PRUDENTIAL FINANCIAL INC - FORM 8-K - EX-99.1 - QUARTERLY FINANCIAL SUPPLEMENT

Attached files

file	filename
8-K - FORM 8-K - PRUDENTIAL FINANCIAL INC	d8k.htm
EX-99.0 - NEWS RELEASE OF PRUDENTIAL FINANCIAL, INC., DATED NOVEMBER 4, 2009 - PRUDENTIAL FINANCIAL INC	dex990.htm
EX-99.2 - INFORMATION ABOUT PRUDENTIAL FINANCIAL, INC.'S INVESTMENTS, AS OF SEPT. 30, 2009 - PRUDENTIAL FINANCIAL INC	dex992.htm

Exhibit 99.1

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

THIRD QUARTER 2009

Reference is made to Prudential Financial, Inc.’s filings with the Securities and Exchange Commission for general information, and consolidated financial information, regarding Prudential Financial, Inc., including its Closed Block Business. All financial information in this document is unaudited.

November 4, 2009

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

CONTENTS


		Page
HIGHLIGHTS
Financial Highlights		1-3
Operations Highlights		4

FINANCIAL SERVICES BUSINESSES
Combined Statements of Operations		5
Combined Balance Sheets		6
Combining Statements of Operations by Division (Quarter)		7
Combining Statements of Operations by Division		8
Combining Balance Sheets by Division		9
Short-Term and Long-Term Debt		10

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION
Combined Statements of Operations		11
Combining Statements of Operations		12
Individual Annuities Sales Results and Account Values		13
Individual Annuities Account Value Activity		14
Individual Annuities Living Benefit Features		15
Individual Annuities Death Benefit Features		16
Retirement Segment Sales Results and Account Values		17
Supplementary Revenue And Assets Under Management Information for Asset Management Segment		18
Supplementary Assets Under Management and Assets Under Administration Information for Asset Management Segment		19

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION
Combined Statements of Operations		20
Combining Statements of Operations		21
Individual Life Annualized New Business Premiums, Account Value Activity, and Face Amount in Force		22
Supplementary Information for Individual Life Insurance		23
Supplementary Information for Group Insurance		24

DEFERRED POLICY ACQUISITION COSTS & DEFERRED SALES INDUCEMENTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE		25

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
Combined Statements of Operations		26
Combining Statements of Operations		27
International Insurance Segment - Supplementary Income Statement Information		28
Sales Results and Supplementary Information		29-30

INVESTMENT PORTFOLIO
Investment Portfolio Composition		31
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		32
Financial Services Businesses Investment Results		33
Financial Services Businesses Investment Results - Japanese Insurance Operations		34
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations		35

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - HISTORICAL DEATH AND LIVING BENEFIT FEATURES AND DEFERRED SALES INDUCEMENTS INFORMATION FOR INDIVIDUAL ANNUITIES		36

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF THIRD QUARTER 2008 AND 2009 ACTUARIAL UPDATES		37

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2008 AND 2009 ACTUARIAL UPDATES		38

KEY DEFINITIONS AND FORMULAS		39-41

RATINGS AND INVESTOR INFORMATION		42

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

This Quarterly Financial Supplement reflects the addition or modification of certain measures for the Individual Annuities segment in order to provide a more meaningful presentation.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date				% Change		2008				2009
2009		2008		% Change		3Q		4Q		1Q		2Q		3Q

					*Financial Services Businesses:*
					Pre-tax adjusted operating income (loss) by division:
1,053		661		59%	U.S. Retirement Solutions and Investment Management Division	(182	)	(975	)	175		564		314
683		708		-4%	U.S. Individual Life and Group Insurance Division	339		78		133		243		307
1,429		1,414		1%	International Insurance and Investments Division	497		1		435		481		513
(529	)	(109	)	-385%	Corporate and other operations	(38	)	(288	)	(166	)	(162	)	(201	)

2,636		2,674		-1%	Total pre-tax adjusted operating income (loss)	616		(1,184	)	577		1,126		933
650		708		-8%	Income taxes, applicable to adjusted operating income	186		(305	)	141		309		200

1,986		1,966		1%	Financial Services Businesses after-tax adjusted operating income (loss)	430		(879	)	436		817		733


					Reconciling items:
(1,777	)	(1,711	)	-4%	Realized investment losses, net, and related charges and adjustments	(547	)	(511	)	(666	)	(877	)	(234	)
1,525		(919	)	266%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(534	)	(815	)	145		686		694
(850	)	682		-225%	Change in experience-rated contractholder liabilities due to asset value changes	388		481		(45	)	(347	)	(458	)
(31	)	(276	)	89%	Divested businesses	(219	)	(230	)	(32	)	(24	)	25
(75	)	145		-152%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	213		509		3		14		(92	)

(1,208	)	(2,079	)	42%	Total reconciling items, before income taxes	(699	)	(566	)	(595	)	(548	)	(65	)
(753	)	(724	)	-4%	Income taxes, not applicable to adjusted operating income	(280	)	(159	)	(148	)	(260	)	(345	)

(455	)	(1,355	)	66%	Total reconciling items, after income taxes	(419	)	(407	)	(447	)	(288	)	280

1,531		611		151%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	11		(1,286	)	(11	)	529		1,013
74		(99	)	175%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests	(134	)	(384	)	5		(12	)	81

1,605		512			Income (loss) from continuing operations attributable to Prudential Financial, Inc.	(123	)	(1,670	)	(6	)	517		1,094
(44	)	37			Earnings attributable to noncontrolling interests	5		(1	)	(11	)	17		(50	)

1,561		549		184%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses	(118	)	(1,671	)	(17	)	534		1,044
18		4		350%	Income (loss) from discontinued operations, net of taxes	5		14		1		21		(4	)

1,579		553		186%	Net income (loss) of Financial Services Businesses	(113	)	(1,657	)	(16	)	555		1,040
(44	)	37			Less: Income (loss) attributable to noncontrolling interests	5		(1	)	(11	)	17		(50	)

1,623		516			Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.	(118	)	(1,656	)	(5	)	538		1,090

12.44%		11.93%			Operating Return on Average Equity (based on adjusted operating income)	8.02%		-16.60%		8.89%		15.48%		12.85%

					*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
1,623		516			Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)	(118	)	(1,656	)	(5	)	538		1,090
(364	)	(51	)		Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.	(58	)	74		19		(375	)	(8	)

1,259		465			Consolidated net income (loss) attributable to Prudential Financial, Inc.	(176	)	(1,582	)	14		163		1,082

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date					2008				2009
2009		2008			3Q		4Q		1Q		2Q		3Q

				Earnings per share of Common Stock (diluted) (1):
4.53		4.55		Financial Services Businesses after-tax adjusted operating income (loss)	1.02		(2.04	)	1.05		1.88		1.59

				Reconciling items:
(4.03	)	(3.91	)	Realized investment losses, net, and related charges and adjustments	(1.28	)	(1.21	)	(1.57	)	(2.02	)	(0.50	)
3.46		(2.10	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(1.25	)	(1.93	)	0.34		1.58		1.49
(1.93	)	1.56		Change in experience-rated contractholder liabilities due to asset value changes	0.91		1.14		(0.11	)	(0.80	)	(0.99	)
(0.07	)	(0.63	)	Divested businesses	(0.51	)	(0.55	)	(0.08	)	(0.06	)	0.05
—		0.02		Difference in earnings allocated to participating unvested share-based payment awards	—		—		0.01		0.01		—

(2.57	)	(5.06	)	Total reconciling items, before income taxes	(2.13	)	(2.55	)	(1.41	)	(1.29	)	0.05
(1.72	)	(1.76	)	Income taxes, not applicable to adjusted operating income	(0.84	)	(0.67	)	(0.37	)	(0.61	)	(0.72	)

(0.85	)	(3.30	)	Total reconciling items, after income taxes	(1.29	)	(1.88	)	(1.04	)	(0.68	)	0.77

3.68		1.25		Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.	(0.27	)	(3.92	)	0.01		1.20		2.36
0.04		0.01		Income (loss) from discontinued operations, net of taxes	0.02		0.03		—		0.05		(0.01	)

3.72		1.26		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.	(0.25	)	(3.89	)	0.01		1.25		2.35


438.8		432.6		Weighted average number of outstanding Common shares (basic)	423.8		421.3		422.1		432.9		461.2

440.6		437.1		Weighted average number of outstanding Common shares (diluted)	428.0		423.0		423.2		434.3		464.6

34		36		Direct equity adjustments for earnings per share calculation	10		19		11		11		12

				*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation (2)*
22		12		Financial Services Businesses after-tax adjusted operating income	3		1		4		10		7
18		3		Income from continuing operations (after-tax) of Financial Services Businesses	—		1		—		6		11

(1)

Diluted share count used in the diluted earnings per share calculation for GAAP measures is equal to weighted average basic common shares for the three months ended September 30, 2008 and for the three months ended December 31, 2008 as all potential common shares are anti-dilutive due to the loss from continuing operations available to holders of common stock after direct equity adjustment. Diluted share count used in the diluted earnings per share calculation for non-GAAP measures is equal to the weighted average basic common shares for the three months ended December 31, 2008 as all potential common shares are anti-dilutive due to the adjusted operating loss available to holders of common stock after direct equity adjustment.

(2)	For the three months ended September 30, 2009, includes earnings of $1 million related to interest, net of tax, on exchangeable surplus notes associated with the computation of diluted earnings per share.

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			2008		2009
2009	2008		3Q	4Q	1Q	2Q	3Q

		*Financial Services Businesses Capitalization Data (1):*
		Senior Debt:
		Short-term debt	13,744	10,092	6,651	3,643	2,182
		Long-term debt	14,602	17,022	17,394	17,713	19,491
		Junior Subordinated Long-Term Debt	1,518	1,518	1,518	1,518	1,518

		Attributed Equity:
		Including accumulated other comprehensive income	18,780	14,292	14,349	18,681	23,239
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	21,553	19,899	20,337	22,452	23,919
		Excluding total accumulated other comprehensive income	21,343	19,529	20,238	22,194	23,338

		Total Capitalization:
		Including accumulated other comprehensive income	34,900	32,832	33,261	37,912	44,248
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	37,673	38,439	39,249	41,683	44,928
		Excluding total accumulated other comprehensive income	37,463	38,069	39,150	41,425	44,347

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	43.92	33.69	33.83	40.20	49.71
		Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits	50.40	46.91	47.95	48.32	51.16
		Excluding total accumulated other comprehensive income	49.91	46.04	47.72	47.76	49.92

		Number of diluted shares at end of period	427.6	424.2	424.1	464.7	467.5

		*Common Stock Price Range (based on closing price):*
54.63	91.36	High	86.25	64.80	35.11	46.00	54.63
11.29	56.07	Low	56.07	13.73	11.29	20.50	33.28
49.91	72.00	Close	72.00	30.26	19.02	37.22	49.91

		*Common Stock market capitalization (1)*	30,362	12,749	8,042	17,139	23,024

(1)	As of end of period.

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

OPERATIONS HIGHLIGHTS


Year-to-date			2008		2009
2009	2008		3Q	4Q	1Q	2Q	3Q

		*Assets Under Management and Administration ($ billions) (1) (2):*
		Assets Under Management:
		Managed by U.S. Retirement Solutions and Investment Management Division:
		Asset Management Segment - Investment Management & Advisory Services
		Institutional customers	170.9	161.2	152.7	163.5	179.9
		Retail customers	75.4	61.6	61.3	70.3	79.1
		General account	175.2	172.6	172.3	175.6	184.9

		Total Investment Management and Advisory Services	421.5	395.4	386.3	409.4	443.9
		Non-proprietary assets under management	97.6	80.5	75.1	89.3	109.4

		Total managed by U.S. Retirement Solutions and Investment Management Division	519.1	475.9	461.4	498.7	553.3
		Managed by U.S. Individual Life and Group Insurance Division	13.3	12.4	11.9	11.2	12.1
		Managed by International Insurance and Investments Division:	69.9	69.9	68.4	69.7	75.5

		Total assets under management	602.3	558.2	541.7	579.6	640.9
		Client assets under administration	112.1	101.1	98.8	106.7	116.3

		Total assets under management and administration	714.4	659.3	640.5	686.3	757.2


		Assets managed or administered for customers outside of the United States at end of period	115.6	112.6	110.4	115.2	127.0

		*Distribution Representatives (1):*
		Prudential Agents	2,482	2,360	2,389	2,421	2,453
		International Life Planners	6,267	6,365	6,397	6,375	6,504
		Gibraltar Life Advisors	6,057	6,330	6,170	6,376	6,060

49	54	*Prudential Agent productivity ($ thousands)*	55	70	41	49	58

(1)	As of end of period.

