Long-Duration Targeted Improvements and Resegmentation Impact Summary

Background

Effective January 1, 2023, Prudential Financial, Inc. (the "Company") adopted Accounting Standards Update 2018-12, Financial

Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI), which provides new authoritative guidance impacting the accounting and disclosure requirements for long-duration insurance and investment contracts issued by the Company. This guidance was adopted using the modified retrospective transition method, where permitted, for changes to the liability for future policy benefits and deferred policy acquisition costs and related balances, and the retrospective transition method as required for market risk benefits. The Company applied this guidance as of the transition date of January 1, 2021, and retrospectively adjusted prior period amounts for years 2021 and 2022 to reflect the new guidance.

In addition, effective January 1, 2023, two segment reporting changes have been made by the Company for which retrospective adjustments have been made to years 2021 and 2022:

• Assurance IQ is no longer a separate reportable segment and is now included within the Company's Corporate and Other operations.
• Prudential Advisors, the Company's proprietary nationwide distribution business, which was previously included in the Company's Individual Life segment, is now included within the Company's Corporate and Other operations.

See the related Form 8-K, filed with the Securities and Exchange Commission, dated April 13, 2023, and available on the Company's Investor Relations website at investor.prudential.com.