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PRU Prudential Financial

Filed: 4 Feb 21, 4:53pm

Exhibit 99.2
Prudential Financial, Inc. (PRU)
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Quarterly Financial Supplement
Fourth Quarter 2020
 Reference is made to Prudential Financial, Inc.'s (PFI) filings with the Securities and
 Exchange Commission for general information, and consolidated financial information. All
 financial information in this document is unaudited.

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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
TABLE OF CONTENTS
Page
 
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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
FINANCIAL METRICS SUMMARY
(in millions, except per share data)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020% change
Earnings
Adjusted operating income (loss) before income taxes:
PGIM288 164 324 370 404 998 1,262 26%
U.S. Businesses:
U.S. Workplace Solutions division342 289 286 394 451 1,586 1,420 -10%
U.S. Individual Solutions division508 353 185 509 375 1,930 1,422 -26%
Assurance IQ division (1)(9)(23)(16)(30)(19)(9)(88)-878%
    Total U.S. Businesses841 619 455 873 807 3,507 2,754 -21%
International Businesses748 696 691 775 790 3,112 2,952 -5%
Corporate and Other(738)(342)(541)(455)(486)(1,766)(1,824)-3%
Total adjusted operating income before income taxes1,139 1,137 929 1,563 1,515 5,851 5,144 -12%
Income taxes, applicable to adjusted operating income224 240 189 272 332 1,195 1,033 -14%
After-tax adjusted operating income915 897 740 1,291 1,183 4,656 4,111 -12%
Income (loss) attributable to Prudential Financial, Inc.1,128 (271)(2,409)1,487 819 4,186 (374)-109%
Return on Equity
Operating Return on Average Equity (based on adjusted operating income) (2)9.0 %8.9 %7.8 %13.9 %12.5 %11.6 %10.7 %
Return on Average Equity (based on net income (loss))7.0 %-1.8 %-15.3 %9.0 %4.9 %7.1 %-0.6 %
Distributions to Shareholders
Dividends paid406 445 441 441 442 1,644 1,769 8%
Share repurchases500 500 — — — 2,500 500 -80%
Total capital returned906 945 441 441 442 4,144 2,269 -45%
Per Share Data
Net income (loss) (diluted)2.76 (0.70)(6.12)3.70 2.03 10.11 (1.00)-110%
Adjusted Operating Income (diluted)2.24 2.22 1.85 3.21 2.93 11.24 10.21 -9%
Shareholder dividends1.00 1.10 1.10 1.10 1.10 4.00 4.40 10%
Book value155.88 152.45 165.53 165.75 167.81 
Book value excluding AOCI and FX (3)101.04 99.71 92.07 94.36 94.79 
Shares Outstanding
Weighted average number of common shares (basic)400.7 397.0 394.6 395.3 396.2 404.8 395.8 -2%
Weighted average number of common shares (diluted)403.7 399.6 396.1 397.1 398.3 410.9 397.8 -3%
End of period common shares (basic)398.8 393.8 394.6 395.4 396.4 
End of period common shares (diluted)404.9 396.5 398.1 399.5 401.8 
__________
(1) Assurance IQ was acquired in October of 2019.
(2) Operating Return on Average Equity (based on adjusted operating income) is a non-GAAP measure and represents adjusted operating income after-tax, annualized for interim periods, divided by average Prudential Financial, Inc. equity excluding accumulated other comprehensive income and adjusted to remove amounts included for foreign currency exchange rate remeasurement as described on page 3.
(3) AOCI represents accumulated other comprehensive income and FX represents the remeasurement of foreign currency. See page 3 for further details.
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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020
Earnings per share of Common Stock (diluted):
   After-tax adjusted operating income2.24 2.22 1.85 3.21 2.93 11.24 10.21 
Reconciling items:
       Realized investment gains (losses), net, and related charges and adjustments0.18 (1.26)(6.94)0.39 (3.05)(2.33)(10.85)
       Market experience updates0.16 (2.35)0.14 (0.34)0.94 (1.09)(1.61)
       Divested and Run-off Businesses:
         Closed Block division0.08 — (0.06)0.02 (0.02)0.09 (0.06)
         Other Divested and Run-off Businesses0.28 (0.17)(1.32)(0.33)0.24 1.84 (1.58)
       Difference in earnings allocated to participating unvested share-based payment awards— 0.02 0.01 (0.01)0.01 0.01 0.07 
   Other adjustments (1)(0.12)0.11 0.08 (0.03)(0.04)(0.11)0.13 
         Total reconciling items, before income taxes0.58 (3.65)(8.09)(0.30)(1.92)(1.59)(13.90)
       Income taxes, not applicable to adjusted operating income0.06 (0.73)(0.12)(0.79)(1.02)(0.46)(2.69)
           Total reconciling items, after income taxes0.52 (2.92)(7.97)0.49 (0.90)(1.13)(11.21)
Net income (loss) attributable to Prudential Financial, Inc.2.76 (0.70)(6.12)3.70 2.03 10.11 (1.00)
Weighted average number of outstanding common shares (basic)400.7 397.0 394.6 395.3 396.2 404.8 395.8 
Weighted average number of outstanding common shares (diluted)403.7 399.6 396.1 397.1 398.3 410.9 397.8 
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc.1,128 (271)(2,409)1,487 819 4,186 (374)
       Earnings related to interest, net of tax, on exchangeable surplus notes— — — — — 12 — 
       Less: Earnings allocated to participating unvested share-based payment awards12 18 10 45 21 
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation1,116 (276)(2,415)1,469 809 4,153 (395)
After-tax adjusted operating income915 897 740 1,291 1,183 4,656 4,111 
       Earnings related to interest, net of tax, on exchangeable surplus notes— — — — — 12 — 
       Less: Earnings allocated to participating unvested share-based payment awards11 11 16 14 53 50 
After-tax adjusted operating income for earnings per share of Common Stock calculation904 886 731 1,275 1,169 4,615 4,061 
___________
(1) Represents adjustments not included in the above reconciling items. “Other adjustments” include certain components of the consideration for the Assurance IQ acquisition, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of contingent consideration.



