Prudential Financial : 1Q20 Investor Update

1Q20 Investor Update

Forward-Looking Statements

and Non-GAAP Measures

Certain of the statements included in this presentation, including those relating to Prudential Financial, Inc.'s and its subsidiaries' financial strength, long-term growth prospects, ability to manage risk associated with equity market decline, pandemic insurance shock, interest rate shock, credit shock or currency shock, capital allocation strategy (including the payment of dividends, acquisitions, and repurchase of shares), and expected cost savings, 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. Our financial strength, long-term growth prospects, ability to manage risk associated with equity market decline, pandemic insurance shock, interest rate shock, credit shock or currency shock, capital allocation strategy (including the payment of dividends, acquisitions, and repurchase of shares), and expected cost savings are subject to the risk that we will be unable to execute our strategy because of economic, market, or competitive conditions or other factors, including the impact of the COVID-19 pandemic. Prudential Financial, Inc. does not undertake to update any particular forward-looking statement included in this presentation.

This presentation includes references to adjusted operating income, adjusted book value, and adjusted operating return on equity, which is based on adjusted operating income and adjusted book value. Consolidated adjusted operating income and adjusted book value are not calculated based on accounting principles generally accepted in the United States of America (GAAP). For reconciliations of adjusted operating income, adjusted book value, and adjusted operating return on equity to the comparable GAAP measures, please refer to the Appendix.

____________________________________________________________________________

Prudential Financial, Inc. of the United States is not affiliated with Prudential plc which is headquartered in the United Kingdom.

2

Prudential Investment Thesis

ROCK SOLID	DIFFERENTIATED	DISCIPLINED
Demonstrated	Thoughtful strategies	Positioned for
financial strength	and business design	long-term growth
	produce differentiated
	outcomes

DRIVING SUSTAINABLE LONG-TERM VALUE FOR OUR STAKEHOLDERS

12.1% 13% 9%

Adjusted Operating ROE(1)

5-yr Annual Dividends Per Share CAGR(2)

5-yr Adjusted BVPS CAGR(3)

1. Based on 2019 annualizedafter-tax adjusted operating income and average adjusted book value. See reconciliation in Appendix for more information.
2. From 2014 to 2019; based on annual dividend per share.
3. From 2014 to 2019; based on adjusted book value. See reconciliation in Appendix for more information.

3

Complementary Businesses at Scale with Long-Term Growth Potential

Earnings Contribution(1)

PGIM

13%

International $5.7

Businesses

Key Statistics

Revenues(2):~$58B

Adjusted Book Value Per Share(3):

$99.71

43%

billion

U.S.

Businesses

44%

Employees:~50,000

Adjusted Dividend Yield(4):	~4%

1. Based on last twelve months ofpre-tax adjusted operating income through 1Q20. Pie chart excludes Corporate & Other operations loss of $1,696 million.
2. Based on last twelve months of revenue through 1Q20.
3. As of March 31, 2020. See reconciliation in Appendix for more information.
4. Based on 1Q20 annualized dividend per share divided by adjusted book value per share.

4

Committed to Promoting Long-Term Sustainability

Purpose Driven• We make lives better by solving the financial challenges of our changing world

	•	Shareholders	•	Customers
Multi-Stakeholder	•	Employees	•	Society

	•	Global Environmental Commitment	•	ESG-focused Investment Philosophy
Investment Strategy	•	Investing to Mitigate Climate Change	•	U.N. Principles for Responsible Investing

Governance

• Task Force on Climate-related Financial Disclosures

• Transparency• Sustainability Accounting Standards Board

First U.S. life insurer to issue green bond

5

ROCK SOLID

Demonstrated financial strength

Robust Approach to Capital & Liquidity Management

	Financial				Risk Appetite
		Liquidity		Framework
	Strength
		Significant resources
	"AA" standards			Capitalized to remain
		available		competitive under
	for capital
				stress scenarios

7

Demonstrated Financial Strength

Capital Position	Sources of Funding

• Parent company liquid assets > 3x annual fixed charges
• Financial Leverage ratio at 25%(1)
• PICA RBC ratio > 375%
• Japan solvency margin ratios > 700%

• Parent company highly liquid assets of $5.3 billion(2)
• POK net sales proceeds of $1.7 billion in 2H20(3)
• Free cash flow(4)~65% of earnings

Off-Balance Sheet Resources

Credit Facility	•	Capacity: $4.0B
• Maturity Date: July 2022
Contingent Capital	•	Capacity: $1.5B
• Maturity Date: November 2023
Prudential Holdings of	•	Capacity: ¥100B
Japan Facility	•	Maturity Date: September 2024

As of March 31, 2020.

