Core Insights - Prudential (PRU) reported revenue of $13.51 billion for the quarter ended June 2025, reflecting a year-over-year decline of 2.4% while EPS increased to $3.58 from $3.39 a year ago, indicating a positive surprise of +11.53% against the consensus estimate of $3.21 [1] Financial Performance - The reported revenue of $13.51 billion exceeded the Zacks Consensus Estimate of $13.48 billion by +0.2% [1] - Total Revenues from U.S. Businesses were $8.01 billion, surpassing the average estimate of $7.93 billion, but showing a year-over-year decline of -4.7% [4] - Total Revenues from International Businesses were $4.4 billion, slightly below the average estimate of $4.55 billion, with a year-over-year decline of -2.5% [4] - Total Revenues from Corporate and Other were $56 million, exceeding the estimate of $52.8 million, but reflecting a significant year-over-year decline of -255.6% [4] Assets Under Management - Assets Under Management and Administration for PGIM totaled $1,440.7 billion, surpassing the average estimate of $1,401.82 billion [4] - Retail customer assets were reported at $256.7 billion, exceeding the estimate of $246.55 billion [4] - Institutional customer assets reached $647.6 billion, above the average estimate of $627.09 billion [4] Segment Performance - Adjusted Operating Income from net investment income was $4.6 billion, slightly above the average estimate of $4.53 billion [4] - Premiums reported were $6.43 billion, marginally exceeding the estimate of $6.41 billion [4] - Total Revenues from U.S. Businesses in Retirement Strategies for Individual Retirement Strategies were $1.32 billion, below the average estimate of $1.43 billion, but showing a year-over-year increase of +6% [4] - Total Revenues from U.S. Businesses in Retirement Strategies for Institutional Retirement Strategies were $3.51 billion, slightly below the average estimate of $3.56 billion, reflecting a year-over-year decline of -13.2% [4] Stock Performance - Prudential's shares have returned -5.1% over the past month, contrasting with the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Prudential (PRU) reported quarterly earnings of $3.58 per share, exceeding the Zacks Consensus Estimate of $3.21 per share, and showing an increase from $3.39 per share a year ago, representing an earnings surprise of +11.53% [1][2] Financial Performance - The company posted revenues of $13.51 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.20%, but down from $13.84 billion year-over-year [2] - Over the last four quarters, Prudential has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Prudential shares have declined approximately 12.7% since the beginning of the year, contrasting with the S&P 500's gain of 8.3% [3] - The current Zacks Rank for Prudential is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.59 on revenues of $14.14 billion, and for the current fiscal year, it is $13.47 on revenues of $55.72 billion [7] - The trend of estimate revisions for Prudential was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Insurance - Multi line industry, to which Prudential belongs, is currently in the bottom 33% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Prudential's stock performance [5]

[HIGHLIGHTS](index=3&type=section&id=HIGHLIGHTS) [Financial Metrics Summary](index=3&type=section&id=Financial%20Metrics%20Summary) Prudential Financial, Inc.'s key financial performance indicators for Q2 2025 and year-to-date show overall growth in adjusted operating income, alongside changes in net income and shareholder distributions Key Financial Metrics (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (millions) | 2Q 2025 (millions) | Year-to-date 2024 (millions) | Year-to-date 2025 (millions) | % change (YTD) | | :---------------------------------------------- | :----------------- | :----------------- | :--------------------------- | :--------------------------- | :------------- | | Adjusted operating income (loss) before income taxes | 1,560 | 1,665 | 2,995 | 3,185 | 6% | | After-tax adjusted operating income (loss) | 1,197 | 1,284 | 2,312 | 2,472 | 7% | | Income (loss) attributable to Prudential Financial, Inc. | 1,198 | 533 | 2,336 | 1,240 | -47% | | Operating Return on Average Equity | 13.5 % | 14.9 % | 13.1 % | 14.4 % | | | Dividends paid | 475 | 485 | 951 | 971 | 2% | | Share repurchases | 250 | 250 | 500 | 500 | —% | | Adjusted Operating Income - diluted (per share) | 3.28 | 3.58 | 6.34 | 6.87 | 8% | | Net income (loss) - diluted (per share) | 3.28 | 1.48 | 6.40 | 3.44 | -46% | [Financial Highlights](index=4&type=section&id=Financial%20Highlights) This section details the reconciliation of after-tax adjusted operating income per share to net income (loss) per share, highlighting the impact of various reconciling items such as realized investment gains/losses and changes in market risk benefits Earnings per share of Common Stock (diluted) (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 | 2Q 2025 | Year-to-date 2024 | Year-to-date 2025 | | :------------------------------------------------------------------ | :------ | :------ | :---------------- | :---------------- | | After-tax adjusted operating income (loss) | 3.28 | 3.58 | 6.34 | 6.87 | | Realized investment gains (losses), net, and related charges and adjustments | 0.49 | (1.45) | 0.31 | (2.14) | | Change in value of market risk benefits, net of related hedging gains (losses) | (0.82) | (1.20) | (0.48) | (2.19) |\n| Total reconciling items, after income taxes | — | (2.10) | 0.06 | (3.43) | | Net income (loss) attributable to Prudential Financial, Inc. | 3.28 | 1.48 | 6.40 | 3.44 | [Other Financial Highlights](index=5&type=section&id=Other%20Financial%20Highlights) This section presents key capitalization data, including senior and junior subordinated debt, various measures of Prudential Financial, Inc. equity, and per-share metrics, along with common stock market capitalization Capitalization Data (as of 2Q 2025) | Metric | 2Q 2024 (millions) | 3Q 2024 (millions) | 4Q 2024 (millions) | 1Q 2025 (millions) | 2Q 2025 (millions) | | :------------------------------------------ | :----------------- | :----------------- | :----------------- | :----------------- | :----------------- | | Short-term debt | 588 | 950 | 953 | 1,406 | 1,373 | | Long-term debt | 10,771 | 10,487 | 10,600 | 10,949 | 11,056 | | Junior subordinated long-term debt | 8,582 | 8,589 | 8,587 | 8,591 | 7,595 | | GAAP book value (total PFI equity) | 28,013 | 30,416 | 27,872 | 29,883 | 30,582 | | Adjusted book value | 35,570 | 35,547 | 34,408 | 34,454 | 34,292 | | GAAP book value per common share - diluted | 77.51 | 84.47 | 77.62 | 83.59 | 85.98 | | Adjusted book value per common share - diluted | 98.42 | 98.71 | 95.82 | 96.37 | 96.41 | | Common Stock market capitalization | 41,919 | 43,099 | 42,031 | 39,535 | 37,808 | [Operations Highlights](index=6&type=section&id=Operations%20Highlights) This section provides an overview of key operational metrics, including Assets Under Management and Administration (AUM&A) across all segments and the number of distribution representatives, indicating growth in total AUM&A Assets Under Management and Administration (in billions) (as of 2Q 2025) | Metric | 2Q 2024 | 3Q 2024 | 4Q 2024 | 1Q 2025 | 2Q 2025 | | :-------------------------------------- | :------ | :------ | :------ | :------ | :------ | | Total PGIM | 1,328.1 | 1,399.9 | 1,375.2 | 1,385.3 | 1,440.7 | | Total assets under management | 1,482.0 | 1,557.9 | 1,512.4 | 1,522.1 | 1,580.3 | | Total assets under management and administration | 1,665.9 | 1,747.7 | 1,685.9 | 1,702.5 | 1,773.5 | | Prudential