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Segment Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
 
Segments
 
The Company’s principal operations consist of PGIM (the Company’s global investment management business), the U.S. Businesses (consisting of the Retirement Strategies, Group Insurance and Individual Life businesses), the International Businesses, the Closed Block division, and the Company’s Corporate and Other operations. The Closed Block division is accounted for as a divested business that is reported separately from the Divested and Run-off Businesses that are included in Corporate and Other operations. Divested and Run-off Businesses consist of businesses that have been, or will be, sold or exited, including businesses that have been placed in wind-down status that do not qualify for “discontinued operations” accounting treatment under U.S. GAAP.

As discussed in Note 1, effective January 1, 2023, AIQ is now included within Corporate and Other operations. Also effective January 1, 2023, Prudential Advisors, which was previously part of the Individual Life segment, is now included within Corporate and Other operations. There are no impacts to the Company's consolidated financial statements from these reporting changes and historical segment results have been updated to conform to the current period presentation.

Adjusted Operating Income
 
The Company analyzes the operating performance of each segment using “adjusted operating income.” Adjusted operating income does not equate to “Income (loss) before income taxes and equity in earnings of operating joint ventures” or “Net income (loss)” as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the Company’s chief operating decision maker to evaluate segment performance and allocate resources, and consistent with authoritative guidance, is the measure of segment performance presented below. Adjusted operating income is calculated by adjusting each segment’s “Income (loss) before income taxes and equity in earnings of operating joint ventures” for the following items:

•Realized investment gains (losses), net, and related adjustments;
•Charges related to realized investment gains (losses), net;
•Change in value of market risk benefits, net of related hedging gains (losses);
•Market experience updates;
•Divested and Run-off Businesses;
•Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests; and
•Other adjustments.
 
These items are important to an understanding of overall results of operations. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and the Company’s definition of adjusted operating income may differ from that used by other companies. The Company, however, believes that the presentation of adjusted operating income as measured for management purposes enhances the understanding of results of operations by highlighting the results from ongoing operations and the underlying profitability factors of its businesses. For additional information regarding these reconciling items, see Note 22 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

As a result of the adoption of ASU 2018-12 in the first quarter of 2023, the Company is required to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value. In order to enhance the understanding of our underlying performance trends, the Company excludes from adjusted operating income “Change in value of market risk benefits, net of related hedging gains (losses)”, which reflects the impact from changes in current market conditions. In addition, “Charges related to realized investment gains (losses)”, no longer includes the current period impact of net realized investment gains (losses) on the amortization of DAC and related balances, and “Market experience updates” no longer includes the immediate impact on DAC and related balances from changes in current market conditions on estimates of profitability. In both cases, the amortization of DAC and related balances is independent of these factors under ASU 2018-12. See Note 2 regarding additional information about the adoption of ASU 2018-12, including market risk benefits and the amortization of DAC and other balances.
Reconciliation of adjusted operating income to net income (loss)

The table below reconciles “Adjusted operating income before income taxes” to “Income (loss) before income taxes and equity in earnings of operating joint ventures”:
 
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2023202220232022
(in millions)
Adjusted operating income before income taxes by segment:
PGIM$211 $219 $541 $613 
U.S. Businesses:
Institutional Retirement Strategies439 268 1,263 1,215 
Individual Retirement Strategies502 387 1,391 2,567 
Retirement Strategies(1)941 655 2,654 3,782 
Group Insurance89 30 253 (31)
Individual Life(1)58 (70)(103)(1,750)
Total U.S. Businesses1,088 615 2,804 2,001 
International Businesses811 748 2,435 2,391 
Corporate and Other(504)(415)(1,516)(1,152)
Total segment adjusted operating income before income taxes1,606 1,167 4,264 3,853 
Reconciling items:
Realized investment gains (losses), net, and related adjustments(2,430)(1,128)(2,965)(4,981)
Charges related to realized investment gains (losses), net(61)(115)78 (421)
Change in value of market risk benefits, net of related hedging gains (losses)(251)(58)(160)(1,072)
Market experience updates143 125 188 617 
Divested and Run-off Businesses:
Closed Block division2 (21)(50)22 
Other Divested and Run-off Businesses(46)(53)125 175 
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests(11)(33)(42)(18)
Other adjustments(2)(10)(10)(28)(27)
Income (loss) before income taxes and equity in earnings of operating joint ventures per Unaudited Interim Consolidated Financial Statements$(1,058)$(126)$1,410 $(1,852)
________
(1)The Retirement Strategies and Individual Life segments’ results reflect DAC as if the 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.
(2)Includes components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service period.
Reconciliation of select financial information

