$PRS

PRUDENTIAL FINANCIAL INC

CIK:0001137774|SEC Filings

Unaudited Interim Consolidated Statements of Operations - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 30, 2025

REVENUES

Premiums (includes $290 and $97, $295 and $98 of gains (losses) from changes in estimates on deferred profit liability amortization for the three months ended June 30, 2026 and 2025 and the six months ended June 30, 2026 and 2025, respectively)

^[1]

$ 6,880

$ 6,982

$ 15,242

$ 13,982

Policy charges and fee income

1,247

1,249

2,379

2,406

Net Investment Income

5,783

5,226

11,448

10,356

Asset management and service fees

^[1]

1,019

982

2,015

1,966

Other income (loss)

^[1]

2,369

1,412

2,399

1,692

Realized investment gains (losses), net

(1,566)

^[1]

(1,699)

^[1]

(1,930)

^[2]

(2,429)

^[2]

Change in value of market risk benefits, net of related hedging gains (losses)

(71)

(426)

(366)

(777)

Total revenues

15,661

13,726

31,187

27,196

BENEFITS AND EXPENSES

Policyholders’ benefits

^[1]

7,751

8,181

17,284

16,321

Change in estimates of liability for future policy benefits

^[1]

513

(175)

552

(225)

Interest credited to policyholders’ account balances

1,974

1,138

3,083

1,963

Dividends to policyholders

478

710

404

Dividends to policyholders

259

Amortization of deferred policy acquisition costs

^[1]

430

407

841

814

General and administrative expenses

^[1]

3,337

3,176

6,806

6,259

Total benefits and expenses

14,483

12,986

29,276

25,536

INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT VENTURES AND OTHER OPERATING ENTITIES

1,178

740

1,911

1,660

Total income tax expense (benefit)

218

195

347

402

INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF JOINT VENTURES AND OTHER OPERATING ENTITIES

960

545

1,564

1,258

Equity in earnings of joint ventures and other operating entities, net of taxes

NET INCOME (LOSS)

1,036

566

1,642

1,308

Less: Income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests

NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC.

$ 985

$ 533

$ 1,582

$ 1,240

Basic earnings per share-Common Stock:

Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share)

$ 2.81

$ 1.49

$ 4.50

$ 3.46

Diluted earnings per share-Common Stock:

Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share)

$ 2.80

$ 1.48

$ 4.48

$ 3.44

[1]	See Note 20 for additional information regarding related party transactions.
[2]	See Note 20 for additional information regarding related party transactions.

Unaudited Interim Consolidated Statements of Cash Flows - USD ($)
$ in Millions

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

NET INCOME (LOSS)

$ 1,642

$ 1,308

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Realized investment (gains) losses, net

^[1]

1,930

2,429

Change in value of market risk benefits, net of related hedging (gains) losses

366

777

Policy charges and fee income

(1,185)

(1,009)

Interest credited to policyholders’ account balances

3,083

1,963

Depreciation and amortization

321

(Gains) losses on assets supporting experience-rated contractholder liabilities, net

(531)

Change in:

Deferred Policy Acquisition Costs

^[1]

(417)

(657)

Future policy benefits and other insurance liabilities

(301)

Reinsurance related-balances

^[1]

(1,167)

(1,253)

Income taxes

314

(635)

Derivatives, net

2,544

(1,590)

Other, net

^[1]

(2,957)

(3,125)

Cash flows from (used in) operating activities

3,354

(1,344)

Proceeds from the sale/maturity/prepayment of:

Fixed maturities, available-for-sale

31,081

20,299

Fixed maturities, trading

2,548

1,445

Assets supporting experience-rated contractholder liabilities

671

733

Equity securities

3,671

4,621

Commercial mortgage and other loans

3,325

3,662

Policy loans

901

956

Other invested assets

1,460

1,519

Short-term investments

20,782

13,632

Payments for the purchase/origination of:

Fixed maturities, available-for-sale

(40,567)

(34,918)

Fixed maturities, trading

(4,615)

(2,693)

Assets supporting experience-rated contractholder liabilities

(898)

(1,024)

Equity securities

(6,507)

(2,470)

Commercial mortgage and other loans

(4,974)

(3,809)

Policy loans

(773)

(789)

Other invested assets

(1,652)

(1,586)

Short-term investments

(21,360)

(10,910)

Derivatives, net

(450)

113

Other, net(1)

^[1]

(90)

(74)

Cash flows from (used in) investing activities

(17,447)

(11,293)

CASH FLOWS FROM FINANCING ACTIVITIES

Policyholders’ account deposits

19,213

19,940

Policyholders’ account withdrawals

(11,105)

(9,446)

Net change in securities sold under agreements to repurchase and cash collateral for loaned securities

1,007

955

Cash dividends paid on Common Stock

(992)

(972)

Net change in financing arrangements (maturities 90 days or less)

156

Common Stock acquired

(496)

Common Stock reissued for exercise of stock options

Proceeds from the issuance of debt (maturities longer than 90 days)

927

910

Repayments of debt (maturities longer than 90 days)

(612)

(1,194)

Proceeds from notes issued by consolidated VIEs

2,093

192

Repayments of notes issued by consolidated VIEs

(733)

Other, net

^[1]

259

546

Cash flows from (used in) financing activities

9,637

10,648

Effect of foreign exchange rate changes on cash balances

(76)

170

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS

(4,532)

(1,819)

CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF YEAR

18,520

CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD

16,701

NON-CASH TRANSACTIONS DURING THE PERIOD

Treasury Stock shares issued for stock-based compensation programs

195

176

RECONCILIATION TO THE UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Cash and cash equivalents

