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FEBRUARY 4, 2026 4Q25 EARNINGS CALL Expanding access to investing, insurance, and retirement security
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22 FULL YEAR & FOURTH QUARTER 2025 PERFORMANCE Note: See Appendix for segment results. (1) See reconciliation in Appendix for non-GAAP measures Adjusted Operating Income, Adjusted Operating Income Per Share, and Adjusted Book Value Per Share. (2) 2025 reflects the change from the prior full year period. 4Q25 reflects the change from the year -ago quarter. (3) Based on 2025 after-tax Adjusted Operating Income and average Adjusted Book Value. See Appendix for more information. FINANCIAL HIGHLIGHTS ($ millions, except per share amounts) PGIM • Positive flow traction across public fixed income, private credit, and real estate offset by weaker active equities U.S. Businesses • Solid Retirement Strategies sales supported by diversified Institutional and Individual product suite • Group Insurance and Individual Life benefiting from ongoing product and segment diversification International Businesses • Retirement and savings product sales momentum continues in Japan • Record Brazil sales supported by distribution expansion BUSINESS HIGHLIGHTS 2025 4Q25 Pre-Tax Adjusted Operating Income (1) $6,637 $1,505 Change from Prior Period (2) 12% 10% Adjusted Operating Income Per Share (1) $14.43 $3.30 Change from Prior Period 14% 11% GAAP Net Income Per Share $9.99 $2.55 Change from Prior Period 33% N/M Adjusted Operating ROE (3) 14.9% Adjusted Book Value Per Share (1) $100.17
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33 PROGRESS ON DRIVING SUSTAINABLE, PROFITABLE GROWTH • Transformed PGIM into a unified platform enabling deeper client engagement and reducing costs over time • Enhanced our global retirement and insurance product offerings to meet evolving customer needs • Exited PGIM Taiwan in 3Q25 and our insurance business in Kenya in 1Q26 as part of ongoing evaluation of capital allocation towards higher return opportunities • Flattened our leadership structure to accelerate decision making and increase transparency and accountability THE ACTIONS WE HAVE TAKEN SET THE FOUNDATION FOR PRUDENTIAL'S TRANSFORMATION EVOLVING AND DELIVERING ON OUR STRATEGY IMPROVING OUR EXECUTION FOSTERING A HIGH-PERFORMANCE CULTURE 1 2 3
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44 OPERATING RESULTS BY BUSINESS Note: See Appendix for segment results. EARNINGS DRIVERS ($ millions, pre-tax adjusted operating income) PGIM + Higher asset management fees – Higher expenses – Lower other related revenues International Businesses + Higher spread income + More favorable underwriting – Higher expenses Corporate & Other results reflect higher expenses, driven by an organizational charge primarily related to severance, and unfavorable foreign exchange remeasurement impacts compared to 4Q24 U.S. Businesses + Higher spread income + More favorable underwriting + Lower expenses – Lower fee income $259 $249 4Q24 4Q25 $860 $1,051 4Q24 4Q25 $742 $757 4Q24 4Q25
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55 • Maintain strong investment performance(2) – Percentage of AUM(3) outperforming public benchmarks: 3 Year: 90%, 5 Year: 73%, 10 Year: 78% • Leverage diversified asset management capabilities to grow our industry leading businesses • Globalize both product and client footprint and continue to add capabilities • Grow in alternatives, including private credit, and other high margin areas • Selectively acquire new capabilities through programmatic M&A Trailing twelve months ($ millions) ($ billions) Trailing twelve months(1) ($ millions) EARNINGS CONTRIBUTION KEY PRIORITIES TOTAL NET FLOWS (1) Based on pre-tax adjusted operating income excluding Corporate & Other operations. (2) PGIM calculations as of December 31, 2025 for $900 billion of third-party AUM managed against public benchmarks. Past performance is not a guarantee or reliable indicator of future results. All investments involve risk, including the possible loss of capital. Performance is defined as outperformance (gross of fees) relative to each individual strategy’s respective benchmark(s). (3) Represents PGIM’s benchmarked AUM (77% of total third -party AUM is benchmarked over 3 