v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
 
Segments
 
Effective January 1, 2026, the Company made the following segment reporting changes to isolate the impacts of certain discontinued products that were previously commingled with the results of actively sold products that more closely reflect the Company’s strategic focus. These changes are consistent with the Company’s recent organizational changes and strategy and reflect how the CODM assesses performance and allocates resources:

•“U.S. Legacy Products” segment: (i) traditional variable annuities with guaranteed living benefit riders and certain other annuity products, previously included in the former Individual Retirement Strategies segment, and (ii) guaranteed universal life policies, previously included in the Individual Life segment, have been combined into a new reportable segment named “U.S. Legacy Products.” This segment represents run-off blocks of business consisting of products that are no longer being sold in U.S. markets and will be managed with a focus on reducing risk and optimizing value.

•“Retirement” segment: The blocks of business in the former Individual Retirement Strategies segment that were not moved into the U.S. Legacy Products segment, discussed above, consisting primarily of registered index-linked annuity and fixed annuity products, and the products previously included in the former Institutional Retirement Strategies segment have been combined into a new reportable segment named “Retirement.” This combined segment better represents the Company’s strategic management, growth trajectory, and resource allocation policies.

•“Individual Life” segment: There were no other impacts to this segment other than the transfer of the guaranteed universal life policies, discussed above. The remaining blocks of business contained within this segment primarily consist of term, indexed universal life, and variable universal life products.

These segment reporting changes are being applied retrospectively and do not have an impact on any of the Company’s previously issued Consolidated Financial Statements.

The Company’s principal operations now consist of PGIM (the Company’s global investment management business), the U.S. Businesses (consisting of Retirement, Group Insurance, Individual Life and U.S. Legacy Products), 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, 2025.
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, 2025. 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. 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.

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:
 
•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.

In addition, under U.S. GAAP, policyholder liabilities associated with fixed and variable indexed annuity products included in the Company’s Retirement segment are recorded in “Policyholders’ account balances,” and include both the contract value that has accrued to the benefit of the policyholder and the fair value of embedded derivative instruments associated with the index-linked features for these products. The change in the liability for these products is measured utilizing a valuation methodology required under U.S GAAP and includes the fair value of all index credits for the current term and future projected renewals of the policy. For the purpose of measuring segment performance, however, adjusted operating income reflects only the change in the liability associated with the current term elected by the policyholder, which is the component of the liability the Company hedges based on current contractual index-crediting terms, and which is offset by the change in the value of the corresponding hedge assets. Adjusted operating income excludes the change in the liability associated with all future projected renewals the Company does not hedge, consistent with the Company and policyholder optionality that exists at renewal. This adjustment is included in “Realized investment gains (losses), net, and related charges and adjustments,” as listed above.

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, 2025.

