Prudential Financial (PRU) announced its intent to exit certain Emerging Markets businesses previously reported inside International Businesses. Effective in the third quarter of 2026, the segment was renamed Japan Businesses and the operating results of certain businesses, including Brazil and Mexico operations, were reflected in Other Divested and Run-off Businesses in Corporate and Other.

The restatement also moves the company’s indirect 40% stake in AFP Habitat into Retirement. Second-quarter results were presented on the new footing.

On the restated second-quarter basis, net income attributable to Prudential Financial was $985 million, or $2.80 per diluted share, versus $597 million, or $1.68 per diluted share, in the first quarter. After-tax adjusted operating income on the same restated basis was $1.320 billion, or $3.75 per diluted share, up from the restated first-quarter $1.204 billion, or $3.40 per diluted share. Operating return on average equity based on adjusted operating income was 15.1%.

Total adjusted operating income before income taxes was $1.651 billion, up from $1.510 billion. PGIM, the global investment manager, posted $294 million of pre-tax adjusted operating income, up from $190 million. U.S. Businesses contributed $998 million. Corporate and Other’s pre-tax adjusted operating loss narrowed to $335 million from $347 million.

On the restated basis, Japan Businesses generated $4.041 billion of total revenues and $694 million of pre-tax adjusted operating income. Emerging Markets excluding AFP Habitat, as previously reported within former International Businesses, posted $608 million of revenues and $120 million of pre-tax adjusted operating income. The impact of Prudential’s indirect 40% investment in AFP Habitat, reclassified to Retirement, was $42 million of revenues and $41 million of pre-tax adjusted operating income.

Total revenues in the supplement’s Combined Statements of Operations were $13.555 billion. That presentation excludes realized investment gains and losses and related charges and adjustments, investment gains and losses on assets supporting experience-rated contractholder liabilities, changes in market risk benefits net of related hedging gains and losses, Divested and Run-off Businesses revenues, and market experience updates. It includes equity in earnings of joint ventures and other operating entities outside Divested and Run-off Businesses. Premiums were $5.910 billion. Net investment income was $4.984 billion. Asset management fees, commissions and other income were $1.522 billion. The change in estimates of liability for future policy benefits was $360 million. The pre-tax reconciling item for realized investment losses, net, and related charges and adjustments was negative $654 million. The Other Divested and Run-off Businesses pre-tax reconciling item was positive $293 million.

Assets under management were $1.642 trillion at June 30. PGIM AUM was $1.491 trillion, with retail third-party AUM at $282.3 billion. U.S. Businesses AUM was $122.1 billion. Japan Businesses AUM was $17.2 billion.

GAAP book value per diluted share was $90.50. Adjusted book value per diluted share was $100.91. Capital returned totaled $743 million, including $250 million of share repurchases and $493 million of dividends.

Following the August 2026 announcement of the intent to exit certain Emerging Markets businesses, the reporting changes took effect in the third quarter, with the operating results of certain businesses, including Brazil and Mexico operations, reflected in Other Divested and Run-off Businesses and the former International Businesses segment renamed Japan Businesses.