8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________

  FORM 8-K

___________________________

CURRENT REPORT

 Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 4, 2020

 ___________________________

PRUDENTIAL FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

 ___________________________

New Jersey	001-16707	22-3703799
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)

751 Broad Street

Newark, NJ 07102

(Address of principal executive offices and zip code)

(973) 802-6000

(Registrant’s telephone number, including area code)

 ___________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, Par Value $.01	PRU	New York Stock Exchange
5.75% Junior Subordinated Notes	PJH	New York Stock Exchange
5.70% Junior Subordinated Notes	PRH	New York Stock Exchange
5.625% Junior Subordinated Notes	PRS	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

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Item 2.02    Results of Operations and Financial Condition.

Prudential Financial, Inc. (the "Company") furnishes herewith, as Exhibit 99.1, a news release announcing full year and fourth quarter 2019 results.

Item 7.01    Regulation FD Disclosure.

A.	Quarterly Financial Supplement. The Company furnishes herewith, as Exhibit 99.2, the Quarterly Financial Supplement for fourth quarter 2019.
B.	Conference Call and Related Materials. Members of the Company's senior management will hold a conference call on Wednesday, February 5, 2020 at 11:00 A.M. ET, to discuss the Company's fourth quarter 2019 results. Related materials are available on the Company's Investor Relations website at www.investor.prudential.com.
C.	Dividend Declaration. Today the Company announced the declaration of a quarterly dividend of $1.10 per share of Common Stock, payable on March 12, 2020, to shareholders of record as of February 18, 2020.

Investors and others should note that the Company routinely uses its Investor Relations website to post presentations to investors and other important information, including information that may be deemed material to investors. Accordingly, the Company encourages investors and others interested in the Company to review the information that it shares at www.investor.prudential.com. Interested parties may register to receive automatic email alerts when presentations and other information are posted to the Investor Relations website by clicking on “Subscribe to Email Alerts" at www.investor.prudential.com and following the instructions provided.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	News release of Prudential Financial, Inc. dated February 4, 2020, announcing full year and fourth quarter 2019 results (furnished and not filed).
99.2	Quarterly Financial Supplement for Prudential Financial, Inc. for fourth quarter 2019 (furnished and not filed).
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 4, 2020

PRUDENTIAL FINANCIAL, INC.
By:	/s/ Robert D. Axel
	Name: Robert D. Axel Title:   Senior Vice President and Principal Accounting Officer

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EX-99.1

Exhibit 99.1

February 4, 2020

Prudential Financial, Inc. Announces

2019 Results

• Fourth quarter 2019 net income attributable to Prudential Financial, Inc. of $1.128 billion or $2.76 per Common share versus $842 million or $1.99 per share for the year-ago quarter.

• Fourth quarter 2019 after-tax adjusted operating income of $950 million or $2.33 per Common share versus $1.035 billion or $2.44 per share for the year-ago quarter.

• Net income attributable to Prudential Financial, Inc. for 2019 of $4.186 billion or $10.11 per Common share versus $4.074 billion or $9.50 per share for 2018.

• After-tax adjusted operating income of $4.845 billion or $11.69 per Common share for 2019 versus $5.019 billion or $11.69 per share for 2018.

• Book value per Common share of $155.88 versus $116.34 per share for the year-ago; adjusted book value per Common share of $101.04 versus $96.06 per share for the year-ago.     

• Capital returned to shareholders of $906 million in the quarter versus $752 million for the year-ago quarter, including dividends of $1.00 per Common share.

• Parent company highly liquid assets of $4.1 billion versus $5.5 billion for the year-ago.

• Assets under management amounted to $1.551 trillion versus $1.377 trillion for the year-ago.

• Today, the Company declared a quarterly dividend of $1.10 per share of Common stock, payable on March 12, 2020, to shareholders of record as of February 18, 2020, representing an increase of 10% over the prior year dividend level and a 4.4% annualized yield on adjusted book value.

Charles Lowrey, Chairman and CEO, commented on results:

“During the fourth quarter, we made significant progress against our strategy to provide financial opportunity to more people and drive greater efficiency across our operations. For the year, we returned approximately $4 billion to our shareholders and generated an adjusted operating return on equitywithin our 12-14% target. Looking ahead, we remain focused on enhancing our customer experience while delivering on our cost savings initiative, increasing the percentage of earnings in international growth markets, and taking actions to mitigate the effect of low interest rates, which we expect will result in future earnings growth.”

NEWARK, N.J. - Prudential Financial, Inc. (NYSE: PRU) today reported fourth quarter and year-end 2019 results. For the fourth quarter of 2019, net income attributable to Prudential Financial, Inc. was $1.128 billion ($2.76 per Common share), compared to $842 million ($1.99 per Common share) for the fourth quarter of 2018. After-tax adjusted operating income was $950 million ($2.33 per Common share) for the fourth quarter of 2019, compared to $1.035 billion ($2.44 per Common share) for the fourth quarter of 2018.

Net income attributable to Prudential Financial, Inc. was $4.186 billion ($10.11 per Common share) for 2019, compared to $4.074 billion ($9.50 per Common share) for 2018. After-tax adjusted operating income was $4.845 billion ($11.69 per Common share) for 2019, compared to $5.019 billion ($11.69 per Common share) for 2018.

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Prudential Financial, Inc. Fourth Quarter 2019 Earnings Release Page 2

Consolidated adjusted operating income, adjusted book value, and adjusted operating return on equity are non-GAAP measures. These measures are discussed later in this press release under “Forward-Looking Statements and Non-GAAP Measures” and reconciliations to the most comparable GAAP measures are provided in the tables that accompany this release.

RESULTS OF ONGOING OPERATIONS

The Company’s ongoing operations include PGIM, U.S. Businesses (consisting of U.S. Workplace Solutions, U.S. Individual Solutions, and Assurance IQ), International Businesses, and Corporate & Other. In the following business-level discussion, adjusted operating income refers to pre-tax results.

PGIM

PGIM, the Company’s global investment management business, reported adjusted operating income of $288 million in the fourth quarter of 2019, compared to $243 million in the year-ago quarter. The increase reflects higher asset management fees, from an increase in average assets under management driven by market appreciation and fixed income net flows, and higher Other Related Revenue, driven by higher incentive fees and strategic investment earnings, partially offset by higher expenses.

PGIM assets under management of $1.308 trillion, a record high, were up 13% from the year-ago quarter, reflecting market appreciation and fixed income inflows, partially offset by equity outflows.

U.S. Businesses

U.S. Businesses reported adjusted operating income of $841 million for the fourth quarter of 2019, compared to $668 million in the year-ago quarter. The increase reflects higher net investment spread results and an unfavorable impact from changes in market conditions on estimates of profitability in the year-ago quarter, partially offset by lower net fee income.

U.S. Workplace Solutions, consisting of Retirement and Group Insurance, reported adjusted operating income of $342 millionfor the fourth quarter of 2019, compared to $249 million in the year-ago quarter.

Retirement:

• Reported adjusted operating income of $281 million in the current quarter, compared to $216 million in the year-ago quarter. The increase reflects higher net investment spread results.

• Account values of $500 billion, a record high, were up 16% from the year-ago quarter, reflecting market appreciation and net flows over the year. Net inflows in the current quarter totaled $4.0 billion with $4.3 billion from Institutional Investment Products, primarily from pension risk transfer transactions, partially offset by $0.3 billion of Full Service net outflows.

Group Insurance:

• Reported adjusted operating income of $61 million in the current quarter, compared to $33 million in the year-ago quarter. The increase reflects higher net investment spread results and more favorable underwriting results.

• Reported earned premiums, policy charges, and fees of $1.2 billion in the current quarter were consistent with the year-ago quarter.

U.S. Individual Solutions, consisting of Individual Annuities and Individual Life, reported adjusted operating income of $508 million for the fourth quarter of 2019, compared to $419 million in the year-ago quarter.

Individual Annuities:

• Reported adjusted operating income of $450 million in the current quarter, compared to $445 million in the year-ago quarter. The increase reflects higher net investment spread results and an unfavorable impact from changes in market conditions on estimates of profitability in the year-ago quarter, partially offset by lower fee income, net of distribution expenses and other associated costs.

• Account values of $170 billion, a record high, were up 12% from the year-ago quarter, reflecting market appreciation over the year, partially offset by net outflows. Gross sales of $2.1 billion in the current quarter reflect our continued diversification strategy with 65% of sales coming from less equity market sensitive products.

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Prudential Financial, Inc. Fourth Quarter 2019 Earnings Release Page 3

Individual Life:

• Reported adjusted operating income of $58 million in the current quarter, compared to a loss of $26 million in the year-ago quarter. The increase reflects an unfavorable impact from changes in market conditions on estimates of profitability in the year-ago quarter and higher net investment spread results, partially offset by less favorable underwriting results.

• Sales of $209 million in the current quarter were up 8% from the year-ago quarter, primarily reflecting higher variable life sales.

Assurance IQ was acquired in October of 2019 and reported a loss, on an adjusted operating income basis, of $9 million in the current quarter.

International Businesses

International Businesses,consisting of Life Planner and Gibraltar Life & Other, reported adjusted operating income of $797 million for the fourth quarter of 2019, compared to $736 million in the year-ago quarter. The increase reflects higher net investment spread results, business growth, and an unfavorable impact from changes in market conditions on estimates of profitability in the year-ago quarter. These items were partially offset by higher expenses.

Life Planner:

• Reported adjusted operating income of $394 million in the current quarter, compared to $349 million in the year-ago quarter. The increase reflects business growth, higher net investment spread results, an unfavorable impact from changes in market conditions on estimates of profitability in the year-ago quarter, and more favorable underwriting results. These items were partially offset by higher expenses.

• Constant dollar basis sales of $379 million in the current quarter were up 17% from the year-ago quarter, driven by our Korea, Taiwan, and Brazil operations.

Gibraltar Life & Other:

• Reported adjusted operating income of $403 million in the current quarter, compared to $387 million in the year-ago quarter. The increase primarily reflects higher net investment spread results, partially offset by higher expenses.

• Constant dollar basis sales of $283 million in the current quarter were down 14% from the year-ago quarter, primarily reflecting lower U.S. dollar-denominated fixed annuity sales in the Life Consultant channel.

Corporate & Other

Corporate & Other reported a loss, on an adjusted operating income basis, of $738 million in the fourth quarter of 2019, compared to a loss of $329 million in the year-ago quarter. The higher loss from the year-ago quarter reflects higher expenses, primarily related to the Company's Voluntary Separation Program.

NET INCOME

Net income in the current quarter included $133 million of pre-tax net realized investment gains and related charges and adjustments,including $58 million of credit loss impairments, and $60 million of pre-tax gains related to market experience updates.

Net income for the year-ago quarter included $264 million of pre-tax net realized investment losses and related charges and adjustments, including $119 million from impairments and sales of credit-impaired investments.

FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES⁽¹⁾

Certain of the statements included in this release, including those regarding enhancing our customer experience, our cost savings initiative, earnings in international growth markets and actions to mitigate low interest rates, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. Prudential

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Prudential Financial, Inc. Fourth Quarter 2019 Earnings Release Page 4

Financial, Inc.’s actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in the “Risk Factors” and “Forward-Looking Statements” sections included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Statements regarding enhancing our customer experience, our cost savings initiative, earnings in international growth markets and actions to mitigate low interest rates are subject to the risk that we will be unable to execute our strategy because of market or competitive conditions or other factors. Prudential Financial, Inc. does not undertake to update any particular forward-looking statement included in this document.

Consolidated adjusted operating income, adjusted book value, and adjusted operating return on equity are non-GAAP measures. Reconciliations to the most directly comparable GAAP measures are included in this release.

We believe that our use of these non-GAAP measures helps investors understand and evaluate the Company’s performance and financial position. The presentation of adjusted operating income as we measure it for management purposes enhances the understanding of the results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described below. Adjusted book value augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations separate from the portion that is affected by capital and currency market conditions, and by isolating the accounting impact associated with insurance liabilities that are generally not marked to market and the supporting investments that are marked to market through accumulated other comprehensive income under GAAP. Adjusted return on equity is a useful measure of the operating return the Company achieves in relation to the capital available to our businesses. However, these non-GAAP measures are not substitutes for income, equity, and return on equity determined in accordance with GAAP, and the adjustments made to derive these measures are important to an understanding of our overall results of operations and financial position. The schedules accompanying this release provide reconciliations of non-GAAP measures with the corresponding measures calculated using GAAP. Additional historic information relating to our financial performance is located on our website at www.investor.prudential.com.

EARNINGS CONFERENCE CALL

Members of Prudential's senior management will host a conference call on Wednesday, February 5, 2020, at 11:00 a.m. ET, to discuss with the investment community the Company's fourth quarter results. The conference call will be broadcast live over the Company’s Investor Relations website at investor.prudential.com. Please log on 15 minutes early in the event necessary software needs to be downloaded. The call will remain on the Investor Relations website for replay through February 19. Institutional investors, analysts, and other members of the professional financial community are invited to listen to the call and participate in the Q&A by dialing one of the following numbers: (877) 336-4437 (domestic) or (234) 720-6985 (international) and using access code 2805600. All others may join the conference call in listen-only mode by dialing one of the above numbers. To listen to a replay of the conference call starting at 4:00 p.m. ET on February 5 through February 12, dial (866) 207-1041 (domestic) or (402) 970-0847 (international) and use replay code 8370457.

(1) Description of Non-GAAP Measures:

Adjusted operating income is the measure used by the Company to evaluate segment performance and to allocate resources. Adjusted operating income excludes “Realized investment gains (losses), net,” as adjusted, and related charges and adjustments. A significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as our tax and capital profile.

Realized investment gains (losses) within certain of our businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative

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Prudential Financial, Inc. Fourth Quarter 2019 Earnings Release Page 5

portfolios that are part of an asset-liability management program related to the risk of those products. However, the effectiveness of our hedging program will ultimately be reflected in adjusted operating income over time. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are designated as trading. Additionally, adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income. Additionally, market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, are excluded from adjusted operating income beginning with the second quarter of 2019, which we believe enhances the understanding of underlying performance trends.

Adjusted operating income excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations. Discontinued operations and earnings attributable to noncontrolling interests, each of which is presented as a separate component of net income under GAAP, are also excluded from adjusted operating income. Adjusted operating income also excludes other items, such as 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. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments. Adjusted operating return on equity is equal to the annualized year-to-date after-tax adjusted operating income divided by the average adjusted book value. Return on equity based on GAAP balances is calculated using after-tax net income and equity.

Adjusted book value is calculated as total equity (GAAP book value) excluding accumulated other comprehensive income (loss) and the cumulative effect of foreign currency exchange rate remeasurements and currency translation adjustments corresponding to realized investment gains and losses. These items are excluded in order to highlight the book value attributable to our core business operations separate from the portion attributable to external and potentially volatile capital and currency market conditions.

Prudential Financial, Inc. (NYSE: PRU),a financial wellness leader and premier active global investment manager with more than $1.5 trillion in assets under management as of December 31, 2019, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help to make lives better by creating financial opportunity for more people. Prudential's iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit news.prudential.com.

MEDIA CONTACT: Bill Launder, (973) 802-8760, bill.launder@prudential.com

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Financial Highlights
(in millions, unaudited)
	Three Months Ended						Year Ended
	December 31						December 31
	2019			2018			2019			2018
Adjusted operating income (loss) before income taxes (1):
PGIM	$	288		$	243		$	998		$	959
U.S. Businesses:
U.S. Workplace Solutions division	342			249			1,586			1,278
U.S. Individual Solutions division	508			419			1,930			2,148
Assurance IQ division	(9		)	—			(9		)	—
Total U.S. Businesses	841			668			3,507			3,426
International Businesses	797			736			3,359			3,266
Corporate and Other	(738		)	(329		)	(1,766		)	(1,283		)
Total adjusted operating income before income taxes	$	1,188		$	1,318		$	6,098		$	6,368
Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments (2)	$	133		$	(264	)	$	(889	)	$	150
Market experience updates	60			—			(462		)	—
Divested and Run-off Businesses:
Closed Block division	31			(40		)	36			(62		)
Other Divested and Run-off Businesses	11			51			452			(1,535		)
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(32		)	(12		)	(103		)	(87		)
Other adjustments (3)	(47		)	—			(47		)	—
Total reconciling items, before income taxes	156			(265		)	(1,013		)	(1,534		)
Income before income taxes and equity in earnings of operating joint ventures	$	1,344		$	1,053		$	5,085		$	4,834
Income Statement Data:
Net income attributable to Prudential Financial, Inc.	$	1,128		$	842		$	4,186		$	4,074
Income attributable to noncontrolling interests	10			7			52			14
Net income	1,138			849			4,238			4,088
Less: Earnings attributable to noncontrolling interests	10			7			52			14
Income attributable to Prudential Financial, Inc.	1,128			842			4,186			4,074
Less: Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests	5			7			48			62
Income (after-tax) before equity in earnings of operating joint ventures	1,123			835			4,138			4,012
Less: Total reconciling items, before income taxes	156			(265		)	(1,013		)	(1,534		)
Less: Income taxes, not applicable to adjusted operating income	(17		)	(65		)	(306		)	(527		)
Total reconciling items, after income taxes	173			(200		)	(707		)	(1,007		)
After-tax adjusted operating income (1)	950			1,035			4,845			5,019
Income taxes, applicable to adjusted operating income	238			283			1,253			1,349
Adjusted operating income before income taxes (1)	$	1,188		$	1,318		$	6,098		$	6,368
See footnotes on last page.

