Prudential Financial, Inc. · NYSE:PRU
Prudential Financial — Q1 2026 Earnings Presentation
23 slides from Prudential Financial's earnings presentation, May 6, 2026
Slide 1: 1Q26 Earnings Call
1Q26 EARNINGS CALL MAY 6, 2026 Expanding access to investing, insurance, and retirement security
Slide 2: First Quarter 2026 Performance Highlights
FIRST QUARTER 2026 PERFORMANCE HIGHLIGHTS • Adjusted operating earnings reflected solid underwriting performance, $1,626M 7% improving consistency, and early benefits from initiatives to sharpen focus Pre-Tax Adjusted YoY and strengthen execution Operating Income(1) • Taking targeted actions to redu
Slide 3: Operating Results by Business
OPERATING RESULTS BY BUSINESS EARNINGS DRIVERS ($ millions, pre-tax adjusted operating income) PGIM U.S. Businesses International Businesses + Higher asset management fees driven by + Higher spread income primarily driven by + Higher spread income market appreciation Retirement and Individual Life +
Slide 4: PGIM: Global Investment Manager
PGIM I Global Investment Manager with Differentiated Capabilities Across Private and Public Asset Classes QUARTERLY EARNINGS AND DRIVERS ($ millions) $249 Key Earnings Drivers (Year-over-Year) $229 $244 + Higher asset management fees driven by market $190 11% $156 appreciation + Higher other related
Slide 5: Retirement: Capitalizing on Secular Tailwinds
RETIREMENT I Capitalizing Secular Tailwinds Through a Diverse Product Portfolio QUARTERLY EARNINGS AND DRIVERS ($ millions) Key Earnings Drivers (Year-over-Year) $598 $572 + Higher spread income due to business growth and $536 25% $526 $397 higher prepayment income – Increased expenses related to bu
Slide 6: Group Insurance: Leveraging Group Benefits Leadership
GROUP INSURANCE I Leveraging Group Benefits Leadership to Expand and Diversify Growth QUARTERLY EARNINGS AND DRIVERS ($ millions) $125 Key Earnings Drivers (Year-over-Year) + More favorable Life underwriting due to favorable $89 (2) $90 4% $77 mortality in the working-age population $38 – Less favor
Slide 7: Individual Life: Broad Product Portfolio
INDIVIDUAL LIFE I Broad Product Portfolio and Multi-Channel Distribution Driving Results QUARTERLY EARNINGS AND DRIVERS ($ millions) $186 Key Earnings Drivers (Year-over-Year) $153 $139 + More favorable underwriting due to more favorable 7% $82 mortality from lower claims severity $52 + Higher sprea
Slide 8: U.S. Legacy Products: Reporting Aligned to How We Manage
U.S. LEGACY PRODUCTS I Reporting Aligned to How We Manage the Business QUARTERLY EARNINGS AND DRIVERS ($ millions) $351 Key Earnings Drivers (Year-over-Year) $308 $264 + Market appreciation $252 14% $207 – Lower net fee income resulting from continued run-off of the traditional variable annuity bloc
Slide 9: International Businesses: Strong Global Presence
INTERNATIONAL BUSINESSES I Strong Global Presence with Market Leadership in Japan QUARTERLY EARNINGS AND DRIVERS ($ millions) $848 $881 Key Earnings Drivers (Year-over-Year) $761 $757 $810 + Higher spread income 39% + More favorable underwriting primarily driven by new business growth in Brazil Earn
Slide 10: Significant Financial Strength
SIGNIFICANT FINANCIAL STRENGTH | Strong Capital Position with Ample Liquidity HIGHLY LIQUID ASSETS(1) REGULATORY CAPITAL RATIOS(2) – CONSISTENT WITH AA OBJECTIVES ($ billions) $4.9 Ratios remain in excess of our objectives $3.9 $3.9 $3.8 $3.7 Target: >$3.0B >375% >150% PICA RBC Japan Economic Ratio
Slide 11: General Account: Broadly Diversified Investment Portfolio
GENERAL ACCOUNT | Broadly Diversified, High Quality Investment Portfolio PORTFOLIO COMPOSITION(1) HIGHLIGHTS $399 billion • Portfolio supported by strong asset O ther Equi ties 6% liability management 3% Al ternatives 3% – High allocation to government securities G o vernment (mostly U.S. and Japan)
Slide 12: General Account: Private Fixed Income
GENERAL ACCOUNT | Long History of Investments in Private Fixed Income • Prudential has a 30+ year track record in private fixed income investing • Private placements have long been a core allocation for the General Account – Offers a yield premium alongside enhanced protections and diversification v
Slide 13: Appendix
APPENDIX 13
Slide 14: 1Q26 Adjusted Operating Income and Variances by Business
1Q26 ADJUSTED OPERATING INCOME AND VARIANCES BY BUSINESS Variances(1) Adjusted Alternative Total Operating Expenses POJ Sales Investment Underwriting Variances Income & Other(3) Suspension(4) ($ millions, except per share amounts) Income(2) PGIM $190 - - (50) - ($50) Retirement $572 (40) 15 - - ($25
Slide 15: Seasonality of Key Financial Items
SEASONALITY OF KEY FINANCIAL ITEMS ($ millions, pre-tax adjusted operating income) 2Q26 3Q26 4Q26 1Q27 Higher compensation PGIM $10 Lower compensation expense $10 Lower compensation expense $10 Lower compensation expense ($30) expense(1) Group Insurance $10 Higher underwriting gains $10 Higher under
Slide 16: Reconciliations Between Adjusted Operating Income and GAAP Measure
RECONCILIATIONS BETWEEN ADJUSTED OPERATING INCOME AND THE COMPARABLE GAAP MEASURE First Quarter ($ millions) 2026 2025 Net income (loss) attributable to Prudential Financial, Inc. $ 597 $ 707 Income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests 9 35 Net inco
Slide 17: Reconciliations Between Adjusted Operating Income Per Share and GAAP
RECONCILIATIONS BETWEEN ADJUSTED OPERATING INCOME PER SHARE AND THE COMPARABLE GAAP MEASURE First Quarter 2026 2025 Net income (loss) per share attributable to Prudential Financial, Inc. $ 1.68 $ 1.96 Less: Reconciling Items: Realized investment gains (losses), net, and related charges and adjustmen
Slide 18: Reconciliation Between Adjusted Book Value and GAAP Measure
RECONCILIATION BETWEEN ADJUSTED BOOK VALUE AND THE COMPARABLE GAAP MEASURE ($ millions, except per share data) March 31, 2026 GAAP book value $ 31,975 Less: Accumulated other comprehensive income (AOCI) (3,450) GAAP book value excluding AOCI 35,425 Less: Cumulative change in fair value of funds with
Slide 19: Reconciliation Between PGIM Total Revenues and Adjusted Revenues
RECONCILIATION BETWEEN PGIM TOTAL REVENUES AND TOTAL ADJUSTED REVENUES ($ millions) 1Q25 2Q25 3Q25 4Q25 1Q26 Total revenues (1) $ 985 $ 1,043 $ 1,095 $ 1,108 $ 1,040 Less: Passthrough distribution revenue 21 20 21 21 20 Less: Revenue associated with consolidations 18 50 45 42 23 Total adjusted reven
Slide 20: Forward-Looking Statements
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, financial targets and objectives and capital priorities, actions to reduce costs and the expected impacts thereof, o
Slide 21: Non-GAAP Measures
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
Slide 22: Non-GAAP Measures (Continued)
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 operat
Slide 23: Non-GAAP Measures (Continued)
NON-GAAP MEASURES (CONTINUED) 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 remeasure