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

September 30,
2023		December 31,
2022
(in millions)
Assets by segment:
PGIM$44,250 $48,364 
U.S. Businesses:
Institutional Retirement Strategies107,935 108,565 
Individual Retirement Strategies131,231 130,173 
Retirement Strategies239,166 238,738 
Group Insurance36,451 38,201 
Individual Life108,077 102,445 
Total U.S. Businesses383,694 379,384 
International Businesses177,597 186,791 
Corporate and Other26,985 23,556 
Closed Block division48,728 50,934 
Total assets per Unaudited Interim Consolidated Financial Statements$681,254 $689,029 
Three Months Ended September 30, 2023
Revenues, and benefits and expenses on an adjusted operating income basis by segmentTotal RevenuesNet
Investment
Income		Total Benefits and ExpensesPolicyholders’
Benefits		Interest
Credited to
Policyholders’
Account
Balances		Dividends to
Policyholders		Interest
Expense		Amortization
of DAC
(in millions)
PGIM$976 $42 $765 $0 $0 $0 $28 $0 
U.S. Businesses:
Institutional Retirement Strategies221 1,098 (218)(438)146 0 (6)3 
Individual Retirement Strategies1,153 393 651 21 124 0 20 86 
Retirement Strategies1,374 1,491 433 (417)270 0 14 89 
Group Insurance1,576 130 1,487 1,179 39 0 1 1 
Individual Life1,589 734 1,531 831 231 8 211 114 
Total U.S. Businesses4,539 2,355 3,451 1,593 540 8 226 204 
International Businesses4,566 1,316 3,755 2,742 239 9 3 156 
Corporate and Other(1)45 180 549 (4)25 0 165 (9)
Total revenues, and benefits and expenses on an adjusted operating income basis10,126 3,893 8,520 4,331 804 17 422 351 
Reconciling items:
Realized investment gains (losses), net, and related adjustments(2,408)(5)22 19 3 0 0 0 
Charges related to realized investment gains (losses), net12 0 73 72 (8)0 0 7 
Change in value of market risk benefits, net of related hedging gains (losses)(251)0 0 0 0 0 0 0 
Market experience updates39 0 (104)4 0 0 0 0 
Divested and Run-off Businesses:
Closed Block division615 511 613 535 30 (20)(1)3 
Other Divested and Run-off Businesses241 172 287 202 43 0 0 0 
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests(22)0 (11)0 0 0 0 0 
Other adjustments0 0 10 0 0 0 0 0 
Total revenue, and benefits and expenses per Consolidated Statements of Operations$8,352 $4,571 $9,410 $5,163 $872 $(3)$421 $361 
Three Months Ended September 30, 2022
Revenues, and benefits and expenses on an adjusted operating income basis by segmentTotal RevenuesNet
Investment
Income		Total Benefits and ExpensesPolicyholders’
Benefits		Interest
Credited to
Policyholders’
Account
Balances		Dividends to
Policyholders		Interest
Expense		Amortization
of DAC
(in millions)
PGIM$907 $56 $688 $0 $0 $0 $14 $1 
U.S. Businesses:
Institutional Retirement Strategies11,468 824 11,200 11,028 100 0 6 2 
Individual Retirement Strategies971 204 584 14 43 0 (16)98 
Retirement Strategies12,439 1,028 11,784 11,042 143 0 (10)100 
Group Insurance1,525 121 1,495 1,196 37 0 1 2 
Individual Life1,457 580 1,527 774 233 8 206 111 
Total U.S. Businesses15,421 1,729 14,806 13,012 413 8 197 213 
International Businesses4,618 1,112 3,870 2,896 180 9 11 150 
Corporate and Other(1)134 150 549 0 35 0 185 (9)
Total revenues, and benefits and expenses on an adjusted operating income basis21,080 3,047 19,913 15,908 628 17 407 355 
Reconciling items:
Realized investment gains (losses), net, and related adjustments(1,136)(4)(8)15 (23)0 0 0 
Charges related to realized investment gains (losses), net33 0 148 139 3 0 0 6 
Change in value of market risk benefits, net of related hedging gains (losses)(58)0 0 0 0 0 0 0 
Market experience updates26 0 (99)(2)0 0 0 0 
Divested and Run-off Businesses:
Closed Block division710 434 731 549 30 72 4 3 
Other Divested and Run-off Businesses(427)154 (374)(457)53 1 (1)(1)
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests(27)0 6 0 0 0 0 0 
Other adjustments0 0 10 0 0 0 0 0 
Total revenue, and benefits and expenses per Consolidated Statements of Operations$20,201 $3,631 $20,327 $16,152 $691 $90 $410 $363 
Nine Months Ended September 30, 2023
Revenues, and benefits and expenses on an adjusted operating income basis by segmentTotal RevenuesNet
Investment
Income		Total Benefits and ExpensesPolicyholders’
Benefits		Interest
Credited to
Policyholders’
Account
Balances		Dividends to
Policyholders		Interest
Expense		Amortization
of DAC
(in millions)
PGIM$2,723 $189 $2,182 $0 $0 $0 $84 $1 
U.S. Businesses:
