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

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8-K - FORM 8-K - PRUDENTIAL FINANCIAL INC	d248371d8k.htm
EX-99.0 - NEWS RELEASE OF PRUDENTIAL FINANCIAL, INC., DATED NOVEMBER 2, 2011 - PRUDENTIAL FINANCIAL INC	d248371dex990.htm

Exhibit 99.1

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

THIRD 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.

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF THIRD QUARTER 2010 AND 2011 ACTUARIAL UPDATES		36

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2010 AND 2011 ACTUARIAL UPDATES		37

KEY DEFINITIONS AND FORMULAS		38-40

RATINGS AND INVESTOR INFORMATION		41

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

								*Financial Services Businesses:*
								Pre-tax adjusted operating income (loss) by division:
	1,282			1,481			-13%	U.S. Retirement Solutions and Investment Management Division		855			624			618			621			43
	524			515			2%	U.S. Individual Life and Group Insurance Division		251			200			136			179			209
	2,013			1,497			34%	International Insurance Division		540			588			672			590			751
	(830	)		(655	)		-27%	Corporate and other operations		(265	)		(238	)		(272	)		(231	)		(327	)

	2,989			2,838			5%	Total pre-tax adjusted operating income		1,381			1,174			1,154			1,159			676
	791			749			6%	Income taxes, applicable to adjusted operating income		377			325			319			316			156

	2,198			2,089			5%	Financial Services Businesses after-tax adjusted operating income		1,004			849			835			843			520


								Reconciling items:
	1,253			844			48%	Realized investment gains (losses), net, and related charges and adjustments		284			(906	)		(360	)		(11	)		1,624
	170			719			-76%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		388			(218	)		(17	)		177			10
	(76	)		(831	)		91%	Change in experience-rated contractholder liabilities due to asset value changes		(367	)		200			34			(178	)		68
	(1	)		(46	)		98%	Divested businesses		(32	)		(9	)		(1	)		(2	)		2
	(203	)		(36	)		-464%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(18	)		(62	)		(133	)		18			(88	)

	1,143			650			76%	Total reconciling items, before income taxes		255			(995	)		(477	)		4			1,616
	556			291			91%	Income taxes, not applicable to adjusted operating income		109			(307	)		(137	)		14			679

	587			359			64%	Total reconciling items, after income taxes		146			(688	)		(340	)		(10	)		937

	2,785			2,448			14%	Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		1,150			161			495			833			1,457
	119			34			250%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		16			39			80			(18	)		57

	2,904			2,482			17%	Income from continuing operations attributable to Prudential Financial, Inc.		1,166			200			575			815			1,514
	64			(1	)		6500%	Earnings attributable to noncontrolling interests		(2	)		12			25			29			10

	2,968			2,481			20%	Income from continuing operations (after-tax) of Financial Services Businesses		1,164			212			600			844			1,524
	21			19			11%	Income (loss) from discontinued operations, net of taxes		1			13			14			16			(9	)

	2,989			2,500			20%	Net income of Financial Services Businesses		1,165			225			614			860			1,515
	64			(1	)		6500%	Less: Income (loss) attributable to noncontrolling interests		(2	)		12			25			29			10

	2,925			2,501			17%	Net income of Financial Services Businesses attributable to Prudential Financial, Inc.		1,167			213			589			831			1,505

	9.69%			10.59%				Operating Return on Average Equity (based on adjusted operating income)		14.66%			11.86%			11.39%			11.13%			6.70%

								*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
	2,925			2,501				Net income of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		1,167			213			589			831			1,505
	55			517				Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		77			(36	)		19			7			29

	2,980			3,018				Consolidated net income attributable to Prudential Financial, Inc.		1,244			177			608			838			1,534

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

						Earnings per share of Common Stock (diluted):
	4.48			4.45		Financial Services Businesses after-tax adjusted operating income		2.12			1.76			1.69			1.71			1.07

						Reconciling items:
	2.54			1.79		Realized investment gains (losses), net, and related charges and adjustments		0.60			(1.87	)		(0.73	)		(0.02	)		3.32
	0.35			1.52		Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.82			(0.45	)		(0.03	)		0.36			0.02
	(0.15	)		(1.76	)	Change in experience-rated contractholder liabilities due to asset value changes		(0.78	)		0.41			0.07			(0.36	)		0.14
	—			(0.10	)	Divested businesses		(0.07	)		(0.02	)		—			—			—
	(0.02	)		(0.01	)	Difference in earnings allocated to participating unvested share-based payment awards		—			0.01			0.01			—			(0.02	)

	2.72			1.44		Total reconciling items, before income taxes		0.57			(1.92	)		(0.68	)		(0.02	)		3.46
	1.31			0.62		Income taxes, not applicable to adjusted operating income		0.23			(0.58	)		(0.16	)		0.04			1.45

	1.41			0.82		Total reconciling items, after income taxes		0.34			(1.34	)		(0.52	)		(0.06	)		2.01

	5.89			5.27		Income from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		2.46			0.42			1.17			1.65			3.08
	0.04			0.04		Income (loss) from discontinued operations, net of taxes		—			0.03			0.03			0.03			(0.02	)

	5.93			5.31		Net income of Financial Services Businesses attributable to Prudential Financial, Inc.		2.46			0.45			1.20			1.68			3.06


	484.0			464.0		Weighted average number of outstanding Common shares (basic)		464.8			475.1			484.9			486.0			481.2

	492.7			472.7		Weighted average number of outstanding Common shares (diluted) (1)		473.2			483.5			493.9			494.8			489.3

	25			29		Direct equity adjustments for earnings per share calculation		9			7			9			8			8

	13			13		Earnings related to interest, net of tax, on exchangeable surplus notes (1)		4			4			4			5			4

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	30			27		Financial Services Businesses after-tax adjusted operating income		13			11			11			12			7
	39			32		Income from continuing operations (after-tax) of Financial Services Businesses		15			7			8			11			20

(1)

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

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

				*Financial Services Businesses Capitalization Data (1):*
				Senior Debt:
				Short-term debt		2,572		1,982		2,432		2,152		2,899
				Long-term debt		19,068		20,384		20,764		21,309		20,651
				Junior Subordinated Long-Term Debt		1,519		1,519		1,519		1,519		1,519

				Attributed Equity:
				Including accumulated other comprehensive income		32,007		31,032		31,300		33,623		35,651
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		28,507		29,248		30,055		31,096		31,954
				Excluding total accumulated other comprehensive income		27,418		28,100		28,785		29,683		30,490

				Total Capitalization:
				Including accumulated other comprehensive income		52,594		52,935		53,583		56,451		57,821
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		49,094		51,151		52,338		53,924		54,124
				Excluding total accumulated other comprehensive income		48,005		50,003		51,068		52,511		52,660

				Book value per share of Common Stock:
				Including accumulated other comprehensive income		67.81		63.11		63.50		68.09		74.52
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		60.40		59.48		60.98		62.97		66.79
				Excluding total accumulated other comprehensive income		58.09		57.15		58.40		60.11		63.73

				Number of diluted shares at end of period (2)		472.0		491.7		492.9		493.8		478.4

				*Common Stock Price Range (based on closing price):*
	67.32		65.82	High		59.54		59.95		67.32		64.62		65.26
	43.93		47.02	Low		49.65		50.68		58.32		57.77		43.93
	46.86		54.18	Close		54.18		58.71		61.58		63.59		46.86

				*Common Stock market capitalization (1)*		25,191		28,404		29,900		30,912		22,113

(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

Third Quarter 2011

OPERATIONS HIGHLIGHTS


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

				*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		222.1		235.3		246.2		256.2		258.8
				Retail customers		92.7		101.2		108.8		109.3		110.1
				General account		203.3		200.8		213.8		218.0		230.5

				Total Investment Management and Advisory Services		518.1		537.3		568.8		583.5		599.4
				Non-proprietary assets under management		136.2		149.8		161.7		167.3		136.1

				Total managed by U.S. Retirement Solutions and Investment Management Division		654.3		687.1		730.5		750.8		735.5
				Managed by U.S. Individual Life and Group Insurance Division		13.0		13.1		13.3		13.5		13.6
				Managed by International Insurance Division		82.8		83.8		114.7		118.9		122.2

				Total assets under management		750.1		784.0		858.5		883.2		871.3
				Client assets under administration		80.8		84.1		86.6		89.4		82.6

				Total assets under management and administration		830.9		868.1		945.1		972.6		953.9


				Assets managed or administered for customers outside of the United States at end of period		147.6		151.1		201.4		208.3		213.2

