v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
 
Segments
 
The Company’s principal operations consist of PGIM (the Company’s global investment management business), the U.S. Businesses (consisting of the Retirement Strategies, Group Insurance and Individual Life businesses), the International Businesses, the Closed Block division, and the Company’s Corporate and Other operations. The Closed Block division is accounted for as a divested business that is reported separately from the Divested and Run-off Businesses that are included in Corporate and Other operations. Divested and Run-off Businesses consist of businesses that have been, or will be, sold or
exited, including businesses that have been placed in wind-down status that do not qualify for “discontinued operations” accounting treatment under U.S. GAAP. The Company’s Corporate and Other operations include corporate items and initiatives that are not allocated to business segments, as well as the Divested and Run-off Businesses described above. For additional information regarding these segments, see Note 23 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Effective in the first quarter of 2025, consistent with changes to the Company’s internal management structure, the Company’s International Businesses are reflected as a single operating and reportable segment, which is consistent with how the CODM now assesses its performance and allocates resources. Prior to the first quarter of 2025, International Businesses consisted of the Life Planner and Gibraltar Life and Other operating segments, each of which was a reportable segment under U.S. GAAP. The change has been applied retrospectively and did not have any impact on the Company’s Unaudited Interim Consolidated Financial Statements contained herein or to any previously issued financial statements.

Segment Accounting Policies. The accounting policies of the segments are the same as those described in Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Results for each segment include earnings on attributed equity established at a level which management considers necessary to support each segment’s risks. Operating expenses specifically identifiable to a particular segment are allocated to that segment as incurred.

Following an annual review of its internal expense allocations, the Company implemented an allocation update that will impact segment results; however, there will be no impact to the Company’s consolidated results. Effective in the first quarter of 2025, operating expenses not identifiable to a specific segment that are incurred in connection with the generation of segment revenues are generally allocated using a proportional allocation measure such as headcount, segment-level support or other financial measures. Prior to the first quarter of 2025, these expenses were generally allocated based upon the segment’s historical percentage of general and administrative expenses.

Adjusted Operating Income
 
The Company analyzes the operating performance of each segment using “adjusted operating income.” Adjusted operating income does not equate to “Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities” or “Net income (loss)” as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the chief executive officer, who is the Company’s CODM, and is the measure of segment performance presented below. The CODM uses adjusted operating income to (1) evaluate segment performance; (2) allocate resources and capital, predominantly during the annual budgeting and planning processes; and (3) consider variances to pre-established targets during the compensation process. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and the Company’s definition of adjusted operating income may differ from that used by other companies. The Company, however, believes that the presentation of adjusted operating income as measured for management purposes enhances the understanding of results of operations by highlighting the results from ongoing operations and the underlying profitability factors of its businesses.
Adjusted operating income is calculated by adjusting each segment’s “Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities” for the following items which are important to an understanding of overall results of operations, and are described in greater detail below:
 
•Realized investment gains (losses), net, and related charges and adjustments;
•Change in value of market risk benefits, net of related hedging gains (losses);
•Market experience updates;
•Divested and Run-off Businesses;
•Equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests; and
•Other adjustments.

For additional information regarding these reconciling items, see Note 23 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, during the fourth quarter of 2024, the Company identified an immaterial error in the application of adjusted operating income, which resulted in an overstatement thereof for indexed variable and fixed annuity products within the Retirement Strategies segment in the first three quarters of 2024. As a result, the Company voluntarily revised its historical adjusted operating income for the relevant periods, resulting in a decrease in pre-tax adjusted operating income of $47 million and $81 million for the three and six months ended June 30, 2024, respectively.

Reconciliation of select financial information

The tables below present certain financial information that is regularly provided to the CODM for the Company’s segments, including revenues and significant benefits and expenses, on an adjusted operating income basis, as well as assets by segment, and the reconciliation of the segment totals to amounts reported in the Unaudited Interim Consolidated Financial Statements. Prior periods have been updated to reflect the adoption of ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.
 
