Slide 1: 4Q24 Investor Update
4Q24 INVESTOR UPDATE Expanding access to investing, insurance, and retirement security
Slide 2: Prudential Investment Thesis
PRUDENTIAL INVESTMENT THESIS PRUDENTIAL INVESTMENT THESIS ROCK SOLID DIFFERENTIATED DISCIPLINED Demonstrated financial Thoughtful strategies and mutually reinforcing business Positioned forlong-term growth strength ROCK SOLID DIFFERENTIATED system produce a competitive advantage DISCIPLINED Demonstr
Slide 3: Integrated Set of Businesses at Scale with Long-Term Growth Potential
INTEGRATED SET OF BUSINESSES AT SCALE WITH LONG-TERM GROWTH POTENTIAL Earnings Contribution(1) Key Statistics PGIM 11% Revenues(2): $68B International Businesses $5.9 Adjusted Book Value Per Share(3): $95.82 40% billion U.S. Employees(4): ~40K Businesses 49% Adjusted Dividend Yield(5): 5% (1) Based
Slide 4: Differentiated Mutually Reinforcing Business System
DIFFERENTIATED MUTUALLY REINFORCING BUSINESS SYSTEM BRAND Deeply connected INSURANCE & businesses that help SCALE RETIREMENT one another grow, unlocking value for QUALITY our shareholders OPEN- ARCHITECTURE SOLUTIONS REINSURANCE/ GLOBAL THIRD-PARTY INVESTMENT MANAGEMENT PGIM CAPITAL EXPERTISE 4
Slide 5: Competitive Advantages Support Strategic Execution
COMPETITIVE ADVANTAGES SUPPORT STRATEGIC EXECUTION Leverage our Strengths: Execute on Strategic Priorities: • Leading global asset manager Invest in growth businesses and markets around the world • Best-in-class liability origination • Cross-business synergies Deliver industry-leading customer and c
Slide 6: Becoming a Higher Growth, More Capital Efficient Company
BECOMING A HIGHER GROWTH, MORE CAPITAL EFFICIENT COMPANY • PGIM benefitted from its diversified private alternatives platform, the growing global retirement opportunity, and the growth of our insurance and retirement businesses Growing our • Retirement Strategies continued to address the growing ret
Slide 7: Maintaining Disciplined Capital Deployment
MAINTAINING DISCIPLINED CAPITAL DEPLOYMENT Board authorized share Investing in market leading repurchases of up to $1 billion Returned nearly $3 billion to businesses to support in 2025 and the 17th shareholders in 2024(1) growth consecutive year of dividend increases Creating sustainable, profitabl
Slide 8: Supported by Our Rock Solid Balance Sheet
SUPPORTED BY OUR ROCK SOLID BALANCE SHEET Capital supports AA financial strength rating as of December 31, 2024, 2023(1) Highly liquid assets of $4.6 billion(1) Financial strength to support all stakeholders High quality, well diversified investment portfolio Disciplined Asset Liability Management (
Slide 9: Enterprise Financial Targets and Capital Priorities
ENTERPRISE FINANCIAL TARGETS AND CAPITAL PRIORITIES 5-8% 13-15% 8.5-10.5% $3B+ Core Adjusted Adjusted Adjusted Operating Highly Liquid Operating EPS Operating ROE Expense Ratio(2) Assets Growth(1) Capital Allocation Priorities Attractive and increasing dividends 35-45% Organic growth 30-40% ~65% Fre
Slide 10: Intermediate Term Financial Targets by Business
INTERMEDIATE TERM FINANCIAL TARGETS BY BUSINESS INTERMEDIATE TERM FINANCIAL TARGETS BY BUSINESS Earnings Growth Growth(1) EarningsDrivers Drivers (1) PGIM Low Double 6-9% Asset Management Fee Growth Digit 25-30% Adjusted Operating Margin 6-9% Asset Management Fee Growth PGIM Low Dou(2)ble Digit 25-3
Slide 11: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS Investing Environmental Societal Impact Governance Sustainably Stewardship $1B+ 10 Years $39.1B 69% donated by The Prudential of consecutively being of sustainable emissions reduced since Foundation to help close recognized as one of the investments(3) held by our 2017 base
Slide 12: Rock Solid
ROCK SOLID DEMONSTRATED FINANCIAL STRENGTH
Slide 13: Robust Approach to Capital & Liquidity Management
ROBUST APPROACH TO CAPITAL & LIQUIDITY MANAGEMENT Risk Appetite Financial Strength Liquidity Framework “AA” standards Significant resources Capitalized to remain for capital available competitive under stress scenarios 13