				*Distribution Representatives (1):*
				Prudential Agents		2,478		2,471		2,506		2,551		2,571
				International Life Planners		6,608		6,565		6,581		6,568		6,699
				Gibraltar Life Advisors (4)		5,913		6,281		13,227		13,353		12,936

	50		48	*Prudential Agent productivity ($ thousands)*		49		68		50		50		52

(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

Third Quarter 2011

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

								Revenues (1):
	15,761			11,308			39%	Premiums		3,969			3,943			4,830			5,508			5,423
	2,999			2,551			18%	Policy charges and fee income		803			929			982			1,038			979
	7,376			6,382			16%	Net investment income		2,200			2,236			2,305			2,526			2,545
	3,165			2,448			29%	Asset management fees, commissions and other income		853			961			1,084			1,078			1,003

	29,301			22,689			29%	Total revenues		7,825			8,069			9,201			10,150			9,950


								Benefits and Expenses (1):
	15,233			11,187			36%	Insurance and annuity benefits		3,756			3,707			4,651			5,162			5,420
	2,803			2,541			10%	Interest credited to policyholders’ account balances		820			877			829			934			1,040
	865			776			11%	Interest expense		267			273			279			290			296
	(2,899	)		(2,243	)		-29%	Deferral of acquisition costs		(780	)		(849	)		(908	)		(985	)		(1,006	)
	1,504			990			52%	Amortization of acquisition costs		99			378			466			539			499
	8,806			6,600			33%	General and administrative expenses		2,282			2,509			2,730			3,051			3,025

	26,312			19,851			33%	Total benefits and expenses		6,444			6,895			8,047			8,991			9,274

	2,989			2,838			5%	Adjusted operating income before income taxes		1,381			1,174			1,154			1,159			676


								Reconciling items:
	3,178			1,485			114%	Realized investment gains (losses), net, and related adjustments		166			(1,369	)		(356	)		158			3,376
	(1,925	)		(641	)		-200%	Related charges		118			463			(4	)		(169	)		(1,752	)

	1,253			844			48%	Total realized investment gains (losses), net, and related charges and adjustments		284			(906	)		(360	)		(11	)		1,624

	170			719			-76%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		388			(218	)		(17	)		177			10
	(76	)		(831	)		91%	Change in experience-rated contractholder liabilities due to asset value changes		(367	)		200			34			(178	)		68
	(1	)		(46	)		98%	Divested businesses		(32	)		(9	)		(1	)		(2	)		2
	(203	)		(36	)		-464%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(18	)		(62	)		(133	)		18			(88	)

	1,143			650			76%	Total reconciling items, before income taxes		255			(995	)		(477	)		4			1,616


	4,132			3,488			18%	Income from continuing operations before income taxes and equity in earnings of operating joint ventures		1,636			179			677			1,163			2,292
	1,347			1,040			30%	Income tax expense		486			18			182			330			835

	2,785			2,448			14%	Income from continuing operations before equity in earnings of operating joint ventures		1,150			161			495			833			1,457

(1)

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

Page 5

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	09/30/2010		12/31/2010		03/31/2011		06/30/2011		09/30/2011

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $141,794; $144,248; $182,343; $186,022; $195,462)		151,227		149,806		186,861		192,902		205,102
Fixed maturities, held to maturity, at amortized cost (fair value $5,522; $5,477; $5,283; $5,342; $5,484)		5,233		5,226		5,102		5,091		5,195
Trading account assets supporting insurance liabilities, at fair value		17,750		17,771		18,314		18,563		19,535
Other trading account assets, at fair value		5,512		4,069		3,599		3,616		6,237
Equity securities, available for sale, at fair value (cost $3,547; $3,605; $5,621; $5,517; $4,280)		4,021		4,148		6,286		6,022		4,561
Commercial mortgage and other loans		23,466		23,324		24,259		24,712		25,315
Policy loans		5,147		5,290		5,926		6,046		6,176
Other long-term investments		4,572		4,589		6,335		6,239		5,919
Short-term investments		4,646		4,133		6,094		6,497		6,764

Total investments		221,574		218,356		262,776		269,688		284,804
Cash and cash equivalents		11,019		12,447		10,512		13,234		14,734
Accrued investment income		1,721		1,734		2,083		2,111		2,147
Deferred policy acquisition costs		14,291		15,672		16,224		16,563		15,596
Other assets		15,155		16,161		21,066		20,655		16,630
Separate account assets		194,463		207,776		218,382		222,892		207,366

Total assets		458,223		472,146		531,043		545,143		541,277


Liabilities:
Future policy benefits		82,063		82,242		102,404		108,766		117,978
Policyholders’ account balances		99,753		100,905		127,512		125,494		129,069
Securities sold under agreements to repurchase		2,628		2,557		2,599		2,830		2,555
Cash collateral for loaned securities		1,831		1,614		1,522		2,415		2,334
Income taxes		7,438		6,736		6,057		6,939		8,706
Senior short-term debt		2,572		1,982		2,432		2,152		2,899
Senior long-term debt		19,068		20,384		20,764		21,309		20,651
Junior subordinated long-term debt		1,519		1,519		1,519		1,519		1,519
Other liabilities		14,359		14,886		16,002		16,611		11,894
Separate account liabilities		194,463		207,776		218,382		222,892		207,366

Total liabilities		425,694		440,601		499,193		510,927		504,971


Attributed Equity:
Accumulated other comprehensive income		4,589		2,932		2,515		3,940		5,161
Other attributed equity		27,418		28,100		28,785		29,683		30,490

Total attributed equity		32,007		31,032		31,300		33,623		35,651

Noncontrolling Interest		522		513		550		593		655

Total Equity		32,529		31,545		31,850		34,216		36,306

Total liabilities and equity		458,223		472,146		531,043		545,143		541,277

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended September 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		5,423			189			1,382			3,846			6
Policy charges and fee income		979			519			319			150			(9	)
Net investment income		2,545			999			421			1,026			99
Asset management fees, commissions and other income		1,003			882			81			104			(64	)

Total revenues		9,950			2,589			2,203			5,126			32


Benefits and Expenses (1):
Insurance and annuity benefits		5,420			698			1,538			3,034			150
Interest credited to policyholders’ account balances		1,040			623			134			292			(9	)
Interest expense		296			35			48			—			213
Deferral of acquisition costs		(1,006	)		(275	)		(115	)		(624	)		8
Amortization of acquisition costs		499			280			(65	)		297			(13	)
General and administrative expenses		3,025			1,185			454			1,376			10

Total benefits and expenses		9,274			2,546			1,994			4,375			359


Adjusted operating income (loss) before income taxes		676			43			209			751			(327	)


	Quarter Ended September 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		3,969			400			1,320			2,253			(4	)
Policy charges and fee income		803			415			300			107			(19	)
Net investment income		2,200			1,066			399			642			93
Asset management fees, commissions and other income		853			795			85			40			(67	)

Total revenues		7,825			2,676			2,104			3,042			3


Benefits and Expenses (1):
Insurance and annuity benefits		3,756			507			1,428			1,801			20
Interest credited to policyholders’ account balances		820			558			130			148			(16	)
Interest expense		267			24			45			1			197
Deferral of acquisition costs		(780	)		(325	)		(110	)		(357	)		12
Amortization of acquisition costs		99			(52	)		(61	)		215			(3	)
General and administrative expenses		2,282			1,109			421			694			58

Total benefits and expenses		6,444			1,821			1,853			2,502			268


Adjusted operating income (loss) before income taxes		1,381			855			251			540			(265	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Nine Months Ended September 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		15,761			644			4,103			11,025			(11	)
Policy charges and fee income		2,999			1,531			1,088			406			(26	)
Net investment income		7,376			3,077			1,246			2,752			301
Asset management fees, commissions and other income		3,165			2,826			246			320			(227	)

Total revenues		29,301			8,078			6,683			14,503			37


Benefits and Expenses (1):
Insurance and annuity benefits		15,233			1,654			4,501			8,910			168
Interest credited to policyholders’ account balances		2,803			1,736			392			702			(27	)
Interest expense		865			104			141			1			619
Deferral of acquisition costs		(2,899	)		(953	)		(330	)		(1,649	)		33
Amortization of acquisition costs		1,504			569			135			834			(34	)
General and administrative expenses		8,806			3,686			1,320			3,692			108

Total benefits and expenses		26,312			6,796			6,159			12,490			867


Adjusted operating income (loss) before income taxes		2,989			1,282			524			2,013			(830	)