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Financial Highlights
(in millions, except per share data, unaudited)
	Three Months Ended						Year Ended
	December 31						December 31
	2019			2018			2019			2018
Earnings per share of Common Stock (diluted):
Net income attributable to Prudential Financial, Inc.	$	2.76		$	1.99		$	10.11		$	9.50
Less: Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments (2)	0.33			(0.63		)	(2.16		)	0.36
Market experience updates	0.15			—			(1.12		)	—
Divested and Run-off Businesses:
Closed Block division	0.08			(0.09		)	0.09			(0.15		)
Other Divested and Run-off Businesses	0.03			0.12			1.10			(3.60		)
Difference in earnings allocated to participating unvested share-based payment awards	—			0.01			0.02			0.03
Other adjustments (3)	(0.12		)	—			(0.11		)	—
Total reconciling items, before income taxes	0.47			(0.59		)	(2.18		)	(3.36		)
Less: Income taxes, not applicable to adjusted operating income	0.04			(0.14		)	(0.60		)	(1.17		)
Total reconciling items, after income taxes	0.43			(0.45		)	(1.58		)	(2.19		)
After-tax adjusted operating income	$	2.33		$	2.44		$	11.69		$	11.69
Weighted average number of outstanding common shares (basic)	400.7			412.7			404.8			417.6
Weighted average number of outstanding common shares (diluted)	403.7			421.2			410.9			426.2
For earnings per share of Common Stock calculation:
Net income attributable to Prudential Financial, Inc.	$	1,128		$	842		$	4,186		$	4,074
Earnings related to interest, net of tax, on exchangeable surplus notes	—			5			12			21
Less: Earnings allocated to participating unvested share-based payment awards	12			10			45			47
Net income attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation	$	1,116		$	837		$	4,153		$	4,048
After-tax adjusted operating income (1)	$	950		$	1,035		$	4,845		$	5,019
Earnings related to interest, net of tax, on exchangeable surplus notes	—			5			12			21
Less: Earnings allocated to participating unvested share-based payment awards	11			13			53			58
After-tax adjusted operating income for earnings per share of Common Stock calculation (1)	$	939		$	1,027		$	4,804		$	4,982
Prudential Financial, Inc. Equity (as of end of period):
GAAP book value (total PFI equity) at end of period	$	63,115		$	48,617
Less: Accumulated other comprehensive income (AOCI)	24,039			10,906
GAAP book value excluding AOCI	39,076			37,711
Less: Cumulative effect of foreign exchange rate remeasurement and currency
translation adjustments corresponding to realized gains/losses	(1,835		)	(2,344		)
Adjusted book value	40,911			40,055
End of period number of common shares (diluted) (4)	404.9			422.2
GAAP book value per common share - diluted (5)	155.88			116.34
GAAP book value excluding AOCI per share - diluted (5)	96.51			90.50
Adjusted book value per common share - diluted (5)	101.04			96.06
See footnotes on last page.

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Financial Highlights
(in millions, or as otherwise noted, unaudited)
	Three Months Ended						Year Ended
	December 31						December 31
	2019			2018			2019			2018
PGIM:
PGIM:
Assets Managed by PGIM (in billions, as of end of period):
Institutional customers	$	552.8		$	493.5
Retail customers	282.8			240.1
General account	472.6			427.8
Total PGIM	$	1,308.2		$	1,161.4
Institutional Customers - Assets Under Management (in billions):
Gross additions, other than money market	$	16.4		$	18.9		$	60.8		$	75.1
Net additions (withdrawals), other than money market	$	0.7		$	(0.5	)	$	(6.5	)	$	14.1
Retail Customers - Assets Under Management (in billions):
Gross additions, other than money market	$	19.6		$	14.1		$	61.2		$	53.0
Net additions (withdrawals), other than money market	$	1.2		$	(2.6	)	$	5.7		$	(0.4	)
U.S. Workplace Solutions Division:
Retirement:
Full Service:
Deposits and sales	$	8,322		$	6,639		$	36,394		$	33,116
Net additions (withdrawals)	$	(262	)	$	697		$	688		$	6,686
Total account value at end of period	$	272,448		$	231,669
Institutional Investment Products:
Gross additions	$	8,575		$	8,843		$	31,101		$	21,310
Net additions	$	4,268		$	5,519		$	14,358		$	5,901
Total account value at end of period	$	227,596		$	200,759
Group Insurance:
Group Insurance Annualized New Business Premiums (6):
Group life	$	21		$	24		$	254		$	376
Group disability	6			13			159			183
Total	$	27		$	37		$	413		$	559
U.S. Individual Solutions Division:
Individual Annuities:
Fixed and Variable Annuity Sales and Account Values:
Gross sales	$	2,081		$	2,238		$	9,720		$	8,270
Sales, net of full surrenders and death benefits	$	(388	)	$	181		$	346		$	(688	)
Total account value at end of period	$	169,681		$	151,080
Individual Life:
Individual Life Insurance Annualized New Business Premiums (6):
Term life	$	47		$	55		$	200		$	213
Guaranteed universal life	26			29			95			97
Other universal life	42			51			155			150
Variable life	94			58			278			163
Total	$	209		$	193		$	728		$	623
International Businesses:
International Businesses:
International Businesses Annualized New Business Premiums (6)(7):
Actual exchange rate basis	$	651		$	642		$	2,605		$	2,740
Constant exchange rate basis	$	662		$	651		$	2,639		$	2,752
See footnotes on last page.

Page 3

Financial Highlights
(in billions, as of end of period, unaudited)
	Three Months Ended
	December 31
	2019		2018
Assets and Assets Under Management Information:
Total assets	$	896.6	$	815.1
Assets under management (at fair market value):
PGIM	1,308.2		1,161.4
U.S. Businesses:
U.S. Workplace Solutions division	91.6		86.1
U.S. Individual Solutions division	118.4		100.4
Total U.S. Businesses	210.0		186.5
International Businesses	32.7		29.4
Total assets under management	1,550.9		1,377.3
Client assets under administration	291.6		233.3
Total assets under management and administration	$	1,842.5	$	1,610.6

Page 4

(1)	Adjusted operating income is a non-GAAP measure of performance. See FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES within the earnings release for additional information. Adjusted operating income, when presented at the segment level, is also a segment performance measure. This segment performance measure, while not a traditional U.S. GAAP measure, is required to be disclosed by U.S. GAAP in accordance with FASB Accounting Standard Codification (ASC) 280 – Segment Reporting. When presented by segment, we have prepared the reconciliation of adjusted operating income to the corresponding consolidated U.S. GAAP total in accordance with the disclosure requirements as articulated in ASC 280.
(2)	Realized investment gains (losses), net, and related charges and adjustments now includes results previously disclosed as investment gains (losses) on assets supporting experience rated contractholder liabilities, net and change in experience rated contractholder liabilities due to asset value changes. Prior periods have been reclassified to conform to current period presentation.
(3)	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.
(4)	Diluted shares as of December 31, 2018 include 6.1 million shares due to the dilutive impact of conversion of exchangeable surplus notes (“ESNs”) when book value per common share (i.e., book value per common share, book value excluding AOCI per common share, and adjusted book value per common share) is greater than $82.16. The $500 million of ESNs were converted into 6.2 million shares of Common Stock in the third quarter of 2019.
(5)	The exchangeable surplus notes are subject to customary antidilution adjustments and the exchange rate is accordingly revalued. In order to calculate book value per common share as of December 31, 2018, equity is increased by $500 million and diluted shares include 6.1 million shares reflecting the dilutive impact of ESNs when book value per common share is greater than $82.16. The $500 million of ESNs were converted into 6.2 million shares of Common Stock in the third quarter of 2019.
(6)	Premiums from new sales are expected to be collected over a one-year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers' Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Excess (unscheduled) and single premium business for the Company's domestic individual life and international operations are included in annualized new business premiums based on a 10% credit.
(7)	Actual amounts reflect the impact of currency fluctuations. Constant amounts reflect foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 105 per U.S. dollar and Korean won 1,110 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 5

EX-99.2

Exhibit 99.2

Prudential Financial, Inc. (PRU)
Quarterly Financial Supplement
Fourth Quarter 2019
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.
	February 4, 2020

i

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	TABLE OF CONTENTS
			Page
	HIGHLIGHTS
	Financial Metrics Summary		1
	Financial Highlights		2
	Other Financial Highlights		3
	Operations Highlights		4
	Combined Statements of Operations		5
	Consolidated Balance Sheets		6
	Combining Balance Sheets by Division		7
	Short-Term and Long-Term Debt - Unaffiliated		8
	PGIM
	Statements of Operations		9
	Supplementary Revenue and Assets Under Management Information		10
	Supplementary Assets Under Management Information		11
	U.S.BUSINESSES
	Combined Statements of Operations		12
	U.S. WORKPLACE SOLUTIONS DIVISION
	Combined Statements of Operations		13
	Statements of Operations - Retirement		14
	Retirement Sales Results and Account Values		15
	Statements of Operations - Group Insurance		16
	Group Insurance Supplementary Information		17
	U.S. INDIVIDUAL SOLUTIONS DIVISION
	Combined Statements of Operations		18
	Statements of Operations - Individual Annuities		19
	Individual Annuities Sales Results and Account Values		20
	Individual Annuities Account Value Activity		21
	Individual Annuities Living Benefit Features		22
	Individual Annuities Death Benefit Features		23
	Statements of Operations - Individual Life		24
	Individual Life Supplementary Information		25
	ASSURANCE IQ DIVISION
	Statements of Operations		26
	INTERNATIONAL BUSINESSES
	Combined Statements of Operations		27
	Statements of Operations - Life Planner		28
	Statements of Operations - Gibraltar Life and Other		29
	Sales Results and Supplementary Information		30
	CORPORATE AND OTHER
	Statements of Operations		32
	INVESTMENT PORTFOLIO
	Investment Portfolio Composition		33
	Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		34
	Investment Results		35
	Investment Results - Japanese Insurance Operations		36
	Investment Results - Excluding Japanese Insurance Operations		37
	COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES		38
	KEY DEFINITIONS AND FORMULAS		40
	RATINGS AND INVESTOR INFORMATION		43

ii

	Prudential Financial, Inc.
	Quarterly Financial Supplement
	Fourth Quarter 2019
		FINANCIAL METRICS SUMMARY
		(in millions, except per share data)
			2018		2019								Year-to-date
			4Q		1Q		2Q		3Q		4Q		2018			2019		% change
Earnings
	Adjusted operating income (loss) before income taxes:
		PGIM	243		214		264		232		288		959			998		4%
		U.S. Businesses:
		U.S. Workplace Solutions division	249		304		548		392		342		1,278			1,586		24%
		U.S. Individual Solutions division	419		577		327		518		508		2,148			1,930		-10%
		Assurance IQ division	—		—		—		—		(9	)	—			(9	)	-
		Total U.S. Businesses	668		881		875		910		841		3,426			3,507		2%
		International Businesses	736		922		849		791		797		3,266			3,359		3%
		Corporate and Other	(329	)	(412	)	(335	)	(281	)	(738	)	(1,283	)		(1,766	)	-38%
	Total adjusted operating income before income taxes		1,318		1,605		1,653		1,652		1,188		6,368			6,098		-4%
	Income taxes, applicable to adjusted operating income		283		346		346		323		238		1,349			1,253		-7%
	After-tax adjusted operating income		1,035		1,259		1,307		1,329		950		5,019			4,845		-3%
	Income attributable to Prudential Financial, Inc.		842		932		708		1,418		1,128		4,074			4,186		3%
Return on Equity
	Operating Return on Average Equity (based on adjusted operating income) (1)		10.3	%	12.6	%	13.1	%	13.3	%	9.4	%	12.7	%		12.1	%
	Return on Average Equity (based on net income)		7.1	%	7.2	%	4.9	%	8.9	%	7.0	%	8.2	%		7.1	%
Distributions to Shareholders
	Dividends paid		377		415		411		412		406		1,526			1,644		8%
	Share repurchases		375		500		500		1,000		500		1,500			2,500		67%
	Total capital returned		752		915		911		1,412		906		3,026			4,144		37%
Per Share Data
	Net income (diluted)		1.99		2.22		1.71		3.44		2.76		9.50			10.11		6%
	Adjusted Operating Income (diluted)		2.44		3.00		3.14		3.22		2.33		11.69			11.69		—%
	Shareholder dividends		0.90		1.00		1.00		1.00		1.00		3.60			4.00		11%
	Book value		116.34		132.83		150.04		163.19		155.88
	Book value excluding AOCI and FX (2)		96.06		96.76		97.15		99.67		101.04
Shares Outstanding
	Weighted average number of common shares (basic)		412.7		409.2		405.3		404.1		400.7		417.6			404.8		-3%
	Weighted average number of common shares (diluted)		421.2		417.6		413.9		408.5		403.7		426.2			410.9		-4%
	End of period common shares (basic)		410.7		407.3		403.0		398.3		398.8
	End of period common shares (diluted)		422.2		417.9		414.3		403.2		404.9
__________
(1) 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.
(2) AOCI represents accumulated other comprehensive income and FX represents the remeasurement of foreign currency. See page 3 for further details.

Page 1

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	FINANCIAL HIGHLIGHTS
	(in millions, except per share data)
		2018		2019									Year-to-date
		4Q		1Q		2Q		3Q		4Q			2018		2019
	Earnings per share of Common Stock (diluted):
	After-tax adjusted operating income	2.44		3.00		3.14		3.22		2.33			11.69		11.69
	Reconciling items:
	Realized investment gains (losses), net, and related charges and adjustments (1)	(0.63	)	(1.41	)	(1.59	)	0.54		0.33			0.36		(2.16	)
	Market experience updates	—		—		(0.50	)	(0.77	)	0.15			—		(1.12	)
	Divested and Run-off Businesses:
	Closed Block division	(0.09	)	(0.05	)	(0.05	)	0.11		0.08			(0.15	)	0.09
	Other Divested and Run-off Businesses	0.12		0.42		0.27		0.38		0.03			(3.60	)	1.10
	Difference in earnings allocated to participating unvested share-based payment awards	0.01		0.01		0.02		—		—			0.03		0.02
	Other adjustments (2)	—		—		—		—		(0.12	)		—		(0.11	)
	Total reconciling items, before income taxes	(0.59	)	(1.03	)	(1.85	)	0.26		0.47			(3.36	)	(2.18	)
	Income taxes, not applicable to adjusted operating income	(0.14	)	(0.25	)	(0.42	)	0.04		0.04			(1.17	)	(0.60	)
	Total reconciling items, after income taxes	(0.45	)	(0.78	)	(1.43	)	0.22		0.43			(2.19	)	(1.58	)
	Net income attributable to Prudential Financial, Inc.	1.99		2.22		1.71		3.44		2.76			9.50		10.11
	Weighted average number of outstanding common shares (basic)	412.7		409.2		405.3		404.1		400.7			417.6		404.8
	Weighted average number of outstanding common shares (diluted)	421.2		417.6		413.9		408.5		403.7			426.2		410.9
	For earnings per share of Common Stock calculation:
	Net income attributable to Prudential Financial, Inc.	842		932		708		1,418		1,128			4,074		4,186
	Earnings related to interest, net of tax, on exchangeable surplus notes	5		5		6		1		—			21		12
	Less: Earnings allocated to participating unvested share-based payment awards	10		10		8		15		12			47		45
	Net income attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation	837		927		706		1,404		1,116			4,048		4,153
	After-tax adjusted operating income	1,035		1,259		1,307		1,329		950			5,019		4,845
	Earnings related to interest, net of tax, on exchangeable surplus notes	5		5		6		1		—			21		12
	Less: Earnings allocated to participating unvested share-based payment awards	13		13		15		14		11			58		53
	After-tax adjusted operating income for earnings per share of Common Stock calculation	1,027		1,251		1,298		1,316		939			4,982		4,804
	___________
	(1) Prior period numbers have been reclassified to conform to current period presentation.
	(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.