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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
OTHER FINANCIAL HIGHLIGHTS
(in millions, except per share data)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020
Capitalization Data (1):
Senior Debt:
   Short-term Debt1,933 2,539 1,130 1,113 925 
   Long-term Debt11,071 12,571 12,582 12,558 12,103 
Junior Subordinated Long-term Debt7,575 7,578 7,580 7,611 7,615 
 Prudential Financial, Inc. Equity:
    Including accumulated other comprehensive income63,115 60,447 65,897 66,217 67,425 
    Excluding accumulated other comprehensive income (2)39,076 37,847 35,060 36,216 36,687 
       Amount included above for remeasurement of foreign currency (3)(1,835)(1,687)(1,593)(1,482)(1,399)
       Excluding accumulated other comprehensive income and adjusted to remove amount
         included for remeasurement of foreign currency (3)40,911 39,534 36,653 37,698 38,086 
  Book Value per Share of Common Stock:
  �� Including accumulated other comprehensive income155.88 152.45 165.53 165.75 167.81 
    Excluding accumulated other comprehensive income (2)96.51 95.45 88.07 90.65 91.31 
       Amount included above for remeasurement of foreign currency (3)(4.53)(4.26)(4.00)(3.71)(3.48)
       Excluding accumulated other comprehensive income and adjusted to remove amount
         included for remeasurement of foreign currency (3)101.04 99.71 92.07 94.36 94.79 
    End of period number of common shares (diluted)404.9 396.5 398.1 399.5 401.8 
Common Stock Price Range (based on closing price):
    High95.27 97.10 74.73 70.74 81.29 105.71 97.10 
    Low84.95 39.22 46.09 58.03 61.67 78.29 39.22 
    Close93.74 52.14 60.90 63.52 78.07 93.74 78.07 
Common Stock market capitalization (1)37,384 20,533 24,031 25,116 30,947 
__________
(1) As of end of period.
(2) Foreign currency translation adjustments and the cumulative impact of foreign currency exchange rate remeasurement, except for those items remeasured through net income (loss), are a component of accumulated other comprehensive income.
(3) Includes the cumulative impact of net gains and losses resulting from foreign currency exchange 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.
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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
OPERATIONS HIGHLIGHTS
20192020Year-to-date
4Q1Q2Q3Q4Q20192020
Assets Under Management and Administration ($ billions) (1)(2):
PGIM:  
Institutional customers  552.8 524.8 571.2 591.0 614.9 
Retail customers (3)  305.6 282.4 320.2 343.0 372.0 
General account  472.6 488.5 503.1 509.1 511.7 
Total PGIM  1,331.0 1,295.7 1,394.5 1,443.1 1,498.6 
U.S. Businesses:
U.S. Workplace Solutions division91.6 87.7 93.0 97.1 102.9 
U.S. Individual Solutions division (3)115.5 84.8 105.4 95.2 105.1 
Total U.S. Businesses207.1 172.5 198.4 192.3 208.0 
International Businesses12.8 13.2 12.4 12.7 14.3 
Total assets under management  1,550.9 1,481.4 1,605.3 1,648.1 1,720.9 
Client assets under administration  291.6 262.1 285.8 306.1 341.7 
Total assets under management and administration  1,842.5 1,743.5 1,891.1 1,954.2 2,062.6 
Assets managed or administered for customers outside of the United States420.3 405.4 410.7 424.2 447.3 
Distribution Representatives (1):  
Prudential Advisors  3,048 3,040 3,075 3,074 3,023 
International Life Planners  6,189 6,282 6,257 6,312 6,066 
Gibraltar Life Consultants  7,403 7,205 7,150 7,276 7,254 
Prudential Advisor Productivity ($ thousands)  84 61 54 61 84 66 65 
__________
(1) As of end of period.
(2) At fair market value.
(3) The amounts for fourth quarter of 2019 have been reclassified to conform to current period presentation.

