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

Attached files

file	filename
8-K - FORM 8-K - PRUDENTIAL FINANCIAL INC	d341521d8k.htm
EX-99.0 - NEWS RELEASE OF PRUDENTIAL FINANCIAL, INC., DATED MAY 2, 2012 - PRUDENTIAL FINANCIAL INC	d341521dex990.htm

Exhibit 99.1

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

FIRST QUARTER 2012

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.

May 2, 2012

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

CONTENTS


	Page
HIGHLIGHTS
Financial Highlights		1-3
Operations Highlights		4

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

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION
Combined Statements of Operations		10
Combining Statements of Operations		11
Individual Annuities Sales Results and Account Values		12
Individual Annuities Account Value Activity		13
Individual Annuities Living Benefit Features		14
Individual Annuities Death Benefit Features		15
Retirement Segment Sales Results and Account Values		16
Supplementary Revenue and Assets Under Management Information for Asset Management Segment		17
Supplementary Assets Under Management and Assets Under Administration Information for Asset Management Segment		18

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION
Combined Statements of Operations		19
Combining Statements of Operations		20
Individual Life Annualized New Business Premiums, Account Value Activity, and Face Amount in Force		21
Supplementary Information for Individual Life Insurance		22
Supplementary Information for Group Insurance		23

DEFERRED POLICY ACQUISITION COSTS & DEFERRED SALES INDUCEMENTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE		24

INTERNATIONAL INSURANCE DIVISION
Combined Statements of Operations		25
Combining Statements of Operations		26
International Insurance Segment - Supplementary Income Statement Information		27
Sales Results and Supplementary Information		28-29

INVESTMENT PORTFOLIO
Investment Portfolio Composition		30
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		31
Financial Services Businesses Investment Results		32
Financial Services Businesses Investment Results - Japanese Insurance Operations		33
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations		34

KEY DEFINITIONS AND FORMULAS		35-37

RATINGS AND INVESTOR INFORMATION		38

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date						% Change			2011												2012
2012			2011			% Change			1Q			2Q			3Q			4Q			1Q

								*Financial Services Businesses:*
								Pre-tax adjusted operating income (loss) by division:
	698			600			16%	U.S. Retirement Solutions and Investment Management Division		600			605			42			668			698
	74			137			-46%	U.S. Individual Life and Group Insurance Division		137			184			173			193			74
	606			628			-4%	International Insurance Division		628			500			660			595			606
	(363	)		(269	)		-35%	Corporate and other operations		(269	)		(237	)		(347	)		(286	)		(363	)

	1,015			1,096			-7%	Total pre-tax adjusted operating income		1,096			1,052			528			1,170			1,015
	274			296			-7%	Income taxes, applicable to adjusted operating income		296			279			110			309			274

	741			800			-7%	Financial Services Businesses after-tax adjusted operating income		800			773			418			861			741


								Reconciling items:
	(1,838	)		(375	)		-390%	Realized investment gains (losses), net, and related charges and adjustments		(375	)		1			1,817			(596	)		(1,838	)
	234			(17	)		1476%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		(17	)		177			10			53			234
	(246	)		34			-824%	Change in experience-rated contractholder liabilities due to asset value changes		34			(178	)		68			(47	)		(246	)
	1			(9	)		111%	Divested businesses		(9	)		—			24			39			1
	5			(133	)		104%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(133	)		19			(87	)		12			5

	(1,844	)		(500	)		-269%	Total reconciling items, before income taxes		(500	)		19			1,832			(539	)		(1,844	)
	(112	)		(146	)		23%	Income taxes, not applicable to adjusted operating income		(146	)		10			736			(187	)		(112	)

	(1,732	)		(354	)		-389%	Total reconciling items, after income taxes		(354	)		9			1,096			(352	)		(1,732	)

	(991	)		446			-322%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		446			782			1,514			509			(991	)
	(4	)		79			-105%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		79			(19	)		57			(7	)		(4	)

	(995	)		525			-290%	Income (loss) from continuing operations attributable to Prudential Financial, Inc.		525			763			1,571			502			(995	)
	11			25			-56%	Earnings attributable to noncontrolling interests		25			29			10			8			11