	Nine Months Ended September 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		11,308			937			3,682			6,702			(13	)
Policy charges and fee income		2,551			1,206			1,081			298			(34	)
Net investment income		6,382			3,161			1,163			1,807			251
Asset management fees, commissions and other income		2,448			2,271			243			140			(206	)

Total revenues		22,689			7,575			6,169			8,947			(2	)


Benefits and Expenses (1):
Insurance and annuity benefits		11,187			1,681			4,059			5,386			61
Interest credited to policyholders’ account balances		2,541			1,806			380			412			(57	)
Interest expense		776			69			117			2			588
Deferral of acquisition costs		(2,243	)		(917	)		(337	)		(1,023	)		34
Amortization of acquisition costs		990			219			155			643			(27	)
General and administrative expenses		6,600			3,236			1,280			2,030			54

Total benefits and expenses		19,851			6,094			5,654			7,450			653


Adjusted operating income (loss) before income taxes		2,838			1,481			515			1,497			(655	)

(1)

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of September 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		284,804		96,852		35,048		147,657		5,247
Deferred policy acquisition costs		15,596		2,645		4,721		8,351		(121	)
Other assets		33,511		8,952		4,544		12,836		7,179
Separate account assets		207,366		173,779		34,655		1,029		(2,097	)

Total assets		541,277		282,228		78,968		169,873		10,208


Liabilities:
Future policy benefits		117,978		20,617		10,688		86,144		529
Policyholders’ account balances		129,069		57,908		16,572		55,164		(575	)
Debt		25,069		4,553		7,069		18		13,429
Other liabilities		25,489		9,409		4,388		10,723		969
Separate account liabilities		207,366		173,779		34,655		1,029		(2,097	)

Total liabilities		504,971		266,266		73,372		153,078		12,255


Attributed Equity:
Accumulated other comprehensive income (loss)		5,161		1,892		1,421		3,109		(1,261	)
Other attributed equity		30,490		13,406		4,175		13,622		(713	)

Total attributed equity		35,651		15,298		5,596		16,731		(1,974	)

Noncontrolling Interest		655		664		—		64		(73	)

Total Equity		36,306		15,962		5,596		16,795		(2,047	)


Total liabilities and equity		541,277		282,228		78,968		169,873		10,208


	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

Third Quarter 2011

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of September 30, 2011									As of December 31, 2010
	Senior debt				Junior Subordinated Long-term Debt		Total Debt			Senior debt				Junior Subordinated Long-term Debt		Total Debt
	Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt			Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt
Financial Services Businesses
*Borrowings by use of proceeds:*
Capital Debt		748		8,357		1,519		10,624			371		6,873		1,519		8,763
Investment related		1,505		8,282		—		9,787			803		8,766		—		9,569
Securities business related		532		498		—		1,030			691		1,539		—		2,230
Specified other businesses		114		3,514		—		3,628			117		3,206		—		3,323
Limited recourse and non-recourse borrowing		—		—		—		—			—		—		—		—

Total debt - Financial Services Businesses		2,899		20,651		1,519		25,069			1,982		20,384		1,519		23,885

Ratio of long-term and short-term capital debt to capitalization (1)								24.1	%								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 September 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		9,062		1,040		522		10,624			7,648		1,064		51		8,763
Investment related		5,450		1,118		3,219		9,787			5,686		654		3,229		9,569
Securities business related		823		198		9		1,030			1,673		552		5		2,230
Specified other businesses		2,884		744		—		3,628			2,603		720		—		3,323
Limited recourse and non-recourse borrowing		—		—		—		—			—		—		—		—

Total debt - Financial Services Businesses		18,219		3,100		3,750		25,069			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 September 30, 2011 and $942 million for December 31, 2010.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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			3Q			4Q			1Q			2Q			3Q

								Revenues (1):
	644			937			-31%	Premiums		400			295			211			244			189
	1,531			1,206			27%	Policy charges and fee income		415			456			492			520			519
	3,077			3,161			-3%	Net investment income		1,066			1,076			1,044			1,034			999
	2,826			2,271			24%	Asset management fees, commissions and other income		795			864			905			1,039			882

	8,078			7,575			7%	Total revenues		2,676			2,691			2,652			2,837			2,589


								Benefits and Expenses (1):
	1,654			1,681			-2%	Insurance and annuity benefits		507			458			426			530			698
	1,736			1,806			-4%	Interest credited to policyholders’ account balances		558			609			550			563			623
	104			69			51%	Interest expense		24			27			34			35			35
	(953	)		(917	)		-4%	Deferral of acquisition costs		(325	)		(373	)		(398	)		(280	)		(275	)
	569			219			160%	Amortization of acquisition costs		(52	)		86			133			156			280
	3,686			3,236			14%	General and administrative expenses		1,109			1,260			1,289			1,212			1,185

	6,796			6,094			12%	Total benefits and expenses		1,821			2,067			2,034			2,216			2,546

	1,282			1,481			-13%	Adjusted operating income before income taxes		855			624			618			621			43

(1)

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

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

LOGO

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

(in millions)


	Nine Months Ended September 30, 2011												Quarter Ended September 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		644			97			547			—			189			27			162			—
Policy charges and fee income		1,531			1,387			144			—			519			469			50			—
Net investment income		3,077			593			2,396			88			999			195			786			18
Asset management fees, commissions and other income		2,826			659			538			1,629			882			214			173			495

Total revenues		8,078			2,736			3,625			1,717			2,589			905			1,171			513


Benefits and Expenses (1):
Insurance and annuity benefits		1,654			501			1,153			—			698			331			367			—
Interest credited to policyholders’ account balances		1,736			454			1,282			—			623			182			441			—
Interest expense		104			83			11			10			35			28			4			3
Deferral of acquisition costs		(953	)		(903	)		(32	)		(18	)		(275	)		(260	)		(10	)		(5	)
Amortization of acquisition costs		569			507			43			19			280			262			11			7
General and administrative expenses (2)		3,686			1,772			712			1,202			1,185			553			247			385

Total benefits and expenses		6,796			2,414			3,169			1,213			2,546			1,096			1,060			390

Adjusted operating income (loss) before income taxes		1,282			322			456			504			43			(191	)		111			123


	Nine Months Ended September 30, 2010												Quarter Ended September 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		937			129			808			—			400			49			351			—
Policy charges and fee income		1,206			1,055			151			—			415			365			50			—
Net investment income		3,161			660			2,417			84			1,066			220			815			31
Asset management fees, commissions and other income		2,271			490			499			1,282			795			173			160			462

Total revenues		7,575			2,334			3,875			1,366			2,676			807			1,376			493


Benefits and Expenses (1):
Insurance and annuity benefits		1,681			288			1,393			—			507			(49	)		556			—
Interest credited to policyholders’ account balances		1,806			437			1,369			—			558			98			460			—
Interest expense		69			46			13			10			24			16			5			3
Deferral of acquisition costs		(917	)		(860	)		(39	)		(18	)		(325	)		(308	)		(11	)		(6	)
Amortization of acquisition costs		219			185			15			19			(52	)		(64	)		6			6
General and administrative expenses (2)		3,236			1,537			699			1,000			1,109			526			241			342

Total benefits and expenses		6,094			1,633			3,450			1,011			1,821			219			1,257			345

Adjusted operating income before income taxes		1,481			701			425			355			855			588			119			148

(1)

(2)

General and administrative expenses for Individual Annuities include $14 million for the nine months ended September 30, 2011 and $7 million for the nine months ended September 30, 2010, $8 million for the quarter ended September 30, 2011 and $(2) million for the quarter ended September 30, 2010 for the amortization, net of interest, of value of business acquired (VOBA).