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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
COMBINED STATEMENTS OF OPERATIONS
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020% change
Revenues (1):
  Premiums10,162 6,748 6,734 6,631 7,505 30,072 27,618 -8%
  Policy charges and fee income1,542 1,477 1,509 1,461 1,552 6,042 5,999 -1%
  Net investment income3,674 3,407 3,419 3,625 3,823 14,188 14,274 1%
  Asset management fees, commissions and other income1,503 1,176 1,267 1,619 2,196 5,571 6,258 12%
     Total revenues16,881 12,808 12,929 13,336 15,076 55,873 54,149 -3%
Benefits and Expenses (1):
  Insurance and annuity benefits10,659 7,189 7,304 7,205 8,303 31,576 30,001 -5%
  Interest credited to policyholders' account balances972 940 927 919 926 3,829 3,712 -3%
  Interest expense385 387 397 400 386 1,540 1,570 2%
  Deferral of acquisition costs(680)(688)(562)(695)(677)(2,760)(2,622)5%
  Amortization of acquisition costs499 548 569 485 486 2,211 2,088 -6%
  General and administrative expenses3,907 3,295 3,365 3,459 4,137 13,626 14,256 5%
      Total benefits and expenses15,742 11,671 12,000 11,773 13,561 50,022 49,005 -2%
Adjusted operating income before income taxes1,139 1,137 929 1,563 1,515 5,851 5,144 -12%
  Income taxes, applicable to adjusted operating income224 240 189 272 332 1,195 1,033 -14%
After-tax adjusted operating income915 897 740 1,291 1,183 4,656 4,111 -12%
Reconciling items:
   Realized investment gains (losses), net, and related charges and adjustments73 (503)(2,749)153 (1,216)(958)(4,315)-350%
   Market experience updates66 (938)56 (134)376 (449)(640)-43%
   Divested and Run-off Businesses:
      Closed Block division31 (1)(22)(9)36 (24)-167%
      Other Divested and Run-off Businesses114 (69)(524)(132)96 755 (629)-183%
   Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests(32)(9)(54)152 (103)90 187%
   Other adjustments (2)(47)45 32 (12)(14)(47)51 209%
      Total reconciling items, before income taxes205 (1,475)(3,261)(116)(615)(766)(5,467)-614%
  Income taxes, not applicable to adjusted operating income(3)(298)(74)(322)(420)(248)(1,114)-349%
      Total reconciling items, after income taxes208 (1,177)(3,187)206 (195)(518)(4,353)-740%
Income (loss) before income taxes and equity in earnings of operating joint ventures1,344 (338)(2,332)1,447 900 5,085 (323)-106%
Income tax expense (benefit)221 (58)115 (50)(88)947 (81)-109%
Income (loss) before equity in earnings of operating joint ventures1,123 (280)(2,447)1,497 988 4,138 (242)-106%
Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests38 (10)(169)48 (132)-375%
Income (loss) attributable to Prudential Financial, Inc.1,128 (271)(2,409)1,487 819 4,186 (374)-109%
Earnings attributable to noncontrolling interests10 20 203 52 228 338%
Net income (loss)1,138 (270)(2,405)1,507 1,022 4,238 (146)-103%
Less: Income attributable to noncontrolling interests10 20 203 52 228 338%
Net income (loss) attributable to Prudential Financial, Inc.1,128 (271)(2,409)1,487 819 4,186 (374)-109%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, revenues of Divested and Run-off Businesses, and changes in the fair value of contingent consideration associated with the Assurance IQ acquisition, and include revenues representing equity in earnings of operating joint ventures other than those classified as Divested and Run-off Businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, benefits and expenses of Divested and Run-off Businesses, and certain components of the Assurance IQ acquisition which are recognized as compensation expense over the requisite service periods and include charges for income attributable to noncontrolling interests. Beginning with the second quarter of 2019, revenues and expenses exclude market experience updates. See pages 38 and 39 for reconciliation.
(2) Represents adjustments not included in the above reconciling items. “Other adjustments” include certain components of the consideration for the Assurance IQ acquisition, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of contingent consideration.
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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
CONSOLIDATED BALANCE SHEETS
(in millions)
12/31/201903/31/202006/30/202009/30/202012/31/2020
Assets:
  Investments:
    Fixed maturities, available-for-sale, at fair value
       (amortized cost $346,574; $349,665; $353,812; $346,511; $354,470; net of allowance for credit losses at 03/31/2020, 06/30/2020, 09/30/2020 and 12/31/2020 $158, $238, $152 and $133) (2)391,096 389,714 407,944 400,816 412,905 
    Fixed maturities, held-to-maturity, at amortized cost
       (fair value $2,302; $2,249; $2,231; $2,264; $2,298; net of allowance for credit losses at 03/31/2020, 06/30/2020, 09/30/2020, and 12/31/2020 $9, $9, $9 and $9) (1)1,933 1,895 1,875 1,901 1,930 
    Fixed maturities, trading, at fair value
       (amortized cost $3,917; $3,931; $4,089; $4,353; $3,670)3,884 3,621 3,933 4,371 3,914 
    Assets supporting experience-rated contractholder liabilities, at fair value21,597 21,580 23,245 23,961 24,115 
    Equity securities, at fair value
       (cost $5,560; $5,695; $5,704; $5,395; $5,968) (2)7,522 6,176 7,010 7,025 8,135 
    Commercial mortgage and other loans
       (net of allowance for credit losses $121; $240; $245; $235; $235) (1)(2)63,559 63,559 63,469 64,541 65,425 
    Policy loans (2)12,096 12,099 12,283 11,502 11,271 
    Other invested assets
       (net of allowance for credit losses at 03/31/2020, 06/30/2020, 09/30/2020 and 12/31/2020 $1, $2, $2 and $2) (1)(2)15,606 18,071 16,757 16,921 18,125 
    Short-term investments
       (net of allowance for credit losses at 03/31/2020, 06/30/2020, 09/30/2020 and 12/31/2020 $4, $0, $1 and $1) (2)5,467 7,961 11,416 10,015 7,800 
        Total investments522,760 524,676 547,932 541,053 553,620 
  Cash and cash equivalents (2)16,327 31,646 21,149 20,658 13,701 
  Accrued investment income (2)3,330 3,221 3,296 3,129 3,193 
  Deferred policy acquisition costs (1)(2)19,912 19,738 19,667 18,599 19,027 
  Value of business acquired1,110 1,070 1,040 1,131 1,103 
  Other assets
       (net of allowance for credit losses at 03/31/2020, 06/30/2020, 09/30/2020 and 12/31/2020 $6, $8, $9 and $11) (1)(2)20,832 20,694 21,301 21,536 22,801 
  Separate account assets (2)312,281 272,667 301,002 305,483 327,277 
      Total assets896,552 873,712 915,387 911,589 940,722 
Liabilities:
  Future policy benefits (2)293,527 310,817 312,759 303,733 306,343 
  Policyholders' account balances (2)152,110 155,898 158,237 159,346 161,682 
  Securities sold under agreements to repurchase9,681 10,557 10,488 10,874 10,894 
  Cash collateral for loaned securities4,213 3,396 3,447 3,071 3,499 
  Income taxes (1)(2)11,378 11,117 13,261 12,111 12,022 
  Senior short-term debt1,933 2,539 1,130 1,113 925 
  Senior long-term debt11,071 12,571 12,582 12,558 12,103 
  Junior subordinated long-term debt7,575 7,578 7,580 7,611 7,615 
  Other liabilities
       (net of allowance for credit losses at 03/31/2020, 06/30/2020, 09/30/2020 and 12/31/2020 $19, $19, $19 and $20) (1)(2)27,790 24,249 27,196 27,557 29,847 
  Notes issued by consolidated variable interest entities1,274 1,251 1,197 1,242 305 
  Separate account liabilities (2)312,281 272,667 301,002 305,483 327,277 
      Total liabilities832,833 812,640 848,879 844,699 872,512 
Equity:
  Accumulated other comprehensive income24,039 22,600 30,837 30,001 30,738 
  Other equity39,076 37,847 35,060 36,216 36,687 
     Total Prudential Financial, Inc. equity63,115 60,447 65,897 66,217 67,425 
  Noncontrolling interests604 625 611 673 785 
     Total equity63,719 61,072 66,508 66,890 68,210 
Total liabilities and equity896,552 873,712 915,387 911,589 940,722 
__________
(1) 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13, Financial Instruments - Credit losses.
(2) June 30, 2020 amounts include assets and liabilities held for sale which aggregate to $20,835 million and $17,141 million, respectively, related to the pending sale of The Prudential Life Insurance Company of Korea, Ltd.
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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
COMBINING BALANCE SHEETS
(in millions)
 As of December 31, 2020
Consolidated PFIClosed Block DivisionPFI Excluding Closed Block DivisionPGIMU.S. Workplace Solutions DivisionU.S. Individual Solutions DivisionAssurance IQ DivisionInternational BusinessesCorporate and Other
Assets:  
  Total investments  553,620 61,065 492,555 4,462 151,393 91,422 108 211,879 33,291 
  Deferred policy acquisition costs  19,027 209 18,818 — 290 10,885 — 7,668 (25)
  Other assets  40,798 815 39,983 4,176 7,725 16,779 2,595 11,581 (2,873)
  Separate account assets  327,277 — 327,277 40,042 99,919 192,585 — — (5,269)
     Total assets  940,722 62,089 878,633 48,680 259,327 311,671 2,703 231,128 25,124 
Liabilities:  
  Future policy benefits  306,343 46,762 259,581 — 74,341 42,387 — 128,776 14,077 
  Policyholders' account balances  161,682 4,874 156,808 — 62,838 41,476 — 51,429 1,065 
  Debt  20,643 — 20,643 2,218 627 7,405 180 95 10,118 
  Other liabilities  56,567 12,044 44,523 2,893 6,715 9,979 170 18,662 6,104 
  Separate account liabilities  327,277 — 327,277 40,042 99,919 192,585 — — (5,269)
    Total liabilities  872,512 63,680 808,832 45,153 244,440 293,832 350 198,962 26,095 
Equity:  
  Accumulated other comprehensive income (loss)  30,738 10 30,728 (39)7,746 5,907 17,219 (109)
  Other equity  36,687 (1,615)38,302 2,439 7,074 11,911 2,349 14,912 (383)
     Total Prudential Financial, Inc. equity  67,425 (1,605)69,030 2,400 14,820 17,818 2,353 32,131 (492)
  Noncontrolling interests785 14 771 1,127 67 21 — 35 (479)
     Total equity68,210 (1,591)69,801 3,527 14,887 17,839 2,353 32,166 (971)
Total liabilities and equity  940,722 62,089 878,633 48,680 259,327 311,671 2,703 231,128 25,124 
 As of December 31, 2019
  Consolidated PFIClosed Block DivisionPFI Excluding Closed Block DivisionPGIMU.S. Workplace Solutions DivisionU.S. Individual Solutions DivisionAssurance IQ DivisionInternational BusinessesCorporate and Other
Assets:  
  Total investments  522,760 60,331 462,429 4,606 142,114 73,910 101 195,411 46,287 
  Deferred policy acquisition costs  19,912 235 19,677 — 300 10,809 — 7,442 1,126 
  Other assets  41,599 761 40,838 3,424 9,586 16,248 2,538 10,429 (1,387)
  Separate account assets  312,281 — 312,281 39,625 89,865 184,145 — 53 (1,407)
     Total assets  896,552 61,327 835,225 47,655 241,865 285,112 2,639 213,335 44,619 
Liabilities:  
  Future policy benefits  293,527 47,614 245,913 — 72,890 32,568 — 117,384 23,071 
  Policyholders' account balances  152,110 4,973 147,137 — 57,634 37,669 — 49,509 2,325 
  Debt  20,579 — 20,579 1,751 665 7,421 64 95 10,583 
  Other liabilities  54,336 10,379 43,957 3,288 8,691 8,849 197 17,187 5,745 
  Separate account liabilities  312,281 — 312,281 39,625 89,865 184,145 — 53 (1,407)
    Total liabilities  832,833 62,966 769,867 44,664 229,745 270,652 261 184,228 40,317 
Equity:
  Accumulated other comprehensive income24,039 (12)24,051 (53)5,349 2,691 — 15,795 269 
  Other equity39,076 (1,641)40,717 2,047 6,704 11,748 2,378 13,244 4,596 
     Total Prudential Financial, Inc. equity63,115 (1,653)64,768 1,994 12,053 14,439 2,378 29,039 4,865 
  Noncontrolling interests604 14 590 997 67 21 — 68 (563)
     Total equity63,719 (1,639)65,358 2,991 12,120 14,460 2,378 29,107 4,302 
Total liabilities and equity896,552 61,327 835,225 47,655 241,865 285,112 2,639 213,335 44,619 
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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED
(in millions)
 As of December 31, 2020As of December 31, 2019
Senior DebtSenior Debt
Short-term DebtLong-term DebtJunior Subordinated Long-term DebtTotal DebtShort-term DebtLong-term DebtJunior Subordinated Long-term DebtTotal Debt
Borrowings by use of proceeds:
  Capital Debt— 5,856 7,615 13,471 — 7,001 7,575 14,576 
  Operating Debt779 5,666 — 6,445 1,728 3,425 — 5,153 
  Limited recourse and non-recourse borrowing146 581 — 727 205 645 — 850 
      Total Debt925 12,103 7,615 20,643 1,933 11,071 7,575 20,579 
 As of December 31, 2020As of December 31, 2019
The PrudentialThe Prudential
PrudentialInsurance Co.OtherPrudentialInsurance Co.Other
Financial, Inc.of America (1)(2)AffiliatesTotal DebtFinancial, Inc.of America (1)(2)AffiliatesTotal Debt
Borrowings by sources:
  Capital Debt12,967 444 60 13,471 14,078 441 57 14,576 
  Operating Debt6,018 427 — 6,445 4,557 596 — 5,153 
  Limited recourse and non-recourse borrowing— 409 318 727 — 537 313 850 
      Total Debt18,985 1,280 378 20,643 18,635 1,574 370 20,579 
__________
(1) Includes Prudential Funding, LLC.
(2) Capital Debt at Prudential Insurance Co. of America includes $343 million of surplus notes as of December 31, 2020 and $342 million as of December 31, 2019.

