v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 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 June 30, 2026
Select revenues and significant benefits and expenses, on an adjusted operating income basis, by segmentPGIMRetirement
(1)		Group InsuranceIndividual Life(1)U.S. Legacy Products
(1)		International BusinessesCorporate and Other(3)Total Adjusted Operating IncomeTotal Reconciling ItemsTotal GAAP Revenues and Pre-tax Income
(in millions)
Revenues:
Premiums$0 $1,952 $1,360 $232 $31 $2,755 $(5)$6,325 $555 $6,880 
Policy charges and fee income0 33 178 460 370 114 (17)1,138 109 1,247 
Net investment income73 2,096 146 377 472 1,643 345 5,152 631 5,783 
Asset management fees, commissions and other income1,034 92 24 92 297 179 (178)1,540 211 1,751 
Total revenues1,107 4,173 1,708 1,161 1,170 4,691 145 14,155 1,506 15,661 
Benefits and expenses:
Policyholders' benefits0 2,642 1,208 448 322 2,362 (4)6,978 
Interest credited to policyholders' account balances0 690 32 163 68 425 2 1,380 
Interest expense24 7 4 104 179 6 217 541 
Deferral of acquisition costs0 (177)(25)(222)(4)(240)33 (635)
Amortization of DAC0 89 2 111 53 179 (16)418 
Operating expenses(4)469 145 199 110 88 535 188 1,734 
Variable expenses(4)320 232 136 269 213 376 4 1,550 
Other benefits and expenses(5)0 153 (3)2 17 193 0 362 
Total benefits and expenses813 3,781 1,553 985 936 3,836 424 12,328 
Total pre-tax income$294 $392 $155 $176 $234 $855 $(279)$1,827 $(649)$1,178 
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments(655)
Change in value of market risk benefits, net of related hedging gains (losses)(71)
Market experience updates(20)
Divested and Run-off Businesses:
Closed Block division(12)
Other Divested and Run-off Businesses135 
Equity in earnings of joint ventures and other operating entities, and earnings attributable to noncontrolling interests and redeemable noncontrolling interests(25)
Other adjustments(1)
Total reconciling items(649)
Total GAAP pre-tax income$1,178 
Three Months Ended June 30, 2025
Select revenues and significant benefits and expenses, on an adjusted operating income basis, by segmentPGIMRetirement
(1)		Group InsuranceIndividual Life(1)(2)U.S. Legacy Products
(1)		International BusinessesCorporate and Other(3)Total Adjusted Operating IncomeTotal Reconciling ItemsTotal GAAP Revenues and Pre-tax Income
(in millions)
Revenues:
Premiums$0 $2,127 $1,349 $232 $16 $2,709 $(7)$6,426 $556 $6,982 
Policy charges and fee income0 25 184 354 430 92 (15)1,070 179 1,249 
Net investment income59 1,819 133 348 460 1,451 330 4,600 626 5,226 
Asset management fees, commissions and other income984 105 21 80 325 147 (252)1,410 (1,141)269 
Total revenues1,043 4,076 1,687 1,014 1,231 4,399 56 13,506 220 13,726 
Benefits and expenses:
Policyholders' benefits0 2,809 1,230 418 284 2,445 (1)7,185 
Interest credited to policyholders' account balances0 512 32 143 67 369 12 1,135 
Interest expense24 9 5 102 170 1 215 526 
Deferral of acquisition costs0 (206)(4)(209)(12)(297)39 (689)
Amortization of DAC0 68 4 104 57 174 (15)392 
Operating expenses(4)477 138 186 156 103 467 107 1,634 
Variable expenses(4)313 226 109 247 228 446 (21)1,548 
Other benefits and expenses(5)0 123 0 (29)(17)33 0 110 
Total benefits and expenses814 3,679 1,562 932 880 3,638 336 11,841 
Total pre-tax income$229 $397 $125 $82 $351 $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 and redeemable noncontrolling interests(18)
Other adjustments(1)
Total reconciling items(925)
Total GAAP pre-tax income$740 
Six Months Ended June 30, 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 $5,197 $2,750 $466 $56 $5,704 $(10)$14,163 $1,079 $15,242 
Policy charges and fee income
0 64 364 891 728 231 (32)2,246 133 2,379 
