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 AUGUST 3, 2011 - PRUDENTIAL FINANCIAL INC	dex990.htm

Exhibit 99.1

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

SECOND QUARTER 2011

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.

August 3, 2011

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

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 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

KEY DEFINITIONS AND FORMULAS		36-38

RATINGS AND INVESTOR INFORMATION		39

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date						% Change			2010									2011
2011			2010			% Change			2Q			3Q			4Q			1Q			2Q

								*Financial Services Businesses:*
								Pre-tax adjusted operating income (loss) by division:
	1,239			626			98%	U.S. Retirement Solutions and Investment Management Division		130			855			624			618			621
	315			264			19%	U.S. Individual Life and Group Insurance Division		120			251			200			136			179
	1,262			957			32%	International Insurance Division		466			540			588			672			590
	(503	)		(390	)		-29%	Corporate and other operations		(180	)		(265	)		(238	)		(272	)		(231	)

	2,313			1,457			59%	Total pre-tax adjusted operating income		536			1,381			1,174			1,154			1,159
	635			372			71%	Income taxes, applicable to adjusted operating income		127			377			325			319			316

	1,678			1,085			55%	Financial Services Businesses after-tax adjusted operating income		409			1,004			849			835			843


								Reconciling items:
	(371	)		560			-166%	Realized investment gains (losses), net, and related charges and adjustments		620			284			(906	)		(360	)		(11	)
	160			331			-52%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		79			388			(218	)		(17	)		177
	(144	)		(464	)		69%	Change in experience-rated contractholder liabilities due to asset value changes		(144	)		(367	)		200			34			(178	)
	(3	)		(14	)		79%	Divested businesses		(7	)		(32	)		(9	)		(1	)		(2	)
	(115	)		(18	)		-539%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		18			(18	)		(62	)		(133	)		18

	(473	)		395			-220%	Total reconciling items, before income taxes		566			255			(995	)		(477	)		4
	(123	)		182			-168%	Income taxes, not applicable to adjusted operating income		174			109			(307	)		(137	)		14

	(350	)		213			-264%	Total reconciling items, after income taxes		392			146			(688	)		(340	)		(10	)

	1,328			1,298			2%	Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		801			1,150			161			495			833
	62			18			244%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(18	)		16			39			80			(18	)

	1,390			1,316			6%	Income from continuing operations attributable to Prudential Financial, Inc.		783			1,166			200			575			815
	54			1			5300%	Earnings attributable to noncontrolling interests		27			(2	)		12			25			29

	1,444			1,317			10%	Income from continuing operations (after-tax) of Financial Services Businesses		810			1,164			212			600			844
	30			18			67%	Income from discontinued operations, net of taxes		15			1			13			14			16

	1,474			1,335			10%	Net income of Financial Services Businesses		825			1,165			225			614			860
	54			1			5300%	Less: Income (loss) attributable to noncontrolling interests		27			(2	)		12			25			29

	1,420			1,334			6%	Net income of Financial Services Businesses attributable to Prudential Financial, Inc.		798			1,167			213			589			831

	11.25%			8.49%				Operating Return on Average Equity (based on adjusted operating income)		6.36%			14.66%			11.86%			11.39%			11.13%

								*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
	1,420			1,334				Net income of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		798			1,167			213			589			831
	26			440				Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		279			77			(36	)		19			7

	1,446			1,774				Consolidated net income attributable to Prudential Financial, Inc.		1,077			1,244			177			608			838

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date							2010									2011
2011			2010				2Q			3Q			4Q			1Q			2Q

						Earnings per share of Common Stock (diluted):
	3.40			2.33		Financial Services Businesses after-tax adjusted operating income		0.88			2.12			1.76			1.69			1.71

						Reconciling items:
	(0.75	)		1.19		Realized investment gains (losses), net, and related charges and adjustments		1.32			0.60			(1.87	)		(0.73	)		(0.02	)
	0.32			0.70		Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.17			0.82			(0.45	)		(0.03	)		0.36
	(0.29	)		(0.98	)	Change in experience-rated contractholder liabilities due to asset value changes		(0.31	)		(0.78	)		0.41			0.07			(0.36	)
	(0.01	)		(0.03	)	Divested businesses		(0.01	)		(0.07	)		(0.02	)		—			—
	0.01			(0.01	)	Difference in earnings allocated to participating unvested share-based payment awards		(0.01	)		—			0.01			0.01			—

	(0.72	)		0.87		Total reconciling items, before income taxes		1.16			0.57			(1.92	)		(0.68	)		(0.02	)
	(0.15	)		0.39		Income taxes, not applicable to adjusted operating income		0.38			0.23			(0.58	)		(0.16	)		0.04

	(0.57	)		0.48		Total reconciling items, after income taxes		0.78			0.34			(1.34	)		(0.52	)		(0.06	)

	2.83			2.81		Income from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		1.66			2.46			0.42			1.17			1.65
	0.06			0.04		Income from discontinued operations, net of taxes		0.04			—			0.03			0.03			0.03

	2.89			2.85		Net income of Financial Services Businesses attributable to Prudential Financial, Inc.		1.70			2.46			0.45			1.20			1.68


	485.4			463.7		Weighted average number of outstanding Common shares (basic)		464.3			464.8			475.1			484.9			486.0
	494.4			472.4		Weighted average number of outstanding Common shares (diluted) (1)		468.2			473.2			483.5			493.9			494.8

	17			20		Direct equity adjustments for earnings per share calculation		10			9			7			9			8
	9			9		Earnings related to interest, net of tax, on exchangeable surplus notes (1)		5			4			4			4			5

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	23			14		Financial Services Businesses after-tax adjusted operating income		6			13			11			11			12
	19			17		Income from continuing operations (after-tax) of Financial Services Businesses		10			15			7			8			11

(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 June 30, 2010, the hypothetical impact of these shares was antidilutive and therefore excluded from the diluted earnings per share calculation for non-GAAP measures, as presented above. The weighted average number of outstanding common shares used in the diluted earnings per share calculation for the three months ended June 30, 2010 for GAAP measures is 473.3 million. 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

Second Quarter 2011

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date					2010						2011
2011		2010			2Q		3Q		4Q		1Q		2Q

				*Financial Services Businesses Capitalization Data (1):*
				Senior Debt:
				Short-term debt		2,219		2,572		1,982		2,432		2,152
				Long-term debt		19,130		19,068		20,384		20,764		21,309
				Junior Subordinated Long-Term Debt		1,519		1,519		1,519		1,519		1,519

				Attributed Equity:
				Including accumulated other comprehensive income		28,233		32,007		31,032		31,300		33,623
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		26,758		28,507		29,248		30,055		31,096
				Excluding total accumulated other comprehensive income		26,193		27,418		28,100		28,785		29,683

				Total Capitalization:
				Including accumulated other comprehensive income		48,882		52,594		52,935		53,583		56,451
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		47,407		49,094		51,151		52,338		53,924
				Excluding total accumulated other comprehensive income		46,842		48,005		50,003		51,068		52,511

				Book value per share of Common Stock:
				Including accumulated other comprehensive income		59.94		67.81		63.11		63.50		68.09
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		56.81		60.40		59.48		60.98		62.97
				Excluding total accumulated other comprehensive income		55.61		58.09		57.15		58.40		60.11

				Number of diluted shares at end of period (2)		471.0		472.0		491.7		492.9		493.8

				*Common Stock Price Range (based on closing price):*
	67.32		65.82	High		65.82		59.54		59.95		67.32		64.62
	57.77		47.02	Low		53.66		49.65		50.68		58.32		57.77
	63.59		53.66	Close		53.66		54.18		58.71		61.58		63.59

				*Common Stock market capitalization (1)*		24,923		25,191		28,404		29,900		30,912

(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

Second Quarter 2011

OPERATIONS HIGHLIGHTS


Year-to-date					2010						2011
2011		2010			2Q		3Q		4Q		1Q		2Q

				*Assets Under Management and Administration ($ billions) (1) (2) (3):*
				Assets Under Management:
				Managed by U.S. Retirement Solutions and Investment Management Division:
				Asset Management Segment - Investment Management & Advisory Services
				Institutional customers		203.5		222.1		235.3		246.2		256.2
				Retail customers		84.2		92.7		101.2		108.8		109.3
				General account		196.6		203.3		200.8		213.8		218.0

				Total Investment Management and Advisory Services		484.3		518.1		537.3		568.8		583.5
				Non-proprietary assets under management		118.3		136.2		149.8		161.7		167.3

				Total managed by U.S. Retirement Solutions and Investment Management Division		602.6		654.3		687.1		730.5		750.8
				Managed by U.S. Individual Life and Group Insurance Division		13.2		13.0		13.1		13.3		13.5
				Managed by International Insurance Division		74.0		82.8		83.8		114.7		118.9

				Total assets under management		689.8		750.1		784.0		858.5		883.2
				Client assets under administration		71.1		80.8		84.1		86.6		89.4

				Total assets under management and administration		760.9		830.9		868.1		945.1		972.6


				Assets managed or administered for customers outside of the United States at end of period		129.3		147.6		151.1		201.4		208.3

				*Distribution Representatives (1):*
				Prudential Agents		2,480		2,478		2,471		2,506		2,551
				International Life Planners		6,605		6,608		6,565		6,581		6,568
				Gibraltar Life Advisors (4)		6,101		5,913		6,281		13,227		13,353

	50		47	*Prudential Agent productivity ($ thousands)*		52		49		68		50		50

(1)	As of end of period.

