2024 Annual Report Annual Report

PRUDENTIAL FINANCIAL, INC.

2024 Annual Report

MESSAGE FROM THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER

Dear Fellow Shareholders,

2024 was a year of significant progress for Prudential. We gained greater momentum across our businesses and took further action to meet the growing needs of our customers and become a higher-growth and more capital-efficient company. We continued to deliver on our promises to our customers and shareholders by developing new solutions to address a broader set of financial needs and by maintaining a disciplined approach to allocating capital and investing in our businesses.

As we look ahead, Prudential is operating from a position of strength to continue to grow as a global leader in expanding access to investing, insurance, and retirement security. Our progress is being broadly recognized. For 2024, Prudential ranked as the No. 1 company in the life and health insurance sector inFortunemagazine's annual list of World's Most Admired CompaniesTM.

"As we celebrate

As we celebrate Prudential's 150th anniversary, we have entered 2025 with conviction in our strategy and great confidence in the new leadership team to guide the next chapter of growth.

Driving momentum across our businesses

Prudential's businesses are leveraging major societal changes, including aging populations, and evolving retirement systems across the world to further position the company for sustainable, long-term growth. Our Retirement Strategies businesses are well-positioned to capitalize on this unprecedented global retirement opportunity and help our customers live better lives, longer.

Prudential's 150th anniversary, we are operating from a position of strength to continue to grow as a global leader in expanding access to investing, insurance, and retirement security."

We continue to solidify our market leadership in pension risk transfer. In 2024 we safeguarded $26 billion of pension liabilities globally. As of year-end, Prudential has closed seven of the 10 largest U.S. pension risk transfer deals since the inception of the market. In Japan, where life insurance has traditionally comprised most of our business, we have diversified our product suite to meet our customers' growing demand for retirement and savings solutions. In Brazil and otherinternational markets, we focused on new and innovative protection solutions and expanded our distribution channels to reach more customers.

The momentum in our businesses is supported by our expanding capabilities within PGIM, our global asset manager. PGIM's asset origination capabilities, investment management expertise, and access to institutional and other sources of third-party capital are a competitive advantage in the market, allowing us to deliver differentiated solutions and greater value. PGIM is also benefiting from global demand for private and alternative credit solutions. Our capabilities, expertise and performance helped support a 37% increase in year-over-year private credit originations.

Shifting our business mix

We continued to shift our business mix by modifying our suite of products within our businesses and using third-party capital, both of which have improved our capital efficiency.

In addition, we built upon the significant progress we have made over the past several years to reduce market risk from our business, completing two guaranteed universal life reinsurance transactions that decreased our cumulative exposure to this product by approximately 60%.

We also continued to expand our global asset and liability origination capabilities through Prismic, our reinsurance partnership with Warburg Pincus and other investors. In 2024 we reached an agreement for our second Prismictransaction to reinsure approximately $7 billion of our whole life block of business in Japan.

Operating with financial strengthPrudential's disciplined approach to financial management has successfully guided the company through financial and economic challenges over the last 150 years and remains central to our strategy. Our AA financial strength rating is underpinned by a robust, well-diversified balance sheet and a disciplined approach to asset-liability management. We balance continued investments in our businesses with meaningful returns to shareholders, which included nearly $3 billion in dividends and share buybacks in 2024. Our Board of Directors also authorized up to $1 billion in share buybacks for 2025 and a 4% dividend increase for the first quarter of 2025, representing our 17th consecutive annual dividend increase.

Strengthening communities and forgingpaths to financial security

Our commitment to the communities in which we live and work - including our hometown of Newark, New Jersey - is closely aligned with our mission to help people achieve financial security. In 2024 we provided more than $40 million in grants and nearly $13 million in corporate contributions to support nonprofit organizations creating the next generation of products and services to help more people around the world build and protect their wealth. In addition, through our $1 billion impact investing portfolio, we are investing in solutions to further accelerate financial literacy and economic mobility.

Cultivating our talent and culturePrudential's success is grounded in the talent of our employees. We offer a workplace that provides opportunities for career advancement, flexibility, and a mindset of continuous learning. We foster a respectful, inclusive culture where our employees feel empowered to share new ideas and perspectives that in tuhelp us serve our clients and customers' needs.

As we continually grow and expand our capabilities to better serve our customers, clients, and all stakeholders, we remain steadfast in our commitment to being a trusted and ethical leader in the financial services industry. For the 10th consecutive year, Prudential was named one of the World's Most Ethical Companies in 2024 by the Ethisphere Institute®, a global leader in defining and advancing standards of ethical business practices.