Advisors | 2,821 | 2,877 | 2,794 | 2,906 | 2,985 | | Life Planners | 5,836 | 5,900 | 6,035 | 6,175 | 6,161 |\n| Life Consultants | 6,724 | 6,861 | 6,844 | 6,840 | 6,822 | [Combined Statements of Operations](index=7&type=section&id=Combined%20Statements%20of%20Operations) This section presents the consolidated statements of operations, detailing revenues, benefits, and expenses, and reconciling adjusted operating income to net income attributable to Prudential Financial, Inc. for Q2 and year-to-date 2025 Combined Statements of Operations (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (millions) | 2Q 2025 (millions) | Year-to-date 2024 (millions) | Year-to-date 2025 (millions) | % change (YTD) | | :---------------------------------------------- | :----------------- | :----------------- | :--------------------------- | :--------------------------- | :------------- | | Premiums | 7,277 | 6,426 | 22,283 | 12,872 | -42% | | Net investment income | 4,218 | 4,600 | 8,338 | 9,119 | 9% | | Total revenues | 13,849 | 13,506 | 35,555 | 26,918 | -24% | | Insurance and annuity benefits | 8,137 | 7,195 | 23,911 | 14,539 | -39% | | Interest credited to policyholders' account balances | 952 | 1,135 | 1,854 | 2,218 | 20% | | Total benefits and expenses | 12,289 | 11,841 | 32,560 | 23,733 | -27% | | Adjusted operating income (loss) before income taxes | 1,560 | 1,665 | 2,995 | 3,185 | 6% | | Income (loss) attributable to Prudential Financial, Inc. | 1,198 | 533 | 2,336 | 1,240 | -47% | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's consolidated financial position, detailing assets, liabilities, mezzanine equity, and total equity at the end of Q2 2025, showing an increase in total assets and Prudential Financial, Inc. equity Consolidated Balance Sheet (as of 2Q 2025) | Metric | 06/30/2024 (millions) | 09/30/2024 (millions) | 12/31/2024 (millions) | 03/31/2025 (millions) | 06/30/2025 (millions) | | :-------------------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Total investments | 432,648 | 469,117 | 444,780 | 449,706 | 460,581 | | Total assets | 715,311 | 760,437 | 735,587 | 739,262 | 758,952 | | Future policy benefits | 262,330 | 285,474 | 268,912 | 269,969 | 270,133 | | Policyholders' account balances | 154,991 | 164,088 | 166,254 | 170,278 | 180,931 | | Total liabilities | 685,091 | 727,719 | 705,461 | 707,040 | 725,836 | | Total Prudential Financial, Inc. equity | 28,013 | 30,416 | 27,872 | 29,883 | 30,582 | [Combining Balance Sheets](index=9&type=section&id=Combining%20Balance%20Sheets) This section provides a detailed breakdown of the consolidated balance sheet by major business segments for June 30, 2025, and December 31, 2024, offering a segmented view of assets, liabilities, and equity Total Assets by Segment (as of June 30, 2025) | Segment | Total Assets (millions) | | :------------------ | :---------------------- | | Consolidated PFI | 758,952 | | Closed Block Division | 48,458 | | PGIM | 37,454 | | U.S. Businesses | 450,163 | | International Businesses | 191,258 | | Corporate and Other | 31,619 | Total Prudential Financial, Inc. Equity by Segment (as of June 30, 2025) | Segment | Total PFI Equity (millions) | | :------------------ | :-------------------------- |\n| Consolidated PFI | 30,582 | | Closed Block Division | (1,626) | | PGIM | 2,942 | | U.S. Businesses | 16,301 | | International Businesses | 20,564 | | Corporate and Other | (7,599) | [Short-Term and Long-Term Debt - Unaffiliated](index=10&type=section&id=Short-Term%20and%20Long-Term%20Debt%20-%20Unaffiliated) This section details the company's short-term and long-term debt structure, categorized by use of proceeds and source, showing a slight decrease in total debt from December 2024 to June 2025 Total Debt by Use of Proceeds (as of June 30, 2025 vs. Dec 31, 2024) | Debt Type | June 30, 2025 (millions) | December 31, 2024 (millions) | | :-------------------------------------- | :----------------------- | :--------------------------- | | Capital Debt | 14,198 | 13,825 | | Operating Debt | 5,379 | 5,875 | | Limited recourse and non-recourse borrowing | 447 | 440 | | **Total Debt** | **20,024** | **20,140** | Total Debt by Source (as of June 30, 2025 vs. Dec 31, 2024) | Source | June 30, 2025 (millions) | December 31, 2024 (millions) | | :-------------------------------------- | :----------------------- | :--------------------------- | | Prudential Financial, Inc. | 18,686 | 18,818 | | The Prudential Insurance Company of America | 881 | 927 | | Other Affiliates | 457 | 395 | | **Total Debt** | **20,024** | **20,140** | [PGIM](index=11&type=section&id=PGIM) [Statements of Operations - PGIM](index=11&type=section&id=Statements%20of%20Operations%20-%20PGIM) This section presents PGIM's statements of operations, highlighting a 4% year-to-date increase in total revenues and a 3% increase in adjusted operating income before income taxes, with an adjusted operating margin of 23.5% in Q2 2025 PGIM Statements of Operations (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (millions) | 2Q 2025 (millions) | Year-to-date 2024 (millions) | Year-to-date 2025 (millions) | % change (YTD) | | :---------------------------------------------- | :----------------- | :----------------- | :--------------------------- | :--------------------------- | :------------- | | Net investment income | 14 | 59 | (29) | 79 | 372% | | Asset management fees, commissions and other income | 949 | 984 | 1,982 | 1,949 | -2% | | Total revenues | 963 | 1,043 | 1,953 | 2,028 | 4% | | Total benefits and expenses | 757 | 814 | 1,578 | 1,643 | 4% | | Adjusted operating income (loss) before income taxes | 206 | 229 | 375 | 385 | 3% | | Adjusted operating margin | 22.1 % | 23.5 % | 20.0 % | 20.1 % | | [Supplementary Revenue and Assets Under Management Information - PGIM](index=12&type=section&id=PGIM%20-%20Supplementary%20Revenue%20and%20Assets%20Under%20Management%20Information) This section provides a detailed breakdown of PGIM's revenue by type and source, along with a comprehensive view of Assets Under Management (AUM) by asset class and customer type, showing overall AUM growth PGIM Supplementary Revenue Information (YTD 2025 vs. YTD 2024) | Revenue Type | Year-to-date 2024 (millions) | Year-to-date 2025 (millions) | % change | | :-------------------------------- | :--------------------------- | :--------------------------- | :------- | | Asset management fees | 1,551 | 1,653 | 7% | | Other related revenues | 164 | 120 | -27% | | Service, distribution and other revenues | 238 | 255 | 7% | | **Total PGIM revenues** | **1,953** | **2,028** | **4%** | PGIM Assets Under Management (AUM) by Customer Type (as of June 30, 2025 vs. June 30, 2024) | Customer Type | June 30, 2024 (billions) | June 30, 2025 (billions) | | :------------------------------ | :----------------------- | :----------------------- | | Institutional customers - Third Party | 585.2 | 647.6 | | Retail customers - Third Party | 234.5 | 256.7 | | Affiliated | 508.4 | 536.4 | | **Total** | **1,328.1** | **1,440.7** | [Supplementary Assets Under Management Information - PGIM](index=13&type=section&id=PGIM%20-%20Supplementary%20Assets%20Under%20Management%20Information) This section details the activity in PGIM's Assets Under Management (AUM) for institutional, retail, and affiliated customers, showing beginning and ending AUM, additions, withdrawals, net flows, and changes in market value, with significant market value increases contributing to overall AUM growth Institutional Customers - Third Party AUM Activity (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (billions) | 2Q 2025 (billions) | | :---------------------------------------------- | :----------------- | :----------------- | | Beginning assets under management | 596.9 | 620.2 | | Net institutional additions (withdrawals) | (6.4) | 2.6 | | Change in market value | 0.9 | 24.0 | | Ending assets under management | 585.2 | 647.6 | Retail Customers - Third Party AUM Activity (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (billions) | 2Q 2025 (billions) | | :---------------------------------------------- | :----------------- | :----------------- | | Beginning assets under management | 228.1 | 240.6 | | Net retail additions (withdrawals) | (0.6) | (2.8) | | Change in market value | 6.7 | 18.6 | | Ending assets under management | 234.5 | 256.7 | Affiliated AUM Activity (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (billions) | 2Q 2025 (billions) | | :---------------------------------------------- | :----------------- | :----------------- | | Beginning assets under management | 516.4 | 524.5 | | Net affiliated additions (withdrawals) | 1.9 | 0.6 |\n| Change in market value | (3.1) | 10.9 | | Ending assets under management | 508.4 | 536.4 | [U.S. BUSINESSES](index=14&type=section&id=U.S.BUSINESSES) [Combined Statements of Operations - U.S. Businesses](index=14&type=section&id=COMBINED%20STATEMENTS%20OF%20OPERATIONS%20-%20U.S.%20BUSINESSES) This section provides a combined statement of operations for all U.S. Businesses, showing a 36% year-to-date decrease in total revenues primarily due to lower premiums, but a 3% increase in adjusted operating income before income taxes U.S. Businesses Combined Statements of Operations (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (millions) | 2Q 2025 (millions) | Year-to-date 2024 (millions) | Year-to-date 2025 (millions) | % change (YTD) | | :---------------------------------------------- | :----------------- | :----------------- | :--------------------------- | :--------------------------- | :------------- | | Premiums | 4,282 | 3,724 | 16,151 | 7,122 | -56% | | Net investment income | 2,528 | 2,760 | 5,006 | 5,460 | 9% | | Total revenues | 8,410 | 8,008 | 24,383 | 15,714 | -36% | | Insurance and annuity benefits | 5,692 | 4,750 | 18,699 | 9,313 | -50% | | Interest credited to policyholders' account balances | 643 | 754 | 1,244 | 1,478 | 19% | | Total benefits and expenses | 7,387 | 7,053 | 22,555 | 13,828 | -39% | | Adjusted operating income (loss) before income taxes | 1,023 | 955 | 1,828 | 1,886 | 3% | [Combined Statements of Operations - Retirement Strategies](index=15&type=section&id=COMBINED%20STATEMENTS%20OF%20OPERATIONS%20-%20U.S.%20BUSINESSES%20-%20RETIREMENT%20STRATEGIES) This section provides a combined overview of the Retirement Strategies segment within U.S. Businesses, detailing financial performance, sales results, account values, and market risk benefit features for both Institutional and Individual Retirement Strategies [Statements of Operations - Institutional Retirement Strategies](index=16&type=section&id=STATEMENTS%20OF%20OPERATIONS%20-%20U.S.%20BUSINESSES%20-%20RETIREMENT%20STRATEGIES%20-%20INSTITUTIONAL%20RETIREMENT%20STRATEGIES) This section focuses on the statements of operations for Institutional Retirement Strategies, showing a 58% year-to-date decrease in total revenues, primarily due to lower premiums, and an 18% decrease in adjusted operating income before income taxes Institutional Retirement Strategies Statements of Operations (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (millions) | 2Q 2025 (millions) | Year-to-date 2024 (millions) | Year-to-date 2025 (millions) | % change (YTD) | | :---------------------------------------------- | :----------------- | :----------------- | :--------------------------- | :--------------------------- | :------------- | | Premiums | 2,758 | 2,126 | 13,055 | 3,871 | -70% | | Net investment income | 1,142 | 1,248 | 2,234 | 2,491 | 12% | | Total revenues | 4,041 | 3,507 | 15,579 | 6,612 | -58% | | Adjusted operating income (loss) before income taxes | 550 | 396 | 991 | 808 | -18% | [Institutional Retirement Strategies Sales Results and Account Values](index=17&type=section&id=U.S.%20BUSINESSES%20-%20RETIREMENT%20STRATEGIES%20-%20INSTITUTIONAL%20RETIREMENT%20STRATEGIES%20SALES%20RESULTS%20AND%20ACCOUNT%20VALUES) This section details the sales results and account values for Institutional Retirement Strategies, showing positive net flows and an increase in ending total account value, net of reinsurance ceded, for Q2 2025 Institutional Retirement Strategies Account Values (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (millions) | 2Q 2025 (millions) | | :---------------------------------------------- | :----------------- | :----------------- | | Beginning total account value | 274,630 | 293,930 | | Net flows | (2,153) | 3,329 | | Ending total account value, gross | 274,128 | 307,306 | | Ending total account value, net | 264,999 | 298,407 | - International reinsurance notional amounts increased from **$102,465 million** in Q2 2024 to **$127,701 million** in Q2 2025[45](index=45&type=chunk) [Statements of Operations - Individual Retirement Strategies](index=18&type=section&id=STATEMENTS%20OF%20OPERATIONS%20-%20U.S.%20BUSINESSES%20-%20RETIREMENT%20STRATEGIES%20-%20INDIVIDUAL%20RETIREMENT%20STRATEGIES) This section presents the statements of operations for Individual Retirement Strategies, showing a 7% year-to-date increase in total revenues but a 10% decrease in adjusted operating income before income taxes for Q2 2025 Individual Retirement Strategies Statements of Operations (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (millions) | 2Q 2025 (millions) | Year-to-date 2024 (millions) | Year-to-date 2025 (millions) | % change (YTD) | | :---------------------------------------------- | :----------------- | :----------------- | :--------------------------- | :--------------------------- | :------------- | | Premiums | 11 | 17 | 39 | 37 | -5% | | Net investment income | 496 | 682 | 940 | 1,311 | 39% | | Total revenues | 1,254 | 1,321 | 2,475 | 2,659 | 7% | | Insurance and annuity benefits | 39 | 127 | 79 | 157 | 99% | | Adjusted operating income (loss) before income taxes | 439 | 326 | 879 | 790 | -10% | [Individual Retirement Strategies Sales Results and Account Values](index=19&type=section&id=U.S.%20BUSINESSES%20-%20RETIREMENT%20STRATEGIES%20-%20INDIVIDUAL%20RETIREMENT%20STRATEGIES%20SALES%20RESULTS%20AND%20ACCOUNT%20VALUES) This section provides sales results and account values for actively-sold protected investment and income products, as well as discontinued traditional variable annuities and guaranteed living benefit blocks, showing a decrease in total actively-sold product sales but an increase in their ending account value Actively-Sold Protected Investment and Income Product Sales (Q2 2025 vs. Q2 2024) | Product Type | 2Q 2024 (millions) | 2Q 2025 (millions) | Year-to-date 2024 (millions) | Year-to-date 2025 (millions) | | :---------------- | :----------------- | :----------------- | :--------------------------- | :--------------------------- | | FlexGuard Suite | 2,219 | 1,718 | 3,946 | 4,052 | | Fixed | 1,221 | 1,384 | 2,771 | 2,489 | | **Total Sales** | **3,479** | **3,135** | **6,784** | **6,608** | Ending Total Account Value, Net (Individual Retirement Strategies) (Q2 2025 vs. Q2 2024) | Product Type | 2Q 2024 (millions) | 2Q 2025 (millions) | | :---------------------------------------------- | :----------------- | :----------------- | | Actively-Sold Protected Investment and Income Solutions | 36,903 | 51,749 | | Discontinued Traditional VA and Guaranteed Living Benefit Block | 86,996 | 79,770 | [Individual Retirement Strategies Account Value Activity](index=20&type=section&id=U.S.