Slide 1: 4Q22 Investor Update
4Q22 Investor Update Expanding access to investing, insurance, and retirement security
Slide 2: Prudential Investment Thesis
Prudential Investment Thesis ROCK SOLID DIFFERENTIATED DISCIPLINED Demonstrated financial Thoughtful strategies and Positioned for strength business design produce long-term growth differentiated outcomes TRANSFORMING TO BECOME A HIGHER GROWTH, LESS MARKET SENSITIVE, MORE NIMBLE BUSINESS 145+ years
Slide 3: Complementary Businesses at Scale with Long-Term Growth Potential
Complementary Businesses at Scale with Long-Term Growth Potential Earnings Contribution(1) Key Statistics PGIM Revenues(2): $62B 14% International Businesses Adjusted Book Value Per Share(3): $99.22 39% $4.7 billion Employees(4): Approx. 40,000 U.S. Businesses 47% Adjusted Dividend Yield(5): 5% (1)
Slide 4: Competitive Advantages Support Strategic Execution
Competitive Advantages Support Strategic Execution Leverage our Strengths: Execute on Strategic Priorities: • Leading global asset Invest in growth businesses and manager markets around the world • Best-in-class liability origination Deliver industry-leading customer and • Cross-business synergies c
Slide 5: Transforming our Business for Sustainable Growth
Transforming our Business for Sustainable Growth Reduced Market Sensitivity and Invested Expanded Solutions and Enhanced in Emerging Market Growth Customer Experience Sales of Full Service Retirement business and Completed 2nd largest PRT transaction in U.S. PALAC traditional Variable Annuity block
Slide 6: Exceeded $750 Million of Cost Savings One Year Ahead of Target
Exceeded $750 Million of Cost Savings One Year Ahead of Target ($ in millions) Achieved $820 million of run-rate savings, above 2023 target $50 $400 $635 Run-Rate Savings 2019 2020Run-Rate Savings 2021 1Q22 2Q22 $750 2019 2020 2021 Implementing continuous improvements to enhance employee and custome
Slide 7: Navigating the Macro Environment with our Rock Solid Balance Sheet
Navigating the Macro Environment with our Rock Solid Balance Sheet • Capital continues to support AA rating level as of December 31, 2022 Financial strength to • Highly liquid assets of $4.5 billion(1) support all stakeholders • Well-diversified investment portfolio • Investing in businesses for lon
Slide 8: Continued Commitment to Long-Term Sustainability
Continued Commitment to Long-Term Sustainability ENVIRONMENTAL SOCIAL GOVERNANCE 2050 Net Zero(1) Over $1B Donated(2) 80%(3) emissions across primary global operations by The Prudential Foundation of Independent Directors are diverse expands and accelerates climate actions to eliminate barriers for
Slide 9: Rock Solid
ROCK SOLID Demonstrated financial strength Expanding access to investing, insurance, and retirement security
Slide 10: 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 Expanding access to investing, insurance, and retirement security 10
Slide 11: Demonstrated Financial Strength
Demonstrated Financial Strength Capital Position Sources of Funding • Parent company liquid assets at the high end of $3 to • Parent company highly liquid assets of $4.5 billion(1) $5 billion liquidity target range • Free cash flow(2) ~65% of earnings over time • PICA RBC ratio > 375% • Japan solven
Slide 12: Preserving Balance Sheet Strength, as We Have Done 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 13: Broadly Diversified, High Quality Investment Portfolio
Broadly Diversified, High Quality Investment Portfolio Portfolio Composition(1) $360 billion Highlights: Other Equities/ Alts 4% • Broadly diversified, high quality portfolio 5% with strong Asset Liability Management Mortgage Loans Government Securities • Benefits from PGIM’s expertise and direct 14
Slide 14: Balanced Approach to Capital Allocation
Balanced Approach to Capital Allocation Shareholder Distributions 1. Maintain Strong Capital Position ($ millions) $4,321 $4,144 2. Organic Growth at Attractive Returns $3,245 $3,322 $3,026 $2,500 $2,550 $2,500 $1,500 3. Sustainable and Growing Dividends $2,269 $2,000 $1,500 $1,250 $500 4. Acquisiti