(2)	At fair market value.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date				% Change		2008				2009
2009		2008		% Change		3Q		4Q		1Q		2Q		3Q

					Revenues (1):
9,942		8,861		12%	Premiums	2,798		2,997		3,261		3,320		3,361
2,193		2,342		-6%	Policy charges and fee income	709		781		734		766		693
6,172		6,331		-3%	Net investment income	2,076		2,099		2,064		2,053		2,055
2,631		2,591		2%	Asset management fees, commissions and other income	770		10		1,945		199		487

20,938		20,125		4%	Total revenues	6,353		5,887		8,004		6,338		6,596


					Benefits and Expenses (1):
9,507		9,066		5%	Insurance and annuity benefits	3,040		3,472		3,464		2,928		3,115
2,642		2,462		7%	Interest credited to policyholders’ account balances	853		881		1,086		725		831
714		833		-14%	Interest expense	287		303		247		239		228
(2,001	)	(1,735	)	-15%	Deferral of acquisition costs	(559	)	(567	)	(578	)	(641	)	(782	)
1,237		891		39%	Amortization of acquisition costs	238		512		1,205		(70	)	102
6,203		5,934		5%	General and administrative expenses	1,878		2,470		2,003		2,031		2,169

18,302		17,451		5%	Total benefits and expenses	5,737		7,071		7,427		5,212		5,663

2,636		2,674		-1%	Adjusted operating income (loss) before income taxes	616		(1,184	)	577		1,126		933


					Reconciling items:
(1,765	)	(1,756	)	-1%	Realized investment losses, net, and related adjustments	(564	)	(511	)	(710	)	(872	)	(183	)
(12	)	45		-127%	Related charges	17		—		44		(5	)	(51	)

(1,777	)	(1,711	)	-4%	Total realized investment losses, net, and related charges and adjustments	(547	)	(511	)	(666	)	(877	)	(234	)

1,525		(919	)	266%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(534	)	(815	)	145		686		694
(850	)	682		-225%	Change in experience-rated contractholder liabilities due to asset value changes	388		481		(45	)	(347	)	(458	)
(31	)	(276	)	89%	Divested businesses	(219	)	(230	)	(32	)	(24	)	25
(75	)	145		-152%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	213		509		3		14		(92	)

(1,208	)	(2,079	)	42%	Total reconciling items, before income taxes	(699	)	(566	)	(595	)	(548	)	(65	)


1,428		595		140%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures	(83	)	(1,750	)	(18	)	578		868
(103	)	(16	)	-544%	Income tax expense (benefit)	(94	)	(464	)	(7	)	49		(145	)

1,531		611		151%	Income (loss) from continuing operations before equity in earnings of operating joint ventures	11		(1,286	)	(11	)	529		1,013

(1)

Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on trading account assets supporting insurance liabilities, and revenues of divested businesses, and include revenues representing equity in earnings of operating joint ventures other than those classified as divested businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes and benefits and expenses of divested businesses and include charges for income attributable to non controlling interests.

Page 5

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	9/30/2008		12/31/2008		3/31/2009		6/30/2009		9/30/2009

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $118,111; $125,753; $123,589; $123,430; $127,490)	114,626		119,153		116,094		119,084		128,459
Fixed maturities, held to maturity, at amortized cost (fair value $3,410; $3,832; $4,629; $4,938; $5,199)	3,481		3,808		4,661		4,935		5,141
Trading account assets supporting insurance liabilities, at fair value	14,392		13,875		13,973		14,766		15,848
Other trading account assets, at fair value	3,240		4,216		4,445		3,550		3,656
Equity securities, available for sale, at fair value (cost $4,634; $4,273; $3,893; $3,380; $3,390)	4,258		3,665		3,425		3,404		3,747
Commercial mortgage and other loans	24,173		24,366		24,069		23,961		23,616
Policy loans	3,822		4,280		4,230		4,413		4,634
Securities purchased under agreements to resell	171		480		—		—		6
Other long-term investments	5,255		5,383		4,247		4,170		4,296
Short-term investments	6,621		4,092		3,458		5,790		6,072

Total investments	180,039		183,318		178,602		184,073		195,475
Cash and cash equivalents	9,907		13,054		12,748		11,798		10,524
Accrued investment income	1,551		1,603		1,610		1,571		1,613
Deferred policy acquisition costs	12,472		13,127		12,223		12,768		13,313
Deferred income taxes, net	—		(533	)	(462	)	—		—
Other assets	25,624		21,962		18,452		19,142		19,964
Separate account assets	165,148		147,095		139,638		151,266		168,128

Total assets	394,741		379,626		362,811		380,618		409,017


Liabilities:
Future policy benefits	62,027		70,221		67,417		69,699		72,774
Policyholders’ account balances	90,871		93,991		95,033		95,680		95,766
Securities sold under agreements to repurchase	4,209		4,288		3,743		3,467		3,650
Cash collateral for loaned securities	2,231		2,684		1,966		2,233		2,573
Income taxes	2,493		364		773		2,213		3,935
Senior short-term debt	13,744		10,092		6,651		3,643		2,182
Senior long-term debt	14,602		17,022		17,394		17,713		19,491
Junior subordinated long-term debt	1,518		1,518		1,518		1,518		1,518
Other liabilities	18,817		17,708		13,753		13,903		15,212
Separate account liabilities	165,148		147,095		139,638		151,266		168,128

Total liabilities	375,660		364,983		347,886		361,335		385,229


Attributed Equity:
Accumulated other comprehensive loss	(2,563	)	(5,237	)	(5,889	)	(3,513	)	(99	)
Other attributed equity	21,343		19,529		20,238		22,194		23,338

Total attributed equity	18,780		14,292		14,349		18,681		23,239

Noncontrolling Interest	301		351		576		602		549

Total Equity	19,081		14,643		14,925		19,283		23,788

Total liabilities and equity	394,741		379,626		362,811		380,618		409,017

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended September 30, 2009
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	3,361		118		1,226		2,015		2
Policy charges and fee income	693		313		297		90		(7	)
Net investment income	2,055		1,064		361		566		64
Asset management fees, commissions and other income	487		321		128		105		(67	)

Total revenues	6,596		1,816		2,012		2,776		(8	)


Benefits and Expenses (1):
Insurance and annuity benefits	3,115		210		1,326		1,572		7
Interest credited to policyholders’ account balances	831		604		126		123		(22	)
Interest expense	228		14		42		1		171
Deferral of acquisition costs	(782	)	(347	)	(143	)	(302	)	10
Amortization of acquisition costs	102		24		(98	)	175		1
General and administrative expenses	2,169		997		452		694		26

Total benefits and expenses	5,663		1,502		1,705		2,263		193


Adjusted operating income (loss) before income taxes	933		314		307		513		(201	)


	Quarter Ended September 30, 2008
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,798		75		1,099		1,627		(3	)
Policy charges and fee income	709		331		313		83		(18	)
Net investment income	2,076		1,068		353		514		141
Asset management fees, commissions and other income	770		517		149		153		(49	)

Total revenues	6,353		1,991		1,914		2,377		71


Benefits and Expenses (1):
Insurance and annuity benefits	3,040		593		1,136		1,279		32
Interest credited to policyholders’ account balances	853		679		119		106		(51	)
Interest expense	287		54		51		1		181
Deferral of acquisition costs	(559	)	(166	)	(121	)	(281	)	9
Amortization of acquisition costs	238		140		(37	)	144		(9	)
General and administrative expenses	1,878		873		427		631		(53	)

Total benefits and expenses	5,737		2,173		1,575		1,880		109


Adjusted operating income (loss) before income taxes	616		(182	)	339		497		(38	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Nine Months Ended September 30, 2009
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	9,942		554		3,572		5,825		(9	)
Policy charges and fee income	2,193		831		1,102		280		(20	)
Net investment income	6,172		3,324		1,064		1,609		175
Asset management fees, commissions and other income	2,631		2,157		293		341		(160	)

Total revenues	20,938		6,866		6,031		8,055		(14	)


Benefits and Expenses (1):
Insurance and annuity benefits	9,507		1,109		3,824		4,538		36
Interest credited to policyholders’ account balances	2,642		2,026		364		352		(100	)
Interest expense	714		55		140		3		516
Deferral of acquisition costs	(2,001	)	(713	)	(404	)	(910	)	26
Amortization of acquisition costs	1,237		551		112		591		(17	)
General and administrative expenses	6,203		2,785		1,312		2,052		54

Total benefits and expenses	18,302		5,813		5,348		6,626		515


Adjusted operating income (loss) before income taxes	2,636		1,053		683		1,429		(529	)


	Nine Months Ended September 30, 2008
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	8,861		445		3,290		5,135		(9	)
Policy charges and fee income	2,342		1,031		1,084		252		(25	)
Net investment income	6,331		3,348		1,039		1,479		465
Asset management fees, commissions and other income	2,591		1,948		332		483		(172	)

Total revenues	20,125		6,772		5,745		7,349		259


Benefits and Expenses (1):
Insurance and annuity benefits	9,066		1,454		3,488		4,052		72
Interest credited to policyholders’ account balances	2,462		1,949		346		307		(140	)
Interest expense	833		171		153		7		502
Deferral of acquisition costs	(1,735	)	(541	)	(360	)	(874	)	40
Amortization of acquisition costs	891		297		165		456		(27	)
General and administrative expenses	5,934		2,781		1,245		1,987		(79	)

Total benefits and expenses	17,451		6,111		5,037		5,935		368


Adjusted operating income (loss) before income taxes	2,674		661		708		1,414		(109	)

(1)

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of September 30, 2009
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Assets:
Total investments	195,475		86,228		27,286		73,142		8,819
Deferred policy acquisition costs	13,313		2,385		4,517		6,563		(152	)
Other assets	32,101		9,412		3,544		11,136		8,009
Separate account assets	168,128		136,267		33,054		436		(1,629	)

Total assets	409,017		234,292		68,401		91,277		15,047


Liabilities:
Future policy benefits	72,774		16,123		8,858		47,388		405
Policyholders’ account balances	95,766		59,234		14,429		24,013		(1,910	)
Debt	23,191		2,424		5,443		595		14,729
Other liabilities	25,370		9,131		2,875		10,864		2,500
Separate account liabilities	168,128		136,267		33,054		436		(1,629	)

Total liabilities	385,229		223,179		64,659		83,296		14,095


Attributed Equity:
Accumulated other comprehensive income (loss)	(99	)	400		139		208		(846	)
Other attributed equity	23,338		10,150		3,603		7,732		1,853

Total attributed equity	23,239		10,550		3,742		7,940		1,007

Noncontrolling Interest	549		563		—		41		(55	)

Total Equity	23,788		11,113		3,742		7,981		952


Total liabilities and equity	409,017		234,292		68,401		91,277		15,047


	As of December 31, 2008
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Assets:
Total investments	183,318		87,244		23,560		65,891		6,623
Deferred policy acquisition costs	13,127		2,683		4,573		6,051		(180	)
Other assets	36,086		9,924		3,028		12,866		10,268
Separate account assets	147,095		115,791		32,277		270		(1,243	)

Total assets	379,626		215,642		63,438		85,078		15,468


Liabilities:
Future policy benefits	70,221		18,251		8,213		43,317		440
Policyholders’ account balances	93,991		62,285		13,527		21,674		(3,495	)
Debt	28,632		4,137		5,448		620		18,427
Other liabilities	25,044		8,039		1,904		12,912		2,189
Separate account liabilities	147,095		115,791		32,277		270		(1,243	)