1. Financial leverage ratio represents capital debt divided by sum of capital debt and equity. Junior subordinated debt treated as 25% equity, 75% capital debt for purposes of calculation. Equity excludesnon-controlling interest, AOCI (except for pension and postretirement unrecognized costs), and the impact of foreign currency exchange rate remeasurement.
2. Highly liquid assets predominantly include cash,short-term investments, U.S. Treasury securities, obligations of other U.S. government authorities and agencies, and/or foreign government bonds.
3. Net proceeds primarily include the impact of intercompany loan settlements and other estimated closing costs.
4. Management view of free cash flow as a percentage ofafter-tax adjusted operating income includes dividends and returns of capital, net receipts from capital related intercompany loans, capital contributions to subsidiaries, and adjustments for M&A funding.

8

Preserving Balance Sheet Strength, as We Have Done for 140+ Years

Stress Parameters				Our Toolbox
Equity Market Decline		•	Disciplined ALM and
	hedging
			• On balance sheet capital
				capacity
Pandemic Insurance Shock
			• Off-balance sheet resources
				-	Credit facilities
Interest Rate Shock			-	Contingent capital
			• Shift in our product mix
			• Ability to adjust product
Credit Shock		pricing
			•	Reinsurance
Currency Shock		•	Prudent management

Outcomes

• Maintain appropriate and competitive regulatory capital levels at insurance companies
• Opportunisticallypre-funded $1.5 billion of 2020 and 2021 debt maturities
• Maintain adequate cash position at parent company
• Relatively resilient to equity market and interest rates declines
• Highly effective variable annuity hedging program

9

Broadly Diversified, High Quality Investment Portfolio

Portfolio Composition(1)

$436 billion

	Equities/	Other
	Alts	4%
	3%
	Mortgage
	Loans
Structured	12%	Government
Products		Securities
6%		38%

Corporate

Securities,

Private
11%	Corporate
	Securities, Public
	26%

Highlights:

• High quality, defensively positioned portfolio with disciplined Asset Liability Management
• • High allocation to government securities (mostly U.S. and Japan)
  • Significant protections with private credit
  • Well protected mortgages, underweight office and retail with low LTVs
  • Low exposure to vulnerable sectors (Energy,
    Retail, Other "At Risk" Corporates)
• Favorable credit loss experience relative to peers
• • Outperformed in 2008 / 2009 and through cycle ending in 2019
• Benefits of PGIM's expertise and direct origination capabilities
• Credit asset leverage lower than peer average at 6.2x(2)

1. General Account excluding the Closed Block Division and assets supportingexperience-related contractholder liabilities (ASCL) as of March 31, 2020, on a U.S. GAAP carrying value basis. ASCL represents investment results that generally accrue to contractholders. Equities/Alts include equity securities, investments in LPs/LLCs, and real estate held through direct ownership. Structured products include commercial and residential mortgage-backed securities, collateralized loan obligations, and other asset-backed securities. Other includes policy loans, fixed maturities - trading, short-term investments, derivatives, and other miscellaneous assets.
2. Asset leverage defined as (a) invested assets adjusted to isolate credit risk by including only Credit Bonds (fixed maturities including mortgage loans less government bonds), excluding the Closed Block Division and ASCL, divided by (b) equity excluding the portion of AOCI attributable to FX remeasurement and goodwill. Peer average includes AFL, AEL, AMP, ATH, BHF, CNO, EQH, LNC, MET, PFG, RGA, UNM, and VOYA. As of December 31, 2019 and sourced from Company Form10-K filings or quarterly financial supplements.

