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

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8-K - FORM 8-K - PRUDENTIAL FINANCIAL INC	d8k.htm
EX-99.0 - NEWS RELEASE OF PRUDENTIAL FINANCIAL, INC., DATED FEBRUARY 9, 2011 - PRUDENTIAL FINANCIAL INC	dex990.htm

Exhibit 99.1

Prudential Financial, Inc. (PRU)

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Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

FOURTH QUARTER 2010

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.

February 9, 2011

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

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

RECLASSIFIED SUPPLEMENTARY INFORMATION		36

KEY DEFINITIONS AND FORMULAS		37-39

RATINGS AND INVESTOR INFORMATION		40

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date						%			2009			2010
2010			2009			Change			4Q			1Q			2Q			3Q			4Q

								*Financial Services Businesses:*
								Pre-tax adjusted operating income (loss) by division:
	2,105			1,306			61%	U.S. Retirement Solutions and Investment Management Division		323			496			130			855			624
	715			893			-20%	U.S. Individual Life and Group Insurance Division		210			144			120			251			200
	2,103			1,870			12%	International Insurance and Investments Division		455			496			478			531			598
	(871	)		(795	)		-10%	Corporate and other operations		(220	)		(205	)		(175	)		(260	)		(231	)

	4,052			3,274			24%	Total pre-tax adjusted operating income		768			931			553			1,377			1,191
	1,084			826			31%	Income taxes, applicable to adjusted operating income		211			247			132			375			330

	2,968			2,448			21%	Financial Services Businesses after-tax adjusted operating income		557			684			421			1,002			861


								Reconciling items:
	(72	)		(1,711	)		96%	Realized investment gains (losses), net, and related charges and adjustments		(49	)		(63	)		625			278			(912	)
	501			1,601			-69%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		76			252			79			388			(218	)
	(631	)		(899	)		30%	Change in experience-rated contractholder liabilities due to asset value changes		(49	)		(320	)		(144	)		(367	)		200
	(55	)		2,131			-103%	Divested businesses		2,162			(7	)		(7	)		(32	)		(9	)
	(98	)		(2,364	)		96%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(2,289	)		(36	)		18			(18	)		(62	)

	(355	)		(1,242	)		71%	Total reconciling items, before income taxes		(149	)		(174	)		571			249			(1,001	)
	(19	)		(687	)		97%	Income taxes, not applicable to adjusted operating income		38			8			176			107			(310	)

	(336	)		(555	)		39%	Total reconciling items, after income taxes		(187	)		(182	)		395			142			(691	)

	2,632			1,893			39%	Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		370			502			816			1,144			170
	73			1,557			-95%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		1,483			36			(18	)		16			39

	2,705			3,450			-22%	Income from continuing operations attributable to Prudential Financial, Inc.		1,853			538			798			1,160			209
	11			(34	)		132%	Earnings attributable to noncontrolling interests		10			(26	)		27			(2	)		12

	2,716			3,416			-20%	Income from continuing operations (after-tax) of Financial Services Businesses		1,863			512			825			1,158			221
	9			(39	)		123%	Income (loss) from discontinued operations, net of taxes		(65	)		(2	)		—			7			4

	2,725			3,377			-19%	Net income of Financial Services Businesses		1,798			510			825			1,165			225
	11			(34)			132%	Less: Income (loss) attributable to noncontrolling interests		10			(26)			27			(2)			12
	2,714			3,411			-20%	Net income of Financial Services Businesses attributable to Prudential Financial, Inc.		1,788			536			798			1,167			213
	11.05%			11.12%				Operating Return on Average Equity (based on adjusted operating income)		9.18%			10.81%			6.54%			14.63%			12.02%

								*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
	2,714			3,411				Net income of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		1,788			536			798			1,167			213
	481			(287	)			Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		77			161			279			77			(36	)

	3,195			3,124				Consolidated net income attributable to Prudential Financial, Inc.		1,865			697			1,077			1,244			177

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date							2009			2010
2010			2009				4Q			1Q			2Q			3Q			4Q

						Earnings per share of Common Stock (diluted):
	6.27			5.51		Financial Services Businesses after-tax adjusted operating income		1.20			1.46			0.91			2.12			1.78

						Reconciling items:
	(0.15	)		(3.82	)	Realized investment gains (losses), net, and related charges and adjustments		(0.10	)		(0.13	)		1.32			0.59			(1.89	)
	1.05			3.57		Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.16			0.53			0.17			0.82			(0.45	)
	(1.33	)		(2.01	)	Change in experience-rated contractholder liabilities due to asset value changes		(0.10	)		(0.68	)		(0.30	)		(0.78	)		0.41
	(0.11	)		4.75		Divested businesses		4.60			(0.01	)		(0.01	)		(0.07	)		(0.02	)
	0.01			(0.02	)	Difference in earnings allocated to participating unvested share-based payment awards		(0.03	)		—			(0.01	)		—			0.01

	(0.53	)		2.47		Total reconciling items, before income taxes		4.53			(0.29	)		1.17			0.56			(1.94	)
	0.01			0.26		Income taxes, not applicable to adjusted operating income		1.81			0.01			0.38			0.23			(0.60	)

	(0.54	)		2.21		Total reconciling items, after income taxes		2.72			(0.30	)		0.79			0.33			(1.34	)

	5.73			7.72		Income from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		3.92			1.16			1.70			2.45			0.44
	0.02			(0.09	)	Income (loss) from discontinued operations, net of taxes		(0.14	)		(0.01	)		—			0.01			0.01

	5.75			7.63		Net income of Financial Services Businesses attributable to Prudential Financial, Inc.		3.78			1.15			1.70			2.46			0.45


	466.8			444.6		Weighted average number of outstanding Common shares (basic)		461.8			463.0			464.3			464.8			475.1

	475.4			448.2		Weighted average number of outstanding Common shares (diluted) (1)		470.3			471.5			473.3			473.2			483.5

	36			43		Direct equity adjustments for earnings per share calculation		9			10			10			9			7

	17			5		Earnings related to interest, net of tax, on exchangeable surplus notes (1)		4			4			5			4			4

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	38			28		Financial Services Businesses after-tax adjusted operating income		7			8			6			13			11
	35			39		Income from continuing operations (after-tax) of Financial Services Businesses		21			7			10			15			7

(1)

In calculating diluted earnings per share under the if-converted method, the potential shares that would be issued related to the exchangeable surplus notes assuming a hypothetical exchange, weighted for the period the notes are outstanding, is added to the denominator, and interest expense, net of tax, is added to the numerator, if the overall effect is dilutive. For the three months ended December 31, 2010, the hypothetical impact of these shares was antidilutive and therefore excluded from the diluted earnings per share calculation for GAAP measures. The weighted average number of outstanding common shares used in the diluted earnings per share calculation for the three months ended December 31, 2010 for GAAP measures is 478.4 million.

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date					2009		2010
2010		2009			4Q		1Q		2Q		3Q		4Q

				*Financial Services Businesses Capitalization Data (1):*
				Senior Debt:
				Short-term debt		3,122		3,066		2,219		2,572		1,982
				Long-term debt		17,769		18,373		19,130		19,068		20,384
				Junior Subordinated Long-Term Debt		1,518		1,518		1,519		1,519		1,519

				Attributed Equity:
				Including accumulated other comprehensive income		24,154		25,721		28,233		32,007		31,032
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		25,399		25,961		26,758		28,507		29,248
				Excluding total accumulated other comprehensive income		24,728		25,318		26,193		27,418		28,100

				Total Capitalization:
				Including accumulated other comprehensive income		43,441		45,612		48,882		52,594		52,935
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		44,686		45,852		47,407		49,094		51,151
				Excluding total accumulated other comprehensive income		44,015		45,209		46,842		48,005		50,003

				Book value per share of Common Stock:
				Including accumulated other comprehensive income		51.52		54.63		59.94		67.81		63.11
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		54.18		55.14		56.81		60.40		59.48
				Excluding total accumulated other comprehensive income		52.75		53.78		55.61		58.09		57.15

				Number of diluted shares at end of period (2)		468.8		470.8		471.0		472.0		491.7

				*Common Stock Price Range (based on closing price):*
	65.82		54.63	High		52.82		60.50		65.82		59.54		59.95
	47.02		11.29	Low		44.64		47.02		53.66		49.65		50.68
	58.71		49.76	Close		49.76		60.50		53.66		54.18		58.71

				*Common Stock market capitalization (1)*		22,995		28,048		24,923		25,191		28,404

(1)	As of end of period.

(2)	The number of diluted shares at end of period excludes the impact of exchangeable surplus notes due to the anti-dilutive impact of conversion at $98.78 per share.

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

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OPERATIONS HIGHLIGHTS


Year-to-date					2009		2010
2010		2009			4Q		1Q		2Q		3Q		4Q

				*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		188.4		193.3		203.5		222.1		235.3
				Retail customers		84.4		89.0		84.2		92.7		101.2
				General account		184.0		189.8		196.6		203.3		200.8

				Total Investment Management and Advisory Services		456.8		472.1		484.3		518.1		537.3
				Non-proprietary assets under management		122.3		126.8		118.3		136.2		149.8

				Total managed by U.S. Retirement Solutions and Investment Management Division		579.1		598.9		602.6		654.3		687.1
				Managed by U.S. Individual Life and Group Insurance Division		12.4		13.1		13.2		13.0		13.1
				Managed by International Insurance and Investments Division		75.8		81.3		74.0		82.8		83.8

				Total assets under management		667.3		693.3		689.8		750.1		784.0
				Client assets under administration (3)		119.5		78.2		71.1		80.8		84.1

				Total assets under management and administration		786.8		771.5		760.9		830.9		868.1


				Assets managed or administered for customers outside of the United States at end of period		130.0		137.6		129.3		147.6		151.1

				*Distribution Representatives (1):*
				Prudential Agents		2,447		2,499		2,480		2,478		2,471
				International Life Planners		6,609		6,649		6,605		6,608		6,565
				Gibraltar Life Advisors		6,398		5,971		6,101		5,913		6,281

	53		51	*Prudential Agent productivity ($ thousands)*		56		43		52		49		68

(1)	As of end of period.