years, 68% over 5 years, and 50% over 10 y ears). This calculation does not include non-benchmarked assets (including general account assets and assets not managed by PGIM). Returns are calculated gross of investment management fees, which would reduce an inv estor’s net return. Excess performance is based on all actively managed Fixed Income, Equity, and Real Estate AUM for Jennison Associates, PGIM Fixed Income, PGIM Quantitative Solutions, PGIM Real Estate, PGIM Private Capital, and PGIM Investments. ASSET MANAGEMENT FEES Active Global Investment Manager Across a Broad Range of Private and Public Asset ClassesPGIM I $878 PGIM 11% $11.4 $7.3 $0.4 $2.4 ($9.6) (1 5 .0 ) (1 0 .0 ) (5 .0 ) - 5 .0 1 0 .0 1 5 .0 4Q24 1Q25 2Q25 3Q25 4Q25 Institutional Retail Affiliated Net Flows Public Fixed Income 40% Public Equity 21% Real Estate 20% Private Credit & Other Alts 13% Multi-Asset 6% $3,355
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66 • Leverage strong brand, product breadth, and distribution strength to grow our businesses • Expand our addressable market with new financial solutions leveraging the capabilities across Prudential and our complementary mix of businesses with diversified sources of earnings • Transform our capabilities to increase efficiency and improve customer experiences • Institutional Retirement Strategies sales of $3.7 billion in 4Q, included $1 billion of pension risk transfer transactions • Solid sales in Individual Retirement Strategies of $3.6 billion, reflect continued momentum in both fixed annuities and registered index-linked annuities • Strong full year sales growth of 11% in Group Insurance, with 4Q25 benefits ratio of 82.5%, below our target range • Continued growth in Individual Life sales in 2025, up 5% compared to the prior year, driven by accumulation focused products Trailing twelve months(2) Trailing twelve months(1) ($ millions) EARNINGS CONTRIBUTION KEY PRIORITIES DIVERSIFIED SOURCES OF EARNINGS PERFORMANCE HIGHLIGHTS Diversified Portfolio with Favorable Growth OpportunitiesU.S. BUSINESSES I Note: See Appendix for segment results. (1) Based on pre-tax adjusted operating income excluding Corporate & Other operations. U.S. Businesses include Retirement Strategies , Group Insurance, and Individual Life. (2) Based on net spread income, net fee income, and underwriting margin and claims experience gross of expenses. Excludes assumption updat es and other refinements. $4,086 U.S. Businesses 50% Net Spread 45% Underwriting 29% Net Fees 26%
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77 • Expand product and business capabilities to meet customers’ evolving insurance and retirement security needs • Enhance customer experience and deliver differentiated distribution • Optimize capital and operational efficiency ($ millions) Trailing twelve months(1) ($ millions) EARNINGS CONTRIBUTION KEY PRIORITIES SALES(2) SALES – CURRENCY MIX(2) Strong International Presence with Market Leadership in JapanINTERNATIONAL BUSINESSES I (1) Based on pre-tax adjusted operating income excluding Corporate & Other operations. (2) Constant exchange rate basis. Foreign denominated activity translated to U.S. Dollars (USD) at uniform exchange rates for all periods presented, including Japanese Yen (JPY) 143 per USD and Brazilian Real (BRL) 5.8 per USD. USD-denominated activity is included based on the amounts as transacted in USD. Sales represented by annualized new business pre miums. Trailing twelve months $3,247 International Businesses 39% $507 $586 $541 $553 $525 4Q24 1Q25 2Q25 3Q25 4Q25 USD 57%JPY 25% BRL 16% Other 2%
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88 As of December 31, 2025 unless otherwise noted. (1) Highly liquid assets predominantly include cash, short-term investments, U.S. Treasury securities, obligations of other U.S. government authorities and agencies, and/or foreign government bonds. (2) PICA RBC ratio is disclosed in annual statutory statement. Japan solvency margin ratios are disclosed quarterly in Prudential ’s Form 10-Q/10-K. Economic Solvency Ratios (ESR) for Prudential of Japan and Gibraltar Life are required to be disclosed in 2026. We estimate these ratios are well above our operating target of 150% as of September 30, 2025. SIGNIFICANT FINANCIAL STRENGTH Off-Balance Sheet Resources Resource Capacity Maturity Date Credit Facility $4.0 billion July 2029 Contingent Capital $1.5 billion $1.5 billion May 2030 February 2033 and 2053 Prudential Holdings of Japan Facility ¥100 billion September 2029 Highly Liquid Assets(1) Regulatory Capital Ratios(2) Objectives Ratios remain in excess of our objectives Consistent with AA objectives PICA RBC ratio > 375% Japan solvency margin ratios > 700% > $3 billion $3.8 billion Position Off-Balance Sheet Resources