(2)	At fair market value.

(3)	Includes assets under management relating to acquired businesses of AIG Star Life Insurance Co., LTD. and AIG Edison Life Insurance Co. (“Star/Edison”) commencing as of February 1, 2011 date of acquisition, totalling $45 billion as of that date.

(4)	Includes Life Advisors associated with acquired businesses of Star/Edison commencing as of February 1, 2011 date of acquisition, totalling 7,269 life advisors as of that date.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date						% Change			2010									2011
2011			2010			% Change			2Q			3Q			4Q			1Q			2Q

								Revenues (1):
	10,338			7,339			41%	Premiums		3,808			3,969			3,943			4,830			5,508
	2,020			1,748			16%	Policy charges and fee income		888			803			929			982			1,038
	4,831			4,182			16%	Net investment income		2,109			2,200			2,236			2,305			2,526
	2,162			1,595			36%	Asset management fees, commissions and other income		871			853			961			1,084			1,078

	19,351			14,864			30%	Total revenues		7,676			7,825			8,069			9,201			10,150


								Benefits and Expenses (1):
	9,813			7,431			32%	Insurance and annuity benefits		4,000			3,756			3,707			4,651			5,162
	1,763			1,721			2%	Interest credited to policyholders’ account balances		875			820			877			829			934
	569			509			12%	Interest expense		258			267			273			279			290
	(1,893	)		(1,463	)		-29%	Deferral of acquisition costs		(746	)		(780	)		(849	)		(908	)		(985	)
	1,005			891			13%	Amortization of acquisition costs		539			99			378			466			539
	5,781			4,318			34%	General and administrative expenses		2,214			2,282			2,509			2,730			3,051

	17,038			13,407			27%	Total benefits and expenses		7,140			6,444			6,895			8,047			8,991

	2,313			1,457			59%	Adjusted operating income before income taxes		536			1,381			1,174			1,154			1,159


								Reconciling items:
	(198	)		1,319			-115%	Realized investment gains (losses), net, and related adjustments		1,252			166			(1,369	)		(356	)		158
	(173	)		(759	)		77%	Related charges		(632	)		118			463			(4	)		(169	)

	(371	)		560			-166%	Total realized investment gains (losses), net, and related charges and adjustments		620			284			(906	)		(360	)		(11	)

	160			331			-52%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		79			388			(218	)		(17	)		177
	(144	)		(464	)		69%	Change in experience-rated contractholder liabilities due to asset value changes		(144	)		(367	)		200			34			(178	)
	(3	)		(14	)		79%	Divested businesses		(7	)		(32	)		(9	)		(1	)		(2	)
	(115	)		(18	)		-539%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		18			(18	)		(62	)		(133	)		18

	(473	)		395			-220%	Total reconciling items, before income taxes		566			255			(995	)		(477	)		4


	1,840			1,852			-1%	Income from continuing operations before income taxes and equity in earnings of operating joint ventures		1,102			1,636			179			677			1,163
	512			554			-8%	Income tax expense		301			486			18			182			330

	1,328			1,298			2%	Income from continuing operations before equity in earnings of operating joint ventures		801			1,150			161			495			833

(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

Second Quarter 2011

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	6/30/2010		9/30/2010		12/31/2010		3/31/2011		6/30/2011

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $134,883; $141,794; $144,248; $182,343; $186,022)		140,610		151,227		149,806		186,861		192,902
Fixed maturities, held to maturity, at amortized cost (fair value $5,209; $5,522; $5,477; $5,283; $5,342)		5,023		5,233		5,226		5,102		5,091
Trading account assets supporting insurance liabilities, at fair value		16,733		17,750		17,771		18,314		18,563
Other trading account assets, at fair value		5,358		5,512		4,069		3,599		3,616
Equity securities, available for sale, at fair value (cost $3,340; $3,547; $3,605; $5,621; $5,517)		3,747		4,021		4,148		6,286		6,022
Commercial mortgage and other loans		23,097		23,466		23,324		24,259		24,712
Policy loans		4,915		5,147		5,290		5,926		6,046
Other long-term investments		4,321		4,572		4,589		6,335		6,239
Short-term investments		5,673		4,646		4,133		6,094		6,497

Total investments		209,477		221,574		218,356		262,776		269,688
Cash and cash equivalents		10,751		11,019		12,447		10,512		13,234
Accrued investment income		1,682		1,721		1,734		2,083		2,111
Deferred policy acquisition costs		13,432		14,291		15,672		16,224		16,563
Other assets		14,784		15,155		16,161		21,066		20,655
Separate account assets		179,260		194,463		207,776		218,382		222,892

Total assets		429,386		458,223		472,146		531,043		545,143


Liabilities:
Future policy benefits		76,982		82,063		82,242		102,404		108,766
Policyholders’ account balances		97,033		99,753		100,905		127,512		125,494
Securities sold under agreements to repurchase		2,683		2,628		2,557		2,599		2,830
Cash collateral for loaned securities		1,866		1,831		1,614		1,522		2,415
Income taxes		5,747		7,438		6,736		6,057		6,939
Senior short-term debt		2,219		2,572		1,982		2,432		2,152
Senior long-term debt		19,130		19,068		20,384		20,764		21,309
Junior subordinated long-term debt		1,519		1,519		1,519		1,519		1,519
Other liabilities		14,169		14,359		14,886		16,002		16,611
Separate account liabilities		179,260		194,463		207,776		218,382		222,892

Total liabilities		400,608		425,694		440,601		499,193		510,927


Attributed Equity:
Accumulated other comprehensive income		2,040		4,589		2,932		2,515		3,940
Other attributed equity		26,193		27,418		28,100		28,785		29,683

Total attributed equity		28,233		32,007		31,032		31,300		33,623

Noncontrolling Interest		545		522		513		550		593

Total Equity		28,778		32,529		31,545		31,850		34,216

Total liabilities and equity		429,386		458,223		472,146		531,043		545,143

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended June 30, 2011
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		5,508			244			1,361			3,912			(9	)
Policy charges and fee income		1,038			520			384			143			(9	)
Net investment income		2,526			1,034			418			961			113
Asset management fees, commissions and other income		1,078			1,039			86			33			(80	)

Total revenues		10,150			2,837			2,249			5,049			15


Benefits and Expenses (1):
Insurance and annuity benefits		5,162			530			1,453			3,170			9
Interest credited to policyholders’ account balances		934			563			130			249			(8	)
Interest expense		290			35			48			1			206
Deferral of acquisition costs		(985	)		(280	)		(112	)		(603	)		10
Amortization of acquisition costs		539			156			107			287			(11	)
General and administrative expenses		3,051			1,212			444			1,355			40

Total benefits and expenses		8,991			2,216			2,070			4,459			246


Adjusted operating income (loss) before income taxes		1,159			621			179			590			(231	)


	Quarter Ended June 30, 2010
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		3,808			391			1,190			2,232			(5	)
Policy charges and fee income		888			393			406			96			(7	)
Net investment income		2,109			1,050			389			580			90
Asset management fees, commissions and other income		871			798			82			50			(59	)

Total revenues		7,676			2,632			2,067			2,958			19


Benefits and Expenses (1):
Insurance and annuity benefits		4,000			839			1,308			1,815			38
Interest credited to policyholders’ account balances		875			640			124			130			(19	)
Interest expense		258			23			37			—			198
Deferral of acquisition costs		(746	)		(323	)		(109	)		(327	)		13
Amortization of acquisition costs		539			186			156			213			(16	)
General and administrative expenses		2,214			1,137			431			661			(15	)

Total benefits and expenses		7,140			2,502			1,947			2,492			199


Adjusted operating income (loss) before income taxes		536			130			120			466			(180	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Six Months Ended June 30, 2011
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		10,338			455			2,721			7,179			(17	)
Policy charges and fee income		2,020			1,012			769			256			(17	)
Net investment income		4,831			2,078			825			1,726			202
Asset management fees, commissions and other income		2,162			1,944			165			216			(163	)

Total revenues		19,351			5,489			4,480			9,377			5


Benefits and Expenses (1):
Insurance and annuity benefits		9,813			956			2,963			5,876			18
Interest credited to policyholders’ account balances		1,763			1,113			258			410			(18	)
Interest expense		569			69			93			1			406
Deferral of acquisition costs		(1,893	)		(678	)		(215	)		(1,025	)		25
Amortization of acquisition costs		1,005			289			200			537			(21	)
General and administrative expenses		5,781			2,501			866			2,316			98

Total benefits and expenses		17,038			4,250			4,165			8,115			508


Adjusted operating income (loss) before income taxes		2,313			1,239			315			1,262			(503	)