Three Months Ended June 30, 2025
Retirement Strategies
Select revenues and significant benefits and expenses, on an adjusted operating income basis, by segment
PGIM
Institutional Retirement Strategies
Individual Retirement Strategies (1)
Group Insurance
Individual Life(1)
International Businesses
Corporate and Other(3)
Total Adjusted Operating Income
Total Reconciling Items
Total GAAP Revenues and Pre-tax Income
(in millions)
Revenues:
Premiums
$0 $2,126 $17 $1,349 $232 $2,709 $(7)$6,426 $556 $6,982 
Policy charges and fee income
0 5 273 184 531 92 (15)1,070 179 1,249 
Net investment income
59 1,248 682 133 697 1,451 330 4,600 626 5,226 
Asset management fees, commissions and other income
984 128 349 21 33 147 (252)1,410 (1,141)269 
Total revenues
1,043 3,507 1,321 1,687 1,493 4,399 56 13,506 220 13,726 
Benefits and expenses:
Policyholders' benefits
0 2,707 127 1,230 677 2,445 (1)7,185 
Interest credited to policyholders' account balances
0 188 355 32 179 369 12 1,135 
Interest expense
24 15 12 5 254 1 215 526 
Deferral of acquisition costs0 (34)(173)(4)(220)(297)39 (689)
Amortization of DAC0 4 118 4 107 174 (15)392 
Operating expenses(4)
477 68 160 186 169 467 107 1,634 
Variable expenses(4)
313 39 395 109 267 446 (21)1,548 
Other benefits and expenses(5)
0 124 1 0 (48)33 0 110 
Total benefits and expenses
814 3,111 995 1,562 1,385 3,638 336 11,841 
Total pre-tax income
$229 $396 $326 $125 $108 $761 $(280)$1,665 $(925)$740 
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments
(516)
Change in value of market risk benefits, net of related hedging gains (losses)(426)
Market experience updates42 
Divested and Run-off Businesses:
Closed Block division(18)
Other Divested and Run-off Businesses12 
Equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests
(18)
Other adjustments(1)
Total reconciling items
(925)
Total GAAP pre-tax income
$740 
 
Three Months Ended June 30, 2024
Retirement Strategies
Select revenues and significant benefits and expenses, on an adjusted operating income basis, by segment
PGIM
Institutional Retirement Strategies
Individual Retirement Strategies (1)(2)
Group Insurance
Individual Life(1)
International Businesses
Corporate and Other(3)
Total Adjusted Operating Income
Total Reconciling Items
Total GAAP Revenues and Pre-tax Income
(in millions)
Revenues:
Premiums
$0 $2,758 $11 $1,272 $241 $3,002 $(7)$7,277 $543 $7,820 
Policy charges and fee income
0 8 312 165 510 80 (14)1,061 24 1,085 
Net investment income
14 1,142 496 128 762 1,390 286 4,218 631 4,849 
Asset management fees, commissions and other income
949 133 435 21 16 40 (301)1,293 (164)1,129 
Total revenues
963 4,041 1,254 1,586 1,529 4,512 (36)13,849 1,034 14,883 
Benefits and expenses:
Policyholders' benefits
0 3,718 39 1,140 787 2,446 (7)8,123 
Interest credited to policyholders' account balances
0 153 245 36 209 288 21 952 
Interest expense
26 9 19 4 250 (2)174 480 
Deferral of acquisition costs0 (15)(164)(4)(219)(268)56 (614)
Amortization of DAC0 2 98 2 110 161 (10)363 
Operating expenses(4)
445 60 142 185 118 428 133 1,511 
Variable expenses(4)
286 20 448 102 266 399 (32)1,489 
Other benefits and expenses(5)
0 (456)(12)0 95 358 0 (15)
Total benefits and expenses
757 3,491 815 1,465 1,616 3,810 335 12,289 
Total pre-tax income
$206 $550 $439 $121 $(87)$702 $(371)$1,560 $(145)$1,415 
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments
175 
Change in value of market risk benefits, net of related hedging gains (losses)(297)
Market experience updates47 
Divested and Run-off Businesses:
Closed Block division(60)
Other Divested and Run-off Businesses38 
Equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests
(43)
Other adjustments(5)
Total reconciling items
(145)
Total GAAP pre-tax income
$1,415 
 