Page 2

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	OTHER FINANCIAL HIGHLIGHTS
	(in millions, except per share data)
		2018		2019									Year-to-date
		4Q		1Q		2Q		3Q		4Q			2018	2019
	Capitalization Data (1):
	Senior Debt:
	Short-term Debt	2,451		2,549		2,659		1,490		1,933
	Long-term Debt	9,810		10,741		10,269		11,577		11,071
	Junior Subordinated Long-term Debt	7,568		7,568		7,572		7,574		7,575
	Prudential Financial, Inc. Equity:
	Including accumulated other comprehensive income	48,617		55,010		61,660		65,798		63,115
	Excluding accumulated other comprehensive income (2)	37,711		37,792		37,678		38,240		39,076
	Amount included above for remeasurement of foreign currency (3)	(2,344	)	(2,142	)	(2,070	)	(1,946	)	(1,835	)
	Excluding accumulated other comprehensive income and adjusted to remove amount
	included for remeasurement of foreign currency (3)	40,055		39,934		39,748		40,186		40,911
	Book Value per Share of Common Stock:
	Including accumulated other comprehensive income (4)	116.34		132.83		150.04		163.19		155.88
	Excluding accumulated other comprehensive income (2)(4)	90.50		91.63		92.15		94.84		96.51
	Amount included above for remeasurement of foreign currency (3)	(5.56	)	(5.13	)	(5.00	)	(4.83	)	(4.53	)
	Excluding accumulated other comprehensive income and adjusted to remove amount
	included for remeasurement of foreign currency (3)(4)	96.06		96.76		97.15		99.67		101.04
	End of period number of common shares (diluted) (5)	422.2		417.9		414.3		403.2		404.9
	Common Stock Price Range (based on closing price):
	High	105.99		97.25		105.71		103.27		95.27			126.02	105.71
	Low	76.83		81.27		92.38		78.29		84.95			76.83	78.29
	Close	81.55		91.88		101.00		89.95		93.74			81.55	93.74
	Common Stock market capitalization (1)	33,493		37,423		40,703		35,827		37,384
__________
(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.
(4) Book value per share of Common Stock (including AOCI, excluding AOCI, and excluding AOCI and remeasurement of foreign currency) as of the second quarter of 2019 includes a $500 million increase in equity and a 6.2 million increase in diluted shares reflecting the dilutive impact of exchangeable surplus notes when book value per share of Common Stock is greater than $80.73. As of first quarter of 2019 and the fourth quarter of 2018, book value per share of Common Stock includes a $500 million increase in equity and 6.1 million increase in diluted shares, reflecting the dilutive impact of exchangeable surplus notes when book value per share of Common Stock is greater than $82.16. The $500 million of exchangeable surplus notes were converted into 6.2 million shares of Common Stock in the third quarter of 2019.
(5) The number of diluted shares at the end of prior periods through the second quarter of 2019 includes the impact of exchangeable surplus notes due to the dilutive impact of conversion. The exchangeable surplus notes were converted to Common Stock in the third quarter of 2019.

Page 3

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	OPERATIONS HIGHLIGHTS
		2018	2019					Year-to-date
		4Q	1Q	2Q	3Q	4Q		2018	2019
	Assets Under Management and Administration ($ billions) (1)(2):
	PGIM:
	Institutional customers	493.5	524.0	534.9	539.8	552.8
	Retail customers	240.1	256.4	264.9	269.3	282.8
	General account	427.8	441.0	459.8	474.7	472.6
	Total PGIM	1,161.4	1,221.4	1,259.6	1,283.8	1,308.2
	U.S. Businesses:
	U.S. Workplace Solutions division	86.1	89.4	90.9	90.7	91.6
	U.S. Individual Solutions division	100.4	113.3	115.4	113.4	118.4
	Total U.S. Businesses	186.5	202.7	206.3	204.1	210.0
	International Businesses	29.4	31.4	31.5	30.9	32.7
	Total assets under management	1,377.3	1,455.5	1,497.4	1,518.8	1,550.9
	Client assets under administration	233.3	250.8	273.0	273.5	291.6
	Total assets under management and administration	1,610.6	1,706.3	1,770.4	1,792.3	1,842.5
	Assets managed or administered for customers outside of the United States	373.8	389.4	403.4	410.5	420.3
	Distribution Representatives (1):
	Prudential Advisors	3,005	3,075	3,132	3,161	3,048
	International Life Planners	7,969	8,094	8,170	8,280	8,418
	Gibraltar Life Consultants	7,964	7,997	7,767	7,633	7,403
	Prudential Advisor productivity ($ thousands)	78	53	62	65	84		63	66
	__________
	(1) As of end of period.
	(2) At fair market value.

Page 4

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
COMBINED STATEMENTS OF OPERATIONS
(in millions)
	2018		2019								Year-to-date
	4Q		1Q		2Q		3Q		4Q		2018			2019		% change
Revenues (1):
Premiums	11,487		7,256		7,439		6,306		10,531		32,978			31,532		-4%
Policy charges and fee income	1,570		1,542		1,518		1,563		1,584		6,272			6,207		-1%
Net investment income	3,382		3,546		3,698		3,732		3,826		13,490			14,802		10%
Asset management fees, commissions and other income	1,341		1,304		1,451		1,327		1,509		5,390			5,591		4%
Total revenues	17,780		13,648		14,106		12,928		17,450		58,130			58,132		0%
Benefits and Expenses (1):
Insurance and annuity benefits	11,934		7,520		7,823		6,773		11,072		34,411			33,188		-4%
Interest credited to policyholders' account balances	937		948		955		984		984		3,720			3,871		4%
Interest expense	372		386		392		377		385		1,414			1,540		9%
Deferral of acquisition costs	(754	)	(759	)	(712	)	(746	)	(740	)	(2,864	)		(2,957	)	-3%
Amortization of acquisition costs	533		540		736		529		529		2,114			2,334		10%
General and administrative expenses	3,440		3,408		3,259		3,359		4,032		12,967			14,058		8%
Total benefits and expenses	16,462		12,043		12,453		11,276		16,262		51,762			52,034		1%
Adjusted operating income before income taxes	1,318		1,605		1,653		1,652		1,188		6,368			6,098		-4%
Income taxes, applicable to adjusted operating income	283		346		346		323		238		1,349			1,253		-7%
After-tax adjusted operating income	1,035		1,259		1,307		1,329		950		5,019			4,845		-3%
Reconciling items:
Realized investment gains (losses), net, and related adjustments (2)	(181	)	(612	)	(574	)	313		109		466			(764	)	-264%
Related charges	(83	)	25		(82	)	(92	)	24		(316	)		(125	)	60%
Total realized investment gains (losses), net, and related charges and adjustments	(264	)	(587	)	(656	)	221		133		150			(889	)	-693%
Market experience updates	—		—		(208	)	(314	)	60		—			(462	)	-
Divested and Run-off Businesses:
Closed Block division	(40	)	(19	)	(21	)	45		31		(62	)		36		158%
Other Divested and Run-off Businesses	51		174		112		155		11		(1,535	)		452		129%
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(12	)	(33	)	(4	)	(34	)	(32	)	(87	)		(103	)	-18%
Other adjustments (3)	—		—		—		—		(47	)	—			(47	)	-
Total reconciling items, before income taxes	(265	)	(465	)	(777	)	73		156		(1,534	)		(1,013	)	34%
Income taxes, not applicable to adjusted operating income	(65	)	(114	)	(184	)	9		(17	)	(527	)		(306	)	42%
Total reconciling items, after income taxes	(200	)	(351	)	(593	)	64		173		(1,007	)		(707	)	30%
Income before income taxes and equity in earnings of operating joint ventures	1,053		1,140		876		1,725		1,344		4,834			5,085		5%
Income tax expense	218		232		162		332		221		822			947		15%
Income before equity in earnings of operating joint ventures	835		908		714		1,393		1,123		4,012			4,138		3%
Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests	7		24		(6	)	25		5		62			48		-23%
Income attributable to Prudential Financial, Inc.	842		932		708		1,418		1,128		4,074			4,186		3%
Earnings attributable to noncontrolling interests	7		5		30		7		10		14			52		271%
Net income	849		937		738		1,425		1,138		4,088			4,238		4%
Less: Income attributable to noncontrolling interests	7		5		30		7		10		14			52		271%
Net income attributable to Prudential Financial, Inc.	842		932		708		1,418		1,128		4,074			4,186		3%
__________
(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) Prior period numbers have been reclassified to conform to current period presentation.
(3) 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.

Page 5

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	CONSOLIDATED BALANCE SHEETS
	(in millions)
		12/31/2018	03/31/2019	06/30/2019	09/30/2019	12/31/2019
	Assets:
	Investments:
	Fixed maturities, available-for-sale, at fair value
	(amortized cost $331,745; $333,648; $340,564; $342,567; $346,574)	353,656	365,928	383,390	391,657	391,096
	Fixed maturities, held-to-maturity, at amortized cost
	(fair value $2,372; $2,365; $2,410; $2,359; $2,302)	2,013	1,982	2,009	1,958	1,933
	Fixed maturities, trading, at fair value
	(amortized cost $3,392; $3,512; $3,807; $3,873; $3,917)	3,243	3,435	3,755	3,779	3,884
	Assets supporting experience-rated contractholder liabilities, at fair value	21,254	21,668	21,843	22,267	21,597
	Equity securities, at fair value
	(cost $5,219; $5,230; $5,205; $5,363; $5,560)	6,238	6,778	6,804	7,014	7,522
	Commercial mortgage and other loans	59,830	60,875	61,228	61,833	63,559
	Policy loans	12,016	11,986	12,030	12,022	12,096
	Other invested assets	14,526	14,840	15,081	15,654	15,606
	Short-term investments	6,469	6,911	5,872	7,320	5,467
	Total investments	479,245	494,403	512,012	523,504	522,760
	Cash and cash equivalents	15,353	14,699	15,421	18,289	16,327
	Accrued investment income	3,318	3,233	3,355	3,248	3,330
	Deferred policy acquisition costs	20,058	19,978	19,540	19,484	19,912
	Value of business acquired	1,850	1,575	1,227	1,106	1,110
	Other assets	16,118	18,192	18,690	18,761	20,832
	Separate account assets	279,136	297,244	303,580	301,234	312,281
	Total assets	815,078	849,324	873,825	885,626	896,552
	Liabilities:
	Future policy benefits	273,846	277,085	285,527	291,742	293,527
	Policyholders' account balances	150,338	151,224	151,428	152,527	152,110
	Securities sold under agreements to repurchase	9,950	9,873	9,741	9,241	9,681
	Cash collateral for loaned securities	3,929	4,093	4,235	4,728	4,213
	Income taxes	7,936	10,031	11,485	12,664	11,378
	Senior short-term debt	2,451	2,549	2,659	1,490	1,933
	Senior long-term debt	9,810	10,741	10,269	11,577	11,071
	Junior subordinated long-term debt	7,568	7,568	7,572	7,574	7,575
	Other liabilities	20,128	22,241	23,930	25,302	27,790
	Notes issued by consolidated variable interest entities	955	1,225	1,246	1,233	1,274
	Separate account liabilities	279,136	297,244	303,580	301,234	312,281
	Total liabilities	766,047	793,874	811,672	819,312	832,833
	Equity:
	Accumulated other comprehensive income	10,906	17,218	23,982	27,558	24,039
	Other equity	37,711	37,792	37,678	38,240	39,076
	Total Prudential Financial, Inc. equity	48,617	55,010	61,660	65,798	63,115
	Noncontrolling interests	414	440	493	516	604
	Total equity	49,031	55,450	62,153	66,314	63,719
	Total liabilities and equity	815,078	849,324	873,825	885,626	896,552

Page 6

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	COMBINING BALANCE SHEETS
	(in millions)
		As of December 31, 2019
		Consolidated PFI	Closed Block Division		PFI Excluding Closed Block Division	PGIM		U.S. Workplace Solutions Division	U.S. Individual Solutions Division		Assurance IQ Division	International Businesses	Corporate and Other
	Assets:
	Total investments	522,760	60,331		462,429	4,606		142,114	73,910		101	216,678	25,020
	Deferred policy acquisition costs	19,912	235		19,677	—		300	10,809		—	8,949	(381	)
	Other assets	41,599	761		40,838	3,424		9,586	16,248		2,538	11,189	(2,147	)
	Separate account assets	312,281	—		312,281	39,625		89,865	184,145		—	4,255	(5,609	)
	Total assets	896,552	61,327		835,225	47,655		241,865	285,112		2,639	241,071	16,883
	Liabilities:
	Future policy benefits	293,527	47,614		245,913	—		72,890	32,568		—	131,987	8,468
	Policyholders' account balances	152,110	4,973		147,137	—		57,634	37,669		—	51,825	9
	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	18,798	4,134
	Separate account liabilities	312,281	—		312,281	39,625		89,865	184,145		—	4,255	(5,609	)
	Total liabilities	832,833	62,966		769,867	44,664		229,745	270,652		261	206,960	17,585
	Equity:
	Accumulated other comprehensive income (loss)	24,039	(12	)	24,051	(53	)	5,349	2,691		—	18,143	(2,079	)
	Other equity	39,076	(1,641	)	40,717	2,047		6,704	11,748		2,378	15,900	1,940
	Total Prudential Financial, Inc. equity	63,115	(1,653	)	64,768	1,994		12,053	14,439		2,378	34,043	(139	)
	Noncontrolling interests	604	14		590	997		67	21		—	68	(563	)
	Total equity	63,719	(1,639	)	65,358	2,991		12,120	14,460		2,378	34,111	(702	)
	Total liabilities and equity	896,552	61,327		835,225	47,655		241,865	285,112		2,639	241,071	16,883
		As of December 31, 2018
		Consolidated PFI	Closed Block Division		PFI Excluding Closed Block Division	PGIM		U.S. Workplace Solutions Division	U.S. Individual Solutions Division		Assurance IQ Division	International Businesses	Corporate and Other
	Assets:
	Total investments	479,245	57,710		421,535	4,542		131,746	61,626		—	200,313	23,308
	Deferred policy acquisition costs	20,058	264		19,794	—		311	11,087		—	8,715	(319	)
	Other assets	36,639	1,065		35,574	2,908		6,979	17,280		—	9,850	(1,443	)
	Separate account assets	279,136	—		279,136	40,240		78,216	161,645		—	3,755	(4,720	)
	Total assets	815,078	59,039		756,039	47,690		217,252	251,638		—	222,633	16,826
	Liabilities:
	Future policy benefits	273,846	48,282		225,564	—		69,677	25,377		—	122,894	7,616
	Policyholders' account balances	150,338	5,061		145,277	—		56,855	36,671		—	50,895	856
	Debt	19,829	—		19,829	1,810		810	7,335		—	141	9,733
	Other liabilities	42,898	7,414		35,484	3,030		5,272	7,046		—	17,328	2,808
	Separate account liabilities	279,136	—		279,136	40,240		78,216	161,645		—	3,755	(4,720	)
	Total liabilities	766,047	60,757		705,290	45,080		210,830	238,074		—	195,013	16,293
	Equity:
	Accumulated other comprehensive income (loss)	10,906	(23	)	10,929	(83	)	628	(418	)	—	13,040	(2,238	)
	Other equity	37,711	(1,705	)	39,416	2,067		5,744	13,967		—	14,518	3,120
	Total Prudential Financial, Inc. equity	48,617	(1,728	)	50,345	1,984		6,372	13,549		—	27,558	882
	Noncontrolling interests	414	10		404	626		50	15		—	62	(349	)
	Total equity	49,031	(1,718	)	50,749	2,610		6,422	13,564		—	27,620	533
	Total liabilities and equity	815,078	59,039		756,039	47,690		217,252	251,638		—	222,633	16,826

Page 7

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED
	(in millions)
		As of December 31, 2019				As of December 31, 2018
		Senior debt				Senior debt
		Short-term Debt	Long-term Debt	Junior Subordinated Long-term Debt	Total Debt	Short-term Debt	Long-term Debt		Junior Subordinated Long-term Debt	Total Debt
	Borrowings by use of proceeds:
	Capital Debt	—	7,001	7,575	14,576	1,250	4,543		7,568	13,361
	Operating Debt	1,728	3,425	—	5,153	1,091	4,601		—	5,692
	Limited recourse and non-recourse borrowing	205	645	—	850	110	666		—	776
	Total debt	1,933	11,071	7,575	20,579	2,451	9,810		7,568	19,829
		As of December 31, 2019				As of December 31, 2018
			The Prudential				The Prudential
		Prudential	Insurance Co.	Other		Prudential	Insurance Co.		Other
		Financial, Inc.	of America (1)(2)	Affiliates	Total	Financial, Inc.	of America (1)(2)		Affiliates	Total
	Borrowings by sources:
	Capital Debt	14,078	441	57	14,576	12,363	941		57	13,361
	Operating Debt	4,557	596	—	5,153	4,893	799		—	5,692
	Limited recourse and non-recourse borrowing	—	537	313	850	—	776		—	776
	Total debt	18,635	1,574	370	20,579	17,256	2,516		57	19,829
__________
(1) Includes Prudential Funding, LLC.
(2) Capital debt at Prudential Insurance Co. of America includes $342 million of surplus notes as of December 31, 2019 and $841 million of surplus notes as of December 31, 2018.