%20BUSINESSES%20-%20RETIREMENT%20STRATEGIES%20-%20INDIVIDUAL%20RETIREMENT%20STRATEGIES%20ACCOUNT%20VALUE%20ACTIVITY) This section details the account value activity for Individual Retirement Strategies in both General Account and Separate Account, showing positive net flows in the General Account and negative net flows in the Separate Account for Q2 2025 Individual Retirement Strategies Account Values (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (millions) | 2Q 2025 (millions) | | :---------------------------------------------- | :----------------- | :----------------- | | **Account Values in General Account:** | | | | Beginning balance | 35,140 | 48,660 | | Net flows | 2,886 | 2,446 | | Ending balance, net | 36,737 | 51,384 | | **Account Values in Separate Account:** | | | | Beginning balance | 99,560 | 87,166 | | Net flows | (3,410) | (3,172) | | Ending balance, net | 87,162 | 80,135 | [Individual Retirement Strategies Market Risk Benefit Features](index=21&type=section&id=U.S.%20BUSINESSES%20-%20RETIREMENT%20STRATEGIES%20-%20INDIVIDUAL%20RETIREMENT%20STRATEGIES%20MARKET%20RISK%20BENEFIT%20FEATURES) This section provides information on market risk benefits account values and net amount at risk for Individual Retirement Strategies, categorized by risk management design and product design type, showing a decrease in total net amount at risk in Q2 2025 compared to Q1 2025 Market Risk Benefits (as of 2Q 2025) | Metric | 2Q 2024 (millions) | 3Q 2024 (millions) | 4Q 2024 (millions) | 1Q 2025 (millions) | 2Q 2025 (millions) | | :---------------------------------------------- | :----------------- | :----------------- | :----------------- | :----------------- | :----------------- | | Total Market Risk Benefits Account Values | 94,805 | 95,636 | 89,934 | 85,577 | 88,714 | | Total Market Risk Benefits Net Amount at Risk | 9,358 | 7,878 | 9,285 | 9,715 | 9,137 | [Statements of Operations - Group Insurance](index=22&type=section&id=STATEMENTS%20OF%20OPERATIONS%20-%20U.S.%20BUSINESSES%20-%20GROUP%20INSURANCE) This section details the financial performance of the Group Insurance segment, showing a 7% year-to-date increase in total revenues and a 29% increase in adjusted operating income before income taxes for Q2 2025 [Statements of Operations - Group Insurance](index=22&type=section&id=STATEMENTS%20OF%20OPERATIONS%20-%20U.S.%20BUSINESSES%20-%20GROUP%20INSURANCE) This section presents the statements of operations for Group Insurance, highlighting a 7% year-to-date increase in premiums and a 29% increase in adjusted operating income before income taxes for Q2 2025 Group Insurance Statements of Operations (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (millions) | 2Q 2025 (millions) | Year-to-date 2024 (millions) | Year-to-date 2025 (millions) | % change (YTD) | | :---------------------------------------------- | :----------------- | :----------------- | :--------------------------- | :--------------------------- | :------------- | | Premiums | 1,272 | 1,349 | 2,570 | 2,745 | 7% | | Total revenues | 1,586 | 1,687 | 3,220 | 3,435 | 7% | | Insurance and annuity benefits | 1,140 | 1,230 | 2,389 | 2,526 | 6% | | Total benefits and expenses | 1,465 | 1,562 | 3,054 | 3,221 | 5% | | Adjusted operating income (loss) before income taxes | 121 | 125 | 166 | 214 | 29% | [Group Insurance Supplementary Information](index=23&type=section&id=U.S.%20BUSINESSES%20-%20GROUP%20INSURANCE%20SUPPLEMENTARY%20INFORMATION) This section provides supplementary information for Group Insurance, including annualized new business premiums, future policy benefits, policyholders' account balances, separate account liabilities, and key ratios for Group Life and Group Disability Insurance, showing growth in new business premiums and improved benefits ratios Group Insurance Key Metrics (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (millions) | 2Q 2025 (millions) | Year-to-date 2024 (millions) | Year-to-date 2025 (millions) | | :---------------------------------------------- | :----------------- | :----------------- | :--------------------------- | :--------------------------- | | Total Annualized New Business Premiums | 46 | 77 | 424 | 477 | | Total Future Policy Benefits (end of period) | 5,550 | 5,712 | | | | Total Policyholders' Account Balances (end of period) | 4,893 | 4,564 | | | | Total Group Insurance Benefits ratio | 81.1 % | 80.9 % | 82.9 % | 81.1 % | | Total Group Insurance Administrative expense ratio | 15.1 % | 15.2 % | 15.1 % | 15.0 % | | Net face amount of policies in force (in billions) | 2,092 | 2,118 | | | [Statements of Operations - Individual Life](index=24&type=section&id=STATEMENTS%20OF%20OPERATIONS%20-%20U.S.%20BUSINESSES%20-%20INDIVIDUAL%20LIFE) This section details the financial performance of the Individual Life segment, showing a 3% year-to-date decrease in total revenues but a significant improvement in adjusted operating income before income taxes, turning positive in Q2 2025 [Statements of Operations - Individual Life](index=24&type=section&id=STATEMENTS%20OF%20OPERATIONS%20-%20U.S.%20BUSINESSES%20-%20INDIVIDUAL%20LIFE) This section presents the statements of operations for Individual Life, highlighting a 3% year-to-date decrease in total revenues but a substantial improvement in adjusted operating income before income taxes, moving from a loss to a gain in Q2 2025 Individual Life Statements of Operations (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (millions) | 2Q 2025 (millions) | Year-to-date 2024 (millions) | Year-to-date 2025 (millions) | % change (YTD) | | :---------------------------------------------- | :----------------- | :----------------- | :--------------------------- | :--------------------------- | :------------- | | Premiums | 241 | 232 | 487 | 469 | -4% | | Policy charges and fee income | 510 | 531 | 1,013 | 1,072 | 6% | | Net investment income | 762 | 697 | 1,568 | 1,391 | -11% | | Total revenues | 1,529 | 1,493 | 3,109 | 3,008 | -3% | | Insurance and annuity benefits | 795 | 686 | 1,655 | 1,486 | -10% | | Adjusted operating income (loss) before income taxes | (87) | 108 | (208) | 74 | 136% | [Individual Life Supplementary Information](index=25&type=section&id=U.S.%20BUSINESSES%20-%20INDIVIDUAL%20LIFE%20SUPPLEMENTARY%20INFORMATION) This section provides supplementary information for Individual Life, including annualized new business premiums by product type and distribution channel, account value activity for policyholders' account balances and separate account liabilities, and net face amount in force, showing growth in new business premiums and separate account liabilities Individual Life Key Metrics (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (millions) | 2Q 2025 (millions) | Year-to-date 2024 (millions) | Year-to-date 2025 (millions) | | :---------------------------------------------- | :----------------- | :----------------- | :--------------------------- | :--------------------------- | | Total Annualized New Business Premiums | 203 | 223 | 370 | 433 | | Total Policyholders' Account Balances (Ending balance, net) | 28,853 | 25,319 | | | | Total Separate Account Liabilities (Ending balance) | 51,385 | 57,995 | | | | Total Net Face Amount In Force (in billions) | 522 | 516 | | | [INTERNATIONAL BUSINESSES](index=26&type=section&id=INTERNATIONAL%20BUSINESSES) [Statements of Operations - International Businesses](index=26&type=section&id=STATEMENTS%20OF%20OPERATIONS%20-%20INTERNATIONAL%20BUSINESSES) This section presents the statements of operations for International Businesses, showing a 1% year-to-date decrease in total