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99 APPENDIX
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1010 • Expand access to retirement security in our current markets by broadening our product offerings and market penetration • Deliver retirement security through innovative and tech-forward solutions • Bring additional income protection and increased retirement certainty to retail wealth and workplace retirement opportunities ($ billions)($ billions) Trailing twelve months(1) ($ millions) EARNINGS CONTRIBUTION KEY PRIORITIES ACCOUNT VALUES - PRODUCT MIX(2) (1) Based on pre-tax adjusted operating income excluding Corporate & Other operations. (2) Represents account values net of reinsurance ceded. (3) Includes Prudential FlexGuard and FlexGuard Income, Prudential Premier Investment, MyRock, Private Placement Variable Annuity, and all fixed annuity products. Excludes discontinued traditional variable annuities an d guaranteed living benefits. (4) Institutional net flows include sales of $ 25.9 billion and outflows of ($25.5 billion). ACCOUNT VALUES(2) AND TRAILING 12 MONTH NET FLOWS Expanding Access to Retirement SecurityRETIREMENT STRATEGIES I (3) (4) Bar order corresponds with the order of the legend to the left of the chart Chart order corresponds with the order of the legend to the right of the chart 0.4 10.5 (14.1) 33.3 4Q24 Institutional Net Flows Individual - Protected Investment & Income Net Flows Discontinued VA & GLB Block Net Flows Market Performance & Other 4Q25 $406 $436 $1,713 $1,732 Retirement Strategies 42% 279 285 298 299 300 44 46 52 56 59 83 78 80 80 77 $406 $409 $430 $435 $436 4Q24 1Q25 2Q25 3Q25 4Q25 Individual - Discontinued VA & GLB Block Individual - Protected Investment & Income Institutional
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1111 • Execute on diversification strategy while maintaining pricing discipline – Maintain National segment market share (>5,000 lives) and grow both Premier (100 to 5,000 lives) and Association segments – Further diversify product mix by expanding Disability and Supplemental Health • Enhance employer and participant experience through strategic partnerships • Improve organizational and process efficiencies by leveraging technology to strengthen capabilities ($ millions) Trailing twelve months(1) ($ millions) EARNINGS CONTRIBUTION KEY PRIORITIES EARNED PREMIUMS & FEES (1) Based on pre-tax adjusted operating income excluding Corporate & Other operations. (2) Benefits ratios excluding the impact of assumption updates and other refinements. (3) Targeted total benefits ratio range of 83% - 87%. TOTAL GROUP INSURANCE BENEFITS RATIO(2) Leading Group Benefits Provider with Opportunity to Further DiversifyGROUP INSURANCE I Bar order corresponds with the order of the legend to the left of the chart Target Range(3) $1,409 $1,593 $1,533 $1,536 $1,485 4Q24 1Q25 2Q25 3Q25 4Q25 Group Disability Group Life 83.1% 81.3% 80.9% 82.8% 82.5% 4Q24 1Q25 2Q25 3Q25 4Q25 $381 Group Insurance 5%
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1212 • Improve profitability through disciplined pricing, expense management, and optimizing inforce business • Expand digital capabilities to drive operating efficiencies and deepen distribution relationships • Continue growth of simplified term protection solutions that expand our addressable market and achieve a lower risk financial profile ($ millions) Trailing twelve months(1) ($ millions) EARNINGS CONTRIBUTION KEY PRIORITIES SALES(2) – PRODUCT MIX (1) Based on pre-tax adjusted operating income excluding Corporate & Other operations. (2) Sales represented by annualized new business premiums. SALES(2) – DISTRIBUTION MIX Broad Product Portfolio and Multi-Channel DistributionINDIVIDUAL LIFE I Bar order corresponds with the order of the legend to the left of the chart Trailing twelve months 267 154 160 186 201 24 24 24 30 32 35 32 39 37 36 $326 $210 $223 $253 $269 4Q24 1Q25 2Q25 3Q25 4Q25 Term Life Universal Life Variable Life Independent 64% Prudential Advisors 19% Institutional 17% $3,247 Individual Life 3% $260