Slide 15: Double-Digit Dividend Growth Supported by Strong Earnings and Cash Flow Coverage
Double-Digit Dividend Growth Supported by Strong Earnings and Cash Flow Coverage ($ per share) Annual Dividends $4.80 $4.60 $4.40 $4.00 16% $3.60 CAGR $3.00 $2.17 $2.44 $2.80 51% $1.73 2022 Dividend $1.60 $1.45 Payout Ratio(1) $1.15 $0.58 $0.70 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 16: Differentiated
DIFFERENTIATED Thoughtful strategies and business design produce differentiated outcomes Expanding access to investing, insurance, and retirement security
Slide 17: PGIM: A Leading Global Investment Manager Across Private and Public Asset Classes
PGIM A Leading Global Investment Manager Across a Broad Range of Private and Public Asset Classes Earnings Contribution(1) Business Highlights: ($ millions) • Diverse offering with scale – Attractive asset classes, client segments, and $843 worldwide geographic presence • Proven ability to capture i
Slide 18: Strong Investment Performance Across Attractive Asset Classes
PGIM Strong Investment Performance Across Attractive Asset Classes Leads to Significant Long-Term Organic Growth Percentage of PGIM AUM(1) 18 out of 20 Years of Positive Outperforming Benchmark Third-Party Net Flows ($ billions) 36.5 30.0 83% 86% 23.8 79% 22.6 21.9 20.1 20.2 15.6 11.0 11.0 13.7 11.0
Slide 19: 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 $2,404 • Expand in select, high growth emerging Inte
Slide 20: Attractive Mix of Developed and Emerging Markets Provide Long-term Growth
International Businesses Attractive Mix of Developed and Emerging Markets Provide Long-term Growth Developed: Japan Emerging Markets • Highly productive distribution system; • Expanding economies and rising affluent world class captive agents, and middle class: Latin America, China, complemented by
Slide 21: Diversified Business Portfolio with Expanding Market Opportunities
U.S. Businesses Diversified Business Portfolio with Expanding Market Opportunities Earnings Contribution(1) Business Highlights: ($ millions) • Diversified customer base • Broad set of complementary solutions U.S. • Strong multi-channel distribution Businesses • Synergies with PGIM’s investment expe
Slide 22: Broad, End-to-End Engagement Model
U.S. Businesses Broad, End-to-End Engagement Model We Can Meet Customers… … How and Where They Want Institutions Individuals within Digital Hybrid In-Person Institutions Individuals Expanding access to investing, insurance, and retirement security 22
Slide 23: Complementary Businesses Amplify Growth and Mitigate Risk
Complementary Businesses Amplify Growth and Mitigate Risk Competitive Synergies Risk Mitigation Synergies • PGIM is the “investment engine” • Diversification of earnings, capital, of Prudential – generates higher and risks returning assets that enhance the competitiveness of U.S. and • Natural hedgi
Slide 24: Disciplined
DISCIPLINED Positioned for long-term growth Expanding access to investing, insurance, and retirement security
Slide 25: Execution on Strategy Driving Growth
PGIM Execution on Strategy Driving Growth Growth opportunities from: Alternatives International Retail Expanding access to investing, insurance, and retirement security 25
Slide 26: Broad Geographic Presence in Key Markets
PGIM Broad Geographic Presence in Key Markets With 1,400+ investment professionals located across 47 offices in 18 countries, our experts are present in key financial centers around the world. DUBLIN LETTERKENNEY AMSTERDAM TORONTO LONDON FRANKFURT PARIS MUNICH MINNEAPOLIS CHICAGO BOSTON ZÜRICH MILAN
Slide 27: Growth in Alternatives
PGIM Growth in Alternatives Investments for Market Opportunity(1) PGIM’s Positioning Future Growth ($ trillions) • Acquired Montana Capital Partners, a $3.2B AUM Private 9% Alternatives(2) $265B $23.3 Equity Secondaries manager CAGR • Building out private credit capabilities (e.g., mezzanine, Top 3
Slide 28: Significant Opportunity Outside the U.S.
