Prudential Financial Inc.

07/15/2026 | Press release | Distributed by Public on 07/15/2026 14:23

Regulation FD Disclosure, Business/Financial Results (Form 8-K)

Item 2.02 Results of Operations and Financial Condition.
The information contained in Item 7.01 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 2.02.
Item 7.01 Regulation FD Disclosure.
Prudential Financial, Inc. (the "Company") is furnishing this Current Report to disclose (1) certain preliminary financial information regarding the quarter ended June 30, 2026, prior to the availability of the Company's quarterly earnings release and quarterly financial supplement for the period, scheduled for release on August 4, 2026; and (2) the expected quarterly impact to adjusted operating income ("AOI")(1) from the update of actuarial assumptions and other refinements.
Assets Under Management of the PGIM Segment
As of June 30, 2026, assets under management of the PGIM segment were $1.49 trillion.
Other Related Revenues, Net of Related Expenses, of the PGIM Segment
For the quarter ended June 30, 2026, PGIM's other related revenues, net of related expenses, were approximately $60 million on an AOI basis. "Other related revenues" include incentive fees, transaction fees, and revenues from seed and co-investments and mortgage originations.
Alternative Investment Income of the General Account
For the quarter ended June 30, 2026, the alternative investment income of the Company's General Account, excluding the Closed Block Division and Funds Withheld portfolios, (the "GA Portfolio") is estimated to be approximately $20 - $40 million below the Company's near-term expectations. "Alternative investment income" includes the AOI of the GA Portfolio's interests in private equity, hedge fund and real estate-related investments, as well as real estate investments held through direct ownership, and excludes the results from those interests held by Divested Businesses and unaffiliated investors that have been consolidated on the Company's balance sheet.
Annual Review and Update of Actuarial Assumptions and Other Refinements
During the second quarter of each year, the Company performs an annual comprehensive review of assumptions. Following the conclusion of this process for 2026, the Company expects to update its actuarial assumptions and make other refinements.
Below is a summary of the estimated material impacts to AOI by business segment that will be recorded in the quarter ended June 30, 2026. We do not expect any material ongoing impacts to AOI as a result of these updates.
Segment Expected One-Time
AOI Impact
(in millions)
Retirement $ (90)
International Businesses $ 80
Group Insurance $ 30
Individual Life $ 30
U.S. Legacy Products $ 15
(1) The Company analyzes the operating performance of each segment using pre-tax "adjusted operating income." Adjusted operating income does not equate to "Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities" or "Net income (loss)" as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the Company's chief operating decision maker to evaluate segment performance and allocate resources. Adjusted operating income is calculated by adjusting each segment's "Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities" for the following items: realized investment gains (losses), net, and related charges and adjustments; change in value of market risk benefits, net of related hedging gains (losses); market experience updates; divested and run-off businesses; equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests and redeemable noncontrolling interests; and other adjustments. For more information about adjusted operating income, see the "Segment Information" Note to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2025.
The preliminary financial information presented above for the quarter ended June 30, 2026, is estimated and unaudited and has been prepared in good faith on a basis consistent with prior periods based on information available to management as of the
date hereof and constitute forward-looking statements; however, we have not completed our financial closing procedures for the quarter ended June 30, 2026, and our actual results could be materially different from these preliminary financial results.
Certain of the statements included in this report, including those regarding our estimated financial results for the second quarter of 2026 discussed herein and the expected ongoing quarterly adjusted operating income impact of the update of actuarial assumptions and other refinements, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "expects", "believes", "anticipates", "includes", "plans", "assumes", "estimates", "projects", "intends", "should", "will", "shall", or variations of such words are generally part of forward-looking statements. 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 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. Factors that could cause estimated financial results for the second quarter of 2026 presented herein to differ from our actual results include the discovery of new or additional information that impacts accounting estimates, management's judgment or valuation methodologies underlying these estimated results, and the completion of our financial and other closing procedures and the preparation of our unaudited condensed consolidated financial statements. Prudential Financial, Inc. does not undertake to update any particular forward-looking statement included in this presentation.
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