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

LOGO

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

(in millions)


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

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	102,348			80,519		Beginning total account value		83,593			93,375			102,348			109,969			112,202
	15,818			15,543		Sales		5,368			6,108			6,815			4,531			4,472
	(5,523	)		(5,044	)	Surrenders and withdrawals		(1,660	)		(1,879	)		(1,967	)		(1,933	)		(1,623	)

	10,295			10,499		Net sales		3,708			4,229			4,848			2,598			2,849
	(816	)		(729	)	Benefit payments		(260	)		(252	)		(254	)		(290	)		(272	)

	9,479			9,770		Net flows		3,448			3,977			4,594			2,308			2,577
	(7,285	)		4,260		Change in market value, interest credited, and other (1)		6,756			5,488			3,552			493			(11,330	)
	(1,663	)		(1,174	)	Policy charges		(422	)		(492	)		(525	)		(568	)		(570	)

	102,879			93,375		Ending total account value		93,375			102,348			109,969			112,202			102,879


						Fixed Annuities:
	3,837			3,452		Beginning total account value		3,766			3,828			3,837			3,841			3,825
	53			91		Sales		29			12			18			20			15
	(139	)		(170	)	Surrenders and withdrawals		(44	)		(45	)		(48	)		(45	)		(46	)

	(86	)		(79	)	Net redemptions		(15	)		(33	)		(30	)		(25	)		(31	)
	(199	)		(199	)	Benefit payments		(62	)		(68	)		(67	)		(65	)		(67	)

	(285	)		(278	)	Net flows		(77	)		(101	)		(97	)		(90	)		(98	)
	259			655		Interest credited and other (1)		139			111			102			74			83
	(1	)		(1	)	Policy charges		—			(1	)		(1	)		—			—

	3,810			3,828		Ending total account value		3,828			3,837			3,841			3,825			3,810


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (2):
	2,491			2,030		Insurance Agents		694			817			997			758			736
	3,383			3,312		Wirehouses		1,101			1,300			1,414			929			1,040
	7,318			7,731		Independent Financial Planners		2,618			2,880			3,339			2,057			1,922
	2,679			2,561		Bank Distribution		984			1,123			1,083			807			789

	15,871			15,634		Total		5,397			6,120			6,833			4,551			4,487

(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

Third Quarter 2011

LOGO

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

(in millions)


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

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	13,223			14,606		Beginning balance		14,398			13,693			13,223			12,621			12,185
	1,401			1,922		Premiums and deposits		691			569			521			391			489
	(935	)		(1,118	)	Surrenders and withdrawals		(352	)		(362	)		(346	)		(294	)		(295	)

	466			804		Net sales		339			207			175			97			194
	(255	)		(262	)	Benefit payments		(86	)		(89	)		(88	)		(85	)		(82	)

	211			542		Net flows		253			118			87			12			112
	308			432		Interest credited and other		151			129			106			100			102
	(770	)		(1,886	)	Net transfers (to) from separate account		(1,109	)		(716	)		(794	)		(548	)		572
	(1	)		(1	)	Policy charges		—			(1	)		(1	)		—			—

	12,971			13,693		Ending balance		13,693			13,223			12,621			12,185			12,971


						Account Values in Separate Account:
	92,962			69,365		Beginning balance		72,961			83,510			92,962			101,189			103,842
	14,470			13,712		Premiums and deposits		4,706			5,551			6,312			4,160			3,998
	(4,727	)		(4,096	)	Surrenders and withdrawals		(1,352	)		(1,562	)		(1,669	)		(1,684	)		(1,374	)

	9,743			9,616		Net sales		3,354			3,989			4,643			2,476			2,624
	(760	)		(666	)	Benefit payments		(236	)		(231	)		(233	)		(270	)		(257	)

	8,983			8,950		Net flows		3,118			3,758			4,410			2,206			2,367
	(7,334	)		4,483		Change in market value, interest credited and other		6,744			5,470			3,548			467			(11,349	)
	770			1,886		Net transfers (to) from general account		1,109			716			794			548			(572	)
	(1,663	)		(1,174	)	Policy charges		(422	)		(492	)		(525	)		(568	)		(570	)

	93,718			83,510		Ending balance		83,510			92,962			101,189			103,842			93,718

(1)

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

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

LOGO

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

(in millions)


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

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

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		9,687		9,873		9,935		9,667		8,844
Guaranteed minimum withdrawal benefits		1,302		1,315		1,296		1,215		1,018
Guaranteed minimum income benefits		4,416		4,532		4,480		4,261		3,580
Guaranteed minimum withdrawal & income benefits		51,457		59,351		66,857		70,349		66,080

Total		66,862		75,071		82,568		85,492		79,522


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		49,721		57,336		64,786		68,273		64,769
Account Values without Auto-Rebalancing Feature		17,141		17,735		17,782		17,219		14,753

Total		66,862		75,071		82,568		85,492		79,522


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		1,473		1,217		1,227		1,438		4,996
Net Amount at Risk without Auto-Rebalancing Feature		2,406		1,825		1,574		1,622		2,934

Total		3,879		3,042		2,801		3,060		7,930

(1)	At end of period.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

LOGO

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

(in millions)


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

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

Variable Annuity Account Values by Death Benefit Features
Return of net deposits:
Account value		62,940		69,982		76,405		78,748		72,971
Net amount at risk		1,666		1,132		929		918		3,238
Minimum return, anniversary contract value, or maximum contract value:
Account value		27,236		29,047		30,216		30,191		27,022
Net amount at risk		5,254		4,327		3,871		3,958		6,751

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		49,721		57,336		64,786		68,273		64,769
Account Values without Auto-Rebalancing Feature		40,455		41,693		41,835		40,666		35,224

Total		90,176		99,029		106,621		108,939		99,993


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		672		592		557		591		3,042
Net Amount at Risk without Auto-Rebalancing Feature		6,248		4,867		4,243		4,285		6,947

Total		6,920		5,459		4,800		4,876		9,989

(1)	At end of period.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

LOGO

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

(in millions)


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

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	141,313			126,345		Beginning total account value		125,176			135,248			141,313			145,977			146,580
	12,942			14,897		Deposits and sales		5,255			4,369			4,848			4,128			3,966
	(13,267	)		(11,418	)	Withdrawals and benefits		(3,167	)		(5,386	)		(4,927	)		(4,214	)		(4,126	)
	(6,790	)		5,424		Change in market value, interest credited and interest income		7,984			7,082			4,743			689			(12,222	)

	134,198			135,248		Ending total account value		135,248			141,313			145,977			146,580			134,198


	(325	)		3,479		Net additions (withdrawals)		2,088			(1,017	)		(79	)		(86	)		(160	)


						Stable value account values included above		39,022			39,142			39,062			39,828			40,889

						Institutional Investment Products:
	64,183			51,908		Beginning total account value		55,965			59,062			64,183			68,892			74,131
	16,948			8,644		Additions		3,076			6,654			5,785			5,592			5,571
	(4,066	)		(5,781	)	Withdrawals and benefits (1)		(1,640	)		(1,177	)		(1,128	)		(1,437	)		(1,501	)
	3,848			3,545		Change in market value, interest credited and interest income		1,298			(175	)		482			1,190			2,176
	(400	)		746		Other (2)		363			(181	)		(430	)		(106	)		136

	80,513			59,062		Ending total account value		59,062			64,183			68,892			74,131			80,513


	12,882			2,863		Net additions		1,436			5,477			4,657			4,155			4,070

(1)

Includes $(240) million, $(67) million, $(34) million, $(18) million and $(16) million for the three months ended September 30, 2010, December 31, 2010, March 31, 2011, June 30, 2011 and September 30, 2011 respectively, and $(68) million, $(685) million for the nine months ended September 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 $(118) million, $(402) million and $(13) million for the three months ended December 31, 2010, March 31, 2011 and June 30, 2011, respectively and $(415) million and $(46) million for the nine months ended September 30, 2011 and 2010 respectively. “Other” activity also includes $240 million, $67 million, $34 million, $18 million and $16 million, for the three months ended September 30, 2010, December 31, 2010, March 31, 2011, June 30, 2011 and September 30, 2011, respectively, $68 million and $685 million for the nine months ended September 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

Third Quarter 2011

LOGO

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


						Supplementary Revenue Information (in millions):
Year-to-date				% Change			2010				2011
2011		2010		% Change			3Q		4Q		1Q		2Q		3Q

						Analysis of revenues by type:
	1,091		935		17%	Asset management fees		320		338		356		368		367
	241		142		70%	Incentive, transaction, principal investing and commercial mortgage revenues		62		68		57		149		35
	385		289		33%	Service, distribution and other revenues		111		116		135		139		111

	1,717		1,366		26%	Total Asset Management segment revenues		493		522		548		656		513


						Analysis of asset management fees by source:
	530		463		14%	Institutional customers		159		163		174		178		178
	319		255		25%	Retail customers		87		98		104		108		107
	242		217		12%	General account		74		77		78		82		82

	1,091		935		17%	Total asset management fees		320		338		356		368		367


Supplementary Assets Under Management Information (in billions):
	September 30, 2011
	Equity		Fixed Income		Real Estate		Total
Institutional customers		42.2		189.6		27.0		258.8
Retail customers		63.7		45.0		1.4		110.1
General account		3.8		225.4		1.3		230.5

Total		109.7		460.0		29.7		599.4


	September 30, 2010
	Equity		Fixed Income		Real Estate		Total
Institutional customers		46.7		152.4		23.0		222.1
Retail customers		64.1		27.1		1.5		92.7
General account		3.8		198.6		0.9		203.3

