Prudential Financial Inc.

Refreshed strategy + long-term financial targets (what investors should expect) - Prudential’s “simpler company, fewer priorities, execution excellence” strategy is built around 4 priorities to drive top-quartile earnings growth (excluding legacy variable annuities), higher cash flow conversion, and strong returns on capital over time. - Geographic narrowing: reduce footprint by ~half, focusing liability generation on U.S., Japan, and select Europe; exit emerging markets while optimizing value. - Category leadership: scale Global Retirement, PGIM (asset management), and select Protection; grow via organic + inorganic actions. - Capital + efficiency: increase earnings mix from more capital-light businesses (target PGIM to ~25% of PFI’s AOI, up from ~12% today); deliver about $750m pretax run-rate cost benefits by year-end 2028 (vs $150m in 2027 target); improve enterprise efficiency via tech, simplification, and workforce model.

Q2 performance highlights (near-term results vs expectations) - After-tax adjusted operating income: $1.4B / $4.08 per share, +14% YoY. - Year-to-date ROAE: 15.5%, +110 bps YoY. - Drivers cited: stronger earnings quality and progress on operating model improvements; benefits from spread income, assumption updates (one-time), and higher asset management fees.

PGIM update (major “good” segment, plus margin outlook) - Strong investment performance + integration: PGIM pretax adjusted operating income $294m, +28% YoY. - Margin expansion: 28.2% adjusted operating margin, +470 bps YoY (driven by fee growth and markets); management expects >200 bps margin expansion in 2026 toward 25%–30% target. - Deployment + flows: private capital deployment ~$21B in Q2 (~+60% sequential), led by asset-backed finance (~$7B); active ETF retail strong (AUM ~+$35B; +21% sequential) and top-10 flows; total third-party net flows $4.6B offset by ~$5B equity outflows (industry rotation to passive). - Corporate action: PGIM acquisition of remaining stake in Deerpath Capital strengthens direct lending coverage.