Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

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Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

The following documents are filed as part of this report:


		Page
1.	Financial Statements—Item 8. Financial Statements and Supplementary Data	149
2.	Financial Statement Schedules:
	Schedule I—Summary of Investments Other Than Investments in Related Parties as of December 31, 2022	304
	Schedule II—Condensed Financial Information of Registrant as of December 31, 2022 and 2021, and for the years ended December 31, 2022, 2021 and 2020	305
	Schedule III—Supplementary Insurance Information as of and for the years ended December 31, 2022, 2021 and 2020	311
	Schedule IV —Reinsurance as of and for the years ended December 31, 2022, 2021 and 2020	314
	Any remaining schedules provided for in the applicable SEC regulations are omitted because they are either inapplicable or the relevant information is provided elsewhere within this Form 10-K.

Exhibits:

See the accompanying Exhibit Index.

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PRUDENTIAL FINANCIAL, INC.

Schedule I

Summary of Investments Other Than Investments in Related Parties

As of December 31, 2022

(in millions)


Type of Investment	Amortized Cost or Cost(1)		Fair Value		Amount Shown in the Balance Sheet
Fixed maturities, available-for-sale:
Bonds:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	29,372	$	26,069	$	26,069
Obligations of U.S. states and their political subdivisions	10,179		9,689		9,689
Foreign governments	74,103		73,226		73,226
Asset-backed securities	12,972		12,851		12,851
Residential mortgage-backed securities	2,613		2,417		2,417
Commercial mortgage-backed securities	11,497		10,655		10,655
Public utilities	29,397		25,960		25,960

All other corporate bonds	164,967		146,502		146,502
Redeemable preferred stock	347		350		350
Total fixed maturities, available-for-sale	$	335,447	$	307,719	$	307,719
Fixed maturities, held-to-maturity:
Bonds:
Foreign governments	$	725	$	853	$	725
Residential mortgage-backed securities	143		148		143

All other corporate bonds	430		454		428
Total fixed maturities, held-to-maturity	$	1,298	$	1,455	$	1,296
Equity securities:
Common stocks:
Other common stocks	$	3,893	$	5,284	$	5,284
Mutual funds	1,193		1,612		1,612
Nonredeemable preferred stocks	44		79		79
Perpetual preferred stocks	176		175		175
Total equity securities, at fair value	$	5,306	$	7,150	$	7,150
Fixed maturities, trading	$	7,303	$	5,951	$	5,951
Assets supporting experience-rated contractholder liabilities	2,612				2,844
Commercial mortgage and other loans(2)	56,745				56,745
Policy loans	10,046				10,046
Short-term investments	4,591				4,591
Other invested assets	21,099				21,099
Total investments	$	444,447			$	417,441

(1)See Note 3 to the Consolidated Financial Statements for the composition of the Company’s “Assets supporting experience-rated contractholder liabilities, at fair value.”

(2)Includes collateralized commercial mortgage and other loans of $56,284 million and uncollateralized loans of $461 million.

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PRUDENTIAL FINANCIAL, INC.

Schedule II

Condensed Financial Information of Registrant

Condensed Statements of Financial Positions as of December 31, 2022 and 2021

(in millions)


	2022		2021
ASSETS
Investment contracts from subsidiaries	$	0	$	1
Fixed maturities, available for sale, at fair value (amortized cost: 2022- $1,719; 2021- $1,052)	1,564		1,072
Equity securities, at fair value (cost: 2022- $25; 2021- $25)	25		25
Other invested assets	2,495		1,958
Total investments	4,084		3,056
Cash and cash equivalents	1,396		1,251
Due from subsidiaries	2,841		3,458
Loans receivable from subsidiaries	8,032		7,876
Investment in subsidiaries	27,047		73,097
Property, plant and equipment	413		428
Income taxes receivable	0		178
Other assets	116		112
TOTAL ASSETS	$	43,929	$	89,456
LIABILITIES AND EQUITY
LIABILITIES
Due to subsidiaries	$	3,705	$	3,899
Loans payable to subsidiaries	4,279		5,396
Short-term debt	25		25
Long-term debt	19,162		17,673
Income taxes payable	71		0
Other liabilities	437		587
Total liabilities	27,679		27,580
EQUITY
Preferred Stock ($0.01 par value; 10,000,000 shares authorized; none issued)	0		0
Common Stock ($0.01 par value; 1,500,000,000 shares authorized; 666,305,189 shares issued as of December 31, 2022 and December 31, 2021)	6		6

