Prudential Financial PRU · USD

SEGMENT INFORMATION Segments The Company’s principal operations consist of PGIM (the Company’s global investment management business), the U.S. Businesses (consisting of the Retirement Strategies, Group Insurance, and Individual Life businesses), the International Businesses, the Closed Block division, and the Company’s Corporate and Other operations. The Closed Block division is accounted for as a divested business that is reported separately from the Divested and Run-off Businesses that are included in Corporate and Other operations. Divested and Run-off Businesses consist of businesses that have been, or will be, sold or exited, including businesses that have been placed in wind-down status that do not qualify for “discontinued operations” accounting treatment under U.S. GAAP. The Company’s Corporate and Other operations include corporate items and initiatives that are not allocated to business segments as well as the Divested and Run-off Businesses described above. The PGIM segment provides a comprehensive array of investment management solutions across a variety of asset classes, including public fixed income, public equity, real estate, private credit and other alternatives, and multi-asset class strategies, to institutional and retail clients, as well as the Company’s affiliated insurance and retirement businesses.The U.S. Businesses offer a broad range of products and solutions that cover protection, retirement, savings, income and investment needs. The U.S. Businesses are organized into the following segments:•The Retirement Strategies segment, which includes the Institutional and Individual Retirement Strategies businesses, provides a broad range of retirement investment and income products and services to retirement plan sponsors in the public, private and not-for-profit sectors, and develops and distributes individual variable and fixed annuity products, primarily to the U.S. mass affluent and affluent markets. •The Group Insurance segment provides and distributes a full range of group life, long-term and short-term group disability, and group corporate-, bank- and trust-owned life insurance. In addition, the segment sells supplemental health solutions including accident, critical illness, and hospital indemnity.•The Individual Life segment develops and distributes variable life, universal life and term life insurance products primarily to the U.S. mass middle, mass affluent and affluent markets.

COMMITMENTS AND CONTINGENT LIABILITIES Commitments and GuaranteesCommercial Mortgage Loan Commitments As of December 31, 20252024 (in millions)Total outstanding mortgage loan commitments$1,851 $2,552 Portion of commitment where prearrangement to sell to investor exists$352 $578 The Company originates commercial mortgage loans as part of its commercial mortgage operations. Commitments for loans that will be held for sale are recognized as derivatives and recorded at fair value. In certain of these transactions, the Company prearranges that it will sell the loan to an investor, including to government sponsored entities as discussed below, after the Company funds the loan. The above amount includes unfunded commitments that are not unconditionally cancellable. For related credit exposure, there was an allowance for credit losses of $5 million and $2 million as of December 31, 2025 and 2024, respectively. The change in allowance is $3 million and $1 million for the years ended December 31, 2025 and 2024, respectively. Commitments to Purchase Investments (excluding Commercial Mortgage Loans) As of December 31, 20252024 (in millions)Expected to be funded from the general account and other operations outside the separate accounts$13,205 $11,664 Expected to be funded from separate accounts$339 $0 The Company has other commitments to purchase or fund investments, some of which are contingent upon events or circumstances not under the Company’s control, including those at the discretion of the Company’s counterparties. The Company anticipates a portion of these commitments will ultimately be funded from its separate accounts. The above amount includes unfunded commitments that are not unconditionally cancellable. There were no related charges for credit losses for the years ended December 31, 2025 or 2024. Additionally, the above amount includes an unfunded commitment of $320 million to Prismic Re, intended to fund future transactions executed by Prismic, that is required to be fully funded by the end of the second quarter of 2027. See Note 24 for additional information regarding the related party relationship between the Company and Prismic Re.