Total		114.6		378.1		25.4		518.1

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

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

(in billions)


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

						Institutional Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	197.6			152.1		Beginning assets under management		167.3			184.1			197.6			209.2			218.9
	33.8			33.9		Additions		11.0			16.6			12.4			10.8			10.6
	(20.8	)		(15.2	)	Withdrawals		(5.2	)		(6.7	)		(6.5	)		(5.8	)		(8.5	)
	10.9			13.9		Change in market value		11.0			3.0			5.4			4.7			0.8
	(0.3	)		(0.6	)	Net money market flows		—			0.1			(0.1	)		—			(0.2	)
	0.4			—		Other (1)		—			0.5			0.4			—			—

	221.6			184.1		Ending assets under management		184.1			197.6			209.2			218.9			221.6
	37.2			38.0		Affiliated institutional assets under management		38.0			37.7			37.0			37.3			37.2

	258.8			222.1		Total assets managed for institutional customers at end of period		222.1			235.3			246.2			256.2			258.8


	13.0			18.7		Net institutional additions, excluding money market activity		5.8			9.9			5.9			5.0			2.1


						Retail Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	61.6			51.1		Beginning assets under management		49.1			55.5			61.6			66.2			66.8
	17.3			15.7		Additions		4.1			5.3			6.1			5.0			6.2
	(15.0	)		(10.5	)	Withdrawals		(2.9	)		(4.1	)		(4.1	)		(5.2	)		(5.7	)
	(4.6	)		1.8		Change in market value		5.2			4.9			3.0			0.8			(8.4	)
	—			(2.6	)	Net money market flows		—			—			—			—			—
	(0.4	)		—		Other (2)		—			—			(0.4	)		—			—

	58.9			55.5		Ending assets under management		55.5			61.6			66.2			66.8			58.9
	51.2			37.2		Affiliated retail assets under management		37.2			39.6			42.6			42.5			51.2

	110.1			92.7		Total assets managed for retail customers at end of period		92.7			101.2			108.8			109.3			110.1


	2.3			5.2		Net retail additions (withdrawals), excluding money market activity		1.2			1.2			2.0			(0.2	)		0.5

(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 2011 represent a reclassification of certain fund balances to affiliated retail assets under management.

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

LOGO

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

(in millions)


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

								Revenues (1):
	4,103			3,682			11%	Premiums		1,320			1,239			1,360			1,361			1,382
	1,088			1,081			1%	Policy charges and fee income		300			372			385			384			319
	1,246			1,163			7%	Net investment income		399			408			407			418			421
	246			243			1%	Asset management fees, commissions and other income		85			85			79			86			81

	6,683			6,169			8%	Total revenues		2,104			2,104			2,231			2,249			2,203


								Benefits and Expenses (1):
	4,501			4,059			11%	Insurance and annuity benefits		1,428			1,319			1,510			1,453			1,538
	392			380			3%	Interest credited to policyholders’ account balances		130			131			128			130			134
	141			117			21%	Interest expense		45			45			45			48			48
	(330	)		(337	)		2%	Deferral of acquisition costs		(110	)		(105	)		(103	)		(112	)		(115	)
	135			155			-13%	Amortization of acquisition costs		(61	)		88			93			107			(65	)
	1,320			1,280			3%	General and administrative expenses		421			426			422			444			454

	6,159			5,654			9%	Total benefits and expenses		1,853			1,904			2,095			2,070			1,994


	524			515			2%	Adjusted operating income before income taxes		251			200			136			179			209

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

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

(in millions)


	Nine Months Ended September 30, 2011									Quarter Ended September 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		4,103			537			3,566			1,382			182			1,200
Policy charges and fee income		1,088			694			394			319			156			163
Net investment income		1,246			729			517			421			248			173
Asset management fees, commissions and other income		246			171			75			81			57			24

Total revenues		6,683			2,131			4,552			2,203			643			1,560


Benefits and Expenses (1):
Insurance and annuity benefits		4,501			868			3,633			1,538			303			1,235
Interest credited to policyholders’ account balances		392			222			170			134			77			57
Interest expense		141			141			—			48			48			—
Deferral of acquisition costs		(330	)		(287	)		(43	)		(115	)		(101	)		(14	)
Amortization of acquisition costs		135			116			19			(65	)		(71	)		6
General and administrative expenses		1,320			700			620			454			242			212

Total benefits and expenses		6,159			1,760			4,399			1,994			498			1,496


Adjusted operating income before income taxes		524			371			153			209			145			64


	Nine Months Ended September 30, 2010									Quarter Ended September 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		3,682			534			3,148			1,320			181			1,139
Policy charges and fee income		1,081			709			372			300			166			134
Net investment income		1,163			666			497			399			230			169
Asset management fees, commissions and other income		243			167			76			85			61			24

Total revenues		6,169			2,076			4,093			2,104			638			1,466


Benefits and Expenses (1):
Insurance and annuity benefits		4,059			844			3,215			1,428			265			1,163
Interest credited to policyholders’ account balances		380			212			168			130			73			57
Interest expense		117			117			—			45			45			—
Deferral of acquisition costs		(337	)		(302	)		(35	)		(110	)		(97	)		(13	)
Amortization of acquisition costs		155			139			16			(61	)		(67	)		6
General and administrative expenses		1,280			697			583			421			229			192

Total benefits and expenses		5,654			1,707			3,947			1,853			448			1,405


Adjusted operating income before income taxes		515			369			146			251			190			61

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

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

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

(in millions)


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

						ANNUALIZED NEW BUSINESS PREMIUMS (1):

	21			16		Variable life		6			7			7			6			8
	66			57		Universal life		20			20			23			22			21
	116			120		Term life		38			40			35			40			41

	203			193		Total		64			67			65			68			70


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	62			62		Prudential Agents		20			22			20			21			21
	141			131		Third party distribution		44			45			45			47			49

	203			193		Total		64			67			65			68			70


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2):*
	8,767			8,081		Beginning balance		8,305			8,548			8,767			8,968			9,080
	1,177			1,140		Premiums and deposits		389			367			402			374			401
	(581	)		(597	)	Surrenders and withdrawals		(208	)		(198	)		(180	)		(217	)		(184	)

	596			543		Net sales		181			169			222			157			217
	(170	)		(145	)	Benefit payments		(41	)		(52	)		(51	)		(49	)		(70	)

	426			398		Net flows		140			117			171			108			147
	208			158		Interest credited and other		139			133			62			20			126
	228			189		Net transfers from separate account		57			62			61			74			93
	(271	)		(278	)	Policy charges		(93	)		(93	)		(93	)		(90	)		(88	)

	9,358			8,548		Ending balance		8,548			8,767			8,968			9,080			9,358


						*Separate Account Liabilities:*
	17,156			15,692		Beginning balance		14,861			16,079			17,156			17,749			17,544
	681			788		Premiums and deposits		319			243			220			215			246
	(544	)		(450	)	Surrenders and withdrawals		(162	)		(145	)		(161	)		(255	)		(128	)

	137			338		Net sales (redemptions)		157			98			59			(40	)		118
	(29	)		(22	)	Benefit payments		(6	)		(11	)		(13	)		(11	)		(5	)

	108			316		Net flows		151			87			46			(51	)		113
	(1,023	)		780		Change in market value, interest credited and other		1,298			1,222			777			90			(1,890	)
	(228	)		(189	)	Net transfers to general account		(57	)		(62	)		(61	)		(74	)		(93	)
	(507	)		(520	)	Policy charges		(174	)		(169	)		(169	)		(170	)		(168	)

	15,506			16,079		Ending balance		16,079			17,157			17,749			17,544			15,506


						FACE AMOUNT IN FORCE (3):

						Variable life		118,274			118,078			117,538			116,024			113,349
						Universal life		36,691			37,481			38,190			38,896			39,644
						Term life		452,133			457,014			460,683			466,129			468,885

						Total		607,098			612,573			616,411			621,049			621,878

(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

Third Quarter 2011

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

(dollar amounts in millions)


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

				Individual Life Insurance:

				Policy Surrender Experience:
	623		525	Cash value of surrenders		183		172		189		286		148
	4.1%		3.1%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		3.3%		2.9%		3.1%		4.7%		2.5%

				Death benefits per $1,000 of in force (1):
	4.66		4.52	Variable and universal life		4.75		3.89		5.15		3.73		5.00
	1.13		1.07	Term life		1.11		1.06		1.12		1.06		1.21
	2.82		2.74	Total, Individual Life Insurance		2.85		2.45		3.05		2.34		3.03