Additional paid-in capital	25,747		25,732
Common Stock held in treasury, at cost (300,342,458 and 290,018,851 shares as of December 31, 2022 and 2021, respectively)	(23,068)		(21,838)
Accumulated other comprehensive income (loss)	(19,827)		21,324
Retained earnings	33,392		36,652
Total equity	16,250		61,876
TOTAL LIABILITIES AND EQUITY	$	43,929	$	89,456

See Notes to Condensed Financial Information of Registrant

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PRUDENTIAL FINANCIAL, INC.

Schedule II

Condensed Financial Information of Registrant

Condensed Statements of Operations for the Years Ended December 31, 2022, 2021 and 2020

(in millions)


	2022		2021		2020
REVENUES
Net investment income	$	177	$	62	$	97
Realized investment gains (losses), net	128		90		(262)
Affiliated interest revenue	387		358		345
Other income (loss)	27		18		110
Total revenues	719		528		290
EXPENSES
General and administrative expenses	71		166		273
Interest expense	1,161		1,088		1,157
Total expenses	1,232		1,254		1,430
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES	(513)		(726)		(1,140)
Total income tax expense (benefit)	(134)		(130)		(357)
INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES	(379)		(596)		(783)
Equity in earnings of subsidiaries	(1,059)		8,320		409
NET INCOME (LOSS)	$	(1,438)	$	7,724	$	(374)
Other Comprehensive Income (loss)	(41,151)		(9,414)		6,699
TOTAL COMPREHENSIVE INCOME (LOSS)	$	(42,589)	$	(1,690)	$	6,325

See Notes to Condensed Financial Information of Registrant

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PRUDENTIAL FINANCIAL, INC.

Schedule II

Condensed Financial Information of Registrant

Condensed Statements of Cash Flows for the Years Ended December 31, 2022, 2021 and 2020

(in millions)


	2022		2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(1,438)	$	7,724	$	(374)
Adjustments to reconcile net income to cash provided by operating activities:
Equity in earnings of subsidiaries	1,059		(8,320)		(409)
Realized investment (gains) losses, net	(128)		(90)		262
Dividends received from subsidiaries	3,967		3,239		4,042
Property, plant and equipment	(8)		(4)		(1)
Change in:
Due to/from subsidiaries, net	681		(513)		649
Other, operating	39		63		359
Cash flows from (used in) operating activities	4,172		2,099		4,528
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from the sale/maturity of:
Fixed maturities, available-for-sale	76		969		412



Short-term investments	23,529		15,718		18,489
Payments for the purchase of:


Fixed maturities, available for sale	(744)		(500)		(298)
Short-term investments	(24,080)		(13,795)		(20,039)
Capital contributions to subsidiaries	(2,527)		(874)		(386)
Returns of capital contributions from subsidiaries	2,098		430		813

Loans to subsidiaries, net of maturities	(157)		151		(876)
Other, investing	0		7		0
Cash flows from (used in) investing activities	(1,805)		2,106		(1,885)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends paid on Common Stock	(1,817)		(1,814)		(1,766)
Common Stock acquired	(1,488)		(2,500)		(500)
Common Stock reissued for exercise of stock options	163		200		153
Proceeds from the issuance of debt (maturities longer than 90 days)	2,474		—		2,768
Repayments of debt (maturities longer than 90 days)	(1,005)		(1,308)		(2,467)
Repayments of loans from subsidiaries	(1,811)		151		(1,023)
Proceeds from loans payable to subsidiaries	1,386		1,411		166
Net change in financing arrangements (maturities of 90 days or less)	(2)		0		—