(2)	At fair market value.

(3)	Amounts reported herein reflect certain reclassifications to conform to current reporting practices.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

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COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date						%			2009			2010
2010			2009			Change			4Q			1Q			2Q			3Q			4Q

								Revenues (1):
	15,251			13,294			15%	Premiums		3,352			3,531			3,808			3,969			3,943
	3,480			3,033			15%	Policy charges and fee income		840			860			888			803			929
	8,628			8,213			5%	Net investment income		2,055			2,075			2,111			2,202			2,240
	3,623			2,646			37%	Asset management fees, commissions and other income		747			770			931			902			1,020

	30,982			27,186			14%	Total revenues		6,994			7,236			7,738			7,876			8,132


								Benefits and Expenses (1):
	14,894			12,709			17%	Insurance and annuity benefits		3,202			3,431			4,000			3,756			3,707
	3,418			3,376			1%	Interest credited to policyholders’ account balances		853			846			875			820			877
	1,049			955			10%	Interest expense		241			251			258			267			273
	(3,092	)		(2,769	)		-12%	Deferral of acquisition costs		(768	)		(717	)		(746	)		(780	)		(849	)
	1,368			1,266			8%	Amortization of acquisition costs		394			352			539			99			378
	9,293			8,375			11%	General and administrative expenses		2,304			2,142			2,259			2,337			2,555

	26,930			23,912			13%	Total benefits and expenses		6,226			6,305			7,185			6,499			6,941

	4,052			3,274			24%	Adjusted operating income before income taxes		768			931			553			1,377			1,191


								Reconciling items:
	106			(1,219	)		109%	Realized investment gains (losses), net, and related adjustments		(118	)		64			1,257			160			(1,375	)
	(178	)		(492	)		64%	Related charges		69			(127	)		(632	)		118			463

	(72	)		(1,711	)		96%	Total realized investment gains (losses), net, and related charges and adjustments		(49	)		(63	)		625			278			(912	)

	501			1,601			-69%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		76			252			79			388			(218	)
	(631	)		(899	)		30%	Change in experience-rated contractholder liabilities due to asset value changes		(49	)		(320	)		(144	)		(367	)		200
	(55	)		2,131			-103%	Divested businesses		2,162			(7	)		(7	)		(32	)		(9	)
	(98	)		(2,364	)		96%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(2,289	)		(36	)		18			(18	)		(62	)

	(355	)		(1,242	)		71%	Total reconciling items, before income taxes		(149	)		(174	)		571			249			(1,001	)

	3,697			2,032			82%	Income from continuing operations before income taxes and equity in earnings of operating joint ventures		619			757			1,124			1,626			190
	1,065			139			666%	Income tax expense		249			255			308			482			20

	2,632			1,893			39%	Income from continuing operations before equity in earnings of operating joint ventures		370			502			816			1,144			170

(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

Fourth Quarter 2010

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COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	12/31/2009			3/31/2010		6/30/2010		9/30/2010		12/31/2010

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $131,727; $134,359; $134,883; $141,794; $144,248)		132,694			136,792		140,610		151,227		149,806
Fixed maturities, held to maturity, at amortized cost (fair value $5,197; $5,081; $5,209; $5,522; $5,477)		5,120			5,016		5,023		5,233		5,226
Trading account assets supporting insurance liabilities, at fair value		16,020			16,683		16,733		17,750		17,771
Other trading account assets, at fair value		2,866			3,222		5,358		5,512		4,069
Equity securities, available for sale, at fair value (cost $3,459; $3,367; $3,340; $3,547; $3,605)		3,810			3,824		3,747		4,021		4,148
Commercial mortgage and other loans		23,021			22,557		23,097		23,466		23,324
Policy loans		4,728			4,825		4,915		5,147		5,290
Other long-term investments		4,359			4,340		4,321		4,572		4,589
Short-term investments		5,487			5,826		5,673		4,646		4,133

Total investments		198,105			203,085		209,477		221,574		218,356
Cash and cash equivalents		12,451			8,996		10,751		11,019		12,447
Accrued investment income		1,668			1,657		1,682		1,721		1,734
Deferred policy acquisition costs		13,751			13,962		13,432		14,291		15,672
Other assets		15,222			15,597		14,784		15,155		16,161
Separate account assets		174,074			182,621		179,260		194,463		207,776

Total assets		415,271			425,918		429,386		458,223		472,146


Liabilities:
Future policy benefits		73,931			74,103		76,982		82,063		82,242
Policyholders’ account balances		96,078			96,082		97,033		99,753		100,905
Securities sold under agreements to repurchase		2,985			2,969		2,683		2,628		2,557
Cash collateral for loaned securities		2,323			2,380		1,866		1,831		1,614
Income taxes		4,665			4,563		5,747		7,438		6,736
Senior short-term debt		3,122			3,066		2,219		2,572		1,982
Senior long-term debt		17,769			18,373		19,130		19,068		20,384
Junior subordinated long-term debt		1,518			1,518		1,519		1,519		1,519
Other liabilities		14,118			14,016		14,169		14,359		14,886
Separate account liabilities		174,074			182,621		179,260		194,463		207,776

Total liabilities		390,583			399,691		400,608		425,694		440,601


Attributed Equity:
Accumulated other comprehensive income (loss)		(574	)		403		2,040		4,589		2,932
Other attributed equity		24,728			25,318		26,193		27,418		28,100

Total attributed equity		24,154			25,721		28,233		32,007		31,032

Noncontrolling Interest		534			506		545		522		513

Total Equity		24,688			26,227		28,778		32,529		31,545

Total liabilities and equity		415,271			425,918		429,386		458,223		472,146

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended December 31, 2010
	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		3,943			295			1,239			2,414			(5	)
Policy charges and fee income		929			456			372			109			(8	)
Net investment income		2,240			1,076			408			661			95
Asset management fees, commissions and other income		1,020			864			85			149			(78	)

Total revenues		8,132			2,691			2,104			3,333			4


Benefits and Expenses (1):
Insurance and annuity benefits		3,707			458			1,319			1,929			1
Interest credited to policyholders’ account balances		877			609			131			150			(13	)
Interest expense		273			27			45			1			200
Deferral of acquisition costs		(849	)		(373	)		(105	)		(379	)		8
Amortization of acquisition costs		378			86			88			212			(8	)
General and administrative expenses		2,555			1,260			426			822			47

Total benefits and expenses		6,941			2,067			1,904			2,735			235


Adjusted operating income (loss) before income taxes		1,191			624			200			598			(231	)


	Quarter Ended December 31, 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		3,352			136			1,165			2,053			(2	)
Policy charges and fee income		840			358			407			94			(19	)
Net investment income		2,055			1,054			368			564			69
Asset management fees, commissions and other income		747			644			82			93			(72	)

Total revenues		6,994			2,192			2,022			2,804			(24	)


Benefits and Expenses (1):
Insurance and annuity benefits		3,202			360			1,234			1,601			7
Interest credited to policyholders’ account balances		853			618			128			128			(21	)
Interest expense		241			13			41			1			186
Deferral of acquisition costs		(768	)		(310	)		(133	)		(338	)		13
Amortization of acquisition costs		394			107			96			207			(16	)
General and administrative expenses		2,304			1,081			446			750			27

Total benefits and expenses		6,226			1,869			1,812			2,349			196


Adjusted operating income (loss) before income taxes		768			323			210			455			(220	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Twelve Months Ended December 31, 2010
	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		15,251			1,232			4,921			9,116			(18	)
Policy charges and fee income		3,480			1,662			1,453			407			(42	)
Net investment income		8,628			4,237			1,571			2,462			358
Asset management fees, commissions and other income		3,623			3,135			328			453			(293	)

Total revenues		30,982			10,266			8,273			12,438			5


Benefits and Expenses (1):
Insurance and annuity benefits		14,894			2,139			5,378			7,315			62
Interest credited to policyholders’ account balances		3,418			2,415			511			562			(70	)
Interest expense		1,049			96			162			3			788
Deferral of acquisition costs		(3,092	)		(1,290	)		(442	)		(1,402	)		42
Amortization of acquisition costs		1,368			305			243			855			(35	)
General and administrative expenses		9,293			4,496			1,706			3,002			89

Total benefits and expenses		26,930			8,161			7,558			10,335			876


Adjusted operating income (loss) before income taxes		4,052			2,105			715			2,103			(871	)


	Twelve Months Ended December 31, 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		13,294			690			4,737			7,878			(11	)
Policy charges and fee income		3,033			1,189			1,509			374			(39	)
Net investment income		8,213			4,378			1,432			2,162			241
Asset management fees, commissions and other income		2,646			2,174			375			353			(256	)

Total revenues		27,186			8,431			8,053			10,767			(65	)


Benefits and Expenses (1):
Insurance and annuity benefits		12,709			1,469			5,058			6,139			43
Interest credited to policyholders’ account balances		3,376			2,525			492			480			(121	)
Interest expense		955			68			181			4			702
Deferral of acquisition costs		(2,769	)		(1,023	)		(537	)		(1,248	)		39
Amortization of acquisition costs		1,266			285			208			798			(25	)
General and administrative expenses		8,375			3,801			1,758			2,724			92