SHORT-TERM AND LONG-TERM DEBT Short-term Debt The table below presents the Company’s short-term debt at December 31, for the years indicated as follows:20252024 ($ in millions)Commercial paper:Prudential Financial$25 $25 Prudential Funding, LLC849 496 Subtotal commercial paper874 521 Current portion of long-term debt:Senior Notes536 0 Surplus Notes0 347 Mortgage Debt33 85 Subtotal Current portion of long-term debt569 432 Subtotal1,443 953 Less: Assets under set-off arrangements0 0 Total short-term debt(1)$1,443 $953 Supplemental short-term debt information:Portion of commercial paper borrowings due overnight$175 $310 Daily average commercial paper outstanding for the quarter ended$2,389 $1,823 Weighted average maturity of outstanding commercial paper, in days1115Weighted average interest rate on outstanding commercial paper3.72 %4.61 %__________(1)Includes Prudential Financial debt of $561 million and $25 million as of December 31, 2025 and 2024, respectively. At December 31, 2025 and 2024, the Company was in compliance with all covenants related to the above debt. Commercial Paper Prudential Financial has a commercial paper program with an authorized capacity of $3.0 billion. Prudential Financial’s commercial paper borrowings have generally been used to fund the working capital needs of its subsidiaries and provide short-term liquidity at Prudential Financial. Prudential Funding, LLC (“Prudential Funding”), a wholly-owned subsidiary of PICA, has a commercial paper program, with an authorized capacity of $7.0 billion. Prudential Funding commercial paper borrowings generally have served as an additional source of financing to meet the working capital needs of PICA and its subsidiaries. Prudential Funding also lends to other subsidiaries of Prudential Financial up to limits agreed with the NJDOBI. Prudential Funding maintains a support agreement with PICA whereby PICA has agreed to maintain Prudential Funding’s tangible net worth at a positive level. Additionally, Prudential Financial has issued a subordinated guarantee covering Prudential Funding’s $7.0 billion commercial paper program. Federal Home Loan Bank of New York PICA is a member of the FHLBNY. Membership allows PICA access to the FHLBNY’s financial services, including the ability to obtain collateralized loans and to issue collateralized funding agreements. Under applicable law, the funding agreements issued to the FHLBNY have priority claim status above debt holders of PICA.

INCOME TAXES The following schedule discloses significant components of income tax expense (benefit) for each year presented:Year Ended December 31,202520242023(in millions)Current tax expense (benefit):U.S.$60 $495 $(4)State and local16 35 25 Foreign579 755 667 Total current tax expense (benefit)655 1,285 688 Deferred tax expense (benefit):U.S.(1)(125)(545)323 State and local2 (1)0 Foreign(1)521 (232)(398)Total deferred tax expense (benefit)398 (778)(75)Total income tax expense (benefit) on income (loss) before equity in earnings of joint ventures and other operating entities1,053 507 613 Income tax expense (benefit) on equity in earnings of joint ventures and other operating entities40 41 34 Income tax expense (benefit) on discontinued operations0 0 0 Income tax expense (benefit) reported in equity related to:Other comprehensive income (loss)1,003 364 (837)Total income taxes$2,096 $912 $(190)__________(1)The U.S. deferred tax includes a benefit of $318 million, which is fully offset by a corresponding charge in foreign deferred taxes related to one of the Company’s Bermuda operating insurance companies. These amounts are due to changes in Bermuda tax law in 2025. Overall, there is no impact on total taxes, as all earnings of the Bermuda entity are subject to U.S. taxation at a rate of 21%Reconciliation of Expected Tax at Statutory Rates to Reported Income Tax Expense (Benefit) The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% applicable for 2025 and the reported income tax expense (benefit) are summarized as follows:As of December 31,2025($ in millions)Expected federal income tax expense/(benefit)$978 21.0 %State taxes (net of federal benefit)11 0.2 %Tax credits(125)(2.7)%Foreign tax credits(52)(1.1)%General business credits(73)(1.6)%Effect of cross-border tax laws(143)(3.1)%GILTI48 1.0 %Change in tax law—Bermuda(318)(6.8)%Full inclusion—Bermuda112 2.4 %Other15 0.3 %Nontaxable or nondeductible items(137)(2.9)%Nontaxable investment income(160)(3.4)%Nondeductible expenses23 0.5 %Other reconciling items(122)(2.6)%Foreign tax effects585 12.6 %Japan210 4.5 %National & local tax rate difference than U.S.143 3.1 %Other67 1.4 %Brazil169 3.6 %National tax rate difference than U.S.80 1.7 %Change in tax law72 1.5 %Other17 0.4 %Bermuda194 4.2 %National tax rate difference than U.S.(112)(2.4)%Change in tax law318 6.8 %Other(12)(0.3)%Other foreign jurisdictions12 0.3 %Changes in unrecognized tax benefits6 0.

