Segment Information (Tables)

12 Months Ended

Dec. 31, 2021

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

The following table sets forth the significant components of “Realized investment gains (losses), net” that are included in adjusted operating income and, as a result, are reflected as adjustments to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income:


	Year Ended December 31,
	2021		2020(1)		2019(1)
	(in millions)
Net gains (losses) from(2):
Terminated hedges of foreign currency earnings	$	33	$	72	$	64
Current period yield adjustments	$	526	$	293	$	277
Principal source of earnings	$	96	$	57	$	(37)

__________

(1)Prior period amounts have been updated to conform to current period presentation.

(2)In addition to the items in the table above, “Realized investment gains (losses), net, and related charges and adjustments” also includes an adjustment to reflect “Realized investment gains (losses), net” related to Divested and Run-off Businesses. See “Divested and Run-off Businesses” discussed below.

The following table sets forth certain other items excluded from adjusted operating income and reflected as an adjustment to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income:


	Year Ended December 31,
	2021		2020(1)		2019(1)
	(in millions)
Net gains (losses) from(2):
Investments carried at fair value through net income	$	(123)	$	149	$	488
Foreign currency exchange movements	$	22	$	(14)	$	30
Other activities	$	(33)	$	(39)	$	(30)

__________

(1)Prior period amounts have been updated to conform to current period presentation.

(2)Adjusted operating income excludes net investment gains (losses) on assets supporting experience-rated contractholder liabilities, related derivatives, and commercial mortgage and other loans. The activity for derivatives and commercial mortgage and other loans that support these experience-rated products are reported in “Realized investment gains (losses), net” and excluded from adjusted operating income.

The table below reconciles adjusted operating income before income taxes to income before income taxes and equity in earnings of operating joint ventures:


	Year ended December 31,
	2021		2020(1)		2019(1)
	(in millions)
Adjusted operating income before income taxes by segment:
PGIM	$	1,643	$	1,262	$	998
U.S. Businesses:
Retirement	2,178		1,385		1,238
Group Insurance	(455)		(16)		285
Individual Annuities(2)	1,901		1,470		1,843
Individual Life	393		(48)		87
Assurance IQ(3)	(142)		(88)		(9)
Total U.S. Businesses	3,875		2,703		3,444
International Businesses	3,390		2,952		3,112
Corporate and Other	(1,607)		(1,967)		(1,899)
Total segment adjusted operating income before income taxes	7,301		4,950		5,655
Reconciling Items:
Realized investment gains (losses), net, and related adjustments	1,947		(4,140)		(876)
Charges related to realized investment gains (losses), net	(320)		(160)		(123)
Market experience updates	750		(640)		(449)
Divested and Run-off Businesses:
Closed Block division	140		(24)		36
Other Divested and Run-off Businesses	716		(450)		992
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(41)		90		(103)
Other adjustments(4)	(1,112)		51		(47)
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures	$	9,381	$	(323)	$	5,085

__________

(1)Effective third quarter of 2021, the results of the Full Service Retirement business are excluded from the Retirement segment and are included in Divested and Run-off Businesses. Prior period amounts have been updated to conform to current period presentation. See Note 1 to the Consolidated Financial Statements for additional information.

(2)Individual Annuities segment results reflect DAC as if the Individual Annuities business is a stand-alone operation. The elimination of intersegment costs capitalized in accordance with this policy is included in consolidating adjustments within Corporate and Other operations.

(3)Assurance IQ was acquired by the Company in October 2019. See Note 1 for additional information.

(4)In the fourth quarter of 2021, the Company recognized a goodwill impairment of $1,060 million related to Assurance IQ. See Note 2 and Note 10 for additional information.

Schedule of Segment Reporting Information, by Segment

The tables below present certain financial information for the Company’s segments and its Corporate and Other operations, including assets by segment and revenues, and benefits and expenses by segment on an adjusted operating income basis, and the reconciliation of the segment totals to amounts reported in the Consolidated Financial Statements.