Total liabilities	364,983		208,503		61,369		78,793		16,318


Attributed Equity:
Accumulated other comprehensive loss	(5,237	)	(2,422	)	(1,278	)	(562	)	(975	)
Other attributed equity	19,529		9,255		3,347		6,808		119

Total attributed equity	14,292		6,833		2,069		6,246		(856	)

Noncontrolling Interest	351		306		—		39		6

Total Equity	14,643		7,139		2,069		6,285		(850	)


Total liabilities and equity	379,626		215,642		63,438		85,078		15,468

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of September 30, 2009					As of December 31, 2008
	Senior debt		Junior Subordinated Long-term Debt			Senior debt		Junior Subordinated Long-term Debt
	Short-term Debt	Long-term Debt	Junior Subordinated Long-term Debt	Total Debt		Short-term Debt	Long-term Debt	Junior Subordinated Long-term Debt	Total Debt
Financial Services Businesses
*Borrowings by use of proceeds:*
Capital Debt	94	6,882	1,518	8,494		925	5,092	1,518	7,535
Investment related	831	9,675	—	10,506		6,245	9,792	—	16,037
Securities business related	1,187	1,400	—	2,587		1,806	1,550	—	3,356
Specified other businesses	70	555	—	625		778	264	—	1,042
Limited recourse and non-recourse borrowing	—	979	—	979		338	324	—	662

Total debt - Financial Services Businesses	2,182	19,491	1,518	23,191		10,092	17,022	1,518	28,632

Ratio of long-term and short-term capital debt to capitalization (1)				22.7	%				23.3	%

Closed Block Business
Investment related	—	—	—	—		443	—	—	443
Limited recourse and non-recourse borrowing	—	1,750	—	1,750		—	1,750	—	1,750

Total debt	—	1,750	—	1,750		443	1,750	—	2,193


	As of September 30, 2009					As of December 31, 2008
	Prudential Financial, Inc.	The Prudential Insurance Co. of America (2)(3)	Other Affiliates	Total		Prudential Financial, Inc.	The Prudential Insurance Co. of America (2)(3)	Other Affiliates	Total
Financial Services Businesses
*Borrowings by sources:*
Capital Debt	6,967	1,336	191	8,494		6,837	462	236	7,535
Investment related	6,102	1,158	3,246	10,506		8,819	3,991	3,227	16,037
Securities business related	1,232	1,321	34	2,587		694	2,430	232	3,356
Specified other businesses	573	52	—	625		290	752	—	1,042
Limited recourse and non-recourse borrowing	—	—	979	979		—	—	662	662

Total debt - Financial Services Businesses	14,874	3,867	4,450	23,191		16,640	7,635	4,357	28,632

(1)	For the purposes of calculating the ratio of capital debt to capitalization, Junior Subordinated Notes are considered 25% debt and 75% equity.

(2)	Includes Prudential Funding, LLC.

(3)	Capital debt at Prudential Insurance Co. of America includes $941 million of Surplus Notes for September 30, 2009 and $444 million for December 31, 2008.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

COMBINED STATEMENTS OF OPERATIONS - U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION

(in millions)


Year-to-date				%		2008				2009
2009		2008		Change		3Q		4Q		1Q		2Q		3Q

					Revenues (1):
554		445		24%	Premiums	75		209		175		261		118
831		1,031		-19%	Policy charges and fee income	331		256		249		269		313
3,324		3,348		-1%	Net investment income	1,068		1,101		1,146		1,114		1,064
2,157		1,948		11%	Asset management fees, commissions and other income	517		191		1,793		43		321

6,866		6,772		1%	Total revenues	1,991		1,757		3,363		1,687		1,816


					Benefits and Expenses (1):
1,109		1,454		-24%	Insurance and annuity benefits	593		814		642		257		210
2,026		1,949		4%	Interest credited to policyholders’ account balances	679		707		895		527		604
55		171		-68%	Interest expense	54		54		25		16		14
(713	)	(541	)	-32%	Deferral of acquisition costs	(166	)	(148	)	(149	)	(217	)	(347	)
551		297		86%	Amortization of acquisition costs	140		126		878		(351	)	24
2,785		2,781		0%	General and administrative expenses	873		1,179		897		891		997

5,813		6,111		-5%	Total benefits and expenses	2,173		2,732		3,188		1,123		1,502

1,053		661		59%	Adjusted operating income (loss) before income taxes	(182	)	(975	)	175		564		314

(1)

Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests.

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

COMBINING STATEMENTS OF OPERATIONS - U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION

(in millions)


	Nine Months Ended September 30, 2009								Quarter Ended September 30, 2009
	Total U.S. Retirement Solutions & Investment Management Division		Individual Annuities		Retirement		Asset Management		Total U.S. Retirement Solutions & Investment Management Division		Individual Annuities		Retirement		Asset Management
Revenues (1):
Premiums	554		61		493		—		118		28		90		—
Policy charges and fee income	831		685		146		—		313		265		48		—
Net investment income	3,324		761		2,507		56		1,064		236		815		13
Asset management fees, commissions and other income	2,157		924		393		840		321		(105	)	148		278

Total revenues	6,866		2,431		3,539		896		1,816		424		1,101		291


Benefits and Expenses (1):
Insurance and annuity benefits	1,109		40		1,069		—		210		(85	)	295		—
Interest credited to policyholders’ account balances	2,026		586		1,440		—		604		136		468		—
Interest expense	55		9		24		22		14		2		6		6
Deferral of acquisition costs	(713	)	(656	)	(42	)	(15	)	(347	)	(327	)	(13	)	(7	)
Amortization of acquisition costs	551		518		20		13		24		11		8		5
General and administrative expenses (2)	2,785		1,319		651		815		997		521		218		258

Total benefits and expenses	5,813		1,816		3,162		835		1,502		258		982		262

Adjusted operating income before income taxes	1,053		615		377		61		314		166		119		29


	Nine Months Ended September 30, 2008								Quarter Ended September 30, 2008
	Total U.S. Retirement Solutions & Investment Management Division		Individual Annuities		Retirement		Asset Management		Total U.S. Retirement Solutions & Investment Management Division		Individual Annuities		Retirement		Asset Management
Revenues (1):
Premiums	445		50		395		—		75		18		57		—
Policy charges and fee income	1,031		897		134		—		331		286		45		—
Net investment income	3,348		535		2,661		152		1,068		200		883		(15	)
Asset management fees, commissions and other income	1,948		241		402		1,305		517		24		133		360

Total revenues	6,772		1,723		3,592		1,457		1,991		528		1,118		345


Benefits and Expenses (1):
Insurance and annuity benefits	1,454		473		981		—		593		344		249		—
Interest credited to policyholders’ account balances	1,949		355		1,594		—		679		141		538		—
Interest expense	171		44		68		59		54		15		19		20
Deferral of acquisition costs	(541	)	(467	)	(62	)	(12	)	(166	)	(149	)	(14	)	(3	)
Amortization of acquisition costs	297		260		22		15		140		121		13		6
General and administrative expenses (2)	2,781		1,096		591		1,094		873		363		180		330

Total benefits and expenses	6,111		1,761		3,194		1,156		2,173		835		985		353

Adjusted operating income (loss) before income taxes	661		(38	)	398		301		(182	)	(307	)	133		(8	)

(1)

(2)

General and administrative expenses for Individual Annuities include $147 million for the nine months ended September 30, 2009, $99 million for the nine months ended September 30, 2008, $1 million for the quarter ended September 30, 2009 and $45 million for the quarter ended September 30, 2008 for the amortization, net of interest, of value of business acquired (VOBA).

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES SALES RESULTS AND ACCOUNT VALUES

(in millions)


Year-to-date					2008				2009
2009		2008			3Q		4Q		1Q		2Q		3Q

				SALES AND ACCOUNT VALUES:

				Variable Annuities:
60,007		80,330		Beginning total account value	74,707		67,968		60,007		57,942		65,099
11,315		8,076		Sales	2,507		2,132		2,108		3,378		5,829
(4,202	)	(6,346	)	Surrenders and withdrawals	(1,988	)	(1,654	)	(1,443	)	(1,315	)	(1,444	)

7,113		1,730		Net sales	519		478		665		2,063		4,385
(731	)	(815	)	Benefit payments	(259	)	(242	)	(256	)	(236	)	(239	)

6,382		915		Net flows	260		236		409		1,827		4,146
9,947		(12,367	)	Change in market value, interest credited, and other	(6,712	)	(7,986	)	(2,269	)	5,566		6,650
(725	)	(910	)	Policy charges	(287	)	(211	)	(205	)	(236	)	(284	)

75,611		67,968		Ending total account value	67,968		60,007		57,942		65,099		75,611


				Fixed Annuities:
3,295		3,488		Beginning total account value	3,394		3,349		3,295		3,263		3,221
142		74		Sales	33		47		55		41		46
(201	)	(185	)	Surrenders and withdrawals	(71	)	(91	)	(77	)	(75	)	(49	)

(59	)	(111	)	Net redemptions	(38	)	(44	)	(22	)	(34	)	(3	)
(121	)	(120	)	Benefit payments	(37	)	(40	)	(43	)	(37	)	(41	)

(180	)	(231	)	Net flows	(75	)	(84	)	(65	)	(71	)	(44	)
99		95		Interest credited and other	32		32		33		30		36
(1	)	(3	)	Policy charges	(2	)	(2	)	—		(1	)	—

3,213		3,349		Ending total account value	3,349		3,295		3,263		3,221		3,213


				SALES BY DISTRIBUTION CHANNEL:

				Variable and Fixed Annuities (1):
1,731		1,908		Insurance Agents	589		540		465		531		735
2,388		987		Wirehouses	340		264		344		685		1,359
7,338		5,255		Independent Financial Planners (2)	1,611		1,375		1,354		2,203		3,781

11,457		8,150		Total	2,540		2,179		2,163		3,419		5,875

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


Year-to-date					2008				2009
2009		2008			3Q		4Q		1Q		2Q		3Q

				INDIVIDUAL ANNUITIES:

				Account Values in General Account (1):
18,110		8,644		Beginning balance	12,282		17,051		18,110		18,208		16,355
917		194		Premiums and deposits	70		81		83		113		721
(1,153	)	(801	)	Surrenders and withdrawals	(296	)	(433	)	(386	)	(356	)	(411	)

(236	)	(607	)	Net sales (redemptions)	(226	)	(352	)	(303	)	(243	)	310
(264	)	(270	)	Benefit payments	(87	)	(92	)	(93	)	(83	)	(88	)

(500	)	(877	)	Net flows	(313	)	(444	)	(396	)	(326	)	222
426		325		Interest credited and other	121		159		156		129		141
(2,727	)	8,962		Net transfers (to) from separate account	4,963		1,346		338		(1,655	)	(1,410	)
(1	)	(3	)	Policy charges	(2	)	(2	)	—		(1	)	—

15,308		17,051		Ending balance	17,051		18,110		18,208		16,355		15,308


				Account Values in Separate Account:
45,192		75,174		Beginning balance	65,819		54,266		45,192		42,997		51,965
10,540		7,956		Premiums and deposits	2,470		2,098		2,080		3,306		5,154
(3,250	)	(5,730	)	Surrenders and withdrawals	(1,763	)	(1,312	)	(1,134	)	(1,034	)	(1,082	)

7,290		2,226		Net sales	707		786		946		2,272		4,072
(588	)	(665	)	Benefit payments	(209	)	(190	)	(206	)	(190	)	(192	)

6,702		1,561		Net flows	498		596		740		2,082		3,880
9,620		(12,597	)	Change in market value, interest credited and other	(6,801	)	(8,113	)	(2,392	)	5,467		6,545
2,727		(8,962	)	Net transfers (to) from general account	(4,963	)	(1,346	)	(338	)	1,655		1,410
(725	)	(910	)	Policy charges	(287	)	(211	)	(205	)	(236	)	(284	)

63,516		54,266		Ending balance	54,266		45,192		42,997		51,965		63,516

(1)

Premiums and deposits, and surrenders and withdrawals, are classified within the general account and separate account for purposes of this presentation based on the allocation of customer funds. For example, premiums allocated by customers to separate account investments at the time of sale, while remitted through the company’s general account, are shown as separate account premium in this display, rather than as general account premium and transfers to the separate account.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES LIVING BENEFIT FEATURES