Net investment income
107 4,181 284 745 947 3,250 646 10,160 1,288 11,448 
Asset management fees, commissions and other income
2,040 188 44 180 577 293 (502)2,820 (702)2,118 
Total revenues
2,147 9,630 3,442 2,282 2,308 9,478 102 29,389 1,798 31,187 
Benefits and expenses:
Policyholders’ benefits
0 6,577 2,526 901 656 5,022 (7)15,675 
Interest credited to policyholders’ account balances
0 1,338 65 310 126 839 6 2,684 
Interest expense
49 18 9 209 353 9 433 1,080 
Deferral of acquisition costs0 (351)(25)(438)(7)(503)65 (1,259)
Amortization of DAC0 168 4 219 105 352 (33)815 
Operating expenses(4)
994 290 405 225 177 1,098 274 3,463 
Variable expenses(4)
620 448 268 538 436 776 (27)3,059 
Other benefits and expenses(5)
0 178 (3)3 21 220 0 419 
Total benefits and expenses
1,663 8,666 3,249 1,967 1,867 7,813 711 25,936 
Total pre-tax income
$484 $964 $193 $315 $441 $1,665 $(609)$3,453 $(1,542)$1,911 
Reconciling items:
Realized investment gains (losses), net, and related charges and adjustments
(1,276)
Change in value of market risk benefits, net of related hedging gains (losses)(366)
Market experience updates(5)
Divested and Run-off Businesses:
Closed Block division(23)
Other Divested and Run-off Businesses199 
Equity in earnings of joint ventures and other operating entities, and earnings attributable to noncontrolling interests and redeemable noncontrolling interests(67)
Other adjustments(4)
Total reconciling items
(1,542)
Total GAAP pre-tax income(6)
$1,911 
Six Months Ended June 30, 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 $3,873 $2,745 $469 $35 $5,766 $(16)$12,872 $1,110 $13,982 
Policy charges and fee income
0 55 381 784 808 180 (30)2,178 228 2,406 
Net investment income
79 3,577 267 708 908 2,920 660 9,119 1,237 10,356 
Asset management fees, commissions and other income
1,949 236 42 164 662 271 (575)2,749 (2,297)452 
Total revenues
2,028 7,741 3,435 2,125 2,413 9,137 39 26,918 278 27,196 
Benefits and expenses:
Policyholders’ benefits
0 5,249 2,526 931 589 5,226 (9)14,512 
Interest credited to policyholders’ account balances
0 986 67 289 136 716 24 2,218 
Interest expense
45 24 10 213 334 0 422 1,048 
Deferral of acquisition costs0 (414)(4)(399)(25)(603)72 (1,373)
Amortization of DAC0 132 6 210 112 339 (31)768 
Operating expenses(4)
981 275 380 265 192 903 262 3,258 
Variable expenses(4)
617 468 236 495 470 909 (6)3,189 
Other benefits and expenses(5)
0 98 0 (13)(10)38 0 113 
Total benefits and expenses
1,643 6,818 3,221 1,991 1,798 7,528 734 23,733 
Total pre-tax income
$385 $923 $214 $134 $615 $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 and redeemable noncontrolling interests(15)
Other adjustments27 
Total reconciling items
(1,525)
Total GAAP pre-tax income(6)
$1,660 
__________
(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.”
June 30,
2026		December 31,
2025
(in millions)
Assets by segment:
PGIM$39,708 $39,103 
U.S. Businesses:
Retirement(1)227,007 213,222 
Group Insurance42,226 41,292 
Individual Life(1)
92,174 87,898 
U.S. Legacy Products(1)
135,263 136,383 
Total U.S. Businesses(1)
496,670 478,795 
International Businesses185,969 187,770 
Corporate and Other(1)
14,437 19,977 
Closed Block division46,770 48,095 
Total Assets per Unaudited Interim Consolidated Financial Statements
$783,554 $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
June 30,		Six Months Ended
June 30,
2026202520262025
(in millions)
PGIM segment intersegment revenues$240 $222 $476 $446 
 
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,
2026202520262025
(in millions)
Asset-based management fees$879 $841 $1,739 $1,695 
Performance-based incentive fees24 25 37 32 
Other fees116 116 239 239 
Total asset management and service fees$1,019 $982 $2,015 $1,966