Effective in the first quarter of 2025, the Company's International Businesses are reflected as a single operating and reportable segment, which is how the CODM now assesses its performance and allocates resources. This change did not have any impact on the Company's Unaudited Interim Consolidated Financial Statements.

In April, the Company announced that it will redeem, in full, $1.0 billion in aggregate principal amount of 5.375% junior subordinated notes due in 2045. This action will reduce the company's debt.

In March 2025, the Company entered into an agreement with Prismic Re International and invested an additional $134 million in Prismic to maintain its 20% equity interest in Prismic. PGIM also provides investment management services on a large portion of Prismic Re International's assets.

The Company identified an immaterial error in the application of adjusted operating income, which resulted in an overstatement thereof for indexed variable and fixed annuity products within the Retirement Strategies segment in the first three quarters of 2024. As a result, the Company voluntarily revised its historical adjusted operating income for the relevant periods.

Following an annual review of its internal expense allocations, the Company implemented an allocation update that will impact segment results; however, there will be no impact to the Company's consolidated results. Effective in the first quarter of 2025, operating expenses not identifiable to a specific segment that are incurred in connection with the generation of segment revenues are generally allocated using a proportional allocation measure.

The Company monitors its concentrations of financial instruments and mitigates credit risk by maintaining a diversified investment portfolio which limits exposure to any single issuer. As of the dates indicated, the Company's exposure to concentrations of credit risk of single issuers greater than 10% of the Company's equity included securities of the U.S. government and certain U.S. government agencies and securities guaranteed by the U.S. government.

The imposition of tariffs and retaliatory actions could result in, among other things, rising interest rates, significant equity market declines, stagnant economic growth and high inflation, which could adversely impact the company's liquidity and capital positions, cash flows, results of operations, and financial position.

As a global financial services company, market interest rates are a key driver of the company's liquidity and capital positions, cash flows, results of operations and financial position. Changes in interest rates can affect these in several ways, including favorable or adverse impacts to investment-related activity.

The Company's litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company's results of operations or cash flow in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters.

PGIM's assets under management as of March 31, 2025 increased $44 billion in comparison to the prior year quarter, primarily driven by fixed income and equity market appreciation, net inflows and strong investment performance.

The company believes it is well-positioned to tap into market opportunities to meet the evolving needs of its clients and society at large. Its mix of high-quality protection, retirement and investment management businesses enables it to offer solutions that cover a broad range of financial needs and to engage with its clients through multiple channels.

As part of our continuous improvement process, we are working to become a leaner and more agile company by simplifying our management structure, empowering our employees with faster decision-making processes and investing in technology and data platforms. We expect these actions will create operating efficiencies, and provide reinvestment capacity to build capabilities, realize additional efficiencies, strengthen our competitiveness and fuel future growth.

As part of our continuous improvement process, we are working to become a leaner and more agile company by simplifying our management structure, empowering our employees with faster decision-making processes and investing in technology and data platforms. We expect these actions will create operating efficiencies, and provide reinvestment capacity to build capabilities, realize additional efficiencies, strengthen our competitiveness and fuel future growth.

Operating expenses increased from $3,083 million to $3,594 million YoY. This increase is a negative factor for operational efficiency.

The company is taking steps to improve operational efficiency, including simplifying its management structure, empowering employees with faster decision-making processes and investing in technology and data platforms.

As part of our continuous improvement process, we are working to become a leaner and more agile company by simplifying our management structure, empowering our employees with faster decision-making processes and investing in technology and data platforms.

Technological changes which may adversely impact companies in our investment portfolio or cause insurance experience to deviate from our assumptions is a risk factor.

An inability to protect our intellectual property rights or claims of infringement of the intellectual property rights of others is a risk factor.

As of March 31, 2025, 2.2 million shares of the Company's Common Stock were repurchased under this authorization at a total cost of $250 million.

In April, the Company announced that it will redeem, in full, $1.0 billion in aggregate principal amount of 5.375% junior subordinated notes due in 2045.

In March 2025, the Company entered into an agreement with Prismic Re International and invested an additional $134 million in Prismic to maintain its 20% equity interest in Prismic.

While the document mentions commitments and contingent liabilities, there is no specific mention of environmental, social, or governance initiatives.

The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements.

Financial or customer losses, or regulatory and legal actions, due to inadequate or failed processes or systems, external events, and human error or misconduct such as (c) a failure to protect the privacy of sensitive data is a risk factor.

The imposition of tariffs and retaliatory actions could result in, among other things, rising interest rates, significant equity market declines, stagnant economic growth and high inflation, which could adversely impact the company's liquidity and capital positions.

As a global financial services company, market interest rates are a key driver of the company's liquidity and capital positions, cash flows, results of operations and financial position. Changes in interest rates can affect these in several ways, including favorable or adverse impacts to investment-related activity.

Changes in the regulatory landscape, including related to (a) financial sector regulatory reform, (b) changes in tax laws, (c) fiduciary rules and other standards of care, (d) U.S. state insurance laws and developments regarding group-wide supervision, capital and reserves, (e) insurer capital standards outside the U.S. and (f) privacy and cybersecurity regulation is a risk factor.