13ea9a1b2f6ab1b29e0a95b48f84c17fa0fac9d2495415854de66838973dca51

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

79839e6f8476d6f86fb08ecc250dae615998c5c03116196e4c61358104d82002

| Metric | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Variable Annuity Account Values (USD Million)** | 113,941  **[0001137774-23-000011_exhibit992-4q22qfs.htm:24]**  | 117,300  **[0001137774-23-000067_pru-20230331.htm:164]**  | 109,100  **[0001137774-23-000094_pru-20230630.htm:192]**  | 104,100  **[0001137774-23-000117_pru-20230930.htm:198]**  | 98,864  **[0001137774-24-000007_exhibit992-4q23qfs.htm:26]**  | 115,300  **[0001137774-24-000068_pru-20240331.htm:130]**  | 115,300  **[0001137774-24-000151_pru-20240630.htm:145]**  | 128,793  **[0001137774-24-000247_pru-20240930.htm:148]**  |
| **Fixed Annuity Account Values (USD Million)** | 6,081  **[0001137774-23-000011_exhibit992-4q22qfs.htm:24]**  | 6,500  **[0001137774-23-000067_pru-20230331.htm:164]**  | 5,700  **[0001137774-23-000094_pru-20230630.htm:192]**  | 6,000  **[0001137774-23-000117_pru-20230930.htm:198]**  | 6,600  **[0001137774-24-000045_pru-20231231.htm:139]**  | 7,700  **[0001137774-24-000068_pru-20240331.htm:130]**  | 8,600  **[0001137774-24-000151_pru-20240630.htm:145]**  | 9,558  **[0001137774-24-000247_pru-20240930.htm:148]**  |
| **Average Amortized Cost of U.S. Dollar-Denominated Fixed Maturities (USD Billion)** | 60.0  **[0001137774-23-000040_pru-20221231.htm:191]**  | 60.1  **[0001137774-23-000067_pru-20230331.htm:187]**  | 60.2  **[0001137774-23-000094_pru-20230630.htm:226]**  | 61.1  **[0001137774-23-000117_pru-20230930.htm:231]**  | 62.7  **[0001137774-24-000045_pru-20231231.htm:177]**  | 66.7  **[0001137774-24-000068_pru-20240331.htm:151]**  | 67.0  **[0001137774-24-000151_pru-20240630.htm:174]**  | 69.2  **[0001137774-24-000247_pru-20240930.htm:177]**  |
| **Average Amortized Cost of Australian Dollar-Denominated Fixed Maturities (USD Billion)** | 6.1  **[0001137774-23-000040_pru-20221231.htm:191]**  | 4.9  **[0001137774-23-000067_pru-20230331.htm:187]**  | 4.7  **[0001137774-23-000094_pru-20230630.htm:222]**  | 4.3  **[0001137774-23-000117_pru-20230930.htm:231]**  | N/A | 3.7  **[0001137774-24-000068_pru-20240331.htm:151]**  | 3.7  **[0001137774-24-000151_pru-20240630.htm:174]**  | 2.8  **[0001137774-24-000247_pru-20240930.htm:177]**  |
| **Loan-to-Value Ratio for Commercial Mortgage Loans (%)** | N/A | N/A | N/A | 59  **[0001137774-23-000117_pru-20230930.htm:248]**  | 58  **[0001137774-24-000045_pru-20231231.htm:190]**  | 58  **[0001137774-24-000068_pru-20240331.htm:162]**  | 59  **[0001137774-24-000151_pru-20240630.htm:189]**  | 60  **[0001137774-24-000247_pru-20240930.htm:192]**  |
| **Debt Service Coverage Ratio for Commercial Mortgage Loans (Times)** | N/A | N/A | N/A | 2.48  **[0001137774-23-000117_pru-20230930.htm:248]**  | 2.46  **[0001137774-24-000045_pru-20231231.htm:190]**  | 2.45  **[0001137774-24-000068_pru-20240331.htm:162]**  | 2.44  **[0001137774-24-000151_pru-20240630.htm:189]**  | 2.42  **[0001137774-24-000247_pru-20240930.htm:192]**  |
| **PICA’s RBC Ratio (%)** | 383  **[0001137774-23-000117_pru-20230930.htm:256]**  | 383  **[0001137774-23-000067_pru-20230331.htm:206]**  | 383  **[0001137774-23-000094_pru-20230630.htm:248]**  | 375  **[PRU_3363869_12]**  | N/A | 435  **[0001137774-24-000068_pru-20240331.htm:173]**  | 435  **[0001137774-24-000151_pru-20240630.htm:200]**  | 435  **[0001137774-24-000247_pru-20240930.htm:203]**  |
| **Prudential of Japan Solvency Margin Ratio (%)** | 771  **[0001137774-23-000040_pru-20221231.htm:213]**  | 800  **[0001137774-23-000067_pru-20230331.htm:206]**  | 772  **[0001137774-23-000117_pru-20230930.htm:256]**  | 762  **[0001137774-24-000045_pru-20231231.htm:199]**  | 787  **[0001137774-24-000068_pru-20240331.htm:173]**  | 759  **[0001137774-24-000151_pru-20240630.htm:200]**  | 759  **[0001137774-24-000151_pru-20240630.htm:200]**  | 762  **[0001137774-24-000247_pru-20240930.htm:203]**  |
| **Gibraltar Life Solvency Margin Ratio (%)** | 874  **[0001137774-23-000040_pru-20221231.htm:213]**  | 914  **[0001137774-23-000067_pru-20230331.htm:206]**  | 903  **[0001137774-23-000094_pru-20230630.htm:249]**  | 887  **[0001137774-24-000045_pru-20231231.htm:199]**  | 948  **[0001137774-24-000068_pru-20240331.htm:173]**  | 940  **[0001137774-24-000151_pru-20240630.htm:200]**  | 940  **[0001137774-24-000151_pru-20240630.htm:200]**  | 947  **[0001137774-24-000247_pru-20240930.htm:203]**  |
| **Net Amount at Risk (USD Million)** | 9,227  **[0001137774-23-000011_exhibit992-4q22qfs.htm:26]**  | 11,332  **[0001137774-23-000062_exhibit992-1q23qfs.htm:26]**  | 10,885  **[0001137774-23-000088_exhibit992-2q23qfs.htm:26]**  | 13,417  **[0001137774-23-000114_exhibit992-3q23qfs.htm:26]**  | 9,753  **[0001137774-24-000007_exhibit992-4q23qfs.htm:27]**  | 8,970  **[0001137774-24-000068_pru-20240331.htm:78]**  | 9,358  **[0001137774-24-000151_pru-20240630.htm:87]**  | 7,878  **[0001137774-24-000247_pru-20240930.htm:91]**  |
| **Cash Surrender Value (USD Million)** | N/A | 201,238  **[0001137774-23-000067_pru-20230331.htm:89]**  | 199,158  **[0001137774-23-000094_pru-20230630.htm:102]**  | 189,023  **[0001137774-23-000117_pru-20230930.htm:110]**  | 197,418  **[0001137774-24-000045_pru-20231231.htm:386]**  | 198,600  **[0001137774-24-000068_pru-20240331.htm:58]**  | 195,478  **[0001137774-24-000151_pru-20240630.htm:66]**  | 199,533  **[0001137774-24-000247_pru-20240930.htm:70]**  |
| **Weighted-Average Crediting Rate (%)** | N/A | 2.87  **[0001137774-23-000067_pru-20230331.htm:100]**  | 3.11  **[0001137774-23-000094_pru-20230630.htm:116]**  | 2.87  **[0001137774-23-000117_pru-20230930.htm:124]**  | 2.78  **[0001137774-24-000045_pru-20231231.htm:409]**  | 3.55  **[0001137774-24-000068_pru-20240331.htm:71]**  | 3.23  **[0001137774-24-000151_pru-20240630.htm:80]**  | 2.82  **[0001137774-24-000247_pru-20240930.htm:84]**  |
| **Annualized New Business Premiums (USD Million)** | N/A | 319  **[0001137774-23-000067_pru-20230331.htm:170]**  | 490  **[0001137774-23-000094_pru-20230630.htm:206]**  | 491  **[0001137774-23-000117_pru-20230930.htm:214]**  | 598  **[0001137774-24-000007_exhibit992-4q23qfs.htm:37]**  | 517  **[0001137774-24-000068_pru-20240331.htm:140]**  | 519  **[0001137774-24-000151_pru-20240630.htm:160]**  | 588  **[0001137774-24-000247_pru-20240930.htm:163]**  |