Slide 14: Significant Capital Position
SIGNIFICANT CAPITAL POSITION Objectives Position Highly Liquid Assets > $3 billion $4.6 billion(1) Consistent with AA objectives Regulatory Capital Ratios remain in excess PICA RBC ratio > 375% Ratios of our objectives(2) Japan solvency margin ratios > 700% Off-Balance Sheet Resources Resource Capac
Slide 15: Preserving Balance Sheet Strength for 145+ Years
PRESERVING BALANCE SHEET STRENGTH, AS WE HAVE DONE FOR 145+ YEARS Stress Parameters Our Toolbox Outcomes • Disciplined ALM and hedging • Maintain appropriate and Equity Market Decline competitive regulatory capital • On-balance sheet capital levels at insurance companies capacity • Maintain adequate
Slide 16: Broadly Diversified, High Quality Investment Portfolio
BROADLY DIVERSIFIED, HIGH QUALITY INVESTMENT PORTFOLIO Portfolio Composition(1) $372 billion Highlights: Equities 2% Alternatives Other • Broadly diversified, high quality portfolio with strong 4% 6% Asset Liability Management Government – High allocation to government securities Securities 21% (mos
Slide 17: Adjusted Asset Leverage In-Line with Peers
ADJUSTED ASSET LEVERAGE IN-LINE WITH PEERS Asset Leverage(1) Adjustments Adjusted Asset Leverage Exclude non-credit risk assets(2): 13.3x • For example: government bonds, assets supporting experience-rated 8.6x contractholder liabilities(3), and 8.0x equities, etc. 7.6x Exclude Closed Block(3): • Ri
Slide 18: Balanced Approach to Capital Allocation
BALANCED APPROACH TO CAPITAL ALLOCATION Shareholder Distributions 1. Maintain Financial Strength ($ millions) $4,321 $4,144 2. Organic Growth at Attractive Returns $3,245 $3,322 $3,026 2,500 $2,850 $2,892 $2,550 2,500 3. Sustainable and Growing Dividends $2,269 1,500 1,000 1,000 Share Repurchases 2,
Slide 19: Double-Digit Dividend Growth Supported by Strong Earnings and Cash Flow
DOUBLE-DIGIT DIVIDEND GROWTH SUPPORTED BY STRONG EARNINGS AND CASH FLOW COVERAGE ($ per share) Annual Dividends $5.20 $5.00 $4.80 $4.60 $4.40 15% $4.00 CAGR $3.60 $2.80 $3.00 41% $2.44 $2.17 2024 Dividend $1.73 Payout Ratio(1) $1.60 $1.45 $1.15 $0.58 $0.70 2008 2009 2010 2011 2012 2013 2014 2015 201
Slide 20: Differentiated
DIFFERENTIATED THOUGHTFUL STRATEGIES AND MUTUALLY REINFORCING BUSINESS SYSTEM PRODUCE A COMPETITIVE ADVANTAGE
Slide 21: PGIM: A Leading Global Investment Manager
PGIM A LEADING GLOBAL INVESTMENT MANAGER ACROSS A BROAD RANGE OF PRIVATE AND PUBLIC ASSET CLASSES Earnings Contribution(1) Business Highlights: ($ millions) • Diversified capabilities and clients – Capabilities in high growth asset classes, including $875 private RE, private credit, and public fixed
Slide 22: Leadership Positions Across Investment Platform
PGIM LEADERSHIP POSITIONS ACROSS INVESTMENT PLATFORM Product Mix by Asset Management Fees Scale Across Markets Multi-Asset Class 5% #3 #6 #10 Real Estate Manager Defined Benefit Defined Contribution 33% Alternatives Worldwide Assets Assets RE Equity & Debt Public Equity 21% Differentiated Investment
Slide 23: Benefits from Large and Diverse Credit Platform
PGIM BENEFITS FROM LARGE AND DIVERSE CREDIT PLATFORM Private Credit Public Credit 800+ investment professionals Corporate (Direct Lending, Mezzanine, seeking income opportunities across Investment Grade, Below Investment Grade) Investment Grade Corporates / Core the credit spectrum Real Estate Debt
Slide 24: U.S. Businesses: Broad Business Portfolio
U.S. Businesses BROAD BUSINESS PORTFOLIO WITH ROBUST LIABILITY ORIGINATION CAPABILITIES Earnings Contribution(1) Business Highlights: ($ millions) • Diverse customer base with further growth potential across demographics • Complementary solutions across businesses U.S. Businesses • Strong multi-chan
Slide 25: Leading Distribution Model with End-to-End Customer Engagement
U.S. Businesses LEADING DISTRIBUTION MODEL WITH END-TO-END CUSTOMER ENGAGEMENT Distribution through a Ability to meet customers wide range of channels where and how they want In Person Hybrid Digital • Financial professionals Individuals • Direct-to-consumer • Pension plan sponsors Institutions • Re