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.
 Three Months Ended March 31, 2026
Select revenues and significant benefits and expenses, on an adjusted operating income basis, by segment
PGIM
Retirement
(1)
Group Insurance
Individual Life(1)
U.S. Legacy Products
(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 $3,245 $1,390 $234 $25 $2,949 $(5)$7,838 $524 $8,362 
Policy charges and fee income
0 31 186 431 358 117 (15)1,108 24 1,132 
Net investment income
34 2,085 138 368 475 1,607 301 5,008 657 5,665 
Asset management fees, commissions and other income
1,006 96 20 88 280 114 (324)1,280 (913)367 
Total revenues
1,040 5,457 1,734 1,121 1,138 4,787 (43)15,234 292 15,526 
Benefits and expenses:
Policyholders’ benefits
0 3,935 1,318 453 334 2,660 (3)8,697 
Interest credited to policyholders’ account balances
0 648 33 147 58 414 4 1,304 
Interest expense
25 11 5 105 174 3 216 539 
Deferral of acquisition costs0 (174)0 (216)(3)(263)32 (624)
Amortization of DAC0 79 2 108 52 173 (17)397 
Operating expenses(4)
525 145 206 115 89 563 86 1,729 
Variable expenses(4)
300 216 132 269 223 400 (31)1,509 
Other benefits and expenses(5)
0 25 0 1 4 27 0 57 
Total benefits and expenses
850 4,885 1,696 982 931 3,977 287 13,608 
Total pre-tax income
$190 $572 $38 $139 $207 $810 $(330)$1,626 $(893)$733 
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments
(621)
Change in value of market risk benefits, net of related hedging gains (losses)(295)
Market experience updates15 
Divested and Run-off Businesses:
Closed Block division(11)
Other Divested and Run-off Businesses64 
Equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests
(42)
Other adjustments(3)
Total reconciling items
(893)
Total GAAP pre-tax income(6)
$733 
 Three Months Ended March 31, 2025
Select revenues and significant benefits and expenses, on an adjusted operating income basis, by segment
PGIM
Retirement
(1)(2)
Group Insurance
Individual Life(1)(2)
U.S. Legacy Products
(1)(2)
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 $1,746 $1,396 $237 $19 $3,057 $(9)$6,446 $554 $7,000 
Policy charges and fee income
0 30 197 430 378 88 (15)1,108 49 1,157 
Net investment income
20 1,758 134 360 448 1,469 330 4,519 611 5,130 
Asset management fees, commissions and other income
965 131 21 84 337 124 (323)1,339 (1,156)183 
Total revenues
985 3,665 1,748 1,111 1,182 4,738 (17)13,412 58 13,470 
Benefits and expenses:
Policyholders’ benefits
0 2,440 1,296 513 305 2,781 (8)7,327 
Interest credited to policyholders’ account balances
0 474 35 146 69 347 12 1,083 
Interest expense
21 15 5 111 164 (1)207 522 
Deferral of acquisition costs0 (208)0 (190)(13)(306)33 (684)
Amortization of DAC0 64 2 106 55 165 (16)376 
Operating expenses(4)
504 137 194 109 89 436 155 1,624 
Variable expenses(4)
304 242 127 248 242 463 15 1,641 
Other benefits and expenses(5)
0 (25)0 16 7 5 0 3 
Total benefits and expenses
829 3,139 1,659 1,059 918 3,890 398 11,892 
Total pre-tax income
$156 $526 $89 $52 $264 $848 $(415)$1,520 $(600)$920 
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments
(246)
Change in value of market risk benefits, net of related hedging gains (losses)(351)
Market experience updates39 
Divested and Run-off Businesses:
Closed Block division(22)
Other Divested and Run-off Businesses(51)
Equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests
3 
Other adjustments28 
Total reconciling items
(600)
Total GAAP pre-tax income(6)
$920 
__________
(1)The Retirement, Individual Life and U.S. Legacy Products 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)Reflects the segment reporting changes effective in the first quarter of 2026, as discussed above. 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, Individual Life, U.S. Legacy Products 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.
(6)Reflects “Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities.”
March 31,
2026		December 31,
2025
(in millions)
Assets by segment:
PGIM$39,470 $39,103 
U.S. Businesses:
Retirement(1)215,991 213,222 
Group Insurance40,919 41,292 
Individual Life(1)
86,138 87,898 
U.S. Legacy Products(1)
131,927 136,383 
Total U.S. Businesses(1)
474,975 478,795 
International Businesses186,593 187,770 
Corporate and Other(1)
16,796 19,977 
Closed Block division47,562 48,095 
Total Assets per Unaudited Interim Consolidated Financial Statements
$765,396 $773,740 
__________
(1)Reflects the segment reporting changes effective in the first quarter of 2026, as discussed above. Prior period amounts have been updated to conform to current period presentation.


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
March 31,
 20262025
 (in millions)
PGIM segment intersegment revenues$236 $224 
 
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 March 31,
20262025
 (in millions)
Asset-based management fees$860 $854 
Performance-based incentive fees13 7 
Other fees123 123 
Total asset management and service fees$996 $984