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1313 BROADLY DIVERSIFIED, HIGH QUALITY INVESTMENT PORTFOLIO $396 billion (1) General Account excluding the Closed Block Division, funds withheld, and assets supporting experience -related contractholder liabilities as of December 31, 2025, on a U.S. GAAP carrying value basis. Mortgage loans include commercial, agricultural, residential, and other loans. Structured products include commercial and residential mortgage -backed securities, collateralized loan obligations, and other asset -backed securities. Alternatives include investments in LPs/LLCs, and real estate held through direct ownership. Other includes policy loans, fixed maturities - trading, short-term investments, credit-like instruments, derivatives, and other miscellaneous assets. HIGHLIGHTS • Broadly diversified, high quality portfolio with strong Asset Liability Management – High allocation to government securities (mostly U.S. and Japan) – Significant protections with private credit • Benefits from PGIM’s expertise and direct origination capabilities • Disciplined framework for credit management PORTFOLIO COMPOSITION(1) Government Securities 19% Corporate Securities, Public 30%Corporate Securities, Private 19% Structured Products 7% Mortgage Loans 14% Alternatives 3% Equities 2% Other 6%
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1414 TRACK RECORD OF MEASURED GROWTH IN PRIVATE CREDIT (1) General Account excluding the Closed Block Division, funds withheld, and assets supporting experience -related contractholder liabilities as of December 31, 2025, on a U.S. GAAP carrying value basis. Traditional privates include private corporate and government bonds. Other includes private structured products (commercial and residential mortgage -backed securities, collateralized loan obligations, and other asset -backed securities), direct lending, and credit - like instruments within other invested assets. HIGHLIGHTS • Private credit has always been a core allocation for the General Account – Prudential has a 30+ year track record in private credit – Offers yield premium, enhanced protections, and diversification versus public credit • Private credit has grown from 13% to 21% of invested assets since 2020 – Traditional privates represent 19% of invested assets EXPOSURE BY CREDIT QUALITY(1) $82 billion or 21% of invested assets 76% 13% 8% 3% 84% 16% Investment Grade Below Investment Grade Traditional Privates Other
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1515 4Q25 ADJUSTED OPERATING INCOME AND VARIANCES BY BUSINESS (1) Reflects favorable/(unfavorable) variances of alternative investment income, underwriting, and certain expenses and other ite ms from the Company’s expectations, included within Adjusted Operating Income. (2) Alternative investment income includes the adjusted operating income of the General Account portfolio’s interests in private equity, hedge fund, and real estate-related investments, as well as real estate investments held through direct ownership, and excludes the results from those interests held by Divested Businesses and third parties that have been consoli dated on the Company’s balance sheet. (3) PGIM reflects Other Related Revenues above a normalized level, partially offset by higher than typical expenses. Institutiona l Retirement Strategies reflects an investment gain. Individual Life reflects higher than typical expenses. International includes seasonally lower annual premiums and higher than typical expenses. Corporate & Other includes a $135M organizational charge and seasonal expenses, partially offset by an investment gain. (4) See Appendix for reconciliation of non-GAAP measures Adjusted Operating Income and Adjusted Operating Income Per Share to the mo st comparable GAAP measures. PGIM $249 - - 5 $5 Institutional Retirement Strategies $425 (25) (15) 15 ($25) Individual Retirement Strategies $456 (5) - - ($5) Group Insurance $77 5 (15) - ($10) Individual Life $93 (5) 40 (5) $30 International $757 30 (10) (60) ($40) Corporate & Other ($552) (15) - (115) ($130) Total Pre-Tax $1,505 ($15) $0 ($160) ($175) Total After-Tax Per Share $3.30 ($0.03) $0.00 ($0.36) ($0.39) ($ millions, except per share amounts) Adjusted Operating Income Variances(1) Total Variances Alternative Investment Income(2) Underwriting Expenses & Other(3) (4) (4)