revenues but a 1% increase in adjusted operating income before income taxes for Q2 2025 International Businesses Statements of Operations (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (millions) | 2Q 2025 (millions) | Year-to-date 2024 (millions) | Year-to-date 2025 (millions) | % change (YTD) | | :---------------------------------------------- | :----------------- | :----------------- | :--------------------------- | :--------------------------- | :------------- | | Premiums | 3,002 | 2,709 | 6,141 | 5,766 | -6% | | Net investment income | 1,390 | 1,451 | 2,802 | 2,920 | 4% | | Total revenues | 4,512 | 4,399 | 9,225 | 9,137 | -1% | | Insurance and annuity benefits | 2,452 | 2,446 | 5,224 | 5,235 | —% | | Adjusted operating income (loss) before income taxes | 702 | 761 | 1,598 | 1,609 | 1% | [Sales Results and Supplementary Information - International Businesses](index=27&type=section&id=INTERNATIONAL%20BUSINESSES%20-%20SALES%20RESULTS%20AND%20SUPPLEMENTARY%20INFORMATION) This section provides sales results and supplementary information for International Businesses, including net premiums, annualized new business premiums by region and distribution channel, face amount of individual policies in force, policyholder account balances, and persistency ratios, showing growth in annualized new business premiums and distribution representatives International Businesses Sales Results (YTD 2025 vs. YTD 2024, Actual Exchange Rate) | Metric | Year-to-date 2024 (millions) | Year-to-date 2025 (millions) | | :---------------------------------------------- | :--------------------------- | :--------------------------- | | Net premiums, policy charges and fee income | 6,301 | 5,946 | | Annualized new business premiums | 1,036 | 1,117 | International Businesses Key Metrics (as of 2Q 2025, Constant Exchange Rate) | Metric | 2Q 2024 (billions) | 2Q 2025 (billions) | | :---------------------------------------------- | :----------------- | :----------------- | | Face amount of individual policies in force | 587 | 578 | | Policyholder Account Balances (in millions) | 52,390 | 51,945 | | 13 months persistency | 91.9 % | 92.8 % | | 25 months persistency | 84.5 % | 83.0 % | International Businesses Distribution Representatives (as of 2Q 2025) | Metric | 2Q 2024 | 2Q 2025 | | :---------------- | :------ | :------ | | Total Life Planners | 5,836 | 6,161 | | Life Consultants | 6,724 | 6,822 | [CORPORATE AND OTHER](index=29&type=section&id=CORPORATE%20AND%20OTHER) [Statements of Operations - Corporate and Other](index=29&type=section&id=STATEMENTS%20OF%20OPERATIONS%20-%20CORPORATE%20AND%20OTHER) This section details the statements of operations for the Corporate and Other segment, showing a significant increase in total revenues year-to-date and a 14% improvement in adjusted operating income (loss) before income taxes for Q2 2025 Corporate and Other Statements of Operations (Q2 2025 vs. Q2 2024) | Metric | 2Q 2024 (millions) | 2Q 2025 (millions) | Year-to-date 2024 (millions) | Year-to-date 2025 (millions) | % change (YTD) | | :---------------------------------------------- | :----------------- | :----------------- | :--------------------------- | :--------------------------- | :------------- | | Net investment income | 286 | 330 | 559 | 660 | 18% | | Total revenues | (36) | 56 | (6) | 39 | 750% | | Interest expense | 174 | 215 | 347 | 422 | 22% | | Operating expenses | 133 | 107 | 438 | 262 | -40% | | Total benefits and expenses | 335 | 336 | 800 | 734 | -8% | | Adjusted operating income (loss) before income taxes | (371) | (280) | (806) | (695) | 14% | [INVESTMENT PORTFOLIO](index=30&type=section&id=INVESTMENT%20PORTFOLIO) [Investment Portfolio Composition](index=30&type=section&id=Investment%20Portfolio%20Composition) This section provides a detailed breakdown of the company's investment portfolio composition, including fixed maturities, equity securities, commercial mortgage and other loans, and policy loans, categorized by Closed Block Division, Funds Withheld, and PFI Excluding these, showing a stable allocation with a high proportion of high-quality securities Total Investment Portfolio Composition (as of June 30, 2025) | Asset Type | Total Portfolio (millions) | % of Total | | :---------------------------------------------- | :------------------------- | :--------- | | Public, available-for-sale, at fair value | 238,001 | 54.9 % | | Private, available-for-sale, at fair value | 89,685 | 19.6 % | | Commercial mortgage and other loans, at book value | 62,503 | 14.0 % | | Policy loans, at outstanding balance | 9,946 | 1.7 % | | **Subtotal (excluding other entities)** | **455,748** | **100.0 %**| | **Total investments** | **460,581** | | Fixed Maturities by Credit Quality (PFI Excluding Closed Block Division and Funds Withheld, as of June 30, 2025) | Credit Quality (NAIC Rating) | Public Fixed Maturities (% of Total) | Private Fixed Maturities (% of Total) | | :--------------------------- | :----------------------------------- | :------------------------------------ | | 1 (Highest Quality) | 77.0 % | 25.9 % | | 2 (High Quality) | 19.6 % | 58.9 % | | **Subtotal - High or Highest Quality Securities** | **96.6 %** | **84.8 %** | [Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations and Funds Withheld](index=31&type=section&id=Investment%20Portfolio%20Composition%20-%20Japanese%20Insurance%20Operations%20and%20Excluding%20Japanese%20Insurance%20Operations%20and%20Funds%20Withheld) This section presents the investment portfolio composition specifically for Japanese Insurance Operations and separately for the portfolio excluding Japanese Insurance Operations and Funds Withheld, detailing asset classes and their respective proportions, highlighting differences in asset allocation between these segments Investment Portfolio Composition - Japanese Insurance Operations (as of June 30, 2025) | Asset Type | Amount (millions) | % of Total | | :---------------------------------------------- | :---------------- | :--------- | | Public, available-for-sale, at fair value | 104,492 | 65.3 % | | Private, available-for-sale, at fair value | 22,152 | 13.8 % | | Commercial mortgage and other loans, at book value | 15,589 | 9.7 % | | **Total** | **160,099** | **100.0 %**| Investment Portfolio Composition - Excluding Japanese Insurance Operations and Funds Withheld (as of June 30, 2025) | Asset Type | Amount (millions) | % of Total | | :---------------------------------------------- | :---------------- | :--------- | | Public, available-for-sale, at fair value | 110,073 | 47.7 % | | Private, available-for-sale, at fair value | 54,513 | 23.6 % | | Commercial mortgage and other loans, at book value | 39,023 | 16.9 % | | **Total** | **230,862** | **100.0 %**| [Investment Results](index=32&type=section&id=Investment%20Results) This section provides a comprehensive overview of investment results for the General Account, including investment income, yield, and realized gains (losses) across various asset classes, as well as results from other investments and Funds Withheld, showing an increase in total investment income but significant realized losses year-to-date 2025 General Account Investment Results (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2024 Investment Income (millions) | 2025 Investment Income (millions) | 2024 Realized Gains (Losses) (millions) | 2025 Realized Gains (Losses) (millions) | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | | Fixed maturities | 6,250 | 6,719 | (279) | (38) | | Commercial mortgage and other loans | 1,082 | 1,197 | (95) | (114) | | Gross investment income before investment expenses | 8,048 | 8,573 | (374) | (152) | | Other investments | 488 | 546 | 153 | (1,429) | | Investment results of Funds Withheld | 595 | 705 | 40 | (591) | | **Total Investment Income** | **8,338** | **9,119** | **(175)** | **(2,174)** | General Account Investment Yields (Six Months Ended June 30, 2025 vs. 2024) | Asset Type | 2024 Yield | 2025 Yield | | :---------------------------------------------- | :--------- | :--------- | | Fixed maturities | 4.20 % | 4.40 % | | Commercial mortgage and other loans | 4.27 % | 4.46 % | | Short-term investments and cash equivalents | 6.25 % | 4.45 % | [Investment Results - Japanese Insurance Operations](index=33&type=section&id=Investment%20Results%20-%20Japanese%20Insurance%20Operations) This section details the investment results specifically for Japanese Insurance Operations, including investment income, yield, and realized gains (losses) for various asset classes, showing an increase in total investment income but a shift from realized gains to losses year-to-date 2025 Japanese Insurance Operations Investment Results (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2024 Investment Income (millions) | 2025 Investment Income (millions) | 2024 Realized Gains (Losses) (millions) | 2025 Realized Gains (Losses) (millions) | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | | Fixed maturities | 2,120 | 2,202 | 170 | 84 | | Gross investment income before investment expenses | 2,578 | 2,660 | 156 | 70 | | Other investments | 226 | 261 | (557) | (138) | | **Total** | **2,648** | **2,750** | **(401)** | **(68)** | Japanese Insurance Operations Investment Yields (Six Months Ended June 30, 2025 vs. 2024) | Asset Type | 2024 Yield | 2025 Yield | | :---------------------------------------------- | :--------- | :--------- | | Fixed maturities | 3.07 % | 3.17 % | | Commercial mortgage and other loans | 3.80 % | 3.78 % | | Short-term investments and cash equivalents | 7.54 % | 4.14 % | [Investment Results - Excluding Funds Withheld and Japanese Insurance Operations](index=34&type=section&id=INVESTMENT%20RESULTS%20-%20EXCLUDING%20FUNDS%20WITHHELD%20AND%20JAPANESE%20INSURANCE%20OPERATIONS) This section presents investment results for the portfolio excluding Funds Withheld and Japanese Insurance Operations, showing an increase in total investment income but significant realized losses year-to-date 2025 Investment Results - Excluding Funds Withheld and Japanese Insurance Operations (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2024 Investment Income (millions) | 2025 Investment Income (millions) | 2024 Realized Gains (Losses) (millions) | 2025 Realized Gains (Losses) (millions) | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | | Fixed maturities | 4,130 | 4,517 | (449) | (122) | | Commercial mortgage and other loans | 757 | 901 | (81) | (100) | | Gross investment income before investment expenses | 5,470 | 5,913 | (530) | (222) | | Other investments | 262 | 285 | 710 | (1,291) | | **Total** | **5,355** | **5,793** | **180** | **(1,513)** | Investment Yields - Excluding Funds Withheld and Japanese Insurance Operations (Six Months Ended June 30, 2025 vs. 2024) | Asset Type | 2024 Yield | 2025 Yield | | :---------------------------------------------- | :--------- | :--------- | | Fixed maturities | 5.20 % | 5.46 % | | Commercial mortgage and other loans | 4.51 % | 4.74 % | | Short-term investments and cash equivalents | 6.12 % | 4.54 % | [ADJUSTED OPERATING INCOME IMPACT FROM ANNUAL ASSUMPTION UPDATES AND OTHER REFINEMENTS](index=35&type=section&id=ADJUSTED%20OPERATING%20INCOME%20IMPACT%20FROM%20ANNUAL%20ASSUMPTION%20UPDATES%20AND%20OTHER%20REFINEMENTS) [Adjusted Operating Income Impact from Annual Assumption Updates and Other Refinements](index=35&type=section&id=ADJUSTED%20OPERATING%20INCOME%20IMPACT%20FROM%20ANNUAL%20ASSUMPTION%20UPDATES%20AND%20OTHER%20REFINEMENTS) This section quantifies the impact of annual assumption updates and other refinements on adjusted operating income before income taxes across different business segments for the three months ended June 30, 2025, and June 30, 2024, showing a net negative impact in Q2 2025 Adjusted Operating Income (Loss) Before Income Taxes Impact from Updates (Three Months Ended June 30, 2025) | Segment | Impact (millions) | | :----------------------------------------------- | :---------------- | | Retirement Strategies - Institutional Retirement Strategies | (32) | | Retirement Strategies - Individual Retirement Strategies | (81) | | Group Insurance | 11 | | Individual Life | 58 | | International Businesses | (2) | | Corporate and Other | — | | **Total** | **(46)** | Adjusted Operating Income (Loss) Before Income Taxes Impact from Updates (Three Months Ended June 30, 2024) | Segment | Impact (millions) | | :----------------------------------------------- | :---------------- | | Retirement Strategies - Institutional Retirement Strategies | 132 | | Retirement Strategies - Individual Retirement Strategies | 8 | | Group Insurance | 25 | | Individual Life | (98) | | International Businesses | (55) | | Corporate and Other | (6) | | **Total** | **6** | [COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES](index=36&type=section&id=COMBINED%20STATEMENTS%20OF%20OPERATIONS%20-%20AOI%20TO%20U.S.%20GAAP%20RECONCILIATION%20OF%20REVENUES%20AND%20BENEFITS%20AND%20EXPENSES) [Combined Statements of Operations - AOI to U.S. GAAP Reconciliation of Revenues and Benefits and Expenses](index=36&type=section&id=COMBINED%20STATEMENTS%20OF%20OPERATIONS%20-%20AOI%20TO%20U.S.%20GAAP%20RECONCILIATION%20OF%20REVENUES%20AND%20BENEFITS%20AND%20EXPENSES) This section provides a detailed reconciliation of revenues and benefits and expenses from an Adjusted Operating Income (AOI) basis to U.S. GAAP for various periods, breaking down the reconciling items such as realized investment gains/losses, changes in market risk benefits, and impacts from divested businesses, illustrating the differences between management's operating view and statutory reporting Reconciliation of Total Revenues (Six Months Ended June 30, 2025) | Metric | Adjusted Operating Income basis (millions) | Reconciling Items (millions) | U.S. GAAP (millions) | | :---------------------------------------------- | :--------------------------------------- | :--------------------------- | :------------------- | | Total revenues | 26,918 | 278 | 27,196 | Reconciliation of Total Benefits and Expenses (Six Months Ended June 30, 2025) | Metric | Adjusted Operating Income basis (millions) | Reconciling Items (millions) | U.S. GAAP (millions) | | :---------------------------------------------- | :--------------------------------------- | :--------------------------- | :------------------- | | Total benefits and expenses | 23,733 | 1,803 | 25,536 | Reconciliation of Total Revenues (Three Months Ended June 30, 2025) | Metric | Adjusted Operating Income basis (millions) | Reconciling Items (millions) | U.S. GAAP (millions) | | :---------------------------------------------- | :--------------------------------------- | :--------------------------- | :------------------- | | Total revenues | 13,506 | 220 | 13,726 | [KEY DEFINITIONS AND FORMULAS](index=40&type=section&id=KEY%20DEFINITIONS%20AND%20FORMULAS) [Key Definitions and Formulas](index=40&type=section&id=KEY%20DEFINITIONS%20AND%20FORMULAS) This section provides comprehensive definitions for key financial terms and formulas used throughout the report, including Adjusted operating income, After-tax adjusted operating income, Annualized New Business Premiums, Assets Under Administration, Assets Under Management, Book value per share of Common Stock, and various other