	As of December 31,
	2021		2020
	(in millions)
Assets by segment:
PGIM	$	53,566	$	48,680
U.S. Businesses:
Retirement(1)	114,016		115,237
Group Insurance	43,286		45,601
Individual Annuities(2)	201,273		200,718
Individual Life	118,237		110,953
Assurance IQ	1,788		2,703
Total U.S. Businesses	478,600		475,212
International Businesses	222,736		231,128
Corporate and Other(1)(2)	122,701		123,613
Closed Block division	59,979		62,089
Total assets per Consolidated Statements of Financial Position	$	937,582	$	940,722

__________

(1)Effective third quarter of 2021, the results of the Full Service Retirement business are excluded from the Retirement segment and are included in the Divested and Run-off Businesses in Corporate and Other. Prior period amounts have been updated to conform to current period presentation. See Note 1 for additional information about these dispositions.

(2)Certain assets are classified as “held-for-sale” as of December 31, 2021. See Note 1 for additional information about the pending dispositions.


	Year Ended December 31, 2021
Revenues, and benefits and expenses on an adjusted operating income basis by segment	Total Revenues		Net Investment Income		Total Benefits and Expenses		Policyholders’ Benefits		Interest Credited to Policyholders’ Account Balances		Dividends to Policyholders		Interest Expense		Amortization of DAC
	(in millions)
PGIM	$	4,493	$	157	$	2,850	$	0	$	0	$	0	$	25	$	6
U.S. Businesses:
Retirement	15,298		3,921		13,120		12,525		348		0		14		22
Group Insurance	6,217		538		6,672		5,482		171		0		3		5
Individual Annuities	4,914		925		3,013		281		359		0		18		559
Individual Life	6,897		2,550		6,504		3,219		871		35		752		395
Assurance IQ	558		2		700		0		0		0		11		0
Total U.S. Businesses	33,884		7,936		30,009		21,507		1,749		35		798		981
International Businesses	21,915		5,403		18,525		13,804		799		46		6		1,148
Corporate and Other	(511)		664		1,096		(24)		135		0		645		(55)
Total revenues, and benefits and expenses on an adjusted operating income basis	59,781		14,160		52,480		35,287		2,683		81		1,474		2,080
Reconciling items:
Realized investment gains (losses), net, and related adjustments	2,313		(40)		366		0		366		0		0		0
Charges related to realized investment gains (losses), net	(248)		0		72		(165)		84		0		0		153
Market experience updates	335		0		(415)		(200)		(45)		0		0		(163)
Divested and Run-off Businesses:
Closed Block division	5,947		2,500		5,807		2,557		124		2,794		0		21
Other Divested and Run-off Businesses	2,903		1,667		2,187		979		270		(1)		4		6
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(97)		0		(56)		0		0		0		0		0
Other adjustments	0		0		1,112		0		0		0		0		0
Total revenue, and benefits and expenses per Consolidated Statements of Operations	$	70,934	$	18,287	$	61,553	$	38,458	$	3,482	$	2,874	$	1,478	$	2,097


	Year Ended December 31, 2020(1)
Revenues, and benefits and expenses on an adjusted operating income basis by segment	Total Revenues		Net Investment Income		Total Benefits and Expenses		Policyholders’ Benefits		Interest Credited to Policyholders’ Account Balances		Dividends to Policyholders		Interest Expense		Amortization of DAC
	(in millions)
PGIM	$	4,153	$	304	$	2,891	$	0	$	0	$	0	$	19	$	8
U.S. Businesses:
Retirement	10,051		3,446		8,666		8,009		410		0		20		16
Group Insurance	5,786		526		5,802		4,664		206		0		3		8
Individual Annuities	4,440		898		2,970		337		337		0		59		524
Individual Life	6,398		2,314		6,446		3,170		848		36		769		367
Assurance IQ	391		2		479		0		0		0		5		0
Total U.S. Businesses	27,066		7,186		24,363		16,180		1,801		36		856		915
International Businesses	21,576		4,982		18,624		13,714		851		40		8		1,204
Corporate and Other	(513)		660		1,454		30		129		0		668		(49)
Total revenues, and benefits and expenses on an adjusted operating income basis	52,282		13,132		47,332		29,924		2,781		76		1,551		2,078
Reconciling items:
Realized investment gains (losses), net, and related adjustments	(4,072)		(39)		68		0		68		0		0		0
Charges related to realized investment gains (losses), net	(134)		0		26		0		(58)		0		0		(115)
Market experience updates	(196)		0		444		261		21		0		0		132
Divested and Run-off Businesses:
Closed Block division	4,766		2,240		4,790		2,757		127		1,549		1		26
Other Divested and Run-off Businesses	4,420		2,077		4,870		2,117		1,599		0		8		100
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(138)		0		(228)		0		0		0		0		0
Other adjustments	105		0		54		0		0		0		0		0
Total revenue, and benefits and expenses per Consolidated Statements of Operations	$	57,033	$	17,410	$	57,356	$	35,059	$	4,538	$	1,625	$	1,560	$	2,221