Total benefits and expenses		23,912			7,125			7,160			8,897			730


Adjusted operating income (loss) before income taxes		3,274			1,306			893			1,870			(795	)

(1)

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of December 31, 2010
	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		218,356			88,387		32,408		90,024		7,537
Deferred policy acquisition costs		15,672			3,675		4,653		7,494		(150	)
Other assets		30,342			7,832		3,133		10,575		8,802
Separate account assets		207,776			172,759		36,427		693		(2,103	)

Total assets		472,146			272,653		76,621		108,786		14,086


Liabilities:
Future policy benefits		82,242			16,227		10,055		55,556		404
Policyholders’ account balances		100,905			57,179		15,812		28,919		(1,005	)
Debt		23,885			4,429		5,644		805		13,007
Other liabilities		25,793			8,260		3,590		11,892		2,051
Separate account liabilities		207,776			172,759		36,427		693		(2,103	)

Total liabilities		440,601			258,854		71,528		97,865		12,354


Attributed Equity:
Accumulated other comprehensive income (loss)		2,932			1,430		765		1,868		(1,131	)
Other attributed equity		28,100			11,786		4,328		9,046		2,940

Total attributed equity		31,032			13,216		5,093		10,914		1,809

Noncontrolling Interest		513			583		—		7		(77	)

Total Equity		31,545			13,799		5,093		10,921		1,732


Total liabilities and equity		472,146			272,653		76,621		108,786		14,086


	As of December 31, 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		198,105			86,016		28,196		76,367		7,526
Deferred policy acquisition costs		13,751			2,722		4,550		6,627		(148	)
Other assets		29,341			7,806		3,006		9,131		9,398
Separate account assets		174,074			141,330		34,100		462		(1,818	)

Total assets		415,271			237,874		69,852		92,587		14,958


Liabilities:
Future policy benefits		73,931			15,335		9,122		49,079		395
Policyholders’ account balances		96,078			58,154		14,772		24,966		(1,814	)
Debt		22,409			3,570		4,994		490		13,355
Other liabilities		24,091			7,747		2,646		9,567		4,131
Separate account liabilities		174,074			141,330		34,100		462		(1,818	)

Total liabilities		390,583			226,136		65,634		84,564		14,249


Attributed Equity:
Accumulated other comprehensive income (loss)		(574	)		532		148		281		(1,535	)
Other attributed equity		24,728			10,612		4,070		7,735		2,311

Total attributed equity		24,154			11,144		4,218		8,016		776

Noncontrolling Interest		534			594		—		7		(67	)

Total Equity		24,688			11,738		4,218		8,023		709


Total liabilities and equity		415,271			237,874		69,852		92,587		14,958

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of December 31, 2010									As of December 31, 2009
	Senior debt				Junior Subordinated Long-term Debt		Total Debt			Senior debt				Junior Subordinated Long-term Debt		Total 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		371		6,873		1,519		8,763			389		6,546		1,518		8,453
Investment related		803		8,766		—		9,569			1,247		7,998		—		9,245
Securities business related		691		1,539		—		2,230			1,015		1,283		—		2,298
Specified other businesses		117		3,206		—		3,323			471		1,513		—		1,984
Limited recourse and non-recourse borrowing		—		—		—		—			—		429		—		429

Total debt - Financial Services Businesses		1,982		20,384		1,519		23,885			3,122		17,769		1,518		22,409

Ratio of long-term and short-term capital debt to capitalization (1)								22.1	%								21.6	%

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

Total debt		—		1,750		—		1,750			—		1,750		—		1,750


	As of December 31, 2010									As of December 31, 2009
	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		7,648		1,064		51		8,763			6,973		1,335		145		8,453
Investment related		5,686		654		3,229		9,569			4,760		1,212		3,273		9,245
Securities business related		1,673		552		5		2,230			1,422		826		50		2,298
Specified other businesses		2,603		720		—		3,323			1,513		471		—		1,984
Limited recourse and non-recourse borrowing		—		—		—		—			—		—		429		429

Total debt - Financial Services Businesses		17,610		2,990		3,285		23,885			14,668		3,844		3,897		22,409

(1)

For the purposes of calculating the ratio of capital debt to capitalization, Junior Subordinated Notes are considered 25% equity and 75% debt effective June 30, 2010. For the calculation of this ratio for periods prior to June 30, 2010, 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 $942 million of Surplus Notes for December 31, 2010 and $941 million for December 31, 2009.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

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

(in millions)


Year-to-date					% Change			2009			2010
2010		2009			% Change			4Q			1Q			2Q			3Q			4Q

							Revenues (1):
	1,232		690			79%	Premiums		136			146			391			400			295
	1,662		1,189			40%	Policy charges and fee income		358			398			393			415			456
	4,237		4,378			-3%	Net investment income		1,054			1,045			1,050			1,066			1,076
	3,135		2,174			44%	Asset management fees, commissions and other income		644			678			798			795			864

	10,266		8,431			22%	Total revenues		2,192			2,267			2,632			2,676			2,691


							Benefits and Expenses (1):
	2,139		1,469			46%	Insurance and annuity benefits		360			335			839			507			458
	2,415		2,525			-4%	Interest credited to policyholders’ account balances		618			608			640			558			609
	96		68			41%	Interest expense		13			22			23			24			27
	(1,290)		(1,023	)		-26%	Deferral of acquisition costs		(310	)		(269	)		(323	)		(325	)		(373	)
	305		285			7%	Amortization of acquisition costs		107			85			186			(52	)		86
	4,496		3,801			18%	General and administrative expenses		1,081			990			1,137			1,109			1,260

	8,161		7,125			15%	Total benefits and expenses		1,869			1,771			2,502			1,821			2,067

	2,105		1,306			61%	Adjusted operating income before income taxes		323			496			130			855			624

(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

Fourth Quarter 2010

LOGO

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

(in millions)


	Twelve Months Ended December 31, 2010												Quarter Ended December 31, 2010
	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		1,232			166			1,066			—			295			37			258			—
Policy charges and fee income		1,662			1,461			201			—			456			406			50			—
Net investment income		4,237			878			3,238			121			1,076			218			821			37
Asset management fees, commissions and other income		3,135			690			678			1,767			864			200			179			485

Total revenues		10,266			3,195			5,183			1,888			2,691			861			1,308			522


Benefits and Expenses (1):
Insurance and annuity benefits		2,139			291			1,848			—			458			3			455			—
Interest credited to policyholders’ account balances		2,415			581			1,834			—			609			144			465			—
Interest expense		96			66			17			13			27			20			4			3
Deferral of acquisition costs		(1,290	)		(1,214	)		(52	)		(24	)		(373	)		(354	)		(13	)		(6	)
Amortization of acquisition costs		305			260			20			25			86			75			5			6
General and administrative expenses (2)		4,496			2,165			944			1,387			1,260			628			245			387

Total benefits and expenses		8,161			2,149			4,611			1,401			2,067			516			1,161			390

Adjusted operating income before income taxes		2,105			1,046			572			487			624			345			147			132


	Twelve Months Ended December 31, 2009												Quarter Ended December 31, 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		690			88			602			—			136			27			109			—
Policy charges and fee income		1,189			991			198			—			358			306			52			—
Net investment income		4,378			979			3,309			90			1,054			218			802			34
Asset management fees, commissions and other income		2,174			457			550			1,167			644			146			171			327

Total revenues		8,431			2,515			4,659			1,257			2,192			697			1,134			361


Benefits and Expenses (1):
Insurance and annuity benefits		1,469			89			1,380			—			360			49			311			—
Interest credited to policyholders’ account balances		2,525			618			1,907			—			618			151			467			—
Interest expense		68			13			29			26			13			4			5			4
Deferral of acquisition costs		(1,023	)		(953	)		(48	)		(22	)		(310	)		(297	)		(6	)		(7	)
Amortization of acquisition costs		285			243			24			18			107			99			3			5
General and administrative expenses (2)		3,801			1,748			873			1,180			1,081			494			222			365

Total benefits and expenses		7,125			1,758			4,165			1,202			1,869			500			1,002			367

Adjusted operating income (loss) before income taxes		1,306			757			494			55			323			197			132			(6	)

(1)

(2)

General and administrative expenses for Individual Annuities include $8 million for the twelve months ended December 31, 2010 and $86 million for the twelve months ended December 31, 2009, $2 million for the quarter ended December 31, 2010 and $3 million for the quarter ended December 31, 2009 for the amortization, net of interest, of value of business acquired (VOBA).