operational and financial metrics, crucial for understanding the company's financial reporting - Adjusted operating income is a non-GAAP measure used to evaluate segment performance and allocate resources, excluding items like realized investment gains/losses, changes in market risk benefits, and results of divested businesses to highlight underlying profitability trends[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - Assets Under Management (AUM) represents the fair market value of assets directly managed by Prudential or its joint ventures, or assets invested in company products managed by third-party sub-advisors, including derivatives used in portfolio management strategies[120](index=120&type=chunk) - Adjusted book value per common share is a non-GAAP measure that augments the understanding of financial position by providing a measure of net worth primarily attributable to business operations, separate from the portion affected by capital and currency market conditions[121](index=121&type=chunk) [RATINGS AND INVESTOR INFORMATION](index=43&type=section&id=RATINGS%20AND%20INVESTOR%20INFORMATION) [Ratings and Investor Information](index=43&type=section&id=RATINGS%20AND%20INVESTOR%20INFORMATION) This section provides financial strength ratings from major rating agencies for Prudential's insurance entities and credit ratings for Prudential Financial, Inc. and its subsidiaries as of July 30, 2025, along with general investor contact information Financial Strength Ratings (as of July 30, 2025) | Entity | A.M. Best | Standard & Poor's | Moody's | Fitch Ratings | | :---------------------------------------------- | :-------- | :---------------- | :------ | :------------ | | The Prudential Insurance Company of America | A+ | AA- | Aa3 | AA | | PRUCO Life Insurance Company | A+ | AA- | Aa3 | AA | | The Prudential Life Insurance Co., Ltd. (Prudential of Japan) | NR | A+ | NR | NR | Credit Ratings for Prudential Financial, Inc. (as of July 30, 2025) | Debt Type | A.M. Best | Standard & Poor's | Moody's | Fitch Ratings | | :------------------------ | :-------- | :---------------- | :------ | :------------ | | Short-Term Borrowings | AMB-1 | A-1 | P-2 | F1 | | Long-Term Senior Debt | a- | A | A3 | A | | Junior Subordinated Long-Term Debt | bbb | BBB+ | Baa1 | BBB | - Prudential Financial, Inc. Common Stock is traded on the New York Stock Exchange under the symbol PRU. More information is available at investor.prudential.com[145](index=145&type=chunk)

Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - The industry and market are increasingly focusing on multi - asset ETFs as an innovative product offering one - stop asset allocation solutions. The report explores the development of US multi - asset ETFs to provide insights for domestic market innovation [2][11]. - US multi - asset ETFs have shown significant growth in recent years, with distinct characteristics such as strong head - effects in scale, rapid development of actively managed products, and extensive application of FOF - type products [2][20][31]. - The development of US multi - asset ETFs offers important lessons for the domestic market, including deepening multi - asset index development, diversifying allocation strategies, and broadening underlying asset investment tools [5]. 3. Summary by Directory 3.1 Two Action Plans Mentioned, Multi - asset ETFs Are Approaching - The "Public Offering Plan" emphasizes increasing the creation of asset - allocation products to meet the needs of investors with different risk preferences and promote the coordinated development of equity and fixed - income investments [8]. - The "Index Plan" proposes researching and launching innovative index products such as multi - asset ETFs and expanding the underlying asset categories of ETFs. Recent releases of multi - asset indices indicate growing market attention [10][11]. 3.2 Analysis of the Development History and Current Situation of US Multi - asset ETFs - In 2005, BlackRock issued the world's first multi - asset ETF in Canada. In 2006, Invesco launched the first US multi - asset ETF. After the 2008 financial crisis, multi - asset ETFs evolved rapidly [13][14]. - As of March 31, 2025, there are 181 multi - asset ETFs in the US market, with a total scale of $36 billion, ranking first globally. However, their scale accounts for only 0.35% of all US ETFs, indicating significant growth potential [18]. - The top three fund managers in terms of management scale are BlackRock, Pacer Advisors, and First Trust Portfolios, with a combined scale ratio of 45.35%. The top ten multi - asset ETFs in terms of fund scale account for 51.26% of the total scale [22][25]. - Actively managed multi - asset ETFs have developed rapidly. As of March 31, 2025, 146 out of 181 multi - asset ETFs are actively managed, accounting for 80.66%. Their issuance has increased explosively since 2021 [31]. - FOF - type products are widely used in US multi - asset ETFs. As of March 31, 2025, 73 out of 181 multi - asset ETFs are marked as FOF - type, accounting for nearly 40%, with a fund scale of $13.041 billion, about 36% of the total [34]. - The expense ratios of US multi - asset ETFs vary significantly. The average expense ratio of all 181 multi - asset ETFs is 0.80%, with actively managed and passively managed products having average expense ratios of 0.83% and 0.69% respectively. The expense ratio has generally remained low since 2016 [5][40]. 3.3 Exploration of the Strategy Classification of US Multi - asset ETFs - **Core Allocation Type**: This is the most common strategy type, further divided into target - risk, macro - strategy, and subjective - allocation subtypes. Target - risk type aims to meet pre - designed risk metrics, with 28 products and a scale of $8.176 billion. Macro - strategy type adjusts asset allocation based on macro - economic analysis, with 12 products and a scale of $0.937 billion. Subjective - allocation type gives investment managers high freedom, with 57 products and a scale of $10.402 billion [44][47][51]. - **Trend - Following Type**: These ETFs use momentum factors or trend - following models for asset allocation. As of March 31, 2025, there are 26 products with a scale of $7.193 billion, accounting for about 20% of the total [54][55]. - **Target - Dividend Type**: These ETFs focus on interest (dividend) income, with 22 products and a scale of $6.384 billion. The average historical dividend rate of 17 products issued before 2024 is 7.20%, much higher than other types [58][63]. - **Option - Strategy Type**: These ETFs add option - based derivatives to underlying assets to change the risk - return characteristics. As of March 31, 2025, there are 36 products with a scale of $2.907 billion, accounting for 8.08% of the total [63][64]. 3.4 Suggestions and Insights - **Investor Suggestions**: Different types of investors can choose corresponding multi - asset ETFs. For example, risk - sensitive investors can choose target - risk type; policy - sensitive investors can choose macro - strategy type; investors seeking stable cash flow can choose target - dividend type; those preferring quantitative strategies can choose trend - following type; and investors interested in alternative strategies can choose option - strategy type [68][69][70]. - **Insights for the Domestic Market**: The domestic market should prioritize using existing multi - asset indices as tracking targets, deepen the development of multi - asset indices, focus on stable strategies and diversify allocation strategies, and broaden underlying asset investment tools to promote the development of multi - asset ETFs [72][73][75].