Other, financing	(122)		(156)		(74)
Cash flows from (used in) financing activities	(2,222)		(4,016)		(2,743)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	145		189		(100)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	1,251		1,062		1,162
CASH AND CASH EQUIVALENTS, END OF YEAR	$	1,396	$	1,251	$	1,062

SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the period for interest	$	1,071	$	1,050	$	1,088
Cash paid (refunds received) during the period for taxes	$	(231)	$	(330)	$	(482)

NON-CASH TRANSACTIONS DURING THE YEAR
Non-cash capital contributions to subsidiaries	$	(620)	$	(3,607)	$	(1)
Non-cash dividends/returns of capital from subsidiaries	$	501	$	4,582	$	470
Treasury Stock shares issued for stock-based compensation programs	$	235	$	138	$	151

See Notes to Condensed Financial Information of Registrant

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PRUDENTIAL FINANCIAL, INC.

Schedule II

Condensed Financial Information of Registrant

Notes to Condensed Financial Information of Registrant

1. ORGANIZATION AND PRESENTATION

Prudential Financial, Inc. (“Prudential Financial”) was incorporated on December 28, 1999, as a wholly-owned subsidiary of The Prudential Insurance Company of America (“PICA”). On December 18, 2001, PICA converted from a mutual life insurance company to a stock life insurance company and became an indirect, wholly-owned subsidiary of Prudential Financial.

The condensed financial information of Prudential Financial, Inc. (the “Parent Company”) should be read in conjunction with the consolidated financial statements of Prudential Financial, Inc. and its subsidiaries and the notes thereto (the “Consolidated Financial Statements”). The condensed financial statements of Prudential Financial reflect its direct wholly-owned subsidiaries using the equity method of accounting.

In April 2022, the Company completed the sale of Prudential Annuities Life Assurance Corporation (“PALAC”), a subsidiary of Prudential Financial, representing a portion of its in-force traditional variable annuity block of business, to Fortitude Group Holdings, LLC (“Fortitude”). The Company recognized a pre-tax gain on sale of $852 million.

In April 2022, the Company completed the sale of its Full Service Retirement business to Great-West Life & Annuity Insurance Company (“Great-West”), primarily through a combination of (i) the sale of all of the outstanding equity interests of certain legal entities, including Prudential Retirement Insurance and Annuity Company (“PRIAC”); (ii) the ceding of certain insurance policies through reinsurance; and (iii) the sale, transfer and/or novation of certain in-scope contracts and brokerage accounts. The Company recognized a net pre-tax gain on sale of $620 million, as well as a deferred gain of approximately $400 million in 2022, including a post-closing true-up, for the ceding of certain insurance policies through reinsurance to Great-West.

In June 2021, Prudential International Insurance Holdings, Ltd. (“PIIH”), a subsidiary of Prudential Financial, completed the sale of The Prudential Life Insurance Company of Taiwan Inc. (“POT”) to Taishin Financial Holding Co, Ltd. (the “Buyer”) for cash consideration of approximately NT$5.5 billion, equal to approximately $200 million at then current exchange rates. The terms of the transaction included additional contingent consideration tied to the level of yields for the 10-year Taiwanese Government bond for two years after the signing of the transaction and was measured at fair value each period, resulting in the receipt of the maximum contractual amount of $100 million in 2022.

In March 2021, PIIH completed the sale of Pramerica SGR (Italy Investment JV), to UBI Banca for cash consideration of approximately €427 million, equal to approximately $503 million.

In August 2020, PIIH completed the sale of The Prudential Life Company of Korea, Ltd. (“POK”) to KB Financial Group Inc., for cash consideration of approximately ₩2.3 trillion, equal to approximately $1.9 billion. The Company recognized an approximate $800 million after-tax loss on the transaction in 2020.

2. OTHER INVESTMENTS

Prudential Financial’s other investments as of December 31, 2022 and 2021 consisted primarily of highly liquid debt investments and intercompany enterprise liquidity account funds.