(in millions)


	2008		2009
	3Q	4Q	1Q	2Q	3Q

LIVING BENEFIT FEATURES ACCOUNT VALUE AND NET AMOUNT AT RISK (1):

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits	10,221	9,891	9,793	9,951	10,023
Guaranteed minimum withdrawal benefits	1,646	1,326	1,198	1,312	1,420
Guaranteed minimum income benefits	5,149	4,114	3,750	4,184	4,613
Guaranteed minimum withdrawal & income benefits	18,153	17,723	18,470	23,249	31,416

Total	35,169	33,054	33,211	38,696	47,472


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature	16,445	17,653	19,124	22,935	30,116
Account Values without Auto-Rebalancing Feature	18,724	15,401	14,087	15,761	17,356

Total	35,169	33,054	33,211	38,696	47,472


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature	1,142	1,328	1,514	1,250	1,129
Net Amount at Risk without Auto-Rebalancing Feature	2,545	4,973	5,917	4,286	2,895

Total	3,687	6,301	7,431	5,536	4,024

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES DEATH BENEFIT FEATURES

(in millions)


	2008		2009
	3Q	4Q	1Q	2Q	3Q

DEATH BENEFIT FEATURES ACCOUNT VALUE AND NET AMOUNT AT RISK (1):

Variable Annuity Account Values by Death Benefit Features
Return of net deposits:
Account value	38,285	34,892	34,313	39,124	46,881
Net amount at risk	3,572	6,462	7,433	5,138	3,219
Minimum return, anniversary contract value, or maximum contract value:
Account value	25,469	21,494	20,208	22,358	24,880
Net amount at risk	6,431	9,640	10,503	8,438	6,472

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature	16,445	17,653	19,124	22,935	30,116
Account Values without Auto-Rebalancing Feature	47,309	38,733	35,397	38,547	41,645

Total	63,754	56,386	54,521	61,482	71,761


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature	1,451	1,698	1,843	1,328	863
Net Amount at Risk without Auto-Rebalancing Feature	8,552	14,404	16,093	12,248	8,828

Total	10,003	16,102	17,936	13,576	9,691

(1)	At end of period.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - RETIREMENT SEGMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


Year-to-date					2008				2009
2009		2008			3Q		4Q		1Q		2Q		3Q

				RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

				Full Service:
99,738		112,192		Beginning total account value	106,917		100,463		99,738		102,159		110,950
19,168		12,392		Deposits and sales	3,276		6,549		10,489		3,890		4,789
(11,321	)	(11,182	)	Withdrawals and benefits	(2,883	)	(3,869	)	(4,231	)	(3,803	)	(3,287	)
14,171		(12,939	)	Change in market value, interest credited and interest income	(6,847	)	(12,320	)	(3,837	)	8,704		9,304
—		—		Acquisition (1)	—		8,915		—		—		—

121,756		100,463		Ending total account value	100,463		99,738		102,159		110,950		121,756


7,847		1,210		Net additions	393		2,680		6,258		87		1,502


				Stable value account values included above	34,570		35,346		36,601		36,722		35,881

				Institutional Investment Products:
50,491		51,591		Beginning total account value	51,513		50,041		50,491		49,030		49,475
4,299		4,468		Additions (2)	1,052		1,270		627		2,343		1,329
(5,832	)	(5,760	)	Withdrawals and benefits (3)	(2,114	)	(1,632	)	(2,037	)	(1,272	)	(2,523	)
2,074		955		Change in market value, interest credited and interest income	153		1,243		(152	)	678		1,548
(895	)	(1,213	)	Other (4)	(563	)	(431	)	101		(1,304	)	308

50,137		50,041		Ending total account value	50,041		50,491		49,030		49,475		50,137


(1,533	)	(1,292	)	Net additions (withdrawals)	(1,062	)	(362	)	(1,410	)	1,071		(1,194	)

(1)	On October 10, 2008, the company acquired MullinTBG Insurance Agency Services, LLC and related entities.

(2)

Includes $700 million for the three months ended December 31, 2008 and $500 million for the three months ended June 30, 2009 and nine months ended September 30, 2009, representing transfers of externally managed client balances to accounts managed by the company. This addition is offset within the “Other” category as there is no net impact on ending account values for this transfer.

(3)

Includes $(317) million for the three months and the nine months ended September 30, 2009 representing transfers of client balances managed by the Company to externally managed accounts. This withdrawal is offset in the “Other” category and there is no net impact on the ending account values for this transfer.

(4)

“Other” activity includes transfers from (to) the Asset Management segment of $(20) million and $543 million for the three months ended September 30, 2008 and December 31, 2008, respectively; and $(111) million for the nine months ended September 30, 2008. “Other” activity also includes $(700) million for the three months ended December 31, 2008, $(500) million for the three months ended June 30, 2009, $317 million and $(183) million for the three and nine months ended September 30, 2009, respectively; related to transfers discussed above in notes 2 and 3. For the three months ended March 31, 2009 and the nine months ended September 30, 2009 “Other” includes $1,500 million representing collateralized funding agreements issued to the Federal Home Loan Bank of New York (FHLBNY). “Other” also includes $(507) million, $(1,015) million and $(1,522) million for the three months ended June 30, 2009, March 31, 2009 and the nine months ended September 30, 2009 respectively, representing terminations of affiliated funding agreements utilizing proceeds from the issuances to FHLBNY. The remainder of “Other” activity primarily represents changes in asset balances for externally managed accounts.

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT

INFORMATION FOR ASSET MANAGEMENT SEGMENT


			Supplementary Revenue Information (in millions):
Year-to-date		%		2008				2009
2009	2008	Change		3Q		4Q		1Q		2Q		3Q

			Analysis of revenues by type:
762	858	-11%	Asset management fees	289		257		239		254		269
(67)	191	-135%	Incentive, transaction, principal investing and commercial mortgage revenues	(49	)	(141	)	(35	)	(12	)	(20	)
201	408	-51%	Service, distribution and other revenues	105		113		59		100		42

896	1,457	-39%	Total Asset Management segment revenues	345		229		263		342		291



			Analysis of asset management fees by source:
374	407	-8%	Institutional customers	138		133		119		126		129
189	249	-24%	Retail customers	83		58		56		62		71
199	202	-1%	General account	68		66		64		66		69

762	858	-11%	Total asset management fees	289		257		239		254		269


Supplementary Assets Under Management Information (in billions):
	September 30, 2009
	Equity	Fixed Income	Real Estate	Total
Institutional customers	46.2	113.0	20.7	179.9
Retail customers	53.0	24.3	1.8	79.1
General account	4.1	179.9	0.9	184.9

Total	103.3	317.2	23.4	443.9


	September 30, 2008
	Equity	Fixed Income	Real Estate	Total
Institutional customers	49.3	92.6	29.0	170.9
Retail customers	51.6	21.6	2.2	75.4
General account	3.9	170.4	0.9	175.2

Total	104.8	284.6	32.1	421.5

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - SUPPLEMENTARY ASSETS UNDER MANAGEMENT AND ADMINISTRATION INFORMATION FOR ASSET MANAGEMENT SEGMENT

(in billions)


Year-to-date					2008				2009
2009		2008			3Q		4Q		1Q		2Q		3Q

				Institutional Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
128.5		141.7		Beginning assets under management	145.8		138.6		128.5		120.6		128.9
23.0		23.5		Additions	6.3		6.1		4.9		7.7		10.4
(16.7	)	(13.6	)	Withdrawals	(4.8	)	(5.9	)	(4.6	)	(6.5	)	(5.6	)
9.8		(11.7	)	Change in market value	(8.4	)	(10.7	)	(7.3	)	7.2		9.9
(1.2	)	(1.4	)	Net money market flows	(0.3	)	0.9		(0.9	)	(0.1	)	(0.2	)
—		0.1		Other (1)	—		(0.5	)	—		—		—

143.4		138.6		Ending assets under management	138.6		128.5		120.6		128.9		143.4
36.5		32.3		Affiliated institutional assets under management	32.3		32.7		32.1		34.6		36.5

179.9		170.9		Total assets managed for institutional customers at end of period	170.9		161.2		152.7		163.5		179.9


6.3		9.9		Net institutional additions, excluding money market and other activity (1)	1.5		0.2		0.3		1.2		4.8


				Retail Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
33.4		50.9		Beginning assets under management	50.7		43.4		33.4		33.5		39.5
14.2		11.7		Additions	4.4		3.4		3.5		4.6		6.1
(9.3	)	(9.7	)	Withdrawals	(4.3	)	(5.0	)	(3.3	)	(2.7	)	(3.3	)
8.8		(9.6	)	Change in market value	(7.5	)	(8.4	)	(0.7	)	4.4		5.1
0.1		0.1		Net money market flows	0.1		—		0.6		(0.3	)	(0.2	)
—		—		Other	—		—		—		—		—

47.2		43.4		Ending assets under management	43.4		33.4		33.5		39.5		47.2
31.9		32.0		Affiliated retail assets under management	32.0		28.2		27.8		30.8		31.9

79.1		75.4		Total assets managed for retail customers at end of period	75.4		61.6		61.3		70.3		79.1


4.9		2.0		Net retail additions (withdrawals), excluding money market activity	0.1		(1.6	)	0.2		1.9		2.8

(1)	Other activity represents transfers from (to) the Retirement Segment as a result of a change in client contract form. These assets continue to be managed by the segment and are included in Affiliated institutional assets under management above.

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

COMBINED STATEMENTS OF OPERATIONS - U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION

(in millions)


Year-to-date				%		2008				2009
2009		2008		Change		3Q		4Q		1Q		2Q		3Q

					Revenues (1):
3,572		3,290		9%	Premiums	1,099		1,091		1,190		1,156		1,226
1,102		1,084		2%	Policy charges and fee income	313		441		393		412		297
1,064		1,039		2%	Net investment income	353		357		353		350		361
293		332		-12%	Asset management fees, commissions and other income	149		80		77		88		128

6,031		5,745		5%	Total revenues	1,914		1,969		2,013		2,006		2,012


					Benefits and Expenses (1):
3,824		3,488		10%	Insurance and annuity benefits	1,136		1,210		1,276		1,222		1,326
364		346		5%	Interest credited to policyholders’ account balances	119		117		119		119		126
140		153		-8%	Interest expense	51		62		51		47		42
(404	)	(360	)	-12%	Deferral of acquisition costs	(121	)	(126	)	(125	)	(136	)	(143	)
112		165		-32%	Amortization of acquisition costs	(37	)	222		136		74		(98	)
1,312		1,245		5%	General and administrative expenses	427		406		423		437		452

5,348		5,037		6%	Total benefits and expenses	1,575		1,891		1,880		1,763		1,705


683		708		-4%	Adjusted operating income before income taxes	339		78		133		243		307

(1)	Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses.

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

COMBINING STATEMENTS OF OPERATIONS - U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION

(in millions)


	Nine Months Ended September 30, 2009						Quarter Ended September 30, 2009
	Total U.S. Individual Life & Group Insurance Division		Individual Life		Group Insurance		Total U.S. Individual Life & Group Insurance Division		Individual Life		Group Insurance
Revenues (1):
Premiums	3,572		508		3,064		1,226		178		1,048
Policy charges and fee income	1,102		735		367		297		181		116
Net investment income	1,064		602		462		361		205		156
Asset management fees, commissions and other income	293		194		99		128		92		36

Total revenues	6,031		2,039		3,992		2,012		656		1,356


Benefits and Expenses (1):
Insurance and annuity benefits	3,824		791		3,033		1,326		269		1,057
Interest credited to policyholders’ account balances	364		195		169		126		68		58
Interest expense	140		140		—		42		42		—
Deferral of acquisition costs	(404	)	(367	)	(37	)	(143	)	(124	)	(19	)
Amortization of acquisition costs	112		95		17		(98	)	(102	)	4
General and administrative expenses	1,312		764		548		452		260		192

Total benefits and expenses	5,348		1,618		3,730		1,705		413		1,292


Adjusted operating income before income taxes	683		421		262		307		243		64


	Nine Months Ended September 30, 2008						Quarter Ended September 30, 2008
	Total U.S. Individual Life & Group Insurance Division		Individual Life		Group Insurance		Total U.S. Individual Life & Group Insurance Division		Individual Life		Group Insurance
Revenues (1):
Premiums	3,290		451		2,839		1,099		155		944
Policy charges and fee income	1,084		767		317		313		209		104
Net investment income	1,039		553		486		353		191		162
Asset management fees, commissions and other income	332		267		65		149		127		22

Total revenues	5,745		2,038		3,707		1,914		682		1,232


Benefits and Expenses (1):
Insurance and annuity benefits	3,488		718		2,770		1,136		230		906
Interest credited to policyholders’ account balances	346		171		175		119		59		60
Interest expense	153		152		1		51		51		—
Deferral of acquisition costs	(360	)	(332	)	(28	)	(121	)	(111	)	(10	)
Amortization of acquisition costs	165		154		11		(37	)	(40	)	3
General and administrative expenses	1,245		738		507		427		255		172

Total benefits and expenses	5,037		1,601		3,436		1,575		444		1,131


Adjusted operating income before income taxes	708		437		271		339		238		101

(1)	Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses.