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

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

(in millions)


Year-to-date						2009			2010
2010		2009				4Q			1Q			2Q			3Q			4Q

					SALES AND ACCOUNT VALUES:

					Variable Annuities:
	80,519		60,007		Beginning total account value		75,611			80,519			85,379			83,593			93,375
	21,651		16,117		Sales		4,802			4,867			5,308			5,368			6,108
	(6,923)		(5,776	)	Surrenders and withdrawals		(1,574	)		(1,670	)		(1,714	)		(1,660	)		(1,879	)

	14,728		10,341		Net sales		3,228			3,197			3,594			3,708			4,229
	(981)		(988	)	Benefit payments		(257	)		(266	)		(203	)		(260	)		(252	)

	13,747		9,353		Net flows		2,971			2,931			3,391			3,448			3,977
	9,748		12,220		Change in market value, interest credited, and other (1)		2,273			2,288			(4,784	)		6,756			5,488
	(1,666)		(1,061	)	Policy charges		(336	)		(359	)		(393	)		(422	)		(492	)

	102,348		80,519		Ending total account value		80,519			85,379			83,593			93,375			102,348


					Fixed Annuities:
	3,452		3,295		Beginning total account value		3,213			3,452			3,739			3,766			3,828
	103		179		Sales		37			30			32			29			12
	(215)		(258	)	Surrenders and withdrawals		(57	)		(48	)		(78	)		(44	)		(45	)

	(112)		(79	)	Net redemptions		(20	)		(18	)		(46	)		(15	)		(33	)
	(267)		(160	)	Benefit payments		(39	)		(57	)		(80	)		(62	)		(68	)

	(379)		(239	)	Net flows		(59	)		(75	)		(126	)		(77	)		(101	)
	766		397		Interest credited and other (1)		298			363			153			139			111
	(2)		(1	)	Policy charges		—			(1	)		—			—			(1	)

	3,837		3,452		Ending total account value		3,452			3,739			3,766			3,828			3,837



					SALES BY DISTRIBUTION CHANNEL:

					Variable and Fixed Annuities (2):
	2,847		2,395		Insurance Agents		664			623			713			694			817
	4,612		3,440		Wirehouses		1,052			1,097			1,114			1,101			1,300
	10,611		8,644		Independent Financial Planners (3)		2,470			2,460			2,653			2,618			2,880
	3,684		1,817		Bank Distribution (3)		653			717			860			984			1,123

	21,754		16,296		Total		4,839			4,897			5,340			5,397			6,120

(1)

Includes cumulative reclassifications during the first quarter of 2010 and the fourth quarter of 2009 of $267 million and $259 million, respectively, from variable annuity to fixed annuity account values to conform presentation of certain contracts in annuitization status to current reporting practices.

(2)	Amounts represent gross sales.

(3)	Sales from the bank distribution channel, previously included within sales from the independent financial planners channel, is being shown separately in order to provide a more meaningful presentation.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

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

(in millions)


Year-to-date							2009			2010
2010			2009				4Q			1Q			2Q			3Q			4Q

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	14,606			18,110		Beginning balance		15,308			14,606			14,190			14,398			13,693
	2,491			1,483		Premiums and deposits		566			604			627			691			569
	(1,480	)		(1,522	)	Surrenders and withdrawals		(369	)		(364	)		(402	)		(352	)		(362	)

	1,011			(39	)	Net sales (redemptions)		197			240			225			339			207
	(351	)		(349	)	Benefit payments		(85	)		(95	)		(81	)		(86	)		(89	)

	660			(388	)	Net flows		112			145			144			253			118
	561			556		Interest credited and other		130			137			144			151			129
	(2,602	)		(3,671	)	Net transfers to separate account		(944	)		(697	)		(80	)		(1,109	)		(716	)
	(2	)		(1	)	Policy charges		—			(1	)		—			—			(1	)

	13,223			14,606		Ending balance		14,606			14,190			14,398			13,693			13,223


						Account Values in Separate Account:
	69,365			45,192		Beginning balance		63,516			69,365			74,928			72,961			83,510
	19,263			14,813		Premiums and deposits		4,273			4,293			4,713			4,706			5,551
	(5,658	)		(4,512	)	Surrenders and withdrawals		(1,262	)		(1,354	)		(1,390	)		(1,352	)		(1,562	)

	13,605			10,301		Net sales		3,011			2,939			3,323			3,354			3,989
	(897	)		(799	)	Benefit payments		(211	)		(228	)		(202	)		(236	)		(231	)

	12,708			9,502		Net flows		2,800			2,711			3,121			3,118			3,758
	9,953			12,061		Change in market value, interest credited and other		2,441			2,514			(4,775	)		6,744			5,470
	2,602			3,671		Net transfers from general account		944			697			80			1,109			716
	(1,666	)		(1,061	)	Policy charges		(336	)		(359	)		(393	)		(422	)		(492	)

	92,962			69,365		Ending balance		69,365			74,928			72,961			83,510			92,962

(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

Fourth Quarter 2010

LOGO

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

(in millions)


	2009		2010
	4Q		1Q		2Q		3Q		4Q

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

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		9,952		9,906		9,408		9,687		9,873
Guaranteed minimum withdrawal benefits		1,412		1,402		1,250		1,302		1,315
Guaranteed minimum income benefits		4,677		4,693		4,181		4,416		4,532
Guaranteed minimum withdrawal & income benefits		36,430		41,511		43,395		51,457		59,351

Total		52,471		57,512		58,234		66,862		75,071


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		34,901		39,786		42,166		49,721		57,336
Account Values without Auto-Rebalancing Feature		17,570		17,726		16,068		17,141		17,735

Total		52,471		57,512		58,234		66,862		75,071


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		1,061		1,104		2,200		1,473		1,217
Net Amount at Risk without Auto-Rebalancing Feature		2,785		2,479		3,384		2,406		1,825

Total		3,846		3,583		5,584		3,879		3,042

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

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

(in millions)


	2009		2010
	4Q		1Q		2Q		3Q		4Q

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		51,106		55,441		55,452		62,940		69,982
Net amount at risk		2,707		2,160		3,136		1,666		1,132
Minimum return, anniversary contract value, or maximum contract value:
Account value		25,770		26,546		25,069		27,236		29,047
Net amount at risk		5,891		5,345		6,758		5,254		4,327

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		34,901		39,786		42,166		49,721		57,336
Account Values without Auto-Rebalancing Feature		41,975		42,201		38,355		40,455		41,693

Total		76,876		81,987		80,521		90,176		99,029


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		800		719		1,342		672		592
Net Amount at Risk without Auto-Rebalancing Feature		7,798		6,786		8,552		6,248		4,867

Total		8,598		7,505		9,894		6,920		5,459

(1)	At end of period.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

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

(in millions)


Year-to-date							2009			2010
2010			2009				4Q			1Q			2Q			3Q			4Q

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	126,345			99,738		Beginning total account value		121,756			126,345			131,147			125,176			135,248
	19,266			23,188		Deposits and sales		4,020			5,605			4,037			5,255			4,369
	(16,804	)		(14,438	)	Withdrawals and benefits		(3,117	)		(4,500	)		(3,751	)		(3,167	)		(5,386	)
	12,506			17,857		Change in market value, interest credited and interest income		3,686			3,697			(6,257	)		7,984			7,082

	141,313			126,345		Ending total account value		126,345			131,147			125,176			135,248			141,313


	2,462			8,750		Net additions (withdrawals)		903			1,105			286			2,088			(1,017	)


						Stable value account values included above		36,243			37,138			37,909			39,022			39,142

						Institutional Investment Products:
	51,908			50,491		Beginning total account value		50,137			51,908			52,768			55,965			59,062
	15,298			7,786		Additions (1)		3,487			1,876			3,692			3,076			6,654
	(6,958	)		(7,817	)	Withdrawals and benefits (2)		(1,985	)		(2,139	)		(2,002	)		(1,640	)		(1,177	)
	3,370			2,287		Change in market value, interest credited and interest income		213			799			1,448			1,298			(175	)
	565			(839	)	Other (3)		56			324			59			363			(181	)

	64,183			51,908		Ending total account value		51,908			52,768			55,965			59,062			64,183


	8,340			(31	)	Net additions (withdrawals)		1,502			(263	)		1,690			1,436			5,477

(1)	Includes $500 million for the twelve months ended December 31, 2009, representing transfers of externally managed client balances to accounts managed by the company. These additions are offset within the “Other” category and there are no net impacts on ending account values for these transfers.

(2)

Includes $(171) million, $(411) million, $(34) million, $(240) million and $(67) million for the three months ended December 31, 2009, March 31, 2010, June 30, 2010, September 30, 2010 and December 31, 2010, respectively; $(752) million and $(488) million for the twelve months ended December 31, 2010 and 2009, respectively, representing transfers of client balances managed by the Company to externally managed accounts. These withdrawals are offset within the “Other” category and there are no net impacts on ending account values for these transfers.

(3)

“Other” activity includes transfers to the Asset Management segment of $(11) million, $(43) million, $(3) million and $(118) million for the three months ended December 31, 2009, March 31, 2010, June 30, 2010 and December 31, 2010, respectively; $(164) million and $(11) million for the twelve months ended December 31, 2010 and 2009 respectively. “Other” activity also includes $171 million, $411 million, $34 million, $240 million and $67 million for the three months ended December 31, 2009, March 31, 2010, June 30, 2010, September 30, 2010 and December 31, 2010, respectively; $752 million and $(12) million for the twelve months ended December 31, 2010 and 2009, respectively, related to transfers discussed above in notes 1 and 2. “Other” also includes $(1,522) million for the twelve months ended December 31, 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

Fourth Quarter 2010

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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					% Change			2009			2010
2010		2009			% Change			4Q			1Q		2Q		3Q		4Q

							Analysis of revenues by type:
	1,273		1,049			21%	Asset management fees		287			304		311		320		338
	232		(64	)		463%	Incentive, transaction, principal investing and commercial mortgage revenues		(17	)		16		74		68		74
	383		272			41%	Service, distribution and other revenues		91			59		109		105		110

	1,888		1,257			50%	Total Asset Management segment revenues		361			379		494		493		522



							Analysis of asset management fees by source:
	626		511			23%	Institutional customers		137			152		152		159		163
	353		268			32%	Retail customers		79			81		87		87		98
	294		270			9%	General account		71			71		72		74		77

	1,273		1,049			21%	Total asset management fees		287			304		311		320		338


Supplementary Assets Under Management Information (in billions):
	December 31, 2010
	Equity		Fixed Income		Real Estate		Total
Institutional customers		51.3		160.4		23.6		235.3
Retail customers		72.7		27.0		1.5		101.2
General account		4.1		195.8		0.9		200.8