Page 8

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	STATEMENTS OF OPERATIONS - PGIM
	(in millions)
		2018		2019								Year-to-date
		4Q		1Q		2Q		3Q		4Q		2018			2019		% change
	Revenues (1):
	Premiums	—		—		—		—		—		—			—		-
	Policy charges and fee income	—		—		—		—		—		—			—		-
	Net investment income	(3	)	63		33		28		76		73			200		174%
	Asset management fees, commissions and other income	838		807		893		827		862		3,221			3,389		5%
	Total revenues	835		870		926		855		938		3,294			3,589		9%
	Benefits and Expenses (1):
	Insurance and annuity benefits	—		—		—		—		—		—			—		-
	Interest credited to policyholders' account balances	—		—		—		—		—		—			—		-
	Interest expense	11		12		12		12		13		40			49		23%
	Deferral of acquisition costs	(1	)	(1	)	(2	)	(2	)	(2	)	(6	)		(7	)	-17%
	Amortization of acquisition costs	2		2		1		2		1		8			6		-25%
	General and administrative expenses	580		643		651		611		638		2,293			2,543		11%
	Total benefits and expenses	592		656		662		623		650		2,335			2,591		11%
	Adjusted operating income before income taxes	243		214		264		232		288		959			998		4%
	Total revenues	835		870		926		855		938		3,294			3,589		9%
	Less: Passthrough distribution revenue	28		27		28		28		29		121			112		-7%
	Less: Revenue associated with consolidations	4		34		50		10		11		37			105		184%
	Total adjusted revenues (2)	803		809		848		817		898		3,136			3,372		8%
	Adjusted operating margin (2)(3)	30.3	%	26.5	%	31.1	%	28.4	%	32.1	%	30.6	%		29.6	%
	__________
	(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 30.7%, 27.1%, 28.5%, 24.6%, and 29.1% for the three months ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively and 27.8% and 29.1% for year-to-date December 31, 2019, and December 31, 2018, respectively.

Page 9

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	PGIM - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION
		2018	2019				Year-to-date
		4Q	1Q	2Q	3Q	4Q	2018	2019	% change
	Supplementary Revenue Information (in millions):
	Analysis of revenues by type:
	Asset management fees	639	644	671	676	691	2,542	2,682	6%
	Other related revenues (1)	84	100	115	50	115	270	380	41%
	Service, distribution and other revenues	112	126	140	129	132	482	527	9%
	Total PGIM revenues	835	870	926	855	938	3,294	3,589	9%
	Analysis of asset management fees by source:
	Institutional customers	311	312	319	323	329	1,204	1,283	7%
	Retail customers	210	209	220	223	226	867	878	1%
	General account	118	123	132	130	136	471	521	11%
	Total asset management fees	639	644	671	676	691	2,542	2,682	6%
	Supplementary Assets Under Management Information (at fair market value) (in billions):
		December 31, 2019
		Equity	Fixed Income	Real Estate	Total
	Institutional customers	62.7	447.0	43.1	552.8
	Retail customers	130.5	150.3	2.0	282.8
	General account	6.0	464.6	2.0	472.6
	Total	199.2	1,061.9	47.1	1,308.2
		December 31, 2018
		Equity	Fixed Income	Real Estate	Total
	Institutional customers	54.7	395.1	43.7	493.5
	Retail customers	112.9	125.2	2.0	240.1
	General account	5.1	420.8	1.9	427.8
	Total	172.7	941.1	47.6	1,161.4
__________
(1) Other related revenues, net of related expenses and charges associated with a joint venture in first quarter 2019 are $85 million, $39 million, $65 million, $63 million, and $57 million for the three months ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively and $252 million and $203 million for year-to-date December 31, 2019, and December 31, 2018, respectively.

Page 10

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	PGIM - SUPPLEMENTARY ASSETS UNDER MANAGEMENT INFORMATION
	(in billions)
			2018		2019									Year-to-date
			4Q		1Q		2Q		3Q		4Q			2018		2019
		Institutional Customers - Assets Under Management (at fair market value):
		Assets gathered by Investment Management & Advisory Services sales force:
		Beginning assets under management	453.3		443.6		471.0		479.1		483.2			437.9		443.6
		Additions	18.9		15.1		14.5		14.8		16.4			75.1		60.8
		Withdrawals	(19.4	)	(14.1	)	(20.5	)	(17.0	)	(15.7	)		(61.0	)	(67.3	)
		Change in market value	(8.1	)	21.0		14.5		8.8		9.8			(9.3	)	54.1
		Net money market flows	(1.4	)	4.3		(0.6	)	(2.1	)	0.4			1.5		2.0
		Other	0.3		1.1		0.2		(0.4	)	0.5			(0.6	)	1.4
		Ending assets under management	443.6		471.0		479.1		483.2		494.6			443.6		494.6
		Affiliated institutional assets under management	49.9		53.0		55.8		56.6		58.2			49.9		58.2
		Total assets managed for institutional customers at end of period	493.5		524.0		534.9		539.8		552.8			493.5		552.8
		Net institutional additions (withdrawals), excluding money market activity	(0.5	)	1.0		(6.0	)	(2.2	)	0.7			14.1		(6.5	)
		Retail Customers - Assets Under Management (at fair market value):
		Assets gathered by Investment Management & Advisory Services sales force:
		Beginning assets under management	169.2		154.2		169.0		175.6		179.0			157.3		154.2
		Additions	14.1		14.1		13.0		14.5		19.6			53.0		61.2
		Withdrawals	(16.7	)	(13.7	)	(11.9	)	(11.5	)	(18.4	)		(53.4	)	(55.5	)
		Change in market value	(13.4	)	14.4		5.4		0.3		9.1			(3.7	)	29.2
		Net money market flows	—		—		0.1		0.3		0.2			0.1		0.6
		Other	1.0		—		—		(0.2	)	0.2			0.9		—
		Ending assets under management	154.2		169.0		175.6		179.0		189.7			154.2		189.7
		Affiliated retail assets under management	85.9		87.4		89.3		90.3		93.1			85.9		93.1
		Total assets managed for retail customers at end of period	240.1		256.4		264.9		269.3		282.8			240.1		282.8
		Net retail additions (withdrawals), excluding money market activity	(2.6	)	0.4		1.1		3.0		1.2			(0.4	)	5.7

Page 11

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES
	(in millions)
		2018		2019								Year-to-date
		4Q		1Q		2Q		3Q		4Q		2018		2019		% change
	Revenues (1):
	Premiums	7,579		2,677		3,536		2,158		6,433		16,834		14,804		-12%
	Policy charges and fee income	1,450		1,429		1,416		1,450		1,469		5,789		5,764		—%
	Net investment income	1,943		2,018		2,141		2,152		2,154		7,720		8,465		10%
	Asset management fees, commissions and other income	713		673		750		719		850		2,964		2,992		1%
	Total revenues	11,685		6,797		7,843		6,479		10,906		33,307		32,025		-4%
	Benefits and Expenses (1):
	Insurance and annuity benefits	8,520		3,558		4,418		3,133		7,460		20,352		18,569		-9%
	Interest credited to policyholders' account balances	717		712		731		751		759		2,813		2,953		5%
	Interest expense	213		226		230		250		239		818		945		16%
	Deferral of acquisition costs	(351	)	(309	)	(330	)	(335	)	(339	)	(1,190	)	(1,313	)	-10%
	Amortization of acquisition costs	231		215		469		222		229		917		1,135		24%
	General and administrative expenses	1,687		1,514		1,450		1,548		1,717		6,171		6,229		1%
	Total benefits and expenses	11,017		5,916		6,968		5,569		10,065		29,881		28,518		-5%
	Adjusted operating income before income taxes	668		881		875		910		841		3,426		3,507		2%
___________
(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; change in experience-rated contractholder liabilities due to asset value changes; and benefits and expenses related to certain components of 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 and include charges for income attributable to noncontrolling interests. Beginning with the second quarter of 2019, revenues and expenses exclude market experience updates.

Page 12

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES - U.S. WORKPLACE SOLUTIONS DIVISION
	(in millions)
		2018		2019								Year-to-date
		4Q		1Q		2Q		3Q		4Q		2018		2019		% change
	Revenues (1):
	Premiums	7,273		2,345		3,208		1,870		6,165		15,728		13,588		-14%
	Policy charges and fee income	219		229		226		246		225		847		926		9%
	Net investment income	1,243		1,292		1,362		1,360		1,348		4,993		5,362		7%
	Asset management fees, commissions and other income	225		214		251		223		250		942		938		—%
	Total revenues	8,960		4,080		5,047		3,699		7,988		22,510		20,814		-8%
	Benefits and Expenses (1):
	Insurance and annuity benefits	7,731		2,791		3,526		2,349		6,652		17,456		15,318		-12%
	Interest credited to policyholders' account balances	434		447		443		454		445		1,712		1,789		4%
	Interest expense	12		14		10		12		12		37		48		30%
	Deferral of acquisition costs	(18	)	(13	)	(9	)	(7	)	(13	)	(44	)	(42	)	5%
	Amortization of acquisition costs	15		9		10		7		19		38		45		18%
	General and administrative expenses	537		528		519		492		531		2,033		2,070		2%
	Total benefits and expenses	8,711		3,776		4,499		3,307		7,646		21,232		19,228		-9%
	Adjusted operating income before income taxes	249		304		548		392		342		1,278		1,586		24%
__________
(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.

Page 13

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	STATEMENTS OF OPERATIONS - U.S. BUSINESSES - U.S. WORKPLACE SOLUTIONS DIVISION - RETIREMENT
	(in millions)
		2018		2019								Year-to-date
		4Q		1Q		2Q		3Q		4Q		2018		2019		% change
	Revenues (1):
	Premiums	6,174		1,243		2,098		794		5,083		11,331		9,218		-19	%
	Policy charges and fee income	67		66		63		71		72		250		272		9	%
	Net investment income	1,095		1,141		1,200		1,198		1,199		4,377		4,738		8	%
	Asset management fees, commissions and other income	209		189		225		198		224		867		836		-4	%
	Total revenues	7,545		2,639		3,586		2,261		6,578		16,825		15,064		-10	%
	Benefits and Expenses (1):
	Insurance and annuity benefits	6,660		1,704		2,448		1,304		5,605		13,215		11,061		-16	%
	Interest credited to policyholders' account balances	363		377		370		374		382		1,430		1,503		5	%
	Interest expense	11		13		10		11		12		35		46		31	%
	Deferral of acquisition costs	(18	)	(9	)	(9	)	(7	)	(12	)	(43	)	(37	)	14	%
	Amortization of acquisition costs	14		8		8		5		17		33		38		15	%
	General and administrative expenses	299		295		292		272		293		1,106		1,152		4	%
	Total benefits and expenses	7,329		2,388		3,119		1,959		6,297		15,776		13,763		-13	%
	Adjusted operating income before income taxes	216		251		467		302		281		1,049		1,301		24	%
	__________
	(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.

Page 14

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	U.S. BUSINESSES - U.S. WORKPLACE SOLUTIONS DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES
	(in millions)
		2018		2019									Year-to-date
		4Q		1Q		2Q		3Q		4Q			2018		2019
	Full Service:
	Beginning total account value	251,272		231,669		251,071		262,133		259,946			234,616		231,669
	Deposits and sales	6,639		9,567		11,047		7,458		8,322			33,116		36,394
	Withdrawals and benefits	(5,941	)	(9,105	)	(7,259	)	(10,758	)	(8,584	)		(26,429	)	(35,706	)
	Change in market value, interest credited, interest income and other activity	(20,301	)	18,940		7,274		1,113		12,764			(9,634	)	40,091
	Ending total account value	231,669		251,071		262,133		259,946		272,448			231,669		272,448
	Net additions (withdrawals)	697		462		3,788		(3,300	)	(262	)		6,686		688
	Stable value account values included above	49,544		50,202		50,601		51,429		51,293
	Institutional Investment Products:
	Beginning total account value	195,237		200,759		203,101		215,978		217,580			194,492		200,759
	Additions	8,843		2,247		15,044		5,235		8,575			21,310		31,101
	Withdrawals and benefits	(3,324	)	(3,649	)	(4,161	)	(4,626	)	(4,307	)		(15,409	)	(16,743	)
	Change in market value, interest credited and interest income	1,173		2,644		2,826		2,406		1,213			3,303		9,089
	Other (1)	(1,170	)	1,100		(832	)	(1,413	)	4,535			(2,937	)	3,390
	Ending total account value	200,759		203,101		215,978		217,580		227,596			200,759		227,596
	Net additions (withdrawals)	5,519		(1,402	)	10,883		609		4,268			5,901		14,358
	Amounts included in ending total account value above:
	Investment-only stable value wraps	67,934		68,922		69,674		69,977		69,150			67,934		69,150
	Longevity reinsurance (2)	44,249		45,500		57,169		58,481		66,074			44,249		66,074
	Group annuities and other products	88,576		88,679		89,135		89,122		92,372			88,576		92,372
	Ending total account value	200,759		203,101		215,978		217,580		227,596			200,759		227,596
_________
(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.

