Prudential Financial — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income attributable to Prudential Financial, Inc. was $1.388 billion ($3.96 per common share), compared to $1.431 billion ($4.01 per share) in the year-ago quarter.
• After-tax adjusted operating income was $1.321 billion ($3.77 per common share), compared to $1.444 billion ($4.05 per share) in the year-ago quarter.
• Book value per common share was $84.88, down from $90.69 per share in the prior year; adjusted book value per common share was $102.39, up from $99.25 per share.
• Parent company highly liquid assets totaled $4.0 billion, compared to $3.9 billion in the prior year.
• Assets under management (AUM) were $1.616 trillion, up from $1.612 trillion in the prior year.
• Capital returned to shareholders totaled $741 million, including $250 million in share repurchases and $491 million in dividends, compared to $731 million in the prior year.
• Net income included $368 million of pre-tax net realized investment losses and related charges, compared to $538 million in the prior year.

Guidance and Future Outlook:

• Management expressed strengthened conviction in the company's strategy and ability to deliver long-term value following the narrowing of the geographic footprint and solid performance in PGIM and U.S. businesses.
• The company continues to execute on a strategy to build a simpler, more focused company.

Business Segments and Product Lines:

• PGIM: Reported adjusted operating income of $263 million, up from $244 million in the prior year, driven by higher asset management fees and lower expenses. AUM remained essentially unchanged at $1.465 trillion. Third-party net inflows reached $9.0 billion, the highest level in 10 quarters, with institutional inflows of $7.7 billion and retail inflows of $1.3 billion.
• U.S. Businesses: Reported adjusted operating income of $1.173 billion, down from $1.188 billion in the prior year.
  • Retirement: Adjusted operating income was $620 million, down from $637 million. Net account values increased 3% to $364 billion. Total sales were $8.2 billion, including $3.9 billion in retail annuity sales, the highest quarterly level since 2013.
  • Group Insurance: Adjusted operating income was $101 million, up from $90 million. Year-to-date sales increased 23% to $682 million.
  • Individual Life: Adjusted operating income was $199 million, up from $153 million. Third-quarter sales were $230 million, down 7% from the prior year.
  • U.S. Legacy Products: Adjusted operating income was $253 million, down from $308 million. Net legacy annuities account values decreased 12% to $72 billion due to run-off.
• Japan Businesses: Reported adjusted operating income of $559 million, down from $750 million in the prior year, impacted by the sales suspension, higher expenses, and less favorable underwriting. Constant dollar basis sales decreased 36% to $291 million.
• Corporate & Other: Reported a loss of $349 million on an adjusted operating income basis, essentially unchanged from a loss of $353 million in the prior year. This segment now includes results from divested and run-off businesses.

Market and Competitive Landscape:

• PGIM third-party net flows were driven by public credit inflows, partially offset by public equity outflows reflecting an industry trend away from active equities.
• Retail annuity sales in the U.S. reached record levels for Registered Index-Linked Annuities.
• The company announced the sale of Prudential of Brazil, Prudential of Mexico, and its South Africa insurance business, and closed sales of businesses in Indonesia and Kenya.

Risks and Challenges:

• Lower earnings in Japan related to the sales suspension in Prudential of Japan more than offset solid fundamentals in other segments.
• U.S. Legacy Products performance was negatively impacted by the continued run-off of the traditional variable annuity block and less favorable underwriting results in the guaranteed universal life block.
• Forward-looking statements note risks including investment losses due to credit deterioration, counterparty default, and insurance product losses due to mortality, morbidity, or policyholder behavior differing from expectations.

Management Commentary and Tone:

• Andy Sullivan, Chairman and CEO, stated that the results demonstrate "discipline and consistency" in execution and that the company took an "important step forward" in narrowing its geographic footprint.
• Management highlighted sustained strong momentum in private assets and noted that the broader Japan franchise demonstrated resilience despite the sales suspension.

Other Key Points:

• Segment reporting changes announced on October 15, 2026, renamed the former International Businesses segment to "Japan Businesses" and moved the operating results of emerging market businesses (Brazil, Mexico) to "Divested and Run-off Businesses" within Corporate & Other.
• The results of the Company's indirect 40% ownership interest in Administradora de Fondos de Pensiones Habitat S.A. were moved from International Businesses to the Retirement segment.
• Dividends paid in the third quarter were $1.40 per common share, representing a yield on adjusted book value of over 5%.
• A conference call to review results is scheduled for November 4, 2026, at 11:00 a.m. ET.