Looking ahead with confidence

While our strategy has and will continue to evolve over time, we remain guided by the principles that have defined Prudential for the past 150 years: building upon our financial strength, embracing innovation, investing in growth, remaining committed to solving the financial challenges of our customers across the world, and always delivering on our promises.

In December, we announced that Andy Sullivan will become Prudential's next CEO, effective March 31, 2025. Andy is an exceptional leader who deeply understands our businesses, customers, employees, and shareholders. The Board and I have every confidence that

he is the right person to build upon Prudential's long-term strength and advance our growth.

In my role as executive chairman, I will support Andy and his leadership team during the transition and as an advisor to him and the Board.

It has been a privilege to lead Prudential for the past six years as we navigated a global pandemic and challenged ourselves to transform our businesses for the future. I offer my profound thanks to our employees around the world for their commitment to our customers and for all that we have accomplished together.

Today, and into the future, we remain strongly positioned to grow and succeed as a global leader in expanding access to investing, insurance, and retirement security.

Thank you for your continued interest in our company.

Chairman and CEO, Prudential Financial, Inc.

PRUDENTIAL OFFICERS AND DIRECTORS(as of March 27, 2025)

EXECUTIVE OFFICERS

Charles F. LowreyChairman and ChiefExecutive Officer

Robert M. FalzonVice Chairman

Lucien A. Alziari

Executive Vice President andChief Human Resources Officer

Scott E. Case

Executive Vice President and Head of Global Technology and Operations

Caroline A. FeeneyExecutive Vice President and Head of U.S. Businesses

Yanela C. Frias

Executive Vice Presidentand Chief Financial Officer

Ann M. KapplerExecutive Vice President, General Counsel andChief Compliance Officer

Andrew F. SullivanExecutive Vice President, Head of International Businesses and Global Investment Management

Timothy L. SchmidtSenior Vice Presidentand Chief Investment Officer

BOARD OF DIRECTORS

Gilbert F. Casellas

Former Chairman, OMNITRU

Carmine Di Sibio

Former Global Chairman andChief Executive Officer, EY

SHAREHOLDER INFORMATION

Corporate HeadquartersPrudential Financial, Inc.

751 Broad Street, Newark, NJ 07102 973-802-6000

Stock Exchange Listing

The Common Stock of Prudential Financial, Inc. is tradedon the New York Stock Exchange under the symbol "PRU."

Shareholder Services at Computershare

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For more information and to sign up for electronic delivery, contact Computershare directly:

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By mail: Computershare Trust Company, N.A. P.O. Box 43078, Providence, RI 02940-3078

Robert M. FalzonVice Chairman, Prudential Financial, Inc.

Martina T. Hund-MejeanFormer Chief Financial Officer,Mastercard Worldwide

Wendy E. Jones

Former Senior Vice President, Global Operations, eBay, Inc.

Charles F. LowreyChairman and ChiefExecutive Officer,Prudential Financial, Inc.

Kathleen A. Murphy

Former President of Personal Investing, Fidelity Investments

Sandra Pianalto

Former President andChief Executive Officer,Federal Reserve Bank of Cleveland

Christine A. PoonFormer Dean and

John W. Berry, Sr. Chair in Business at The Fisher College of Business at The Ohio State University

Douglas A. ScovannerFounder and Managing Member, Comprehensive Financial Strategies, LLC

Michael A. TodmanFormer Vice Chairman, Whirlpool Corporation

Direct Deposit Enrollment for Registered Shareholdershttp://cshare.us/pru1

800-243-1701

Did you know you can also transfer shares registered at Computershare to your broker?Please contact your broker for additional information.

Annual Meeting

Shareholders are invited to attend Prudential Financial, Inc.'s annual meeting, which will be held on May 13, 2025, beginning at 2:00 p.m.at our offices located at 751 Broad Street, Newark, New Jersey.

Additional information about the meeting can be found in the proxy statement.

Information about Prudential Financial, Inc.

You may access our news releases,financial information and reportsfiled with the Securities and Exchange Commission (for example, ourAnnual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and our Current Reports on Form 8-K and any amendments to those forms) online atwww.investor.prudential.com. Copies of current documents on our website are available without charge, and reportsfiled with or furnished to the Securities and Exchange Commission will be available as soon as reasonably practicable after they arefiledwith or furnished to the Commission.

Investor Relations

Institutional investors, analysts and other members of the professionalfinancial community can contact our Investor Relations department viae-mail at[email protected], or by visiting the Investor Relations website atwww.investor.prudential.com.