3514c8b8b67d994d1c7d4ed8cc69d316ac535347a399effcf5d3ea3ef4534a6d

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

Selling, General, and Administrative Expenses (SG&A) (USD, millions)

Research and Development (R&D) (USD, millions)

Depreciation and Amortization (D&A) (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

f6c08f393d805957b31a265a7ba623411e65a38b89f55cded7460df1cf256836

| Segment/Metric [Unit: $ Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **PGIM**                         | **960**  **[0001137774-23-000011_exhibit992-4q22qfs.htm:16]**  | **898**  **[0001137774-23-000067_pru-20230331.htm:122]**  | N/A     | N/A     | **915**  **[0001137774-24-000007_exhibit992-4q23qfs.htm:17]**  | **990**  **[0001137774-24-000068_pru-20240331.htm:98]**  | **963**  **[0001137774-24-000151_pru-20240630.htm:109]**  | **1,021**  **[0001137774-24-000247_pru-20240930.htm:114]**  |
| **Institutional Retirement Strategies** | N/A     | **4,889**  **[0001137774-23-000067_pru-20230331.htm:122]**  | **2,737**  **[0001137774-23-000088_exhibit992-2q23qfs.htm:21]**  | **221**  **[0001137774-23-000114_exhibit992-3q23qfs.htm:21]**  | N/A     | **11,538**  **[0001137774-24-000068_pru-20240331.htm:98]**  | **4,041**  **[0001137774-24-000151_pru-20240630.htm:109]**  | **9,473**  **[0001137774-24-000247_pru-20240930.htm:114]**  |
| **Individual Retirement Strategies** | N/A     | **1,095**  **[0001137774-23-000067_pru-20230331.htm:122]**  | **1,119**  **[0001137774-23-000088_exhibit992-2q23qfs.htm:23]**  | **1,153**  **[0001137774-23-000114_exhibit992-3q23qfs.htm:23]**  | N/A     | **1,214**  **[0001137774-24-000068_pru-20240331.htm:98]**  | **1,246**  **[0001137774-24-000151_pru-20240630.htm:109]**  | **1,310**  **[0001137774-24-000247_pru-20240930.htm:114]**  |
| **Group Insurance**              | **1,400**  **[0001137774-23-000011_exhibit991-4q22earningspre.htm:2]**  | **1,564**  **[0001137774-23-000067_pru-20230331.htm:122]**  | N/A     | **1,576**  **[0001137774-23-000114_exhibit992-3q23qfs.htm:27]**  | **1,547**  **[0001137774-24-000007_exhibit992-4q23qfs.htm:28]**  | **1,634**  **[0001137774-24-000068_pru-20240331.htm:98]**  | **1,586**  **[0001137774-24-000151_pru-20240630.htm:109]**  | **1,643**  **[0001137774-24-000247_pru-20240930.htm:114]**  |
| **Individual Life**              | N/A     | **1,527**  **[0001137774-23-000067_pru-20230331.htm:122]**  | **1,564**  **[0001137774-23-000088_exhibit992-2q23qfs.htm:29]**  | **1,589**  **[0001137774-23-000114_exhibit992-3q23qfs.htm:30]**  | **1,594**  **[0001137774-24-000007_exhibit992-4q23qfs.htm:31]**  | **1,580**  **[0001137774-24-000068_pru-20240331.htm:98]**  | **1,529**  **[0001137774-24-000151_pru-20240630.htm:109]**  | **1,546**  **[0001137774-24-000247_pru-20240930.htm:114]**  |
| **Life Planner**                 | **2,358**  **[0001137774-23-000011_exhibit992-4q22qfs.htm:34]**  | N/A     | N/A     | **2,359**  **[0001137774-23-000114_exhibit992-3q23qfs.htm:33]**  | N/A     | **2,550**  **[0001137774-24-000068_pru-20240331.htm:98]**  | **2,367**  **[0001137774-24-000151_pru-20240630.htm:109]**  | **2,247**  **[0001137774-24-000247_pru-20240930.htm:114]**  |
| **Gibraltar Life & Other**       | **2,396**  **[0001137774-23-000011_exhibit992-4q22qfs.htm:35]**  | N/A     | N/A     | N/A     | N/A     | **2,163**  **[0001137774-24-000068_pru-20240331.htm:98]**  | **2,145**  **[0001137774-24-000151_pru-20240630.htm:109]**  | **2,170**  **[0001137774-24-000247_pru-20240930.htm:114]**  |
| **Corporate and Other**          | N/A     | **116**  **[0001137774-23-000067_pru-20230331.htm:122]**  | **54**  **[0001137774-23-000088_exhibit992-2q23qfs.htm:37]**  | **45**  **[0001137774-23-000114_exhibit992-3q23qfs.htm:38]**  | N/A     | **30**  **[0001137774-24-000068_pru-20240331.htm:98]**  | **(36)**  **[0001137774-24-000151_pru-20240630.htm:109]**  | **71**  **[0001137774-24-000247_pru-20240930.htm:114]**  |

011bc870784df2308fae122376b5885ce189e1fec35e6c58bf73a4a8e491a9c0

Prudential Financial, Inc. (PRU) is a global financial services leader operating primarily in the United States, Asia, Europe, and Latin America, offering a diverse range of financial products and services **[0001137774-24-000045_pru-20231231.htm:7]** **[0001137774-24-000045_pru-20231231.htm:91]** **[0001137774-24-000151_pru-20240630.htm:107]**. The company engages in investment management, insurance, and retirement solutions, catering to various market segments from mass middle to affluent markets **[0001137774-24-000045_pru-20231231.htm:94]** **[0001137774-24-000045_pru-20231231.htm:473]**. Its operations are structured into several segments, each contributing to its competitive advantages, earnings diversification, and capital benefits **[0001137774-24-000045_pru-20231231.htm:91]** **[0001137774-24-000151_pru-20240630.htm:107]**.

