PRUDENTIAL FINANCIAL INC

In August 2026, the Company announced its intent to exit certain of its emerging markets businesses previously included within the International Businesses segment. As a result, effective in the third quarter of 2026, (i) the operating results of certain businesses, including its Brazil and Mexico operations, are reflected in Divested and Run-off Businesses included within Corporate and Other operations, and (ii) the former International Businesses segment has been renamed “Japan Businesses.” In connection with this change, the results of the Company’s indirect 40% ownership interest in AFP Habitat, previously included within the International Businesses’ segment results, are now included within the Retirement segment results, reflecting the Company’s recent organizational and strategic changes. These changes have been applied retrospectively and did not have an impact on any of the Company’s previously issued Consolidated Financial Statements.

•Aspreviously disclosed, in January 2026, The Prudential Life Insurance Company, Ltd. (“Prudential of Japan”), a Japanese insurance subsidiary of the Company, reported the findings of its internal investigation into incidents of misconduct involving certain employees of Prudential of Japan. In response to these findings, Prudential of Japan has been implementing a series of actions which include strengthening oversight of sales practices, governance and risk management, as well as leadership changes. Moreover, in February 2026, following discussions with the Japanese regulator, the Company voluntarily suspended new sales activity at Prudential of Japan for a 90-day period commencing February 9, 2026. In April 2026, the Company announced the voluntary extension of the new sales suspension for an additional 180 days through November 5, 2026, and in October 2026, pursuant to a business suspension order issued by the FSA, announced that the suspension of new sales will continue through January 2027, and will also include a partial suspension of new sales at Gibraltar Life. See “—Company Overview” above for additional information including the estimated impacts resulting from these actions.

•In October 2026, the Company entered into an agreement with Prismic Life Reinsurance International, Ltd. (“Prismic Re International”), a wholly-owned subsidiary of Prismic, to reinsure approximately $6 billion of policyholders’ account balances for certain USD-denominated Japanese whole life policies originated by the Company’s Japanese affiliates. This follows an initial transaction in March 2025 that reinsured approximately $7 billion of policyholders’ account balances.

The results of our Japan Businesses’ operations are translated on the basis of weighted average monthly exchange rates, inclusive of the effects of the intercompany arrangement discussed in “—Results of Operations—Impact of Foreign Currency Exchange Rates” above. To provide a better understanding of operating performance within the Japan Businesses, where indicated below, we have analyzed our results of operations excluding the effect of the year-over-year change in foreign currency exchange rates. Our results of operations, excluding the effect of foreign currency fluctuations, were derived by translating foreign currencies to USD at uniform exchange rates for all periods presented, including for constant dollar information discussed below. For our Japan operations, we used an exchange rate of 147 yen per USD. In addition, for constant dollar information discussed below, activity denominated in USD is generally reported based on the amounts as transacted in USD. Annualized new business premiums presented on a constant exchange rate basis in the “Sales Results” section below reflect translation based on these same uniform exchange rates.

The following table sets forth the Japan Businesses’ operating results for the periods indicated:

Adjusted operating income decreased $191 million, including an unfavorable comparative net impact of $1 million from foreign currency fluctuations.

Excluding this item, adjusted operating income decreased $190 million, primarily reflecting:

•higher expenses, primarily driven by remediation costs associated with the Prudential of Japan matter, as discussed above;

•lower underwriting results, driven by impacts from the Prudential of Japan matter, including the suspension of sales and surrenders, partially offset by growth in retirement and savings products; and

•lower net investment spread results, driven by lower income from non-coupon investments.

Revenue decreased $238 million, including an unfavorable comparative net impact of $105 million from foreign currency fluctuations.

Excluding this item, revenue decreased $133 million, primarily reflecting:

•lower premiums attributable to the decline of traditional life insurance business in force and the impact of the sales suspension related to the Prudential of Japan matter; and

•lower income from non-coupon investments;

•higher net investment income, driven by higher reinvestment rates and portfolio growth from retirement and savings products; and

•higher policy charges and fee income, driven by growth in retirement and savings products, and higher surrender charges.

Benefits and expenses decreased $47 million, including a favorable comparative net impact of $104 million from foreign currency fluctuations.

Excluding this item, benefits and expenses increased $57 million, primarily reflecting:

•higher general and administrative expenses, primarily driven by remediation costs associated with the Prudential of Japan matter;

•higher interest credited to policyholders’ account balances, reflecting growth in retirement and savings products; and

•unfavorable changes in estimates of the liability for future policy benefits, reflecting higher surrenders.

•lower policyholders’ benefits, including changes in reserves, due to the decline of traditional life insurance business in force, including the suspension of sales and surrenders related to the Prudential of Japan matter.