Group 1 - Prudential Financial is expected to report earnings on July 30, 2025, with revenues projected at approximately $13.4 billion, reflecting a 3% year-over-year decline, and earnings per share estimated at $3.23, indicating a slight decrease compared to the previous year [2] - The U.S. insurance operations are anticipated to remain a significant contributor to earnings, with improved underwriting and reduced expenses in Q1, although some areas are experiencing weaker investment and fee-related income [2] - The global investment management division is likely to perform well due to an increase in assets under management driven by equity market appreciation, net inflows, and enhanced investment performance [3] Group 2 - The current market capitalization of Prudential Financial is $37 billion, with total revenue for the past twelve months at $61 billion and net income at $2.3 billion [4] - Historical data shows that Prudential Financial has recorded 20 earnings data points over the past five years, with 9 positive and 11 negative one-day returns, resulting in a 45% occurrence of positive returns [7] - The median of the positive one-day returns is 2.5%, while the median of the negative returns is -2.2% [7] Group 3 - There is a strategy to understand the correlation between short-term and medium-term returns post-earnings, which can help in executing trades based on the strongest correlations observed [8] - The performance of peers can influence the post-earnings stock reaction, with historical data indicating that price adjustments may begin before earnings are disclosed [9] - The Trefis High Quality portfolio has outperformed the S&P 500, delivering returns exceeding 91% since its inception, providing an alternative for investors seeking less volatility [5][10]

Core Viewpoint - Perseus Mining Limited reported strong operational performance for the quarter ending June 30, 2024, with significant increases in cash and bullion balance, reaching US$827 million, alongside a robust production outlook despite rising costs in the gold sector [2][4]. Financial Performance - Gold recovered in the June 2025 quarter was 121,237 ounces, with total gold production for the financial year at 496,551 ounces [2][4]. - The average sales price for gold in June 2025 was US$2,977 per ounce, leading to a notional cash flow of US$189 million for the quarter [2][4]. - The All-In Site Cost (AISC) for the June 2025 quarter was US$1,417 per ounce, with an average cash margin of US$1,560 per ounce of gold produced [4]. Production Guidance - For FY26, Perseus has set gold production guidance between 400,000 and 440,000 ounces, with AISC expected to range from US$1,460 to US$1,620 per ounce [5][4]. - The company anticipates an average annual gold production of 515,000 to 535,000 ounces over the next five years, with AISC projected at US$1,400 to US$1,500 per ounce [4]. Project Developments - A Final Investment Decision (FID) was made to develop the Nyanzaga Gold Project, with site works on schedule for first gold production targeted in January 2027 [4]. - Outstanding infill drilling results at Nyanzaga are expected to lead to a Mineral Resource and Ore Reserve upgrade in Q3 FY26, potentially extending the mine life [4]. Cash Position and Share Buyback - Perseus holds US$827 million in cash and bullion, along with US$118 million in liquid listed securities, despite ongoing development costs for Nyanzaga and other financial obligations [4]. - The company is executing a A$100 million share buyback program, which is approximately 73% complete, having purchased and cancelled 22,995,853 shares [4]. Industry Context - The gold sector is experiencing rising costs due to increased royalties and indirect charges from host governments, as well as higher operational costs related to wages and freight [7][8]. - Specific challenges include anticipated power supply interruptions at the Yaouré Gold Mine, which may increase operational costs due to reliance on standby generators [8].

Core Viewpoint - Perseus Mining Limited reported strong operational performance for the quarter ending June 30, 2024, with significant increases in cash and bullion balance, reaching US$827 million, alongside a robust production outlook for the next five years [2][3]. Group Performance Summary - Gold recovered in the June 2025 quarter was 121,237 ounces, with a total of 496,551 ounces for the financial year 2025 [2]. - The average gold sales price increased to US$2,977 per ounce, contributing to a notional cash flow of US$189 million for the quarter [2]. - The All-In Site Cost (AISC) for the June quarter was US$1,417 per ounce, with a production cost of US$1,038 per ounce [2]. Future Production Guidance - For the financial year 2026, Perseus projects gold production between 400,000 and 440,000 ounces, with AISC guidance of US$1,460 to US$1,620 per ounce [3]. - The company anticipates an average annual gold production of 515,000 to 535,000 ounces over the next five years [2]. Nyanzaga Gold Project Development - A Final Investment Decision (FID) was made to develop the Nyanzaga Gold Project, with site works on schedule for first gold production targeted in January 2027 [2]. - Infill drilling results at Nyanzaga are expected to lead to a Mineral Resource and Ore Reserve upgrade in Q3 FY26, potentially extending the mine life [2]. Financial Position - Perseus holds US$827 million in cash and bullion, along with US$118 million in liquid listed securities, and has zero debt with an undrawn debt capacity of US$300 million [2]. - The company is executing a share buy-back program, with approximately 73% completed, having purchased and cancelled 22,995,853 shares [2]. Cost Trends in the Gold Sector - The global gold sector is experiencing rising costs, influenced by increased royalties and indirect charges from host governments, as well as higher operational costs such as wages and freight [6][7]. - Specific site-related factors, such as power supply interruptions at the Yaouré Gold Mine, are expected to impact operational costs in FY26 [7].

Wall Street analysts expect Prudential (PRU) to post quarterly earnings of $3.21 per share in its upcoming report, which indicates a year-over-year decline of 5.3%. Revenues are expected to be $13.48 billion, down 2.6% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone a downward revision of 0.6% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Ahead of a ...

Core Viewpoint - Prudential Financial Inc. (PRU) is anticipated to report a decline in both revenue and earnings for the second quarter of 2025, with revenues expected to be $13.53 billion, reflecting a 2.2% decrease year-over-year, and earnings per share projected at $3.21, indicating a 5.3% decline from the previous year [1][2]. Financial Performance Expectations - The Zacks Consensus Estimate for PRU's second-quarter revenues is $13.53 billion, which is a 2.2% drop from the year-ago figure [1]. - The consensus estimate for earnings per share is $3.21, suggesting a year-over-year decrease of 5.3% [2]. - The earnings estimate has decreased by 7.2% in the past week [2]. Earnings Prediction Model - The earnings prediction model indicates that PRU is not likely to beat earnings expectations this quarter, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [3][4]. Factors Influencing Q2 Results - The U.S. business is expected to benefit from higher net investment spread results, favorable reserve experience, improved underwriting results, and lower expenses across various segments, although these positives may be offset by higher overall expenses and lower net fee income [5]. - International operations are likely to face challenges from lower net investment spread results, adverse foreign currency exchange impacts, and reduced earnings from joint ventures [6]. Segment Performance Insights - The Individual Retirement Strategies business is projected to see benefits from higher net investment spread results and increased income from non-coupon investments, though this may be partially countered by lower short-term interest rates [7]. - PGIM is expected to experience earnings growth driven by solid asset management fee growth and favorable investment performance, with assets under management benefiting from market appreciation and strong inflows [9]. Investment Income and Expenses - Net investment income is anticipated to rise by 8.2% to $4.5 billion, supported by growth in indexed variable annuities and higher income from non-coupon investments [8]. - Total expenses are expected to reach $12 billion, influenced by higher policyholders' benefits and amortization of deferred policy acquisition costs [10].

Prudential (PRU) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. O ...