1. **PGIM (Global Investment Management)** - Manages approximately $1.298 trillion in assets, providing investment management services across various asset classes, significantly contributing to earnings through asset management fees and investment income **[0001137774-24-000045_pru-20231231.htm:94]**.
2. **U.S. Businesses** - Offers retirement investment and income products, group life and disability insurance, and individual life insurance, serving different market segments from mass middle to affluent markets **[0001137774-24-000045_pru-20231231.htm:473]** **[0001137774-24-000151_pru-20240630.htm:107]**.
3. **International Businesses** - Focuses on life insurance, retirement products, and investment products in markets such as Japan, Brazil, Argentina, and Mexico, with a strong presence in Japan through its Life Planner operations **[0001137774-24-000045_pru-20231231.htm:473]**.
4. **Closed Block Division** - Includes certain in-force participating insurance and annuity products, accounted for separately from other divested and run-off businesses **[0001137774-24-000045_pru-20231231.htm:474]**.
5. **Corporate and Other Operations** - Encompasses various corporate functions and other business activities not included in the main segments **[0001137774-24-000045_pru-20231231.htm:7]** **[0001137774-24-000045_pru-20231231.htm:91]** **[0001137774-24-000151_pru-20240630.htm:107]**.

ac3d984f80ba5a94aa4e7dd7392e999ba859e5b24e9b92f620754265f6fa9e46

1f84952bcdf1a3f2f56b4446558e7d6b0678c35b5d398e065c3a57218a433116

1. Given the potential dampening of demand for annuity products in a decreasing interest rate environment, especially in fixed annuities, how do you plan to sustain growth in your annuity sales, and what specific strategies are you implementing to adapt your pricing and product offerings?
2. As you work on building a select portfolio in international markets, particularly in emerging regions like Latin America, Asia, and Africa, what challenges do you foresee in these markets, and how do you plan to address them, especially considering uncertainties in accelerating growth through M&A activities?
3. With PGIM's recent decision to run off certain quantitative funds, how has this impacted your overall investment performance, and what steps are you taking to mitigate any associated pressures or declines in investment returns?
4. The Group Insurance benefit ratio has been below your target range for the first half of the year; what factors have contributed to this deviation, and how do you plan to manage the benefit ratio going forward to ensure it aligns with your target without compromising growth?
5. Regarding Prismic, you've indicated you'd be disappointed if no additional transactions occur before year-end; what obstacles are you encountering in closing more transactions, and how confident are you in meeting your growth objectives for Prismic in the current market environment?

bce96ac7da005ea90ba949478e44c85de7e8a3eb85e4c0d82d344be439fb17c9

1f2097982b503de2d2d6053edfbc4355676591ad2bf6d8b2f82b47257467594b

United States

Japan

Other countries

International Businesses

- Life Planner

- Gibraltar Life and Other

Domestic Operations

Foreign Operations

- Korea

Total Revenue

c879d7735d5873a6138cb0bf328a9f2109eafa9e4688d7c7fb93b46d51366b7f

### Q3 2024 Earnings Call
- **Issued Period:** Q3 2024
- **Guided Period:** Q3 2024
- **Guidance:**
  - **Earnings Per Share (EPS):** Baseline EPS expected to be **$3.48 per share**, with an adjusted EPS of **$3.56** if specific third-quarter items are excluded  **[PRU_3396284_6]** .
  - **Underwriting Experience:** Expectation of **$30 million of favorable seasonality**  **[PRU_3396284_6]** .
  - **Investments:** Higher investments in initiatives to support growth  **[PRU_3396284_6]** .
  - **Capital Position:** Strong capital position with regulatory capital ratios exceeding AA objectives  **[PRU_3396284_6]** .

### Q2 2024 Earnings Call
- **Issued Period:** Q2 2024
- **Guided Period:** Q3 2024
- **Guidance:**
  - **Earnings Per Share (EPS):** Baseline EPS of **$3.48** for Q3 2024, adjusted EPS of **$3.56** excluding specific items  **[PRU_3396284_6]** .
  - **Corporate and Other Loss:** Full-year 2024 expected loss lowered to **$1.8 billion**  **[PRU_3396284_6]** .
  - **Benefit Ratio for Group Insurance:** Benefit ratio was **81%**, expected to be towards the lower end of the **83% to 87%** target range for the year  **[PRU_3396284_13]** .
  - **Variable Investment Income:** Continued valuation declines in real estate investments expected, with declines in the low single digits  **[PRU_3396284_15]** .

### Q1 2024 Earnings Call
- **Issued Period:** Q1 2024
- **Guided Period:** Q2 2024
- **Guidance:**
  - **Earnings Per Share (EPS):** Baseline EPS of **$3.43** for Q2 2024, adjusted EPS of **$3.50** excluding specific items  **[PRU_3381959_6]** .
  - **Capital Position:** Strong capital position with regulatory capital ratios exceeding AA objectives and cash and liquid assets of **$4.2 billion**  **[PRU_3381959_6]** .
  - **Pension Risk Transfer (PRT) Business:** Healthy pipeline expected, supported by favorable funding positions over **100%**  **[PRU_3381959_12]** .
  - **Group Insurance Benefit Ratio:** Total benefit ratio just under **85%**, within the **83% to 87%** target range  **[PRU_3381959_17]** .
  - **Commercial Mortgage Loans:** About **$2 billion** or **4%** of the portfolio expected to mature in 2024, with about **10%** per year through 2028  **[PRU_3381959_23]** .
  - **Regulatory Transition in Japan:** Preparing for the new ESR regime effective April 1, 2025  **[PRU_3381959_15]** .

### Q4 2023 Earnings Call
- **Issued Period:** Q4 2023
- **Guided Period:** Q1 2024
- **Guidance:**
  - **Earnings Per Share (EPS):** Baseline EPS of **$3.36 per share** for Q1 2024, adjusted EPS of **$3.50** excluding specific items  **[PRU_3372303_6]** .
  - **Benefits Ratio for Group Insurance:** Lowered to **83% to 87%** for the year  **[PRU_3372303_19]** .
  - **Share Repurchases:** Up to **$1 billion** authorized for 2024  **[PRU_3372303_2]** .
  - **Dividend Increase:** **4%** increase beginning in Q1 2024, marking the 16th consecutive annual increase  **[PRU_3372303_2]** .
  - **RBC Ratio:** PICA's year-end RBC ratio expected to be greater than **425%**  **[PRU_3372303_6]** .

0eaf689409b6699253916ff62170cbb1f6ba362a3962fc0057ac416ebf894db1

**Variable Annuity Account Values (USD Million)**

**Fixed Annuity Account Values (USD Million)**

**Average Amortized Cost of U.S. Dollar-Denominated Fixed Maturities (USD Billion)**

**Average Amortized Cost of Australian Dollar-Denominated Fixed Maturities (USD Billion)**

**Loan-to-Value Ratio for Commercial Mortgage Loans (%)**

**Debt Service Coverage Ratio for Commercial Mortgage Loans (Times)**

**PICA’s RBC Ratio (%)**

**Prudential of Japan Solvency Margin Ratio (%)**

**Gibraltar Life Solvency Margin Ratio (%)**

**Net Amount at Risk (USD Million)**

**Cash Surrender Value (USD Million)**

**Weighted-Average Crediting Rate (%)**

**Annualized New Business Premiums (USD Million)**

0d94b9d4e15fbc3e22c7e0cb95ae8d81fdb561bf6e49be61a83ee210c0f4a7ef

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

**Quarterly guidance for Q4 2024:**
- **Baseline EPS**: $3.34  **[PRU_3405084_7]**  (lowered from $3.48  **[PRU_3396284_6]** )  
- **Adjusted EPS**: $3.67  **[PRU_3405084_7]**  (raised from $3.56  **[PRU_3396284_6]** )  
- **Variable Investment Income (VII)**: Prudential plans to preannounce VII results starting in Q4 2024  **[PRU_3405084_6]**  (no prior guidance)  
- **Seasonal Premiums**: $50 million seasonal decline  **[PRU_3405084_7]**  (no prior guidance)  
- **Intermediate-Term Financial Targets**: New targets to be introduced starting FY 2025  **[PRU_3405084_7]** **[PRU_3405084_17]**  (no prior guidance)  
- **Capital and Liquidity**: Regulatory capital ratios remain strong with $4.3 billion of cash and liquid assets  **[PRU_3405084_7]**  (no prior guidance)  