SHARE-BASED PAYMENTS Omnibus Incentive Plan Prudential Financial, Inc.’s Omnibus Incentive Plan provides stock-based awards including stock options, stock appreciation rights, restricted stock shares, restricted stock units, stock settled performance shares, and cash settled performance units. Dividend equivalents are generally provided on restricted stock shares and restricted stock units outstanding as of the record date. Dividend equivalents are generally accrued on target performance shares and units outstanding as of the record date. These dividend equivalents are paid only on the performance shares and units released up to a maximum of the target number of shares and units awarded. Generally, the requisite service period is the vesting period. There were 12,496,717 authorized shares available for grant under the Omnibus Incentive Plan as of December 31, 2025.Assurance IQ (“AIQ”) AcquisitionThe Company acquired AIQ on October 10, 2019. The terms of the acquisition included compensation awards that involved share-based payment arrangements that are linked to retention and therefore fall under the reporting requirements of ASC 718, Stock Compensation. These compensation awards include stock options, restricted stock units and performance shares. Compensation Costs Compensation cost for restricted stock units and performance shares granted to employees is measured by the share price of the underlying Common Stock at the date of grant. Compensation cost for employee stock options is based on the fair values estimated on the grant date. Under the Omnibus Incentive Plan, the fair value of each stock option award is estimated using a binomial option pricing model on the date of grant for stock options issued to employees. For the awards related to the AIQ acquisition, the fair value of each stock option award is based on its intrinsic value on the date of grant. There were no stock options granted in 2025, 2024 and 2023.Expected volatility is based on historical volatility of Prudential Financial’s Common Stock and implied volatility from traded options on Prudential Financial’s Common Stock. The Company uses historical data and expectations of future exercise patterns to estimate option exercises and employee terminations within the valuation model. The expected term of options granted represents the period of time that options granted are expected to be outstanding.

LEASESThe Company occupies leased office space and other facilities in many locations under various long-term leases and has entered into numerous leases covering the long-term use of computers and other equipment. The leases, depending on their specific terms, are classified as either operating or finance with the vast majority of leases falling under the operating classification. The leases in the Company’s portfolio have remaining lease terms from less than one year to 23 years, some of which include options to extend the leases for up to 15 years, and some of which include options to terminate the leases within 12 years. An analysis of all economic and non-economic factors associated with leases containing certain options, including factors such as the existence of cancellation penalties, leasehold improvements made to the underlying assets and location of the underlying assets, is conducted to determine whether those leases are reasonably certain to renew, and hence, should be included in the lease term that is used to establish the right-of-use assets and lease liabilities for those arrangements.The Company does not have residual guarantees associated with its lessee arrangements, nor are there any restrictions or covenants associated with its lease arrangements.Lessee Supplemental balance sheet information related to leases where the Company is the lessee is included below. Right-of-use assets and lease liabilities are included within “Other assets” and “Other liabilities” respectively.December 31,20252024($ in millions)Operating Leases:Right-of-use assets$366 $373 Lease liabilities$408 $408 Weighted average remaining lease term8 years9 yearsWeighted average discount rate2.82 %2.58 %Maturities of operating lease liabilities are as follows:December 31, 2025(in millions)2026$92 202781 202856 202946 203041 Thereafter189 Total lease payments505 Less imputed interest(97)Total$408 Lease expense is included in “General and administrative expenses,” which consisted of operating lease and short-term costs. Operating lease costs were $121 million, $123 million, and $121 million for the years ended December 31, 2025, 2024, and 2023, respectively. Short-term lease costs were $70 million, $68 million, and $74 million for the years ended December 31, 2025, 2024, and 2023, respectively.