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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
STATEMENTS OF OPERATIONS - PGIM
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020% change
Revenues (1):
  Premiums  — — — — — — — 
  Policy charges and fee income  — — — — — — — 
  Net investment income  76 92 93 115 200 304 52%
  Asset management fees, commissions and other income  862 774 865 973 1,237 3,389 3,849 14%
     Total revenues  938 778 957 1,066 1,352 3,589 4,153 16%
Benefits and Expenses (1):  
  Insurance and annuity benefits  — — — — — — — 
  Interest credited to policyholders' account balances  — — — — — — — 
  Interest expense  13 11 49 33 -33%
  Deferral of acquisition costs  (2)(2)(2)(2)(1)(7)(7)—%
  Amortization of acquisition costs  33%
  General and administrative expenses  638 603 624 689 941 2,543 2,857 12%
    Total benefits and expenses  650 614 633 696 948 2,591 2,891 12%
Adjusted operating income before income taxes  288 164 324 370 404 998 1,262 26%
Total revenues938 778 957 1,066 1,352 3,589 4,153 16%
Less: Passthrough distribution revenue29 29 26 30 31 112 116 4%
Less: Revenue associated with consolidations11 (36)44 46 214 105 268 155%
    Total adjusted revenues (2)898 785 887 990 1,107 3,372 3,769 12%
Adjusted operating margin (2)(3)32.1 %20.9 %36.5 %37.4 %36.5 %29.6 %33.5 %
__________
(1) Revenues exclude realized investment gains, net of losses. Benefits and expenses include charges for income attributable to noncontrolling interests.
(2) Not calculated in accordance with GAAP. Adjusted revenue excludes passthrough distribution revenue and revenue associated with consolidations. Adjusted operating income before income taxes as a percentage of total adjusted revenues.
(3) Reported Operating Margin based on total revenues is 29.9%, 34.7%, 33.9%, 21.1%, and 30.7% for the three months ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019, and respectively and 30.4% and 27.8% for the twelve months ended December 31, 2020, and December 31, 2019, respectively.
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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
PGIM - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION
20192020Year-to-date
4Q1Q2Q3Q4Q20192020% change
Supplementary Revenue Information (in millions):
Analysis of revenues by type:
     Asset management fees691 693 690 750 777 2,682 2,910 9%
     Other related revenues (1)115 22 117 165 248 380 552 45%
     Service, distribution and other revenues132 63 150 151 327 527 691 31%
         Total PGIM revenues938 778 957 1,066 1,352 3,589 4,153 16%
Analysis of asset management fees by source:
     Institutional customers329 328 325 345 352 1,283 1,350 5%
     Retail customers226 229 227 262 285 878 1,003 14%
     General account136 136 138 143 140 521 557 7%
         Total asset management fees691 693 690 750 777 2,682 2,910 9%
Supplementary Assets Under Management Information (at fair market value) (in billions) (2):
December 31, 2020
Public EquityPublic Fixed IncomeReal EstatePrivate Credit and Other AlternativesMulti-AssetTotal
Institutional customers61.0 471.6 50.8 25.7 5.8 614.9 
Retail customers136.9 174.7 1.8 0.7 57.9 372.0 
General account4.5 358.2 68.9 80.1 — 511.7 
            Total202.4 1,004.5 121.5 106.5 63.7 1,498.6 
December 31, 2019
Public EquityPublic Fixed IncomeReal EstatePrivate Credit and Other AlternativesMulti-AssetTotal
Institutional customers57.1 418.6 49.1 23.5 4.5 552.8 
Retail customers104.2 138.7 2.0 0.5 60.2 305.6 
General account4.4 328.6 66.0 73.5 0.1 472.6 
            Total165.7 885.9 117.1 97.5 64.8 1,331.0 
__________
(1) Other related revenues, net of related expenses and charges associated with a joint venture in first quarter 2019 are $179 million, $127 million, $97 million, ($1) million, and $80 million for the three months ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019, respectively and $402 million and $229 million for the twelve months ended December 31, 2020, and December 31, 2019, respectively.
(2) The amounts for fourth quarter of 2019 have been reclassified to conform to current period presentation.
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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
PGIM - SUPPLEMENTARY ASSETS UNDER MANAGEMENT INFORMATION
(in billions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020
Institutional Customers - Assets Under Management (at fair market value):
Assets gathered by Investment Management & Advisory Services sales force:
   Beginning assets under management483.2 494.6 470.8 512.2 530.0 443.6 494.6 
   Additions16.4 20.6 15.0 15.9 16.9 60.8 68.4 
   Withdrawals(15.7)(16.4)(20.7)(13.9)(14.4)(67.3)(65.4)
   Change in market value9.8 (27.0)38.2 15.0 23.0 54.1 49.2 
   Net money market flows0.4 (0.5)9.0 0.1 (6.0)2.0 2.6 
   Other0.5 (0.5)(0.1)0.7 0.7 1.4 0.8 
   Ending assets under management494.6 470.8 512.2 530.0 550.2 494.6 550.2 
Affiliated institutional assets under management58.2 54.0 59.0 61.0 64.7 58.2 64.7 
Total assets managed for institutional customers at end of period552.8 524.8 571.2 591.0 614.9 552.8 614.9 
Net institutional additions (withdrawals), excluding money market activity0.7 4.2 (5.7)2.0 2.5 (6.5)3.0 
Retail Customers - Assets Under Management (at fair market value):
Assets gathered by Investment Management & Advisory Services sales force:
   Beginning assets under management179.0 189.7 170.6 209.2 230.0 154.2 189.7 
   Additions19.6 23.6 24.6 22.2 24.6 61.2 95.0 
   Withdrawals(18.4)(24.9)(15.2)(16.9)(20.8)(55.5)(77.8)
   Change in market value9.1 (17.5)29.1 15.3 18.3 29.2 45.2 
   Net money market flows0.2 0.1 — 0.1 0.2 0.6 0.4 
   Other0.2 (0.4)0.1 0.1 0.2 — — 
   Ending assets under management189.7 170.6 209.2 230.0 252.5 189.7 252.5 
Affiliated retail assets under management (1)115.9 111.8 111.0 113.0 119.5 115.9 119.5 
Total assets managed for retail customers at end of period305.6 282.4 320.2 343.0 372.0 305.6 372.0 
Net retail additions (withdrawals), excluding money market activity1.2 (1.3)9.4 5.3 3.8 5.7 17.2 
__________
(1) The amount for fourth quarter of 2019 has been reclassified to conform to current period presentation.