	Six Months Ended June 30, 2010
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		7,339			537			2,362			4,449			(9	)
Policy charges and fee income		1,748			791			781			191			(15	)
Net investment income		4,182			2,095			764			1,165			158
Asset management fees, commissions and other income		1,595			1,476			158			100			(139	)

Total revenues		14,864			4,899			4,065			5,905			(5	)


Benefits and Expenses (1):
Insurance and annuity benefits		7,431			1,174			2,631			3,585			41
Interest credited to policyholders’ account balances		1,721			1,248			250			264			(41	)
Interest expense		509			45			72			1			391
Deferral of acquisition costs		(1,463	)		(592	)		(227	)		(666	)		22
Amortization of acquisition costs		891			271			216			428			(24	)
General and administrative expenses		4,318			2,127			859			1,336			(4	)

Total benefits and expenses		13,407			4,273			3,801			4,948			385


Adjusted operating income (loss) before income taxes		1,457			626			264			957			(390	)

(1)

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of June 30, 2011
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		269,688		88,642		33,959		138,170		8,917
Deferred policy acquisition costs		16,563		3,968		4,625		8,118		(148	)
Other assets		36,000		7,889		3,030		13,068		12,013
Separate account assets		222,892		186,358		37,571		1,146		(2,183	)

Total assets		545,143		286,857		79,185		160,502		18,599


Liabilities:
Future policy benefits		108,766		16,332		10,488		81,549		397
Policyholders’ account balances		125,494		56,508		16,334		53,345		(693	)
Debt		24,980		4,499		5,545		—		14,936
Other liabilities		28,795		9,262		4,085		8,879		6,569
Separate account liabilities		222,892		186,358		37,571		1,146		(2,183	)

Total liabilities		510,927		272,959		74,023		144,919		19,026


Attributed Equity:
Accumulated other comprehensive income (loss)		3,940		1,642		921		2,478		(1,101	)
Other attributed equity		29,683		11,597		4,241		13,093		752

Total attributed equity		33,623		13,239		5,162		15,571		(349	)

Noncontrolling Interest		593		659		—		12		(78	)

Total Equity		34,216		13,898		5,162		15,583		(427	)


Total liabilities and equity		545,143		286,857		79,185		160,502		18,599


	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 Division		Corporate and Other Operations
Assets:
Total investments		218,356		88,387		32,408		88,842		8,719
Deferred policy acquisition costs		15,672		3,675		4,653		7,494		(150	)
Other assets		30,342		7,832		3,133		6,068		13,309
Separate account assets		207,776		172,759		36,427		693		(2,103	)

Total assets		472,146		272,653		76,621		103,097		19,775


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		—		13,812
Other liabilities		25,793		8,260		3,590		7,277		6,666
Separate account liabilities		207,776		172,759		36,427		693		(2,103	)

Total liabilities		440,601		258,854		71,528		92,445		17,774


Attributed Equity:
Accumulated other comprehensive income (loss)		2,932		1,430		765		1,837		(1,100	)
Other attributed equity		28,100		11,786		4,328		8,808		3,178

Total attributed equity		31,032		13,216		5,093		10,645		2,078

Noncontrolling Interest		513		583		—		7		(77	)

Total Equity		31,545		13,799		5,093		10,652		2,001


Total liabilities and equity		472,146		272,653		76,621		103,097		19,775

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of June 30, 2011									As of December 31, 2010
	Senior debt				Junior Subordinated Long-term Debt					Senior debt				Junior Subordinated Long-term Debt
	Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt			Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt
Financial Services Businesses
*Borrowings by use of proceeds:*
Capital Debt		448		8,234		1,519		10,201			371		6,873		1,519		8,763
Investment related		982		8,700		—		9,682			803		8,766		—		9,569
Securities business related		604		861		—		1,465			691		1,539		—		2,230
Specified other businesses		118		3,514		—		3,632			117		3,206		—		3,323
Limited recourse and non-recourse borrowing		—		—		—		—			—		—		—		—

Total debt - Financial Services Businesses		2,152		21,309		1,519		24,980			1,982		20,384		1,519		23,885

Ratio of long-term and short-term capital debt to capitalization (1)								23.8	%								22.1	%

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 June 30, 2011									As of December 31, 2010
	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		8,662		1,040		499		10,201			7,648		1,064		51		8,763
Investment related		5,573		890		3,219		9,682			5,686		654		3,229		9,569
Securities business related		1,174		285		6		1,465			1,673		552		5		2,230
Specified other businesses		2,875		757		—		3,632			2,603		720		—		3,323
Limited recourse and non-recourse borrowing		—		—		—		—			—		—		—		—

Total debt - Financial Services Businesses		18,284		2,972		3,724		24,980			17,610		2,990		3,285		23,885

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

(2)	Includes Prudential Funding, LLC.

(3)	Capital debt at Prudential Insurance Co. of America includes $940 million of Surplus Notes for June 30, 2011 and $942 million for December 31, 2010.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

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

(in millions)


Year-to-date						% Change			2010									2011
2011			2010			% Change			2Q			3Q			4Q			1Q			2Q

								Revenues (1):
	455			537			-15%	Premiums		391			400			295			211			244
	1,012			791			28%	Policy charges and fee income		393			415			456			492			520
	2,078			2,095			-1%	Net investment income		1,050			1,066			1,076			1,044			1,034
	1,944			1,476			32%	Asset management fees, commissions and other income		798			795			864			905			1,039

	5,489			4,899			12%	Total revenues		2,632			2,676			2,691			2,652			2,837


								Benefits and Expenses (1):
	956			1,174			-19%	Insurance and annuity benefits		839			507			458			426			530
	1,113			1,248			-11%	Interest credited to policyholders’ account balances		640			558			609			550			563
	69			45			53%	Interest expense		23			24			27			34			35
	(678	)		(592	)		-15%	Deferral of acquisition costs		(323	)		(325	)		(373	)		(398	)		(280	)
	289			271			7%	Amortization of acquisition costs		186			(52	)		86			133			156
	2,501			2,127			18%	General and administrative expenses		1,137			1,109			1,260			1,289			1,212

	4,250			4,273			-1%	Total benefits and expenses		2,502			1,821			2,067			2,034			2,216

	1,239			626			98%	Adjusted operating income before income taxes		130			855			624			618			621

(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

Second Quarter 2011

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

(in millions)


	Six Months Ended June 30, 2011												Quarter Ended June 30, 2011
	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		455			70			385			—			244			31			213			—
Policy charges and fee income		1,012			918			94			—			520			475			45			—
Net investment income		2,078			398			1,610			70			1,034			197			805			32
Asset management fees, commissions and other income		1,944			445			365			1,134			1,039			230			185			624

Total revenues		5,489			1,831			2,454			1,204			2,837			933			1,248			656


Benefits and Expenses (1):
Insurance and annuity benefits		956			170			786			—			530			110			420			—
Interest credited to policyholders’ account balances		1,113			272			841			—			563			136			427			—
Interest expense		69			55			7			7			35			28			3			4
Deferral of acquisition costs		(678	)		(643	)		(22	)		(13	)		(280	)		(264	)		(10	)		(6	)
Amortization of acquisition costs		289			245			32			12			156			146			4			6
General and administrative expenses (2)		2,501			1,219			465			817			1,212			556			231			425

Total benefits and expenses		4,250			1,318			2,109			823			2,216			712			1,075			429

Adjusted operating income before income taxes		1,239			513			345			381			621			221			173			227


	Six Months Ended June 30, 2010												Quarter Ended June 30, 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		537			80			457			—			391			43			348			—
Policy charges and fee income		791			690			101			—			393			345			48			—
Net investment income		2,095			440			1,602			53			1,050			216			805			29
Asset management fees, commissions and other income		1,476			317			339			820			798			164			169			465

Total revenues		4,899			1,527			2,499			873			2,632			768			1,370			494


Benefits and Expenses (1):
Insurance and annuity benefits		1,174			337			837			—			839			298			541			—
Interest credited to policyholders’ account balances		1,248			339			909			—			640			182			458			—
Interest expense		45			30			8			7			23			15			4			4
Deferral of acquisition costs		(592	)		(552	)		(28	)		(12	)		(323	)		(299	)		(18	)		(6	)
Amortization of acquisition costs		271			249			9			13			186			174			5			7
General and administrative expenses (2)		2,127			1,011			458			658			1,137			529			243			365

Total benefits and expenses		4,273			1,414			2,193			666			2,502			899			1,233			370

Adjusted operating income (loss) before income taxes		626			113			306			207			130			(131	)		137			124

(1)

(2)

General and administrative expenses for Individual Annuities include $6 million for the six months ended June 30, 2011 and $9 million for the six months ended June 30, 2010, $4 million for the quarter ended June 30, 2011 and $6 million for the quarter ended June 30, 2010 for the amortization, net of interest, of value of business acquired (VOBA).

