Slide 1: 4Q24 Earnings Call
4Q24 EARNINGS CALL FEBRUARY 5, 2025 Expanding access to investing, insurance, and retirement security
Slide 2: Key Messages
KEY MESSAGES Becoming a higher growth, more capital efficient company WE MAKE LIVES BETTER BY SOLVING Maintaining disciplined capital deployment THE FINANCIAL CHALLENGES OF OUR Supported by our rock solid balance CHANGING WORLD sheet 2
Slide 3: 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 4: 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 shareholders in 2024(1) in 2025 and the 17th growth consecutive year of dividend increases Creating sustainable, profitabl
Slide 5: 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 $4.6 billion(1) Financial strength to support all stakeholders High quality, well diversified investment portfolio Disciplined Asset Liability Management (
Slide 6: Full Year & Fourth Quarter 2024 Highlights
FULL YEAR & FOURTH QUARTER 2024 HIGHLIGHTS Financial Highlights Earnings Drivers ($ millions, except per share amounts) ($ millions, pre-tax adjusted operating income) 2024 4Q24 PGIM U.S. Businesses International Businesses (1) + Higher asset management – One-time transaction costs – Less favorable
Slide 7: PGIM
PGIM Active Global Investment Manager Across a Broad Range of Private and Public Asset Classes Earnings Contribution to Prudential Key Priorities Trailing twelve months(1) • Maintain strong investment performance(2) ($ millions) $875 – Percentage of AUM(3) outperforming public benchmarks: 3 Year: 67
Slide 8: U.S. Businesses
U.S. BUSINESSES Diversified Portfolio with Favorable Growth Opportunities Earnings Contribution to Prudential Key Priorities Trailing twelve months(1) • Drive higher value and higher growth with a complementary mix of ($ millions) businesses and diversified sources of earnings • Transform our capabi
Slide 9: International Businesses
INTERNATIONAL BUSINESSES Market Leader in Japan with Expanding Presence in Growth Markets Earnings Contribution to Prudential Key Priorities Trailing twelve months(1) • Expand product and business capabilities to meet customers’ ($ millions) evolving insurance and retirement security needs $3,106 •
Slide 10: 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 11: Enterprise Financial Targets and Capital Priorities
ENTERPRISE FINANCIAL TARGETS AND CAPITAL PRIORITIES 5-8% 13-15% 8.5-10.5% $3B+ Core Adjusted Adjusted Adjusted Operating Highly Liquid Operating EPS Operating ROE Expense Ratio(2) Assets Growth(1) Capital Allocation Priorities Attractive and increasing dividends 35-45% Organic growth 30-40% ~65% Fre
Slide 12: Intermediate Term Financial Targets by Business
INTERMEDIATE TERM FINANCIAL TARGETS BY BUSINESS Earnings Growth(1) Drivers 6-9% Asset Management Fee Growth PGIM Low Double Digit 25-30% Adjusted Operating Margin(2) Institutional 2-4% Account Value Growth(3) Retirement Individual Actively-Sold Account 20-25% U.S. Businesses Mid Single Digit Retirem
Slide 13: Key Messages
KEY MESSAGES Becoming a higher growth, more capital efficient company WE MAKE LIVES BETTER BY SOLVING Maintaining disciplined capital deployment THE FINANCIAL CHALLENGES OF OUR Supported by our rock solid balance CHANGING WORLD sheet 13
Slide 14: Appendix
APPENDIX 14
Slide 15: Retirement Strategies
RETIREMENT STRATEGIES Expanding Access to Retirement Security Earnings Contribution to Prudential Key Priorities Trailing twelve months(1) • Continue market leadership and flawless execution in Institutional ($ millions) retirement while expanding in new products, customer sets, and geographies $ 1
Slide 16: Group Insurance
GROUP INSURANCE Leading Group Benefits Provider with Opportunity to Further Diversify Earnings Contribution to Prudential Key Priorities Trailing twelve months(1) • Execute on diversification strategy while maintaining pricing discipline ($ millions) – Maintain National segment market share (>5,000
Slide 17: Individual Life
INDIVIDUAL LIFE Broad Product Portfolio and Multi-Channel Distribution Earnings Contribution to Prudential Key Priorities Trailing twelve months(1) • Improve profitability through disciplined pricing, expense ($ millions) management, and optimizing inforce business • Expand digital capabilities to d
Slide 18: Life Planner
LIFE PLANNER Highly Productive Proprietary Distribution with Steady Long-Term Growth Potential Earnings Contribution to Prudential Key Priorities Trailing twelve months(1) • Continue to meet customers’ insurance and retirement security ($ millions) needs and expand product and business capabilities
Slide 19: Gibraltar Life & Other
GIBRALTAR LIFE & OTHER Meeting Client Needs via Multiple Channels Earnings Contribution to Prudential Key Priorities Trailing twelve months(1) • Continue to meet customers’ insurance and retirement security ($ millions) needs and expand product and business capabilities $1,236 • Nurture and strength
