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.” decreased $43 million for the third quarter of 2026 compared with the third quarter of 2025, inclusive of a $125 million favorable variance from income taxes that was primarily driven by a lower effective tax rate in the current year and the decrease in pre-tax earnings, as discussed below. 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 $141 million, reflecting the following notable items:

“Total revenues” decreased $3,439 million, primarily due to the following:

•“Premiums” — $2,390 million unfavorable variance, primarily reflecting lower pension risk transfer premiums, with corre sponding offsets in “Policyholders’ benefits”;

•“Other income (loss)” —$2,186 million unfavorable variance, primarily reflecting unfavorable changes in the market valueof fixed income securities designated as trading andequity securities, as well as on assets supporting experience-rated contractholder liabilities, which are fully offset in “Interest credited to policyholders’ account balances,” andlower revenues related to certain consolidated entities, with corresponding offsets in “General and administrative expenses”;

•“Change in value of market risk benefits, net of related hedging gains (losses)” — $356 million unfavorable variance, primarily reflecting unfavorable equity market performance, partially offset by the impact of higher interest rates;

•“Realized investment gains (losses), net” — $1,046 million favorable variance, primarily reflecting 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 write-downs on fixed income securities, largely driven by intent to sell impairments in the current quarter related to a reinsurance transaction; and

•“Net investment income” —$443 million favorable variance, primarily reflecting business growth and higher reinvestment rates. See “—General Account Investments—Investment Results” for additional information.

“Total benefits and expenses” decreased $3,298 million, primarily due to the following:

•“Policyholders’ bene fits” — $2,160 million favorable variance, primarily reflecting lower pension risk transfer premiums, as discussed above;

•“Change in estimates of liability for future policy benefits” — $381 million favorable variance, primarily reflecting the impact of higher interest rates on certain individual life and retirement products;

•“General and administrative expenses” — $354 million favorable variance, net of deferrals, primarily reflecting lower variable expenses related to certain consolidated entities, which are largely offset in “Other income (loss),” as discussed above, partially offset by higher operating expenses, including remediation costs associated with the Prudential of Japan matter;

•“Dividends to policyholders” — $306 million favorable variance, primarily reflecting changes in cumulative earnings in the Closed Block division. See “—Closed Block Division” for additional information; and

•“Interest credited to policyholders’ account balances” — $136 million favorable variance, primarily reflecting the impact from the changes in assets supporting experience-rated contractholder liabilities, as discussed above, partially offset by business growth. See Note 10 to the Unaudited Interim Consolidated Financial Statements for additional information regarding policyholders’ account balances.

“Net income (loss) attributable to Prudential Financial, Inc.” increased $299 million for the first nine months of 2026 compared with the first nine months of 2025, inclusive of a $180 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 discussed below.

On a pre-tax basis, “Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities” increased $110 million, reflecting the following notable items:

“Total revenues” increased $552 million, primarily due to the following:

•“Realized investment gains (losses), net” — $1,545 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 changes 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, and write-downs on, fixed income securities in the current year; and

•“Net investment income” — $1,535 million favorable variance, primarily reflecting business growth, higher reinvestment rates and higher prepayment fee income.

Partially offset by:

•“Other income (loss)” — $1,479 million unfavorable variance, primarily reflecting unfavorable changes in the market value of fixed income securities designated as trading, and lower revenues related to certain consolidated entities, with corresponding offsets in “General and administrative expenses,” partially offset by favorable changes on assets supporting experience-rated contractholder liabilities, which are fully offset in “Interest credited to policyholders’ account balances”; and

•“Premiums” — $1,130 million unfavorable variance, primarily reflecting lower pension risk transfer premiums and the decline of traditional life insurance business in force in Japan, both with corresponding offsets in “Policyholders’ benefits.”

“Total benefits and expenses” increased $442 million, primarily due to the following:

•“Interest credited to policyholders’ account balances” — $984 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 changes in assets supporting experience-rated contractholder liabilities, as discussed above, and business growth, primarily driven by retirement products;

•“Change in estimates of liability for future policy benefits” — $396 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” — $193 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 lower variable expenses related to certain consolidated entities, which are largely offset in “Other income (loss),” as discussed above.

Partially offset by:

•“Policyholders’ benefits” — $1,197 million favorable variance, primarily reflecting lower pension risk transfer premiums and the decline of traditional life insurance business in force in Japan, as discussed above.