Adjusted operating income decreased $214 million, including an unfavorable comparative net impact of $3 million from foreign currency fluctuations, and a favorable comparative net impact of $48 million from our annual reviews and update of assumptions and other refinements. Results for 2026 included a net benefit of $40 million, driven by impacts related to assumptions for mortality, morbidity and policyholder behavior, while 2025 included a net charge of $8 million.

Excluding these items, adjusted operating income decreased $259 million, primarily reflecting:

•higher expenses, primarily driven by remediation costs associated with the Prudential of Japan matter, as discussed above; and

•lower underwriting results, driven by impacts from the Prudential of Japan matter, including the suspension of sales and surrenders, partially offset by growth in retirement and savings products.

•higher net investment spread results, driven by higher reinvestment rates, portfolio growth from retirement and savings products, and higher prepayment fee income, as well as higher income from non-coupon investments; and

•higher surrender charges, including the elevated impacts from the Prudential of Japan matter.

Revenue decreased $168 million, including an unfavorable comparative net impact of $285 million from foreign currency fluctuations and a favorable comparative net impact of $206 million from our annual reviews and update of assumptions and other refinements, as discussed above.

Excluding these items, revenue decreased $89 million, primarily reflecting:

•lower premiums attributable to the decline of traditional life insurance business in force and the impact of the sales suspension related to the Prudential of Japan matter.

•higher net investment income, driven by higher reinvestment rates, portfolio growth from retirement and savings products, and higher prepayment fee income;

•higher income from non-coupon investments; and

•higher policy charges and fee income, driven by growth in retirement and savings products and higher surrender charges.

Benefits and expenses increased $46 million, including a favorable comparative net impact of $282 million from foreign currency fluctuations and an unfavorable comparative net income of $158 million from our annual reviews and update of assumptions and other refinements, as discussed above.

Excluding these items, benefits and expenses increased $170 million, primarily reflecting:

•higher general and administrative expenses, driven by remediation costs associated with the Prudential of Japan matter;

•higher interest credited to policyholders’ account balances, reflecting growth in retirement and savings products; and

•unfavorable changes in estimates of the liability for future policy benefits, reflecting higher surrenders.

•lower policyholders’ benefits, including changes in reserves, due to the decline of traditional life insurance business in force, including the suspension of sales and elevated surrenders related to the Prudential of Japan matter.

The following table sets forth annualized new business premiums, as defined under “—Results of Operations—Segment Measures” above, on an actual and constant exchange rate basis for the periods indicated:

(1)2026 results reflect the impact of the sales suspension resulting from the Prudential of Japan matter.

The amount of annualized new business premiums and the sales mix, in terms of types and currency denomination of products, for any given period can be significantly impacted by several factors, including but not limited to: the addition of new products, discontinuation of existing products, changes in credited interest rates for certain products and other product modifications, changes in premium rates, changes in interest rates or fluctuations in currency markets, changes in tax laws, changes in life insurance regulations or changes in the competitive environment. Sales volume may increase or decrease prior to certain of these changes becoming effective and then fluctuate in the other direction following such changes.

Our diverse product portfolio, in terms of currency mix and premium payment structure, allows us to adapt to changing market and competitive dynamics. We regularly examine our product offerings and their related profitability and reprice or discontinue sales of certain products that do not meet our profit expectations. The impact of these actions, coupled with the introduction of certain new products, has generally resulted in higher sales of products denominated in USD relative to products denominated in other currencies; however, more recently we have experienced an increase in sales of our yen-denominated product offerings as a result of growing demand for these products.

The tables below present annualized new business premiums on a constant exchange rate basis, by product category and distribution channel, for the periods indicated:

(1)2026 results reflect the impact of the sales suspension resulting from the Prudential of Japan matter.

(2)Includes retirement income, endowment and savings variable life.

(3)Includes single-payment market value adjusted investment contracts, single-payment whole life products and recurring-payment annuity products.

Annualized new business premiums for the three months ended September 30, 2026, on a constant exchange rate basis, decreased $163 million:

•Life Planner sales decreased $165 million, driven by lower sales across all products resulting from the sales suspension at Prudential of Japan, as discussed above;

•Bank channel sales decreased $19 million, primarily driven by lower investment contract product sales;

•Life Consultant sales decreased $11 million, primarily driven by lower life and investment contract product sales; and

•Independent Agency and Other sales increased $32 million, driven by higher investment contract product sales, partially offset by lower retirement and life product sales.

Annualized new business premiums for the nine months ended September 30, 2026, on a constant exchange rate basis, decreased $499 million:

•Life Planner sales decreased $426 million, driven by lower sales across all products resulting from the sales suspension at Prudential of Japan, as discussed above;

•Life Consultant decreased $75 million, primarily driven by lower investment contract and life product sales;

•Bank channel sales decreased $53 million, primarily driven by lower investment contract product sales; and

•Independent Agency and Other sales increased $55 million, driven by higher investment contract product sales, partially offset by lower retirement and accident and health product sales.