Total		128.1		383.2		26.0		537.3


	December 31, 2009
	Equity		Fixed Income		Real Estate		Total
Institutional customers		47.9		120.3		20.2		188.4
Retail customers		58.2		24.6		1.6		84.4
General account		3.7		179.3		1.0		184.0

Total		109.8		324.2		22.8		456.8

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

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

(in billions)


Year-to-date							2009			2010
2010			2009				4Q			1Q			2Q			3Q			4Q

						Institutional Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	152.1			128.5		Beginning assets under management		143.5			152.1			157.1			167.3			184.1
	50.5			34.2		Additions		11.1			7.7			15.2			11.0			16.6
	(21.9	)		(21.2	)	Withdrawals		(4.5	)		(5.7	)		(4.3	)		(5.2	)		(6.7	)
	16.9			11.9		Change in market value		2.1			3.6			(0.7	)		11.0			3.0
	(0.5	)		(1.3	)	Net money market flows		(0.1	)		(0.6	)		—			—			0.1
	0.5			—		Other (1)		—			—			—			—			0.5

	197.6			152.1		Ending assets under management		152.1			157.1			167.3			184.1			197.6
	37.7			36.3		Affiliated institutional assets under management		36.3			36.2			36.2			38.0			37.7

	235.3			188.4		Total assets managed for institutional customers at end of period		188.4			193.3			203.5			222.1			235.3


	28.6			13.0		Net institutional additions, excluding money market activity		6.6			2.0			10.9			5.8			9.9


						Retail Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	51.1			33.4		Beginning assets under management		47.2			51.1			53.5			49.1			55.5
	21.0			18.6		Additions		4.4			4.8			6.8			4.1			5.3
	(14.6	)		(12.5	)	Withdrawals		(3.2	)		(3.7	)		(3.9	)		(2.9	)		(4.1	)
	6.7			11.7		Change in market value		2.9			1.5			(4.9	)		5.2			4.9
	(2.6	)		(0.1	)	Net money market flows		(0.2	)		(0.2	)		(2.4	)		—			—

	61.6			51.1		Ending assets under management		51.1			53.5			49.1			55.5			61.6
	39.6			33.3		Affiliated retail assets under management		33.3			35.5			35.1			37.2			39.6

	101.2			84.4		Total assets managed for retail customers at end of period		84.4			89.0			84.2			92.7			101.2


	6.4			6.1		Net retail additions, excluding money market activity		1.2			1.1			2.9			1.2			1.2

(1)	Represents acquisition of asset management rights contract during the fourth quarter of 2010.

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

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

(in millions)


Year-to-date						% Change			2009			2010
2010			2009			% Change			4Q			1Q			2Q			3Q			4Q

								Revenues (1):
	4,921			4,737			4%	Premiums		1,165			1,172			1,190			1,320			1,239
	1,453			1,509			-4%	Policy charges and fee income		407			375			406			300			372
	1,571			1,432			10%	Net investment income		368			375			389			399			408
	328			375			-13%	Asset management fees, commissions and other income		82			76			82			85			85

	8,273			8,053			3%	Total revenues		2,022			1,998			2,067			2,104			2,104


								Benefits and Expenses (1):
	5,378			5,058			6%	Insurance and annuity benefits		1,234			1,323			1,308			1,428			1,319
	511			492			4%	Interest credited to policyholders’ account balances		128			126			124			130			131
	162			181			-10%	Interest expense		41			35			37			45			45
	(442	)		(537	)		18%	Deferral of acquisition costs		(133	)		(118	)		(109	)		(110	)		(105	)
	243			208			17%	Amortization of acquisition costs		96			60			156			(61	)		88
	1,706			1,758			-3%	General and administrative expenses		446			428			431			421			426

	7,558			7,160			6%	Total benefits and expenses		1,812			1,854			1,947			1,853			1,904


	715			893			-20%	Adjusted operating income before income taxes		210			144			120			251			200

(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

Fourth Quarter 2010

LOGO

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

(in millions)


	Twelve Months Ended December 31, 2010									Quarter Ended December 31, 2010
	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		4,921			714			4,207			1,239			180			1,059
Policy charges and fee income		1,453			975			478			372			266			106
Net investment income		1,571			903			668			408			237			171
Asset management fees, commissions and other income		328			223			105			85			56			29

Total revenues		8,273			2,815			5,458			2,104			739			1,365


Benefits and Expenses (1):
Insurance and annuity benefits		5,378			1,120			4,258			1,319			276			1,043
Interest credited to policyholders’ account balances		511			284			227			131			72			59
Interest expense		162			162			—			45			45			—
Deferral of acquisition costs		(442	)		(396	)		(46	)		(105	)		(94	)		(11	)
Amortization of acquisition costs		243			218			25			88			79			9
General and administrative expenses		1,706			927			779			426			230			196

Total benefits and expenses		7,558			2,315			5,243			1,904			608			1,296


Adjusted operating income before income taxes		715			500			215			200			131			69


	Twelve Months Ended December 31, 2009									Quarter Ended December 31, 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		4,737			686			4,051			1,165			178			987
Policy charges and fee income		1,509			1,025			484			407			290			117
Net investment income		1,432			809			623			368			207			161
Asset management fees, commissions and other income		375			248			127			82			54			28

Total revenues		8,053			2,768			5,285			2,022			729			1,293


Benefits and Expenses (1):
Insurance and annuity benefits		5,058			1,042			4,016			1,234			251			983
Interest credited to policyholders’ account balances		492			263			229			128			68			60
Interest expense		181			181			—			41			41			—
Deferral of acquisition costs		(537	)		(491	)		(46	)		(133	)		(124	)		(9	)
Amortization of acquisition costs		208			186			22			96			91			5
General and administrative expenses		1,758			1,025			733			446			261			185

Total benefits and expenses		7,160			2,206			4,954			1,812			588			1,224


Adjusted operating income before income taxes		893			562			331			210			141			69

(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

Fourth Quarter 2010

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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							2009			2010
2010			2009				4Q			1Q			2Q			3Q			4Q

						ANNUALIZED NEW BUSINESS PREMIUMS (1) :

	23			20		Variable life		8			5			5			6			7
	77			113		Universal life		27			20			17			20			20
	160			226		Term life		56			43			39			38			40

	260			359		Total		91			68			61			64			67


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	84			95		Prudential Agents		27			20			22			20			22
	176			264		Third party distribution		64			48			39			44			45

	260			359		Total		91			68			61			64			67


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2):*
	8,081			7,397		Beginning balance		7,914			8,081			8,228			8,305			8,548
	1,507			1,805		Premiums and deposits		375			382			369			389			367
	(795	)		(934	)	Surrenders and withdrawals		(196	)		(184	)		(205	)		(208	)		(198	)

	712			871		Net sales		179			198			164			181			169
	(197	)		(149	)	Benefit payments		(33	)		(64	)		(40	)		(41	)		(52	)

	515			722		Net flows		146			134			124			140			117
	291			78		Interest credited and other		50			48			(29	)		139			133
	251			246		Net transfers from separate account		63			58			74			57			62
	(371	)		(362	)	Policy charges		(92	)		(93	)		(92	)		(93	)		(93	)

	8,767			8,081		Ending balance		8,081			8,228			8,305			8,548			8,767


						*Separate Account Liabilities:*
	15,692			12,848		Beginning balance		14,972			15,692			16,155			14,861			16,079
	1,031			1,173		Premiums and deposits		329			235			234			319			243
	(595	)		(848	)	Surrenders and withdrawals		(165	)		(142	)		(146	)		(162	)		(145	)

	436			325		Net sales		164			93			88			157			98
	(33	)		(39	)	Benefit payments		(8	)		(8	)		(8	)		(6	)		(11	)

	403			286		Net flows		156			85			80			151			87
	2,002			3,509		Change in market value, interest credited and other		802			609			(1,127	)		1,298			1,222
	(251	)		(246	)	Net transfers to general account		(63	)		(58	)		(74	)		(57	)		(62	)
	(689	)		(705	)	Policy charges		(175	)		(173	)		(173	)		(174	)		(169	)

	17,157			15,692		Ending balance		15,692			16,155			14,861			16,079			17,157


						FACE AMOUNT IN FORCE (3):

						Variable life		122,091			121,090			118,804			118,274			118,078
						Universal life		34,984			35,622			36,082			36,691			37,481
						Term life		431,831			440,915			447,408			452,133			457,014

						Total		588,906			597,627			602,294			607,098			612,573

(1)	Excludes corporate-owned life insurance.