10

Balanced Approach to Capital Allocation

1. Maintain Strong Capital Position
2. Organic Growth at Attractive Returns
3. Sustainable and Growing Dividends
4. Acquisitions
5. Share Repurchases

Shareholder Distributions

($ millions)

Temporarily

suspended share

$4,144repurchases in 2Q20

$3,245
			$3,026
	$2,550				$2,500
$2,000			$1,500
	$1,250
							$945
	$1,300	$1,526	$1,644	$500
$1,245
							$445
2016	2017	2018	2019	1Q20
		Dividends			Share Repurchases

11

Double-Digit Dividend Growth Supported by Strong Earnings and Cash Flow Coverage

($ per share)

Annual Dividends

19% CAGR

$2.17

$1.60 $1.73

$1.45

$1.15

$0.58 $0.70

$4.00

$3.60

$3.00

$2.80

$2.44

34%

2019 Dividend Payout Ratio(1)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

1. Based on annual dividend per share divided by annualafter-tax adjusted operating income per share.

12

DIFFERENTIATED

Thoughtful strategies and business design

produce differentiated outcomes

PGIM

Diversified Top 10 Global Asset Manager with a Differentiated Active Multi-Manager Model

Earnings Contribution(1)

($ millions)

$948

PGIM

13%

Business Highlights:

• Diverse offering with scale - Attractive asset classes, client segments, and worldwide geographic presence
• Proven ability to capture industry flows and market share while preserving fee levels
• Alignment of incentive - Pay for performance model

Stable earnings, strong operating margin, and sustained cash flows to PFI

Note: See Appendix for sources of rankings.

(1) Based on last twelve months of pre-tax adjusted operating income through 1Q20 excluding Corporate & Other operations.

14

PGIM

Strong Investment Performance Across Attractive Asset Classes Leads to Significant Organic Growth

Percentage of PGIM AUM(1)Outperforming Benchmark

94%

79%

46%

3 Years

5 Years

10 Years

3/31/2020(2)

Successful History with 16 out of

17 Years of Positive Third-Party Net Flows

($ billions)

							36.5
									30.0
								22.6	23.8		21.9
						20.1
														15.6
		11.0 11.0										13.7
	9.8	10.8
			7.1
										5.5		5.7
0.5																	2.9
															(0.8)
2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	1Q20

1. Represents PGIM's benchmarked AUM (77% of totalthird-party AUM is benchmarked over 3 years, 67% over 5 years, and 44% over 10 years respectively). This calculation does not include non-benchmarked assets (including general account assets and assets not managed by PGIM). Returns are calculated gross of investment management fees, which would reduce an investor's net return. Excess performance is based on all actively managed Fixed Income, Equity and Real Estate AUM for Jennison Associates, PGIM Fixed Income, Quantitative Management Associates (QMA), PGIM Real Estate, PGIM Private Capital, PGIM Global Partners, and PGIM Real Estate Finance.
2. PGIM calculations as of March 31, 2020 for $709 billion ofthird-party AUM managed against public benchmarks. Past performance is not a guarantee or reliable indicator of future results. All investments involve risk, including the possible loss of capital. Performance is defined as outperformance (gross of fees) relative to each individual strategy's respective benchmark(s).

15

International Businesses

Highly Productive, Elite Proprietary Distribution and Expanding Presence in Growth Markets

Earnings Contribution(1)

($ millions)

$3,188International Businesses

43%

Business Highlights:

• Best in class, profitable Japanese franchise consistently taking market share
• Continuing rotation from mature to developing markets with greater growth prospects and favorable demographic trends
• Synergies with PGIM's investment expertise

Stable earnings, high returns, and sustained cash flows to PFI

Note: See Appendix for earnings by business.

(1) Based on last twelve months of pre-tax adjusted operating income through 1Q20 excluding Corporate & Other operations.