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION - INDIVIDUAL LIFE ANNUALIZED NEW BUSINESS PREMIUMS, ACCOUNT VALUE ACTIVITY, AND FACE AMOUNT IN FORCE

(in millions)


Year-to-date					2008				2009
2009		2008			3Q		4Q		1Q		2Q		3Q

				ANNUALIZED NEW BUSINESS PREMIUMS:

				Excluding corporate-owned life insurance:
12		29		Variable life	8		10		4		5		3
86		60		Universal life	21		23		28		32		26
170		156		Term life	53		53		52		61		57

268		245		Total excluding corporate-owned life insurance	82		86		84		98		86
—		—		Corporate-owned life insurance	—		—		—		—		—

268		245		Total	82		86		84		98		86


				ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL:

				Excluding corporate-owned life insurance:
68		83		Prudential Agents	26		26		22		24		22
200		162		Third party distribution	56		60		62		74		64
—		—		Corporate-owned life insurance	—		—		—		—		—

268		245		Total	82		86		84		98		86


				ACCOUNT VALUE ACTIVITY:

				*Policyholders’ Account Balances (1):*
7,397		6,582		Beginning balance	6,948		7,212		7,397		7,691		7,824
1,430		1,151		Premiums and deposits	372		462		570		474		386
(738	)	(697	)	Surrenders and withdrawals	(248	)	(303	)	(278	)	(240	)	(220	)

692		454		Net sales	124		159		292		234		166
(116	)	(118	)	Benefit payments	(41	)	(41	)	(34	)	(32	)	(50	)

576		336		Net flows	83		118		258		202		116
28		319		Interest credited and other	180		78		81		(64	)	11
183		197		Net transfers from separate account	75		70		45		85		53
(270	)	(222	)	Policy charges	(74	)	(81	)	(90	)	(90	)	(90	)

7,914		7,212		Ending balance	7,212		7,397		7,691		7,824		7,914


				*Separate Account Liabilities:*
12,848		18,585		Beginning balance	17,387		15,476		12,848		12,110		13,450
844		1,001		Premiums and deposits	386		409		315		261		268
(683	)	(550	)	Surrenders and withdrawals	(173	)	(277	)	(328	)	(216	)	(139	)

161		451		Net sales (redemptions)	213		132		(13	)	45		129
(31	)	(38	)	Benefit payments	(6	)	17		(2	)	(18	)	(11	)

130		413		Net flows	207		149		(15	)	27		118
2,707		(2,744	)	Change in market value, interest credited and other	(1,849	)	(2,524	)	(500	)	1,574		1,633
(183	)	(197	)	Net transfers to general account	(75	)	(70	)	(45	)	(85	)	(53	)
(530	)	(581	)	Policy charges	(194	)	(183	)	(178	)	(176	)	(176	)

14,972		15,476		Ending balance	15,476		12,848		12,110		13,450		14,972


				FACE AMOUNT IN FORCE (2):

				Variable life	131,608		127,503		124,600		123,419		122,955
				Universal life	27,999		29,070		30,537		32,315		33,711
				Term life	359,887		373,927		386,218		402,459		417,100

				Total	519,494		530,500		541,355		558,193		573,766

(1)	Includes fixed rate funds, alliance deposits, supplementary contracts and deferred revenues on variable products.

(2)	At end of period; before reinsurance ceded.

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


Year-to-date			2008		2009
2009	2008		3Q	4Q	1Q	2Q	3Q

		Individual Life Insurance:

		Policy Surrender Experience:
665	562	Cash value of surrenders	188	240	256	236	173
4.4%	3.4%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.5%	4.8%	5.5%	5.0%	3.4%

		Death benefits per $1,000 of in force (1):
4.06	3.67	Variable and universal life	3.23	3.58	4.71	3.83	3.72
0.96	1.52	Term life	1.46	0.97	1.14	1.10	0.75
2.62	2.84	Total, Individual Life Insurance	2.51	2.43	3.14	2.54	2.32

(1)	Annualized, for interim reporting periods. Amounts are stated net of reinsurance.

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


Year-to-date			2008				2009
2009	2008		3Q		4Q		1Q		2Q		3Q

		GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
298	212	Group life	70		76		210		35		53
217	178	Group disability (1)	47		26		134		26		57

515	390	Total	117		102		344		61		110


		Future Policy Benefits (2):
		Group life	2,015		2,227		2,169		2,176		2,141
		Group disability (1)	865		898		1,015		1,059		1,132

		Total	2,880		3,125		3,184		3,235		3,273


		Policyholders’ Account Balances (2):
		Group life	5,785		5,958		6,033		6,160		6,343
		Group disability (1)	152		172		159		168		172

		Total	5,937		6,130		6,192		6,328		6,515


		Separate Account Liabilities (2):
		Group life	19,943		19,429		20,315		19,141		18,083
		Group disability (1)	—		—		—		—		—

		Total	19,943		19,429		20,315		19,141		18,083


		Group Life Insurance:
2,724	2,701	Gross premiums, policy charges and fee income (3)	840		922		920		915		889
2,579	2,392	Earned premiums, policy charges and fee income	789		840		857		849		873
88.4%	88.2%	Benefits ratio	88.1	%	89.9	%	88.0	%	87.3	%	89.8	%
8.9%	8.6%	Administrative operating expense ratio	9.4	%	8.7	%	8.8	%	8.7	%	9.1	%
		Persistency ratio	93.6	%	93.3	%	95.8	%	95.6	%	94.7	%

		Group Disability Insurance (1):
871	791	Gross premiums, policy charges and fee income (3)	265		241		297		271		303
852	764	Earned premiums, policy charges and fee income	259		231		290		271		291
88.5%	86.4%	Benefits ratio	81.5	%	90.0	%	86.2	%	85.6	%	93.5	%
17.8%	19.5%	Administrative operating expense ratio	19.3	%	20.8	%	17.9	%	18.1	%	17.5	%
		Persistency ratio	86.7	%	85.6	%	94.5	%	93.6	%	92.3	%

(1)	Group disability amounts include long-term care products.

(2)	As of end of period.

(3)	Before returns of premiums to participating policyholders for favorable claims experience.

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

DEFERRED POLICY ACQUISITION COSTS & DEFERRED SALES INDUCEMENTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE

(in millions)


Year-to-date					2008				2009
2009		2008			3Q		4Q		1Q		2Q		3Q

				DEFERRED POLICY ACQUISITION COSTS

				INDIVIDUAL ANNUITIES:
2,329		1,976		Beginning balance	2,199		2,294		2,329		1,580		1,943
656		467		Capitalization	149		130		132		197		327
(518	)	(260	)	Amortization - operating results	(121	)	(119	)	(862	)	355		(11	)
23		20		Amortization - realized investment gains and losses	10		(10	)	2		11		10
(379	)	91		Impact of unrealized (gains) or losses on AFS securities	57		34		(21	)	(200	)	(158	)

2,111		2,294		Ending balance	2,294		2,329		1,580		1,943		2,111


				INDIVIDUAL LIFE INSURANCE:
4,226		3,855		Beginning balance	3,963		4,207		4,226		4,270		4,142
367		332		Capitalization	111		113		115		128		124
(95	)	(154	)	Amortization - operating results	40		(218	)	(128	)	(69	)	102
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
(348	)	174		Impact of unrealized (gains) or losses on AFS securities	93		124		57		(187	)	(218	)

4,150		4,207		Ending balance	4,207		4,226		4,270		4,142		4,150


				GROUP INSURANCE:
347		321		Beginning balance	331		338		347		349		352
37		28		Capitalization	10		13		10		8		19
(17)		(11	)	Amortization - operating results	(3	)	(4	)	(8	)	(5	)	(4	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

367		338		Ending balance	338		347		349		352		367


				DEFERRED SALES INDUCEMENTS

				INDIVIDUAL ANNUITIES:
1,023		798		Beginning balance	934		984		1,023		807		983
278		260		Capitalization	84		74		66		82		130
(212	)	(83	)	Amortization - operating results	(38	)	(13	)	(281	)	84		(15	)
19		9		Amortization - realized investment gains and losses	4		(22	)	(1	)	10		10
(92	)	—		Impact of unrealized (gains) or losses on AFS securities	—		—		—		—		(92	)
—		—		Other	—		—		—		—		—

1,016		984		Ending balance	984		1,023		807		983		1,016

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 200

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date				% Change		2008				2009
2009		2008		% Change		3Q		4Q		1Q		2Q		3Q

					Revenues (1):
5,825		5,135		13%	Premiums	1,627		1,698		1,899		1,911		2,015
280		252		11%	Policy charges and fee income	83		90		99		91		90
1,609		1,479		9%	Net investment income	514		527		534		509		566
341		483		-29%	Asset management fees, commissions and other income	153		(217	)	106		130		105

8,055		7,349		10%	Total revenues	2,377		2,098		2,638		2,641		2,776


					Benefits and Expenses (1):
4,538		4,052		12%	Insurance and annuity benefits	1,279		1,325		1,501		1,465		1,572
352		307		15%	Interest credited to policyholders’ account balances	106		109		119		110		123
3		7		-57%	Interest expense	1		2		1		1		1
(910	)	(874	)	-4%	Deferral of acquisition costs	(281	)	(299	)	(309	)	(299	)	(302	)
591		456		30%	Amortization of acquisition costs	144		182		202		214		175
2,052		1,987		3%	General and administrative expenses	631		778		689		669		694

6,626		5,935		12%	Total benefits and expenses	1,880		2,097		2,203		2,160		2,263


1,429		1,414		1%	Adjusted operating income before income taxes	497		1		435		481		513

(1)

Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests.

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Nine Months Ended September 30, 2009							Quarter Ended September 30, 2009
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	5,825		3,716		2,109		—	2,015		1,232		783		—
Policy charges and fee income	280		221		59		—	90		71		19		—
Net investment income	1,609		784		810		15	566		279		283		4
Asset management fees, commissions and other income	341		56		(17	)	302	105		14		(13	)	104

Total revenues	8,055		4,777		2,961		317	2,776		1,596		1,072		108


Benefits and Expenses (1):
Insurance and annuity benefits	4,538		2,888		1,650		—	1,572		970		602		—
Interest credited to policyholders’ account balances	352		137		215		—	123		49		74		—
Interest expense	3		2		1		—	1		—		1		—
Deferral of acquisition costs	(910	)	(627	)	(283	)	—	(302	)	(207	)	(95	)	—
Amortization of acquisition costs	591		399		192		—	175		114		61		—
General and administrative expenses	2,052		1,059		715		278	694		360		239		95

Total benefits and expenses	6,626		3,858		2,490		278	2,263		1,286		882		95

Adjusted operating income before income taxes	1,429		919		471		39	513		310		190		13


	Nine Months Ended September 30, 2008							Quarter Ended September 30, 2008
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	5,135		3,552		1,583		—	1,627		1,129		498		—
Policy charges and fee income	252		200		52		—	83		66		17		—
Net investment income	1,479		713		729		37	514		247		255		12
Asset management fees, commissions and other income	483		63		(12	)	432	153		20		(6	)	139

Total revenues	7,349		4,528		2,352		469	2,377		1,462		764		151


Benefits and Expenses (1):
Insurance and annuity benefits	4,052		2,817		1,235		—	1,279		900		379		—
Interest credited to policyholders’ account balances	307		125		182		—	106		42		64		—
Interest expense	7		9		(6	)	4	1		2		(2	)	1
Deferral of acquisition costs	(874	)	(624	)	(250	)	—	(281	)	(200	)	(81	)	—
Amortization of acquisition costs	456		326		130		—	144		100		44		—
General and administrative expenses	1,987		1,011		599		377	631		325		193		113

Total benefits and expenses	5,935		3,664		1,890		381	1,880		1,169		597		114

Adjusted operating income before income taxes	1,414		864		462		88	497		293		167		37

(1)

Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests.

