Prudential Financial, Inc. · NYSE:PRU
Prudential Financial — Q3 2026 Earnings Presentation
23 slides from Prudential Financial's earnings presentation, Nov 4, 2026
Slide 1: 3Q26 Earnings Call
3Q26 EARNINGS CALL NOVEMBER 4, 2026 Expanding access to investing, insurance, and retirement security
Slide 2: Third Quarter 2026 Performance Highlights
THIRD QUARTER 2026 PERFORMANCE HIGHLIGHTS • Adjusted operating earnings demonstrated the discipline and consistency in our execution $1,646M $183M • Lower earnings in Japan related to the sales suspension in Prudential of Japan more than Pre-Tax Adjusted YoY offset solid fundamentals in PGIM and our
Slide 3: Operating Results by Business
OPERATING RESULTS BY BUSINESS EARNINGS DRIVERS ($ millions, pre-tax adjusted operating income) PGIM U.S. Businesses Japan Businesses + Lower operating expenses – Higher sales related expenses – Higher expenses and less favorable underwriting results primarily due to the + Higher asset management fee
Slide 4: PGIM: Global Investment Manager with Differentiated Capabilities
PGIM I Global Investment Manager with Differentiated Capabilities Across Public and Private Asset Classes QUARTERLY EARNINGS AND DRIVERS ($ millions) Key Earnings Drivers (Year-over-Year) $294 + Lower expenses primarily due to the absence of a $249 $263 reorganization charge in the prior year and sa
Slide 5: Retirement: Capitalizing Secular Tailwinds Through a Diverse Product Portfolio
RETIREMENT I Capitalizing Secular Tailwinds Through a Diverse Product Portfolio QUARTERLY EARNINGS AND DRIVERS ($ millions) Key Earnings Drivers (Year-over-Year) – Higher sales related expenses $637 $620 28% $557 $593 – Lower Habitat(2) joint venture earnings $433 – Less favorable underwriting resul
Slide 6: Group Insurance: Leveraging Group Benefits Leadership to Expand and Diversify Growth
GROUP INSURANCE I Leveraging Group Benefits Leadership to Expand and Diversify Growth QUARTERLY EARNINGS AND DRIVERS ($ millions) Key Earnings Drivers (Year-over-Year) $155 + Higher life underwriting results due to more favorable mortality in the working-age population 5% $90 $77 $101 + Continued gr
Slide 7: Individual Life: Broad Product Portfolio and Multi-Channel Distribution
INDIVIDUAL LIFE I Broad Product Portfolio and Multi-Channel Distribution Driving Results QUARTERLY EARNINGS AND DRIVERS ($ millions) Key Earnings Drivers (Year-over-Year) $186 $199 + More favorable underwriting, driven by a reserve refinement $176 $153 in the current quarter 9% $139 + Higher spread
Slide 8: U.S. Legacy Products: Reporting Aligned to How We Manage the Business
U.S. LEGACY PRODUCTS I Reporting Aligned to How We Manage the Business QUARTERLY EARNINGS AND DRIVERS ($ millions) Key Earnings Drivers (Year-over-Year) – Lower net fee income resulting from continued run-off of $308 the traditional variable annuity block, partially offset by 12% $252 $207 $234 $253
Slide 9: Japan Businesses: Leading Market Positions with Durable Customer Demand
JAPAN BUSINESSES I Leading Market Positions with Durable Customer Demand QUARTERLY EARNINGS AND DRIVERS ($ millions) Key Earnings Drivers (Year-over-Year) – Increased expenses and less favorable underwriting results $750 primarily due to the Prudential of Japan sales suspension 33% $665 $690 $694 $5
Slide 10: Significant Financial Strength: Strong Capital Position with Ample Liquidity
SIGNIFICANT FINANCIAL STRENGTH | Strong Capital Position with Ample Liquidity HIGHLY LIQUID ASSETS(1) REGULATORY CAPITAL RATIOS(2) – CONSISTENT WITH AA OBJECTIVES ($ billions) Ratios remain in excess of our objectives $4.2 $4.0 $3.9 $3.8 $3.7 PICA RBC Japan Economic Ratio Solvency Ratio Target: >$3.