**Annual guidance for FY 2024:**
- **Corporate and Other Losses**: $1.8 billion  **[PRU_3405084_6]**  (no prior guidance)  

f43c239472ea8995e698868043bcec69f1df8b7cbe60c4f43a8c853ae6e462ce

c4257dfc2fb7f2b8426648e75258ce3510fcd93821eca251847344f0b860fe37

| Name               | Position                                                                 | Start Date         | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|--------------------|--------------------------------------------------------------------------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Charles F. Lowrey  | Executive Chairman (effective March 31, 2025, for 18 months)             | March 31, 2025     | Charles F. Lowrey was elected Chairman in April 2019 and has served as CEO, President, and Director since December 2018. He joined Prudential in March 2001 after a career at J.P. Morgan  **[0001137774-24-000045_pru-20231231.htm:58]** **[0001137774-23-000040_pru-20221231.htm:69]** .                                                                                                                                        |
| Robert M. Falzon   | Vice Chair (retiring effective July 11, 2025)                            | December 2018      | Robert M. Falzon has been with Prudential since 1983. He was elected Director in August 2019 and has served as Vice Chair since December 2018. Previously, he was EVP and CFO from March 2013 to November 2018  **[0001137774-24-000045_pru-20231231.htm:58]** **[0001193125-23-077836_d369076ddef14a.htm:10]** .                                                                                                                  |
| Ann M. Kappler     | Executive Vice President, General Counsel, and Chief Compliance Officer  | February 2024      | Ann M. Kappler was elected EVP and General Counsel in September 2020 and named Chief Compliance Officer in February 2024. She joined Prudential in 2009  **[0001137774-24-000045_pru-20231231.htm:58]** **[0001137774-24-000045_pru-20231231.htm:57]** .                                                                                                                                                                         |
| Kenneth Y. Tanji   | Executive Vice President and Chief Financial Officer                     | December 2018      | Kenneth Y. Tanji was elected EVP and CFO in December 2018. He joined Prudential in 1988 and has held various positions, including CFO of Prudential’s International Businesses in 2013  **[0001137774-24-000045_pru-20231231.htm:58]** **[0001137774-23-000040_pru-20221231.htm:69]** .                                                                                                                                           |
| Andrew F. Sullivan | CEO (effective March 31, 2025)                                           | March 31, 2025     | Andrew F. Sullivan was appointed CEO effective March 31, 2025. He joined Prudential in 2011 and has held various leadership positions, including EVP and Head of International Businesses and Global Investment Management since January 2023  **[0001193125-24-269980_d908564dex991.htm:0]** **[0001137774-24-000045_pru-20231231.htm:59]** .                                                                                   |
| Caroline A. Feeney | Global Head of Insurance and Retirement (effective March 31, 2025)       | March 31, 2025     | Caroline A. Feeney is set to become Global Head of Insurance and Retirement effective March 31, 2025. She currently serves as EVP and Head of U.S. Businesses since January 2023  **[0001193125-24-269980_d908564d8k.htm:1]** **[0001193125-24-269980_d908564dex991.htm:0]** **[0001137774-23-000040_pru-20221231.htm:70]** .                                                                                                                                              |
| Lucien A. Alziari  | Executive Vice President and Chief Human Resources Officer               | June 2017          | Lucien A. Alziari was elected EVP in October 2018 and has served as Chief Human Resources Officer since June 2017. Before joining Prudential, he was EVP and CHRO at A.P. Moller-Maersk  **[0001137774-24-000045_pru-20231231.htm:59]** **[0001137774-23-000040_pru-20221231.htm:70]** .                                                                                                                                          |
| Stacey Goodman     | Executive Vice President and Chief Information Officer                   | July 2019          | Stacey Goodman was elected EVP and CIO in July 2019. Before joining Prudential, she served as CIO at Freddie Mac and held leadership roles at CIT Group, Bank of America, UBS, and PaineWebber  **[0001137774-24-000045_pru-20231231.htm:59]** **[0001137774-23-000040_pru-20221231.htm:70]** .                                                                                                                                  |
| Timothy L. Schmidt | Senior Vice President and Chief Investment Officer                       | December 2018      | Timothy L. Schmidt was elected SVP and CIO in December 2018. He joined Prudential in July 2010 and previously served as Head of Global Portfolio Management  **[0001137774-23-000040_pru-20221231.htm:71]** **[0001137774-24-000045_pru-20231231.htm:58]** .                                                                                                                                                                      |
| Carmine Di Sibio   | Independent Director, Board of Directors                                 | July 1, 2024       | Carmine Di Sibio serves as an Independent Director on the Board of Directors for Prudential Financial, Inc., with his appointment effective July 1, 2024  **[0001127602-24-019794_xslF345X02/form3.xml:0]** .                                                                                                                                                                           |

f9c2880a7afa50deea78e78909057946c500a147ecd2f7fb001c9a60c5de61bb

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | December 2023  **[0001137774-24-000247_pru-20240930.htm:204]** **[0001137774-24-000247_pru-20240930.htm:106]** **[0001137774-24-000247_pru-20240930.htm:223]**  |
| End Date/Duration        | January 1, 2024 - December 31, 2024  **[0001137774-24-000247_pru-20240930.htm:204]** **[0001137774-24-000247_pru-20240930.htm:106]** **[0001137774-24-000247_pru-20240930.htm:223]**  |
| Total Additional Amount  | **$1.0 billion**  **[0001137774-24-000247_pru-20240930.htm:204]** **[0001137774-24-000247_pru-20240930.htm:106]** **[0001137774-24-000247_pru-20240930.htm:223]**  |
| Remaining Authorization  | **$250 million** (as of September 30, 2024)  **[0001137774-24-000247_pru-20240930.htm:204]** **[0001137774-24-000247_pru-20240930.htm:106]** **[0001137774-24-000247_pru-20240930.htm:223]**  |
| Details                  | Manage capital based on market conditions, compliance with laws, and opportunities for growth  **[0001137774-24-000045_pru-20231231.htm:201]** **[0001137774-24-000247_pru-20240930.htm:204]** **[0001137774-24-000068_pru-20240331.htm:175]**  |

9910611bc92a2f440fe4b4e4acb60d4938c090c476695755697943ffe7fedcdd

| Name                        | Start Date       | End Date       | Reason for Change       |
|-----------------------------|------------------|----------------|-------------------------|
| PricewaterhouseCoopers LLP | N/A              | Present        | Current auditor.        |
| SB & Company, LLC           | January 13, 2014  **[0001193125-14-009433_d659842d8k.htm:1]**  | N/A            | N/A                     |

a18e0105604dfed95ebb4189b6d2359f9cf71c165ee37baa0c228de830b89102

9b156d6defed2378c6cc81238e7a5a0e7a096bf2f4462a73f7325e7385fc91e8

- **Potential Decline in Annuity Sales Due to Decreasing Interest Rates:** The company acknowledges that "in a decreasing interest rate environment, we could see some pullback from the record sales levels, particularly in fixed annuities."  **[PRU_3396284_9]**
- **Variability in PGIM's Institutional Flows:** PGIM's flows have become "more variable" due to clients derisking or exploring pension risk transfers, leading to "more than normal institutional money in motion" and potential short-term challenges.  **[PRU_3396284_12]**
- **Delayed Impact from Emerging Markets Expansion:** The growth in emerging markets is expected to "take time to develop" and is focused on the "medium and long term," suggesting limited near-term earnings contributions and exposure to risks inherent in developing markets.  **[PRU_3396284_2]**