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2008				2009
2009		2008			3Q		4Q		1Q		2Q		3Q

				Japanese Yen Basis Results:
				Revenues (1):
¥	354,241	¥	335,729	Japanese insurance operations excluding Gibraltar Life	¥	110,522	¥	110,212	¥	124,975	¥	114,650	¥	114,616
	289,253		252,784	Gibraltar Life		84,570		83,070		84,867		99,223		105,163

	643,494		588,513	Total revenues, Japan, yen basis		195,092		193,282		209,842		213,873		219,779


				Benefits and Expenses (1):
	278,432		259,030	Japanese insurance operations excluding Gibraltar Life		83,006		86,952		101,197		88,419		88,816
	237,633		202,389	Gibraltar Life		65,640		66,538		70,551		82,573		84,509

	516,065		461,419	Total benefits and expenses, Japan, yen basis		148,646		153,490		171,748		170,992		173,325


				Adjusted operating income (2):
	75,809		76,699	Japanese insurance operations excluding Gibraltar Life		27,516		23,260		23,778		26,231		25,800
	51,620		50,395	Gibraltar Life		18,930		16,532		14,316		16,650		20,654

¥	127,429	¥	127,094	Total adjusted operating income, Japan, yen basis	¥	46,446	¥	39,792	¥	38,094	¥	42,881	¥	46,454


				U.S. Dollar adjusted operating income (3):
$	748	$	719	Japanese insurance operations excluding Gibraltar Life	$	252	$	224	$	237	$	257	$	254
	471		462	Gibraltar Life		167		160		131		150		190

	1,219		1,181	Total adjusted operating income, Japan, U.S. dollar basis		419		384		368		407		444
	171		145	All other countries (4)		41		37		57		58		56

$	1,390	$	1,326	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	460	$	421	$	425	$	465	$	500

(1)

Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests.

(2)	Adjusted operating income on yen basis excludes impact of currency hedging.

(3)	U.S. dollar adjusted operating income includes impact of currency hedging.

(4)	Results include corporate management and development expenses incurred in the U.S. related to Japanese Insurance operations excluding Gibraltar Life.

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date			2008		2009
2009	2008		3Q	4Q	1Q	2Q	3Q

		INTERNATIONAL INSURANCE OPERATING DATA:

		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
3,027	2,651	Japan, excluding Gibraltar Life	839	924	1,084	963	980
2,168	1,635	Gibraltar Life	515	559	635	731	802
910	1,101	All other countries	356	305	279	308	323

6,105	5,387	Total	1,710	1,788	1,998	2,002	2,105


		Annualized new business premiums:
401	408	Japan, excluding Gibraltar Life	120	123	173	122	106
409	353	Gibraltar Life	111	101	113	147	149
212	190	All other countries	55	54	47	59	106

1,022	951	Total	286	278	333	328	361


		Annualized new business premiums by distribution channel:
613	598	Life Planners	175	177	220	181	212
325	311	Gibraltar Life Advisors	96	89	92	122	111
84	42	Banks	15	12	21	25	38

1,022	951	Total	286	278	333	328	361


		Constant exchange rate basis (2):

		Net premiums, policy charges and fee income:
2,795	2,644	Japan, excluding Gibraltar Life	850	860	995	906	894
1,940	1,639	Gibraltar Life	522	534	546	673	721
1,154	1,129	All other countries	380	400	383	384	387

5,889	5,412	Total	1,752	1,794	1,924	1,963	2,002


		Annualized new business premiums:
401	407	Japan, excluding Gibraltar Life	122	115	161	114	126
384	355	Gibraltar Life	112	99	105	139	140
212	192	All other countries	56	68	63	70	79

997	954	Total	290	282	329	323	345


		Annualized new business premiums by distribution channel:
613	599	Life Planners	178	183	224	184	205
301	312	Gibraltar Life Advisors	97	87	84	115	102
83	43	Banks	15	12	21	24	38

997	954	Total	290	282	329	323	345

(1)	Translated based on applicable average exchange rates for the period shown.

(2)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 106 per U.S. dollar; Korean won 950 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2008				2009
	3Q		4Q		1Q		2Q		3Q

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	246		248		250		251		253
Gibraltar Life	184		183		182		180		179
All other countries	108		108		108		109		110

Total	538		539		540		540		542


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	2,288		2,313		2,353		2,373		2,400
Gibraltar Life	3,788		3,796		3,787		3,760		3,773
All other countries	1,333		1,348		1,359		1,375		1,402

Total	7,409		7,457		7,499		7,508		7,575


International life insurance policy persistency:

Excluding Gibraltar Life:
13 months	92.1	%	92.6	%	92.2	%	91.8	%	91.5	%
25 months	85.5	%	86.2	%	85.0	%	84.7	%	84.2	%

Gibraltar Life:
13 months	91.1	%	91.1	%	91.2	%	91.2	%	91.1	%
25 months	85.3	%	84.0	%	83.4	%	83.1	%	83.2	%

Number of Life Planners at end of period:
Japan	3,084		3,071		3,078		2,987		3,043
All other countries	3,183		3,294		3,319		3,388		3,461

Total life planners	6,267		6,365		6,397		6,375		6,504


Gibraltar Life Advisors	6,057		6,330		6,170		6,376		6,060

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 106 per U.S. dollar; Korean won 950 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.

(2)	Direct business only; policy count includes annuities.

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2009					December 31, 2008
	Consolidated	Closed Block	Financial Services Businesses			Consolidated	Closed Block	Financial Services Businesses
	Portfolio	Business	Amount	% of Total		Portfolio	Business	Amount	% of Total
Fixed maturities:
Public, available for sale, at fair value	136,347	29,676	106,671	57.1	%	126,149	27,424	98,725	57.5	%
Public, held to maturity, at amortized cost	4,110	—	4,110	2.2	%	3,002	—	3,002	1.7	%
Private, available for sale, at fair value	32,537	12,755	19,782	10.6	%	30,047	11,479	18,568	10.8	%
Private, held to maturity, at amortized cost	1,031	—	1,031	0.5	%	806	—	806	0.5	%
Trading account assets supporting insurance liabilities, at fair value	15,848	—	15,848	8.5	%	13,875	—	13,875	8.1	%
Other trading account assets, at fair value (1)	2,228	167	2,061	1.1	%	848	120	728	0.4	%
Equity securities, available for sale, at fair value	6,688	2,953	3,735	2.0	%	6,059	2,400	3,659	2.1	%
Commercial loans	30,091	8,509	21,582	11.6	%	30,840	8,748	22,092	12.9	%
Policy loans	10,070	5,436	4,634	2.5	%	9,703	5,423	4,280	2.5	%
Other long-term investments (2)	4,393	1,582	2,811	1.5	%	4,664	1,629	3,035	1.8	%
Short-term investments (3)	6,248	1,767	4,481	2.4	%	4,358	1,484	2,874	1.7	%

Subtotal (4)	249,591	62,845	186,746	100.0	%	230,351	58,707	171,644	100.0	%

Invested assets of other entities and operations (5)	8,729	—	8,729			11,674	—	11,674

Total investments	258,320	62,845	195,475			242,025	58,707	183,318

Fixed Maturities by Credit Quality (4):


		September 30, 2009						December 31, 2008
		Financial Services Businesses						Financial Services Businesses
		Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value	% of Total		Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value	% of Total
Public Fixed Maturities:
NAIC Rating (6)	Rating Agency Equivalent
1	Aaa, Aa, A	88,785	4,117	1,678	91,224	82.3	%	85,474	4,228	4,425	85,277	83.8	%
2	Baa	14,487	722	787	14,422	13.0	%	15,573	163	2,893	12,843	12.6	%

Subtotal Investment Grade		103,272	4,839	2,465	105,646	95.3	%	101,047	4,391	7,318	98,120	96.4	%

3	Ba	2,841	37	347	2,531	2.3	%	3,009	16	800	2,225	2.2	%
4	B	1,633	11	361	1,283	1.2	%	1,639	2	565	1,076	1.1	%
5	C and lower	1,397	23	422	998	0.9	%	379	14	123	270	0.3	%
6	In or near default	499	32	158	373	0.3	%	36	4	4	36	0.0	%

Subtotal Below Investment Grade		6,370	103	1,288	5,185	4.7	%	5,063	36	1,492	3,607	3.6	%

Total		109,642	4,942	3,753	110,831	100.0	%	106,110	4,427	8,810	101,727	100.0	%


Private Fixed Maturities:
NAIC Rating (6)	Rating Agency Equivalent
1	Aaa, Aa, A	5,871	301	132	6,040	29.0	%	6,284	112	408	5,988	30.9	%
2	Baa	10,772	395	467	10,700	51.4	%	11,341	92	1,310	10,123	52.2	%

Subtotal Investment Grade		16,643	696	599	16,740	80.4	%	17,625	204	1,718	16,111	83.1	%

3	Ba	2,548	45	191	2,402	11.5	%	2,405	24	381	2,048	10.5	%
4	B	1,136	14	140	1,010	4.9	%	1,037	14	244	807	4.2	%
5	C and lower	427	6	56	377	1.8	%	283	7	59	231	1.2	%
6	In or near default	277	32	17	292	1.4	%	232	8	39	201	1.0	%

Subtotal Below Investment Grade		4,388	97	404	4,081	19.6	%	3,957	53	723	3,287	16.9	%

Total		21,031	793	1,003	20,821	100.0	%	21,582	257	2,441	19,398	100.0	%

(1)	Other trading account assets, at fair value includes $1,066 million of asset-backed securities purchased under the Federal Reserve’s Term Asset-Backed Securities Loan Facility, which are predominately financed by non-recourse borrowings under the program.

(2)

Other long-term investments consist of real estate and non-real estate related investments in joint ventures (other than our investment in operating joint ventures, which includes our investment in Wachovia Securities) and partnerships, investment real estate held through direct ownership, and other miscellaneous investments.

(3)	Short-term investments consist primarily of money market funds with virtually no sub-prime exposure.

(4)

Excludes (i) assets of our securities brokerage, securities trading, banking operations and real estate and relocation services, (ii) assets of our asset management operations, including assets managed for third parties, and (iii) those assets classified as “separate account assets” on our balance sheet.

(5)

Includes invested assets of securities brokerage, securities trading, banking operations, real estate and relocation services, and asset management operations. Excludes assets of our asset management operations managed for third parties and those assets classified as “separate account assets” on our balance sheet.

