PRUDENTIAL FINANCIAL INC

•Effective January 1, 2026, traditional variable annuities with guaranteed living benefit riders and certain other annuity products previ ously 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 decreased $5 million, including a less unfavorable comparative net impact from our annual reviews and update of assumptions and other refinements. Results for 2026 included a net charge from this update of $91 million driven by unfavorable impacts related to mortality assumption updates on pension risk transfer transactions, while 2025 included a net charge of $93 million, mainly due to the establishment of reserves for certain fixed annuity products.

Excluding this item, adjusted operating income decreased $7 million, primarily reflecting:

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

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

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

Revenues increased $97 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, revenues increased $139 million, primarily reflecting:

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

•lower premiums, primarily driven by a decrease in structured settlements and pension risk transfer sales, with corresponding offsets in policyholders’ benefits, as discussed below.

Benefits and expenses increased $102 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, benefits and expenses increased $146 million, primarily reflecting:

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

•unfavorable changes in estimates of the liability for future policy benefits, primarily reflecting unfavorable mortality experience on pension risk transfer transactions; and

•higher general and administrative expenses.

•lower policyholders’ benefits, including changes in reserves, related to the lower structured settlements and pension risk transfer premiums, as discussed above.

Adjusted operating income increased $41 million, including a less unfavorable comparative net impact from our annual reviews and update of assumptions and other refinements, as discussed above.

Excluding this item, adjusted operating income increased $39 million, primarily reflecting:

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

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

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

Revenues increased $1,889 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, revenues increased $1,931 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 other products, and higher prepayment fee income.

Benefits and expenses increased $1,848 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, benefits and expenses increased $1,892 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 $355,745 million and $328,521 million for the three months ended June 30, 2026 and 2025, respectively, $357,150 million and $321,477 million for the six months ended June 30, 2026 and 2025, respectively, and $348,056 million for the twelve months ended June 30, 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 June 30, 2026 and 2025, “Other” activity also includes $645 million in receipts offset by $990 million in payments and $1,250 million in receipts offset by $1,126 million in payments, respectively, and for the six months ended June 30, 2026 and 2025, includes $1,972 million in receipts offset by $1,827 million in payments and $2,052 million in receipts offset by $2,082 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 June 30, 2026 decreased in comparison to the prior year period, primarily reflecting:

•significant longevity reinsurance sales in the prior year period; and

•lower sales of funding agreement-backed notes.

•higher sales of retail annuities.

Sales and additions for the six months ended June 30, 2026 decreased in comparison to the prior year period, primarily reflecting:

•significant longevity reinsurance sales in the prior year period.

•higher pension risk transfer sales in the current year period.

The increase in net account values for the three months ended June 30, 2026 primarily reflects:

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

The increase in net account values for the six and twelve months ended June 30, 2026 primarily reflects:

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

•the negative impact of foreign exchange rate changes.