3f0af58b4677539aaf76cc2605534abd91609ff3078512600fd5078ea887f23a

| Year | Amount Due (in millions) | Debt Type                           | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|------------------------------------------|------------------------|------------------------------------------------------------------------------------|
| 2024     | 519                          | Commercial Paper                         | 4.96 **[0001137774-24-000247_pru-20240930.htm:103]**           | 2.6% = (519 / 20,026) * 100 **[0001137774-24-000247_pru-20240930.htm:216]** **[0001137774-24-000247_pru-20240930.htm:103]**                                       |
| 2024     | 347                          | Current Portion of Long-Term Debt (Surplus Notes) | N/A **[0001137774-24-000247_pru-20240930.htm:103]**           | 1.7% = (347 / 20,026) * 100 **[0001137774-24-000247_pru-20240930.htm:216]** **[0001137774-24-000247_pru-20240930.htm:103]**                                       |
| 2024     | 84                           | Current Portion of Long-Term Debt (Mortgage Debt) | N/A **[0001137774-24-000247_pru-20240930.htm:103]**           | 0.4% = (84 / 20,026) * 100 **[0001137774-24-000247_pru-20240930.htm:216]** **[0001137774-24-000247_pru-20240930.htm:103]**                                        |
| 2054     | 1,000                        | Junior Subordinated Notes                | 6.50 **[0001137774-24-000247_pru-20240930.htm:104]**           | 5.0% = (1,000 / 20,026) * 100 **[0001137774-24-000247_pru-20240930.htm:216]** **[0001137774-24-000247_pru-20240930.htm:104]**                                     |
| N/A      | 10,165                       | Senior Notes                             | N/A **[0001137774-24-000247_pru-20240930.htm:104]**            | 50.8% = (10,165 / 20,026) * 100 **[0001137774-24-000247_pru-20240930.htm:216]** **[0001137774-24-000247_pru-20240930.htm:104]**                                   |
| N/A      | 11,796                       | Surplus Notes (Set-Off Arrangements)     | N/A **[0001137774-24-000247_pru-20240930.htm:104]**            | 58.9% = (11,796 / 20,026) * 100 **[0001137774-24-000247_pru-20240930.htm:216]** **[0001137774-24-000247_pru-20240930.htm:104]**                                   |
| N/A      | 67                           | Mortgage Debt (Foreign Currency)         | N/A **[0001137774-24-000247_pru-20240930.htm:104]**            | 0.3% = (67 / 20,026) * 100 **[0001137774-24-000247_pru-20240930.htm:216]** **[0001137774-24-000247_pru-20240930.htm:104]**                                        |

abc75b2e4c2133ea6d5f0df16c50397729935cd6e2cc390815fada50e0466e2a

- **PGIM's Other Related Revenues are expected to average about $40 million per quarter, a reduction due to the slowdown in the real estate market affecting agency earnings**.  **[PRU_3363869_24]**
- **Variable Investment Income is anticipated to be lower going forward, mainly due to decreased prepayment income and underperformance in the real estate sector**.  **[PRU_3363869_23]**
- **The improvement in Individual Life earnings may not be sustainable as it was driven by one-time items, including favorable expense experience and a legal reserve release**.  **[PRU_3363869_15]**

9596d6b9379cb31fbe644bada05ad894293218bcb74ea32af0c83180e179fb44

- Prudential is experiencing increased lapsation and a decline in life insurance in-force amounts in Japan due to yen depreciation and natural runoff of older life blocks, which could impact future earnings in this key market.  **[PRU_3372303_18]**
- Potential pension reforms in Chile, including the proposed elimination of AFPs (Administradoras de Fondos de Pensiones), could negatively affect Prudential's joint venture, Habitat, raising concerns for their emerging markets strategy.  **[PRU_3372303_17]**
- The Group Insurance business may face profitability pressures, as record underwriting performance in 2023 is not expected to continue indefinitely. Prudential has lowered its benefits ratio guidance, indicating expectations of higher claims or reduced margins going forward.  **[PRU_3372303_19]**

bc3e49b8a214ad7a55e904546116b1f897bf0829f9b6ecdcd9ff17c451f23e85

- **Prudential's international businesses achieved strong sales growth, with sales up 24% year over year**, driven by product innovation, strong distribution, and higher sales of U.S. dollar products in Japan supported by higher U.S. interest rates.  **[PRU_3372303_8]**
- **Group Insurance business is growing at attractive margins**, with diversification into new products like supplemental health and disability, leading to a reduction in the benefits ratio target range to 83% to 87%, reflecting **improved underwriting performance and strong future earnings power**.  **[PRU_3372303_19]**
- **Prudential maintains a disciplined approach to capital deployment**, balancing investment in growth with capital returns to shareholders, including **increasing the dividend for the 16th consecutive year** and authorizing **up to $1 billion in share repurchases for 2024**.  **[PRU_3372303_6]** **[PRU_3372303_10]**

cff4413c15295862b2bf862f7aaaf06f150d5b13a68113178a8a2d1ef2c373ce

- **Prudential is winding down its Assurance IQ business, indicating the acquisition did not perform as expected and leading to potential losses and write-downs**.  **[PRU_3381959_22]** **[PRU_3381959_21]** **[PRU_3381959_16]**
- **Regulatory changes in Japan and Bermuda could introduce uncertainty and impact Prudential's profitability**, as the company is working with regulators and adapting strategies to meet new capital standards.  **[PRU_3381959_24]** **[PRU_3381959_15]**
- **Exiting the Argentina market suggests challenges in international growth and scaling in emerging markets**, potentially limiting expansion opportunities.  **[PRU_3381959_25]**

46fc6799649c87c33dd636aaa09600033cf3686a553abc279b20b93df5aa8b9b

1. **Capital Deployment Strategy**  
   **Q:** How will you use capital freed from reinsurance deals?  
   **A:** We aim to balance capital deployment by maintaining our strong balance sheet, investing in growth, and returning excess capital to shareholders. This quarter, we returned over **$700 million** to shareholders.  **[PRU_3405084_8]**  Our consistent process involves supporting strong sales across our businesses, including new products, while being good stewards of capital.  **[PRU_3405084_8]** 

2. **Prismic Reinsurance Update**  
   **Q:** What's the update on Prismic's reinsurance activities?  
   **A:** We have an active pipeline of multiple reinsurance transactions focusing on balance sheet optimization, new sales financing, and third-party blocks, particularly in Japan. We've established a dedicated licensed team in Tokyo to advance these opportunities and expect our next transaction to be a back book deal, potentially in Japan.  **[PRU_3405084_8]** 

3. **Back Book Deal Impact**  
   **Q:** Will a Prismic back book deal affect earnings?  
   **A:** Reinsuring blocks may initially reduce earnings since we cede associated income, but it frees up capital we can redeploy for growth. In Japan, such deals release reserves and capital due to high margins, providing better risk-adjusted returns despite a temporary earnings impact.  **[PRU_3405084_26]** 

4. **Japan Product Margins**  
   **Q:** How do margins on new retirement products compare to old ones?  
   **A:** We're pleased with the profitability in Japan and don't expect an impact on margins despite the product mix shift. Retirement investment product sales increased about **30%** year-to-date, accounting for the majority of Japan sales this quarter.  **[PRU_3405084_9]** 

5. **Annuity Sales Growth**  
   **Q:** What's driving annuity sales, and is it sustainable?  
   **A:** We achieved over **$3.5 billion** in sales this quarter, our best in over a decade. Growth comes from diversifying our annuity portfolio—now with five products exceeding **$1 billion** in sales this year. With aging demographics and increased demand for protected savings, we expect strong performance to continue into 2025.  **[PRU_3405084_10]** 