Visit Prudential Financial, Inc. Online

For more information about our corporate governance, as well as to access information for shareholders and information about our company, visit our website atwww.prudential.com/governance.

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FINANCIAL HIGHLIGHTS

Prudential Financial, Inc.

In millions, except per share amounts

For the years ended December 31,	2024	2023	2022
RESULTS BASED ON ADJUSTED OPERATING INCOME (A)(C)(D)
Revenues	$68,053	$50,490	$59,036
Benefits and expenses	62,127	44,891	53,838
Adjusted operating income before income taxes	$5,926	$5,599	$5,198
Operating retuon average equity (B)(C)(D)	13.1%	12.4%	10.8%
GAAP RESULTS
Revenues	$70,405	$53,979	$56,881
Benefits and expenses	67,196	50,907	58,773
Income (loss) before income taxes and equity in earnings
of joint ventures and other operating entities	$3,209	$3,072	$(1,892)
Retuon average equity (B)	9.6%	8.6%	-5.4%
EARNINGS PER SHARE OF COMMON STOCK - diluted (C)(D)
Adjusted operating income after income taxes	$12.62	$11.88	$10.61
Reconciling items:
Realized investment gains (losses), net, and related charges
and adjustments	(5.98)	(6.88)	(16.88)
Other reconciling items	(1.46)	0.20	(1.87)
Total reconciling items, before income taxes	(7.44)	(6.68)	(18.75)
Income taxes, not applicable to adjusted operating income	(2.32)	(1.54)	(3.65)
Total reconciling items, after income taxes	(5.12)	(5.14)	(15.10)
Net Income (loss) attributable to Prudential Financial, Inc. (after-tax)	$7.50	$6.74	$(4.49)
Prudential Financial, Inc.
In millions, unless otherwise noted
As of or for the years ended December 31,	2024	2023	2022
GAAP RESULTS
Total revenues	$70,405	$53,979	$56,881
Net Income (loss) (after-tax)	$2,846	$2,508	$(1,675)
Less: Income (loss) attributable to noncontrolling interests
and redeemable noncontrolling interests	119	20	(28)
Net income (loss) attributable to Prudential Financial, Inc. (after-tax)	$2,727	$2,488	$(1,647)
FINANCIAL POSITION
Invested assets	$444,780	$434,733	$417,441
Total assets (D)	$735,587	$721,212	$689,029
Prudential Financial, Inc. equity	$27,872	$27,820	$30,593
Assets under management(in billions)	$1,512	$1,450	$1,377

Adjusted Operating Income(A)and Income (Loss) from Operations

(pre-tax, in millions)

Adjusted operating income

Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities (GAAP)

Adjusted Operating Revenues(A)and GAAP Revenues

(in billions)

Adjusted operating revenuesRevenues (GAAP)

$80

$6,000

$4,000

$2,000

$0

$(2,000)

2022

2023

2024

$40

$60

$20

$0

2023

2024

Assets Under Management

(in billions)

$1,750 $1,500 $1,250 $1,000

$750 $500 $250

$0

Operating Retuon Average Equity(B)and Retuon Average Equity(B)

Operating retuon average equityRetuon average equity

15.0%

10.0%

-5.0%

5.0%

0%

-10.0%

2022

2023

2024

2022

2023

Consolidated adjusted operating income and adjusted book value, as well as operating retuon average equity, which is based on adjusted operating income and adjusted book value, are non-GAAP measures. Reconciliations of these measures to the most directly comparable GAAP measures are included in this Annual Report.

We believe that our use of these non-GAAP measures helps investors understand and evaluatethe Company's performance and financial position. The presentation of adjusted operatingincome as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlyingprofitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described below. Adjusted book value augments the understanding of our financial position by providing a measureof net worth that is primarily attributable to our business operations, separate from the portion that is affected by capital and currency market conditions including the removal of the associated accounting impacts of the remeasurement of certain insurance liabilities and investments that are marked to market through accumulated other comprehensive income under GAAP, and the cumulative change in fair value of funds withheld embedded derivatives related to unrealized gains and losses on available-for-sale securities and certain derivatives associated with customer liabilities reinsured under coinsurance with fundswithheld and modified coinsurance arrangements. Operating retuon average equity,which is based on adjusted operating income and adjusted book value, is a useful measure of the operating retuthe Company achieves in relation to the capital available to our businesses. However, these non-GAAP measures are not substitutes for income, equity, and retuon average equity determined in accordance with GAAP, and the adjustments made to derive these measures are important to an understanding of our overall results ofoperations and financial position.