16

International Businesses

Attractive Mix of Developed and Emerging Markets Provide Long-term Growth

Developed: Japan

• Highly productive distribution system; world class captive agents, complemented bythird-party channels
• Aging population provides opportunity for expanding product solutions
• Wealthy households with significant investable assets

Emerging Markets

• Expanding economies and rising affluent and middle class: Latin America, China, Southeast Asia, Africa
• Low insurance penetration with growing demand for protection and savings products
• Thoughtful ownership approaches and business models tailored to local market dynamics and opportunities

17

U.S. Businesses

Diversified Business Portfolio with Expanding Market Opportunities

Earnings Contribution(1)

($ millions)

U.S.

Businesses

44%

$3,245

Note: See Appendix for earnings by business.

Business Highlights:

• Diversified customer base
• Broad set of complementary solutions
• Strongmulti-channel distribution
• Synergies with PGIM's investment expertise

Scaled and diversified businesses

with runway for growth

1. Based on last twelve months ofpre-tax adjusted operating income through 1Q20 excluding Corporate & Other operations. U.S. Businesses include Retirement, Group Insurance, Individual Annuities, Individual Life, and Assurance IQ.

18

U.S. Businesses

Broad, End-to-End Engagement Model

We Can Meet Customers…

… How and When They Want

Institutions

Individuals

withinDigital Hybrid In-PersonInstitutions

Individuals

19

Complementary Businesses Amplify Growth and Mitigate Risk

Competitive Synergies

• PGIM is the "investment engine" of Prudential - generates higher returning assets that enhance the competitiveness of U.S. and International Businesses
• U.S. and International Businesses significantly increase PGIM's scale
• Individual businesses enhance Workplace value proposition

Risk Mitigation Synergies

• Diversification of earnings, capital, and risks
• Natural hedging
• • Mortality / Longevity
  • Offsetting equity exposure across businesses

Global Intelligence		Idea Sharing		Common Purpose

20

DISCIPLINED

Positioned for long-term growth

2020: Focus on Execution

	Enhance		Rotate
	Customer			Mitigate
		International
	Experience and			Effect of Low
		Earnings Mix to
	Realize Cost			Interest Rates
		Growth Markets
	Savings

22

PGIM

Earnings and Margin Continue to Expand

($ billions)	Earnings
Pre-tax AOI

8.2%
CAGR	$1.0
$0.8
2016	2019

Growth opportunities from:

• Alternatives
• International
• Retail

Margin expansion from

positive operating leverage

23

PGIM

Growth in Alternatives

Market Opportunity(1)

PGIM's Positioning

Investments for Future Growth

($ trillions)

$5

$3

$21

11%

CAGR

$14

$11

$6

Alternatives(2)	$235B	Top 3

Real Estate(2)	$179B	Top 3

Private	$91B	Top 3
Credit(2)

• Building out private credit

capabilities (e.g. mezzanine,

direct lending)

• Entering the Private Equity

Secondaries space

• Further scaling and

broadening PGIM Fixed

Income's suite of

hedge funds

• Driving growth of QMA's

global macro and managed

2004 2007 2012 2017 2020E 2025E

futures strategies

Note: See Appendix for sources of rankings.

1. PwC Asset & Wealth Management Revolution, published 2018.
2. Data reflects AUM as of March 31, 2020. Alternatives AUM represents hedge fund, mezzanine and other private credit, real asset, and infrastructure products across all PGIM businesses.

24

PGIM

Significant Opportunity Outside the U.S.

Japan

~$250B in Assets(1)

Europe

~$67B in Assets(1)

Emerging

Markets

~$31B in Assets(1)

• Top 3foreign manager of Japanese Institutional assets
• Generated a total of~$40Bin third-party net flows over the last 5 years
• Increased appetite fornon-Japan assets
• AUM from European clients grew by8% CAGRover the last 5 years
• ~30 sales professionals covering EU institutions and intermediaries, tripled since 2013
• Entering Retail market
• China:$17B AUM JV(1)up from $5Bin 2010; deepening local coverage of top institutions
• Top 10 EM active manager with$49B(2)across public debt and equities strategies

Note: See Appendix for sources of rankings.