	(984	)		550			-279%	Income from continuing operations (after-tax) of Financial Services Businesses		550			792			1,581			510			(984	)
	7			14			-50%	Income (loss) from discontinued operations, net of taxes		14			16			(9	)		14			7

	(977	)		564			-273%	Net income (loss) of Financial Services Businesses		564			808			1,572			524			(977	)
	11			25			-56%	Less: Income attributable to noncontrolling interests		25			29			10			8			11

	(988	)		539			-283%	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		539			779			1,562			516			(988	)

	11.1%			12.5%				Operating Return on Average Equity (based on adjusted operating income)		12.5%			11.7%			6.2%			12.4%			11.1%

								*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
	(988	)		539				Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		539			779			1,562			516			(988	)
	21			22				Net income of Closed Block Business attributable to Prudential Financial, Inc.		22			10			32			82			21

	(967	)		561				Consolidated net income (loss) attributable to Prudential Financial, Inc.		561			789			1,594			598			(967	)

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date							2011												2012
2012			2011				1Q			2Q			3Q			4Q			1Q

						Earnings per share of Common Stock (diluted): (1)
	1.56			1.62		Financial Services Businesses after-tax adjusted operating income		1.62			1.57			0.87			1.79			1.56

						Reconciling items:
	(3.85	)		(0.76	)	Realized investment gains (losses), net, and related charges and adjustments		(0.76	)		—			3.71			(1.25	)		(3.85	)
	0.49			(0.03	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net		(0.03	)		0.36			0.02			0.11			0.49
	(0.52	)		0.07		Change in experience-rated contractholder liabilities due to asset value changes		0.07			(0.36	)		0.14			(0.10	)		(0.52	)
	—			(0.02	)	Divested businesses		(0.02	)		—			0.05			0.08			—
	0.02			0.01		Difference in earnings allocated to participating unvested share-based payment awards		0.01			—			(0.03	)		—			0.02

	(3.86	)		(0.73	)	Total reconciling items, before income taxes		(0.73	)		—			3.89			(1.16	)		(3.86	)
	(0.20	)		(0.19	)	Income taxes, not applicable to adjusted operating income		(0.19	)		0.02			1.57			(0.41	)		(0.20	)

	(3.66	)		(0.54	)	Total reconciling items, after income taxes		(0.54	)		(0.02	)		2.32			(0.75	)		(3.66	)

	(2.10	)		1.08		Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		1.08			1.55			3.19			1.04			(2.10	)
	0.01			0.02		Income (loss) from discontinued operations, net of taxes		0.02			0.03			(0.01	)		0.03			0.01

	(2.09	)		1.10		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		1.10			1.58			3.18			1.07			(2.09	)


	469.2			484.9		Weighted average number of outstanding Common shares (basic)		484.9			486.0			481.2			469.2			469.2

	477.5			493.9		Weighted average number of outstanding Common shares (diluted)		493.9			494.8			489.3			477.0			477.5

	8			9		Direct equity adjustments for earnings per share calculation		9			8			8			(1	)		8

	4			4		Earnings related to interest, net of tax, on exchangeable surplus notes		4			5			4			4			4

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	8			11		Financial Services Businesses after-tax adjusted operating income		11			10			6			11			8
	—			7		Income from continuing operations (after-tax) of Financial Services Businesses		7			11			20			9			—

(1)

Diluted share count used in the diluted earnings per share calculation for GAAP measures is equal to weighted average basic common shares for the three months ended March 31, 2012 as all potential common shares are anti-dilutive due to the loss from continuing operations available to holders of common stock after direct equity adjustment.

