PRU 8-K Model Update; Below Trend VII Less Severe Than Our Prior Assumption

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PRU 8-K Model Update; Below Trend VII Less Severe Than Our Prior Assumption

Life Insurance

Life Insurance - Market Overweight

PRUDENTIAL FINANCIAL, INC. (PRU) July 15, 2026

PRU 8-K Model Update; Below Trend VII Less Severe Than Rating:

Our Prior Assumption Peer Perform

Price:

$115.04

The Wolfe Byte Price Target:

PRU filed an 8-K pre-reporting PGIM AUM, PGIM other related revenues, NA

alternative Investment Income, and assumption updates by segment. Our 2Q EPS View PRU Model

View Comp Tableincreases by 9%; our previously below-Street EPS (driven by our harsher view of

VII) is now 6% above the Street. Company Information

52-Week Range $92 - $119

Market Cap. (MM) $39,919

PRU pre-reported its 2Q26 PGIM AUM, PGIM other related revenues (net of related Enterprise Value (MM) $61,240

expense), and alternative investment income returns. We raise our 2Q26E operating Shares Out. (MM) 347.0

Avg. Value Traded (MM) $154.98

EPS to $3.54 from $3.26. SI% of Float 3.4%

PRU expects 2Q26 alternative investment income returns to be $20-40mn below Price Performance

its near-term target. Taking the midpoint of this estimate ($30mn), we now estimate YTD LTM

a ~$0.07 headwind to 2Q26E EPS. Note, we previously were modeling a pre-tax VII PRU 1% 12%

SPX 10% 21%

headwind of $90mn. PRU's 2Q26E VII headwind is less severe than peers, though WRLI 13% 21%

on a 1H26E perspective MET's below trend VII screens better.

Exhibit 1 - Estimates for VII (below)/above trend (pre-tax: $mn) - 2Q26E vs 115

1Q26A 110105

1Q26 2Q26E 100

Ticker $ in mn EPS Impact $ in mn EPS Impact 95

CRBG (72) (0.12) (125) (0.28) 85

MET 118 0.14 (155) (0.19) Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26

EQH (40) (0.11) (55) (0.20) Source:PRUFactSet

LNC 24 0.10 (80) (0.33)

Priced as of 07/15/26