Prudential Financial (PRU) official guidance

Before closing, an update to our corporate and other guidance, we are lowering our expected 2026 loss from $1.65 billion to $1.55 billion, primarily reflecting the benefit of onetime items.

We remain on track to realize our previously communicated $150 million in pretax run rate benefits in 2027.

This work is expected to result in approximately $750 million in pretax run rate benefits by year-end 2028, up from our original target of $150 million in 2027 and drive sustainable improvement in earnings and free cash flow growth.

We continue to expect that the aggregate impact on our full year 2026 pretax adjusted operating income will be approximately $525 million to $575 million.

Our adjusted operating expense ratio improved approximately 100 basis points year-over-year in 2025 to about the midpoint of our current target of 8.5% to 10.5%. We expect to improve that ratio by an additional 150 basis points over the next 3 years.

We expect to improve that ratio by an additional 150 basis points over the next 3 years.

PGIM remains on track for more than 200 basis points of margin expansion in 2026 as it moves towards its 25% to 30% target.

The one thing I would highlight and remind you of is that last quarter we did talk about the fact we took a $135 million restructuring charge that will result in run rate savings of $150 million in 2027.

PGIM is on track to deliver approximately $100 million of gross annual run rate savings and more than 200 basis points of margin expansion in 2026, accelerating progress towards its 25%-30% margin target.

Before closing, I want to take a moment to update you on a re-revision to our tax rate guidance. We are lowering the range for full year 2026 from 23%-24% to 21%-22%.

PGIM is on track to deliver approximately $100 million of gross annual run rate savings and more than 200 basis points of margin expansion in 2026, accelerating progress towards its 25%-30% margin target.

We expect that 2026 will mirror 2025 and that demand should get stronger in the second half.

For 2026, we continue to expect $3 billion-$4 billion of quarterly account value runoff, which translates into approximately $10 million-$15 million of pre-tax adjusted operating income runoff per quarter, compounding to $100 million-$150 million annually prior to market impacts on account values.

For 2026, we continue to expect $3 billion-$4 billion of quarterly account value runoff, which translates into approximately $10 million-$15 million of pre-tax adjusted operating income runoff per quarter, compounding to $100 million-$150 million annually prior to market impacts on account values.

You did hear in my opening remarks, that for the full-year 2026, we expect the impact of 2025 surrenders to be in the range of $50 million.

The first is the impact of the 90-day new sales suspension, which we expect will be in the range of $150 million-$180 million.

For 2026, we continue to expect $3 billion-$4 billion of quarterly account value runoff, which translates into approximately $10 million-$15 million of pre-tax adjusted operating income runoff per quarter, compounding to $100 million-$150 million annually prior to market impacts on account values.

Now, let me tell you what this means for our intermediate EPS growth target of 5%-8%. Recall that our intermediate targets are for the 2024 through 2027 period.

The second component is $70 million of estimated one-time costs, of which roughly 70% relates to customer reimbursement.

In total, what this results in is that POJ sales will be 50% lower in 2026 from normal levels.