6. **Japan Sales Mix**  
   **Q:** Are you seeing a shift back to yen products in Japan?  
   **A:** Approximately **30%** of our Japan sales were yen-based this quarter, nearly doubling over the last three years. We've intentionally expanded our yen-based offerings and see success in this diversification strategy amid changing interest rates.  **[PRU_3405084_11]** 

7. **Excess Mortality Impact**  
   **Q:** Do you expect persistent excess mortality, and are reserves adequate?  
   **A:** Our assumptions reflect continued excess mortality through 2028 before returning to pre-pandemic trends. We regularly monitor mortality trends, and our diversified business provides natural hedges. We believe our reserves are prudent and sufficient to handle potential impacts.  **[PRU_3405084_12]** 

8. **PGIM Institutional Outflows**  
   **Q:** What drove institutional outflows in PGIM this quarter?  
   **A:** We experienced variability due to overfunded defined benefit plans derisking, leading to net outflows. However, year-to-date, we have positive **$14 billion** in third-party institutional flows and **$15 billion** in affiliated flows. We expect fixed income flows to normalize as rates stabilize.  **[PRU_3405084_13]** 

9. **Potential Non-Core Sales**  
   **Q:** Any non-core business blocks you might sell?  
   **A:** We'll consider additional opportunities that meet our strategic and financial objectives. We've reduced our traditional variable annuities portfolio by **50%** and guaranteed universal life reserves by **60%**. We'll continue reviewing our portfolio for such opportunities.  **[PRU_3405084_14]** 

10. **Changes to Earnings Disclosure**  
    **Q:** What changes are you making to quarterly disclosures?  
    **A:** We'll eliminate the quarterly EPS baseline and introduce new intermediate-term financial targets starting in 2025. We'll also preannounce variable investment income, providing greater insight into our financial outlook.  **[PRU_3405084_17]** **[PRU_3405084_25]** 

11. **Group Business Partnerships**  
    **Q:** Can you discuss partnerships in Workplace Solutions?  
    **A:** We've executed partnerships focused on enhancing the customer enrollment experience and claims management. For example, we're working with a leading-edge technology firm to transform benefits enrollment and with Evolution IQ to expedite disability claim evaluations.  **[PRU_3405084_16]** 

12. **Medical Stop Loss Business**  
    **Q:** How significant will the stop loss business be over time?  
    **A:** Our entry into medical stop loss complements our diversification strategy. We'll scale thoughtfully with disciplined underwriting and reinsurance partnerships. Initially, it will be a small portion of our business mix, but we see long-term potential as we grow strategically.  **[PRU_3405084_18]** 

13. **Prismic Japan Team**  
    **Q:** Tell us about the Prismic team in Japan and deal opportunities.  
    **A:** We've established a licensed team in Tokyo to pursue reinsurance opportunities. There's significant demand due to the new economic solvency regime affecting long-duration, foreign currency-denominated liabilities. We believe our credibility and expertise position us well in this market.  **[PRU_3405084_21]** 

14. **UK Longevity Blocks**  
    **Q:** Are there tailwinds for UK longevity blocks?  
    **A:** Yes, with UK pension funding levels reaching **113%**, we expect around **$70 billion** in pension risk transfer market size this year. We're pleased to be a leader in the UK and other markets like the Netherlands, and we continue to see strong opportunities.  **[PRU_3405084_22]** 

15. **PGIM Management of Japanese Assets**  
    **Q:** Does PGIM manage all assets backing Japanese liabilities?  
    **A:** The vast majority of these assets are managed by PGIM. If they transfer to Prismic, PGIM would continue managing them, generally on third-party terms, which is accretive to PGIM.  **[PRU_3405084_27]** 

990ecb7a1d5afd5d70ab9c764df338cee89c88dabd3d6d0fd96bd500c2001384

1. **Prismic Reinsurance Outlook**  
   **Q:** Will more in-force blocks be reinsured to Prismic in 2024?  
   **A:** Management is working on an active pipeline for Prismic beyond the initial **$10 billion** transaction last year.  **[PRU_3381959_7]**  They see significant growth opportunities at the intersection of asset management and insurance, with Prismic being key to expanding their platform.  **[PRU_3381959_7]** 

2. **Fixed Annuity Sales Strategy**  
   **Q:** What's the plan to grow in fixed annuities?  
   **A:** Fixed annuities represented almost half of sales last quarter, driven by portfolio expansion, brand strength, and proactive pricing.  **[PRU_3381959_11]**  They see fixed annuities as a core product that contributes to diversification and favorable returns.  **[PRU_3381959_11]** 

3. **Pension Risk Transfer Growth**  
   **Q:** What's your outlook for PRT business growth?  
   **A:** Achieved the strongest first quarter ever in PRT with nearly **$9 billion** in sales from Shell and Verizon deals.  **[PRU_3381959_12]**  Expect the healthy pipeline to continue, leveraging expertise in large, complex transactions.  **[PRU_3381959_12]** 

4. **Capital Impact of PRT Growth**  
   **Q:** How do you balance capital strain from PRT growth?  
   **A:** Large PRT transactions consume capital but are an effective way to deploy it with favorable returns.  **[PRU_3381959_13]**  They expect to continue opportunistically deploying capital in PRT, feeling good about the returns and benefits.  **[PRU_3381959_13]** 

5. **PGIM Large Mandate and Outlook**  
   **Q:** Can you clarify the jumbo PGIM inflow and pipeline outlook?  
   **A:** Secured a significant portion of the **$26 billion** in institutional net flows from a large pension client.  **[PRU_3381959_9]**  Despite lower fees due to the fixed-income mandate, they see improving fundamentals and expect to be net winners over time.  **[PRU_3381959_9]** 

6. **Regulatory Environment in Bermuda**  
   **Q:** Has the regulatory environment in Bermuda changed?  
   **A:** Updates may lead to more conservative capital requirements.  **[PRU_3381959_14]**  However, Bermuda remains attractive due to its economically driven regime and reciprocal jurisdiction status.  **[PRU_3381959_14]** 

7. **Assurance IQ Wind-down**  
   **Q:** Are you shutting down Assurance IQ?  
   **A:** They've begun the wind-down process for Assurance IQ.  **[PRU_3381959_21]**  It's not material to earnings, and they'll assess any incremental value to monetize assets during the process.  **[PRU_3381959_21]** 

8. **Japan ESR Transition**  
   **Q:** What's the update on Japan's ESR transition and impacts?  
   **A:** Japan businesses are well-capitalized, adapting to new regulations by reinsuring business internally.  **[PRU_3381959_15]**  Reinsured **$3 billion** of dollar-denominated whole life products to a Bermuda affiliate for better capital management.  **[PRU_3381959_15]** 

9. **CRE Portfolio Health**  
   **Q:** How is the CRE loan portfolio performing?  
   **A:** The **$51 billion** portfolio remains resilient with an LTV of **58%** and debt service coverage of **2.5x**.  **[PRU_3381959_23]**  Office sector LTV increased to **74%**, but they're comfortable with quality despite expected valuation declines.  **[PRU_3381959_23]** 

10. **M&A Strategy Post-Assurance IQ**  
    **Q:** How does exiting Assurance IQ impact future M&A?  
    **A:** They'll focus on acquiring established businesses to expand capabilities and scale in existing markets, being thoughtful and disciplined to create shareholder value.  **[PRU_3381959_16]** 

11. **G&A Expenses Outlook**  
    **Q:** Why did G&A expenses increase, and what's the outlook?  
    **A:** G&A rose due to growth support expenses and one-time costs like the GUL transaction.  **[PRU_3381959_8]**  Committed to keeping expenses flat while investing in businesses; strong sales will benefit earnings over time.  **[PRU_3381959_8]** 

