VALUATION HIGHLIGHTS

1. International Insurance constitutes 43% of the Trefis price estimate for Prudential Financial's stock.
2. U.S. Individual Solutions (U.S. Life Insurance, U.S. Individual Annuities) constitute 22% of the Trefis price estimate for Prudential Financial's stock.
3. U.S. Workspace Solutions (U.S. Retirement Solutions, U.S. Group Insurance) constitute 22% of the Trefis price estimate for Prudential Financial's stock.

WHAT HAS CHANGED?

Latest Earnings: Q1 FY'26

Prudential Financial reported Q1 FY'26 total revenues of $15.2 billion, up 14% year-over-year compared to $13.4 billion in Q1 FY'25. Adjusted operating income reached $1.28 billion, or $3.61 per share, representing a 10% increase from $3.29 per share in the prior-year period. Earnings expansion was primarily driven by higher net investment spread results, strong underwriting performance in Individual Life, and increased asset management fees at PGIM, partially offset by expenses related to Japan sales suspensions.

Note: Prudential Financial's FY'25 ended on December 31, 2025. Q1 FY'26 ended on March 31, 2026.

Extension of Japan Sales Halt and International Rebalancing

Prudential extended the voluntary suspension of new business sales at its Japanese life insurance subsidiary, Prudential of Japan, by 180 days to November 2026 following an internal review into conduct issues. Despite the temporary sales halt in Japan, Prudential's international franchise maintained core earning power through record quarterly earnings growth in Brazil and the continued expansion of asset-light strategies through PGIM.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of Prudential Financial's value that present opportunities for upside or downside to the current Trefis price estimate:

PGIM Asset Management & Retirement Strategies

• PGIM Net Asset Inflows and Fee Yields: PGIM manages $1.43 trillion in assets, supported by positive third-party institutional net inflows in public and private fixed income. Continued scaling of third-party institutional assets provides upside to fee revenues, while equity market volatility or institutional outflows pose downside risks.


• Retirement Spread Income and Annuity Demand: The Retirement segment generated $572 million in quarterly earnings, supported by strong demand for registered index-linked annuities and institutional pension risk transfer deals, though potential interest rate cuts could compress spread margins over time.

For additional details, select a division from the interactive Trefis split for Prudential Financial at the top of the page.

BUSINESS SUMMARY

Prudential Financial is a global financial services leader providing life insurance, annuities, retirement solutions, and investment management through PGIM across North America, Asia, and Europe.

SOURCES OF VALUE

Prudential's global investment management arm and international life insurance operations serve as the primary drivers of long-term earnings quality and company valuation.

Global Scale in Asset Management via PGIM

PGIM consistently ranks among the top global asset managers, capitalizing on extensive capabilities in public fixed income, private real estate, and private credit to generate recurring fee revenues.

Premier Footprint in Japanese and Emerging Life Insurance Markets

Prudential maintains a strong international insurance presence, leveraging a proprietary life planner model in Japan and growing protection sales in high-growth markets like Brazil.

KEY TRENDS

Elevated Interest Rates and Investment Yields

A higher-for-longer interest rate environment allows Prudential to reinvest maturing fixed income holdings at elevated yields, widening net investment spreads across its general account liabilities.

Strategic Shift Toward Capital-Light Financial Solutions

Prudential is actively reallocating capital away from traditional variable annuities toward fee-generating asset management, index-linked retirement products, and pension risk transfers to optimize return on equity.