15,162

^[2]

16,638

Restricted cash and restricted cash equivalents (included in “Other assets”)

Total cash, cash equivalents, restricted cash and restricted cash equivalents

15,217

16,701

Empower

NON-CASH TRANSACTIONS DURING THE PERIOD

Novation of contracts under reinsurance agreement

1,659

^[3]

Prismic Re International

CASH FLOWS FROM FINANCING ACTIVITIES

CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF YEAR

19,749

CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD

15,217

NON-CASH TRANSACTIONS DURING THE PERIOD

Net assets transferred, excluding Cash and cash equivalents

6,069

^[4]

Deposit assets established for Policyholders' account balances ceded

(6,366)

^[4]

Unwind of Deferred policy acquisition costs ceded

219

^[4]

Net cash received

$ 0

$ (78)

^[4]

[1]	See Note 20 for additional information regarding related party transactions.
[2]	See Note 4 for details of balances associated with variable interest entities.
[3]	“Cash flows from (used in) operating activities” exclude certain non-cash activities related to the novation of certain investment contracts from the Company to Empower Annuity Insurance Company of America and Empower Life & Annuity Insurance Company of New York (collectively, “Empower”). See note 12 for additional information regarding the reinsurance agreement with Empower.
[4]	See Note 12 for additional information regarding the reinsurance agreement with Prismic Life Reinsurance International, Ltd. (“Prismic Re International”).

Unaudited Interim Consolidated Statements of Financial Position - USD ($)
$ in Millions

Jun. 30, 2026

Dec. 31, 2025

ASSETS

Fixed maturities, available-for-sale, at fair value (allowance for credit losses: 2026-$196; 2025-$183) (amortized cost: 2026-$364,941; 2025-$357,996)

^[1]

$ 333,526

$ 331,455

Fixed maturities, trading, at fair value (amortized cost: 2026-$17,658; 2025-$15,536)

^[1]

16,758

14,869

Assets supporting experience-rated contractholder liabilities, at fair value

5,405

4,842

Equity securities, at fair value (cost: 2026-$11,503; 2025-$8,303)

^[1]

14,389

10,972

Commercial mortgage and other loans (net of $505 and $469 allowance for credit losses; includes $959 and $1,056 of loans measured at fair value under the fair value option at June 30, 2026 and December 31, 2025, respectively)

^[1]

65,985

64,715

Policy loans

9,984

9,958

Other invested assets (net of $2 and $2 allowance for credit losses; includes $9,114 and $8,286 of assets measured at fair value at June 30, 2026 and December 31, 2025, respectively)

^[1]

28,574

27,294

Short-term investments (net of allowance for credit losses: 2026-$10; 2025-$0)

7,216

6,414

Total investments

481,837

470,519

Cash and cash equivalents

^[1]

15,162

19,712

Accrued investment income

^[1]

3,758

3,636

Deferred policy acquisition cost

21,880

21,530

Value of business acquired

366

397

Market risk benefit assets

2,430

2,330

Reinsurance recoverables and deposit receivables (net of $14 and $14 allowance for credit losses; includes $709 and $573 of embedded derivatives at fair value at June 30, 2026 and December 31, 2025, respectively)

^[2]

44,218

44,077

Income Tax Assets

279

Other assets (net of $4 and $1 allowance for credit losses; includes $0 and $0 of assets at fair value at June 30, 2026 and December 31, 2025, respectively)

^[1],[2]

14,916

15,009

Separate account assets

198,950

196,251

TOTAL ASSETS

783,554

773,740

LIABILITIES

Future policy benefits

260,944

266,914

Policyholders’ account balances

202,223

191,307

Market risk benefit liabilities

4,731

4,623

Policyholders’ dividends

1,002

1,272

Securities sold under agreements to repurchase

10,069

9,598

Cash collateral for loaned securities

9,236

8,700

Reinsurance and funds withheld payables (includes $166 and $174 of embedded derivatives at fair value at June 30, 2026 and December 31, 2025, respectively)

^[2]

19,864

18,844

Short-term debt

955

1,443

Long-term debt

19,663

18,856

Other liabilities (includes $16 and $16 allowance for credit losses and $5,759 and $6,215 of derivatives at fair value at June 30, 2026 and December 31, 2025, respectively)

^[1]

17,313

17,692

Notes issued by consolidated variable interest entities (includes $1,807 and $767 measured at fair value under the fair value option at June 30, 2026 and December 31, 2025, respectively)

^[1]

4,017

2,659

Separate account liabilities

198,950

196,251

Total liabilities

748,967

738,159

COMMITMENTS AND CONTINGENT LIABILITIES (See Note 21)

Redeemable Noncontrolling Interest, Equity, Carrying Amount

2,652

2,794

Total mezzanine equity

2,652

2,794

EQUITY

Preferred Stock ($0.01 par value; $10,000,000 shares authorized; none issued)

Common Stock ($0.01 par value; 1,500,000,000 shares authorized; 666,305,189 shares issued as of both June 30, 2026 and December 31, 2025)

Additional paid-in capital

25,892

26,013

Common Stock held in treasury, at cost (321,092,506 and 318,361,498 shares at June 30, 2026 and December 31, 2025, respectively)

(25,685)

(25,335)

Accumulated other comprehensive income (loss)

^[2]

(4,060)

(3,077)

Retained Earnings

35,424

34,831

Total Prudential Financial, Inc. equity

31,577

32,438

Noncontrolling interests

358

349

Total equity

31,935

32,787

TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY

$ 783,554

$ 773,740

[1]	See Note 4 for details of balances associated with variable interest entities.
[2]	See Note 20 for additional information regarding related party transactions.