional Retirement Strategies segment into a new reportable segment named “Retirement.” These changes have been applied retrospectively and did not have an impact on any of the Company’s previously issued Consolidated Financial Statements.

The following table sets forth Retirement’s operating results for the periods indicated:

Adjusted operating income increased $46 million, primarily reflecting:

•higher net investment spread results, driven by growth in retail annuities and other products, and higher prepayment fee income.

•higher amortization costs;

•higher variable and operating expenses, primarily driven by business growth; and

•lower underwriting results, primarily reflecting less favorable mortality experience on pension risk transfer transactions.

Revenues increased $1,792 million, primarily reflecting:

•higher premiums, driven by an increase in pension risk transfer sales in the current year period, with corresponding offsets in policyholders’ benefits, as discussed below; and

•higher net investment income, driven by growth in retail annuities and pension risk transfer transactions, and higher prepayment fee income.

Benefits and expenses increased $1,746 million primarily reflecting:

•higher policyholders’ benefits, including changes in reserves, related to the higher pension risk transfer premiums, as discussed above; and

•higher interest credited to policyholders’ account balances, driven by business growth.

Account Values

Account values are a significant driver of our operating results and are primarily driven by net flows and the impact of market changes. The investment income and interest we credit to policyholders on our spread-based products varies with the level of general account values. The income we earn on most of our fee-based products varies with the level of fee-based account values as many policy fees are determined by these values.

The following tables set forth account value information for the periods indicated. Account values include both internally- and externally-managed client balances as the total balances drive our revenue. For additional information regarding internally-managed balances, see “—PGIM.”

(1)Beginning account values, net of reinsurance ceded, were $357,150 million and $321,477 million for the three months ended March 31, 2026 and 2025, respectively, and $328,521 million for the twelve months ended March 31, 2026.

(2)“Other” activity includes the effect of foreign exchange rate changes associated with our United Kingdom international reinsurance business and changes in asset balances for externally-managed accounts. For the three months ended March 31, 2026 and 2025, “Other” activity also includes $1,327 million in receipts offset by $837 million in payments, and $801 million in receipts offset by $956 million in payments, respectively, related to funding agreements backed by commercial paper that typically have maturities of less than 90 days.

(3)Primarily includes FlexGuard suite and fixed annuity products.

(4)Represents notional amounts based on present value of future benefits under longevity reinsurance contracts.

(5)Includes spread-based stable value, structured settlements and funding agreement-backed notes.

Sales and additions for the three months ended March 31, 2026 decreased in comparison to the prior year period, primarily reflecting:

•significant longevity reinsurance sales in the prior year period.

•higher pension risk transfer and funding agreement-backed notes sales in the current year period.

The decrease in net account values for the three months ended March 31, 2026 primarily reflects:

•the negative impact of foreign exchange rate changes; and

•net outflows, primarily driven by longevity reinsurance and fee-based stable value products, partially offset by net sales of retail annuities.

•interest credited on customer funds, partially offset by a decrease in the market value of assets.

The increase in net account values for the twelve months ended March 31, 2026 primarily reflects:

•an increase in the market value of assets and interest credited on customer funds;

•net inflows, primarily driven by net sales of retail annuities, partially offset by net outflows from fee-based stable value products; and

•the positive impact of foreign exchange rate changes.