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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020% change
Revenues (1):
  Premiums  6,433 2,408 3,117 2,586 3,706 14,804 11,817 -20%
  Policy charges and fee income  1,469 1,404 1,396 1,401 1,478 5,764 5,679 -1%
  Net investment income  2,154 2,063 2,002 2,148 2,234 8,465 8,447 —%
  Asset management fees, commissions and other income  850 724 523 844 1,015 2,992 3,106 4%
     Total revenues  10,906 6,599 7,038 6,979 8,433 32,025 29,049 -9%
Benefits and Expenses (1):  
  Insurance and annuity benefits  7,460 3,471 4,148 3,672 4,926 18,569 16,217 -13%
  Interest credited to policyholders' account balances  759 718 723 704 716 2,953 2,861 -3%
  Interest expense  239 240 209 206 204 945 859 -9%
  Deferral of acquisition costs  (339)(312)(291)(293)(355)(1,313)(1,251)5%
  Amortization of acquisition costs  229 240 234 220 231 1,135 925 -19%
  General and administrative expenses  1,717 1,623 1,560 1,597 1,904 6,229 6,684 7%
    Total benefits and expenses  10,065 5,980 6,583 6,106 7,626 28,518 26,295 -8%
Adjusted operating income before income taxes  841 619 455 873 807 3,507 2,754 -21%
___________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, and changes in the fair value of contingent consideration associated with the Assurance IQ acquisition. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, certain components of the Assurance IQ acquisition which are recognized as compensation expense over the requisite service periods and include charges for income attributable to noncontrolling interests. Beginning with the second quarter of 2019, revenues and expenses exclude market experience updates. Assurance IQ was acquired in October of 2019.


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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES - U.S. WORKPLACE SOLUTIONS DIVISION
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020% change
Revenues (1):
  Premiums  6,165 2,137 2,854 2,325 3,446 13,588 10,762 -21%
  Policy charges and fee income  225 240 239 233 228 926 940 2%
  Net investment income  1,348 1,303 1,224 1,324 1,382 5,362 5,233 -2%
  Asset management fees, commissions and other income  250 181 146 265 293 938 885 -6%
     Total revenues  7,988 3,861 4,463 4,147 5,349 20,814 17,820 -14%
Benefits and Expenses (1):  
  Insurance and annuity benefits  6,652 2,624 3,247 2,852 3,951 15,318 12,674 -17%
  Interest credited to policyholders' account balances  445 428 422 407 419 1,789 1,676 -6%
  Interest expense  12 10 48 26 -46%
  Deferral of acquisition costs  (13)(2)(4)(4)(8)(42)(18)57%
  Amortization of acquisition costs  19 12 45 34 -24%
  General and administrative expenses  531 505 494 486 523 2,070 2,008 -3%
    Total benefits and expenses  7,646 3,572 4,177 3,753 4,898 19,228 16,400 -15%
Adjusted operating income before income taxes  342 289 286 394 451 1,586 1,420 -10%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.
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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - U.S. WORKPLACE SOLUTIONS DIVISION - RETIREMENT
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020% change
Revenues (1):
  Premiums5,083 1,038 1,702 1,191 2,332 9,218 6,263 -32%
  Policy charges and fee income72 67 62 67 71 272 267 -2%
  Net investment income1,199 1,168 1,103 1,191 1,245 4,738 4,707 -1%
  Asset management fees, commissions and other income224 164 125 241 267 836 797 -5%
     Total revenues6,578 2,437 2,992 2,690 3,915 15,064 12,034 -20%
Benefits and Expenses (1):
  Insurance and annuity benefits5,605 1,534 2,066 1,689 2,721 11,061 8,010 -28%
  Interest credited to policyholders' account balances382 370 372 358 370 1,503 1,470 -2%
  Interest expense12 46 23 -50%
  Deferral of acquisition costs(12)(2)(4)(4)(8)(37)(18)51%
  Amortization of acquisition costs17 38 26 -32%
  General and administrative expenses293 275 263 266 283 1,152 1,087 -6%
    Total benefits and expenses6,297 2,192 2,711 2,318 3,377 13,763 10,598 -23%
Adjusted operating income before income taxes281 245 281 372 538 1,301 1,436 10%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes.
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Prudential Financial, Inc.
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Quarterly Financial Supplement
Fourth Quarter 2020
U.S. BUSINESSES - U.S. WORKPLACE SOLUTIONS DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020
Full Service:
  Beginning total account value259,946 272,448 238,435 266,433 285,010 231,669 272,448 
  Deposits and sales8,322 8,952 5,455 14,705 11,802 36,394 40,914 
  Withdrawals and benefits(8,584)(8,668)(7,040)(9,465)(9,479)(35,706)(34,652)
  Change in market value, interest credited, interest income and other activity12,764 (34,297)29,583 13,337 27,894 40,091 36,517 
  Ending total account value272,448 238,435 266,433 285,010 315,227 272,448 315,227 
  Net additions (withdrawals)(262)284 (1,585)5,240 2,323 688 6,262 
  Stable value account values included above51,293 52,461 53,647 54,924 56,051 
Institutional Investment Products:
  Beginning total account value217,580 227,596 227,346 231,142 234,696 200,759 227,596 
  Additions8,575 6,893 4,545 2,780 8,251 31,101 22,469 
  Withdrawals and benefits(4,307)(5,510)(3,527)(4,189)(5,062)(16,743)(18,288)
  Change in market value, interest credited and interest income1,213 2,435 3,000 1,944 1,475 9,089 8,854 
  Other (1)4,535 (4,068)(222)3,019 4,027 3,390 2,756 
  Ending total account value227,596 227,346 231,142 234,696 243,387 227,596 243,387 
  Net additions (withdrawals)4,268 1,383 1,018 (1,409)3,189 14,358 4,181 
Amounts included in ending total account value above:
    Investment-only stable value wraps69,150 70,831 72,886 74,709 76,295 69,150 76,295 
    Longevity reinsurance (2)66,074 61,324 62,570 64,937 71,899 66,074 71,899 
    Group annuities and other products92,372 95,191 95,686 95,050 95,193 92,372 95,193 
  Ending total account value227,596 227,346 231,142 234,696 243,387 227,596 243,387 
_________
(1) "Other" activity includes the effect of foreign exchange rate changes associated with our United Kingdom longevity reinsurance business; net presentation of receipts and payments related to funding agreements backed commercial paper which typically have maturities of less than 90 days, and changes in asset balances for externally-managed accounts.
(2) Represents notional amounts based on present value of future benefits under longevity reinsurance contracts which have not been significantly pre-funded.
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Prudential Financial, Inc.
image451.jpg
Quarterly Financial Supplement
Fourth Quarter 2020
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - U.S. WORKPLACE SOLUTIONS DIVISION - GROUP INSURANCE
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020% change
Revenues (1):
  Premiums  1,082 1,099 1,152 1,134 1,114 4,370 4,499 3%
  Policy charges and fee income  153 173 177 166 157 654 673 3%
  Net investment income  149 135 121 133 137 624 526 -16%
  Asset management fees, commissions and other income  26 17 21 24 26 102 88 -14%
     Total revenues  1,410 1,424 1,471 1,457 1,434 5,750 5,786 1%
Benefits and Expenses (1):  
  Insurance and annuity benefits  1,047 1,090 1,181 1,163 1,230 4,257 4,664 10%
  Interest credited to policyholders' account balances  63 58 50 49 49 286 206 -28%
  Interest expense  — — 50%
  Deferral of acquisition costs  (1)— — — — (5)— 100%
  Amortization of acquisition costs  14%
  General and administrative expenses  238 230 231 220 240 918 921 —%
    Total benefits and expenses  1,349 1,380 1,466 1,435 1,521 5,465 5,802 6%
Adjusted operating income (loss) before income taxes  61 44 22 (87)285 (16)-106%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses.