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

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

(in millions)


Year-to-date							2010									2011
2011			2010				2Q			3Q			4Q			1Q			2Q

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	102,348			80,519		Beginning total account value		85,379			83,593			93,375			102,348			109,969
	11,346			10,175		Sales		5,308			5,368			6,108			6,815			4,531
	(3,900	)		(3,384	)	Surrenders and withdrawals		(1,714	)		(1,660	)		(1,879	)		(1,967	)		(1,933	)

	7,446			6,791		Net sales		3,594			3,708			4,229			4,848			2,598
	(544	)		(469	)	Benefit payments		(203	)		(260	)		(252	)		(254	)		(290	)

	6,902			6,322		Net flows		3,391			3,448			3,977			4,594			2,308
	4,045			(2,496	)	Change in market value, interest credited, and other (1)		(4,784	)		6,756			5,488			3,552			493
	(1,093	)		(752	)	Policy charges		(393	)		(422	)		(492	)		(525	)		(568	)

	112,202			83,593		Ending total account value		83,593			93,375			102,348			109,969			112,202


						Fixed Annuities:
	3,837			3,452		Beginning total account value		3,739			3,766			3,828			3,837			3,841
	38			62		Sales		32			29			12			18			20
	(93	)		(126	)	Surrenders and withdrawals		(78	)		(44	)		(45	)		(48	)		(45	)

	(55	)		(64	)	Net redemptions		(46	)		(15	)		(33	)		(30	)		(25	)
	(132	)		(137	)	Benefit payments		(80	)		(62	)		(68	)		(67	)		(65	)

	(187	)		(201	)	Net flows		(126	)		(77	)		(101	)		(97	)		(90	)
	176			516		Interest credited and other (1)		153			139			111			102			74
	(1	)		(1	)	Policy charges		—			—			(1	)		(1	)		—

	3,825			3,766		Ending total account value		3,766			3,828			3,837			3,841			3,825


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (2):
	1,755			1,336		Insurance Agents		713			694			817			997			758
	2,343			2,211		Wirehouses		1,114			1,101			1,300			1,414			929
	5,396			5,113		Independent Financial Planners		2,653			2,618			2,880			3,339			2,057
	1,890			1,577		Bank Distribution		860			984			1,123			1,083			807

	11,384			10,237		Total		5,340			5,397			6,120			6,833			4,551

(1)	Includes cumulative reclassifications during the first quarter of 2010 of $267 million 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.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

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

(in millions)


Year-to-date							2010									2011
2011			2010				2Q			3Q			4Q			1Q			2Q

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	13,223			14,606		Beginning balance		14,190			14,398			13,693			13,223			12,621
	912			1,231		Premiums and deposits		627			691			569			521			391
	(640	)		(766	)	Surrenders and withdrawals		(402	)		(352	)		(362	)		(346	)		(294	)

	272			465		Net sales		225			339			207			175			97
	(173	)		(176	)	Benefit payments		(81	)		(86	)		(89	)		(88	)		(85	)

	99			289		Net flows		144			253			118			87			12
	206			281		Interest credited and other		144			151			129			106			100
	(1,342	)		(777	)	Net transfers to separate account		(80	)		(1,109	)		(716	)		(794	)		(548	)
	(1	)		(1	)	Policy charges		—			—			(1	)		(1	)		—

	12,185			14,398		Ending balance		14,398			13,693			13,223			12,621			12,185


						Account Values in Separate Account:
	92,962			69,365		Beginning balance		74,928			72,961			83,510			92,962			101,189
	10,472			9,006		Premiums and deposits		4,713			4,706			5,551			6,312			4,160
	(3,353	)		(2,744	)	Surrenders and withdrawals		(1,390	)		(1,352	)		(1,562	)		(1,669	)		(1,684	)

	7,119			6,262		Net sales		3,323			3,354			3,989			4,643			2,476
	(503	)		(430	)	Benefit payments		(202	)		(236	)		(231	)		(233	)		(270	)

	6,616			5,832		Net flows		3,121			3,118			3,758			4,410			2,206
	4,015			(2,261	)	Change in market value, interest credited and other		(4,775	)		6,744			5,470			3,548			467
	1,342			777		Net transfers from general account		80			1,109			716			794			548
	(1,093	)		(752	)	Policy charges		(393	)		(422	)		(492	)		(525	)		(568	)

	103,842			72,961		Ending balance		72,961			83,510			92,962			101,189			103,842

(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

Second Quarter 2011

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

(in millions)


	2010						2011
	2Q		3Q		4Q		1Q		2Q

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

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		9,408		9,687		9,873		9,935		9,667
Guaranteed minimum withdrawal benefits		1,250		1,302		1,315		1,296		1,215
Guaranteed minimum income benefits		4,181		4,416		4,532		4,480		4,261
Guaranteed minimum withdrawal & income benefits		43,395		51,457		59,351		66,857		70,349

Total		58,234		66,862		75,071		82,568		85,492


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		42,166		49,721		57,336		64,786		68,273
Account Values without Auto-Rebalancing Feature		16,068		17,141		17,735		17,782		17,219

Total		58,234		66,862		75,071		82,568		85,492


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		2,200		1,473		1,217		1,227		1,438
Net Amount at Risk without Auto-Rebalancing Feature		3,384		2,406		1,825		1,574		1,622

Total		5,584		3,879		3,042		2,801		3,060

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

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

(in millions)


	2010						2011
	2Q		3Q		4Q		1Q		2Q

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		55,452		62,940		69,982		76,405		78,748
Net amount at risk		3,136		1,666		1,132		929		918
Minimum return, anniversary contract value, or maximum contract value:
Account value		25,069		27,236		29,047		30,216		30,191
Net amount at risk		6,758		5,254		4,327		3,871		3,958

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		42,166		49,721		57,336		64,786		68,273
Account Values without Auto-Rebalancing Feature		38,355		40,455		41,693		41,835		40,666

Total		80,521		90,176		99,029		106,621		108,939


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		1,342		672		592		557		591
Net Amount at Risk without Auto-Rebalancing Feature		8,552		6,248		4,867		4,243		4,285

Total		9,894		6,920		5,459		4,800		4,876

(1)	At end of period.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

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

(in millions)


Year-to-date							2010									2011
2011			2010				2Q			3Q			4Q			1Q			2Q

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	141,313			126,345		Beginning total account value		131,147			125,176			135,248			141,313			145,977
	8,976			9,642		Deposits and sales		4,037			5,255			4,369			4,848			4,128
	(9,141	)		(8,251	)	Withdrawals and benefits		(3,751	)		(3,167	)		(5,386	)		(4,927	)		(4,214	)
	5,432			(2,560	)	Change in market value, interest credited and interest income		(6,257	)		7,984			7,082			4,743			689

	146,580			125,176		Ending total account value		125,176			135,248			141,313			145,977			146,580


	(165	)		1,391		Net additions (withdrawals)		286			2,088			(1,017	)		(79	)		(86	)


						Stable value account values included above		37,909			39,022			39,142			39,062			39,828

						Institutional Investment Products:
	64,183			51,908		Beginning total account value		52,768			55,965			59,062			64,183			68,892
	11,377			5,568		Additions		3,692			3,076			6,654			5,785			5,592
	(2,565	)		(4,141	)	Withdrawals and benefits (1)		(2,002	)		(1,640	)		(1,177	)		(1,128	)		(1,437	)
	1,672			2,247		Change in market value, interest credited and interest income		1,448			1,298			(175	)		482			1,190
	(536	)		383		Other (2)		59			363			(181	)		(430	)		(106	)

	74,131			55,965		Ending total account value		55,965			59,062			64,183			68,892			74,131


	8,812			1,427		Net additions		1,690			1,436			5,477			4,657			4,155

(1)

Includes $(34) million, $(240) million, $(67) million, $(34) million and $(18) million for the three months ended June 30, 2010, September 30, 2010, December 31, 2010, March 31, 2011, and June 30, 2011 respectively, and $(52) million, $(445) million for the six months ended June 30, 2011 and 2010, respectively, for the 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.

(2)

“Other” activity includes transfers to the Asset Management segment of $(3) million, $(118) million, $(402) million and $(13) million for the three months ended June 30, 2010, December 31, 2010, March 31, 2011 and June 30, 2011, respectively and $(415) million and $(46) million for the six months ended June 30, 2011 and 2010 respectively. “Other” activity also includes $34 million, $240 million, $67 million, $34 million and $18 million, for the three months ended June 30, 2010, September 30, 2010, December 31, 2010, March 31, 2011 and June 30, 2011, respectively, $52 million and $445 million for the six months ended June 30, 2011 and 2010, respectively, related to transfers discussed above in note 1. The remainder of “Other” activity primarily represents changes in asset balances for externally managed accounts.