Page 15

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	STATEMENTS OF OPERATIONS - U.S. BUSINESSES - U.S. WORKPLACE SOLUTIONS DIVISION - GROUP INSURANCE
	(in millions)
		2018	2019						Year-to-date
		4Q	1Q		2Q	3Q	4Q		2018		2019		% change
	Revenues (1):
	Premiums	1,099	1,102		1,110	1,076	1,082		4,397		4,370		-1%
	Policy charges and fee income	152	163		163	175	153		597		654		10%
	Net investment income	148	151		162	162	149		616		624		1%
	Asset management fees, commissions and other income	16	25		26	25	26		75		102		36%
	Total revenues	1,415	1,441		1,461	1,438	1,410		5,685		5,750		1%
	Benefits and Expenses (1):
	Insurance and annuity benefits	1,071	1,087		1,078	1,045	1,047		4,241		4,257		—%
	Interest credited to policyholders' account balances	71	70		73	80	63		282		286		1%
	Interest expense	1	1		—	1	—		2		2		0%
	Deferral of acquisition costs	—	(4	)	—	—	(1	)	(1	)	(5	)	-400%
	Amortization of acquisition costs	1	1		2	2	2		5		7		40%
	General and administrative expenses	238	233		227	220	238		927		918		-1%
	Total benefits and expenses	1,382	1,388		1,380	1,348	1,349		5,456		5,465		—%
	Adjusted operating income before income taxes	33	53		81	90	61		229		285		24%
__________
(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.
Quarterly Financial Supplement
Fourth Quarter 2019
	U.S. BUSINESSES -U.S. WORKPLACE SOLUTIONS DIVISION - GROUP INSURANCE SUPPLEMENTARY INFORMATION
	(dollar amounts in millions)
		2018		2019									Year-to-date
		4Q		1Q		2Q		3Q		4Q			2018		2019
	GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	Group life	24		174		17		42		21			376		254
	Group disability	13		119		16		18		6			183		159
	Total	37		293		33		60		27			559		413
	Future Policy Benefits (1)(2):
	Group life	2,293		2,212		2,227		2,162		2,404
	Group disability	2		29		19		10		3
	Total	2,295		2,241		2,246		2,172		2,407
	Policyholders' Account Balances (1):
	Group life	8,889		8,798		8,887		8,635		8,382
	Group disability	200		198		183		190		205
	Total	9,089		8,996		9,070		8,825		8,587
	Separate Account Liabilities (1):
	Group life	24,044		24,809		26,048		26,361		26,325
	Group Life Insurance:
	Gross premiums, policy charges and fee income (3)(4)	1,094		1,068		1,075		989		1,025			4,359		4,157
	Earned premiums	866		847		842		806		822			3,462		3,317
	Earned policy charges and fee income	140		149		150		162		140			549		601
	Benefits ratio (5)	86.7	%	89.0	%	88.5	%	84.7	%	85.5	%		87.4	%	87.0	%
	Administrative operating expense ratio	13.0	%	11.7	%	12.2	%	13.1	%	13.9	%		12.2	%	12.7	%
	Persistency ratio	94.5	%	93.5	%	92.7	%	92.2	%	92.2	%
	Group Disability Insurance:
	Gross premiums, policy charges and fee income (3)	259		285		290		296		288			1,030		1,159
	Earned premiums	233		255		268		270		260			935		1,053
	Earned policy charges and fee income	12		14		13		13		13			48		53
	Benefits ratio (5)	81.5	%	74.6	%	74.5	%	79.4	%	82.2	%		77.8	%	77.7	%
	Administrative operating expense ratio	28.0	%	26.9	%	24.2	%	22.0	%	23.3	%		27.1	%	24.1	%
	Persistency ratio	93.9	%	94.5	%	94.4	%	93.9	%	93.6	%
	Total Group Insurance:
	Benefits ratio (5)	85.7	%	85.9	%	85.5	%	83.5	%	84.8	%		85.5	%	84.9	%
	Administrative operating expense ratio	15.9	%	14.9	%	14.8	%	15.2	%	16.0	%		15.1	%	15.2	%
__________
(1) As of end of period.
(2) The amounts shown exclude liabilities for unpaid claims and claim adjustment expenses.
(3) Before returns of premiums to participating policyholders for favorable claims experience.
(4) The amount for the fourth quarter of 2018 has been reclassified to conform to current period presentation.
(5) 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 90.2%, 65.3% and 84.7% for the three months ended June 30, 2019, respectively. Benefit ratios including these impacts for Group Life, Group Disability, and Total Group Insurance are 87.4%, 75.4%, 84.7% and 87.2%, 75.8%, 84.9% for year-to-date December 31, 2019 and December 31, 2018, respectively.

Page 17

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION
	(in millions)
		2018		2019								Year-to-date
		4Q		1Q		2Q		3Q		4Q		2018		2019		% change
	Revenues (1):
	Premiums	306		332		328		288		268		1,106		1,216		10%
	Policy charges and fee income	1,231		1,200		1,190		1,204		1,244		4,942		4,838		-2%
	Net investment income	700		726		779		792		806		2,727		3,103		14%
	Asset management fees, commissions and other income	488		459		499		496		499		2,022		1,953		-3%
	Total revenues	2,725		2,717		2,796		2,780		2,817		10,797		11,110		3%
	Benefits and Expenses (1):
	Insurance and annuity benefits	789		767		892		784		808		2,896		3,251		12%
	Interest credited to policyholders' account balances	283		265		288		297		314		1,101		1,164		6%
	Interest expense	201		212		220		238		226		781		896		15%
	Deferral of acquisition costs	(333	)	(296	)	(321	)	(328	)	(326	)	(1,146	)	(1,271	)	-11%
	Amortization of acquisition costs	216		206		459		215		210		879		1,090		24%
	General and administrative expenses	1,150		986		931		1,056		1,077		4,138		4,050		-2%
	Total benefits and expenses	2,306		2,140		2,469		2,262		2,309		8,649		9,180		6%
	Adjusted operating income before income taxes	419		577		327		518		508		2,148		1,930		-10%
__________
(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.
Quarterly Financial Supplement
Fourth Quarter 2019
	STATEMENTS OF OPERATIONS - U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL ANNUITIES
	(in millions)
		2018		2019								Year-to-date
		4Q		1Q		2Q		3Q		4Q		2018		2019		% change
	Revenues (1):
	Premiums	71		99		88		51		30		179		268		50%
	Policy charges and fee income	679		669		687		677		671		2,846		2,704		-5%
	Net investment income	177		191		211		225		229		694		856		23%
	Asset management fees, commissions and other income	297		276		302		298		291		1,247		1,167		-6%
	Total revenues	1,224		1,235		1,288		1,251		1,221		4,966		4,995		1%
	Benefits and Expenses (1):
	Insurance and annuity benefits	128		119		134		100		82		370		435		18%
	Interest credited to policyholders' account balances	84		78		87		84		85		335		334		0%
	Interest expense	16		18		28		43		33		67		122		82%
	Deferral of acquisition costs	(113	)	(110	)	(127	)	(127	)	(101	)	(420	)	(465	)	-11%
	Amortization of acquisition costs	115		116		140		128		129		511		513		—%
	General and administrative expenses	549		542		564		564		543		2,178		2,213		2%
	Total benefits and expenses	779		763		826		792		771		3,041		3,152		4%
	Adjusted operating income before income taxes	445		472		462		459		450		1,925		1,843		-4%
	__________
	(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.
Quarterly Financial Supplement
Fourth Quarter 2019
	U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL ANNUITIES SALES RESULTS AND ACCOUNT VALUES
	(in millions)
		2018		2019									Year-to-date
		4Q		1Q		2Q		3Q		4Q			2018		2019
	Variable Annuities:
	Beginning total account value	162,369		147,339		157,896		161,017		160,130			165,153		147,339
	Sales: Highest Daily Suite (1)	1,048		950		1,034		1,037		731			4,301		3,752
	Other variable annuities (2)	1,001		1,059		1,301		1,301		1,127			3,562		4,788
	Total sales	2,049		2,009		2,335		2,338		1,858			7,863		8,540
	Full surrenders and death benefits (3)	(2,034	)	(1,914	)	(2,370	)	(2,539	)	(2,448	)		(8,851	)	(9,271	)
	Sales, net of full surrenders and death benefits	15		95		(35	)	(201	)	(590	)		(988	)	(731	)
	Partial withdrawals and other benefit payments (3)	(1,264	)	(1,142	)	(1,139	)	(1,141	)	(1,379	)		(4,473	)	(4,801	)
	Net flows	(1,249	)	(1,047	)	(1,174	)	(1,342	)	(1,969	)		(5,461	)	(5,532	)
	Change in market value, interest credited, and other	(12,884	)	12,498		5,210		1,378		7,689			(8,650	)	26,775
	Policy charges	(897	)	(894	)	(915	)	(923	)	(922	)		(3,703	)	(3,654	)
	Ending total account value	147,339		157,896		161,017		160,130		164,928			147,339		164,928
	Variable Annuities Account Value by Product: (4)
	Highest Daily Suite - risk retained by Prudential (1)	106,878		114,164		115,584		114,059		117,323			106,878		117,323
	Highest Daily Suite - externally reinsured living benefits	2,873		3,059		3,095		3,055		3,149			2,873		3,149
	Other variable annuities (2)	37,588		40,673		42,338		43,016		44,456			37,588		44,456
	Ending total account value	147,339		157,896		161,017		160,130		164,928			147,339		164,928
	Fixed Annuities and other products:
	Beginning total account value	3,593		3,741		3,994		4,296		4,568			3,473		3,741
	Sales	189		298		340		319		223			407		1,180
	Full surrenders and death benefits (3)	(23	)	(26	)	(27	)	(29	)	(21	)		(107	)	(103	)
	Sales, net of full surrenders and death benefits	166		272		313		290		202			300		1,077
	Partial withdrawals and other benefit payments (3)	(90	)	(94	)	(90	)	(88	)	(90	)		(341	)	(362	)
	Net flows	76		178		223		202		112			(41	)	715
	Interest credited and other	72		75		79		70		74			309		298
	Policy charges	—		—		—		—		(1	)		—		(1	)
	Ending total account value, gross	3,741		3,994		4,296		4,568		4,753			3,741		4,753
	Reinsurance ceded	—		—		—		—		(71	)		—		(71	)
	Ending total account value, net	3,741		3,994		4,296		4,568		4,682			3,741		4,682
	SALES BY DISTRIBUTION CHANNEL:
	Variable and Fixed Annuities (5):
	Insurance Agents	684		680		735		724		676			2,468		2,815
	Wirehouses	430		452		533		465		310			1,541		1,760
	Independent Marketing Organization	—		—		—		6		30			—		36
	Independent Financial Planners	974		1,001		1,212		1,263		904			3,682		4,380
	Bank Distribution	150		174		195		199		161			579		729
	Total	2,238		2,307		2,675		2,657		2,081			8,270		9,720
__________
(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) The amounts for fourth quarter of 2018 and first quarter of 2019 have been reclassified to conform to current period presentation.
(4) The amounts for the fourth quarter of 2018 have been revised to correct the previously reported amounts for a reclass between Highest Daily Suite - risk retained by Prudential and Other variable annuities products.
(5) Amounts represent gross sales.

Page 20

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY
	(in millions)
		2018		2019									Year-to-date
		4Q		1Q		2Q		3Q		4Q			2018		2019
	Account Values in General Account (1):
	Beginning balance	10,006		10,298		10,429		10,696		10,971			9,892		10,298
	Premiums and deposits	373		466		522		507		354			1,158		1,849
	Full surrenders and death benefits (2)	(99	)	(96	)	(108	)	(90	)	(82	)		(416	)	(376	)
	Premiums and deposits net of full surrenders and death benefits	274		370		414		417		272			742		1,473
	Partial withdrawals and other benefit payments (2)	(168	)	(163	)	(153	)	(151	)	(166	)		(611	)	(633	)
	Net flows	106		207		261		266		106			131		840
	Interest credited and other	69		57		41		68		70			268		236
	Net transfers (to) from separate account	117		(133	)	(35	)	(59	)	(103	)		8		(330	)
	Policy charges	—		—		—		—		(1	)		(1	)	(1	)
	Ending balance, gross	10,298		10,429		10,696		10,971		11,043			10,298		11,043
	Reinsurance ceded	—		—		—		—		(71	)		—		(71	)
	Ending balance, net	10,298		10,429		10,696		10,971		10,972			10,298		10,972
	Account Values in Separate Account (1):
	Beginning balance	155,956		140,782		151,461		154,617		153,727			158,734		140,782
	Premiums and deposits	1,865		1,841		2,153		2,150		1,727			7,112		7,871
	Full surrenders and death benefits (2)	(1,958	)	(1,844	)	(2,289	)	(2,478	)	(2,387	)		(8,542	)	(8,998	)
	Premiums and deposits net of full surrenders and death benefits	(93	)	(3	)	(136	)	(328	)	(660	)		(1,430	)	(1,127	)
	Partial withdrawals and other benefit payments (2)	(1,186	)	(1,073	)	(1,076	)	(1,078	)	(1,303	)		(4,203	)	(4,530	)
	Net flows	(1,279	)	(1,076	)	(1,212	)	(1,406	)	(1,963	)		(5,633	)	(5,657	)
	Change in market value, interest credited and other	(12,881	)	12,516		5,248		1,380		7,693			(8,609	)	26,837
	Net transfers (to) from general account	(117	)	133		35		59		103			(8	)	330
	Policy charges	(897	)	(894	)	(915	)	(923	)	(922	)		(3,702	)	(3,654	)
	Ending balance	140,782		151,461		154,617		153,727		158,638			140,782		158,638
__________
(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.
(2) The amounts for fourth quarter of 2018 and first quarter of 2019 have been reclassified to conform to current period presentation.

Page 21

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL ANNUITIES LIVING BENEFIT FEATURES
(in millions)
	2018	2019
	4Q	1Q	2Q	3Q	4Q
ACCOUNT VALUE AND NET AMOUNT AT RISK (1):
Variable Annuity Account Values
Guaranteed minimum accumulation benefits	2,578	2,582	2,498	2,382	2,297
Guaranteed minimum withdrawal benefits	364	381	370	350	353
Guaranteed minimum income benefits	2,306	2,474	2,475	2,395	2,457
Guaranteed minimum withdrawal & income benefits - risk retained by Prudential	118,115	126,813	129,832	129,683	133,616
Guaranteed minimum withdrawal & income benefits - externally reinsured	2,873	3,059	3,096	3,055	3,150
Total	126,236	135,309	138,271	137,865	141,873
Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature - risk retained by Prudential	102,300	109,191	110,597	109,204	112,269
Account Values with Auto-Rebalancing Feature - externally reinsured	2,873	3,059	3,096	3,055	3,150
Account Values without Auto-Rebalancing Feature	21,063	23,059	24,578	25,606	26,454
Total	126,236	135,309	138,271	137,865	141,873
Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature - risk retained by Prudential	6,714	4,551	4,188	4,503	3,765
Net Amount at Risk without Auto-Rebalancing Feature	1,226	799	702	709	600
Total	7,940	5,350	4,890	5,212	4,365
__________
(1) At end of period.

Page 22

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL ANNUITIES DEATH BENEFIT FEATURES
(in millions)
	2018	2019
	4Q	1Q	2Q	3Q	4Q
ACCOUNT VALUE AND NET AMOUNT AT RISK (1):
Variable Annuity Account Values
Return of net deposits:
Account value	115,489	124,019	126,897	126,642	130,465
Net amount at risk	917	316	254	258	235
Minimum return, anniversary contract value, or maximum contract value:
Account value	27,673	29,334	29,453	28,799	29,446
Net amount at risk	5,071	3,374	3,022	3,117	2,627
Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature	105,172	112,250	113,693	112,259	115,419
Account Values without Auto-Rebalancing Feature	37,990	41,103	42,657	43,182	44,492
Total	143,162	153,353	156,350	155,441	159,911
Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature	3,115	1,755	1,482	1,557	1,238
Net Amount at Risk without Auto-Rebalancing Feature	2,873	1,935	1,794	1,818	1,624
Total	5,988	3,690	3,276	3,375	2,862
__________
(1) At end of period.