1. As of March 31, 2020.
2. As of December 31, 2019.

25

PGIM

Momentum in U.S. Retail

Market Opportunity(1)

20%

$21

59%trillion 21%

Passive MFs

Passive ETFs

Active MFs and ETFs

PGIM's Positioning

• Ranked#7by flows
• Institutional approach to serving retail intermediaries
• Leading Fixed Income franchise meets investors' demand for yield

Investments for

Future Growth

• Continue to build on strategic partner status (e.g. Edward Jones)
• Scale up suite of active ETFs and Retail Separate Accounts

Note: See Appendix for sources of rankings.

(1) Morningstar data as of year ended December 31, 2019 (excludes money market funds).

26

International Businesses

Earnings Expansion with Stable Margins

($ billions)	Earnings
Pre-tax AOI

	2.5%
	CAGR
$3.1	$3.4
2016	2019

Growth opportunities from:

• Continuing to outpace the market in Japan
• Expanding our presence in emerging markets

Note: See Appendix for earnings by business.

27

International Businesses

Well Positioned for Continued

Outperformance in Japan

	Market		Highly Skilled		Adept at
	Penetration			Product
		Distribution
	Beyond Tokyo			Evolution

28

International Businesses

Delivering on Our Strategic Imperatives to Capture Growth in Emerging Markets

Our Presence

Strategic Imperatives

Growth

Latin America,

China, India,

Indonesia,

Africa

Distribution Expansion in

Proprietary and Third-Party

Channels

Product Development

to Meet Customer Needs

BuildingDigital, Mobile,

and DataAnalytics Capabilities

Complementing Organic Growth with M&A

Distribution Expansion

Digital Enablement

Partners:Partners:

29

U.S. Businesses

Executing Against Three Strategic Pillars

($ billions)	Earnings
Pre-tax AOI

	4.5%	Growth opportunities from:
	CAGR
	$3.5	•	Strengthening our foundational
$3.1
		businesses
		•	Transforming capabilities and
			efficiency
		•	Expanding addressable markets to
			accelerate growth
2016	2019

Note: See Appendix for earnings by business.

30

U.S. Businesses

Strengthening Our Foundational Businesses

• Enhance Full Service platform customer experience and

Retirementcompetitiveness

• Pursue disciplined growth in PRT

Group		•	Expand in target customer segments
Insurance		•	Enhance voluntary platform and products

Individual	•	Expand in target distribution and customer segments
Annuities &	•	Further diversify product mix to mitigate interest rate sensitivity
Individual Life

31

U.S. Businesses

Transforming Capabilities and Efficiency

Changing the way we work to improve the customer experience:

• Call Center Optimization
• Process Automation
• Technology Enablement (Digital, Mobile)

Resulting in ~$500 million of annual run-rate cost savings(1)

(by year-end 2022)

~$500

$400-450

$250-300

$50

~($75) ~($50)

~($175)

($400)

~$700 million total implementation costs

(includes Voluntary Separation Program)(2)

2019A 2020F 2021F 2022F

1. Run-rateat the end of the year. Earnings impact includes U.S. Businesses, PGIM, and Corporate & Other and is subject to timing.
2. Includes technology, systems, severance, reskilling, and otherone-time costs.

32

U.S. Businesses

Expanding Addressable Markets to Accelerate Growth

Opportunity to Accelerate Growth in

Mass Affluent and Middle Market

86M

		Mass Market
Households		$1.7T Assets
25M	Middle Market
	$5.8T Assets
	12M	Mass Affluent
		$11.2T Assets

5M

Affluent

$29.8T Assets

Significant opportunity to expand and grow:

• Underserved markets with significant gaps for protection and retirement

How we make it happen:

• Simplified and affordable products
• Alternative distribution channels
• • Workplace Financial Wellness
  • Prudential Advisors
  • LINK/Hybrid Advisors
  • Assurance IQ

Sources: Cerulli 2018 Retail Asset Management Report; Prudential 2018 Financial Wellness Survey.

33

Prudential Investment Thesis

ROCK SOLID	DIFFERENTIATED	DISCIPLINED
Demonstrated	Thoughtful strategies	Positioned for
financial strength	and business design	long-term growth
	produce differentiated
	outcomes

DRIVING SUSTAINABLE LONG-TERM VALUE FOR OUR STAKEHOLDERS

12.1% 13% 9%

Adjusted Operating ROE(1)

5-yr Annual Dividends Per Share CAGR(2)

5-yr Adjusted BVPS CAGR(3)

1. Based on 2019 annualizedafter-tax adjusted operating income and average adjusted book value. See reconciliation in Appendix for more information.
2. From 2014 to 2019; based on annual dividend per share.
3. From 2014 to 2019; based on adjusted book value. See reconciliation in Appendix for more information.