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

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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			3Q		4Q		1Q		2Q		3Q

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	437		364	Group life		84		82		392		22		23
	167		134	Group disability (1)		26		27		108		30		29

	604		498	Total		110		109		500		52		52


				Future Policy Benefits (2):
				Group life		2,122		2,262		2,233		2,202		2,184
				Group disability (1)		1,376		1,453		1,560		1,621		1,676

				Total		3,498		3,715		3,793		3,823		3,860


				Policyholders’ Account Balances (2):
				Group life		6,692		6,863		6,943		7,075		7,027
				Group disability (1)		175		182		174		179		187

				Total		6,867		7,045		7,117		7,254		7,214


				Separate Account Liabilities (2):
				Group life		19,232		19,271		19,292		20,027		19,148
				Group disability (1)		—		—		—		—		—

				Total		19,232		19,271		19,292		20,027		19,148


				Group Life Insurance:
	3,162		2,777	Gross premiums, policy charges and fee income (3)		945		944		1,066		1,046		1,050
	3,066		2,683	Earned premiums, policy charges and fee income		989		856		1,010		992		1,064
	90.6%		90.8%	Benefits ratio		89.0%		86.1%		92.3%		90.4%		89.3%
	8.2%		8.8%	Administrative operating expense ratio		8.5%		8.8%		8.1%		7.9%		8.5%
				Persistency ratio		92.2%		92.1%		97.2%		96.6%		96.2%

				Group Disability Insurance (1):
	909		850	Gross premiums, policy charges and fee income (3)		287		315		301		304		304
	894		837	Earned premiums, policy charges and fee income		284		309		299		296		299
	95.4%		93.1%	Benefits ratio		99.7%		99.0%		94.3%		97.0%		95.0%
	21.6%		22.0%	Administrative operating expense ratio		21.3%		19.4%		21.6%		21.4%		21.7%
				Persistency ratio		92.9%		92.1%		93.3%		91.6%		89.7%

(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

Third 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				3Q			4Q			1Q			2Q			3Q

						DEFERRED POLICY ACQUISITION COSTS

						INDIVIDUAL ANNUITIES:
	3,392			2,449		Beginning balance		2,150			2,600			3,392			3,673			3,697
	903			860		Capitalization		308			354			379			264			260
	(507)			(185	)	Amortization - operating results		64			(75	)		(99	)		(146	)		(262	)
	(1,358)			(347	)	Amortization - realized investment gains and losses		142			362			18			(94	)		(1,282	)
	(34)			(177	)	Impact of unrealized (gains) or losses on AFS securities		(64	)		151			(1	)		—			(33	)
	(16)			—		Other (1)		—			—			(16	)		—			—

	2,380			2,600		Ending balance		2,600			3,392			3,673			3,697			2,380


						INDIVIDUAL LIFE INSURANCE:
	4,261			4,179		Beginning balance		4,032			4,129			4,261			4,272			4,217
	287			302		Capitalization		97			94			89			97			101
	(116	)		(139	)	Amortization - operating results		67			(79	)		(86	)		(101	)		71
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	(127	)		(213	)	Impact of unrealized (gains) or losses on AFS securities		(67	)		117			8			(51	)		(84	)

	4,305			4,129		Ending balance		4,129			4,261			4,272			4,217			4,305


						GROUP INSURANCE:
	392			371		Beginning balance		383			390			392			399			408
	43			35		Capitalization		13			11			14			15			14
	(19	)		(16	)	Amortization - operating results		(6	)		(9	)		(7	)		(6	)		(6	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	416			390		Ending balance		390			392			399			408			416


						DEFERRED SALES INDUCEMENTS

						INDIVIDUAL ANNUITIES:
	1,348			1,117		Beginning balance		955			1,094			1,348			1,431			1,415
	279			322		Capitalization		102			109			121			86			72
	(221	)		(143	)	Amortization - operating results		(5	)		(53	)		(56	)		(60	)		(105	)
	(493	)		(162	)	Amortization - realized investment gains and losses		50			143			6			(44	)		(455	)
	(14	)		(40	)	Impact of unrealized (gains) or losses on AFS securities		(8	)		55			(4	)		2			(12	)
	16			—		Other (1)		—			—			16			—			—

	915			1,094		Ending balance		1,094			1,348			1,431			1,415			915

(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

Third Quarter 2011

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


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

								Revenues (1):
	11,025			6,702			65%	Premiums		2,253			2,414			3,267			3,912			3,846
	406			298			36%	Policy charges and fee income		107			109			113			143			150
	2,752			1,807			52%	Net investment income		642			662			765			961			1,026
	320			140			129%	Asset management fees, commissions and other income		40			88			183			33			104

	14,503			8,947			62%	Total revenues		3,042			3,273			4,328			5,049			5,126


								Benefits and Expenses (1):
	8,910			5,386			65%	Insurance and annuity benefits		1,801			1,929			2,706			3,170			3,034
	702			412			70%	Interest credited to policyholders’ account balances		148			150			161			249			292
	1			2			-50%	Interest expense		1			1			—			1			—
	(1,649	)		(1,023	)		-61%	Deferral of acquisition costs		(357	)		(379	)		(422	)		(603	)		(624	)
	834			643			30%	Amortization of acquisition costs		215			212			250			287			297
	3,692			2,030			82%	General and administrative expenses		694			772			961			1,355			1,376

	12,490			7,450			68%	Total benefits and expenses		2,502			2,685			3,656			4,459			4,375


	2,013			1,497			34%	Adjusted operating income before income taxes		540			588			672			590			751

(1)

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

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	Nine Months Ended September 30, 2011									Quarter Ended September 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		11,025			4,794			6,231			3,846			1,615			2,231
Policy charges and fee income		406			279			127			150			98			52
Net investment income		2,752			1,076			1,676			1,026			378			648
Asset management fees, commissions and other income		320			(24	)		344			104			(15	)		119

Total revenues		14,503			6,125			8,378			5,126			2,076			3,050


Benefits and Expenses (1):
Insurance and annuity benefits		8,910			3,943			4,967			3,034			1,325			1,709
Interest credited to policyholders’ account balances		702			184			518			292			66			226
Interest expense		1			—			1			—			—			—
Deferral of acquisition costs		(1,649	)		(764	)		(885	)		(624	)		(256	)		(368	)
Amortization of acquisition costs		834			477			357			297			166			131
General and administrative expenses		3,692			1,252			2,440			1,376			418			958

Total benefits and expenses		12,490			5,092			7,398			4,375			1,719			2,656

Adjusted operating income before income taxes		2,013			1,033			980			751			357			394


	Nine Months Ended September 30, 2010									Quarter Ended September 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		6,702			4,171			2,531			2,253			1,411			842
Policy charges and fee income		298			239			59			107			86			21
Net investment income		1,807			920			887			642			326			316
Asset management fees, commissions and other income		140			28			112			40			6			34

Total revenues		8,947			5,358			3,589			3,042			1,829			1,213


Benefits and Expenses (1):
Insurance and annuity benefits		5,386			3,383			2,003			1,801			1,150			651
Interest credited to policyholders’ account balances		412			159			253			148			59			89
Interest expense		2			1			1			1			—			1
Deferral of acquisition costs		(1,023	)		(665	)		(358	)		(357	)		(227	)		(130	)
Amortization of acquisition costs		643			430			213			215			147			68
General and administrative expenses		2,030			1,109			921			694			377			317

Total benefits and expenses		7,450			4,417			3,033			2,502			1,506			996

Adjusted operating income before income taxes		1,497			941			556			540			323			217

(1)

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

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

LOGO

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


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

				Japanese Yen Basis Results:
				Revenues (1):
¥	389,737	¥	368,756	Japanese insurance operations excluding Gibraltar Life	¥	122,270	¥	121,126	¥	138,200	¥	122,889	¥	128,648
	685,348		323,227	Gibraltar Life and Other Operations		107,381		115,475		171,976		257,054		256,318

	1,075,085		691,983	Total revenues, yen basis		229,651		236,601		310,176		379,943		384,966


				Benefits and Expenses (1):
	314,360		295,770	Japanese insurance operations excluding Gibraltar Life		98,175		96,878		113,597		97,084		103,679
	606,771		267,253	Gibraltar Life and Other Operations		85,946		93,126		154,260		235,846		216,665

	921,131		563,023	Total benefits and expenses, yen basis		184,121		190,004		267,857		332,930		320,344


				Adjusted operating income (2):
	75,377		72,986	Japanese insurance operations excluding Gibraltar Life		24,095		24,248		24,603		25,805		24,969
	78,577		55,974	Gibraltar Life and Other Operations		21,435		22,349		17,716		21,208		39,653

