PRUDENTIAL FINANCIAL INC

•In August 2026, the Company entered into an agreement to become a minority investor in a new U.K.-based joint venture sponsored by Standard Life, which is expected to expand the Company’s presence in the U.K. bulk pension annuity market. This transaction, subject to customary approvals, is expected to close in the first half of 2027.

•As discussed in “—Company Overview” above, effective in the third quarter of 2026, the results of the Company’s indirect 40% ownership interest in AFP Habitat, previously included in the former International Businesses’ segment results, are now included within the Retirement segment results, reflecting the Company’s recent organizational and strategic changes. This change has been applied retrospectively and did not have an impact on any of the Company’s previously issued Consolidated Financial Statements.

•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 were 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 $17 million, primarily reflecting:

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

•lower underwriting results, primarily reflecting unfavorable mortality experience and the net run-off of the pension risk transfer business; and

•lower earnings from joint ventures.

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

Revenues decreased $1,959 million, primarily reflecting:

•lower premiums, primarily driven by the absence of a significant pension risk transfer sale that occurred in the prior year period, with corresponding offsets in policyholders’ benefits, as discussed below.

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

Benefits and expenses decreased $1,942 million, primarily reflecting:

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

•higher interest credited to policyholders’ account balances, primarily driven by growth of retail annuities.

Adjusted operating income increased $34 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 increased $32 million, primarily reflecting:

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

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

•lower underwriting results, primarily reflecting unfavorable mortality experience and the net run-off of the pension risk transfer business; and

•lower earnings from joint ventures.

Revenues decreased $59 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, revenues decreased $17 million, primarily reflecting:

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

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

Benefits and expenses decreased $93 million. Excluding the impact of our annual reviews and update of assumptions and other refinements, as discussed above, benefits and expenses decreased $49 million, primarily reflecting:

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

•higher interest credited to policyholders’ account balances, driven by growth of retail annuities; and

•higher general and administrative expenses, including amortization costs, due to 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 from 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 $362,730 million and $348,056 million for the three months ended September 30, 2026 and 2025, respectively, $357,150 million and $321,477 million for the nine months ended September 30, 2026 and 2025, respectively, and $353,156 million for the twelve months ended September 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 September 30, 2026 and 2025, “Other” activity also includes $711 million in receipts offset by $921 million in payments and $940 million in receipts offset by $767 million in payments, respectively, and for the nine months ended September 30, 2026 and 2025, includes $2,683 million in receipts offset by $2,748 million in payments and $2,991 million in receipts offset by $2,849 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)Account values for pension risk transfers are calculated as the present value of future benefits. Additions for pension risk transfers are calculated on premiums received.

(6)Includes spread-based stable value, structured settlements and funding agreement-backed notes.

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

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

•lower sales of funding agreement-backed notes.

•higher sales of fee-based stable value products; and

•higher sales of retail annuities.

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

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

•lower sales of funding agreement-backed notes; and

•lower sales of structured settlement products.

•higher sales of fee-based stable value products; and

•higher sales of retail annuities.

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

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

•net outflows, primarily driven by pension risk transfer and longevity reinsurance products, partially offset by net inflows of retail annuities; and

•an increase in reinsurance ceded.

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

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

•an increase in reinsurance ceded and the negative impact of foreign exchange rate changes; and

•net outflows, primarily driven by pension risk transfer and longevity reinsurance products, partially offset by net inflows of retail annuities.