34

APPENDIX

Investment Portfolio - Exposures in Focus

Areas of Exposure	Amount(1)	% of			Commentary
Portfolio(1)
BBB Corporates	$65B	15%	•	Lower allocation vs. peers(2)	•Lower exposure to BBB-, predominately in private credit
•	Nearly half are privates	with historically more favorable recoveries
Commercial			•	Overweight more defensive sectors	•Well protected with weighted average LTV of 56% and
$54B	12%		(Industrial and Multi-Family)	DSCR of 2.47x
Mortgages
		•	Underweight Office and Retail	•Benefits from PGIM's direct origination
			•Well balanced, high quality with
Structured Securities	$25B	6%		99% rated AAA-AA	•CMBS are highly diversified collateral pools with no
•	CLOs are 100% AAA rated, with	Single Asset Single Borrower exposure
				~35% credit enhancement
Below Investment	$15B	3%	•	45% are privates	•Heavily weighted towards higher quality
Grade Corporates
			•Lower allocation than peers(2)
Equity & Alternative	$13B	3%		(Pru ~3% vs. peers ~5%)	•Returns have exceeded expectations over time
Investments	•	Broadly diversified by strategy,
				manager, and vintage years
			•	Lower allocation vs. peers(2)	•Primarily concentrated in regulated midstream (40%)
			and major producers (integrated energy, 24%)
Energy Corporates	$11B	3%	•	82% rated investment grade
•$0.4 billion below investment grade publics in riskier
			•	30% are privates
			sectors(3)
Retail Corporates(4)	$5B	1%	•	90% are investment grade	•Significant portion of investments (65% of total
exposure in 10 companies) in large, essential retailers
Other "At Risk"	$5B	1%	•	80% are investment grade	•Includes Automotive, Restaurants, Gaming, Leisure,
Corporates	Lodging, and Airlines

1. General Account excluding the Closed Block Division and assets supportingexperience-related contractholder liabilities as of March 31, 2020, on a U.S. GAAP carrying value basis.
2. Peer average includes ATH, BHF, LNC, MET, and PFG. As of December 31, 2019 and sourced from Company Form10-K filings or Statutory filings.
3. Independent Energy and Oil Field Services.
4. Includes real estate investment trusts.

36

Sources of Rankings

Business	Market Position	Source
	Top 10 Global Asset	Pensions & Investments Top Money Manager's list, May 27, 2019.
	Manager	AUM as of December 31, 2018.
	Top 3 Alternatives Asset	Based on Willis Towers Watson Global Alternatives Survey, July
	Manager	2017. AUM as of December 2016.
	Top 3 Real Estate	IPE Real Assets, Real Estate Managers by Worldwide AUM as of
	Manager	June 30, 2018. Publication as of November/December 2018 issue.
	Top 3 Assets in	Investment Grade Credit Manager Survey, IPE International
	Investment Grade Credit
	Publishers Limited, March 2019. AUM as of December 31, 2018.
	Strategies
PGIM
Top 3 Foreign Manager of	Nenkin Joho by R&I. AUM as of December 31, 2018. AUM ranking
	Japanese Institutional	pertains to separate accounts and does not include AUM for
	Assets	institutional funds.
	Top 10 EM Active	Based on eVestment data as of December 31, 2019.
	Manager
		Strategic Insight/Simfund FY 2019. Ranking only references long-
	#7 Flows	term mutual funds and excludes ETF and money markets. Results
	may differ from PGIM Investments (Strategic Insight/Simfund
		excludes Day One and private funds).