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

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

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

(dollar amounts in millions)


Year-to-date					2009		2010
2010		2009			4Q		1Q		2Q		3Q		4Q

				Individual Life Insurance:

				Policy Surrender Experience:
	697		855	Cash value of surrenders		190		170		172		183		172
	3.0%		4.2%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		3.5%		3.0%		3.1%		3.3%		2.9%

				Death benefits per $1,000 of in force (1):
	4.35		3.87	Variable and universal life		3.30		4.98		3.86		4.75		3.89
	1.07		0.95	Term life		0.81		1.11		0.96		1.11		1.06
	2.67		2.49	Total, Individual Life Insurance		1.98		2.98		2.38		2.85		2.45

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

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

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

(dollar amounts in millions)


Year-to-date					2009			2010
2010		2009			4Q			1Q			2Q			3Q			4Q

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	446		339	Group life		41			257			23			84			82
	161		238	Group disability (1)		21			89			19			26			27

	607		577	Total		62			346			42			110			109


				Future Policy Benefits (2):
				Group life		2,282			2,198			2,194			2,122			2,262
				Group disability (1)		1,176			1,276			1,321			1,376			1,453

				Total		3,458			3,474			3,515			3,498			3,715


				Policyholders’ Account Balances (2):
				Group life		6,506			6,560			6,688			6,692			6,863
				Group disability (1)		185			171			176			175			182

				Total		6,691			6,731			6,864			6,867			7,045


				Separate Account Liabilities (2):
				Group life		18,408			19,038			18,851			19,232			19,271
				Group disability (1)		—			—			—			—			—

				Total		18,408			19,038			18,851			19,232			19,271


				Group Life Insurance:
	3,721		3,601	Gross premiums, policy charges and fee income (3)		877			936			896			945			944
	3,539		3,414	Earned premiums, policy charges and fee income		835			841			853			989			856
	89.7%		88.4%	Benefits ratio		88.6	%		91.7	%		92.2	%		89.0	%		86.1	%
	8.8%		9.0%	Administrative operating expense ratio		9.4	%		8.8	%		9.3	%		8.5	%		8.8	%
				Persistency ratio		94.3	%		93.0	%		92.5	%		92.2	%		92.1	%

				Group Disability Insurance (1):
	1,165		1,145	Gross premiums, policy charges and fee income (3)		274			285			278			287			315
	1,146		1,121	Earned premiums, policy charges and fee income		269			281			272			284			309
	94.7%		88.9%	Benefits ratio		90.3	%		86.5	%		93.0	%		99.7	%		99.0	%
	21.3%		18.3%	Administrative operating expense ratio		20.1	%		21.4	%		23.4	%		21.3	%		19.4	%
				Persistency ratio		90.9	%		95.7	%		94.6	%		92.9	%		92.1	%

(1)	Group disability amounts include long-term care and dental 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

Fourth Quarter 2010

LOGO

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

GROUP INSURANCE

(in millions)


Year-to-date							2009			2010
2010			2009				4Q			1Q			2Q			3Q			4Q


						DEFERRED POLICY ACQUISITION COSTS
						INDIVIDUAL ANNUITIES:
	2,449			2,329		Beginning balance		2,111			2,449			2,532			2,150			2,600
	1,214			953		Capitalization		297			253			299			308			354
	(260	)		(243	)	Amortization - operating results		(99	)		(75	)		(174	)		64			(75	)
	15			(239	)	Amortization - realized investment gains and losses		112			(61	)		(428	)		142			362
	(26	)		(351	)	Impact of unrealized (gains) or losses on AFS securities		28			(34	)		(79	)		(64	)		151

	3,392			2,449		Ending balance		2,449			2,532			2,150			2,600			3,392


						INDIVIDUAL LIFE INSURANCE:
	4,179			4,226		Beginning balance		4,150			4,179			4,178			4,032			4,129
	396			491		Capitalization		124			107			98			97			94
	(218	)		(186	)	Amortization - operating results		(91	)		(55	)		(151	)		67			(79	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	(96	)		(352	)	Impact of unrealized (gains) or losses on AFS securities		(4	)		(53	)		(93	)		(67	)		117

	4,261			4,179		Ending balance		4,179			4,178			4,032			4,129			4,261


						GROUP INSURANCE:
	371			347		Beginning balance		367			371			377			383			390
	46			46		Capitalization		9			11			11			13			11
	(25	)		(22	)	Amortization - operating results		(5	)		(5	)		(5	)		(6	)		(9	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	392			371		Ending balance		371			377			383			390			392


						DEFERRED SALES INDUCEMENTS
						INDIVIDUAL ANNUITIES:
	1,117			1,023		Beginning balance		1,016			1,117			1,137			955			1,094
	431			391		Capitalization		113			110			110			102			109
	(197	)		(137	)	Amortization - operating results		(44	)		(57	)		(81	)		(5	)		(54	)
	(19	)		(60	)	Amortization - realized investment gains and losses		40			(33	)		(179	)		50			143
	15			(100	)	Impact of unrealized (gains) or losses on AFS securities		(8	)		—			(32	)		(8	)		55
	—			—		Other		—			—			—			—			—

	1,347			1,117		Ending balance		1,117			1,137			955			1,094			1,347

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date						%			2009			2010
2010			2009			Change			4Q			1Q			2Q			3Q			4Q

								Revenues (1):
	9,116			7,878			16%	Premiums		2,053			2,217			2,232			2,253			2,414
	407			374			9%	Policy charges and fee income		94			95			96			107			109
	2,462			2,162			14%	Net investment income		564			583			578			640			661
	453			353			28%	Asset management fees, commissions and other income		93			99			113			92			149

	12,438			10,767			16%	Total revenues		2,804			2,994			3,019			3,092			3,333


								Benefits and Expenses (1):
	7,315			6,139			19%	Insurance and annuity benefits		1,601			1,770			1,815			1,801			1,929
	562			480			17%	Interest credited to policyholders’ account balances		128			134			130			148			150
	3			4			-25%	Interest expense		1			1			—			1			1
	(1,402	)		(1,248	)		-12%	Deferral of acquisition costs		(338	)		(339	)		(327	)		(357	)		(379	)
	855			798			7%	Amortization of acquisition costs		207			215			213			215			212
	3,002			2,724			10%	General and administrative expenses		750			717			710			753			822

	10,335			8,897			16%	Total benefits and expenses		2,349			2,498			2,541			2,561			2,735


	2,103			1,870			12%	Adjusted operating income before income taxes		455			496			478			531			598

(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

Fourth Quarter 2010

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Twelve Months Ended December 31, 2010											Quarter Ended December 31, 2010
	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		9,116			5,662			3,454			—		2,414			1,491			923			—
Policy charges and fee income		407			325			82			—		109			86			23			—
Net investment income		2,462			1,256			1,201			5		661			336			323			2
Asset management fees, commissions and other income		453			23			86			344		149			(5	)		63			91

Total revenues		12,438			7,266			4,823			349		3,333			1,908			1,332			93


Benefits and Expenses (1):
Insurance and annuity benefits		7,315			4,594			2,721			—		1,929			1,211			718			—
Interest credited to policyholders’ account balances		562			213			349			—		150			54			96			—
Interest expense		3			2			1			—		1			1			—			—
Deferral of acquisition costs		(1,402	)		(903	)		(499	)		—		(379	)		(238	)		(141	)		—
Amortization of acquisition costs		855			565			290			—		212			135			77			—
General and administrative expenses		3,002			1,526			1,173			303		822			417			326			79

Total benefits and expenses		10,335			5,997			4,035			303		2,735			1,580			1,076			79


Adjusted operating income before income taxes		2,103			1,269			788			46		598			328			256			14


	Twelve Months Ended December 31, 2009											Quarter Ended December 31, 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		7,878			5,018			2,860			—		2,053			1,302			751			—
Policy charges and fee income		374			295			79			—		94			74			20			—
Net investment income		2,162			1,069			1,089			4		564			285			279			—
Asset management fees, commissions and other income		353			61			(5	)		297		93			5			12			76

Total revenues		10,767			6,443			4,023			301		2,804			1,666			1,062			76


Benefits and Expenses (1):
Insurance and annuity benefits		6,139			3,901			2,238			—		1,601			1,013			588			—
Interest credited to policyholders’ account balances		480			186			294			—		128			49			79			—
Interest expense		4			3			1			—		1			1			—			—
Deferral of acquisition costs		(1,248	)		(866	)		(382	)		—		(338	)		(239	)		(99	)		—
Amortization of acquisition costs		798			540			258			—		207			141			66			—
General and administrative expenses		2,724			1,458			992			274		750			399			277			74

Total benefits and expenses		8,897			5,222			3,401			274		2,349			1,364			911			74


Adjusted operating income before income taxes		1,870			1,221			622			27		455			302			151			2

(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

Fourth Quarter 2010

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INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2009		2010
2010		2009			4Q		1Q		2Q		3Q		4Q

				Japanese Yen Basis Results:
				Revenues (1):
¥	489,882	¥	467,435	Japanese insurance operations excluding Gibraltar Life	¥	113,194	¥	129,732	¥	116,754	¥	122,270	¥	121,126
	438,013		385,922	Gibraltar Life		96,669		100,702		114,809		107,205		115,297

	927,895		853,357	Total revenues, Japan, yen basis		209,863		230,434		231,563		229,475		236,423


				Benefits and Expenses (1):
	392,648		369,581	Japanese insurance operations excluding Gibraltar Life		91,149		103,872		93,723		98,175		96,878
	359,343		319,933	Gibraltar Life		82,300		84,079		96,723		85,698		92,843

	751,991		689,514	Total benefits and expenses, Japan, yen basis		173,449		187,951		190,446		183,873		189,721


				Adjusted operating income (2):
	97,234		97,854	Japanese insurance operations excluding Gibraltar Life		22,045		25,860		23,031		24,095		24,248
	78,670		65,989	Gibraltar Life		14,369		16,623		18,086		21,507		22,454

¥	175,904	¥	163,843	Total adjusted operating income, Japan, yen basis	¥	36,414	¥	42,483	¥	41,117	¥	45,602	¥	46,702


				U.S. Dollar adjusted operating income (3):
$	1,034	$	974	Japanese insurance operations excluding Gibraltar Life	$	226	$	270	$	240	$	259	$	265
	788		622	Gibraltar Life		151		157		168		207		256

	1,822		1,596	Total adjusted operating income, Japan, U.S. dollar basis		377		427		408		466		521
	235		247	All other countries (4)		76		57		51		64		63

$	2,057	$	1,843	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	453	$	484	$	459	$	530	$	584

(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

Fourth Quarter 2010

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date					2009		2010
2010		2009			4Q		1Q		2Q		3Q		4Q

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	4,529		4,046	Japan, excluding Gibraltar Life		1,019		1,180		1,030		1,137		1,182
	3,536		2,939	Gibraltar Life		771		788		939		863		946
	1,458		1,267	All other countries		357		344		359		360		395

