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 second quarter of 2026 compared to the second quarter of 2025 increased $452 million, inclusive of a $23 million unfavorable variance from income taxes that was primarily driven by the increase in pre-tax earnings, as described below, partially offset by a lower effective tax rate in the current year. 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” increased $438 million, reflecting the following notable items:

“Total revenues” increased $1,935 million, primarily due to the following:

•“Other income (loss)” —$957 million favorable variance, primarily reflecting favorable changes in the market value of equity securities and on assets supporting experience-rated contractholder liabilities, which are fully offset in “Interest credited to policyholders’ account balances” as discussed below, partially offset by unfavorable changes in the market value of fixed income securities designated as trading;

•“Net investment income” —$557 million favorable variance, primarily reflecting business growth and higher reinvestment rates. See “—General Account Investments—Investment Results” for additional information; and

•“Change in value of market risk benefits, net of related hedging gains (losses)” — $355 million favorable variance, primarily reflecting favorable equity market performance and a favorable comparative impact from our annual reviews and update of assumptions and other refinements.

Partially offset by:

•“Premiums” — $102 million unfavorable variance, primarily reflecting lower pension risk transfer premiums, with corre sponding offsets in “policyholders’ benefits,” as discussed below.

“Total benefits and expenses” increased $1,497 million, primarily due to the following:

•“Interest credited to policyholders’ account balances” — $836 million unfavorable variance, primarily reflecting an unfavorable comparative impact from our annual reviews and update of assumptions and other refinements, as well as the impact from the favorable changes in assets supporting experience-rated contractholder liabilities, as described above, and business growth, primarily driven by retirement products. See Note 10 to the Unaudited Interim Consolidated Financial Statements for additional information regarding policyholders’ account balances;

•“Change in estimates of liability for future policy benefits” — $688 million unfavorable variance, primarily reflecting an unfavorable comparative impact from our annual reviews and update of assumptions and other refinements; and

•“General and administrative expenses” — $161 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.

Partially offset by:

•“Policyholders’ bene fits” — $430 million favorable variance, primarily reflecting favorable changes in reserves for certain individual life policies and lower pension risk transfer premiums; and

•“Dividends to policyholders” — $219 million unfavorable variance, primarily reflecting favorable changes in cumulative earnings in the Closed Block division. See “—Closed Block Division” for additional information.

“Net income (loss) attributable to Prudential Financial, Inc.” for the first six months of 2026 compared to the first six months of 2025 increased $342 million, inclusive of a $55 million favorable variance from income taxes that was primarily driven by a lower effective tax rate in the current year, partially offset by the increase in pre-tax earnings, as described below.

On a pre-tax basis, “Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities” increased $251 million, reflecting the following notable items:

“Total revenues” increased $3,991 million, primarily due to the following:

•“Premiums” — $1,260 million favorable variance, primarily reflecting higher pension risk transfer premiums with corresponding offsets in “Policyholders’ benefits,” as discussed below;

•“Net investment income” — $1,092 million favorable variance, primarily reflecting business growth, higher reinvestment rates and higher prepayment fee income;

•“Other income (loss)” — $707 million favorable variance, primarily reflecting favorable changes in the market value of equity securities and on assets supporting experience-rated contractholder liabilities, which are fully offset in “Interest credited to policyholders’ account balances” as discussed below, partially offset by unfavorable changes in the market value of fixed income securities designated as trading;

•“Realized investment gains (losses), net” — $499 million favorable variance, primarily reflecting a favorable comparative impact from our annual reviews and update of assumptions and other refinements for product-related embedded derivatives, favorable derivative results in the current year, 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 higher losses from the sales of fixed income securities in the current year. See “—General Account Investments—Realized Investment Gains and Losses” for additional information; and

•“Change in value of market risk benefits, net of related hedging gains (losses)” — $411 million favorable variance, primarily reflecting favorable equity market performance and a favorable comparative impact from our annual reviews and update of assumptions and other refinements.

“Total benefits and expenses” increased $3,740 million, primarily due to the following:

•“Interest credited to policyholders’ account balances” — $1,120 million unfavorable variance, primarily reflecting an unfavorable comparative impact from our annual reviews and update of assumptions and other refinements, as well as the impact from the favorable changes in assets supporting experience-rated contractholder liabilities, as described above, and business growth, primarily driven by retirement products;

•“Policyholders’ benefits” — $963 million unfavorable variance, primarily reflecting higher pension risk transfer premiums, as discussed above, partially offset by favorable changes in reserves for certain individual life policies;

•“Change in estimates of liability for future policy benefits” — $777 million unfavorable variance, primarily reflecting an unfavorable comparative impact from our annual reviews and update of assumptions and other refinements; and

•“General and administrative expenses” — $547 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.