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

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			2010						2011
2011		2010		% Change			2Q		3Q		4Q		1Q		2Q

						Analysis of revenues by type:
	724		615		18%	Asset management fees		311		320		338		356		368
	206		80		158%	Incentive, transaction, principal investing and commercial mortgage revenues		69		62		68		57		149
	274		178		54%	Service, distribution and other revenues		114		111		116		135		139

	1,204		873		38%	Total Asset Management segment revenues		494		493		522		548		656



						Analysis of asset management fees by source:
	352		304		16%	Institutional customers		152		159		163		174		178
	212		168		26%	Retail customers		87		87		98		104		108
	160		143		12%	General account		72		74		77		78		82

	724		615		18%	Total asset management fees		311		320		338		356		368


Supplementary Assets Under Management Information (in billions):
	June 30, 2011
	Equity		Fixed Income		Real Estate		Total
Institutional customers		51.1		178.5		26.6		256.2
Retail customers		78.6		29.1		1.6		109.3
General account		4.3		212.4		1.3		218.0

Total		134.0		420.0		29.5		583.5


	June 30, 2010
	Equity		Fixed Income		Real Estate		Total
Institutional customers		43.1		139.4		21.0		203.5
Retail customers		56.5		26.4		1.3		84.2
General account		3.5		192.2		0.9		196.6

Total		103.1		358.0		23.2		484.3

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

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

(in billions)


Year-to-date							2010									2011
2011			2010				2Q			3Q			4Q			1Q			2Q

						Institutional Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	197.6			152.1		Beginning assets under management		157.1			167.3			184.1			197.6			209.2
	23.2			22.9		Additions		15.2			11.0			16.6			12.4			10.8
	(12.3	)		(10.0	)	Withdrawals		(4.3	)		(5.2	)		(6.7	)		(6.5	)		(5.8	)
	10.1			2.9		Change in market value		(0.7	)		11.0			3.0			5.4			4.7
	(0.1	)		(0.6	)	Net money market flows		—			—			0.1			(0.1	)		—
	0.4			—		Other (1)		—			—			0.5			0.4			—

	218.9			167.3		Ending assets under management		167.3			184.1			197.6			209.2			218.9
	37.3			36.2		Affiliated institutional assets under management		36.2			38.0			37.7			37.0			37.3

	256.2			203.5		Total assets managed for institutional customers at end of period		203.5			222.1			235.3			246.2			256.2


	10.9			12.9		Net institutional additions, excluding money market activity		10.9			5.8			9.9			5.9			5.0


						Retail Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	61.6			51.1		Beginning assets under management		53.5			49.1			55.5			61.6			66.2
	11.1			11.6		Additions		6.8			4.1			5.3			6.1			5.0
	(9.3	)		(7.6	)	Withdrawals		(3.9	)		(2.9	)		(4.1	)		(4.1	)		(5.2	)
	3.8			(3.4	)	Change in market value		(4.9	)		5.2			4.9			3.0			0.8
	—			(2.6	)	Net money market flows		(2.4	)		—			—			—			—
	(0.4	)		—		Other (2)		—			—			—			(0.4	)		—

	66.8			49.1		Ending assets under management		49.1			55.5			61.6			66.2			66.8
	42.5			35.1		Affiliated retail assets under management		35.1			37.2			39.6			42.6			42.5

	109.3			84.2		Total assets managed for retail customers at end of period		84.2			92.7			101.2			108.8			109.3


	1.8			4.0		Net retail additions (withdrawals), excluding money market activity		2.9			1.2			1.2			2.0			(0.2	)

(1)	Other activity includes acquisition of an asset management rights contract of $0.5 billion during the fourth quarter of 2010. “Other” activity during the first quarter of 2011 represents transfers from the Retirement Segment as a result of a change in client contract form.

(2)	Amounts in the first quarter of 2011 represent a reclassification of certain fund balances to affiliated retail assets under management.

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

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

(in millions)


Year-to-date						% Change			2010									2011
2011			2010			% Change			2Q			3Q			4Q			1Q			2Q

								Revenues (1):
	2,721			2,362			15%	Premiums		1,190			1,320			1,239			1,360			1,361
	769			781			-2%	Policy charges and fee income		406			300			372			385			384
	825			764			8%	Net investment income		389			399			408			407			418
	165			158			4%	Asset management fees, commissions and other income		82			85			85			79			86

	4,480			4,065			10%	Total revenues		2,067			2,104			2,104			2,231			2,249


								Benefits and Expenses (1):
	2,963			2,631			13%	Insurance and annuity benefits		1,308			1,428			1,319			1,510			1,453
	258			250			3%	Interest credited to policyholders’ account balances		124			130			131			128			130
	93			72			29%	Interest expense		37			45			45			45			48
	(215	)		(227	)		5%	Deferral of acquisition costs		(109	)		(110	)		(105	)		(103	)		(112	)
	200			216			-7%	Amortization of acquisition costs		156			(61	)		88			93			107
	866			859			1%	General and administrative expenses		431			421			426			422			444

	4,165			3,801			10%	Total benefits and expenses		1,947			1,853			1,904			2,095			2,070


	315			264			19%	Adjusted operating income before income taxes		120			251			200			136			179

(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

Second Quarter 2011

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

(in millions)


	Six Months Ended June 30, 2011									Quarter Ended June 30, 2011
	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		2,721			355			2,366			1,361			183			1,178
Policy charges and fee income		769			538			231			384			274			110
Net investment income		825			481			344			418			245			173
Asset management fees, commissions and other income		165			114			51			86			61			25

Total revenues		4,480			1,488			2,992			2,249			763			1,486


Benefits and Expenses (1):
Insurance and annuity benefits		2,963			565			2,398			1,453			268			1,185
Interest credited to policyholders’ account balances		258			145			113			130			74			56
Interest expense		93			93			—			48			48			—
Deferral of acquisition costs		(215	)		(186	)		(29	)		(112	)		(97	)		(15	)
Amortization of acquisition costs		200			187			13			107			101			6
General and administrative expenses		866			458			408			444			239			205

Total benefits and expenses		4,165			1,262			2,903			2,070			633			1,437


Adjusted operating income before income taxes		315			226			89			179			130			49


	Six Months Ended June 30, 2010									Quarter Ended June 30, 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		2,362			353			2,009			1,190			177			1,013
Policy charges and fee income		781			543			238			406			294			112
Net investment income		764			436			328			389			223			166
Asset management fees, commissions and other income		158			106			52			82			57			25

Total revenues		4,065			1,438			2,627			2,067			751			1,316


Benefits and Expenses (1):
Insurance and annuity benefits		2,631			579			2,052			1,308			270			1,038
Interest credited to policyholders’ account balances		250			139			111			124			70			54
Interest expense		72			72			—			37			37			—
Deferral of acquisition costs		(227	)		(205	)		(22	)		(109	)		(98	)		(11	)
Amortization of acquisition costs		216			206			10			156			151			5
General and administrative expenses		859			468			391			431			233			198

Total benefits and expenses		3,801			1,259			2,542			1,947			663			1,284


Adjusted operating income before income taxes		264			179			85			120			88			32

(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

Second Quarter 2011

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							2010									2011
2011			2010				2Q			3Q			4Q			1Q			2Q

						ANNUALIZED NEW BUSINESS PREMIUMS (1):

	13			10		Variable life		5			6			7			7			6
	45			37		Universal life		17			20			20			23			22
	75			82		Term life		39			38			40			35			40

	133			129		Total		61			64			67			65			68


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	41			42		Prudential Agents		22			20			22			20			21
	92			87		Third party distribution		39			44			45			45			47

	133			129		Total		61			64			67			65			68


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2):*
	8,767			8,081		Beginning balance		8,228			8,305			8,548			8,767			8,968
	776			751		Premiums and deposits		369			389			367			402			374
	(397	)		(389	)	Surrenders and withdrawals		(205	)		(208	)		(198	)		(180	)		(217	)

	379			362		Net sales		164			181			169			222			157
	(100	)		(104	)	Benefit payments		(40	)		(41	)		(52	)		(51	)		(48	)

	279			258		Net flows		124			140			117			170			109
	82			19		Interest credited and other		(29	)		139			133			63			19
	135			132		Net transfers from separate account		74			57			62			61			74
	(182	)		(185	)	Policy charges		(92	)		(93	)		(93	)		(92	)		(90	)

	9,080			8,305		Ending balance		8,305			8,548			8,767			8,968			9,080


						*Separate Account Liabilities:*
	17,156			15,692		Beginning balance		16,155			14,861			16,079			17,156			17,749
	435			469		Premiums and deposits		234			319			243			220			215
	(416	)		(288	)	Surrenders and withdrawals		(146	)		(162	)		(145	)		(161	)		(255	)

	19			181		Net sales (redemptions)		88			157			98			59			(40	)
	(24	)		(16	)	Benefit payments		(8	)		(6	)		(11	)		(13	)		(12	)

	(5	)		165		Net flows		80			151			87			47			(51	)
	867			(518	)	Change in market value, interest credited and other		(1,127	)		1,298			1,222			777			90
	(135	)		(132	)	Net transfers to general account		(74	)		(57	)		(62	)		(61	)		(74	)
	(339	)		(346	)	Policy charges		(173	)		(174	)		(169	)		(170	)		(169	)

	17,544			14,861		Ending balance		14,861			16,079			17,157			17,749			17,544


						FACE AMOUNT IN FORCE (3):

						Variable life		118,804			118,274			118,078			117,538			116,024
						Universal life		36,082			36,691			37,481			38,190			38,896
						Term life		447,408			452,133			457,014			460,683			466,129

						Total		602,294			607,098			612,573			616,411			621,049

(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

Second Quarter 2011

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

(dollar amounts in millions)