Page 23

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE
	(in millions)
		2018		2019								Year-to-date
		4Q		1Q		2Q		3Q		4Q		2018			2019		% change
	Revenues (1):
	Premiums	235		233		240		237		238		927			948		2	%
	Policy charges and fee income	552		531		503		527		573		2,096			2,134		2	%
	Net investment income	523		535		568		567		577		2,033			2,247		11	%
	Asset management fees, commissions and other income	191		183		197		198		208		775			786		1	%
	Total revenues	1,501		1,482		1,508		1,529		1,596		5,831			6,115		5	%
	Benefits and Expenses (1):
	Insurance and annuity benefits	661		648		758		684		726		2,526			2,816		11	%
	Interest credited to policyholders' account balances	199		187		201		213		229		766			830		8	%
	Interest expense	185		194		192		195		193		714			774		8	%
	Deferral of acquisition costs	(220	)	(186	)	(194	)	(201	)	(225	)	(726	)		(806	)	-11	%
	Amortization of acquisition costs	101		90		319		87		81		368			577		57	%
	General and administrative expenses	601		444		367		492		534		1,960			1,837		-6	%
	Total benefits and expenses	1,527		1,377		1,643		1,470		1,538		5,608			6,028		7	%
	Adjusted operating income (loss) before income taxes	(26	)	105		(135	)	59		58		223			87		-61	%
__________
(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.
Quarterly Financial Supplement
Fourth Quarter 2019
	U.S. BUSINESSES - U.S. INDIVIDUAL SOLUTIONS DIVISION - INDIVIDUAL LIFE SUPPLEMENTARY INFORMATION
	(in millions)
		2018		2019									Year-to-date
		4Q		1Q		2Q		3Q		4Q			2018		2019
	ANNUALIZED NEW BUSINESS PREMIUMS (1):
	Term life	55		51		53		49		47			213		200
	Guaranteed Universal life	29		21		24		24		26			97		95
	Other Universal life	51		30		48		35		42			150		155
	Variable life	58		61		56		67		94			163		278
	Total	193		163		181		175		209			623		728
	ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):
	Prudential Advisors	37		34		39		38		40			135		151
	Third party distribution	156		129		142		137		169			488		577
	Total	193		163		181		175		209			623		728
	ACCOUNT VALUE ACTIVITY:
	Policyholders' Account Balances (2):
	Beginning balance	28,347		28,728		28,737		28,321		28,546			26,861		28,728
	Premiums and deposits	1,072		783		866		855		864			3,334		3,368
	Surrenders and withdrawals	(459	)	(291	)	(345	)	(340	)	(318	)		(1,281	)	(1,294	)
	Net sales	613		492		521		515		546			2,053		2,074
	Benefit payments	61		(103	)	(114	)	(120	)	(118	)		(371	)	(455	)
	Net flows	674		389		407		395		428			1,682		1,619
	Interest credited and other	229		(24	)	(455	)	168		450			1,584		139
	Net transfers (to) from separate account	(80	)	76		67		102		70			294		315
	Policy charges	(442	)	(432	)	(435	)	(440	)	(453	)		(1,693	)	(1,760	)
	Ending balance	28,728		28,737		28,321		28,546		29,041			28,728		29,041
	Separate Account Liabilities:
	Beginning balance	33,562		29,796		32,852		33,647		33,624			32,085		29,796
	Premiums and deposits	438		494		411		424		505			1,601		1,834
	Surrenders and withdrawals	(262	)	(260	)	(258	)	(272	)	(311	)		(1,099	)	(1,101	)
	Net sales	176		234		153		152		194			502		733
	Benefit payments	(246	)	(95	)	(188	)	(16	)	(111	)		(388	)	(410	)
	Net flows	(70	)	139		(35	)	136		83			114		323
	Change in market value, interest credited and other	(3,535	)	3,232		1,139		192		2,251			(1,173	)	6,814
	Net transfers (to) from general account	80		(76	)	(67	)	(102	)	(70	)		(294	)	(315	)
	Policy charges	(241	)	(239	)	(242	)	(249	)	(255	)		(936	)	(985	)
	Ending balance	29,796		32,852		33,647		33,624		35,633			29,796		35,633
	FACE AMOUNT IN FORCE (3):
	Term life	788,013		795,539		803,327		808,979		814,217
	Guaranteed Universal life	145,861		146,751		147,885		148,777		150,080
	Other Universal life	50,650		51,100		52,140		52,839		53,522
	Variable life	160,747		164,118		165,215		166,405		170,701
	Total	1,145,271		1,157,508		1,168,567		1,177,000		1,188,520
__________
(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; before reinsurance ceded.

Page 25

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	U.S. BUSINESSES - STATEMENTS OF OPERATIONS - ASSURANCE IQ
	(in millions)
		2018	2019						Year-to-date
		4Q	1Q	2Q	3Q	4Q			2018	2019
	Revenues (1):
	Premiums					—				—
	Policy charges and fee income					—				—
	Net investment income					—				—
	Asset management fees, commissions and other income					101				101
	Total revenues					101				101
	Benefits and Expenses (1):
	Insurance and annuity benefits					—				—
	Interest credited to policyholders' account balances					—				—
	Interest expense					1				1
	Deferral of acquisition costs					—				—
	Amortization of acquisition costs					—				—
	General and administrative expenses					109				109
	Total benefits and expenses					110				110
	Adjusted operating income (loss) before income taxes					(9	)			(9	)
__________
(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.

Page 26

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES
	(in millions)
		2018		2019								Year-to-date
		4Q		1Q		2Q		3Q		4Q		2018		2019		% change
	Revenues (1):
	Premiums	3,913		4,585		3,906		4,150		4,101		16,171		16,742		4%
	Policy charges and fee income	133		127		114		127		126		534		494		-7%
	Net investment income	1,311		1,333		1,377		1,396		1,452		5,245		5,558		6%
	Asset management fees, commissions and other income	59		107		104		98		92		284		401		41%
	Total revenues	5,416		6,152		5,501		5,771		5,771		22,234		23,195		4%
	Benefits and Expenses (1):
	Insurance and annuity benefits	3,421		3,950		3,400		3,637		3,596		14,071		14,583		4%
	Interest credited to policyholders' account balances	220		236		224		233		225		907		918		1%
	Interest expense	6		6		8		7		4		21		25		19%
	Deferral of acquisition costs	(414	)	(463	)	(394	)	(421	)	(413	)	(1,717	)	(1,691	)	2%
	Amortization of acquisition costs	310		334		278		317		310		1,233		1,239		—%
	General and administrative expenses	1,137		1,167		1,136		1,207		1,252		4,453		4,762		7%
	Total benefits and expenses	4,680		5,230		4,652		4,980		4,974		18,968		19,836		5%
	Adjusted operating income before income taxes	736		922		849		791		797		3,266		3,359		3%
__________
(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.
Quarterly Financial Supplement
Fourth Quarter 2019
	STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - LIFE PLANNER
	(in millions)
		2018		2019								Year-to-date
		4Q		1Q		2Q		3Q		4Q		2018			2019		% change
	Revenues (1):
	Premiums	2,035		2,446		2,123		2,131		2,170		8,364			8,870		6%
	Policy charges and fee income	99		94		75		95		93		394			357		-9%
	Net investment income	548		581		596		615		629		2,243			2,421		8%
	Asset management fees, commissions and other income	33		54		58		50		54		175			216		23%
	Total revenues	2,715		3,175		2,852		2,891		2,946		11,176			11,864		6%
	Benefits and Expenses (1):
	Insurance and annuity benefits	1,831		2,146		1,896		1,926		1,942		7,499			7,910		5%
	Interest credited to policyholders' account balances	55		68		56		66		59		243			249		2%
	Interest expense	3		3		4		4		2		11			13		18%
	Deferral of acquisition costs	(220	)	(260	)	(220	)	(231	)	(238	)	(886	)		(949	)	-7%
	Amortization of acquisition costs	161		171		136		158		151		633			616		-3%
	General and administrative expenses	536		566		542		601		636		2,086			2,345		12%
	Total benefits and expenses	2,366		2,694		2,414		2,524		2,552		9,586			10,184		6%
	Adjusted operating income before income taxes	349		481		438		367		394		1,590			1,680		6%
__________
(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.
Quarterly Financial Supplement
Fourth Quarter 2019
	STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - GIBRALTAR LIFE & OTHER
	(in millions)
		2018		2019								Year-to-date
		4Q		1Q		2Q		3Q		4Q		2018			2019		% change
	Revenues (1):
	Premiums	1,878		2,139		1,783		2,019		1,931		7,807			7,872		1%
	Policy charges and fee income	34		33		39		32		33		140			137		-2%
	Net investment income	763		752		781		781		823		3,002			3,137		4%
	Asset management fees, commissions and other income	26		53		46		48		38		109			185		70%
	Total revenues	2,701		2,977		2,649		2,880		2,825		11,058			11,331		2%
	Benefits and Expenses (1):
	Insurance and annuity benefits	1,590		1,804		1,504		1,711		1,654		6,572			6,673		2%
	Interest credited to policyholders' account balances	165		168		168		167		166		664			669		1%
	Interest expense	3		3		4		3		2		10			12		20%
	Deferral of acquisition costs	(194	)	(203	)	(174	)	(190	)	(175	)	(831	)		(742	)	11%
	Amortization of acquisition costs	149		163		142		159		159		600			623		4%
	General and administrative expenses	601		601		594		606		616		2,367			2,417		2%
	Total benefits and expenses	2,314		2,536		2,238		2,456		2,422		9,382			9,652		3%
	Adjusted operating income before income taxes	387		441		411		424		403		1,676			1,679		0%
__________
(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 29

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
	(in millions)
		2018	2019					Year-to-date
		4Q	1Q	2Q	3Q	4Q		2018	2019
	Actual exchange rate basis (1):
	Net premiums, policy charges and fee income:
	Japan, excluding Gibraltar Life	1,542	1,966	1,599	1,656	1,649		6,496	6,870
	Gibraltar Life	1,912	2,172	1,822	2,051	1,964		7,947	8,009
	All other countries	592	574	599	570	614		2,262	2,357
	Total	4,046	4,712	4,020	4,277	4,227		16,705	17,236
	Annualized new business premiums (2):
	Japan, excluding Gibraltar Life	206	292	186	186	201		819	865
	Gibraltar Life	326	323	296	312	282		1,483	1,213
	All other countries	110	112	116	131	168		438	527
	Total	642	727	598	629	651		2,740	2,605
	Annualized new business premiums by distribution channel (2):
	Life Planners	316	404	302	317	369		1,257	1,392
	Gibraltar Life Consultants	175	164	167	152	124		783	607
	Banks	95	108	85	119	115		480	427
	Independent Agency	56	51	44	41	43		220	179
	Total	642	727	598	629	651		2,740	2,605
	Constant exchange rate basis (3):
	Net premiums, policy charges and fee income:
	Japan, excluding Gibraltar Life	1,611	2,029	1,643	1,677	1,682		6,698	7,031
	Gibraltar Life	1,989	2,235	1,866	2,076	2,000		8,170	8,177
	All other countries	609	587	625	614	652		2,260	2,478
	Total	4,209	4,851	4,134	4,367	4,334		17,128	17,686
	Annualized new business premiums:
	Japan, excluding Gibraltar Life	210	296	189	187	202		831	874
	Gibraltar Life	328	325	297	314	283		1,490	1,219
	All other countries	113	113	120	136	177		431	546
	Total	651	734	606	637	662		2,752	2,639
	Annualized new business premiums by distribution channel:
	Life Planners	323	409	309	323	379		1,262	1,420
	Gibraltar Life Consultants	177	166	168	152	126		789	612
	Banks	95	108	85	119	116		480	428
	Independent Agency	56	51	44	43	41		221	179
	Total	651	734	606	637	662		2,752	2,639
__________
(1) Translated based on applicable average exchange rates for the period shown.
(2) The amounts for the second quarter of 2019 have been revised to correct the previously reported amounts.
(3) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 105 per U.S. dollar and Korean won 1,110 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 30

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION
		2018		2019
		4Q		1Q		2Q		3Q		4Q
	Face amount of individual policies in force at end of period (in billions) (1)(2):
	(Constant exchange rate basis)
	Japan, excluding Gibraltar Life	371		378		380		382		384
	Gibraltar Life	361		362		364		365		365
	All other countries	131		133		135		137		141
	Total	863		873		879		884		890
	Number of individual policies in force at end of period (in thousands) (2):
	Japan, excluding Gibraltar Life	3,907		3,975		4,015		4,060		4,106
	Gibraltar Life	7,218		7,214		7,198		7,189		7,166
	All other countries	2,134		2,152		2,194		2,200		2,243
	Total	13,259		13,341		13,407		13,449		13,515
	International life insurance policy persistency:
	Life Planner:
	13 months	92.7	%	92.5	%	91.6	%	91.9	%	92.2	%
	25 months	86.6	%	86.4	%	86.8	%	86.1	%	85.4	%
	Gibraltar Life (3):
	13 months	93.9	%	94.1	%	94.2	%	94.4	%	94.6	%
	25 months	87.1	%	87.1	%	87.3	%	87.5	%	87.8	%
	Number of Life Planners at end of period:
	Japan	4,183		4,337		4,287		4,366		4,356
	All other countries	3,786		3,757		3,883		3,914		4,062
	Total Life Planners	7,969		8,094		8,170		8,280		8,418
	Gibraltar Life Consultants	7,964		7,997		7,767		7,633		7,403
__________
	(1) Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 105 per U.S. dollar and Korean won 1,110 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.
	(2) Direct business only; policy count includes annuities.
	(3) Reflects business sold by Life Consultants and Independent Agents.

Page 31

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	STATEMENTS OF OPERATIONS - CORPORATE AND OTHER
	(in millions)
		2018		2019								Year-to-date
		4Q		1Q		2Q		3Q		4Q		2018		2019		% change
	Revenues (1):
	Premiums	(5	)	(6	)	(3	)	(2	)	(3	)	(27	)	(14	)	48%
	Policy charges and fee income	(13	)	(14	)	(12	)	(14	)	(11	)	(51	)	(51	)	—%
	Net investment income	131		132		147		156		144		452		579		28%
	Asset management fees, commissions and other income	(269	)	(283	)	(296	)	(317	)	(295	)	(1,079	)	(1,191	)	-10%
	Total revenues	(156	)	(171	)	(164	)	(177	)	(165	)	(705	)	(677	)	4%
	Benefits and Expenses (1):
	Insurance and annuity benefits	(7	)	12		5		3		16		(12	)	36		400%
	Interest credited to policyholders' account balances	—		—		—		—		—		—		—		-
	Interest expense	142		142		142		108		129		535		521		-3%
	Deferral of acquisition costs	12		14		14		12		14		49		54		10%
	Amortization of acquisition costs	(10	)	(11	)	(12	)	(12	)	(11	)	(44	)	(46	)	-5%
	General and administrative expenses	36		84		22		(7	)	425		50		524		948%
	Total benefits and expenses	173		241		171		104		573		578		1,089		88%
	Adjusted operating loss before income taxes	(329	)	(412	)	(335	)	(281	)	(738	)	(1,283	)	(1,766	)	-38%
	Adjusted operating loss before income taxes comprised as follows:
	Interest income	43		44		42		48		36		86		170		98%
	Interest expense	(194	)	(199	)	(200	)	(189	)	(198	)	(725	)	(786	)	-8%
	Implementation costs	—		—		(19	)	(18	)	(364	)	—		(401	)	-
	Long-term and deferred compensation expense	53		(107	)	(30	)	7		(18	)	(9	)	(148	)	-1544%
	Other (2)	(231	)	(150	)	(128	)	(129	)	(194	)	(635	)	(601	)	5%
	Adjusted operating loss before income taxes	(329	)	(412	)	(335	)	(281	)	(738	)	(1,283	)	(1,766	)	-38%
__________
(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.
(2) Includes pension and employee benefits and other corporate activities, including consolidating adjustments.

