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Press Release: Prudential Financial, Inc. -3-

· 02/04/2021 16:18
Financial Highlights (in millions, unaudited) Three Months Ended Year Ended December 31 December 31 ----------------- ------------------- 2020 2019 2020 2019 -------- ------- -------- --------- Adjusted operating income (loss) before income taxes (1): PGIM $ 404 $ 288 $ 1,262 $ 998 U.S. Businesses: U.S. Workplace Solutions division 451 342 1,420 1,586 U.S. Individual Solutions division 375 508 1,422 1,930 Assurance IQ division (2) (19) (9) (88) (9) ------- ------ ------- ------ Total U.S. Businesses 807 841 2,754 3,507 International Businesses 790 748 2,952 3,112 Corporate and Other (486) (738) (1,824) (1,766) ------- ------ ------- ------ Total adjusted operating income before income taxes $ 1,515 $1,139 $ 5,144 $5,851 ====== ===== ====== ===== Reconciling Items: Realized investment gains (losses), net, and related charges and adjustments $(1,216) $ 73 $(4,315) $ (958) Market experience updates 376 66 (640) (449) Divested and Run-off Businesses: Closed Block division (9) 31 (24) 36 Other Divested and Run-off Businesses 96 114 (629) 755 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests 152 (32) 90 (103) Other adjustments (3) (14) (47) 51 (47) ------- ------ ------- ------ Total reconciling items, before income taxes (615) 205 (5,467) (766) ------- ------ ------- ------ Income (loss) before income taxes and equity in earnings of operating joint ventures $ 900 $1,344 $ (323) $5,085 ====== ===== ====== ===== Income Statement Data: Net income (loss) attributable to Prudential Financial, Inc. $ 819 $1,128 $ (374) $4,186 Income attributable to noncontrolling interests 203 10 228 52 ------- ------ ------- ------ Net income (loss) 1,022 1,138 (146) 4,238 ------- ------ ------- ------ Less: Earnings attributable to noncontrolling interests 203 10 228 52 ------- ------ ------- ------ Income (loss) attributable to Prudential Financial, Inc. 819 1,128 (374) 4,186 ------- ------ ------- ------ Less: Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests (169) 5 (132) 48 ------- ------ ------- ------ Income (loss) (after-tax) before equity in earnings of operating joint ventures 988 1,123 (242) 4,138 ------- ------ ------- ------ Less: Total reconciling items, before income taxes (615) 205 (5,467) (766) Less: Income taxes, not applicable to adjusted operating income (420) (3) (1,114) (248) ------- ------ ------- ------ Total reconciling items, after income taxes (195) 208 (4,353) (518) ------- ------ ------- ------ After-tax adjusted operating income (1) 1,183 915 4,111 4,656 ------- ------ ------- ------ Income taxes, applicable to adjusted operating income 332 224 1,033 1,195 ------- ------ ------- ------ Adjusted operating income before income taxes (1) $ 1,515 $1,139 $ 5,144 $5,851 ====== ===== ====== ===== See footnotes on last page. Financial Highlights (in millions, except per share data, unaudited) Three Months Ended Year Ended December 31 December 31 ------------------ ------------------ 2020 2019 2020 2019 -------- -------- ------- --------- Earnings per share of Common Stock (diluted): Net income (loss) attributable to Prudential Financial, Inc. $ 2.03 $ 2.76 $(1.00) $10.11 ------ ------ ----- ----- Less: Reconciling Items: Realized investment gains (losses), net, and related charges and adjustments (3.05) 0.18 (10.85) (2.33) Market experience updates 0.94 0.16 (1.61) (1.09) Divested and Run-off Businesses: Closed Block division (0.02) 0.08 (0.06) 0.09 Other Divested and Run-off Businesses 0.24 0.28 (1.58) 1.84 Difference in earnings allocated to participating unvested share-based payment awards 0.01 -- 0.07 0.01 Other adjustments (3) (0.04) (0.12) 0.13 (0.11) ------- ------- ------ ------ Total reconciling items, before income taxes (1.92) 0.58 (13.90) (1.59) Less: Income taxes, not applicable to adjusted operating income (1.02) 0.06 (2.69) (0.46) ------- ------- ------ ------ Total reconciling items, after income taxes (0.90) 0.52 (11.21) (1.13) ------- ------- ------ ------ After-tax adjusted operating income $ 2.93 $ 2.24 $10.21 $11.24 ====== ====== ===== ===== Weighted average number of outstanding common shares (basic) 396.2 400.7 395.8 404.8 ======= ======= ====== ====== Weighted average number of outstanding common shares (diluted) 398.3 403.7 397.8 410.9 ======= ======= ====== ====== For earnings per share of Common Stock calculation: Net income (loss) attributable to Prudential Financial, Inc. $ 819 $ 1,128 $ (374) $4,186 Earnings related to interest, net of tax, on exchangeable surplus notes -- -- -- 12 Less: Earnings allocated to participating unvested share-based payment awards 10 12 21 45 ------- ------- ------ ------ Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation $ 809 $ 1,116 $ (395) $4,153 ====== ====== ===== ===== After-tax adjusted operating income (1) $ 1,183 $ 915 $4,111 $4,656 Earnings related to interest, net of tax, on exchangeable surplus notes -- -- -- 12 Less: Earnings allocated to participating unvested share-based payment awards 14 11 50 53 ------- ------- ------ ------ After-tax adjusted operating income for earnings per share of Common Stock calculation (1) $ 1,169 $ 904 $4,061 $4,615 ====== ====== ===== ===== Prudential Financial, Inc. Equity (as of end of period): GAAP book value (total PFI equity) at end of period $67,425 $63,115 Less: Accumulated other comprehensive income (AOCI) 30,738 24,039 ------- ------- GAAP book value excluding AOCI 36,687 39,076 Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments

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, 2020, 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.

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February 04, 2021 16:18 ET (21:18 GMT)