(A) 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 realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, canvary considerably across periods. The timing of other sales that would result in gains orlosses, such as interest rate-related gains or losses, is largely subject to our discretion andinfluenced by market opportunities as well as capital and other factors. Realized investmentgains (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 operating income. Adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset-liability management program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are designated as trading. Adjusted operating income also excludes investment gains and losses on assets supporting experience-rated contractholder liabilities and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to ultimately accrue to contractholders. Adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income. Additionally, adjusted operating income excludes the impact of annual assumption updates and otherrefinements included in the above items. Adjusted operating income excludes "Change in value of market risk benefits, net of related hedging gains (losses)," which reflectsthe impact from changes in current market conditions, and market experience updates,reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which we believe enhances the understandingof underlying performance trends. Adjusted operating income also excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations and discontinued operations and earnings attributable to noncontrolling interests and redeemable noncontrolling interests, each of which is presented as a separate component of net income under GAAP. Additionally, adjusted operating income excludes other items, such as certain components of the consideration for acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments. Earnings attributable to noncontrolling interests and redeemable noncontrolling interests is presented as a separate component of net income under GAAP and excluded from adjustedoperating income. The tax effect associated with pre-tax adjusted operating income isbased on applicable IRS and foreign tax regulations inclusive of pertinent adjustments.

See Management's Discussion and Analysis of Financial Condition and Results of Operations for a discussion of results based on adjusted operating income, and the Consolidated Financial Statements for a reconciliation of results based on adjusted operating income to GAAP results.

(B) Operating retuon average equity (based on adjusted operating income) is a non-GAAP measure and represents adjusted operating income after-tax divided by average adjusted book value. Adjusted book value is calculated as total equity (GAAP book value) excluding accumulated other comprehensive income (loss), the cumulative effect of foreign currency exchange rate remeasurements and currency translation adjustments corresponding to realized investment gains and losses, and the cumulative change in fair value of fundswithheld and modified coinsurance embedded derivatives. This non-GAAP measure augments the understanding of our financial position by providing a measure of net worth that isprimarily attributable to our business operations, separate from the portion that is affectedby capital and currency market conditions. The comparable GAAP measure to operating returnon average equity is retuon average equity which is based on net income and GAAP book value. See chart below for a reconciliation between adjusted book value and GAAP book value.

(C) The amounts for 2023 reflect the correction of an error related to indexed variable and fixed annuity products within the Retirement Strategies segment.

(D) Prior period amounts have been updated to conform to current period presentation.

As of December 31,

2024

2023

2022

(in millions)

GAAP book value at end of period

Less: Accumulated othercomprehensive income

Less: Cumulative change in fair value of funds withheld embedded derivatives(1)

Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses)(2)

$27,872

• $27,820 $30,593

  (6,711)

• (6,504) (3,806)

  141

  (181)

  0

  34

• (518) (723)

Adjusted book value

$34,408

$35,023

$35,122

(1) Amount represents the cumulative change in fair value of funds withheld embeddedderivatives related to unrealized gains and losses on available-for-sale securities and certain derivatives associated with customer liabilities reinsured under coinsurance with fundswithheld and modified coinsurance arrangements.

(2) Includes the cumulative impact of net gains and losses resulting from foreign currencyexchange rate remeasurement and associated realized investment gains and losses included in net income (loss) and currency translation adjustments corresponding to realized investment gains and losses.

Annuities and Life Insurance are issued by Prudential Financial companies; The Prudential

Insurance Company of America ("PICA") or Pruco Life Insurance Company ("PLAZ") (in New York, by Pruco Life Insurance Company of New Jersey ("PLNJ")), all located in Newark, NJ (mainoffice), or an unaffiliated third-party issuer: Fortitude Life Insurance & Annuity Company ("FLIAC"), located in Jersey City, NJ. Fortitude Re has retained PICA as an unaffiliated Third-Party Administrator. Variable Annuities and Variable Life Insurance are distributed by Prudential Annuities Distributors, Inc. ("PAD"), Shelton, CT (main office). Each company (PICA, PLAZ, PLNJ, FLIAC, PAD) is solely responsible for its own financial condition andcontractual obligations.

Fortitude Re is the marketing name for FGH Parent, L.P. and its subsidiaries, including FLIAC.

Each subsidiary is responsible for its own financial condition and contractual obligations.

Securities products and services are offered through: Pruco Securities, LLC or Prudential Investment Management Services LLC, both members SIPC and located in Newark, NJ, or

Prudential Annuities Distributors, Inc., located in Shelton, CT. All are Prudential Financialcompanies.

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Prudential Financial Inc. published this content on March 27, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 27, 2025 at 20:26:48.380.