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1616 SEASONALITY OF KEY FINANCIAL ITEMS (1) Long-term compensation expense for retiree eligible employees is recognized when awards are granted, typically in the first quar ter of each year. ($ millions, pre-tax adjusted operating income) PGIM ($30) Higher compensation expense(1) $10 Lower compensation expense $10 Lower compensation expense $10 Lower compensation expense Group Insurance ($20) Lowest underwriting gains $10 Higher underwriting gains $10 Higher underwriting gains Individual Life ($30) Lowest underwriting gains $10 Higher underwriting gains $25 Highest underwriting gains ($5) Lower underwriting gains International $80 Highest premiums ($30) Lower premiums ($10) Lower premiums ($40) Lowest premiums Corporate & Other ($25) Higher compensation expense(1) $25 Lower expenses $20 Lower expenses ($20) Higher expenses 1Q26 2Q26 3Q26 4Q26
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1717 2026 EARNINGS & OTHER CONSIDERATIONS PGIM Net Other Related Revenues $160-200 million Corporate & Other Operating Loss(1) $1.65 billion Share Repurchase Authorization $1 billion Effective Tax Rate 23-24% (1) Corporate & Other’s expected quarterly run-rate loss is ~$415 million.
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1818 FORWARD-LOOKING STATEMENTS Certain of the statements included in this presentation and made during the earnings call, including those regarding our strategy and the execution thereof, our financial targets and capital priorities, our commitment to improving financial performance and creating or delivering shareholder and stakeholder value, our expectation of future growth and profit, our financial strength objectives, those under the headings “Key Priorities,” “2026 Earnings & Other Considerations,” and “Seasonality of Key Financial Items,” the expected impact, including expected run-rate savings, margin expansion and client engagement, of the organizational changes within PGIM, our expectations of industry trends, the expected AOI impact of quarterly account value runoff related to our legacy variable annuity block, our expectations of surrender activity in Japan, the expected cost savings related to organizational changes, and the expected impact of the misconduct investigation in Japan, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “expects”, “believes”, “anticipates”, “includes”, “plans”, “assumes”, “estimates”, “projects”, “intends”, “should”, “will”, “shall”, or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. Prudential Financial, Inc.’s actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements include, among others, losses on investments or financial contracts due to deterioration in credit quality or value, or counterparty default; losses on insurance products due to mortality experience, morbidity experience or policyholder behavior experience that differs significantly from our expectations when we price our products; and uncertainty regarding investigations into and remediation of matters such as the misconduct in Japan. Additional factors and uncertainties that could cause actual results to differ can be found in the “Risk Factors” and “Forward-Looking Statements” sections included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Each of our forward-looking statements contained herein is subject to the risk that we will be unable to execute our strategy and other risks. In addition, our statements under the heading “Seasonality of Key Financial Items” are subject to the risk that different earnings and expense patterns will emerge. Prudential Financial, Inc. does not undertake to update any particular forward-looking statement included in this presentation. ____________________________________________________________________________ Prudential Financial, Inc. of the United States is not affiliated with Prudential plc which is headquartered in the United Kingdom.