Page 16


Prudential Financial, Inc.
image451.jpg
Quarterly Financial Supplement
Fourth Quarter 2020
U.S. BUSINESSES -U.S. WORKPLACE SOLUTIONS DIVISION - GROUP INSURANCE SUPPLEMENTARY INFORMATION
(dollar amounts in millions, or as otherwise noted)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020
GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
  Group life21 173 46 16 254 243 
  Group disability108 18 17 20 159 163 
        Total27 281 26 63 36 413 406 
Future Policy Benefits (1)(2):
  Group life2,405 2,305 2,375 2,397 2,630 
  Group disability2,702 2,739 2,755 2,822 2,792 
        Total5,107 5,044 5,130 5,219 5,422 
Policyholders' Account Balances (1):
  Group life8,382 8,188 8,055 7,729 7,307 
  Group disability205 195 160 160 163 
        Total8,587 8,383 8,215 7,889 7,470 
Separate Account Liabilities (1):
  Group life26,325 26,426 26,511 26,745 28,340 
Group Life Insurance:
  Gross premiums, policy charges and fee income (3)1,025 1,034 1,043 1,014 1,040 4,157 4,131 
  Earned premiums822 832 887 868 863 3,317 3,450 
  Earned policy charges and fee income140 158 161 148 138 601 605 
  Benefits ratio (4)85.5 %88.4 %93.4 %93.9 %98.6 %87.0 %93.6 %
  Administrative operating expense ratio13.9 %12.4 %11.8 %12.2 %13.2 %12.7 %12.4 %
  Persistency ratio92.2 %97.4 %96.4 %96.4 %96.1 %
Group Disability Insurance:
  Gross premiums, policy charges and fee income (3)288 292 290 290 279 1,159 1,151 
  Earned premiums260 267 265 266 251 1,053 1,049 
  Earned policy charges and fee income13 15 16 18 19 53 68 
  Benefits ratio (4)82.2 %76.0 %75.7 %73.5 %90.5 %77.7 %78.8 %
  Administrative operating expense ratio23.3 %24.8 %26.1 %25.2 %28.2 %24.1 %26.1 %
  Persistency ratio93.6 %90.6 %90.0 %89.7 %89.6 %
Total Group Insurance:
  Benefits ratio (4)84.8 %85.6 %89.6 %89.4 %96.9 %84.9 %90.4 %
  Administrative operating expense ratio16.0 %15.1 %14.9 %15.1 %16.4 %15.2 %15.4 %
  Net face amount of policies in force (in billions) (5)1,8661,8901,9151,8981,909
__________
(1) As of end of period.
(2) Prior period amounts have been reclassified to conform to current period presentation to include liabilities for unpaid claims and claim adjustment expenses.
(3) Before returns of premiums to participating policyholders for favorable claims experience.
(4) Benefit ratios excluding the impact of the annual assumption updates and other refinements in the second quarter. Benefit ratios including these impacts for Group Life, Group Disability, and Total Group Insurance are 93.0%, 74.0% and 89.0% for the three months ended June 30, 2020, respectively. Benefit ratios including these impacts for Group Life, Group Disability, and Total Group Insurance are 93.4%, 78.4%, 90.2% and 87.4%, 75.4%, 84.7% for the twelve months ended December 31, 2020 and December 31, 2019, respectively.
(5) At end of period; net of reinsurance.
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Prudential Financial, Inc.
image451.jpg
Quarterly Financial Supplement
Fourth Quarter 2020
COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020% change
Revenues (1):
  Premiums268 271 263 261 260 1,216 1,055 -13%
  Policy charges and fee income1,244 1,164 1,157 1,168 1,250 4,838 4,739 -2%
  Net investment income806 760 777 824 851 3,103 3,212 4%
  Asset management fees, commissions and other income499 483 319 504 526 1,953 1,832 -6%
     Total revenues2,817 2,678 2,516 2,757 2,887 11,110 10,838 -2%
Benefits and Expenses (1):
  Insurance and annuity benefits808 847 901 820 975 3,251 3,543 9%
  Interest credited to policyholders' account balances314 290 301 297 297 1,164 1,185 2%
  Interest expense226 229 202 199 198 896 828 -8%
  Deferral of acquisition costs(326)(310)(287)(289)(347)(1,271)(1,233)3%
  Amortization of acquisition costs210 233 222 214 222 1,090 891 -18%
  General and administrative expenses1,077 1,036 992 1,007 1,167 4,050 4,202 4%
    Total benefits and expenses2,309 2,325 2,331 2,248 2,512 9,180 9,416 3%
Adjusted operating income before income taxes508 353 185 509 375 1,930 1,422 -26%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses. Beginning with the second quarter of 2019, revenues and expenses exclude market experience updates.

Page 18


Prudential Financial, Inc.
image451.jpg
Quarterly Financial Supplement
Fourth Quarter 2020
STATEMENTS OF OPERATIONS - U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL ANNUITIES
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020% change
Revenues (1):
  Premiums30 38 29 33 29 268 129 -52%
  Policy charges and fee income671 619 563 599 628 2,704 2,409 -11%
  Net investment income229 199 233 228 238 856 898 5%
  Asset management fees, commissions and other income291 292 128 288 296 1,167 1,004 -14%
     Total revenues1,221 1,148 953 1,148 1,191 4,995 4,440 -11%
Benefits and Expenses (1):
  Insurance and annuity benefits82 92 67 91 87 435 337 -23%
  Interest credited to policyholders' account balances85 81 87 86 83 334 337 1%
  Interest expense33 34 122 59 -52%
  Deferral of acquisition costs(101)(99)(73)(84)(110)(465)(366)21%
  Amortization of acquisition costs129 131 135 126 132 513 524 2%
  General and administrative expenses543 536 479 512 552 2,213 2,079 -6%
    Total benefits and expenses771 775 704 740 751 3,152 2,970 -6%
Adjusted operating income before income taxes450 373 249 408 440 1,843 1,470 -20%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses. Beginning with the second quarter of 2019, revenues and expenses exclude market experience updates.

Page 19


Prudential Financial, Inc.
image451.jpg
Quarterly Financial Supplement
Fourth Quarter 2020
U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL ANNUITIES SALES RESULTS AND ACCOUNT VALUES
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020
Variable Annuities:    
  Beginning total account value    160,130 164,928 139,047 154,079 158,646 147,339 164,928 
    Sales: Highest Daily Suite (1)    731 693 402 167 209 3,752 1,471 
               Other variable annuities (2)    1,127 1,023 649 1,019 1,559 4,788 4,250 
               Total sales    1,858 1,716 1,051 1,186 1,768 8,540 5,721 
    Full surrenders and death benefits    (2,448)(2,491)(1,387)(1,789)(2,079)(9,271)(7,746)
    Sales, net of full surrenders and death benefits    (590)(775)(336)(603)(311)(731)(2,025)
    Partial withdrawals and other benefit payments(1,379)(1,301)(1,061)(1,115)(1,347)(4,801)(4,824)
         Net flows(1,969)(2,076)(1,397)(1,718)(1,658)(5,532)(6,849)
    Change in market value, interest credited, and other    7,689 (22,913)17,277 7,179 14,463 26,775 16,006 
    Policy charges(922)(892)(848)(894)(905)(3,654)(3,539)
  Ending total account value    164,928 139,047 154,079 158,646 170,546 164,928 170,546 
Variable Annuities Account Value by Product:
     Highest Daily Suite - risk retained by Prudential (1)117,323 97,227 107,282 110,114 117,942 117,323 117,942 
     Highest Daily Suite - externally reinsured living benefits3,149 2,617 2,855 2,944 3,173 3,149 3,173 
     Other variable annuities (2)44,456 39,203 43,942 45,588 49,431 44,456 49,431 
  Ending total account value164,928 139,047 154,079 158,646 170,546 164,928 170,546 
Fixed Annuities and other products:    
  Beginning total account value    4,568 4,753 4,929 5,197 5,552 3,741 4,753 
    Sales    223 211 295 376 212 1,180 1,094 
    Full surrenders and death benefits    (21)(28)(23)(22)(26)(103)(99)
    Sales, net of full surrenders and death benefits    202 183 272 354 186 1,077 995 
    Partial withdrawals and other benefit payments(90)(98)(85)(90)(94)(362)(367)
         Net flows112 85 187 264 92 715 628 
    Interest credited and other    74 91 81 91 91 298 354 
    Policy charges(1)— — — (1)(1)(1)
  Ending total account value, gross    4,753 4,929 5,197 5,552 5,734 4,753 5,734 
    Reinsurance ceded(71)(145)(251)(374)(429)(71)(429)
  Ending total account value, net4,682 4,784 4,946 5,178 5,305 4,682 5,305 
SALES BY DISTRIBUTION CHANNEL:    
Variable and Fixed Annuities (3):  
  Insurance Agents  676 674 496 517 649 2,815 2,336 
  Wirehouses  310 310 160 199 215 1,760 884 
  Independent Marketing Organization30 43 82 61 16 36 202 
  Independent Financial Planners904 767 536 706 1,024 4,380 3,033 
  Bank Distribution  161 133 72 79 76 729 360 
        Total  2,081 1,927 1,346 1,562 1,980 9,720 6,815 
__________
(1) Includes variable annuities with "Highest Daily" optional living benefits retained by Prudential and predecessor "Lifetime Five" feature.
(2) Includes Prudential Defined Income (PDI), Legacy Protection Plus (LPP) death benefit and products without guaranteed minimum income and withdrawal benefits.
(3) Amounts represent gross sales.
Page 20