¥	153,954	¥	128,960	Total adjusted operating income, yen basis	¥	45,530	¥	46,597	¥	42,319	¥	47,013	¥	64,622


				U.S. Dollar adjusted operating income (3):
$	865	$	769	Japanese insurance operations excluding Gibraltar Life and Other Operations	$	259	$	265	$	281	$	294	$	290
	980		556	Gibraltar Life and Other Operations		217		260		342		244		394

	1,845		1,325	Total adjusted operating income, U.S. dollar basis		476		525		623		538		684
	168		172	All other (4)		64		63		49		52		67

$	2,013	$	1,497	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	540	$	588	$	672	$	590	$	751

(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

Third Quarter 2011

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


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

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	3,899		3,347	Japan, excluding Gibraltar Life		1,137		1,182		1,378		1,210		1,311
	6,358		2,590	Gibraltar Life		863		946		1,628		2,447		2,283
	1,174		1,063	All other countries		360		395		374		398		402

	11,431		7,000	Total		2,360		2,523		3,380		4,055		3,996


				Annualized new business premiums:
	609		499	Japan, excluding Gibraltar Life		178		191		224		176		209
	1,487		618	Gibraltar Life		234		256		373		544		570
	247		189	All other countries		64		85		83		82		82

	2,343		1,306	Total		476		532		680		802		861


				Annualized new business premiums by distribution channel:
	856		688	Life Planners		242		276		307		258		291
	699		364	Gibraltar Life Advisors		122		123		160		270		269
	451		226	Banks		92		106		135		143		173
	337		28	Independent Agency		20		27		78		131		128

	2,343		1,306	Total		476		532		680		802		861


				Constant exchange rate basis (2):

				Net premiums, policy charges and fee income:
	3,528		3,274	Japan, excluding Gibraltar Life		1,076		1,090		1,267		1,106		1,155
	5,688		2,544	Gibraltar Life		828		869		1,480		2,197		2,011
	1,082		1,048	All other countries		359		375		349		362		371

	10,298		6,866	Total		2,263		2,334		3,096		3,665		3,537


				Annualized new business premiums:
	559		489	Japan, excluding Gibraltar Life		170		178		208		163		188
	1,363		612	Gibraltar Life		228		242		347		499		517
	228		185	All other countries		63		81		78		75		75

	2,150		1,286	Total		461		501		633		737		780


				Annualized new business premiums by distribution channel:
	787		674	Life Planners		233		259		286		238		263
	638		361	Gibraltar Life Advisors		119		114		148		247		243
	424		224	Banks		90		104		128		134		162
	301		27	Independent Agency		19		24		71		118		112

	2,150		1,286	Total		461		501		633		737		780

(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

Third Quarter 2011

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


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

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		295			298			300			302			304
Gibraltar Life (3)		212			213			351			349			352
All other countries		99			99			101			101			102

Total		606			610			752			752			758


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		2,515			2,549			2,590			2,616			2,647
Gibraltar Life (3)		3,884			3,903			7,457			7,430			7,459
All other countries		1,481			1,504			1,522			1,536			1,555

Total		7,880			7,956			11,569			11,582			11,661


International life insurance policy persistency: (4)

Excluding Gibraltar Life:
13 months		92.0	%		92.2	%		92.1	%		92.2	%		92.7	%
25 months		84.7	%		84.5	%		84.6	%		84.7	%		85.1	%

Gibraltar Life:
13 months		92.4	%		92.4	%		92.4	%		92.7	%		93.0	%
25 months		84.1	%		84.7	%		85.3	%		85.5	%		85.8	%

Number of Life Planners at end of period:
Japan		3,126			3,122			3,150			3,106			3,144
All other countries		3,482			3,443			3,431			3,462			3,555

Total life planners		6,608			6,565			6,581			6,568			6,699


Gibraltar Life Advisors (5)		5,913			6,281			13,227			13,353			12,936

(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

Third Quarter 2011

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2011									December 31, 2010
	Consolidated Portfolio		Closed Block Business		Financial Services Businesses					Consolidated		Closed Block Business		Financial Services Businesses
	Consolidated Portfolio		Closed Block Business		Amount		% of Total			Portfolio		Closed Block Business		Amount		% of Total
Fixed maturities:
Public, available for sale, at fair value		207,305		30,781		176,524		64.3	%		155,076		30,499		124,577		59.3	%
Public, held to maturity, at amortized cost		3,832		—		3,832		1.4	%		3,940		—		3,940		1.9	%
Private, available for sale, at fair value		42,703		16,229		26,474		9.6	%		37,786		14,678		23,108		11.0	%
Private, held to maturity, at amortized cost		1,363		—		1,363		0.5	%		1,286		—		1,286		0.6	%
Trading account assets supporting insurance liabilities, at fair value		19,535		—		19,535		7.1	%		17,771		—		17,771		8.5	%
Other trading account assets, at fair value		2,579		325		2,254		0.8	%		1,376		156		1,220		0.6	%
Equity securities, available for sale, at fair value		7,450		2,901		4,549		1.7	%		7,728		3,593		4,135		2.0	%
Commercial mortgage and other loans		33,480		9,086		24,394		8.9	%		30,408		8,507		21,901		10.4	%
Policy loans		11,483		5,307		6,176		2.3	%		10,667		5,377		5,290		2.5	%
Other long-term investments (1)		6,427		1,984		4,443		1.6	%		4,570		1,582		2,988		1.4	%
Short-term investments (2)		6,340		1,143		5,197		1.8	%		4,862		1,164		3,698		1.8	%

Subtotal (3)		342,497		67,756		274,741		100.0	%		275,470		65,556		209,914		100.0	%

Invested assets of other entities and operations (4)		10,063		—		10,063					8,442		—		8,442

Total investments		352,560		67,756		284,804					283,912		65,556		218,356

Fixed Maturities by Credit Quality (3):


	September 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		151,685		10,566		1,907		160,344		88.8	%		105,068		6,278		1,240		110,106		85.5	%
2		15,662		1,213		718		16,157		8.9	%		14,129		892		585		14,436		11.2	%

Subtotal - High or Highest Quality Securities		167,347		11,779		2,625		176,501		97.7	%		119,197		7,170		1,825		124,542		96.7	%

3		3,275		49		513		2,811		1.5	%		2,753		100		208		2,645		2.1	%
4		1,063		24		232		855		0.5	%		1,067		24		206		885		0.7	%
5		434		13		155		292		0.2	%		630		21		211		440		0.3	%
6		195		15		91		119		0.1	%		271		28		89		210		0.2	%

Subtotal - Other Securities		4,967		101		991		4,077		2.3	%		4,721		173		714		4,180		3.3	%

Total		172,314		11,880		3,616		180,578		100.0	%		123,918		7,343		2,539		128,722		100.0	%


Private Fixed Maturities:
NAIC Rating (5)
1		6,835		717		89		7,463		26.7	%		6,226		511		90		6,647		27.2	%
2		15,648		1,239		382		16,505		59.2	%		13,264		792		341		13,715		56.1	%

Subtotal - High or Highest Quality Securities		22,483		1,956		471		23,968		85.9	%		19,490		1,303		431		20,362		83.3	%

3		2,511		122		68		2,565		9.2	%		2,467		104		63		2,508		10.3	%
4		798		17		24		791		2.8	%		948		26		44		930		3.8	%
5		455		11		27		439		1.6	%		518		21		17		522		2.1	%
6		98		51		9		140		0.5	%		95		29		6		118		0.5	%

Subtotal - Other Securities		3,862		201		128		3,935		14.1	%		4,028		180		130		4,078		16.7	%

Total		26,345		2,157		599		27,903		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 September 30, 2011 and December 31, 2010, respectively, 142 securities with amortized cost of $1,474 million (fair value $1,584 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

Third Quarter 2011

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2011					December 31, 2010
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (1):
Fixed maturities:
Public, available for sale, at fair value		109,811		79.3	%		60,115		74.9	%
Public, held to maturity, at amortized cost		3,832		2.8	%		3,940		4.9	%
Private, available for sale, at fair value		4,791		3.5	%		3,304		4.1	%
Private, held to maturity, at amortized cost		1,363		1.0	%		1,286		1.6	%
Trading account assets supporting insurance liabilities, at fair value		1,730		1.2	%		1,518		1.9	%
Other trading account assets, at fair value		1,633		1.2	%		702		0.9	%
Equity securities, available for sale, at fair value		2,165		1.6	%		1,612		2.0	%
Commercial mortgage and other loans		5,583		4.0	%		4,202		5.2	%
Policy loans		2,840		2.0	%		2,083		2.6	%
Other long-term investments (2)		3,560		2.6	%		1,320		1.6	%
Short-term investments		1,165		0.8	%		211		0.3	%