Institutional Retirement Strategies7,847 3,174 6,584 6,175 415 0 0 13 
Individual Retirement Strategies3,367 1,055 1,976 103 350 0 53 262 
Retirement Strategies11,214 4,229 8,560 6,278 765 0 53 275 
Group Insurance4,738 384 4,485 3,537 124 0 7 4 
Individual Life4,680 2,112 4,783 2,478 681 26 666 342 
Total U.S. Businesses20,632 6,725 17,828 12,293 1,570 26 726 621 
International Businesses14,304 3,922 11,869 8,539 680 18 18 466 
Corporate and Other(1)215 542 1,731 (9)90 0 496 (27)
Total revenues, and benefits and expenses on an adjusted operating income basis37,874 11,378 33,610 20,823 2,340 44 1,324 1,061 
Reconciling items:
Realized investment gains (losses), net, and related adjustments(2,482)(14)483 65 418 0 0 0 
Charges related to realized investment gains (losses), net95 0 17 (48)10 0 0 21 
Change in value of market risk benefits, net of related hedging gains (losses)(160)0 0 0 0 0 0 0 
Market experience updates58 0 (130)7 0 0 0 0 
Divested and Run-off Businesses:
Closed Block division2,541 1,491 2,591 1,716 89 574 0 10 
Other Divested and Run-off Businesses1,020 512 895 565 145 1 (3)0 
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests(51)0 (9)0 0 0 0 0 
Other adjustments0 0 28 0 0 0 0 0 
Total revenue, and benefits and expenses per Consolidated Statements of Operations$38,895 $13,367 $37,485 $23,128 $3,002 $619 $1,321 $1,092 
Nine Months Ended September 30, 2022
Revenues, and benefits and expenses on an adjusted operating income basis by segmentTotal RevenuesNet
Investment
Income		Total Benefits and ExpensesPolicyholders’
Benefits		Interest
Credited to
Policyholders’
Account
Balances		Dividends to
Policyholders		Interest
Expense		Amortization
of DAC
(in millions)
PGIM$2,662 $38 $2,049 $0 $0 $0 $30 $3 
U.S. Businesses:
Institutional Retirement Strategies16,637 2,684 15,422 15,516 255 0 8 8 
Individual Retirement Strategies4,493 644 1,926 105 221 0 5 284 
Retirement Strategies21,130 3,328 17,348 15,621 476 0 13 292 
Group Insurance4,560 362 4,591 3,693 112 0 3 1 
Individual Life4,301 1,838 6,051 2,503 691 25 593 333 
Total U.S. Businesses29,991 5,528 27,990 21,817 1,279 25 609 626 
International Businesses14,551 3,695 12,160 9,148 545 37 19 455 
Corporate and Other(1)135 440 1,287 (4)103 0 514 (31)
Total revenues, and benefits and expenses on an adjusted operating income basis47,339 9,701 43,486 30,961 1,927 62 1,172 1,053 
Reconciling items:
Realized investment gains (losses), net, and related adjustments(5,077)(18)(96)74 (170)0 0 0 
Charges related to realized investment gains (losses), net43 0 464 261 34 0 0 28 
Change in value of market risk benefits, net of related hedging gains (losses)(1,072)0 0 0 0 0 0 0 
Market experience updates139 0 (478)(11)0 0 0 1 
Divested and Run-off Businesses:
Closed Block division2,204 1,508 2,182 1,810 91 55 4 10 
Other Divested and Run-off Businesses(149)736 (324)(210)(487)1 0 0 
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests21 0 39 0 0 0 0 0 
Other adjustments0 0 27 0 0 0 0 0 
Total revenue, and benefits and expenses per Consolidated Statements of Operations$43,448 $11,927 $45,300 $32,885 $1,395 $118 $1,176 $1,092 
________
(1)Corporate and Other operations, through AIQ and Prudential Advisors, generates fee revenues from the sale and distribution of certain insurance, annuity and investment products offered by Prudential and third-parties.

Intersegment revenues

Management has determined the intersegment revenues with reference to market rates. Intersegment revenues are eliminated in consolidation in Corporate and Other operations. The PGIM segment revenues include intersegment revenues, primarily consisting of asset-based management and administration fees, as follows: 

 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2023202220232022
 (in millions)
PGIM segment intersegment revenues$201 $199 $604 $631 
 
Segments may also enter into internal derivative contracts with other segments. For adjusted operating income, each segment accounts for the internal derivative results consistent with the manner in which that segment accounts for other similar external derivatives.

Asset management and service fees

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

Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
 (in millions)
Asset-based management fees$799 $820 $2,377 $2,642 
Performance-based incentive fees26 15 33 25 
Other fees127 131 377 419 
Total asset management and service fees$952 $966 $2,787 $3,086