Six Months Ended June 30, 2025
Retirement Strategies
Select revenues and significant benefits and expenses, on an adjusted operating income basis, by segment
PGIM
Institutional Retirement Strategies
Individual Retirement Strategies (1)
Group Insurance
Individual Life(1)
International Businesses
Corporate and Other(3)
Total Adjusted Operating Income
Total Reconciling Items
Total GAAP Revenues and Pre-tax Income
(in millions)
Revenues:
Premiums
$0 $3,871 $37 $2,745 $469 $5,766 $(16)$12,872 $1,110 $13,982 
Policy charges and fee income
0 12 563 381 1,072 180 (30)2,178 228 2,406 
Net investment income
79 2,491 1,311 267 1,391 2,920 660 9,119 1,237 10,356 
Asset management fees, commissions and other income
1,949 238 748 42 76 271 (575)2,749 (2,297)452 
Total revenues
2,028 6,612 2,659 3,435 3,008 9,137 39 26,918 278 27,196 
Benefits and expenses:
Policyholders' benefits
0 5,144 157 2,526 1,468 5,226 (9)14,512 
Interest credited to policyholders' account balances
0 370 680 67 361 716 24 2,218 
Interest expense
45 32 25 10 514 0 422 1,048 
Deferral of acquisition costs0 (61)(355)(4)(422)(603)72 (1,373)
Amortization of DAC0 10 227 6 217 339 (31)768 
Operating expenses(4)
981 139 304 380 289 903 262 3,258 
Variable expenses(4)
617 71 824 236 538 909 (6)3,189 
Other benefits and expenses(5)
0 99 7 0 (31)38 0 113 
Total benefits and expenses
1,643 5,804 1,869 3,221 2,934 7,528 734 23,733 
Total pre-tax income
$385 $808 $790 $214 $74 $1,609 $(695)$3,185 $(1,525)$1,660 
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments
(762)
Change in value of market risk benefits, net of related hedging gains (losses)(777)
Market experience updates81 
Divested and Run-off Businesses:
Closed Block division(40)
Other Divested and Run-off Businesses(39)
Equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests
(15)
Other adjustments27 
Total reconciling items
(1,525)
Total GAAP pre-tax income
$1,660 
 