12. **Group Insurance Results**  
    **Q:** How did group insurance, especially disability, perform?  
    **A:** Disability earned premiums up nearly **15%** year-over-year.  **[PRU_3381959_17]**  Benefit ratio was just under **85%**, the best first-quarter ratio ever and within the target range.  **[PRU_3381959_17]** 

13. **Individual Retirement Sales Sources**  
    **Q:** Where is individual retirement sales growth coming from?  
    **A:** Driven by increasing consumer focus on retirement needs, with many seeking protected income and savings.  **[PRU_3381959_18]**  On track for a third consecutive record year in annuities.  **[PRU_3381959_18]** 

14. **Insurance Margins Monetization**  
    **Q:** What are the **$48 billion** in insurance margins, and can they be monetized?  
    **A:** It represents the present value of future profits under LDTI accounting.  **[PRU_3381959_19]**  They can accelerate realization through reinsurance, especially in Japan.  **[PRU_3381959_19]** 

15. **HoldCo Liquidity and Capital Plans**  
    **Q:** Any big movements expected in capital structure?  
    **A:** No major issuances expected; HoldCo cash increased to **$4.2 billion**, within their liquidity objective.  **[PRU_3381959_20]** 

16. **Competition Levels in Annuity and Life**  
    **Q:** How is competition affecting annuity and life products?  
    **A:** Despite rising competition, they've achieved strong sales through product innovation, distribution strength, and pricing discipline.  **[PRU_3381959_24]** 

17. **Emerging Markets and Acquisitions**  
    **Q:** Which regions are you scaling after exiting Argentina?  
    **A:** Focused on select high-growth geographies; currently in desired markets.  **[PRU_3381959_25]**  Committed to Latin America and open to disciplined bolt-on acquisitions.  **[PRU_3381959_25]** 

1666c6b9d7e11bdc5cad722ab9e31d6f70ce2d9ce7afe445c34a0d92edd0c210

1. **Capital Deployment Priorities**  
   **Q:** What are your capital deployment priorities, M&A or buybacks?  
   **A:** Management emphasized a consistent and balanced approach to capital deployment, focusing on maintaining a strong balance sheet, investing organically and through acquisitions for long-term growth, and returning excess capital to shareholders. They see significant opportunities in areas like Pension Risk Transfer (PRT) and intend to evaluate buybacks relative to investment opportunities.  **[PRU_3372303_16]** 

2. **PGIM Flows Outlook**  
   **Q:** What do you expect for PGIM flows as headwinds abate?  
   **A:** Management is not satisfied with recent PGIM flows but remains optimistic. They highlighted strengthened investment performance, continued investment in distribution, and expansion into private alternatives through acquisitions like Montana Capital Partners and Deerpath. They expect improved flows, noting a pickup in gross inflows towards the end of Q4 that has continued into this year.  **[PRU_3372303_11]** 

3. **Commercial Real Estate Exposure**  
   **Q:** Update on commercial real estate and LTV deterioration?  
   **A:** Management estimates a **16% correction** in institutional-quality real estate from peak to trough, with another **5–6%** decline expected. Office properties have seen a **30%** decline, with potentially another **10–15%** to go. Prudential's portfolio is underweight in office (only **2%** of assets), with strong loan-to-value ratios around **58%** and debt service coverage ratios of **2.5%**. They feel the portfolio is holding up well and have increased reserves to **$370 million**, representing **72 basis points** of the portfolio.  **[PRU_3372303_24]** 

4. **Impact of Japan Regulation**  
   **Q:** How will Japan's solvency regulation affect capital generation?  
   **A:** Management believes their Japanese businesses are well-capitalized and financially strong under any reasonable capital standard. They are working with regulators and have strategies like internal reinsurance to adapt to the new regime.  **[PRU_3372303_7]** 

5. **Lapse Rates in Japan**  
   **Q:** Can you discuss lapse rates in Japan due to exchange rates?  
   **A:** There was a decline in life insurance in-force amounts due to a shift towards investment contracts without a material life component, natural runoff in older blocks, and modestly elevated surrenders from yen depreciation. Management remains confident in growing and diversifying their Japanese businesses.  **[PRU_3372303_18]** 

6. **Buyback Plans**  
   **Q:** How are you thinking about share buybacks for 2024?  
   **A:** The Board approved **$1 billion** in share repurchases for 2024, considering their capital position, free cash flow outlook, and opportunities for organic growth, especially in the robust PRT market. They also increased the dividend for the **16th year in a row**.  **[PRU_3372303_21]** 

7. **SGUL Deal Update**  
   **Q:** What's the update on the SGUL deal with Somerset Re?  
   **A:** The deal is proceeding towards closing, expected in the current quarter, and is retrospective to **1/1/24**. Financial impacts, including proceeds and earnings effects, will be updated upon closing.  **[PRU_3372303_14]** 

8. **Group Insurance Outlook**  
   **Q:** Why did you reduce the Group Insurance benefit ratio target?  
   **A:** The benefit ratio guidance was lowered to **83% to 87%** due to strong performance, diversification efforts, and improved claims management. The business is growing with attractive margins, and management expects continued improvement in underwriting performance and earnings power.  **[PRU_3372303_19]** 

9. **Pension Reform in Chile**  
   **Q:** What's the impact of Chile's pension reform on your business?  
   **A:** A proposed pension reform in Chile could impact their Habitat joint venture. While monitoring the situation closely, management noted that the JV, though a larger component of emerging markets, is not a material contributor to Prudential's earnings.  **[PRU_3372303_17]** 

10. **Programmatic M&A in PGIM**  
    **Q:** Any update on M&A plans for PGIM?  
    **A:** Management remains interested in augmenting organic growth with acquisitions in higher-growth, higher-fee areas like private alternatives and real assets. They are seeing increased market activity but will remain patient and disciplined.  **[PRU_3372303_12]** 

11. **RBC Ratio Improvement**  
    **Q:** What drove the improvement in the RBC ratio?  
    **A:** The RBC ratio improved due to free surplus generation from in-force businesses, the benefit of admitting negative IMR from a regulatory change, and a reduction in AAT reserves from reaggregation efficiencies. Overall, capital position and flexibility have improved.  **[PRU_3372303_9]** 

12. **Interest Rate Sensitivity**  
    **Q:** How sensitive are you to short-term interest rates?  
    **A:** Management does not expect a significant net impact from short-term rates. Earnings on cash and collateral balances are offset by paying short-term rates on interest rate derivatives used for duration management.  **[PRU_3372303_9]** 

13. **Update on Prismic Initiative**  
    **Q:** Any activity with Prismic and its growth opportunities?  
    **A:** Management is enthusiastic about Prismic's role in financing growth across businesses. They expect to expand beyond the initial **$10 billion** structured settlements transaction, including balance sheet optimization and third-party blocks, increasing assets under management for PGIM.  **[PRU_3372303_20]** 

14. **Expense Savings in Disability**  
    **Q:** Is there an expense savings opportunity in disability insurance?  
    **A:** Administrative expenses improved by **100 basis points** due to business growth and expense discipline. Investments in claims management, including a partnership with EvolutionIQ for AI-driven monitoring, are expected to enhance recoveries and maintain pricing competitiveness.  **[PRU_3372303_22]** 