Year-to-date					2010						2011
2011		2010			2Q		3Q		4Q		1Q		2Q

				Individual Life Insurance:

				Policy Surrender Experience:
	475		342	Cash value of surrenders		172		183		172		189		286
	3.9%		3.1%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		3.1%		3.3%		2.9%		3.1%		4.7%

				Death benefits per $1,000 of in force (1):
	4.45		4.44	Variable and universal life		3.86		4.75		3.89		5.15		3.73
	1.09		1.05	Term life		0.96		1.11		1.06		1.12		1.06
	2.70		2.70	Total, Individual Life Insurance		2.38		2.85		2.45		3.05		2.34

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

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

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

(dollar amounts in millions)


Year-to-date					2010									2011
2011		2010			2Q			3Q			4Q			1Q			2Q

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	414		280	Group life		23			84			82			392			22
	138		108	Group disability (1)		19			26			27			108			30

	552		388	Total		42			110			109			500			52


				Future Policy Benefits (2):
				Group life		2,194			2,122			2,262			2,233			2,202
				Group disability (1)		1,321			1,376			1,453			1,560			1,621

				Total		3,515			3,498			3,715			3,793			3,823


				Policyholders’ Account Balances (2):
				Group life		6,688			6,692			6,863			6,943			7,075
				Group disability (1)		176			175			182			174			179

				Total		6,864			6,867			7,045			7,117			7,254


				Separate Account Liabilities (2):
				Group life		18,851			19,232			19,271			19,292			20,027
				Group disability (1)		—			—			—			—			—

				Total		18,851			19,232			19,271			19,292			20,027


				Group Life Insurance:
	2,112		1,832	Gross premiums, policy charges and fee income (3)		896			945			944			1,066			1,046
	2,002		1,694	Earned premiums, policy charges and fee income		853			989			856			1,010			992
	91.4%		91.9%	Benefits ratio		92.2	%		89.0	%		86.1	%		92.3	%		90.4	%
	8.0%		9.0%	Administrative operating expense ratio		9.3	%		8.5	%		8.8	%		8.1	%		7.9	%
				Persistency ratio		92.5	%		92.2	%		92.1	%		97.2	%		96.6	%

				Group Disability Insurance (1):
	605		563	Gross premiums, policy charges and fee income (3)		278			287			315			301			304
	595		553	Earned premiums, policy charges and fee income		272			284			309			299			296
	95.6%		89.7%	Benefits ratio		93.0	%		99.7	%		99.0	%		94.3	%		97.0	%
	21.5%		22.4%	Administrative operating expense ratio		23.4	%		21.3	%		19.4	%		21.6	%		21.4	%
				Persistency ratio		94.6	%		92.9	%		92.1	%		93.3	%		91.6	%

(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

Second Quarter 2011

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

(in millions)


Year-to-date							2010									2011
2011			2010				2Q			3Q			4Q			1Q			2Q

						DEFERRED POLICY ACQUISITION COSTS

						INDIVIDUAL ANNUITIES:
	3,392			2,449		Beginning balance		2,532			2,150			2,600			3,392			3,673
	643			552		Capitalization		299			308			354			379			264
	(245	)		(249	)	Amortization - operating results		(174	)		64			(75	)		(99	)		(146	)
	(76	)		(489	)	Amortization - realized investment gains and losses		(428	)		142			362			18			(94	)
	(1	)		(113	)	Impact of unrealized (gains) or losses on AFS securities		(79	)		(64	)		151			(1	)		—
	(16	)		—		Other (1)		—			—			—			(16	)		—

	3,697			2,150		Ending balance		2,150			2,600			3,392			3,673			3,697


						INDIVIDUAL LIFE INSURANCE:
	4,261			4,179		Beginning balance		4,178			4,032			4,129			4,261			4,272
	186			205		Capitalization		98			97			94			89			97
	(187)			(206	)	Amortization - operating results		(151	)		67			(79	)		(86	)		(101	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	(43)			(146	)	Impact of unrealized (gains) or losses on AFS securities		(93	)		(67	)		117			8			(51	)

	4,217			4,032		Ending balance		4,032			4,129			4,261			4,272			4,217


						GROUP INSURANCE:
	392			371		Beginning balance		377			383			390			392			399
	29			22		Capitalization		11			13			11			14			15
	(13)			(10	)	Amortization - operating results		(5	)		(6	)		(9	)		(7	)		(6	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	408			383		Ending balance		383			390			392			399			408


						DEFERRED SALES INDUCEMENTS

						INDIVIDUAL ANNUITIES:
	1,348			1,117		Beginning balance		1,137			955			1,094			1,348			1,431
	207			220		Capitalization		110			102			109			121			86
	(116)			(138	)	Amortization - operating results		(81	)		(5	)		(53	)		(56	)		(60	)
	(38)			(212	)	Amortization - realized investment gains and losses		(179	)		50			143			6			(44	)
	(2)			(32	)	Impact of unrealized (gains) or losses on AFS securities		(32	)		(8	)		55			(4	)		2
	16			—		Other (1)		—			—			—			16			—

	1,415			955		Ending balance		955			1,094			1,348			1,431			1,415

(1)	“Other” activity for the first quarter of 2011 reflects a reclassification between the balances, as of January 1, 2011, of deferred policy acquisition costs and deferred sales inducements for Individual Annuities due to a refinement in methodology for allocating such balances.

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


Year-to-date						% Change			2010									2011
2011			2010			% Change			2Q			3Q			4Q			1Q			2Q

								Revenues (1):
	7,179			4,449			61%	Premiums		2,232			2,253			2,414			3,267			3,912
	256			191			34%	Policy charges and fee income		96			107			109			113			143
	1,726			1,165			48%	Net investment income		580			642			662			765			961
	216			100			116%	Asset management fees, commissions and other income		50			40			88			183			33

	9,377			5,905			59%	Total revenues		2,958			3,042			3,273			4,328			5,049


								Benefits and Expenses (1):
	5,876			3,585			64%	Insurance and annuity benefits		1,815			1,801			1,929			2,706			3,170
	410			264			55%	Interest credited to policyholders’ account balances		130			148			150			161			249
	1			1			0%	Interest expense		—			1			1			—			1
	(1,025	)		(666	)		-54%	Deferral of acquisition costs		(327	)		(357	)		(379	)		(422	)		(603	)
	537			428			25%	Amortization of acquisition costs		213			215			212			250			287
	2,316			1,336			73%	General and administrative expenses		661			694			772			961			1,355

	8,115			4,948			64%	Total benefits and expenses		2,492			2,502			2,685			3,656			4,459


	1,262			957			32%	Adjusted operating income before income taxes		466			540			588			672			590

(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

Second Quarter 2011

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	Six Months Ended June 30, 2011									Quarter Ended June 30, 2011
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations			Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		7,179			3,179			4,000			3,912			1,517			2,395
Policy charges and fee income		256			181			75			143			91			52
Net investment income		1,726			698			1,028			961			347			614
Asset management fees, commissions and other income		216			(9	)		225			33			(8	)		41

Total revenues		9,377			4,049			5,328			5,049			1,947			3,102


Benefits and Expenses (1):
Insurance and annuity benefits		5,876			2,618			3,258			3,170			1,229			1,941
Interest credited to policyholders’ account balances		410			118			292			249			56			193
Interest expense		1			—			1			1			—			1
Deferral of acquisition costs		(1,025	)		(508	)		(517	)		(603	)		(247	)		(356	)
Amortization of acquisition costs		537			311			226			287			154			133
General and administrative expenses		2,316			834			1,482			1,355			409			946

Total benefits and expenses		8,115			3,373			4,742			4,459			1,601			2,858

Adjusted operating income before income taxes		1,262			676			586			590			346			244


	Six Months Ended June 30, 2010									Quarter Ended June 30, 2010
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations			Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		4,449			2,760			1,689			2,232			1,312			920
Policy charges and fee income		191			153			38			96			77			19
Net investment income		1,165			594			571			580			295			285
Asset management fees, commissions and other income		100			22			78			50			12			38

Total revenues		5,905			3,529			2,376			2,958			1,696			1,262


Benefits and Expenses (1):
Insurance and annuity benefits		3,585			2,233			1,352			1,815			1,070			745
Interest credited to policyholders’ account balances		264			100			164			130			47			83
Interest expense		1			1			—			—			—			—
Deferral of acquisition costs		(666	)		(438	)		(228	)		(327	)		(204	)		(123	)
Amortization of acquisition costs		428			283			145			213			137			76
General and administrative expenses		1,336			732			604			661			355			306

Total benefits and expenses		4,948			2,911			2,037			2,492			1,405			1,087

Adjusted operating income before income taxes		957			618			339			466			291			175

(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

Second Quarter 2011

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2010						2011
2011		2010			2Q		3Q		4Q		1Q		2Q

				Japanese Yen Basis Results:
				Revenues (1):
¥	261,089	¥	246,486	Japanese insurance operations excluding Gibraltar Life	¥	116,754	¥	122,270	¥	121,126	¥	138,200	¥	122,889
	429,030		215,846	Gibraltar Life and Other Operations		114,980		107,381		115,475		171,976		257,054