Slide 20: Broadly Diversified, High Quality Investment Portfolio
BROADLY DIVERSIFIED, HIGH QUALITY INVESTMENT PORTFOLIO Portfolio Composition(1) $372 billion Highlights: Equities 2% Alternatives Other • Broadly diversified, high quality portfolio with strong 4% 6% Asset Liability Management Government – High allocation to government securities Securities 21% (mos
Slide 21: Mortgage Loan Portfolio
MORTGAGE LOAN PORTFOLIO • Conservative underwriting with a weighted average loan-to-value (LTV) of 59% and debt service coverage ratio (DSCR) of 2.38x as well as a prudent loan monitoring process with loan evaluations occurring at least annually – 90% of mortgage loans have LTVs less than 80% – 91%
Slide 22: Adjusted Operating Income Reconciliation by Business
ADJUSTED OPERATING INCOME RECONCILIATION BY BUSINESS Alternative 4Q24 Expenses & 4Q24 Investment Underwriting Reported Other(3) Core ($ millions, pre-tax) Income(2) PGIM $259 - - (15) $244 Institutional Retirement $427 (5) 15 20 $457 Strategies Individual Retirement $424 - - 10 $434 Strategies Group
Slide 23: Seasonality of Key Financial Items
SEASONALITY OF KEY FINANCIAL ITEMS ($ millions, pre-tax adjusted operating income) 1Q25 2Q25 3Q25 4Q25 Higher compensation PGIM ($45) expense(1) Group Insurance ($20) Lowest underwriting gains $10 Higher underwriting gains $10 Higher underwriting gains Individual Life ($25) Lowest underwriting gains
Slide 24: 2025 Earnings & Other Considerations
2025 EARNINGS & OTHER CONSIDERATIONS PGIM Other Related Revenues $160-200 million Corporate & Other Operating Loss(1) $1.8 billion Share Repurchase Authorization $1 billion Effective Tax Rate 22-23% Intermediate Term Economic Assumptions Return on Alternative Long Term Rates Remain Yen Exchange Rate
Slide 25: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain of the statements included in this presentation, including those regarding our plan for sustainable, profitable growth and shareholder returns, our capital deployment strategy, including planned dividends and share repurchases, and those under the headings “Enterpr
Slide 26: Non-GAAP Measures
NON-GAAP MEASURES This presentation includes references to adjusted operating income, core adjusted operating income, adjusted book value, and adjusted operating return on equity, which is based on adjusted operating income, core adjusted operating income, and adjusted book value. Consolidated adjus
Slide 27: Non-GAAP Measures (Continued)
NON-GAAP MEASURES (CONTINUED) Adjusted operating income is a non-GAAP measure used by the Company to evaluate segment performance and to allocate resources. Adjusted operating income excludes “Realized investment gains (losses), net, and related charges and adjustments”. A significant element of rea
Slide 28: Non-GAAP Measures (Continued)
NON-GAAP MEASURES (CONTINUED) Adjusted operating income and core adjusted operating income do not equate to “Net income” as determined in accordance with U.S. GAAP. Adjusted operating income and core adjusted operating income are not a substitute for income determined in accordance with U.S. GAAP, a
Slide 29: Reconciliations Between Core Adjusted Operating Income and the Comparable GAAP Measure
RECONCILIATIONS BETWEEN CORE ADJUSTED OPERATING INCOME AND THE COMPARABLE GAAP MEASURE Fourth Quarter Year-to-Date ($ millions) 2024 2023 2024 2023 Net income (loss) attributable to Prudential Financial, Inc. $ (57) $ 1,317 $ 2,727 $ 2,488 Income (loss) attributable to noncontrolling interests and r
Slide 30: Reconciliations Between Core Adjusted Operating Income and the Comparable GAAP Measure (Continued)
RECONCILIATIONS BETWEEN CORE ADJUSTED OPERATING INCOME AND THE COMPARABLE GAAP MEASURE (CONTINUED) Fourth Quarter Year-to-Date ($ millions) 2024 2023 2024 2023 Adjusted operating income before income taxes $ 1,371 Less: Annual review and update of actuarial assumptions and other refinements - Return
Slide 31: 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 Fourth Quarter Year-to-Date 2024 2023 2024 2023 Net income (loss) per share attributable to Prudential Financial, Inc. $ (0.17) $ 3.61 $ 7.50 $ 6.74 Less: Reconciling Items: Realized investment gains (lo
Slide 32: 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) PGIM core adjusted operating income $ 920 U.S. Businesses adjusted operating income $ 3,728 Le
Slide 33: 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) December 31, 2024 GAAP book value $ 27,872 Less: Accumulated other comprehensive income (AOCI) (6,711) GAAP book value excluding AOCI 34,583 Less: Cumulative change in fair value of funds w