Slide 26: Market Leader in Japan with Expanding Presence in Growth Markets
International Businesses MARKET LEADER IN JAPAN WITH EXPANDING PRESENCE IN GROWTH MARKETS Earnings Contribution(1) Business Highlights: ($ millions) • Best in class, profitable Japanese franchise consistently maintaining market leadership position $3,106 • Expand in select, high growth emerging Inte
Slide 27: Attractive Mix of Developed and Emerging Markets
International Businesses ATTRACTIVE MIX OF DEVELOPED AND EMERGING MARKETS PROVIDE LONG-TERM GROWTH Developed: Japan Emerging Markets • Highly productive distribution system; • Expanding economies and rising affluent world class captive agents, and middle class: Latin America, China, complemented by
Slide 28: Disciplined
DISCIPLINED POSITIONED FOR LONG-TERM GROWTH
Slide 29: PGIM: Execution on Strategy Driving Growth
PGIM EXECUTION ON STRATEGY DRIVING GROWTH Expanding alternatives platform Investing in next-gen retail and high-net worth (HNW) Growth opportunities from: Capitalizing on growing demand for solutions Broadening geographic footprint internationally 29
Slide 30: Growth in Alternatives
PGIM GROWTH IN ALTERNATIVES Market Opportunity(1) PGIM’s Positioning Key Growth Initiatives ($ trillions) • Formed PGIM Private Total Alternatives, bringing together the 10% $328B Alternatives(2) firm’s private alternative CAGR $29.2 capabilities • Broadened private alternative capabilities with acq
Slide 31: Investing in Next Generation Retail & HNW Growth
PGIM INVESTING IN NEXT GENERATION RETAIL & HNW GROWTH • HNW Alternatives platform has dedicated offerings across RE, direct lending, and alternative credit HNW • Acquired Custom Harvest, a differentiated tax-managed direct index offering, and have more than doubled direct index AUM since acquisition
Slide 32: Capitalizing on Growing Demand for Solutions
PGIM CAPITALIZING ON GROWING DEMAND FOR SOLUTIONS • Experienced insurance partner well versed in capital requirements and asset-liability management Third-Party • Announced additional $7B Prismic reinsurance transaction, expected to bring total Prismic AUM Insurance to $17B $91B in Assets • Manage t
Slide 33: Broadening Geographic Presence in Key Markets
PGIM BROADENING GEOGRAPHIC PRESENCE IN KEY MARKETS With 1,400+ investment professionals located across 42 offices in 19 countries, our experts are present in key financial centers around the world. EMEA ASIA $109 PACIFIC AMERICAS Billion in AUM $216 $1,050 Billion in AUM Billion in AUM • Top 4 forei
Slide 34: U.S. Businesses: Building on a Strong Core
U.S. Businesses BUILDING ON A STRONG CORE Strengthening our foundational businesses Growth Enhancing customer and opportunities advisor experiences from: Expanding in our chosen markets to accelerate growth 34
Slide 35: Strengthening Our Foundational Businesses
U.S. Businesses STRENGTHENING OUR FOUNDATIONAL BUSINESSES • Expanding access to retirement security, broadening distribution through new Retirement relationships, platforms, and advisors Strategies • Delivering industry-leading strategies for protected growth and income that create stakeholder value
Slide 36: Enhancing Capabilities to Simplify Customer and Advisor Experiences
U.S. Businesses ENHANCING CAPABILITIES TO SIMPLIFY CUSTOMER AND ADVISOR EXPERIENCES Building a culture of continuous improvement… Process Customer Digital Simplification and Onboarding Enablement Automation Optimization …to drive enhancements for customers and advisors while realizing cost savings 3
Slide 37: Expanding in Chosen Markets to Accelerate Growth
U.S. Businesses EXPANDING IN CHOSEN MARKETS TO ACCELERATE GROWTH As more individuals near retirement… …many are financially unprepared How we solve it and grow: • Simplified, affordable, and accessible products +55% • Complementary distribution 85M $40T Unprotected nest egg assets channels that meet
Slide 38: International Businesses: Expanding Market Share
International Businesses EXPANDING MARKET SHARE Continuing market leadership in Japan Growth opportunities from: Expanding our presence in select, high growth emerging markets 38