Six Months Ended June 30, 2024
Retirement Strategies
Select revenues and significant benefits and expenses, on an adjusted operating income basis, by segment
PGIM
Institutional Retirement Strategies
Individual Retirement Strategies (1)(2)
Group Insurance
Individual Life(1)
International Businesses
Corporate and Other(3)
Total Adjusted Operating Income
Total Reconciling Items
Total GAAP Revenues and Pre-tax Income
(in millions)
Revenues:
Premiums
$0 $13,055 $39 $2,570 $487 $6,141 $(9)$22,283 $1,074 $23,357 
Policy charges and fee income
0 14 618 340 1,013 160 (28)2,117 24 2,141 
Net investment income
(29)2,234 940 264 1,568 2,802 559 8,338 1,275 9,613 
Asset management fees, commissions and other income
1,982 276 878 46 41 122 (528)2,817 464 3,281 
Total revenues
1,953 15,579 2,475 3,220 3,109 9,225 (6)35,555 2,837 38,392 
Benefits and expenses:
Policyholders' benefits
0 14,576 79 2,389 1,637 5,213 (12)23,882 
Interest credited to policyholders' account balances
0 307 446 76 415 567 43 1,854 
Interest expense
50 26 33 6 550 (3)347 1,009 
Deferral of acquisition costs(1)(34)(314)(10)(414)(561)73 (1,261)
Amortization of DAC1 4 191 3 226 320 (20)725 
Operating expenses(4)
939 123 287 371 301 884 438 3,343 
Variable expenses(4)
589 45 872 219 517 820 (69)2,993 
Other benefits and expenses(5)
0 (459)2 0 85 387 0 15 
Total benefits and expenses
1,578 14,588 1,596 3,054 3,317 7,627 800 32,560 
Total pre-tax income
$375 $991 $879 $166 $(208)$1,598 $(806)$2,995 $(190)$2,805 
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments
112 
Change in value of market risk benefits, net of related hedging gains (losses)(174)
Market experience updates15 
Divested and Run-off Businesses:
Closed Block division(63)
Other Divested and Run-off Businesses3 
Equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests
(70)
Other adjustments(13)
Total reconciling items
(190)
Total GAAP pre-tax income
$2,805 
__________
(1)The Individual Retirement Strategies and Individual Life segments’ results reflect DAC as if the business is a stand-alone operation. The elimination of intersegment costs capitalized in accordance with this policy is included in consolidating adjustments within Corporate and Other operations.
(2)The amounts for the three and six months ended June 30, 2024 reflect the correction of an error related to indexed variable and fixed annuity products within the Individual Retirement Strategies segment. See “—Adjusted Operating Income” above for additional information. Prior period amounts have been updated to conform to current period presentation.
(3)Corporate and Other operations, through Prudential Advisors, generates fee revenues from the sale and distribution of certain insurance, annuity and investment products offered by Prudential and third parties.
(4)“Operating expenses” includes amounts related to salaries, employee benefits, occupancy, technology, consulting, external and contracted services, legal, corporate charges, costs for initiatives, and other miscellaneous expenses. “Variable expenses” includes commissions, certain compensation related to levels of investment performance, premium taxes and other fees related to sales of certain insurance and investment products.
(5)“Other benefits and expenses” primarily includes: (i) the change in estimates of liability for future policy benefits, which can be either positive or negative, for Retirement Strategies, Individual Life and International Businesses; (ii) dividends to policyholders for Individual Life and International Businesses, which are included in adjusted operating income; and (iii) dividends to policyholders in the Closed Block Division, which are not included in adjusted operating income.
June 30,
2025		December 31,
2024
(in millions)
Assets by segment:
PGIM$37,454 $36,044 
U.S. Businesses:
Institutional Retirement Strategies130,095 126,842 
Individual Retirement Strategies153,867 150,151 
Retirement Strategies283,962 276,993 
Group Insurance40,408 39,340 
Individual Life125,793 122,590 
Total U.S. Businesses450,163 438,923 
International Businesses
191,258 180,038 
Corporate and Other31,619 31,767 
Closed Block division48,458 48,815 
Total assets per Unaudited Interim Consolidated Financial Statements$758,952 $735,587 

Intersegment revenues

Management has determined the intersegment revenues with reference to market rates. Intersegment revenues are eliminated within consolidation in Corporate and Other operations. The PGIM segment revenues include intersegment revenues, primarily consisting of asset-based management and administration fees, as follows: 

 Three Months Ended
June 30,		Six Months Ended
June 30,
 2025202420252024
 (in millions)
PGIM segment intersegment revenues$222 $204 $446 $411 
 
Segments may also enter into internal derivative contracts with other segments. For adjusted operating income, each segment accounts for the internal derivative results consistent with the manner in which that segment accounts for other similar external derivatives.

Asset management and service fees

The table below presents asset management and service fees, predominantly related to investment management activities, for the periods indicated:

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
 (in millions)
Asset-based management fees$841 $853 $1,695 $1,685 
Performance-based incentive fees25 19 32 61 
Other fees116 129 239 254 
Total asset management and service fees$982 $1,001 $1,966 $2,000