Slide 11: General Account: Broadly Diversified, High-Quality Investment Portfolio
GENERAL ACCOUNT | Broadly Diversified, High-Quality Investment Portfolio PORTFOLIO COMPOSITION(1) HIGHLIGHTS $397 billion • Broadly diversified, high-quality portfolio Other with strong Asset Liability Management Equities 6% Alts 3% 3% – High allocation to government Government securities (mostly U.
Slide 12: General Account: Long History of Investments in Private Fixed Income
GENERAL ACCOUNT | Long History of Investments in Private Fixed Income • Prudential has a 30+ year track record in private fixed income investing • Private placements have long been a core allocation for the General Account – Offers a yield premium alongside enhanced protections and diversification v
Slide 13: Appendix
APPENDIX 13
Slide 14: 3Q26 Adjusted Operating Income and Variances by Business
3Q26 ADJUSTED OPERATING INCOME AND VARIANCES BY BUSINESS (1) Variances Adjusted Alternative Total Operating Expenses POJ Sales Investment Underwriting (3) Variances Income & Other Suspension ($ millions, except per share amounts) Income(2) PGIM $263 - - (5) - ($5) Total 3Q Prudential of Japan (POJ)
Slide 15: Seasonality of Key Financial Items
SEASONALITY OF KEY FINANCIAL ITEMS ($ millions, pre-tax adjusted operating income) 4Q26 1Q27 2Q27 3Q27 Lower compensation Higher compensation Lower compensation Lower compensation PGIM $10 ($30) $10 $10 expense expense(1) expense expense Group Insurance ($20) Lowest underwriting gains $10 Higher und
Slide 16: Reconciliations Between Adjusted Operating Income and the Comparable GAAP Measure
RECONCILIATIONS BETWEEN ADJUSTED OPERATING INCOME AND THE COMPARABLE GAAP MEASURE Third Quarter Year-to-Date ($ millions) 2026 2025 2026 2025 Net income (loss) attributable to Prudential Financial, Inc. $ 1,388 $ 1,431 $ 2,970 $ 2,671 Income (loss) attributable to noncontrolling interests and redeem
Slide 17: Reconciliations Between Adjusted Operating Income Per Share and GAAP Measure
RECONCILIATIONS BETWEEN ADJUSTED OPERATING INCOME PER SHARE AND THE COMPARABLE GAAP MEASURE Third Quarter Year-to-Date 2026 2025 2026 2025 Net income (loss) per share attributable to Prudential Financial, Inc. $ 3.96 $ 4.01 $ 8.43 $ 7.44 Less: Reconciling Items: Realized investment gains (losses), n
Slide 18: Reconciliation Between Adjusted Book Value and the Comparable GAAP Measure
RECONCILIATION BETWEEN ADJUSTED BOOK VALUE AND THE COMPARABLE GAAP MEASURE ($ millions, except per share data) September 30, 2026 GAAP book value $ 29,512 Less: Accumulated other comprehensive income (AOCI) (6,854) GAAP book value excluding AOCI 36,366 Less: Cumulative change in fair value of funds
Slide 19: Reconciliation Between PGIM Total Revenues and Total Adjusted Revenues
RECONCILIATION BETWEEN PGIM TOTAL REVENUES AND TOTAL ADJUSTED REVENUES ($ millions) 3Q25 4Q25 1Q26 2Q26 3Q26 Total revenues (1) $ 1,095 $ 1,108 $ 1,040 $ 1,107 $ 1,029 Less: Passthrough distribution revenue 21 21 20 20 19 Less: Revenue associated with consolidations 45 42 23 44 16 Total adjusted rev
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, objectives, goals, priorities, expectations, plans, initiatives, or anticipated future performance, financial targets and objectives and capit
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