DEFERRED POLICY ACQUISITION COSTS, DEFERRED REINSURANCE, DEFERRED SALES INDUCEMENTS AND VALUE OF BUSINESS ACQUIRED Deferred Policy Acquisition CostsThe following tables show a rollforward for the lines of business that contain material DAC balances, along with a reconciliation to the Company’s total DAC balance:Year Ended December 31, 2025Retirement StrategiesIndividual LifeInternational BusinessesTotalIndividual VariableTerm LifeVariable/Universal Life(in millions)Balance, BOP$3,713 $2,215 $4,878 $9,304 $20,110 Capitalization531 195 740 1,197 2,663 Amortization expense(465)(207)(235)(697)(1,604)Other adjustments(1)17 0 7 (214)(190)Foreign currency adjustment0 0 0 88 88 Balance, EOP$3,796 $2,203 $5,390 $9,678 21,067 Other businesses463 Total DAC balance$21,530 __________(1)Includes the impact of the reinsurance transaction with Prismic Re International in International Businesses. See Note 15 for additional information.Year Ended December 31, 2024Retirement StrategiesIndividual LifeInternational Businesses(1)TotalIndividual VariableTerm LifeVariable/Universal Life(in millions)Balance, BOP$3,676 $2,237 $5,364 $9,351 $20,628 Capitalization423 186 734 1,139 2,482 Amortization expense(386)(208)(241)(670)(1,505)Other adjustments(2)0 0 (979)(40)(1,019)Foreign currency adjustment0 0 0 (476)(476)Balance, EOP$3,713 $2,215 $4,878 $9,304 20,110 Other businesses338 Total DAC balance$20,448 __________(1)Prior period amounts have been updated to conform to current presentation.(2)Includes the impacts of the reinsurance transactions with Wilton Re and Somerset Re in Individual Life (Universal Life). See Note 15 for additional informationYear Ended December 31, 2023Retirement StrategiesIndividual LifeInternational Businesses(1)TotalIndividual VariableTerm LifeVariable/Universal Life(in millions)Balance, BOP$4,171 $2,288 $5,000 $8,941 $20,400 Capitalization261 160 608 1,196 2,225 Amortization expense(366)(212)(244)(641)(1,463)Other adjustments(2)(390)1 0 20 (369)Foreign currency adjustment0 0 0 (165)(165)Balance, EOP$3,676 $2,237 $5,364 $9,351 20,628 Other businesses228 Total DAC balance$20,856 __________(1)Prior period amounts have been updated to conform to current presentation.(2)Includes the impact of the reinsurance transaction with AuguStar in Individual Retirement Strategies. See Note 15 for additional information.

Because of the size and scope of our business, we are subject to numerous and evolving cybersecurity risks, any of which, if it materializes, could affect our business strategy, results of operations, or financial condition. See “Item 1A. Risk Factors—Operational Risk” for a discussion of such risks.Cybersecurity risk management is integrated within our risk management framework. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Risk Management” for additional information regarding our risk management processes. We conduct risk identification through several processes at the business unit, corporate, senior management, and Board levels. This framework includes escalation points to Prudential’s risk committees, allowing cyber risk and control matters to be elevated to the Board of Directors or its Audit Committee for oversight. In order to respond to the threat of security breaches and cyber-attacks, we have developed an information security program designed to protect and preserve the confidentiality, integrity, and continued availability of information owned by, or in the care of, the Company. This information security program provides for the coordination of various corporate functions and governance groups, including global technology, risk, legal, compliance and corporate audit, and serves as a framework for the execution of responsibilities across businesses and operational roles. Among other things, the information security program establishes security standards for our technological resources and includes training for employees, contractors and third parties. Employees with access to our Company’s systems are subject to comprehensive annual training on responsible information security, data security, and cybersecurity practices and how to protect data against cyber threats. As part of the information security program, we routinely engage independent outside advisors to assess the effectiveness of our program and our internal response preparedness. We also regularly engage with the broader cybersecurity community and monitor cyber threat information.To address risks associated with third parties, Prudential has established an enterprise-wide Third-Party Risk Management Program. This program’s features include, among other things, identifying, assessing and managing cybersecurity risks throughout the life of our third-party relationships.