Prudential Financial, Inc.
image451.jpg
Quarterly Financial Supplement
Fourth Quarter 2020
U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020
Account Values in General Account (1):
  Beginning balance10,971 11,043 11,500 11,686 12,487 10,298 11,043 
    Premiums and deposits354 337 397 1,008 1,467 1,849 3,209 
    Full surrenders and death benefits(82)(91)(64)(73)(89)(376)(317)
         Premiums and deposits net of full surrenders and death benefits272 246 333 935 1,378 1,473 2,892 
    Partial withdrawals and other benefit payments(166)(168)(143)(150)(165)(633)(626)
         Net flows106 78 190 785 1,213 840 2,266 
    Interest credited and other70 67 70 73 191 236 401 
    Net transfers (to) from separate account(103)312 (74)(57)(47)(330)134 
    Policy charges(1)— — — (1)(1)(1)
  Ending balance, gross11,043 11,500 11,686 12,487 13,843 11,043 13,843 
Reinsurance ceded(71)(145)(251)(374)(429)(71)(429)
  Ending balance, net10,972 11,355 11,435 12,113 13,414 10,972 13,414 
Account Values in Separate Account (1):
  Beginning balance153,727 158,638 132,476 147,590 151,711 140,782 158,638 
    Premiums and deposits1,727 1,590 949 554 513 7,871 3,606 
    Full surrenders and death benefits(2,387)(2,428)(1,346)(1,738)(2,016)(8,998)(7,528)
         Premiums and deposits net of full surrenders and death benefits(660)(838)(397)(1,184)(1,503)(1,127)(3,922)
    Partial withdrawals and other benefit payments(1,303)(1,231)(1,003)(1,055)(1,276)(4,530)(4,565)
         Net flows(1,963)(2,069)(1,400)(2,239)(2,779)(5,657)(8,487)
    Change in market value, interest credited and other7,693 (22,889)17,288 7,197 14,363 26,837 15,959 
    Net transfers (to) from general account103 (312)74 57 47 330 (134)
    Policy charges(922)(892)(848)(894)(905)(3,654)(3,539)
  Ending balance158,638 132,476 147,590 151,711 162,437 158,638 162,437 
__________
(1) Premiums and deposits, and surrenders and withdrawals, are classified within the general account and separate account for purposes of this presentation based on the allocation of customer funds. For example, premiums allocated by customers to separate account investments at the time of sale, while remitted through the company's general account, are shown as separate account premium in this display, rather than as general account premium and transfers to the separate account.

Page 21


Prudential Financial, Inc.
image451.jpg
Quarterly Financial Supplement
Fourth Quarter 2020
U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL ANNUITIES LIVING BENEFIT FEATURES
(in millions)
20192020
4Q1Q2Q3Q4Q
ACCOUNT VALUE AND NET AMOUNT AT RISK (1):
Variable Annuity Account Values
  Guaranteed minimum accumulation benefits2,297 2,022 2,032 1,984 1,956 
  Guaranteed minimum withdrawal benefits353 275 306 305 322 
  Guaranteed minimum income benefits2,457 1,955 2,225 2,306 2,492 
  Guaranteed minimum withdrawal & income benefits - risk retained by Prudential133,616 113,029 124,927 128,003 136,486 
  Guaranteed minimum withdrawal & income benefits - externally reinsured3,150 2,617 2,855 2,944 3,173 
        Total141,873 119,898 132,345 135,542 144,429 
Account Values by Product Design Type
    Account Values with Auto-Rebalancing Feature - risk retained by Prudential112,269 93,336 102,783 105,449 112,811 
    Account Values with Auto-Rebalancing Feature - externally reinsured3,150 2,617 2,855 2,944 3,173 
    Account Values without Auto-Rebalancing Feature26,454 23,945 26,707 27,149 28,445 
        Total141,873 119,898 132,345 135,542 144,429 
Net Amount at Risk by Product Design Type
    Net Amount at Risk with Auto-Rebalancing Feature - risk retained by Prudential3,765 9,966 6,070 5,227 3,513 
    Net Amount at Risk without Auto-Rebalancing Feature600 1,327 795 695 509 
        Total4,365 11,293 6,865 5,922 4,022 
__________
(1) At end of period.

Page 22


Prudential Financial, Inc.
image451.jpg
Quarterly Financial Supplement
Fourth Quarter 2020
U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL ANNUITIES DEATH BENEFIT FEATURES
(in millions)
20192020
4Q1Q2Q3Q4Q
ACCOUNT VALUE AND NET AMOUNT AT RISK (1):
Variable Annuity Account Values
 Return of net deposits:
     Account value130,465 110,258 121,962 124,939 133,216 
     Net amount at risk235 1,465 366 247 208 
 Minimum return, anniversary contract value, or maximum contract value:
     Account value29,446 24,513 27,066 27,783 29,551 
     Net amount at risk2,627 6,036 3,833 3,244 2,327 
Account Values by Product Design Type
    Account Values with Auto-Rebalancing Feature115,419 95,955 105,638 108,392 115,984 
    Account Values without Auto-Rebalancing Feature44,492 38,816 43,390 44,330 46,783 
        Total159,911 134,771 149,028 152,722 162,767 
Net Amount at Risk by Product Design Type
    Net Amount at Risk with Auto-Rebalancing Feature1,238 4,501 2,309 1,795 1,145 
    Net Amount at Risk without Auto-Rebalancing Feature1,624 3,000 1,890 1,696 1,390 
        Total2,862 7,501 4,199 3,491 2,535 
__________
(1) At end of period.

Page 23


Prudential Financial, Inc.
image451.jpg
Quarterly Financial Supplement
Fourth Quarter 2020
U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020% change
Revenues (1):
  Premiums238 233 234 228 231 948 926 -2%
  Policy charges and fee income573 545 594 569 622 2,134 2,330 9%
  Net investment income577 561 544 596 613 2,247 2,314 3%
  Asset management fees, commissions and other income208 191 191 216 230 786 828 5%
     Total revenues1,596 1,530 1,563 1,609 1,696 6,115 6,398 5%
Benefits and Expenses (1):
  Insurance and annuity benefits726 755 834 729 888 2,816 3,206 14%
  Interest credited to policyholders' account balances229 209 214 211 214 830 848 2%
  Interest expense193 195 193 190 191 774 769 -1%
  Deferral of acquisition costs(225)(211)(214)(205)(237)(806)(867)-8%
  Amortization of acquisition costs81 102 87 88 90 577 367 -36%
  General and administrative expenses534 500 513 495 615 1,837 2,123 16%
    Total benefits and expenses1,538 1,550 1,627 1,508 1,761 6,028 6,446 7%
Adjusted operating income (loss) before income taxes58 (20)(64)101 (65)87 (48)-155%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses. Beginning with the second quarter of 2019, revenues and expenses exclude market experience updates.