	9,523		8,252	Total		2,147		2,312		2,328		2,360		2,523


				Annualized new business premiums:
	690		577	Japan, excluding Gibraltar Life		144		184		137		178		191
	874		568	Gibraltar Life		159		163		221		234		256
	274		256	All other countries		83		64		61		64		85

	1,838		1,401	Total		386		411		419		476		532


				Annualized new business premiums by distribution channel:
	964		833	Life Planners		227		248		198		242		276
	542		436	Gibraltar Life Advisors (2)		111		107		143		142		150
	332		132	Banks		48		56		78		92		106

	1,838		1,401	Total		386		411		419		476		532


				Constant exchange rate basis (3):

				Net premiums, policy charges and fee income:
	4,364		4,101	Japan, excluding Gibraltar Life		1,001		1,169		1,029		1,076		1,090
	3,413		2,991	Gibraltar Life		756		777		939		828		869
	1,423		1,337	All other countries		352		332		357		359		375

	9,200		8,429	Total		2,109		2,278		2,325		2,263		2,334


				Annualized new business premiums:
	667		581	Japan, excluding Gibraltar Life		141		182		137		170		178
	854		583	Gibraltar Life		157		162		222		228		242
	266		266	All other countries		81		62		60		63		81

	1,787		1,430	Total		379		406		419		461		501


				Annualized new business premiums by distribution channel:
	933		847	Life Planners		222		244		197		233		259
	526		449	Gibraltar Life Advisors (2)		109		106		144		138		138
	328		134	Banks		48		56		78		90		104

	1,787		1,430	Total		379		406		419		461		501

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

(2)	Includes sales through complementary distribution other than banks.

(3)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 92 per U.S. dollar; Korean won 1190 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

Fourth Quarter 2010

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2009			2010
	4Q			1Q			2Q			3Q			4Q

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		289			292			293			295			298
Gibraltar Life		213			212			211			212			213
All other countries		96			97			97			99			99

Total		598			601			601			606			610


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		2,425			2,462			2,484			2,515			2,549
Gibraltar Life		3,897			3,892			3,868			3,884			3,903
All other countries		1,434			1,450			1,465			1,481			1,504

Total		7,756			7,804			7,817			7,880			7,956


International life insurance policy persistency:

Excluding Gibraltar Life:
13 months		91.6	%		91.6	%		91.7	%		92.0	%		92.2	%
25 months		84.6	%		84.4	%		84.2	%		84.7	%		84.5	%

Gibraltar Life:
13 months		91.6	%		92.0	%		92.2	%		92.4	%		92.4	%
25 months		83.6	%		83.8	%		83.8	%		84.1	%		84.7	%

Number of Life Planners at end of period:
Japan		3,094			3,150			3,122			3,126			3,122
All other countries		3,515			3,499			3,483			3,482			3,443

Total life planners		6,609			6,649			6,605			6,608			6,565


Gibraltar Life Advisors		6,398			5,971			6,101			5,913			6,281

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 92 per U.S. dollar; Korean won 1190 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

Fourth Quarter 2010

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 31, 2010									December 31, 2009
	Consolidated Portfolio		Closed Block Business		Financial Services					Consolidated Portfolio		Closed Block Business		Financial Services
					Businesses									Businesses
					Amount		% of Total							Amount		% of Total
Fixed maturities:
Public, available for sale, at fair value		155,076		30,499		124,577		59.3	%		140,805		29,537		111,268		58.4	%
Public, held to maturity, at amortized cost		3,940		—		3,940		1.9	%		4,009		—		4,009		2.1	%
Private, available for sale, at fair value		37,786		14,678		23,108		11.0	%		32,418		12,994		19,424		10.2	%
Private, held to maturity, at amortized cost		1,286		—		1,286		0.6	%		1,111		—		1,111		0.6	%
Trading account assets supporting insurance liabilities, at fair value		17,771		—		17,771		8.5	%		16,020		—		16,020		8.4	%
Other trading account assets, at fair value		1,376		156		1,220		0.6	%		1,783		167		1,616		0.8	%
Equity securities, available for sale, at fair value		7,728		3,593		4,135		2.0	%		6,883		3,085		3,798		2.0	%
Commercial mortgage and other loans		30,408		8,507		21,901		10.4	%		29,644		8,363		21,281		11.2	%
Policy loans		10,667		5,377		5,290		2.5	%		10,146		5,418		4,728		2.5	%
Other long-term investments (1)		4,570		1,582		2,988		1.4	%		4,356		1,545		2,811		1.5	%
Short-term investments (2)		4,862		1,164		3,698		1.8	%		5,640		1,338		4,302		2.3	%

Subtotal (3)		275,470		65,556		209,914		100.0	%		252,815		62,447		190,368		100.0	%

Invested assets of other entities and operations (4)		8,442		—		8,442					7,737		—		7,737

Total investments		283,912		65,556		218,356					260,552		62,447		198,105

Fixed Maturities by Credit Quality (3):


	December 31, 2010											December 31, 2009
	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 (5)
1		105,068		6,278		1,240		110,106		85.5	%		94,368		3,767		1,845		96,290		83.5	%
2		14,129		892		585		14,436		11.2	%		14,682		699		790		14,591		12.7	%

Subtotal - High or Highest Quality Securities (6)		119,197		7,170		1,825		124,542		96.7	%		109,050		4,466		2,635		110,881		96.2	%

3		2,753		100		208		2,645		2.1	%		2,743		44		314		2,473		2.1	%
4		1,067		24		206		885		0.7	%		1,657		22		345		1,334		1.2	%
5		630		21		211		440		0.3	%		685		19		202		502		0.4	%
6		271		28		89		210		0.2	%		197		25		69		153		0.1	%

Subtotal - Other Securities		4,721		173		714		4,180		3.3	%		5,282		110		930		4,462		3.8	%

Total		123,918		7,343		2,539		128,722		100.0	%		114,332		4,576		3,565		115,343		100.0	%


Private Fixed Maturities:

NAIC Rating (5)
1		6,226		511		90		6,647		27.2	%		5,795		259		121		5,933		28.9	%
2		13,264		792		341		13,715		56.1	%		10,485		452		379		10,558		51.4	%

Subtotal - High or Highest Quality Securities (6)		19,490		1,303		431		20,362		83.3	%		16,280		711		500		16,491		80.3	%

3		2,467		104		63		2,508		10.3	%		2,292		52		131		2,213		10.8	%
4		948		26		44		930		3.8	%		1,193		18		118		1,093		5.3	%
5		518		21		17		522		2.1	%		482		6		36		452		2.2	%
6		95		29		6		118		0.5	%		313		24		39		298		1.4	%

Subtotal - Other Securities		4,028		180		130		4,078		16.7	%		4,280		100		324		4,056		19.7	%

Total		23,518		1,483		561		24,440		100.0	%		20,560		811		824		20,547		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)	Short-term investments have virtually no sub-prime exposure.

(3)	Excludes (i) assets of our securities brokerage, 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.

(4)	Includes invested assets of brokerage, trading and 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.

(5)

Reflects equivalent ratings for investments of the international insurance operations. Includes, as of December 31, 2010 and December 31, 2009, respectively, 177 securities with amortized cost of $1,798 million (fair value $1,841 million) and 157 securities with amortized cost of $1,294 million (fair value, $1,299 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

(6)	As a result of the NAIC rating methodology for non-agency residential mortgage-backed securities, may include certain securities rated BB and below by external rating agencies as of September 30, 2010 and December 31, 2009.

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 31, 2010					December 31, 2009
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value		60,115		74.9	%		50,476		73.0	%
Public, held to maturity, at amortized cost		3,940		4.9	%		4,009		5.8	%
Private, available for sale, at fair value		3,304		4.1	%		2,692		3.9	%
Private, held to maturity, at amortized cost		1,286		1.6	%		1,111		1.6	%
Trading account assets supporting insurance liabilities, at fair value		1,376		1.7	%		1,236		1.8	%
Other trading account assets, at fair value		844		1.1	%		804		1.2	%
Equity securities, available for sale, at fair value		1,612		2.0	%		1,508		2.2	%
Commercial mortgage and other loans		4,202		5.2	%		3,675		5.3	%
Policy loans		2,083		2.6	%		1,760		2.5	%
Other long-term investments (1)		1,320		1.6	%		1,524		2.2	%
Short-term investments		211		0.3	%		313		0.5	%

Total		80,293		100.0	%		69,108		100.0	%


	December 31, 2010					December 31, 2009
	Amount		% of Total			Amount		% of Total
Financial Services Businesses excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available for sale, at fair value		64,462		49.7	%		60,792		50.1	%
Public, held to maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available for sale, at fair value		19,804		15.3	%		16,732		13.8	%
Private, held to maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		16,395		12.6	%		14,784		12.2	%
Other trading account assets, at fair value		376		0.3	%		812		0.7	%
Equity securities, available for sale, at fair value		2,523		1.9	%		2,290		1.9	%
Commercial mortgage and other loans		17,699		13.7	%		17,606		14.5	%
Policy loans		3,207		2.5	%		2,968		2.4	%
Other long-term investments (1)		1,668		1.3	%		1,287		1.1	%
Short-term investments		3,487		2.7	%		3,989		3.3	%

Total		129,621		100.0	%		121,260		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, derivatives and other miscellaneous investments.

(2)	Excludes assets classified as “Separate account assets” on our balance sheet.