3. DEBT

A summary of Prudential Financial’s short- and long-term debt is as follows:

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			December 31,
	Maturity Dates	Rate(1)	2022		2021
			($ in millions)
Short-term debt:
Commercial paper(2)			$	25	$	25
Current portion of long-term debt			0		0
Total short-term debt			$	25	$	25
Long-term debt:
Fixed rate senior notes	2026-2051	1.50%-6.63%	$	10,115	$	10,109

Junior subordinated notes	2043-2062	3.70%-6.00%	9,047		7,564

Total long-term debt			$	19,162	$	17,673

(1)Ranges of interest rates are for the year ended December 31, 2022.

(2)The weighted average interest rate on outstanding commercial paper was 4.35% and 0.12% at December 31, 2022 and December 31, 2021, respectively.

Long-term Debt

In order to manage exposure to interest rate movements, Prudential Financial utilizes derivative instruments, primarily interest rate swaps, in conjunction with some of its debt issuances. The impact of these derivative instruments is not reflected in the rates presented in the table above. Interest expense was $0.0 million for both the years ended December 31, 2022 and 2021, as there were no such derivatives that qualified for hedge accounting treatment. Interest expense for these derivatives was $0.4 million for the year ended December 31, 2020.

Schedule of Long-term Debt Maturities

The following table presents Prudential Financial’s contractual maturities for long-term debt as of December 31, 2022:


	Calendar Year
	2024		2025		2026		2027		2028 and thereafter		Total
	(in millions)
Long-term debt	$	0	$	0	$	500	$	0	$	18,662	$	19,162

4. DIVIDENDS AND RETURNS OF CAPITAL

For the years ended December 31, Prudential Financial received cash dividends and/or returns of capital from the following subsidiaries:


	2022		2021		2020
	(in millions)
Prudential Annuities Holding Company	$	74	$	73	$	120
International Insurance and Investments Holding Companies(1)(2)	1,313		838		3,061
The Prudential Insurance Company of America(3)	2,400		1,100		500
PGIM Holding Company(2)	156		540		399
Prudential Annuities Life Assurance Corporation(3)	2,081		1,057		760
Other Holding Companies	41		62		14
Total	$	6,065	$	3,670	$	4,854

(1)2020 includes $1,627 million of net proceeds from the sale of POK that were distributed to PFI.

(2)2021 includes $450 million of net proceeds from the sale of Pramerica SGR (Italy Investment JV) and $198 million of net proceeds from the sale of POT that were distributed to PFI.

(3)2022 includes $2,400 million of net proceeds from the sale of PRIAC and $2,081 million of net proceeds from the sale of PALAC that were distributed to PFI.

5. COMMITMENTS AND GUARANTEES

Prudential Financial has issued a subordinated guarantee covering a subsidiary’s domestic commercial paper program. As of December 31, 2022, there was $420 million outstanding under this commercial paper program.

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Prudential Financial has provided guarantees of the payment of principal and interest on intercompany loans between affiliates. As of December 31, 2022, Prudential Financial had issued guarantees of outstanding loans totaling $4.1 billion between international insurance subsidiaries and other affiliates.

In 2013, Prudential Financial entered into a $500 million indemnity and guarantee agreement with Wells Fargo Bank Northwest, N.A. Under this agreement, Prudential Financial guaranteed obligations with respect to an affiliated loan from PICA to an affiliate. The loan proceeds were utilized to construct the Prudential Tower home office in Newark, New Jersey.

Prudential Financial is also subject to other financial guarantees, net worth maintenance agreements and indemnity arrangements, including those made in the normal course of business guaranteeing the performance of, or representations made by, Prudential Financial subsidiaries. Prudential Financial has provided indemnities and guarantees related to acquisitions and dispositions, investments, debt issuances and other transactions, including those provided as part of its ongoing operations that are triggered by, among other things, breaches of representations, warranties or covenants provided by Prudential Financial or its subsidiaries. These obligations are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, it is not possible to determine the maximum potential amount due under these guarantees. At December 31, 2022, Prudential Financial has no accrued liabilities associated with other financial guarantees or indemnity arrangements.

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PRUDENTIAL FINANCIAL, INC.