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1919 NON-GAAP MEASURES This presentation includes references to adjusted operating income, adjusted book value, and adjusted operating return on equity, which is based on adjusted operating income and adjusted book value. Consolidated adjusted operating income, adjusted book value, and adjusted operating return on equity are not calculated based on accounting principles generally accepted in the United States of America (GAAP). For additional information about adjusted operating income, adjusted book value, and adjusted operating return on equity and the comparable GAAP measures, including reconciliations between the comparable measures, please refer to our quarterly results news releases, which are available on our website at investor.prudential.com. Reconciliations are also included as part of this presentation. We believe that our use of these non-GAAP measures helps investors understand and evaluate the Company’s performance and financial position. The presentation of adjusted operating income as we measure it for management purposes enhances the understanding of the results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described below. Adjusted book value augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations separate from the portion that is affected by capital and currency market conditions, and by isolating the accounting impact associated with insurance liabilities that are generally not marked to market and the supporting investments that are marked to market through accumulated other comprehensive income under GAAP. However, these non-GAAP measures are not substitutes for income and equity determined in accordance with GAAP, and the adjustments made to derive these measures are important to an understanding of our overall results of operations and financial position. The schedules accompanying this presentation provide reconciliations of non-GAAP measures with the corresponding measures calculated using GAAP. Additional historic information relating to our financial performance is located on our website at investor.prudential.com. Adjusted operating income is a non-GAAP measure used by the Company to evaluate segment performance and to allocate resources. Adjusted operating income excludes “Realized investment gains (losses), net, and related charges and adjustments”. A significant element of realized investment gains and losses are impairments and credit- related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as capital and other factors.
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2020 NON-GAAP MEASURES (CONTINUED) Realized investment gains (losses) within certain businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments, are included in adjusted operating income. Adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset-liability management program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are designated as trading. Adjusted operating income also excludes investment gains and losses on assets supporting experience-rated contractholder liabilities and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to ultimately accrue to contractholders. Additionally, adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income. Additionally, adjusted operating income excludes the impact of annual assumption updates and other refinements included in the above items. Adjusted operating income excludes “Change in value of market risk benefits, net of related hedging gains (losses)”, which reflects the impact from changes in current market conditions, and market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which we believe enhances the understanding of underlying performance trends. Adjusted operating income also excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations, and discontinued operations and earnings attributable to noncontrolling interests, each of which is presented as a separate component of net income under GAAP. Additionally, adjusted operating income excludes other items, such as certain components of the consideration for acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments. Earnings attributable to noncontrolling interests is presented as a separate component of net income under GAAP and excluded from adjusted operating income. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments. Adjusted operating income do not equate to “Net income” as determined in accordance with U.S. GAAP. Adjusted operating income are not a substitute for income determined in accordance with U.S. GAAP, and our definition of these non-GAAP measures may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described above. Adjusted book value is calculated as total equity (GAAP book value) excluding accumulated other comprehensive income (loss), the cumulative change in fair value of funds withheld embedded derivatives, and the cumulative effect of foreign currency exchange rate remeasurements and currency translation adjustments corresponding to realized investment gains and losses. These items are excluded in order to highlight the book value attributable to our core business operations separate from the portion attributable to external and potentially volatile capital and currency market conditions.