Page 24


Prudential Financial, Inc.
image451.jpg
Quarterly Financial Supplement
Fourth Quarter 2020
U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL LIFE SUPPLEMENTARY INFORMATION
(in millions, or as otherwise noted)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020
ANNUALIZED NEW BUSINESS PREMIUMS (1):
  Term life47 40 40 34 34 200 148 
  Guaranteed Universal life26 29 34 20 11 95 94 
  Other Universal life42 30 23 20 18 155 91 
  Variable life  94 88 87 98 176 278 449 
        Total209 187 184 172 239 728 782 
ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):
   Prudential Advisors40 35 35 32 44 151 146 
   Third party distribution169 152 149 140 195 577 636 
          Total  209 187 184 172 239 728 782 
ACCOUNT VALUE ACTIVITY:
Policyholders' Account Balances (2):
  Beginning balance28,546 29,041 29,198 29,461 29,635 28,728 29,041 
    Premiums and deposits864 749 803 759 713 3,368 3,024 
    Surrenders and withdrawals(318)(319)(372)(322)(354)(1,294)(1,367)
         Net sales546 430 431 437 359 2,074 1,657 
    Benefit payments(118)(139)37 (48)(80)(455)(230)
         Net flows428 291 468 389 279 1,619 1,427 
    Interest credited and other450 217 232 213 320 139 982 
    Net transfers from separate account70 123 73 87 222 315 505 
    Policy charges(453)(474)(510)(515)(506)(1,760)(2,005)
  Ending balance29,041 29,198 29,461 29,635 29,950 29,041 29,950 
Separate Account Liabilities:
  Beginning balance33,624 35,633 29,859 34,863 37,342 29,796 35,633 
    Premiums and deposits505 637 532 598 790 1,834 2,557 
    Surrenders and withdrawals(311)(251)(241)(231)(243)(1,101)(966)
         Net sales194 386 291 367 547 733 1,591 
    Benefit payments(111)(124)(103)(109)(72)(410)(408)
         Net flows83 262 188 258 475 323 1,183 
    Change in market value, interest credited and other2,251 (5,654)5,150 2,582 4,116 6,814 6,194 
    Net transfers to general account(70)(123)(73)(87)(222)(315)(505)
    Policy charges(255)(259)(261)(274)(283)(985)(1,077)
  Ending balance35,633 29,859 34,863 37,342 41,428 35,633 41,428 
NET FACE AMOUNT IN FORCE (in billions) (3):
  Term life233 231 234 236 237 
  Guaranteed Universal life67 67 68 68 68 
  Other Universal life30 30 30 29 30 
  Variable life133 128 132 134 138 
        Total463 456 464 467 473 
__________
(1) Excludes corporate-owned life insurance.
(2) Includes fixed rate funds, alliance deposits, supplementary contracts and deferred revenues on variable products.
(3) At end of period; net of reinsurance. Net Face Amount In Force excludes certain policies considered to be non-core business drivers impacting Adjusted Operating Income for Individual Life. Policies within the Closed Block Division are not reported through Individual Life.
Page 25



Prudential Financial, Inc.
image451.jpg
Quarterly Financial Supplement
Fourth Quarter 2020
U.S. BUSINESSES - STATEMENTS OF OPERATIONS - ASSURANCE IQ DIVISION
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020
Revenues (1):
  Premiums— — — — — — — 
  Policy charges and fee income— — — — — — — 
  Net investment income— — — — 
  Asset management fees, commissions and other income101 60 58 75 196 101 389 
     Total revenues101 60 59 75 197 101 391 
Benefits and Expenses (1):
  Insurance and annuity benefits— — — — — — — 
  Interest credited to policyholders' account balances— — — — — — — 
  Interest expense
  Deferral of acquisition costs— — — — — — — 
  Amortization of acquisition costs— — — — — — — 
  General and administrative expenses109 82 74 104 214 109 474 
    Total benefits and expenses110 83 75 105 216 110 479 
Adjusted operating loss before income taxes(9)(23)(16)(30)(19)(9)(88)
__________
(1) Revenues exclude changes in the fair value of contingent consideration associated with the Assurance IQ acquisition. Benefits and expenses exclude certain components of the Assurance IQ acquisition which are recognized as compensation expense over the requisite service periods. Assurance IQ was acquired in October of 2019.

Page 26



Prudential Financial, Inc.
image451.jpg
Quarterly Financial Supplement
Fourth Quarter 2020
COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020% change
Revenues (1):
  Premiums3,732 4,344 3,626 4,049 3,808 15,282 15,827 4%
  Policy charges and fee income84 88 125 74 87 329 374 14%
  Net investment income1,300 1,167 1,209 1,276 1,330 4,944 4,982 1%
  Asset management fees, commissions and other income86 37 124 82 150 381 393 3%
     Total revenues5,202 5,636 5,084 5,481 5,375 20,936 21,576 3%
Benefits and Expenses (1):
  Insurance and annuity benefits3,183 3,712 3,155 3,524 3,363 12,971 13,754 6%
  Interest credited to policyholders' account balances213 222 204 215 210 876 851 -3%
  Interest expense25 -68%
  Deferral of acquisition costs(353)(392)(280)(411)(333)(1,494)(1,416)5%
  Amortization of acquisition costs280 317 347 275 265 1,116 1,204 8%
  General and administrative expenses1,127 1,078 965 1,102 1,078 4,330 4,223 -2%
    Total benefits and expenses4,454 4,940 4,393 4,706 4,585 17,824 18,624 4%
Adjusted operating income before income taxes748 696 691 775 790 3,112 2,952 -5%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to noncontrolling interests. Beginning with the second quarter of 2019, revenues and expenses exclude market experience updates.

Page 27


Prudential Financial, Inc.
image451.jpg
Quarterly Financial Supplement
Fourth Quarter 2020
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - LIFE PLANNER
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020% change
Revenues (1):
  Premiums1,801 2,182 1,758 1,944 1,856 7,410 7,740 4%
  Policy charges and fee income51 52 90 41 54 192 237 23%
  Net investment income477 443 430 501 541 1,807 1,915 6%
  Asset management fees, commissions and other income48 41 47 62 80 196 230 17%
     Total revenues2,377 2,718 2,325 2,548 2,531 9,605 10,122 5%
Benefits and Expenses (1):
  Insurance and annuity benefits1,529 1,873 1,522 1,707 1,656 6,298 6,758 7%
  Interest credited to policyholders' account balances47 60 47 56 50 207 213 3%
  Interest expense13 -62%
  Deferral of acquisition costs(178)(205)(144)(212)(169)(752)(730)3%
  Amortization of acquisition costs121 147 186 113 116 493 562 14%
  General and administrative expenses511 479 411 469 451 1,913 1,810 -5%
    Total benefits and expenses2,032 2,356 2,023 2,134 2,105 8,172 8,618 5%
Adjusted operating income before income taxes345 362 302 414 426 1,433 1,504 5%
__________
(1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to noncontrolling interests. Beginning with the second quarter of 2019, revenues and expenses exclude market experience updates.

Page 28


Prudential Financial, Inc.
image451.jpg
Quarterly Financial Supplement
Fourth Quarter 2020
STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - GIBRALTAR LIFE AND OTHER
(in millions)
20192020Year-to-date
4Q1Q2Q3Q4Q20192020% change
Revenues (1):
  Premiums1,931 2,162 1,868 2,105 1,952 7,872 8,087 3%
  Policy charges and fee income33 36 35 33 33 137 137 —%
  Net investment income823 724 779 775 789 3,137 3,067 -2%
  Asset management fees, commissions and other income38