Tokyo Investor Day

KEY MITIGANTS FOR INTEREST RATE EXPOSURE • Interest rates have been low in Japan for many years 8% 7% 10 Year JGB 10 Year UST 6% 5% 4% 3% 2% 1% 0% -1% 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 (1) Key Mitigants • • Low portfolio turnover Strong asset/liability management, including investment asset classes supported by PGIM skills Emphasis on protection products - stable earnings from mortality and expense margins ⚫ Pivot to greater emphasis on U.S. dollar products Reprice new business when appropriate to maintain margins Fixed annuity products designed to mitigate interest rate risk (i.e., bi-weekly repricing for new business, market value adjustments) 1) Through July 31. Prudential Tokyo Investor Day 9.15.2016 LO 5

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