Total		138,473		100.0	%		80,293		100.0	%


	September 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		66,713		49.0	%		64,462		49.7	%
Public, held to maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available for sale, at fair value		21,683		15.9	%		19,804		15.3	%
Private, held to maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		17,805		13.1	%		16,253		12.5	%
Other trading account assets, at fair value		621		0.5	%		518		0.4	%
Equity securities, available for sale, at fair value		2,384		1.7	%		2,523		1.9	%
Commercial mortgage and other loans		18,811		13.8	%		17,699		13.7	%
Policy loans		3,336		2.4	%		3,207		2.5	%
Other long-term investments (2)		883		0.6	%		1,668		1.3	%
Short-term investments		4,032		3.0	%		3,487		2.7	%

Total		136,268		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

Third Quarter 2011

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended September 30
	2011									2010
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)			Amount			Realized Gains / (Losses)			Yield (3)			Amount			Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities		3.81	%		1,825			(84	)		4.29	%		1,501			(10	)
Equity securities		5.78	%		62			(82	)		6.48	%		55			3
Commercial mortgage and other loans		5.31	%		262			26			5.85	%		250			29
Policy loans		4.72	%		72			—			5.10	%		64			—
Short-term investments and cash equivalents		0.36	%		12			—			0.34	%		10			1
Other investments		3.91	%		68			2,353			5.05	%		51			(72	)

Gross investment income before investment expenses		3.81	%		2,301			2,213			4.27	%		1,931			(49	)
Investment expenses		-0.12	%		(59	)		—			-0.14	%		(53	)		—

Subtotal		3.69	%		2,242			2,213			4.13	%		1,878			(49	)

Investment results of other entities and operations (2)					301			75						325			13
Less, investment income related to adjusted operating income reconciling items					2									(3	)

Total					2,545			2,288						2,200			(36	)


	Nine Months Ended September 30
	2011									2010
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)(4)			Amount			Realized Gains / (Losses)			Yield (3)			Amount			Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities		3.88	%		5,214			(114	)		4.31	%		4,395			(344	)
Equity securities		6.27	%		185			(97	)		6.56	%		164			3
Commercial mortgage and other loans		5.44	%		763			47			5.74	%		712			57
Policy loans		4.70	%		205			—			4.93	%		178			—
Short-term investments and cash equivalents		0.39	%		37			—			0.30	%		27			1
Other investments		4.35	%		215			2,463			4.25	%		131			1,673

Gross investment income before investment expenses		3.89	%		6,619			2,299			4.24	%		5,607			1,390
Investment expenses		-0.12	%		(172	)		—			-0.14	%		(153	)		—

Subtotal		3.77	%		6,447			2,299			4.10	%		5,454			1,390

Investment results of other entities and operations (2)					929			162						927			54
Less, investment income related to adjusted operating income reconciling items					—									1

Total					7,376			2,461						6,382			1,444

(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 seven months of income and assets related to the Star and Edison businesses.

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 30
	2011									2010
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains /
	Yield (1)			Amount			Realized Gains / (Losses)			Yield (1)			Amount			(Losses)
Japanese Insurance Operations:
Fixed maturities		2.75	%		774			(115	)		2.83	%		445			(61	)
Equity securities		3.70	%		21			(75	)		3.33	%		13			(5	)
Commercial mortgage and other loans		4.07	%		55			4			4.59	%		44			4
Policy loans		3.51	%		24			—			3.86	%		19			—
Short-term investments and cash equivalents		0.67	%		7			—			0.19	%		1			—
Other investments (3)		4.26	%		54			539			7.18	%		41			79

Gross investment income before investment expenses		2.83	%		935			353			3.03	%		563			17
Investment expenses		-0.11	%		(37	)		—			-0.14	%		(26	)		—

Total		2.72	%		898			353			2.89	%		537			17


	Nine Months Ended September 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		2.68	%		2,047			(237	)		2.79	%		1,268			(397	)
Equity securities		3.52	%		56			(121	)		2.97	%		34			(66	)
Commercial mortgage and other loans		4.11	%		155			13			4.61	%		128			12
Policy loans		3.40	%		66			—			3.80	%		52			—
Short-term investments and cash equivalents		0.72	%		20			1			0.26	%		3			—
Other investments (3)		4.22	%		144			405			5.28	%		90			300

Gross investment income before investment expenses		2.77	%		2,488			61			2.94	%		1,575			(151	)
Investment expenses		-0.12	%		(105	)		—			-0.14	%		(77	)		—

Total		2.65	%		2,383			61			2.80	%		1,498			(151	)

(1)

(2)	Yields are weighted for seven 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

Third Quarter 2011

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 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		5.33	%		1,051			31			5.48	%		1,056			51
Equity securities		8.13	%		41			(7	)		9.05	%		42			8
Commercial loans		5.78	%		207			22			6.22	%		206			25
Policy loans		5.72	%		48			—			5.88	%		45			—
Short-term investments and cash equivalents		0.24	%		5			—			0.37	%		9			1
Other investments		3.02	%		14			1,814			2.36	%		10			(151	)

Gross investment income before investment expenses		5.01	%		1,366			1,860			5.13	%		1,368			(66	)
Investment expenses		-0.12	%		(22	)		—			-0.14	%		(27	)		—

Total		4.89	%		1,344			1,860			4.99	%		1,341			(66	)


	Nine Months Ended September 30
	2011									2010
							Realized									Realized
	Investment Income						Gains /			Investment Income						Gains /
	Yield (2)			Amount			(Losses)			Yield (2)			Amount			(Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		5.44	%		3,167			123			5.53	%		3,127			53
Equity securities		9.47	%		129			24			9.61	%		130			69
Commercial mortgage and other loans		5.93	%		608			34			6.07	%		584			45
Policy loans		5.75	%		139			—			5.63	%		126			—
Short-term investments and cash equivalents		0.26	%		17			(1	)		0.30	%		24			1
Other investments		4.63	%		71			2,058			2.98	%		41			1,373

Gross investment income before investment expenses		5.13	%		4,131			2,238			5.12	%		4,032			1,541
Investment expenses		-0.13	%		(67	)		—			-0.14	%		(76	)		—

Total		5.00	%		4,064			2,238			4.98	%		3,956			1,541

(1)

(2)

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF THIRD QUARTER 2010 AND 2011 ACTUARIAL UPDATES

(in millions)


	Insurance and Annuity Benefits					Interest Credited to Policyholders’ Account Balances					Amortization of Deferred Policy Acquisition Costs					General and Administrative Expenses					Pre-Tax Adjusted Operating Income
	Third Quarter 2010			Third Quarter 2011		Third Quarter 2010			Third Quarter 2011		Third Quarter 2010			Third Quarter 2011		Third Quarter 2010			Third Quarter 2011		Third Quarter 2010		Third Quarter 2011
Actuarial Item:

Annual review of assumptions including: actual and expected fund performance, persistency, investment margins, costs associated with guaranteed benefits, and other elements of gross profits.		(139	)		230		(59	)		59		(164	)		144		(6	)		6		368		(439	)


Reported amount		(49	)		331		98			182		(64	)		262		526			553


Amount excluding impact of items indicated above		90			101		157			123		100			118		532			547

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

LOGO

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2010 AND 2011 ACTUARIAL UPDATES

(in millions)


	Policy Charges and Fee Income (1)						Insurance and Annuity Benefits (2)						Amortization of Deferred Policy Acquisition Costs						Pre-Tax Adjusted Operating Income
	Third Quarter 2010			Third Quarter 2011			Third Quarter 2010			Third Quarter 2011			Third Quarter 2010			Third Quarter 2011			Third Quarter 2010		Third Quarter 2011
Actuarial Item:

Annual review of assumptions for mortality, persistency, premium payment pattern, and other elements of expected gross profits, and guaranteed minimum death benefits		(101	)		(125	)		(27	)		(4	)		(126	)		(196	)		52		75


Reported amount		166			156			265			303			(67	)		(71	)


Amount excluding impact of items indicated above		267			281			292			307			59			125

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

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

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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 11.87% for the nine months ended September 30, 2011, 12.16% for the nine months ended September 30, 2010, 17.58% for the three months ended September 30, 2011, 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, and 15.60% for the three months ended September 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 40

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2011

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of November 2, 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 November 2, 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 - November 2, 2011

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