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended December 31
	2010									2009
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (3)			Amount			(Losses)			Yield (3)			Amount			(Losses)
Financial Services Businesses (1):
Fixed maturities		4.24	%		1,532			(82	)		4.39	%		1,441			(36	)
Equity securities		5.40	%		48			8			5.85	%		50			17
Commercial loans		5.84	%		254			9			5.77	%		241			(49	)
Policy loans		5.01	%		65			—			5.22	%		60			1
Short-term investments and cash equivalents		0.37	%		9			—			0.28	%		10			—
Other investments		5.87	%		62			(1,100	)		1.42	%		17			(174	)

Gross investment income before investment expenses		4.29	%		1,970			(1,165	)		4.23	%		1,819			(241	)
Investment expenses		-0.14	%		(55	)		—			-0.17	%		(63	)		—

Subtotal		4.15	%		1,915			(1,165	)		4.06	%		1,756			(241	)

Investment results of other entities and operations (2)					326			(23	)					301			(113	)
Less, investment income related to adjusted operating income reconciling items					(1	)								(2	)

Total					2,240			(1,188	)					2,055			(354	)


	Twelve Months Ended December 31
	2010									2009
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (3)			Amount			(Losses)			Yield (3)			Amount			(Losses)
Financial Services Businesses (1):
Fixed maturities		4.33	%		5,927			(426	)		4.54	%		5,691			(822	)
Equity securities		6.33	%		212			11			6.32	%		225			(402	)
Commercial mortgage and other loans		5.84	%		966			66			5.80	%		964			(270	)
Policy loans		5.00	%		243			—			5.19	%		225			2
Short-term investments and cash equivalents		0.32	%		36			1			0.52	%		66			1
Other investments		4.71	%		193			573			3.16	%		138			171

Gross investment income before investment expenses		4.32	%		7,577			225			4.42	%		7,309			(1,320	)
Investment expenses		-0.14	%		(208	)		—			-0.17	%		(218	)		—

Subtotal		4.18	%		7,369			225			4.25	%		7,091			(1,320	)

Investment results of other entities and operations (2)					1,259			31						1,134			(292	)
Less, investment income related to adjusted operating income reconciling items					—									(12	)

Total					8,628			256						8,213			(1,612	)

(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. Realized gains / (losses) for Other investments includes changes in fair value of product-related and other derivatives and embedded derivatives.

(2)

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

(3)

Yields are annualized, for interim periods, and are 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 fixed maturities and short term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. 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. Prior period’s yields are presented on a basis consistent with the current presentation.

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	2010									2009
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (1)			Amount			(Losses)			Yield (1)			Amount			(Losses)
Japanese Insurance Operations:
Fixed maturities		2.79	%		465			(91	)		2.79	%		403			(79	)
Equity securities		2.42	%		10			(1	)		2.77	%		11			(11	)
Commercial loans		4.52	%		47			(5	)		4.67	%		42			—
Policy loans		3.87	%		20			—			4.02	%		18			—
Short-term investments and cash equivalents		0.18	%		1			—			0.68	%		3			—
Other investments (2)		7.57	%		42			(99	)		6.08	%		31			74

Gross investment income before investment expenses		2.97	%		585			(196	)		2.96	%		508			(16	)
Investment expenses		-0.15	%		(30	)		—			-0.17	%		(30	)		—

Total		2.82	%		555			(196	)		2.79	%		478			(16	)


	Twelve Months Ended December 31
	2010									2009
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (1)			Amount			(Losses)			Yield (1)			Amount			(Losses)
Japanese Insurance Operations:
Fixed maturities		2.81	%		1,733			(488	)		2.88	%		1,519			(321	)
Equity securities		2.84	%		44			(67	)		3.13	%		58			(334	)
Commercial mortgage and other loans		4.63	%		175			7			4.85	%		167			(8	)
Policy loans		3.85	%		72			—			3.91	%		63			2
Short-term investments and cash equivalents		0.24	%		4			—			0.62	%		11			—
Other investments (2)		6.01	%		132			201			6.27	%		129			(305	)

Gross investment income before investment expenses		2.97	%		2,160			(347	)		3.07	%		1,947			(966	)
Investment expenses		-0.16	%		(112	)		—			-0.17	%		(108	)		—

Total		2.81	%		2,048			(347	)		2.90	%		1,839			(966	)

(1)

(2)	Realized gains / (losses) for Other investments includes changes in fair value of product-related and other derivatives and embedded derivatives.

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	2010									2009
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (2)			Amount			Realized Gains / (Losses)			Yield (2)			Amount			Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		5.47	%		1,067			9			5.63	%		1,038			43
Equity securities		7.80	%		38			9			8.61	%		39			28
Commercial loans		6.24	%		207			14			6.07	%		199			(49	)
Policy loans		5.75	%		45			—			5.94	%		42			1
Short-term investments and cash equivalents		0.43	%		8			—			0.21	%		7			—
Other investments		3.99	%		20			(1,001	)		-2.19	%		(14	)		(248	)

Gross investment income before investment expenses		5.28	%		1,385			(969	)		5.01	%		1,311			(225	)
Investment expenses		-0.13	%		(25	)		—			-0.17	%		(33	)		—

Total		5.15	%		1,360			(969	)		4.84	%		1,278			(225	)


	Twelve Months Ended December 31
	2010									2009
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (2)			Amount			Realized Gains / (Losses)			Yield (2)			Amount			Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		5.58	%		4,194			62			5.74	%		4,172			(501	)
Equity securities		9.29	%		168			78			9.84	%		167			(68	)
Commercial mortgage and other loans		6.20	%		791			59			6.05	%		797			(262	)
Policy loans		5.72	%		171			—			5.94	%		162			—
Short-term investments and cash equivalents		0.33	%		32			1			0.50	%		55			1
Other investments		3.21	%		61			372			0.39	%		9			476

Gross investment income before investment expenses		5.23	%		5,417			572			5.22	%		5,362			(354	)
Investment expenses		-0.14	%		(96	)		—			-0.16	%		(110	)		—

Total		5.09	%		5,321			572			5.06	%		5,252			(354	)

(1)

(2)

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

LOGO

RECLASSIFIED SUPPLEMENTAL INFORMATION - INTERNATIONAL INSURANCE SEGMENT

(dollar amounts in millions, unless otherwise noted)


Year ended December 31			2009								2010
2008			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Constant exchange rate basis (1):
		Net premiums, policy charges and fee income:
	3,902	Japan, excluding Gibraltar Life		1,102		1,005		993		1,001		1,169		1,029		1,076
	2,504	Gibraltar Life		630		775		830		756		777		939		828
	1,299	All other countries		325		328		332		352		332		357		359

	7,705	Total		2,057		2,108		2,155		2,109		2,278		2,325		2,263

		Annualized new business premiums:
	574	Japan, excluding Gibraltar Life		176		125		139		141		182		137		170
	487	Gibraltar Life		113		156		157		157		162		222		228
	227	All other countries		55		61		69		81		62		60		63

	1,288	Total		344		342		365		379		406		419		461

		Annualized new business premiums by distribution channel:
	801	Life Planners		231		186		208		222		244		197		233
	432	Gibraltar Life Advisors		92		131		117		109		106		144		138
	55	Banks		21		25		40		48		56		78		90

	1,288	Total		344		342		365		379		406		419		461

		Face amount of individual policies in force at end of period (in billions) (1)(2):
	282	Japan, excluding Gibraltar Life		284		285		287		289		292		293		295
	211	Gibraltar Life		210		208		213		213		212		211		212
	93	All other countries		94		94		95		96		97		97		99

	586	Total		588		587		595		598		601		601		606

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 92 per U.S. dollar; Korean per U.S. dollar. won 1190 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 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

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) within certain of our businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Adjusted operating income excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of a hedging program related to the risk of those products. Adjusted operating income also 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 Servicemembers’ 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 and dental 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 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

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 9.71% for the twelve months ended December 31, 2010, 18.44% for the twelve months ended December 31, 2009, 2.74% for the three months ended December 31, 2010, 15.52% for the three months ended September 30, 2010, 11.98% for the three months ended June 30, 2010, 8.79% for the three months ended March 31, 2010 and 31.43% for the three months ended December 31, 2009.

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 Servicemembers’ 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 75% of Junior Subordinated Notes supporting capital needs, (effective June 30, 2010; for periods prior to June 30, 2010, 25% of Junior Subordinated Notes are considered debt) and, for all periods, 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.

Page 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2010

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of February 9, 2011

A.M. Best

Standard &
Poor’s

Moody’s

Fitch
Ratings

The Prudential Insurance Company of America

A+

AA-

A+

PRUCO Life Insurance Company

A+

AA-

A+

PRUCO Life Insurance Company of New Jersey

A+

AA-

NR *

A+

Prudential Annuities Life Assurance Corporation

A+

AA-

A+

Prudential Retirement Insurance and Annuity Company

A+

AA-

A+

The Prudential Life Insurance Co., Ltd. (Prudential of Japan)

AA-

Gibraltar Life Insurance Company, Ltd.

AA-

CREDIT RATINGS:

as of February 9, 2011

Prudential Financial, Inc.:

Short-Term Borrowings

AMB-1

A-1

P-2

Long-Term Senior Debt (1)

Baa2

BBB+

Junior Subordinated Long-Term Debt

bbb

BBB+

Baa3

BBB-

The Prudential Insurance Company of America:

Capital and surplus notes

Baa1

A-

Prudential Funding, LLC:

Short-Term Debt

AMB-1

A-1+

P-2

Long-Term Senior Debt

AA-

PRICOA Global Funding I

Long-Term Senior Debt

aa-

AA-

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.

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PRUDENTIAL FINANCIAL INC - FORM 8-K - EX-99.1 - QUARTERLY FINANCIAL SUPPLEMENT - February 9, 2011

Attached files