PGIM Significant Opportunity Outside the U.S. • Top 3 foreign manager of Japanese Institutional assets Japan ~$204B in Assets • Increased appetite for non-Japan assets • AUM from European clients grew 18% over the past five years Europe • Significantly increased sales and marketing footprint in Euro
Slide 29: Momentum in U.S. Retail
PGIM Momentum in U.S. Retail Investments for Market Opportunity(1) PGIM’s Positioning Future Growth • 13 out of 14 years of • Continue to build on 20% positive mutual fund net strategic partner status flows(2) (e.g., Edward Jones) $23 53% trillion • Institutional approach to • Scale up suite of 27%
Slide 30: Expanding Market Share
International Businesses Expanding Market Share Growth opportunities from: Continuing market leadership in Japan Expanding our presence in select, high growth emerging markets Expanding access to investing, insurance, and retirement security 30
Slide 31: Well Positioned for Continued Outperformance in Japan
International Businesses Well Positioned for Continued Outperformance in Japan Market Adept at Highly Skilled Penetration Product Distribution Beyond Tokyo Evolution Expanding access to investing, insurance, and retirement security 31
Slide 32: Leverage our Partnerships with Market-Leading Companies for Future 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 Innovation-driven con
Slide 33: Executing Against Three Strategic Pillars
U.S. Businesses Executing Against Three Strategic Pillars Growth opportunities from: Strengthening our foundational businesses Transforming capabilities and efficiency Expanding addressable markets to accelerate growth Expanding access to investing, insurance, and retirement security 33
Slide 34: Strengthening Our Foundational Businesses
U.S. Businesses Strengthening Our Foundational Businesses • Grow profitably through innovation and expansion into adjacent markets and Retirement products for both individuals and institutions Strategies • Deliver investment strategies and income solutions for growth and protection that create stake
Slide 35: Transforming Capabilities and Efficiency
U.S. Businesses Transforming Capabilities and Efficiency Achieved $750 million cost savings target… Technology Call Center Process Enablement Optimization Automation (Digital, Mobile) …and implemented a process of continuous improvement to identify and execute on future cost savings opportunities Ex
Slide 36: Expanding Addressable Markets to Accelerate Growth
U.S. Businesses Expanding Addressable Markets to Accelerate Growth Opportunity to Accelerate Growth in Significant opportunity Mass Affluent and Middle Market to expand and grow: • Underserved markets with 80M significant gaps for protection and retirement Mass Market How we make it happen: Househol
Slide 37: Prudential Investment Thesis
Prudential Investment Thesis ROCK SOLID DIFFERENTIATED DISCIPLINED Demonstrated financial Thoughtful strategies and Positioned for strength business design produce long-term growth differentiated outcomes TRANSFORMING TO BECOME A HIGHER GROWTH, LESS MARKET SENSITIVE, MORE NIMBLE BUSINESS 145+ years
Slide 38: Appendix
APPENDIX Expanding access to investing, insurance, and retirement security
Slide 39: Sources of Rankings
Sources of Rankings Business Market Position Source Top 3 Real Estate Pensions & Investments Top Real Estate Managers list, published Manager October 3, 2022. AUM as of June 30, 2022. Top 3 Foreign Manager PGIM Japan, based on the total AUM for discretionary managed of Japanese Institutional account
Slide 40: 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, run-rate cost savings, ability to manage risk associated with eq
Slide 41: 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 42: 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 operati
Slide 43: Earnings by Business
Earnings by Business ($ millions) Full Year 2022 Adjusted operating income (loss) before income taxes PGIM $ 843 U.S. Businesses: Institutional Retirement Strategies 1,541 Individual Retirement Strategies 2,682 Group Insurance (16) Individual Life (1,215) Assurance IQ (113) Total U.S. Businesses 2,8
Slide 44: Reconciliations between Adjusted Operating Income and the Comparable GAAP Measure
Reconciliations between Adjusted Operating Income and the Comparable GAAP Measure ($ millions, except per share data) Full Year 2022 Net income (loss) attributable to Prudential Financial, Inc. $ (1,438) Income (loss) attributable to noncontrolling interests (24) Net income (loss) (1,462) Less: Earn
Slide 45: 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, 2022 GAAP book value $ 16,250 Less: Accumulated other comprehensive income (AOCI) (19,827) GAAP book value excluding AOCI 36,077 Less: Cumulative effect of remeasurement of fo