15. **Globalizing PGIM Business**  
    **Q:** How are you expanding PGIM globally?  
    **A:** Management is focusing on growing in Europe and Asia by investing in distribution and diversifying asset classes and geographies. They see key growth opportunities in these regions, with Prismic playing a role, especially in Japan.  **[PRU_3372303_23]** 

b064f351696c8cfbc3febf56ec732d3f43535bba532cbee259ee372af4646175

1. **Prismic Transactions**  
   **Q:** Can you provide an update on Prismic transactions and expectations for this year?  
   **A:** Prudential completed an initial **$10 billion** transaction with Prismic and is actively working on a pipeline of multiple insurance transactions, including balance sheet optimization, new sales solutions, and third-party blocks with a focus on Japan. They would be disappointed if they haven't entered into an additional transaction before year-end.  **[PRU_3396284_7]** **[PRU_3396284_10]** **[PRU_3396284_11]** 

2. **Annuity Sales Outlook**  
   **Q:** Will the recent move in interest rates dampen annuity demand, and how is pricing affected?  
   **A:** Despite potential interest rate declines, the annuity market remains extremely strong, on pace to deliver a **third straight record year, outpacing last year's run rate by over 20%**. Prudential is well-positioned with a broad product portfolio and had record sales in three distinct products this quarter, two of which are less sensitive to interest rates. They are prepared to adapt pricing quickly to changing market conditions.  **[PRU_3396284_9]** 

3. **Interest Rate Sensitivity**  
   **Q:** How do changes in short-term and long-term rates affect earnings?  
   **A:** Changes in short-term rates have minimal impact due to offsetting positions in cash and interest rate derivatives. Prudential has benefited from the rise in long-term rates over the past few years, significantly increasing portfolio yields domestically and internationally. If rates decline, new money rates would reduce, but there is a healthy spread between new money rates and portfolio yields. A disciplined ALM approach significantly reduces future spread volatility.  **[PRU_3396284_8]** 

4. **PGIM Flows Variability**  
   **Q:** What are the trends in PGIM flows, and outlook for the year?  
   **A:** PGIM's flows have become more variable, especially on the institutional side, due to large overfunded pension clients derisking or exploring pension risk transfers. Year-to-date institutional flows are positive at **$17 billion**. Retail flows have improved significantly, with year-to-date flows flat and a **$1.1 billion** positive inflow into fixed income retail products this quarter. They expect near-term variability but are confident in long-term net inflows.  **[PRU_3396284_12]** 

5. **Assumption Review Impact**  
   **Q:** What drove the unfavorable impact in Individual Life from the assumption review, and is there an ongoing effect?  
   **A:** The negative impact to Individual Life was primarily due to lower guaranteed universal life surrender experience post-COVID, as individuals retain their policies at higher levels than previously assumed based on updated experience data and industry studies. There is a small ongoing operating income impact from the assumption update.  **[PRU_3396284_14]** 

6. **Variable Investment Income Outlook**  
   **Q:** Do you expect real estate equity returns to improve in the back half of the year?  
   **A:** Prudential's real estate investment group forecasts continued valuation declines across the industry through the remainder of the year, with declines in the low single digits. While close to an inflection point, they do not believe they are at the trough yet.  **[PRU_3396284_14]** 

7. **Capital Deployment and Buybacks**  
   **Q:** What is your appetite for buybacks given strong capital levels and low stock multiple?  
   **A:** Prudential remains well-capitalized and continues to invest in business growth, including closing three large pension risk transfer transactions exceeding **$10 billion** in liabilities. They continue to pay dividends from insurance subsidiaries, with highly liquid assets increasing. They will remain thoughtful in capital deployment, focusing on preserving financial strength and flexibility, investing in businesses for long-term growth, and returning capital to shareholders.  **[PRU_3396284_20]** 

8. **Japanese Sales Outlook**  
   **Q:** How are you viewing sales trends in Japan amid yen volatility?  
   **A:** Sales in Japan are up **10%** year-over-year, with strong growth in Life Planner, independent agent, and bank channels. **20%** of sales this quarter came from recent product introductions, including both life and annuity products, expanding yen and U.S. dollar offerings. Japanese consumers remain interested in U.S. dollar products, and recent yen movement makes them more affordable.  **[PRU_3396284_21]** 

9. **Group Insurance Results**  
   **Q:** What drove the strong results in Group Insurance, and expectations for the benefits ratio?  
   **A:** The strong performance was due to favorable mortality, effective claims management, double-digit growth in the supplemental health business, and growth in under 5,000 lives and association market segments. The benefits ratio was **81%**, below the target range of **83% to 87%**; they expect to be towards the lower end of that range for the year.  **[PRU_3396284_13]** 

10. **International Expansion Opportunities**  
    **Q:** Are you looking to accelerate international growth through M&A?  
    **A:** Prudential aims to accelerate growth in select emerging markets by extending leadership in Latin America, strengthening their footprint in emerging Asia—particularly India and Indonesia—and investing in market leaders in Africa. While open to opportunistic, programmatic M&A to accelerate growth, organic growth remains the top priority.  **[PRU_3396284_18]** 

1a44d478153b3116971c416f76f00f29febc532e26c04ab30457fc3febf1962d

- **Prudential's Retirement Strategies business achieved strong sales of over $14 billion in the first quarter, including nearly $9 billion in pension risk transfer transactions, demonstrating market leadership and expecting continued growth due to a healthy pipeline and favorable funding positions.**  **[PRU_3381959_12]**
- **Group Insurance showed significant growth, particularly in disability products with earned premiums up nearly 15%, and achieved its best first-quarter benefit ratio ever within the target range, reflecting strong underwriting results and effective claims management.**  **[PRU_3381959_17]**
- **Despite competition, Prudential is expanding its Individual Life and Annuities products, launching new solutions like FlexGuard Life which achieved its highest quarterly sales, and capitalizing on increasing consumer demand for retirement solutions due to demographic trends, positioning it for continued growth.**  **[PRU_3381959_24]** **[PRU_3381959_18]**

970cfa740842361b3e7fe3e8e78921025db1b789b73ff2ea8cb78736d014ae69

- **Prudential's annuity market continues to be extremely strong**, with the market on pace to deliver a **third straight record year**, outpacing last year's run rate by **over 20%**  **[PRU_3396284_9]** . Prudential has the **broadest product portfolio ever**, achieving record sales in **three distinct products**, and possesses the ability to **adapt pricing quickly** in changing markets  **[PRU_3396284_9]** .
- **Prudential holds competitive advantages** with its **broad product portfolio, differentiated distribution, and strong brand**, operating in a **rational market**  **[PRU_3396284_22]** . The company maintains **pricing discipline** to ensure delivery for both customers and shareholders  **[PRU_3396284_22]** .
- **Focused on international growth** by creating a **select portfolio in emerging markets**, including extending leadership in **Latin America**, strengthening presence in **India and Indonesia**, and investing in market leaders in **Africa**  **[PRU_3396284_19]** . Prudential is **open to opportunistic programmatic M&A** to accelerate growth in these markets  **[PRU_3396284_19]** .

9028497742fac60de46276a185c3f3d0dac1df4f00d13fc7f9baac69238bcba1

- **Prudential is implementing a restructuring program that will result in annual cost savings greater than the $200 million restructuring charge**, providing capacity to invest in growth and improve margins.  **[PRU_3363869_8]**
- **Prudential's Japan business is financially strong and well-capitalized**, generating strong earnings with good solvency margins, and is expected to remain robust under new capital standards.  **[PRU_3363869_7]**
- **Prudential's investment portfolio is well-diversified**, with strong performance in the private equity portfolio, and the company expects to continue performing well in relevant markets.  **[PRU_3363869_23]**

a3d565ad119350205a59b16c56fa3eeaf52e35cba5beb2e6f30568b73b1ab818

Prudential Financial Inc (PRU)

Financials