37

Earnings by Business

($ millions)		Full Year		Twelve
	Months Ended
		2019		2016		3/31/2020
Adjusted operating income (loss) before income taxes
PGIM	$	998	$	787	$	948
U.S. Businesses:
Retirement		1,301		1,012		1,295
Group Insurance		285		220		276
Individual Annuities		1,843		1,765		1,744
Individual Life		87		79		(38)
Assurance IQ		(9)		-		(32)
Total U.S. Businesses		3,507		3,076		3,245
International Businesses:
Life Planner		1,680		1,539		1,616
Gibraltar Life & Other		1,679		1,578		1,572
Total International Businesses		3,359		3,117		3,188
Corporate & Other		(1,766)		(1,581)		(1,696)
Total adjusted operating income before income taxes		6,098		5,399		5,685
Income taxes, applicable to adjusted operating income		1,253		1,292		1,160
After-tax adjusted operating income	$	4,845	$	4,107	$	4,525

38

Reconciliations between Adjusted Operating Income and the Comparable GAAP Measure

($ millions, except per share data)				Full Year		Twelve
			Months Ended
					2019		2016		3/31/2020
Net income (loss) attributable to Prudential Financial, Inc.		$	4,186	$	4,368	$	2,983
Income attributable to noncontrolling interests			52		51		48
Net income (loss)					4,238		4,419		3,031
Less: Earnings attributable to noncontrolling interests			52		51		48
Income (loss) attributable to Prudential Financial, Inc.			4,186		4,368		2,983
Less: Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		48		(2)		33
Income (loss) (after-tax) before equity in earnings of operating joint ventures		4,138		4,370		2,950
Less: Reconciling Items:				-
Realized investment gains (losses), net, and related charges and adjustments	(1)		(889)		527		(1,000)
Market experience updates				(462)		-		(1,409)
Divested and Run-off Businesses:			-
Closed Block division				36		(132)		54
Other Divested and Run-off Businesses			452		(84)		358
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(103)		(5)		(79)
Other adjustments	(2)				(47)		-		(2)
Total reconciling items, before income taxes			(1,013)		306		(2,078)
Less: Income taxes, not applicable to adjusted operating income			(306)		43		(503)
Total reconciling items, after income taxes			(707)		263		(1,575)
After-tax adjusted operating income			4,845		4,107		4,525
Income taxes, applicable to adjusted operating income			1,253		1,292		1,160
Adjusted operating income before income taxes		$	6,098	$	5,399	$	5,685
				$	-
After-tax adjusted operating income per share		$	11.69	$	9.13
Net Income Return on Equity				7.1%		8.8%
Adjusted Operating Return on Equity	(3)			12.1%		12.0%

1. Prior period amounts have been updated to conform to current period presentation.
2. Represents adjustments not included in the above reconciling items. "Other adjustments" include certain components of the consideration for the Assurance IQ acquisition, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of contingent consideration.
3. Represents adjusted operating incomeafter-tax, annualized for interim periods, divided by average Prudential Financial, Inc. equity excluding accumulated other comprehensive income and adjusted to remove amounts included for foreign currency exchange rate remeasurement.

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Reconciliations between Adjusted Book Value and the Comparable GAAP Measure(1)

($ millions, except per share data)		December 31,		March 31,
		2019			2014			2020
GAAP book value	$	63,115	$	40,981	$	60,447
Less: Accumulated other comprehensive income (AOCI)		24,039			15,882			22,600
GAAP book value excluding AOCI		39,076			25,099			37,847
Less: Cumulative effect of remeasurement of foreign currency		(1,835)			(4,783)			(1,687)
Adjusted book value	$	40,911	$	29,882	$	39,534
		-			-			-
Number of diluted shares		404.9			461.5			396.5
		-			-			-
GAAP book value per Common share - diluted(1)	$	155.88	$	88.80	$	152.45
GAAP book value excluding AOCI per Common share - diluted(1)	$	96.51	$	54.39	$	95.45
Adjusted book value per Common share - diluted(1)	$	101.04	$	64.75	$	99.71

1. Represents results of Financial Services Businesses for 2014. The $500 million of exchangeable surplus notes were converted into 6.2 million shares of Common Stock in the third quarter of 2019. Book value per share as of December 31, 2014 excludes the impact of exchangeable surplus notes due to theanti-dilutive impact of conversion.

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