Schedule III

Supplementary Insurance Information

As of and for the Year Ended December 31, 2022

(in millions)


Segment	Deferred Policy Acquisition Costs		Future Policy Benefits, Losses, Claims Expenses		Unearned Premiums		Other Policy Claims and Benefits Payable		Premiums, Policy Charges and Fee Income		Net Investment Income		Benefits, Claims, Losses and Settlement Expenses		Amortization of DAC		Other Operating Expenses
PGIM	$	0	$	0	$	0	$	0	$	0	$	94	$	0	$	3	$	2,791
U.S. Businesses:
Institutional Retirement Strategies	74		76,741		0		17,188		15,397		3,643		17,674		16		217
Individual Retirement Strategies	3,875		6,696		0		22,178		1,821		924		776		795		1,610
Retirement Strategies	3,949		83,437		0		39,366		17,218		4,567		18,450		811		1,827
Group Insurance	143		5,437		249		5,875		5,564		482		5,073		5		1,061
Individual Life	7,819		20,038		0		30,710		3,625		2,466		5,545		399		2,008
Assurance IQ	0		0		0		0		0		3		0		0		1,540
Total U.S. Businesses	11,911		108,912		249		75,951		26,407		7,518		29,068		1,215		6,436
International Businesses	7,800		121,068		77		46,896		14,987		4,970		13,664		1,255		2,539
Corporate and Other	(343)		9,712		1		8,225		500		1,479		597		(63)		1,332
Total PFI excluding Closed Block division	19,368		239,692		327		131,072		41,894		14,061		43,329		2,410		13,098
Closed Block division	169		44,433		0		5,224		1,699		1,976		2,672		19		298
Total	$	19,537	$	284,125	$	327	$	136,296	$	43,593	$	16,037	$	46,001	$	2,429	$	13,396

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PRUDENTIAL FINANCIAL, INC.

Schedule III

Supplementary Insurance Information

As of and for the Year Ended December 31, 2021

(in millions)


Segment	Deferred Policy Acquisition Costs		Future Policy Benefits, Losses, Claims Expenses		Unearned Premiums		Other Policy Claims and Benefits Payable		Premiums, Policy Charges and Fee Income		Net Investment Income		Benefits, Claims, Losses and Settlement Expenses		Amortization of DAC		Other Operating Expenses
PGIM	$	0	$	0	$	0	$	0	$	0	$	157	$	0	$	6	$	2,772
U.S. Businesses:
Institutional Retirement Strategies	43		70,105		0		16,601		10,830		3,946		12,899		14		219
Individual Retirement Strategies(1)	3,627		11,040		0		7,028		2,489		929		561		600		1,811
Retirement Strategies	3,670		81,145		0		23,629		13,319		4,875		13,460		614		2,030
Group Insurance	146		5,532		254		6,306		5,580		513		5,654		5		1,013
Individual Life	6,898		21,508		0		30,056		3,255		2,533		3,863		352		1,979
Assurance IQ	0		0		0		0		0		2		0		0		1,799
Total U.S. Businesses	10,714		108,185		254		59,991		22,154		7,923		22,977		971		6,821
International Businesses	7,658		127,574		87		49,545		15,980		5,400		15,014		1,149		2,725
Corporate and Other(2)	(368)		9,087		1		8,448		848		2,307		1,348		(50)		2,013
Total PFI excluding Closed Block division	18,004		244,846		342		117,984		38,982		15,787		39,339		2,076		14,331
Closed Block division	188		45,596		0		13,380		1,789		2,500		5,475		21		311
Total	$	18,192	$	290,442	$	342	$	131,364	$	40,771	$	18,287	$	44,814	$	2,097	$	14,642

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PRUDENTIAL FINANCIAL, INC.