	690,119		462,332	Total revenues, yen basis		231,734		229,651		236,601		310,176		379,943


				Benefits and Expenses (1):
	210,681		197,595	Japanese insurance operations excluding Gibraltar Life		93,723		98,175		96,878		113,597		97,084
	390,106		181,307	Gibraltar Life and Other Operations		96,971		85,946		93,126		154,260		235,846

	600,787		378,902	Total benefits and expenses, yen basis		190,694		184,121		190,004		267,857		332,930


				Adjusted operating income (2):
	50,408		48,891	Japanese insurance operations excluding Gibraltar Life		23,031		24,095		24,248		24,603		25,805
	38,924		34,539	Gibraltar Life and Other Operations		18,009		21,435		22,349		17,716		21,208

¥	89,332	¥	83,430	Total adjusted operating income, yen basis	¥	41,040	¥	45,530	¥	46,597	¥	42,319	¥	47,013


				U.S. Dollar adjusted operating income (3):
$	575	$	510	Japanese insurance operations excluding Gibraltar Life and Other Operations	$	240	$	259	$	265	$	281	$	294
	586		339	Gibraltar Life and Other Operations		175		217		260		342		244

	1,161		849	Total adjusted operating income, U.S. dollar basis		415		476		525		623		538
	101		108	All other (4)		51		64		63		49		52

$	1,262	$	957	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	466	$	540	$	588	$	672	$	590

(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. Revenues and benefits and expenses exclude non-Japanese operations.

(2)	Adjusted operating income on yen basis excludes impact of currency hedging and non-Japanese operations.

(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

Second Quarter 2011

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date					2010						2011
2011		2010			2Q		3Q		4Q		1Q		2Q

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	2,588		2,210	Japan, excluding Gibraltar Life		1,030		1,137		1,182		1,378		1,210
	4,075		1,727	Gibraltar Life		939		863		946		1,628		2,447
	772		703	All other countries		359		360		395		374		398

	7,435		4,640	Total		2,328		2,360		2,523		3,380		4,055


				Annualized new business premiums:
	400		321	Japan, excluding Gibraltar Life		137		178		191		224		176
	917		384	Gibraltar Life		221		234		256		373		544
	165		125	All other countries		61		64		85		83		82

	1,482		830	Total		419		476		532		680		802


				Annualized new business premiums by distribution channel:
	565		446	Life Planners		198		242		276		307		258
	430		242	Gibraltar Life Advisors		137		122		123		160		270
	278		134	Banks		78		92		106		135		143
	209		8	Independent Agency		6		20		27		78		131

	1,482		830	Total		419		476		532		680		802


				Constant exchange rate basis (2):

				Net premiums, policy charges and fee income:
	2,373		2,198	Japan, excluding Gibraltar Life		1,029		1,076		1,090		1,267		1,106
	3,677		1,716	Gibraltar Life		939		828		869		1,480		2,197
	711		689	All other countries		357		359		375		349		362

	6,761		4,603	Total		2,325		2,263		2,334		3,096		3,665


				Annualized new business premiums:
	371		319	Japan, excluding Gibraltar Life		137		170		178		208		163
	846		384	Gibraltar Life		222		228		242		347		499
	153		122	All other countries		60		63		81		78		75

	1,370		825	Total		419		461		501		633		737


				Annualized new business premiums by distribution channel:
	524		441	Life Planners		197		233		259		286		238
	395		242	Gibraltar Life Advisors		138		119		114		148		247
	262		134	Banks		78		90		104		128		134
	189		8	Independent Agency		6		19		24		71		118

	1,370		825	Total		419		461		501		633		737

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

(2)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 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

Second Quarter 2011

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2010									2011
	2Q			3Q			4Q			1Q			2Q

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		293			295			298			300			302
Gibraltar Life (3)		211			212			213			351			349
All other countries		97			99			99			101			101

Total		601			606			610			752			752


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		2,484			2,515			2,549			2,590			2,616
Gibraltar Life (3)		3,868			3,884			3,903			7,457			7,430
All other countries		1,465			1,481			1,504			1,522			1,536

Total		7,817			7,880			7,956			11,569			11,582


International life insurance policy persistency: (4)

Excluding Gibraltar Life:
13 months		91.7	%		92.0	%		92.2	%		92.1	%		92.2	%
25 months		84.2	%		84.7	%		84.5	%		84.6	%		84.7	%

Gibraltar Life:
13 months		92.2	%		92.4	%		92.4	%		92.4	%		92.7	%
25 months		83.8	%		84.1	%		84.7	%		85.3	%		85.5	%

Number of Life Planners at end of period:
Japan		3,122			3,126			3,122			3,150			3,106
All other countries		3,483			3,482			3,443			3,431			3,462

Total life planners		6,605			6,608			6,565			6,581			6,568


Gibraltar Life Advisors (5)		6,101			5,913			6,281			13,227			13,353

(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.

(3)	Includes Star/Edison business from February 1, 2011 date of acquisition, amounting to face amount of $135 billion and 3,529 million individual policies as of that date.

(4)	Excludes acquired Star/Edison business.

(5)	Includes Life Advisors associated with acquired businesses of Star/Edison commencing as of February 1, 2011 date of acquisition, totalling 7,269 life advisors as of that date.

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2011									December 31, 2010
	Consolidated		Closed Block		Financial Services Businesses					Consolidated		Closed Block		Financial Services Businesses
	Portfolio		Business		Amount		% of Total			Portfolio		Business		Amount		% of Total
Fixed maturities:
Public, available for sale, at fair value		195,590		29,829		165,761		63.3	%		155,076		30,499		124,577		59.3	%
Public, held to maturity, at amortized cost		3,781		—		3,781		1.4	%		3,940		—		3,940		1.9	%
Private, available for sale, at fair value		40,434		15,356		25,078		9.6	%		37,786		14,678		23,108		11.0	%
Private, held to maturity, at amortized cost		1,310		—		1,310		0.5	%		1,286		—		1,286		0.6	%
Trading account assets supporting insurance liabilities, at fair value		18,563		—		18,563		7.1	%		17,771		—		17,771		8.5	%
Other trading account assets, at fair value		1,340		163		1,177		0.5	%		1,376		156		1,220		0.6	%
Equity securities, available for sale, at fair value		9,658		3,649		6,009		2.3	%		7,728		3,593		4,135		2.0	%
Commercial mortgage and other loans		32,422		8,816		23,606		9.0	%		30,408		8,507		21,901		10.4	%
Policy loans		11,372		5,326		6,046		2.3	%		10,667		5,377		5,290		2.5	%
Other long-term investments (1)		6,393		1,580		4,813		1.8	%		4,570		1,582		2,988		1.4	%
Short-term investments (2)		6,761		1,102		5,659		2.2	%		4,862		1,164		3,698		1.8	%

Subtotal (3)		327,624		65,821		261,803		100.0	%		275,470		65,556		209,914		100.0	%

Invested assets of other entities and operations (4)		7,885		—		7,885					8,442		—		8,442

Total investments		335,509		65,821		269,688					283,912		65,556		218,356

Fixed Maturities by Credit Quality (3):


	June 30, 2011											December 31, 2010
	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		143,529		7,203		1,248		149,484		88.1	%		105,068		6,278		1,240		110,106		85.5	%
2		16,190		966		687		16,469		9.7	%		14,129		892		585		14,436		11.2	%

Subtotal - High or Highest Quality Securities		159,719		8,169		1,935		165,953		97.8	%		119,197		7,170		1,825		124,542		96.7	%

3		2,606		91		266		2,431		1.4	%		2,753		100		208		2,645		2.1	%
4		988		20		171		837		0.5	%		1,067		24		206		885		0.7	%
5		511		28		167		372		0.2	%		630		21		211		440		0.3	%
6		212		20		82		150		0.1	%		271		28		89		210		0.2	%

Subtotal - Other Securities		4,317		159		686		3,790		2.2	%		4,721		173		714		4,180		3.3	%

Total		164,036		8,328		2,621		169,743		100.0	%		123,918		7,343		2,539		128,722		100.0	%

Private Fixed Maturities:
NAIC Rating (5)
1		6,764		568		76		7,256		27.5	%		6,226		511		90		6,647		27.2	%
2		14,568		1,023		303		15,288		57.8	%		13,264		792		341		13,715		56.1	%

Subtotal - High or Highest Quality Securities		21,332		1,591		379		22,544		85.3	%		19,490		1,303		431		20,362		83.3	%

3		2,422		143		50		2,515		9.5	%		2,467		104		63		2,508		10.3	%
4		844		14		22		836		3.2	%		948		26		44		930		3.8	%
5		403		14		15		402		1.5	%		518		21		17		522		2.1	%
6		107		40		6		141		0.5	%		95		29		6		118		0.5	%

Subtotal - Other Securities		3,776		211		93		3,894		14.7	%		4,028		180		130		4,078		16.7	%