Page 32

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
INVESTMENT PORTFOLIO COMPOSITION
(in millions)
			December 31, 2019							December 31, 2018
					PFI Excluding							PFI Excluding
			Total	Closed	Closed Block Division					Total	Closed	Closed Block Division
			Portfolio	Block	Amount	% of Total				Portfolio	Block	Amount		% of Total
		Fixed maturities:
		Public, available-for-sale, at fair value	325,393	29,011	296,382	64.9	%			295,312	26,203	269,109		64.8	%
		Public, held-to-maturity, at amortized cost	1,705	—	1,705	0.4	%			1,745	—	1,745		0.4	%
		Private, available-for-sale, at fair value	65,115	12,365	52,750	11.6	%			57,870	12,542	45,328		10.9	%
		Private, held-to-maturity, at amortized cost	228	—	228	0.1	%			268	—	268		0.1	%
		Fixed maturities, trading, at fair value	2,723	256	2,467	0.5	%			2,088	195	1,893		0.5	%
		Assets supporting experience-rated contractholder liabilities, at fair value	21,597	—	21,597	4.7	%			21,254	—	21,254		5.1	%
		Equity securities, at fair value	6,831	2,245	4,586	1.0	%			5,633	1,784	3,849		0.9	%
		Commercial mortgage and other loans, at book value	63,300	8,629	54,671	12.0	%			59,033	8,782	50,251		12.1	%
		Policy loans, at outstanding balance	12,096	4,264	7,832	1.7	%			12,016	4,410	7,606		1.8	%
		Other invested assets (1)	12,544	3,334	9,210	2.0	%			11,723	3,316	8,407		2.0	%
		Short-term investments	5,450	227	5,223	1.1	%			6,426	478	5,948		1.4	%
		Subtotal (2)	516,982	60,331	456,651	100.0	%			473,368	57,710	415,658		100.0	%
		Invested assets of other entities and operations (3)	5,778	—	5,778					5,877	—	5,877
		Total investments	522,760	60,331	462,429					479,245	57,710	421,535
	Fixed Maturities by Credit Quality (2)(4):		December 31, 2019							December 31, 2018
			PFI Excluding Closed Block Division							PFI Excluding Closed Block Division
				Gross	Gross						Gross	Gross
			Amortized	Unrealized	Unrealized	Fair				Amortized	Unrealized	Unrealized		Fair
			Cost	Gains	Losses	Value		% of Total		Cost	Gains	Losses		Value		% of Total
		Public Fixed Maturities:
		NAIC Rating (5)
		1	221,567	35,494	232	256,829		86.1	%	210,578	23,776	2,307		232,047		85.5	%
		2	28,317	3,485	81	31,721		10.6	%	28,246	1,453	1,195		28,504		10.5	%
		Subtotal - High or Highest Quality Securities	249,884	38,979	313	288,550		96.7	%	238,824	25,229	3,502		260,551		96.0	%
		3	5,337	637	49	5,925		2.0	%	5,973	280	240		6,013		2.2	%
		4	2,659	191	57	2,793		0.9	%	3,709	275	287		3,697		1.4	%
		5	830	176	66	940		0.3	%	725	85	57		753		0.3	%
		6	223	27	16	234		0.1	%	181	8	7		182		0.1	%
		Subtotal - Other Securities	9,049	1,031	188	9,892		3.3	%	10,588	648	591		10,645		4.0	%
		Total	258,933	40,010	501	298,442		100.0	%	249,412	25,877	4,093		271,196		100.0	%
		Private Fixed Maturities:
		NAIC Rating (5)
		1	12,215	780	55	12,940		24.3	%	11,712	362	261		11,813		25.9	%
		2	30,987	1,731	303	32,415		61.2	%	27,522	814	804		27,532		60.4	%
		Subtotal - High or Highest Quality Securities	43,202	2,511	358	45,355		85.5	%	39,234	1,176	1,065		39,345		86.3	%
		3	4,696	217	44	4,869		9.2	%	4,176	50	168		4,058		8.9	%
		4	2,255	57	41	2,271		4.3	%	1,545	16	81		1,480		3.2	%
		5	450	20	17	453		0.9	%	670	14	20		664		1.5	%
		6	41	4	1	44		0.1	%	72	5	11		66		0.1	%
		Subtotal - Other Securities	7,442	298	103	7,637		14.5	%	6,463	85	280		6,268		13.7	%
		Total	50,644	2,809	461	52,992		100.0	%	45,697	1,261	1,345		45,613		100.0	%
	__________
	(1) Other invested assets consist of investments in limited partnerships and limited liability companies (“LPs/LLCs”), investment real estate held through direct ownership, derivative instruments and other miscellaneous investments.
	(2) Excludes (i) assets of our investment management operations, including assets managed for third parties, (ii) derivative operations and (iii) those assets classified as "Separate account assets" on our balance sheet.
	(3) Includes invested assets of our investment management and derivative operations. Excludes assets of our investment management operations that are managed for third parties and those assets classified as “Separate account assets” on our balance sheet.
	(4) Excludes fixed maturity securities classified as trading.
	(5) Reflects equivalent ratings for investments of the international operations. Includes, as of December 31, 2019 and 2018, 796 securities with amortized cost of $3,073 million (fair value $3,130 million) and 1,744 securities with amortized cost of $9,079 million (fair value $9,135 million), respectively, that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 33

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
INVESTMENT PORTFOLIO COMPOSITION - JAPANESE INSURANCE OPERATIONS AND EXCLUDING JAPANESE INSURANCE OPERATIONS (1)
(in millions)
			December 31, 2019			December 31, 2018
			Amount	% of Total		Amount	% of Total
	Japanese Insurance Operations (2):
		Fixed maturities:
		Public, available-for-sale, at fair value	142,220	73.6	%	133,084	74.6	%
		Public, held-to-maturity, at amortized cost	1,705	0.9	%	1,745	1.0	%
		Private, available-for-sale, at fair value	19,189	10.0	%	16,222	9.1	%
		Private, held-to-maturity, at amortized cost	228	0.1	%	268	0.1	%
		Fixed maturities, trading, at fair value	492	0.3	%	328	0.2	%
		Assets supporting experience-rated contractholder liabilities, at fair value	2,777	1.4	%	2,441	1.4	%
		Equity securities, at fair value	2,185	1.1	%	1,972	1.1	%
		Commercial mortgage and other loans, at book value	19,138	9.9	%	17,228	9.6	%
		Policy loans, at outstanding balance	2,859	1.5	%	2,715	1.5	%
		Other invested assets (3)	2,187	1.1	%	1,957	1.1	%
		Short-term investments	165	0.1	%	451	0.3	%
		Total	193,145	100.0	%	178,411	100.0	%
			December 31, 2019			December 31, 2018
			Amount	% of Total		Amount	% of Total
	Excluding Japanese Insurance Operations (2):
		Fixed maturities:
		Public, available-for-sale, at fair value	154,162	58.5	%	136,025	57.3	%
		Public, held-to-maturity, at amortized cost	—	0.0	%	—	0.0	%
		Private, available-for-sale, at fair value	33,561	12.7	%	29,106	12.3	%
		Private, held-to-maturity, at amortized cost	—	0.0	%	—	0.0	%
		Fixed maturities, trading, at fair value	1,975	0.8	%	1,565	0.7	%
		Assets supporting experience-rated contractholder liabilities, at fair value	18,820	7.1	%	18,813	7.9	%
		Equity securities, at fair value	2,401	0.9	%	1,877	0.8	%
		Commercial mortgage and other loans, at book value	35,533	13.5	%	33,023	13.9	%
		Policy loans, at outstanding balance	4,973	1.9	%	4,891	2.1	%
		Other invested assets (3)	7,023	2.7	%	6,450	2.7	%
		Short-term investments	5,058	1.9	%	5,497	2.3	%
		Total	263,506	100.0	%	237,247	100.0	%
__________
(1) Excludes Closed Block division.
(2) Excludes assets classified as "Separate account assets" on our balance sheet.
(3) Other invested assets consist of investments in LPs/LLCs, investment real estate held through direct ownership, derivative instruments and other miscellaneous investments.

Page 34

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
INVESTMENT RESULTS (1)
(in millions)
		Quarter Ended December 31
		2019						2018
						Realized						Realized
		Investment Income				Gains /		Investment Income				Gains /
		Yield (5)		Amount		(Losses)		Yield (5)		Amount		(Losses)
General Account (2)
	Fixed maturities (3)	3.84	%	2,900		128		3.83	%	2,746		(51	)
	Equity securities	2.88	%	32		—		2.94	%	30		—
	Commercial mortgage and other loans	4.64	%	556		(1	)	3.99	%	442		(3	)
	Policy loans	4.75	%	91		—		4.87	%	92		—
	Short-term investments and cash equivalents	2.03	%	90		—		3.02	%	89		1
	Gross investment income before investment expenses	3.87	%	3,669		127		3.82	%	3,399		(53	)
	Investment expenses	-0.14	%	(159	)	—		-0.15	%	(175	)	—
	Subtotal	3.73	%	3,510		127		3.67	%	3,224		(53	)
	Other investments (3)			128		(367	)			48		590
Investment results of other entities and operations (4)				307		(36	)			220		153
Less, investment income related to adjusted operating income reconciling items				(119	)					(110	)
	Total			3,826		(276	)			3,382		690
		Twelve Months Ended December 31
		2019						2018
						Realized						Realized
		Investment Income				Gains /		Investment Income				Gains /
		Yield (5)		Amount		(Losses)		Yield (5)		Amount		(Losses)
General Account (2)
	Fixed maturities (3)	3.87	%	11,409		633		3.87	%	10,711		285
	Equity securities	2.77	%	115		—		2.86	%	120		—
	Commercial mortgage and other loans	4.26	%	1,954		(7	)	4.03	%	1,714		(7	)
	Policy loans	4.84	%	363		—		4.91	%	359		—
	Short-term investments and cash equivalents	2.62	%	400		1		2.25	%	298		—
	Gross investment income before investment expenses	3.88	%	14,241		627		3.85	%	13,202		278
	Investment expenses	-0.14	%	(680	)	—		-0.15	%	(634	)	—
	Subtotal	3.74	%	13,561		627		3.70	%	12,568		278
	Other investments (3)			562		(1,570	)			314		1,352
Investment results of other entities and operations (4)				1,139		(37	)			1,006		217
Less, investment income related to adjusted operating income reconciling items				(460	)					(398	)
	Total			14,802		(980	)			13,490		1,847
__________
(1) Excludes Closed Block division.
(2) Excludes commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders, assets of our investment management operations, including assets that are managed for third parties and assets classified as "Separate account assets" on our balance sheet.
(3) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains / (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.
(4) Includes invested income of commercial loans, assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment management operations.
(5) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.

Page 35

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS
(in millions)
		Quarter Ended December 31
		2019						2018
						Realized						Realized
		Investment Income				Gains /		Investment Income				Gains /
		Yield (1)		Amount		(Losses)		Yield (1)		Amount		(Losses)
Japanese Insurance Operations:
	Fixed maturities (2)	2.83	%	967		126		2.88	%	937		195
	Equity securities	4.72	%	25		—		4.38	%	22		—
	Commercial mortgage and other loans	5.04	%	238		—		3.92	%	166		(2	)
	Policy loans	3.83	%	27		—		3.91	%	26		—
	Short-term investments and cash equivalents	2.35	%	6		—		5.63	%	7		—
	Gross investment income before investment expenses	3.13	%	1,263		126		3.04	%	1,158		193
	Investment expenses	-0.14	%	(69	)	—		-0.13	%	(63	)	—
	Subtotal	2.99	%	1,194		126		2.91	%	1,095		193
	Other investments (2)			47		(176	)			7		185
	Total			1,241		(50	)			1,102		378
		Twelve Months Ended December 31
		2019						2018
						Realized						Realized
		Investment Income				Gains /		Investment Income				Gains /
		Yield (1)		Amount		(Losses)		Yield (1)		Amount		(Losses)
Japanese Insurance Operations:
	Fixed maturities (2)	2.87	%	3,842		626		2.93	%	3,707		666
	Equity securities	3.27	%	66		—		3.45	%	72		—
	Commercial mortgage and other loans	4.29	%	767		1		3.96	%	623		(3	)
	Policy loans	3.92	%	107		—		3.92	%	101		—
	Short-term investments and cash equivalents	3.40	%	27		—		2.83	%	33		—
	Gross investment income before investment expenses	3.06	%	4,809		627		3.06	%	4,536		663
	Investment expenses	-0.14	%	(280	)	—		-0.13	%	(237	)	—
	Subtotal	2.92	%	4,529		627		2.93	%	4,299		663
	Other investments (2)			184		431				93		96
	Total			4,713		1,058				4,392		759
__________
(1) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.
(2) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains / (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.

Page 36

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS (1)
(in millions)
		Quarter Ended December 31
		2019						2018
						Realized							Realized
		Investment Income				Gains /		Investment Income					Gains /
		Yield (4)		Amount		(Losses)		Yield (4)			Amount		(Losses)
Excluding Japanese Insurance Operations (2):
	Fixed maturities (3)	4.67	%	1,933		2		4.62	%		1,809		(246	)
	Equity securities	1.16	%	7		—		1.47	%		8		—
	Commercial mortgage and other loans	4.38	%	318		(1	)	4.02	%		276		(1	)
	Policy loans	5.28	%	64		—		5.39	%		66		—
	Short-term investments and cash equivalents	2.01	%	84		—		2.89	%		82		1
	Gross investment income before investment expenses	4.41	%	2,406		1		4.41	%		2,241		(246	)
	Investment expenses	-0.14	%	(90	)	—		-0.16	%		(112	)	—
	Subtotal	4.27	%	2,316		1		4.25	%		2,129		(246	)
	Other investments (3)			81		(191	)				41		405
	Total			2,397		(190	)				2,170		159
		Twelve Months Ended December 31
		2019						2018
						Realized							Realized
		Investment Income				Gains /		Investment Income					Gains /
		Yield (4)		Amount		(Losses)		Yield (4)			Amount		(Losses)
Excluding Japanese Insurance Operations (2):
	Fixed maturities (3)	4.71	%	7,567		7		4.68	%		7,004		(381	)
	Equity securities	2.30	%	49		—		2.28	%		48		—
	Commercial mortgage and other loans	4.25	%	1,187		(8	)	4.08	%		1,091		(4	)
	Policy loans	5.36	%	256		—		5.44	%		258		—
	Short-term investments and cash equivalents	2.58	%	373		1		2.20	%		265		—
	Gross investment income before investment expenses	4.49	%	9,432		—		4.45	%		8,666		(385	)
	Investment expenses	-0.15	%	(400	)	—		-0.17	%		(397	)	—
	Subtotal	4.34	%	9,032		—		4.28	%		8,269		(385	)
	Other investments (3)			378		(2,001	)				221		1,256
	Total			9,410		(2,001	)				8,490		871
__________
(1) Excludes Closed Block division.
(2) Excludes commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders, assets of our investment management operations, including assets that are managed for third parties and assets classified as "Separate account assets" on our balance sheet.
(3) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains / (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives.
(4) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments.

Page 37

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
	(in millions)
		Three Months Ended December 31, 2019								Three Months Ended December 31, 2018
			Reconciling Items								Reconciling Items
		Adjusted Operating Income basis (1)	Total realized investment gains (losses), net, and related charges and adjustments (2)	Market experience updates	Closed Block Division	Other Divested and Run-off Businesses	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	Other adjustments (3)	U.S. GAAP (4)	Adjusted Operating Income basis (1)	Total realized investment gains (losses), net, and related charges and adjustments (2)	Closed Block Division	Other Divested and Run-off Businesses	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	U.S. GAAP (4)
	Revenues:
	Premiums	10,531	—	—	589	110	—	—	11,230	11,487	—	621	112	—	12,220
	Policy charges and fee income	1,584	(66)	(4)	—	1	—	—	1,515	1,570	(51)	—	1	—	1,520
	Net investment income	3,826	(9)	—	596	128	—	—	4,541	3,382	(11)	544	121	—	4,036
	Realized investment gains (losses), net	52	(229)	(1)	66	(98)	—	—	(210)	249	379	26	62	—	716
	Asset management fees, commissions and other income	1,457	420	—	234	76	(35)	(5)	2,147	1,092	(777)	(313)	(42)	(20)	(60)
	Total revenues	17,450	116	(5)	1,485	217	(35)	(5)	19,223	17,780	(460)	878	254	(20)	18,432
	Benefits and Expenses:
	Insurance and annuity benefits	11,072	(136)	(62)	1,329	173	—	—	12,376	11,934	42	786	166	—	12,928
	Interest credited to policyholders' account balances	984	132	(3)	33	5	—	—	1,151	937	(253)	33	5	—	722
	Interest expense	385	—	—	1	1	—	—	387	372	—	1	1	—	374
	Deferral of acquisition costs	(740)	—	—	—	(2)	—	—	(742)	(754)	—	—	(2)	—	(756)
	Amortization of acquisition costs	529	(1)	(11)	6	1	—	—	524	533	(34)	9	1	—	509
	General and administrative expenses	4,032	(12)	11	85	28	(3)	42	4,183	3,440	49	89	32	(8)	3,602
	Total benefits and expenses	16,262	(17)	(65)	1,454	206	(3)	42	17,879	16,462	(196)	918	203	(8)	17,379
		Twelve Months Ended December 31, 2019								Twelve Months Ended December 31, 2018
			Reconciling Items								Reconciling Items
		Adjusted Operating Income basis (1)	Total realized investment gains (losses), net, and related charges and adjustments (2)	Market experience updates	Closed Block Division	Other Divested and Run-off Businesses	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	Other adjustments (3)	U.S. GAAP (4)	Adjusted Operating Income basis (1)	Total realized investment gains (losses), net, and related charges and adjustments (2)	Closed Block Division	Other Divested and Run-off Businesses	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	U.S. GAAP (4)
	Revenues:
	Premiums	31,532	—	—	2,207	463	—	—	34,202	32,978	—	2,301	500	—	35,779
	Policy charges and fee income	6,207	(254)	22	—	3	—	—	5,978	6,272	(274)	—	4	—	6,002
	Net investment income	14,802	(36)	—	2,323	496	—	—	17,585	13,490	(41)	2,288	439	—	16,176
	Realized investment gains (losses), net	301	(1,374)	(99)	521	192	—	—	(459)	526	1,366	130	(45)	—	1,977
	Asset management fees, commissions and other income	5,290	1,595	—	591	176	(146)	(5)	7,501	4,864	(1,569)	(41)	(93)	(103)	3,058
	Total revenues	58,132	(69)	(77)	5,642	1,330	(146)	(5)	64,807	58,130	(518)	4,678	805	(103)	62,992
	Benefits and Expenses:
	Insurance and annuity benefits	33,188	(136)	200	5,094	748	—	—	39,094	34,411	(75)	4,208	2,196	—	40,740
	Interest credited to policyholders' account balances	3,871	855	4	130	20	—	—	4,880	3,720	(670)	132	14	—	3,196
	Interest expense	1,540	—	—	7	4	—	—	1,551	1,414	—	2	4	—	1,420
	Deferral of acquisition costs	(2,957)	—	—	—	(7)	—	—	(2,964)	(2,864)	—	—	(7)	—	(2,871)
	Amortization of acquisition costs	2,334	(181)	144	29	6	—	—	2,332	2,114	118	35	6	—	2,273
	General and administrative expenses	14,058	282	37	346	107	(43)	42	14,829	12,967	(41)	363	127	(16)	13,400
	Total benefits and expenses	52,034	820	385	5,606	878	(43)	42	59,722	51,762	(668)	4,740	2,340	(16)	58,158
__________
(1) See page 40 for a definition of adjusted operating income.
(2) Prior period numbers have been reclassified to conform to current period presentation.
(3) 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.
(4) U.S. generally accepted accounting principles.