Slide 39: Well Positioned for Continued Outperformance in Japan
International Businesses WELL POSITIONED FOR CONTINUED OUTPERFORMANCE IN JAPAN Adept at Highly Skilled Customer Product Distribution Focused Evolution 39
Slide 40: Leverage Partnerships for Growth in Emerging Markets
International Businesses LEVERAGE OUR PARTNERSHIPS WITH MARKET-LEADING COMPANIES FOR FUTURE GROWTH IN EMERGING MARKETS Latin America Africa Asia Brazil South Africa China Leading provider of integrated Largest private sector bank in Brazil and a independent advice together with leading financial ins
Slide 41: Prudential Investment Thesis
PRUDENTIAL INVESTMENT THESIS ROCK SOLID DIFFERENTIATED DISCIPLINED Demonstrated financial Thoughtful strategies and Positioned for strength mutually reinforcing business long-term growth system produce a competitive advantage BECOMING A HIGHER GROWTH, MORE CAPITAL EFFICIENT, AND NIMBLE COMPANY 145+
Slide 42: Appendix
APPENDIX
Slide 43: Sources of Rankings
SOURCES OF RANKINGS BUSINESS MARKET POSITION SOURCE Pensions & Investments Top Real Estate Managers list, published #3 Real Estate Manager October 7, 2024. AUM as of June 30, 2024. Participation in the ranking is voluntary. #1 REITs #2 Real Estate Debt #2 Privately Placed Debt #4 Emerging Market Deb
Slide 44: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain of the statements included in this presentation, including those relating to Prudential Financial, Inc.’s and its subsidiaries’ financial strength, strategy, growth prospects and market opportunities, planned transactions, our plans to become a higher growth, less
Slide 45: Non-GAAP Measures
NON-GAAP MEASURES This presentation includes references to adjusted operating income, core adjusted operating income, adjusted book value, and adjusted operating return on equity, which is based on adjusted operating income, core adjusted operating income, and adjusted book value. Consolidated adjus
Slide 46: Non-GAAP Measures (Continued)
NON-GAAP MEASURES (CONTINUED) 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 rea
Slide 47: Non-GAAP Measures (Continued)
NON-GAAP MEASURES (CONTINUED) Adjusted operating income and core adjusted operating income do not equate to “Net income” as determined in accordance with U.S. GAAP. Adjusted operating income and core adjusted operating income are not a substitute for income determined in accordance with U.S. GAAP, a
Slide 48: Reconciliations Between Adjusted Operating Income and Comparable GAAP Measure
RECONCILIATIONS BETWEEN ADJUSTED OPERATING INCOME AND THE COMPARABLE GAAP MEASURE RECONCILIATIONS BETWEEN ADJUSTED OPERATING INCOME ($ millions, except per share data) Twelve Months Ended 12/31/2024 AND THE COMPARABLE GAAP MEASURE Net income (loss) attributable to Prudential Financial, Inc. $ 2,727
Slide 49: Reconciliations Between Core Adjusted Operating Income Per Share and GAAP
RECONCILIATIONS BETWEEN CORE ADJUSTED OPERATING INCOME PER SHARE AND THE COMPARABLE GAAP MEASURE RECONCILIATIONS BETWEEN CORE ADJUSTED OPERATING INCOME PER SHARE AND THE COMPARABLE GAAP MEASURE 2024 Net income (loss) per share attributable to Prudential Financial, Inc. $ 7.50 Less: Reconciling Items
Slide 50: Reconciliation Between Adjusted Operating Income and Core Adjusted Operating Income
RECONCILIATION BETWEEN ADJUSTED OPERATING INCOME AND CORE ADJUSTED OPERATING INCOME RECONCILIATION BETWEEN ADJUSTED OPERATING INCOME AND CORE ADJUSTED OPERATING INCOME ($ millions) 2024 PGIM adjusted operating income $ 875 Less: Higher) / lower than expected expenses and other items (45) ($ millions
Slide 51: Reconciliations Between Adjusted Book Value and Comparable GAAP Measure
RECONCILIATIONS BETWEEN ADJUSTED BOOK VALUE AND THE COMPARABLE GAAP MEASURE RECONCILIATIONS BETWEEN ADJUSTED BOOK VALUE AND THE COMPARABLE GAAP MEASURE ($ millions, except per share data) December 31, 2024 GAAP book value $ 27,872 Less: Accumulated other comprehensive income (AOCI) (6,711) GAAP book