	Year Ended December 31, 2019(1)
Revenues, and benefits and expenses on an adjusted operating income basis by segment	Total Revenues		Net Investment Income		Total Benefits and Expenses		Policyholders’ Benefits		Interest Credited to Policyholders’ Account Balances		Dividends to Policyholders		Interest Expense		Amortization of DAC
	(in millions)
PGIM	$	3,589	$	200	$	2,591	$	0	$	0	$	0	$	49	$	6
U.S. Businesses:
Retirement	13,003		3,401		11,765		11,060		416		0		40		28
Group Insurance	5,750		624		5,465		4,257		286		0		2		7
Individual Annuities	4,995		856		3,152		435		334		0		122		513
Individual Life	6,115		2,247		6,028		2,778		830		38		774		577
Assurance IQ(2)	101		0		110		0		0		0		1		0
Total U.S. Businesses	29,964		7,128		26,520		18,530		1,866		38		939		1,125
International Businesses	20,936		4,944		17,824		12,925		876		46		25		1,116
Corporate and Other	(557)		701		1,342		36		125		0		518		(46)
Total revenues, and benefits and expenses on an adjusted operating income basis	53,932		12,973		48,277		31,491		2,867		84		1,531		2,201
Reconciling items:
Realized investment gains (losses), net, and related adjustments	(609)		(34)		267		0		267		0		0		0
Charges related to realized investment gains (losses), net	(252)		0		(129)		(136)		(94)		0		0		(182)
Market experience updates	(79)		0		370		191		4		0		0		139
Divested and Run-off Businesses:
Closed Block division	5,642		2,323		5,606		2,907		130		2,187		7		29
Other Divested and Run-off Businesses	6,324		2,323		5,332		2,367		1,706		3		13		145
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(146)		0		(43)		0		0		0		0		0
Other adjustments	(5)		0		42		0		0		0		0		0
Total revenue, and benefits and expenses per Consolidated Statements of Operations	$	64,807	$	17,585	$	59,722	$	36,820	$	4,880	$	2,274	$	1,551	$	2,332

__________

(2)Assurance IQ was acquired by the Company in October 2019. See Note 1 for additional information.

Schedule Of Revenues From Domestic And Foreign Operations

Revenues, calculated in accordance with U.S. GAAP, for the years ended December 31, include the following by geographic location that are 10 percent or more of the Company’s total consolidated revenue:


	2021		2020(1)		2019(1)
	(in millions)
United States	$	45,286	$	30,803	$	38,043
Japan	18,852		20,028		19,771
Other countries	6,796		6,202		6,993
Total PFI consolidated revenue	$	70,934	$	57,033	$	64,807

__________

(1)Prior period amounts have been updated to conform to current period presentation.

Schedule Of Intersegment Revenues

The PGIM segment revenues include intersegment revenues, primarily consisting of asset-based management and administration fees, for the years ended December 31, as follows:


	2021		2020		2019
	(in millions)
PGIM segment intersegment revenues	$	939	$	866	$	777

Schedule of Asset Mgmt and Service Fees

The table below presents asset management and service fees, predominantly related to investment management activities, for the periods indicated:


	2021		2020		2019
	(in millions)
Asset-based management fees	$	4,111	$	3,615	$	3,489
Performance-based incentive fees	147		193		169
Other fees	643		583		581
Total asset management and service fees	$	4,901	$	4,391	$	4,239