Schedule III

Supplementary Insurance Information

As of and for the Year Ended December 31, 2020

(in millions)


Segment	Deferred Policy Acquisition Costs		Future Policy Benefits, Losses, Claims Expenses		Unearned Premiums		Other Policy Claims and Benefits Payable		Premiums, Policy Charges and Fee Income		Net Investment Income		Benefits, Claims, Losses and Settlement Expenses		Amortization of DAC		Other Operating Expenses
PGIM	$	0	$	0	$	0	$	0	$	0	$	304	$	0	$	8	$	2,637
U.S. Businesses:
Institutional Retirement Strategies(3)	39		68,764		0		18,806		6,297		3,470		8,429		8		228
Individual Retirement Strategies	4,689		21,325		0		12,383		2,399		898		664		481		1,771
Retirement Strategies	4,728		90,089		0		31,189		8,696		4,368		9,093		489		1,999
Group Insurance	149		5,176		246		7,470		5,171		516		4,870		8		924
Individual Life	6,196		21,062		0		29,099		3,347		2,279		4,261		406		2,259
Assurance IQ	0		0		0		0		0		2		0		0		533
Total U.S. Businesses	11,073		116,327		246		67,758		17,214		7,165		18,224		903		5,715
International Businesses	7,668		128,682		94		51,476		16,155		4,973		14,676		1,239		2,809
Corporate and Other(3)	77		14,231		1		37,677		1,818		2,728		3,889		45		2,421
Total PFI excluding Closed Block division	18,818		259,240		341		156,911		35,187		15,170		36,789		2,195		13,582
Closed Block division	209		46,762		0		14,295		1,982		2,240		4,433		26		331
Total	$	19,027	$	306,002	$	341	$	171,206	$	37,169	$	17,410	$	41,222	$	2,221	$	13,913

(1)Includes reclassification of “Assets held-for sale” for Deferred Policy Acquisition Costs of $(1,097) million and “Liabilities held-for-sale” for Future Policy Benefits, Losses, Claims, Expenses of $(4,505) million, and Other Policy Claims and Benefits Payable of $(11,750) million. See Note 1 for details of the assets and liabilities classified as “held-for-sale” as of December 31, 2021. The sale was completed in the second quarter of 2022.

(2)Includes reclassification of “Assets held-for sale” for Deferred Policy Acquisition Costs of $(100) million and “Liabilities held-for-sale” for Future Policy Benefits, Losses, Claims, Expenses of $(157) million, and Other Policy Claims and Benefits Payable of $(28,164) million. See Note 1 for details of the assets and liabilities classified as “held-for-sale” as of December 31, 2021. The sale was completed in the second quarter of 2022.

(3)Effective third quarter of 2021, the company is reporting the assets and liabilities of the Full Service Retirement business as "held-for-sale" and has transferred the results of this business to divested and Run-off Businesses within Corporate and Other operations.

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PRUDENTIAL FINANCIAL, INC.

Schedule IV

Reinsurance

As of and For the Years Ended December 31, 2022, 2021 and 2020

($ in millions)


	Gross Amount		Ceded to Other Companies		Assumed from Other Companies		Net Amount		Percentage of Amount Assumed to Net
2022
Life Insurance Face Amount In Force	$	4,133,602	$	858,957	$	178,286	$	3,452,931	5.2	%
Premiums:
Life Insurance	$	33,367	$	2,216	$	4,129	$	35,280	11.7	%
Accident and Health Insurance	2,826		87		0		2,739		0.0
Total Premiums	$	36,193	$	2,303	$	4,129	$	38,019	10.9	%
2021
Life Insurance Face Amount In Force	$	4,067,801	$	835,774	$	177,089	$	3,409,116	5.2	%
Premiums:
Life Insurance	$	28,637	$	2,289	$	5,581	$	31,929	17.5	%
Accident and Health Insurance	2,986		88		0		2,898		0.0
Total Premiums	$	31,623	$	2,377	$	5,581	$	34,827	16.0	%
2020
Life Insurance Face Amount In Force	$	4,015,943	$	887,028	$	180,343	$	3,309,258	5.4	%
Premiums:
Life Insurance	$	26,197	$	2,199	$	4,336	$	28,334	15.3	%
Accident and Health Insurance	2,894		88		0		2,806		0.0
Total Premiums	$	29,091	$	2,287	$	4,336	$	31,140	13.9	%

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