PRUDENTIAL FINANCIAL INC

The following table sets forth Group Insurance’s operating results and benefits and administrative expense ratios for the periods indicated:

(1)Ratio of policyholder benefits to earned premiums plus policy charges and fee income.

(2)The benefits and administrative expense ratios are measures used to evaluate profitability and efficiency.

(3)Benefit ratios reflect the impact of our annual reviews and update of assumptions and other refinements. Excluding these impacts, the group life, group disability and total Group Insurance benefit ratios were 81.2%, 78.5% and 80.4% for the three months ended June 30, 2026, respectively; 83.6%, 78.4% and 82.0% for the six months ended June 30, 2026, respectively; 83.1%, 75.3% and 80.9% for the three months ended June 30, 2025, respectively; and 85.2%, 70.6% and 81.1% for the six months ended June 30, 2025, respectively.

(4)Ratio of operating and variable expenses (excluding commissions) to net premiums plus policy charges and fee income, excluding third-party administrator pass-through fees and expenses.

Adjusted operating income increased $30 million, including a favorable comparative net impact from our annual reviews and update of assumptions and other refinements. Results for 2026 and 2025 included net benefits from this update of $28 million and $11 million, respectively.

Excluding this item, adjusted operating income increased $13 million, primarily reflecting:

•higher underwriting results in our group life business, driven by more favorable mortality experience on non-experience-rated contracts; and

•higher net investment spread results, driven by higher reinvestment rates and higher income from non-coupon investments.

•higher operating and variable expenses, largely supporting business growth; and

•lower underwriting results in our group disability business, primarily driven by less favorable claims experience on both short-term and long-term disability contracts.

Revenues increased $21 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, revenues increased $43 million, primarily reflecting:

•higher premiums, primarily driven by business growth in our group disability business; and

•higher net investment income, driven by higher reinvestment rates and higher income from non-coupon investments.

•lower policy charges and fee income, driven by higher policy returns due to more favorable mortality experience on experience-rated contracts.

Benefits and expenses decreased $9 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, benefits and expenses increased $30 million, primarily reflecting:

•higher policyholders’ benefits, including changes in reserves, driven by business growth and less favorable claims experience on both short-term and long-term disability contracts, partially offset by more favorable mortality experience on group life contracts; and

Adjusted operating income decreased $21 million, including a favorable comparative net impact from our annual reviews and update of assumptions and other refinements, as discussed above.

Excluding this item, adjusted operating income decreased $38 million, primarily reflecting:

•lower underwriting results in our group disability business, primarily driven by less favorable claims experience on long-term disability contracts; and

•higher operating and variable expenses, largely supporting business growth.

•higher underwriting results in our group life business, driven by more favorable mortality experience on non-experience-rated contracts, partially offset by a positive impact in the prior year period from a reserve refinement for certain experience-rated contracts; and

•higher net investment spread results, driven by higher reinvestment rates and higher income from non-coupon investments.

Revenues increased $7 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, revenues increased $29 million, primarily reflecting:

•higher premiums, primarily driven by business growth in our group disability business, partially offset by lower sales and a positive reserve refinement for certain experience-rated contracts in the prior year period in our group life business; and

•higher net investment income, driven by higher reinvestment rates and higher income from non-coupon investments.

•lower policy charges and fee income, driven by higher policy returns due to more favorable mortality experience on experience-rated contracts.

Benefits and expenses increased $28 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, benefits and expenses increased $67 million, primarily reflecting:

•higher policyholders’ benefits, including changes in reserves, driven by business growth and less favorable claims experience on long-term disability contracts, partially offset by more favorable mortality experience on group life contracts; and

The following table sets forth Group Insurance’s annualized new business premiums, as defined under “—Segment Measures” above, for the periods indicated:

(1)Amounts exclude new premiums resulting from rate changes on existing policies, from additional coverage under our Servicemembers’ Group Life Insurance contract and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts.

Total annualized new business premiums for the three months ended June 30, 2026 decreased $4 million, primarily reflecting:

•lower sales in the National market segment across our group life and group disability businesses.

•higher sales in the Premier market segment in our group disability business, primarily reflecting medical stop loss sales.

Total annualized new business premiums for the six months ended June 30, 2026 increased $122 million, primarily reflecting:

•higher sales in the Premier and National market segments in our group disability business, including medical stop loss sales and higher supplemental health product sales.

•lower sales in the National market segment in our group life business due to outsized sales in the prior year period.