(6)

Reflects equivalent ratings for investments of international insurance operations that are not rated by United States insurance regulatory authorities. Includes, as of September 30, 2009 and December 31, 2008, respectively, 114 securities with amortized cost of $1,943 million (fair value $2,003 million) and 142 securities with amortized cost of $1,214 million (fair value, $1,054 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2009			December 31, 2008
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	47,643	72.4	%	42,223	70.6	%
Public, held to maturity, at amortized cost	4,110	6.2	%	3,002	5.0	%
Private, available for sale, at fair value	2,713	4.1	%	2,803	4.7	%
Private, held to maturity, at amortized cost	1,031	1.6	%	806	1.3	%
Trading account assets supporting insurance liabilities, at fair value	1,251	1.9	%	1,077	1.8	%
Other trading account assets, at fair value	669	1.0	%	519	0.9	%
Equity securities, available for sale, at fair value	1,522	2.3	%	2,071	3.5	%
Commercial loans	3,632	5.5	%	3,373	5.6	%
Policy loans	1,747	2.7	%	1,547	2.6	%
Other long-term investments (1)	1,088	1.7	%	2,143	3.6	%
Short-term investments	369	0.6	%	266	0.4	%

Total	65,775	100.0	%	59,830	100.0	%


	September 30, 2009			December 31, 2008
	Amount	% of Total		Amount	% of Total
Financial Services Businesses excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available for sale, at fair value	59,028	48.8	%	56,502	50.5	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	17,069	14.1	%	15,765	14.1	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	14,597	12.1	%	12,798	11.5	%
Other trading account assets, at fair value	1,392	1.2	%	209	0.2	%
Equity securities, available for sale, at fair value	2,213	1.8	%	1,588	1.4	%
Commercial loans	17,950	14.8	%	18,719	16.7	%
Policy loans	2,887	2.4	%	2,733	2.5	%
Other long-term investments (1)	1,723	1.4	%	892	0.8	%
Short-term investments	4,112	3.4	%	2,608	2.3	%

Total	120,971	100.0	%	111,814	100.0	%

(1)	Other long-term investments consist of real estate and non-real estate related investments in joint ventures and partnerships, investment real estate held through direct ownership, and other miscellaneous investments.

(2)

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended September 30
	2009						2008
	Investment Income				Realized Gains /		Investment Income				Realized Gains /
	Yield (3)		Amount		(Losses)		Yield (3)		Amount		(Losses)
Financial Services Businesses (1):
Fixed maturities	4.45	%	1,414		(241	)	4.80	%	1,413		(376	)
Equity securities	7.40	%	62		(40	)	5.51	%	64		(104	)
Commercial loans	5.67	%	240		(84	)	5.84	%	246		1
Policy loans	5.10	%	57		1		5.48	%	54		—
Short-term investments and cash equivalents	0.38	%	13		1		2.39	%	72		—
Other investments	5.37	%	36		(32	)	3.50	%	32		(18	)

Gross investment income before investment expenses	4.37	%	1,822		(395	)	4.77	%	1,881		(497	)
Investment expenses	-0.15	%	(52	)	—		-0.16	%	(81	)	—

Subtotal	4.22	%	1,770		(395	)	4.61	%	1,800		(497	)

Investment results of other entities and operations (2)			287		(35	)			283		105
Less, investment income relating to divested businesses			(2	)					(7	)

Total			2,055		(430	)			2,076		(392	)


	Nine Months Ended September 30
	2009						2008
	Investment Income				Realized Gains /		Investment Income				Realized Gains /
	Yield (3)		Amount		(Losses)		Yield (3)		Amount		(Losses)
Financial Services Businesses (1):
Fixed maturities	4.57	%	4,275		(786	)	4.85	%	4,191		(1,244	)
Equity securities	6.42	%	175		(419	)	4.96	%	170		(256	)
Commercial loans	5.73	%	723		(221	)	5.99	%	724		(3	)
Policy loans	5.11	%	165		1		5.31	%	157		—
Short-term investments and cash equivalents	0.61	%	56		1		2.96	%	238		—
Other investments	3.89	%	97		345		3.93	%	95		(284	)

Gross investment income before investment expenses	4.46	%	5,491		(1,079	)	4.85	%	5,575		(1,787	)
Investment expenses	-0.16	%	(155	)	—		-0.16	%	(241	)	—

Subtotal	4.30	%	5,336		(1,079	)	4.69	%	5,334		(1,787	)

Investment results of other entities and operations (2)			846		(189	)			1,024		43
Less, investment income relating to divested businesses			(10	)					(27	)

Total			6,172		(1,268	)			6,331		(1,744	)

(1)

Excludes assets of our securities brokerage, securities trading, and banking operations, real estate and relocation services, commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders, assets of our asset management operations, including assets managed for third parties, and those assets classified as “separate account assets” on our balance sheet.

(2)

Includes investment income of securities brokerage, securities trading, banking operations, real estate and relocation services, commercial loans, discontinued real estate operations, and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders.

(3)

Yields are annualized, for interim periods, and based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for securities lending activity are calculated net of corresponding liabilities and rebate expenses. Yields exclude investment income and assets related to commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets of the Financial Services Businesses.

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 30
	2009						2008
	Investment Income				Realized Gains /		Investment Income				Realized Gains /
	Yield (1)		Amount		(Losses)		Yield (1)		Amount		(Losses)
Japanese Insurance Operations:
Fixed maturities	2.93	%	398		(145	)	3.11	%	339		1
Equity securities	4.53	%	18		(45	)	3.83	%	25		(82	)
Commercial loans	4.71	%	43		(1	)	4.66	%	36		14
Policy loans	3.74	%	16		2		3.82	%	12		—
Short-term investments and cash equivalents	0.61	%	3		—		1.39	%	3		—
Other investments	5.26	%	23		(14	)	5.58	%	24		139

Gross investment income before investment expenses	3.08	%	501		(203	)	3.30	%	439		72
Investment expenses	-0.16	%	(27	)	—		-0.18	%	(24	)	—

Total	2.92	%	474		(203	)	3.12	%	415		72


	Nine Months Ended September 30
	2009						2008
	Investment Income				Realized Gains /		Investment Income				Realized Gains /
	Yield (1)		Amount		(Losses)		Yield (1)		Amount		(Losses)
Japanese Insurance Operations:
Fixed maturities	2.96	%	1,141		(242	)	3.01	%	980		(107	)
Equity securities	3.25	%	47		(323	)	2.96	%	57		(237	)
Commercial loans	4.85	%	125		(8	)	4.75	%	106		16
Policy loans	3.81	%	45		2		3.86	%	36		—
Short-term investments and cash equivalents	0.57	%	8		—		2.46	%	15		—
Other investments	4.80	%	73		(379	)	7.42	%	76		(3	)

Gross investment income before investment expenses	3.08	%	1,439		(950	)	3.23	%	1,270		(331	)
Investment expenses	-0.16	%	(78	)	—		-0.19	%	(79	)	—

Total	2.92	%	1,361		(950	)	3.04	%	1,191		(331	)

(1)

Yields are annualized, for interim periods, and based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for securities lending activity are calculated net of corresponding liabilities and rebate expenses. Yields exclude investment income and assets related to trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets of the Financial Services Businesses.

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 30
	2009						2008
	Investment Income				Realized Gains /		Investment Income				Realized Gains /
	Yield (2)		Amount		(Losses)		Yield (2)		Amount		(Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	5.58	%	1,016		(96	)	5.82	%	1,074		(377	)
Equity securities	10.01	%	44		5		7.53	%	39		(22	)
Commercial loans	5.93	%	197		(83	)	6.11	%	210		(13	)
Policy loans	5.91	%	41		(1	)	6.26	%	42		—
Short-term investments and cash equivalents	0.33	%	10		1		2.49	%	69		—
Other investments	5.59	%	13		(18	)	1.39	%	8		(157	)

Gross investment income before investment expenses	5.20	%	1,321		(192	)	5.54	%	1,442		(569	)
Investment expenses	-0.15	%	(25	)	—		-0.15	%	(57	)	—

Total	5.05	%	1,296		(192	)	5.39	%	1,385		(569	)


	Nine Months Ended September 30
	2009						2008
	Investment Income				Realized Gains /		Investment Income				Realized Gains /
	Yield (2)		Amount		(Losses)		Yield (2)		Amount		(Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	5.70	%	3,134		(544	)	5.97	%	3,211		(1,137	)
Equity securities	10.04	%	128		(96	)	7.49	%	113		(19	)
Commercial loans	5.95	%	598		(213	)	6.27	%	618		(19	)
Policy loans	5.85	%	120		(1	)	5.97	%	121		—
Short-term investments and cash equivalents	0.62	%	48		1		3.01	%	223		—
Other investments	2.43	%	24		724		1.32	%	19		(281	)

Gross investment income before investment expenses	5.30	%	4,052		(129	)	5.71	%	4,305		(1,456	)
Investment expenses	-0.16	%	(77	)	—		-0.14	%	(162	)	—

Total	5.14	%	3,975		(129	)	5.57	%	4,143		(1,456	)

(1)

(2)

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION HISTORICAL DEATH

AND LIVING BENEFIT FEATURES AND DEFERRED SALES INDUCEMENTS INFORMATION FOR INDIVIDUAL ANNUITIES

(in millions)


Year ended December 31		2008								2009
2007		1Q		2Q		3Q		4Q		1Q		2Q

	LIVING BENEFIT FEATURES ACCOUNT VALUE AND NET AMOUNT AT RISK (1):

	Living Benefit Features Account Values by Product Design Type
13,837	Account Values with Auto-Rebalancing Feature	14,307		15,890		16,445		17,653		19,124		22,935
23,329	Account Values without Auto-Rebalancing Feature	21,728		21,209		18,724		15,401		14,087		15,761
37,166	Total	36,035		37,099		35,169		33,054		33,211		38,696

	Living Benefit Features Net Amount at Risk by Product Design Type
101	Net Amount at Risk with Auto-Rebalancing Feature	258		401		1,142		1,328		1,514		1,250
644	Net Amount at Risk without Auto-Rebalancing Feature	1,213		1,366		2,545		4,973		5,917		4,286
745	Total	1,471		1,767		3,687		6,301		7,431		5,536

	DEATH BENEFIT FEATURES ACCOUNT VALUE AND NET AMOUNT AT RISK (1):

	Death Benefit Features Account Values by Product Design Type
13,837	Account Values with Auto-Rebalancing Feature	14,307		15,889		16,445		17,653		19,124		22,935
61,352	Account Values without Auto-Rebalancing Feature	55,911		54,100		47,309		38,733		35,397		38,547
75,189	Total	70,218		69,989		63,754		56,386		54,521		61,482

	Death Benefit Features Net Amount at Risk by Product Design Type
95	Net Amount at Risk with Auto-Rebalancing Feature	381		535		1,451		1,698		1,843		1,328
3,364	Net Amount at Risk without Auto-Rebalancing Feature	5,073		5,247		8,552		14,404		16,093		12,248
3,459	Total	5,454		5,782		10,003		16,102		17,936		13,576


	DEFERRED SALES INDUCEMENTS

	INDIVIDUAL ANNUITIES:
563	Beginning balance	798		878		934		984		1,023		807
325	Capitalization	94		82		84		74		66		82
(85)	Amortization - operating results	(18	)	(27	)	(38	)	(13	)	(281	)	84
—	Amortization - realized investment gains and losses	4		1		4		(22	)	(1	)	10
—	Impact of unrealized losses on AFS securities	—		—		—		—		—		—
(5)	Other	—		—		—		—		—		—
798	Ending balance	878		934		984		1,023		807		983

(1)	At end of period.

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF THIRD QUARTER 2008 AND 2009 ACTUARIAL UPDATES

(in millions)


	Insurance and Annuity Benefits			Interest Credited to Policyholders’ Account Balances			Amortization of Deferred Policy Acquisition Costs			General and Administrative Expenses			Pre-Tax Adjusted Operating Income
	Third Quarter 2008	Third Quarter 2009		Third Quarter 2008	Third Quarter 2009		Third Quarter 2008	Third Quarter 2009		Third Quarter 2008	Third Quarter 2009		Third Quarter 2008		Third Quarter 2009
Actuarial Item:

Annual review of assumptions including: actual and expected fund performance, persistency, investment margins, costs associated with guaranteed benefits, and other elements of gross profits.	265	(157	)	22	(1	)	68	(44	)	25	(5	)	(380	)	207


Reported amount	344	(85	)	141	136		121	11		363	521


Amount excluding impact of items indicated above	79	72		119	137		53	55		338	526

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2008 AND 2009 ACTUARIAL UPDATES

(in millions)


	Policy Charges and Fee Income (1)				Insurance and Annuity Benefits (2)			Amortization of Deferred Policy Acquisition Costs				Pre-Tax Adjusted Operating Income
	Third Quarter 2008		Third Quarter 2009		Third Quarter 2008		Third Quarter 2009	Third Quarter 2008		Third Quarter 2009		Third Quarter 2008	Third Quarter 2009
Actuarial Item:

Annual review of assumptions for mortality, persistency, premium payment pattern, and other elements of expected gross profits, and guaranteed minimum death benefits	(81	)	(70	)	(8	)	10	(152	)	(135	)	79	55


Reported amount	209		181		230		269	(40	)	(102	)


Amount excluding impact of items indicated above	290		251		238		259	112		33

(1)	Includes unearned revenue reserve, subject to amortization based on gross profits.