Total		25,108		1,802		472		26,438		100.0	%		23,518		1,483		561		24,440		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 June 30, 2011 and December 31, 2010, respectively, 149 securities with amortized cost of $1,170 million (fair value $1,240 million) and 177 securities with amortized cost of $1,787 million (fair value, $1,820 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2011					December 31, 2010
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (1):
Fixed maturities:
Public, available for sale, at fair value		100,644		78.3	%		60,115		74.9	%
Public, held to maturity, at amortized cost		3,781		2.9	%		3,940		4.9	%
Private, available for sale, at fair value		4,322		3.4	%		3,304		4.1	%
Private, held to maturity, at amortized cost		1,310		1.0	%		1,286		1.6	%
Trading account assets supporting insurance liabilities, at fair value		1,749		1.4	%		1,518		1.9	%
Other trading account assets, at fair value		702		0.5	%		702		0.9	%
Equity securities, available for sale, at fair value		3,351		2.6	%		1,612		2.0	%
Commercial mortgage and other loans		5,253		4.1	%		4,202		5.2	%
Policy loans		2,707		2.1	%		2,083		2.6	%
Other long-term investments (2)		3,083		2.4	%		1,320		1.6	%
Short-term investments		1,691		1.3	%		211		0.3	%

Total		128,593		100.0	%		80,293		100.0	%


	June 30, 2011					December 31, 2010
	Amount		% of Total			Amount		% of Total
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities:
Public, available for sale, at fair value		65,117		48.9	%		64,462		49.7	%
Public, held to maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available for sale, at fair value		20,756		15.6	%		19,804		15.3	%
Private, held to maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		16,814		12.6	%		16,253		12.5	%
Other trading account assets, at fair value		475		0.3	%		518		0.4	%
Equity securities, available for sale, at fair value		2,658		2.0	%		2,523		1.9	%
Commercial mortgage and other loans		18,353		13.8	%		17,699		13.7	%
Policy loans		3,339		2.5	%		3,207		2.5	%
Other long-term investments (2)		1,730		1.3	%		1,668		1.3	%
Short-term investments		3,968		3.0	%		3,487		2.7	%

Total		133,210		100.0	%		129,621		100.0	%

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

(2)	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.

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended June 30
	2011									2010
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (3)			Amount			(Losses)			Yield (3)			Amount			(Losses)
Financial Services Businesses (1):
Fixed maturities		3.87	%		1,791			(34	)		4.28	%		1,457			(96	)
Equity securities		5.95	%		82			(19	)		6.71	%		56			10
Commercial mortgage and other loans		5.33	%		252			11			5.61	%		232			10
Policy loans		4.61	%		69			—			4.77	%		57			—
Short-term investments and cash equivalents		0.48	%		14			—			0.31	%		9			—
Other investments		4.56	%		69			213			3.94	%		40			1,382

Gross investment income before investment expenses		3.90	%		2,277			171			4.20	%		1,851			1,306
Investment expenses		-0.13	%		(60	)		—			-0.14	%		(50	)		—

Subtotal		3.77	%		2,217			171			4.06	%		1,801			1,306

Investment results of other entities and operations (2)					308			82						305			59
Less, investment income related to adjusted operating income reconciling items					1									3

Total					2,526			253						2,109			1,365


	Six Months Ended June 30
	2011									2010
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (3)(4)			Amount			(Losses)			Yield (3)			Amount			(Losses)
Financial Services Businesses (1):
Fixed maturities		3.96	%		3,389			(30	)		4.30	%		2,894			(334	)
Equity securities		5.61	%		136			(16	)		6.55	%		109			—
Commercial mortgage and other loans		5.46	%		501			21			5.62	%		462			28
Policy loans		4.67	%		133			—			4.80	%		114			—
Short-term investments and cash equivalents		0.42	%		25			—			0.27	%		17			—
Other investments		5.00	%		134			111			3.86	%		80			1,745

Gross investment income before investment expenses		3.97	%		4,318			86			4.20	%		3,676			1,439
Investment expenses		-0.13	%		(113	)		—			-0.14	%		(100	)		—

Subtotal		3.84	%		4,205			86			4.06	%		3,576			1,439

Investment results of other entities and operations (2)					628			87						602			41
Less, investment income related to adjusted operating income reconciling items					(2	)								4

Total					4,831			173						4,182			1,480

(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.

(4)	Yields are weighted for four months of income and assets related to the Star and Edison businesses.

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2011									2010
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (1)			Amount			(Losses)			Yield (1)			Amount			(Losses)
Japanese Insurance Operations:
Fixed maturities		2.75	%		732			(73	)		2.80	%		418			(114	)
Equity securities		3.62	%		31			(46	)		2.85	%		10			(1	)
Commercial mortgage and other loans		4.04	%		52			5			4.61	%		42			7
Policy loans		3.35	%		23			—			3.73	%		17			—
Short-term investments and cash equivalents		0.87	%		9			—			0.32	%		1			—
Other investments (3)		3.61	%		35			—			3.07	%		17			197

Gross investment income before investment expenses		2.80	%		882			(114	)		2.88	%		505			89
Investment expenses		-0.13	%		(42	)		—			-0.15	%		(25	)		—

Total		2.67	%		840			(114	)		2.73	%		480			89


	Six Months Ended June 30
	2011									2010
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (1)(2)			Amount			(Losses)			Yield (1)			Amount			(Losses)
Japanese Insurance Operations:
Fixed maturities		2.73	%		1,273			(122	)		2.78	%		823			(336	)
Equity securities		3.13	%		44			(46	)		2.80	%		21			(61	)
Commercial mortgage and other loans		4.17	%		100			10			4.60	%		84			8
Policy loans		3.38	%		42			—			3.74	%		33			—
Short-term investments and cash equivalents		0.77	%		13			—			0.31	%		2			—
Other investments (3)		5.01	%		81			(134	)		4.35	%		49			221

Gross investment income before investment expenses		2.82	%		1,553			(292	)		2.90	%		1,012			(168	)
Investment expenses		-0.12	%		(68	)		—			-0.15	%		(51	)		—

Total		2.70	%		1,485			(292	)		2.75	%		961			(168	)

(1)

(2)	Yields are weighted for four months of income and assets related to the Star and Edison businesses.

(3)	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

Second Quarter 2011

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2011								2010
	Investment Income						Realized Gains /		Investment Income						Realized Gains /
	Yield (2)			Amount			(Losses)		Yield (2)			Amount			(Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		5.38	%		1,059			39		5.44	%		1,039			18
Equity securities		9.81	%		51			27		9.89	%		46			11
Commercial mortgage and other loans		5.81	%		200			6		5.89	%		190			3
Policy loans		5.65	%		46			—		5.39	%		40			—
Short-term investments and cash equivalents		0.27	%		5			—		0.30	%		8			—
Other investments		6.31	%		34			213		5.02	%		23			1,185

Gross investment income before investment expenses		5.17	%		1,395			285		5.08	%		1,346			1,217
Investment expenses		-0.12	%		(18	)		—		-0.13	%		(25	)		—

Total		5.05	%		1,377			285		4.95	%		1,321			1,217


	Six Months Ended June 30
	2011								2010
	Investment Income						Realized Gains /		Investment Income						Realized Gains /
	Yield (2)			Amount			(Losses)		Yield (2)			Amount			(Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		5.42	%		2,116			92		5.50	%		2,071			2
Equity securities		9.08	%		92			30		9.75	%		88			61
Commercial mortgage and other loans		5.92	%		401			11		5.92	%		378			20
Policy loans		5.66	%		91			—		5.43	%		81			—
Short-term investments and cash equivalents		0.27	%		12			—		0.27	%		15			—
Other investments		5.00	%		53			245		3.28	%		31			1,524

Gross investment income before investment expenses		5.13	%		2,765			378		5.06	%		2,664			1,607
Investment expenses		-0.13	%		(45	)		—		-0.14	%		(49	)		—

Total		5.00	%		2,720			378		4.92	%		2,615			1,607

(1)

(2)

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

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 or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are classified as other trading account assets.

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 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

KEY DEFINITIONS AND FORMULAS

11. Client Assets:

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

12. Earned Premiums:

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

13. Earnings Per Share of Common Stock:

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

14. Full Service:

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

15. Full Service Stable Value:

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

16. General Account:

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

17. Gibraltar Life Advisors:

Insurance representatives for Gibraltar Life.

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

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

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

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

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

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

21. Individual Annuities - Net Amounts at Risk:

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

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

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

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, for the Financial Services Businesses, 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 8.80% for the six months ended June 30, 2011, 10.26% for the six months ended June 30, 2010, 10.14% for the three months ended June 30, 2011, 7.50% for the three months ended March 31, 2011, 2.63% for the three months ended December 31, 2010, 15.60% for the three months ended September 30, 2010, and 11.76% for the three months ended June 30, 2010.

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, 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 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2011

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of August 3, 2011


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

CREDIT RATINGS:
as of August 3, 2011

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

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

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

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

*	NR indicates not rated.

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

INVESTOR INFORMATION:


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

Common Stock:

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

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PRUDENTIAL FINANCIAL INC - FORM 8-K - EX-99.1 - QUARTERLY FINANCIAL SUPPLEMENT - August 3, 2011

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