Page 38

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
	COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES
	(in millions)
		Three Months Ended March 31, 2019													Three Months Ended June 30, 2019
				Reconciling Items													Reconciling Items
		Adjusted Operating Income basis (1)		Total realized investment gains (losses), net, and related charges and adjustments (2)		Market experience updates		Closed Block Division	Other Divested and Run-off Businesses		Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		U.S. GAAP (3)		Adjusted Operating Income basis (1)		Total realized investment gains (losses), net, and related charges and adjustments (2)		Market experience updates		Closed Block Division	Other Divested and Run-off Businesses		Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		U.S. GAAP (3)
	Revenues:
	Premiums	7,256		—		—		526	118		—		7,900		7,439		—		—		582	114		—		8,135
	Policy charges and fee income	1,542		(72	)	—		—	1		—		1,471		1,518		(54	)	8		—	1		—		1,473
	Net investment income	3,546		(10	)	—		563	117		—		4,216		3,698		(9	)	—		574	127		—		4,390
	Realized investment gains (losses), net	20		(910	)	—		56	68		—		(766	)	101		(564	)	(15	)	49	93		—		(336	)
	Asset management fees, commissions and other income	1,284		711		—		229	84		(38	)	2,270		1,350		312		—		96	1		(33	)	1,726
	Total revenues	13,648		(281	)	—		1,374	388		(38	)	15,091		14,106		(315	)	(7	)	1,301	336		(33	)	15,388
	Benefits and Expenses:
	Insurance and annuity benefits	7,520		53		—		1,262	180		—		9,015		7,823		(7	)	112		1,194	192		—		9,314
	Interest credited to policyholders' account balances	948		360		—		32	5		—		1,345		955		286		—		32	5		—		1,278
	Interest expense	386		—		—		1	1		—		388		392		—		—		2	1		—		395
	Deferral of acquisition costs	(759	)	—		—		—	(2	)	—		(761	)	(712	)	—		—		—	(1	)	—		(713	)
	Amortization of acquisition costs	540		(116	)	—		9	2		—		435		736		(45	)	83		7	1		—		782
	General and administrative expenses	3,408		9		—		89	28		(5	)	3,529		3,259		107		6		87	26		(29	)	3,456
	Total benefits and expenses	12,043		306		—		1,393	214		(5	)	13,951		12,453		341		201		1,322	224		(29	)	14,512
		Three Months Ended September 30, 2019
				Reconciling Items
		Adjusted Operating Income basis (1)		Total realized investment gains (losses), net, and related charges and adjustments (2)		Market experience updates		Closed Block Division	Other Divested and Run-off Businesses		Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		U.S. GAAP (3)
	Revenues:
	Premiums	6,306		—		—		510	121		—		6,937
	Policy charges and fee income	1,563		(62	)	18		—	—		—		1,519
	Net investment income	3,732		(8	)	—		590	124		—		4,438
	Realized investment gains (losses), net	128		329		(83	)	350	129		—		853
	Asset management fees, commissions and other income	1,199		152		—		32	15		(40	)	1,358
	Total revenues	12,928		411		(65	)	1,482	389		(40	)	15,105
	Benefits and Expenses:
	Insurance and annuity benefits	6,773		(46	)	150		1,309	203		—		8,389
	Interest credited to policyholders' account balances	984		77		7		33	5		—		1,106
	Interest expense	377		—		—		3	1		—		381
	Deferral of acquisition costs	(746	)	—		—		—	(2	)	—		(748	)
	Amortization of acquisition costs	529		(19	)	72		7	2		—		591
	General and administrative expenses	3,359		178		20		85	25		(6	)	3,661
	Total benefits and expenses	11,276		190		249		1,437	234		(6	)	13,380
__________
(1) See page 40 for a definition of adjusted operating income.
(2) Prior period numbers have been reclassified to conform to current period presentation.
(3) U.S. generally accepted accounting principles.

Page 39

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
KEY DEFINITIONS AND FORMULAS
1. Adjusted operating income before income taxes:
Adjusted operating income is a non-GAAP measure of performance that excludes “Realized investment gains (losses), net,” as adjusted, and related charges and adjustments. A significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as our tax and capital profile.
Realized investment gains (losses) within certain of our businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset-liability management program related to the risk of those products. However, the effectiveness of our hedging program will ultimately be reflected in adjusted operating income over time. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are classified as other trading account assets. Additionally, market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, are excluded from adjusted operating income beginning with the second quarter of 2019, which we believe enhances the understanding of underlying performance trends.
Adjusted operating income also excludes investment gains and losses on assets supporting experience-rated contractholder liabilities and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to ultimately accrue to contractholders. In addition, adjusted operating income excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations. Earnings attributable to noncontrolling interests is presented as a separate component of net income under GAAP and excluded from adjusted operating income.
Adjusted operating income does not equate to "Net income" as determined in accordance with U.S. GAAP but is the measure of profit or loss we use to evaluate segment performance. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described above.
2. After-tax adjusted operating income:
Adjusted operating income before taxes, as defined above, less the income tax effect applicable to adjusted operating income before taxes. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments.
3. Annualized New Business Premiums:
Premiums from new sales that are expected to be collected over a one year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers' Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Excess (unscheduled) and single premium business for the company's domestic individual life and international operations are included in annualized new business premiums based on a 10% credit. Amounts ascribed to Gibraltar Life Consultants include production by captive agents associated with consolidated joint venture of Gibraltar Life and Other Operations.
4. Assets Under Management:
Fair market value or account value of assets which Prudential manages directly in proprietary products, such as mutual funds and variable annuities, in separate accounts, wrap-fee products and the general account, and assets invested in investment options included in the Company's products that are managed by third party sub-managers (i.e., the non-proprietary investment options in the Company's products).
5. Prudential Financial, Inc. Equity:
Amount of capital assigned to each of the Company's segments for purposes of measuring segment adjusted operating income before income taxes, established at a level which management considers necessary to support the segment's risks. Equity represents all of Prudential Financial, Inc. equity that is not attributable to noncontrolling interests.
6. Book value per share of Common Stock:
Equity attributed to Prudential Financial, Inc. divided by the number of Common shares outstanding at end of period, on a diluted basis. Book value per share excluding Accumulated Other Comprehensive Income (Loss) (“AOCI”) and adjusted to remove amount included for remeasurement of foreign currency exchange rate is a non-GAAP measure. These items are excluded in order to highlight the book value attributable to our core business operations. This non-GAAP measure augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations separate from the portion that is affected by capital and currency market conditions and by isolating the accounting impact associated with insurance liabilities that are generally not marked to market and the supporting investments that are marked to market through AOCI under GAAP. However, book value per share excluding both AOCI and adjusted to remove amount included for foreign currency exchange rate remeasurement is not a substitute for book value per share including AOCI determined in accordance with GAAP, and the adjustments made to derive the measure are important to an understanding of our overall financial position.

Page 40

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
KEY DEFINITIONS AND FORMULAS
7. Borrowings - Capital Debt:
Borrowings that are or will be used for capital requirements at Prudential Financial, Inc as well as borrowings invested in equity or debt securities of direct or indirect subsidiaries of Prudential Financial, Inc., and subsidiary borrowings, utilized for capital requirements.
8. Borrowings - Operating Debt:
Debt issued to finance the operating needs of the businesses.
9. Client Assets:
Fair market value of assets in client accounts of International brokerage operations, Prudential Bank and mortgage loan servicing business, that are not included in Assets Under Management. Prudential does not receive a management or administrative fee on these assets, but may receive a fee for executing trades, custody or recordkeeping services.
10. Divested and Run-off Businesses:
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.
11. Earned Premiums:
The portion of a premium, net of any amount ceded, that represents coverage already provided or that belongs to the insurer based on the part of the policy period that has passed.
12. Full Service Retirement:
The Full Service Retirement line of business provides retirement plan products and services to public, private and not-for-profit organizations. This business provides recordkeeping, plan administration, actuarial advisory services, participant education and communication services, trustee services and institutional and retail investment funds. This business mainly services defined contribution and defined benefit plans; non-qualified plans are also serviced. For clients with both defined contribution and defined benefit plans, integrated recordkeeping services are available.
13. Full Service Stable Value:
Our Full Service Stable Value products represent fixed rate options on investment funds offered to Retirement customers. These products contain an obligation to pay interest at a specified rate for a specific period of time. Upon termination these products repay account balances at market value immediately or may be liquidated at book value over time. Substantially all of these products are either fully or partially participating, with annual or semi-annual resets giving effect to previous investment experience. These products are issued through the general account, separate accounts or client-owned trusts. Profits from partially participating general account products result from the spread between the rate of return on investment assets and the interest rates credited to the customer, less expenses. For fully participating products, generally subject to a minimum interest rate guarantee, we earn fee income.
14. General Account:
Invested assets and policyholder liabilities and reserves for which the Company bears the investment risk. Excludes assets recognized for statutory purposes that are specifically allocated to a separate account. General account assets also include assets of the parent company, Prudential Financial, Inc.
15. Gibraltar Life:
Includes results from consolidated joint venture operation of Gibraltar Life and Other Operations.
16. Gibraltar Life Consultants:
Captive insurance agents for Gibraltar Life. Count and policy persistency do not include captive agents associated with consolidated joint venture of Gibraltar Life and Other Operations.
17. Group Insurance Benefits Ratios:
Ratio of policyholder benefits to earned premiums, policy charges and fee income.
18. Group Life Insurance and Group Disability Insurance Administrative Operating Expense Ratios:
Ratio of administrative operating expenses (excluding commissions) to gross premiums, policy charges and fee income.
19. Individual Annuity Account Values in General Account and Separate Account:
Amounts represent the breakdown of invested customer funds in annuities either written or reinsured by the Company.
20. Individual Annuities - Net Amounts at Risk:
Living Benefit Features - For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance.
Death Benefit Features - Net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.

Page 41

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
KEY DEFINITIONS AND FORMULAS
21. Insurance and Annuity Benefits:
Total death benefits, annuity benefits, disability benefits, other policy benefits, and losses paid or incurred, under insurance and annuity contracts, plus the change in reserves for future policy benefits, losses and loss adjustment expenses.
22. International Life Planners:
Captive insurance Advisors in our Life Planner Operations.
23. Non-recourse and Limited-recourse Debt:
Limited and non-recourse borrowing is where the holder is entitled to collect only against the assets pledged to the debt as collateral or has only very limited rights to collect against other assets.
24. Other Related Revenues:
Other related revenues include incentive fees, transaction fees, strategic investing results, and commercial mortgage revenues.
25. Policy Persistency - Group Insurance:
Percentage of the premiums in force at the end of the prior year that are still in force at the end of the period (excluding Servicemembers' Group Life Insurance and Prudential Employee Benefit Plan).
26. Policy Persistency - International Businesses:
13 month persistency represents the percentage of policies issued that are still in force at the beginning of their second policy year. 25 month persistency represents the percentage of policies issued that are still in force at the beginning of their third policy year.
27. Prudential Advisor productivity:
Commissions on new sales of all products by Prudential Advisors under contract for the entire period, divided by the number of those Prudential Advisors. Excludes commissions on new sales by Prudential Advisors hired or departed during the period. For interim reporting periods, the productivity measures are annualized.
28. Prudential Advisors:
Captive financial professionals and field managers in our insurance operations in the United States.
29. Separate Accounts:
Assets of our insurance companies allocated under certain policies and contracts that are segregated from the general account and other separate accounts. The policyholder or contractholder predominantly bears the risk of investments held in a separate account.
30. Variable Investment Income:
Consists of income from equity and alternative investments along with prepayment fee income.
31. Wrap-Fee Products:
Investment products generating asset-based fees in which the funds of the customer are generally invested in other investment products such as mutual funds.

Page 42

Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2019
RATINGS AND INVESTOR INFORMATION
FINANCIAL STRENGTH RATINGS
as of February 4, 2020
		Standard &		Fitch
	A.M. Best*	Poor's	Moody's*	Ratings*
The Prudential Insurance Company of America	A+	AA-	Aa3	AA-
PRUCO Life Insurance Company	A+	AA-	Aa3	AA-
PRUCO Life Insurance Company of New Jersey	A+	AA-	NR	AA-
Prudential Annuities Life Assurance Corporation	A+	AA-	NR	AA-
Prudential Retirement Insurance and Annuity Company	A+	AA-	Aa3	AA-
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)	NR	A+	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	A+	NR	NR
The Prudential Gibraltar Financial Life Insurance Co. Ltd.	NR	A+	NR	NR
Prudential Life Insurance Co. of Taiwan, Inc. (1)	NR	twAAA	NR	NR
CREDIT RATINGS:
as of February 4, 2020
Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-1	P-2	F1
Long-Term Senior Debt	a-	A	A3	A-
Junior Subordinated Long-Term Debt	bbb	BBB+	Baa1	BBB
The Prudential Insurance Company of America:
Capital and surplus notes	a	A	A2	A
Prudential Funding, LLC:
Short-Term Debt	AMB-1	A-1+	P-1	F1+
Long-Term Senior Debt	a+	AA-	A1	A+
PRICOA Global Funding I:
Long-Term Senior Debt	aa-	AA-	Aa3	AA-
* NR indicates not rated.
(1) Prudential Life Insurance Co. of Taiwan was assigned a financial strength rating by Taiwan Ratings Corporation, an S&P Global Company.
INVESTOR INFORMATION:
Corporate Offices:	Investor Information Hotline:
Prudential Financial, Inc.	Dial 877-998-ROCK for additional printed information or inquiries.
751 Broad Street
Newark, New Jersey 07102	Web Site:
	www.prudential.com
Common Stock:
Common Stock of Prudential Financial, Inc. is traded on the New York Stock Exchange under the symbol PRU.

Page 43

XML

Document and Entity Information Document	Feb. 04, 2020
Entity Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 04, 2020
Entity Registrant Name	PRUDENTIAL FINANCIAL, INC.
Entity Central Index Key	0001137774
Entity Incorporation, State or Country Code	NJ
Entity File Number	001-16707
Entity Tax Identification Number	22-3703799
Entity Address, Address Line One	751 Broad Street
Entity Address, City or Town	Newark
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07102
City Area Code	973
Local Phone Number	802-6000
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Pre-commencement Tender Offer	false
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Entity Information [Line Items]
Title of 12(b) Security	Common Stock, Par Value $.01
Trading Symbol	PRU
Security Exchange Name	NYSE
5.75% Junior Subordinated Note
Entity Information [Line Items]
Title of 12(b) Security	5.75% Junior Subordinated Notes
Trading Symbol	PJH
Security Exchange Name	NYSE
5.70% Junior Subordinated Notes
Entity Information [Line Items]
Title of 12(b) Security	5.70% Junior Subordinated Notes
Trading Symbol	PRH
Security Exchange Name	NYSE
5.625% Junior Subordinated Notes
Entity Information [Line Items]
Title of 12(b) Security	5.625% Junior Subordinated Notes
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