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2121 RECONCILIATIONS BETWEEN ADJUSTED OPERATING INCOME AND THE COMPARABLE GAAP MEASURE (1) Represents adjustments not included in the above reconciling items, including certain components of consideration for busines s acquisitions, which are recognized as compensation expense over the requisite service periods. (2) Represents adjusted operating income after-tax, annualized for interim periods, divided by average Prudential Financial, Inc. eq uity excluding accumulated other comprehensive income, adjusted to remove amounts included for foreign currency exchange rate remeasurement and the cumulative change in fair value of funds withheld embedded derivatives related to unrealized gains and losses on avai lable-for-sale securities and certain derivatives. ($ millions) 2025 2024 2025 2024 Net income (loss) attributable to Prudential Financial, Inc. 905$ (57)$ 3,576$ 2,727$ Income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests 36 130 156 119 Net income (loss) 941 73 3,732 2,846 Less: Earnings attributable to noncontrolling interests and redeemable noncontrolling interests 36 130 156 119 Income (loss) attributable to Prudential Financial, Inc. 905 (57) 3,576 2,727 Less: Equity in earnings of joint ventures and other operating entities, net of taxes and earnings attributable to noncontrolling interests and redeemable noncontrolling interests (40) (94) (27) 25 Income (loss) (after-tax) before equity in earnings of operating joint ventures 945 37 3,603 2,702 Less: Reconciling Items: Realized investment gains (losses), net, and related charges and adjustments (282)$ (1,525)$ (1,618)$ (2,150)$ Change in value of market risk benefits, net of related hedging gains (losses) (22) (77) (475) (397) Market experience updates 23 60 68 (52) Divested and Run-off Businesses: Closed Block Division (38) (52) (68) (113) Other Divested and Run-off Businesses 23 (20) 107 30 Equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests and redeemable noncontrolling interests 6 97 (20) (16) Other adjustments(1) (1) (3) 25 (19) Total reconciling items, before income taxes (291) (1,520) (1,981) (2,717) Less: Income taxes, not applicable to adjusted operating income (68) (489) (423) (831) Total reconciling items, after income taxes (223) (1,031) (1,558) (1,886) After-tax adjusted operating income 1,168 1,068 5,161 4,588 Income taxes, applicable to adjusted operating income 337 303 1,476 1,338 Adjusted operating income before income taxes 1,505$ 1,371$ 6,637$ 5,926$ Net Income (loss) Return on Equity 11.2% -0.8% 11.7% 9.6% Adjusted Operating Return on Equity (2) 13.3% 12.2% 14.9% 13.1% Fourth Quarter Year-to-Date
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2222 RECONCILIATIONS BETWEEN ADJUSTED OPERATING INCOME PER SHARE AND THE COMPARABLE GAAP MEASURE (1) Represents adjustments not included in the above reconciling items, including certain components of consideration for busines s acquisitions, which are recognized as compensation expense over the requisite service periods. 2025 2024 2025 2024 Net income (loss) per share attributable to Prudential Financial, Inc. 2.55$ (0.17)$ 9.99$ 7.50$ Less: Reconciling Items: Realized investment gains (losses), net, and related charges and adjustments (0.80) (4.27) (4.57) (5.98) Change in value of market risk benefits, net of related hedging gains (losses) (0.06) (0.22) (1.34) (1.10) Market experience updates 0.07 0.17 0.19 (0.14) Divested and Run-off Businesses: Closed Block Division (0.11) (0.15) (0.19) (0.31) Other Divested and Run-off Businesses 0.07 (0.06) 0.30 0.08 Difference in earnings allocated to participating unvested share-based payment awards - 0.02 0.05 0.06 Other adjustments(1) - (0.01) 0.07 (0.05) Total reconciling items, before income taxes (0.83) (4.52) (5.49) (7.44) Less: Income taxes, not applicable to adjusted operating income (0.08) (1.39) (1.05) (2.32) Total reconciling items, after income taxes (0.75) (3.13) (4.44) (5.12) After-tax adjusted operating income per share 3.30$ 2.96$ 14.43$ 12.62$ Fourth Quarter Year-to-Date
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2323 RECONCILIATION BETWEEN ADJUSTED BOOK VALUE AND THE COMPARABLE GAAP MEASURE (1) Amount represents the cumulative change in fair value of funds withheld embedded derivatives related to unrealized gains and losses on available-for-sale securities and certain derivatives associated with customer liabilities reinsured under coinsurance with funds withheld and modified coinsurance arrangements. ($ millions, except per share data) December 31, 2025 GAAP book value 32,438$ Less: Accumulated other comprehensive income (AOCI) (3,077) GAAP book value excluding AOCI 35,515 Less: Cumulative change in fair value of funds withheld embedded derivatives(1) (24) Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses) 238 Adjusted book value 35,301$ Number of diluted shares 352.4 GAAP book value per Common share - diluted 92.05$ GAAP book value excluding AOCI per Common share - diluted 100.78$ Adjusted book value per Common share - diluted 100.17$