(2)	Includes terminal dividend reserve, accumulated over estimated contract period.

Page 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

Adjusted operating income is a non-GAAP measure of performance of our Financial Services Businesses that excludes “Realized investment gains (losses), net”, as adjusted, and related charges and adjustments; net investment gains and losses on trading account assets supporting insurance liabilities; change in experience-rated contractholder liabilities due to asset value changes; results of divested businesses and discontinued operations; earnings attributable to noncontrolling interests; and the related tax effects thereof. Adjusted operating income includes equity in earnings of operating joint ventures and the related tax effects thereof. Revenues and benefits and expenses shown as components of adjusted operating income, are presented on the same basis as pre-tax adjusted operating income and are adjusted for the items above as well.

Realized investment gains (losses) representing profit or loss of certain of our businesses which primarily originate investments for sale or syndication to unrelated investors, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Realized investment gains and losses from products that are free standing derivatives or contain embedded derivatives, and from associated derivative portfolios that are part of an economic hedging program related to the risk of those products, are included in adjusted operating income. Adjusted operating income excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged, as well as gains and losses on certain investments that are classified as other trading account assets and debt that is carried at fair value.

Adjusted operating income does not equate to “Income from continuing operations” as determined in accordance with GAAP but is the measure of profit or loss we use to evaluate segment performance. Adjusted operating income is not a substitute for income determined in accordance with GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability factors of our businesses.

2. After-tax adjusted operating income:

Adjusted operating income before taxes, as defined above, less the income tax effect applicable to adjusted operating income before taxes.

3. Annualized New Business Premiums:

Premiums from new sales that are expected to be collected over a one year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Service members’ Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Group disability amounts include long-term care products. Excess (unscheduled) and single premium business for the company’s domestic individual life and international insurance operations are included in annualized new business premiums based on a 10% credit.

4. Assets Under Management:

Fair market value or account value of assets which Prudential manages directly in proprietary products, such as mutual funds and variable annuities, in separate accounts, wrap-fee products and the general account, and assets invested in investment options included in the Company’s products that are managed by third party sub-managers (i.e., the non-proprietary investment options in the Company’s products).

5. Attributed Equity:

Amount of capital assigned to each of the Company’s segments for purposes of measuring segment adjusted operating income before income taxes, established at a level which management considers necessary to support the segment’s risks. Attributed equity for the Financial Services Businesses represents all of the Company’s equity that is not included in the Closed Block Business or attributable to noncontrolling interests.

6. Book value per share of Common Stock:

Equity attributed to Financial Services Businesses divided by the number of Common shares outstanding at end of period, on a diluted basis.

7. Borrowings - Capital Debt:

Borrowings that are or will be used for capital requirements at Prudential Financial, Inc as well as borrowings invested in equity or debt securities of direct or indirect subsidiaries of Prudential Financial, Inc., and subsidiary borrowings, utilized for capital requirements.

8. Borrowings - Investment Related:

Debt issued to finance specific investment assets or portfolios of investment assets, including institutional spread lending investment portfolios, real estate, and real estate related investments held in consolidated joint ventures, as well as institutional and insurance company portfolio cash flow timing differences.

9. Borrowings - Securities Business Related:

Debt issued to finance primarily the liquidity of our broker-dealers, and our capital markets and other securities business related operations including our discontinued commercial mortgage conduit related activities.

10. Borrowings - Specified Other Businesses:

Borrowings associated with consumer banking activities, the individual annuity business, real estate franchises, and relocation services.

Page 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

KEY DEFINITIONS AND FORMULAS

11. Client Assets:

Fair market value of assets in client accounts of International brokerage operations, Prudential Bank and mortgage loan servicing business, that are not included in Assets Under Management. Prudential does not receive a management or administrative fee on these assets, but may receive a fee for executing trades, custody or recordkeeping services.

12. Earned Premiums:

The portion of a premium, net of any amount ceded, that represents coverage already provided or that belongs to the insurer based on the part of the policy period that has passed.

13. Earnings Per Share of Common Stock:

Net income (loss) for the Financial Services Businesses and the Closed Block Business is determined in accordance with GAAP and includes general and administrative expenses charged to each of the businesses based on the Company’s methodology for the allocation of such expenses. Cash flows between the Financial Services Businesses and the Closed Block Business related to administrative expenses are determined by a policy servicing fee arrangement that is based upon insurance and policies in force and statutory cash premiums. To the extent reported administrative expenses vary from these cash flow amounts, the differences are recorded, on an after-tax basis, as direct equity adjustments to the equity balances of each business. The direct equity adjustments modify earnings available to holders of Common Stock and Class B Stock for earnings per share purposes. Earnings per share of Common Stock based on adjusted operating income (loss) of the Financial Services Businesses reflects these adjustments as well.

14. Full Service:

The Full Service line of business provides retirement plan products and services to public, private and not-for-profit organizations. This business provides recordkeeping, plan administration, actuarial advisory services, participant education and communication services, trustee services and institutional and retail investment funds. This business mainly services defined contribution and defined benefit plans; non-qualified plans are also serviced. For clients with both defined contribution and defined benefit plans, integrated recordkeeping services are available. For participants leaving these plans, a range of rollover products are provided through a broker-dealer bank.

15. Full Service Stable Value:

Our Full Service Stable Value products represent fixed rate options on investment funds offered to customers. These products contain an obligation to pay interest at a specified rate for a specific period of time. Upon termination these products repay account balances at market value immediately or may be liquidated at book value over time. Substantially all of these products are either fully or partially participating, with annual or semi-annual resets giving effect to previous investment experience. These products are issued through the general account, separate accounts or client-owned trusts. Profits from partially participating general account products result from the spread between the rate of return on investment assets and the interest rates credited to the customer, less expenses. For fully participating products, generally subject to a minimum interest rate guarantee, we earn fee income.

16. General Account:

Invested assets and policyholder liabilities and reserves for which the Company bears the investment risk. Excludes assets recognized for statutory purposes that are specifically allocated to a separate account. General account assets also include assets of the parent company, Prudential Financial, Inc.

17. Gibraltar Life Advisors:

Insurance representatives for Gibraltar Life.

18. Group Life Insurance and Group Disability Insurance Administrative Operating Expense Ratios:

Ratio of administrative operating expenses (excluding commissions) to gross premiums, policy charges and fee income.

19. Group Life Insurance and Group Disability Insurance Benefits Ratios:

Ratio of policyholder benefits to earned premiums, policy charges and fee income.

20. Individual Annuity Account Values in General Account and Separate Account:

Amounts represent the breakdown of invested customer funds in annuities either written or reinsured by the Company.

21. Individual Annuities - Net Amounts at Risk:

Living Benefit Features - For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance.

Death Benefit Features - Net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.

Page 40

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

2009 KEY DEFINITIONS AND FORMULAS

22. Insurance and Annuity Benefits:

Total death benefits, annuity benefits, disability benefits, other policy benefits, and losses paid or incurred, under insurance and annuity contracts, plus the change in reserves for future policy benefits, losses and loss adjustment expenses.

23. International Life Planners:

Insurance agents in our insurance operations outside the United States, excluding Gibraltar Life Advisors. Excludes Life Planners associated with discontinued Philippine operations.

24. Non-recourse and Limited-recourse Debt:

Limited and non-recourse borrowing is where the holder is entitled to collect only against the assets pledged to the debt as collateral or has only very limited rights to collect against other assets.

25. Operating return on average equity (based on adjusted operating income):

Adjusted operating income after-tax (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average attributed equity for the Financial Services Businesses excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension/postretirement benefits.

An alternative measure to operating return on average equity (based on adjusted operating income) is return on average equity (based on income from continuing operations). Return on average equity (based on income from continuing operations) represents income from continuing operations after-tax attributable to Prudential Financial, Inc. as determined in accordance with GAAP (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average total attributed equity for the Financial Services Businesses. Return on average equity (based on income from continuing operations) is 12.39% for the nine months ended September 30, 2009, 3.48% for the nine months ended September 30, 2008, 21.11% for the three months ended September 30, 2009, 12.79% for the three months ended June 30, 2009, .14% for the three months ended March 31, 2009, -39.94% for the three months ended December 31, 2008, -2.30% for the three months ended September 30, 2008.

26. Policy Persistency - Group Insurance:

Percentage of the premiums in force at the end of the prior year that are still in force at the end of the period (excluding Service members’ Group Life Insurance and Prudential Employee Benefit Plan).

27. Policy Persistency - International Insurance:

13 month persistency represents the percentage of policies issued that are still in force at the beginning of their second policy year. 25 month persistency represents the percentage of policies issued that are still in force at the beginning of their third policy year.

28. Prudential Agents:

Insurance agents in our insurance operations in the United States.

29. Prudential Agent productivity:

Commissions on new sales of all products by Prudential Agents under contract for the entire period, divided by the number of those Prudential Agents. Excludes commissions on new sales by Prudential Agents hired or departed during the period. For interim reporting periods, the productivity measures are annualized.

30. Ratio of capital debt to total capitalization:

For the purposes of this ratio, we measure “debt” as the sum of senior debt supporting capital needs and 25% of Junior Subordinated Notes supporting capital needs, and we measure “total capitalization” as the sum of senior debt supporting capital needs, 100% of Junior Subordinated Notes supporting capital needs, and attributed equity of the Financial Services Businesses excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits.

31. Separate Accounts:

Assets of our insurance companies allocated under certain policies and contracts that are segregated from the general account and other separate accounts. The policyholder or contractholder predominantly bears the risk of investments held in a separate account. 32. Wrap-Fee Products: Investment products generating asset-based fees in which the funds of the customer are generally invested in other investment products such as mutual funds.

32. Wrap-Fee Products:

Investment products generating asset-based fees in which the funds of the cusomter are generally invested in other investment products such as mutual funds.

Page 41

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2009

LOGO

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of November 4, 2009


	A.M. Best	Standard & Poor’s	Moody’s	Fitch Ratings
	A.M. Best	Standard & Poor’s	Moody’s	Fitch Ratings
The Prudential Insurance Company of America	A+	AA-	A2	A+
PRUCO Life Insurance Company	A+	AA-	A2	A+
PRUCO Life Insurance Company of New Jersey	A+	AA-	NR*	A+
Prudential Annuities Life Assurance Corporation	A+	AA-	NR	A+
Prudential Retirement Insurance and Annuity Company	A+	AA-	A2	A+
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)	NR	AA-	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	AA-	A2	NR

CREDIT RATINGS:
as of November 4, 2009

Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-1	P-2	F2
Long-Term Senior Debt (1)	a-	A	Baa2	BBB
Junior Subordinated Long-Term Debt	bbb	BBB+	Baa3	BBB-

The Prudential Insurance Company of America :
Capital and surplus notes	a	A	Baa1	A-

Prudential Funding, LLC:
Short-Term Debt	AMB-1	A-1+	P-2	F1
Long-Term Senior Debt	a+	AA-	A3	A

PRICOA Global Funding I
Long-Term Senior Debt	aa-	AA-	A2	A+

*	NR indicates not rated.

(1)	Includes the retail medium-term notes program.

INVESTOR INFORMATION:


Corporate Offices:		Investor Information Hotline:
Prudential Financial, Inc.		Dial 877-998-ROCK for additional printed information or inquiries.
751 Broad Street
Newark, New Jersey 07102		Web Site:
		www.prudential.com

Common Stock:

Common Stock of Prudential Financial, Inc. is traded on the New York Stock Exchange under the symbol PRU.

Page 42

PRUDENTIAL FINANCIAL INC - FORM 8-K - EX-99.1 - QUARTERLY FINANCIAL SUPPLEMENT - November 4, 2009

Attached files