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date					2011								2012
2012		2011			1Q		2Q		3Q		4Q		1Q

				*Financial Services Businesses Capitalization Data (1):*
				Senior Debt:
				Short-term debt		2,432		2,152		2,899		2,336		3,655
				Long-term debt		20,764		21,309		20,651		21,353		21,110
				Junior Subordinated Long-Term Debt		1,519		1,519		1,519		1,519		1,519

				Attributed Equity:
				Including accumulated other comprehensive income		28,501		30,754		32,901		32,817		33,509
				Excluding total accumulated other comprehensive income		26,206		27,052		27,916		27,567		26,436

				Total Capitalization:
				Including accumulated other comprehensive income		50,784		53,582		55,071		55,689		56,138
				Excluding total accumulated other comprehensive income		48,489		49,880		50,086		50,439		49,065

				Book value per share of Common Stock:
				Including accumulated other comprehensive income		57.82		62.28		68.77		69.07		70.80
				Excluding total accumulated other comprehensive income		53.17		54.78		58.35		58.02		55.85

				Number of diluted shares at end of period (2)		492.9		493.8		478.4		475.1		473.3

				*Common Stock Price Range (based on closing price):*
	64.65		67.32	High		67.32		64.62		65.26		57.32		64.65
	51.30		58.32	Low		58.32		57.77		43.93		43.91		51.30
	63.39		61.58	Close		61.58		63.59		46.86		50.12		63.39

				*Common Stock market capitalization (1)*		29,900		30,912		22,113		23,456		29,667

(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

First Quarter 2012

LOGO

OPERATIONS HIGHLIGHTS


Year-to-date					2011								2012
2012		2011			1Q		2Q		3Q		4Q		1Q

				*Assets Under Management and Administration ($ billions) (1) (2):*
				Assets Under Management:
				Managed by U.S. Retirement Solutions and Investment Management Division:
				Asset Management Segment - Investment Management & Advisory Services
				Institutional customers		246.2		256.2		258.8		269.1		283.2
				Retail customers		108.8		109.3		110.1		117.9		123.6
				General account		213.8		218.0		230.5		232.1		230.0

				Total Investment Management and Advisory Services		568.8		583.5		599.4		619.1		636.8
				Non-proprietary assets under management		161.7		167.3		136.1		152.2		176.8

				Total managed by U.S. Retirement Solutions and Investment Management Division		730.5		750.8		735.5		771.3		813.6
				Managed by U.S. Individual Life and Group Insurance Division		13.3		13.5		13.6		13.8		14.8
				Managed by International Insurance Division		114.7		118.9		122.2		115.6		114.5

				Total assets under management		858.5		883.2		871.3		900.7		942.9
				Client assets under administration		86.6		89.4		82.6		85.7		89.2

				Total assets under management and administration		945.1		972.6		953.9		986.4		1,032.1


				Assets managed or administered for customers outside of the United States at end of period		201.4		208.3		213.2		208.9		214.6

				*Distribution Representatives (1):*
				Prudential Agents		2,506		2,551		2,571		2,529		2,603
				International Life Planners		6,581		6,568		6,699		6,792		6,819
				Gibraltar Life Consultants		13,227		13,353		12,936		12,791		12,219

	45		50	*Prudential Agent productivity ($ thousands)*		50		50		52		64		45

(1)	As of end of period.

(2)	At fair market value.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date						%			2011												2012
2012			2011			Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	6,100			4,817			27%	Premiums		4,817			5,497			5,413			5,645			6,100
	1,078			982			10%	Policy charges and fee income		982			1,038			979			1,033			1,078
	2,532			2,304			10%	Net investment income		2,304			2,525			2,536			2,552			2,532
	941			1,044			-10%	Asset management fees, commissions and other income		1,044			1,039			956			1,038			941

	10,651			9,147			16%	Total revenues		9,147			10,099			9,884			10,268			10,651


								Benefits and Expenses (1):
	5,614			4,644			21%	Insurance and annuity benefits		4,644			5,160			5,419			5,047			5,614
	948			829			14%	Interest credited to policyholders’ account balances		829			934			1,040			953			948
	308			279			10%	Interest expense		279			290			296			299			308
	(824	)		(743	)		-11%	Deferral of acquisition costs		(743	)		(768	)		(788	)		(770	)		(824	)
	412			360			14%	Amortization of acquisition costs		360			426			411			381			412
	3,178			2,682			18%	General and administrative expenses		2,682			3,005			2,978			3,188			3,178

	9,636			8,051			20%	Total benefits and expenses		8,051			9,047			9,356			9,098			9,636

	1,015			1,096			-7%	Adjusted operating income before income taxes		1,096			1,052			528			1,170			1,015


								Reconciling items:
	(2,716	)		(365	)		-644%	Realized investment gains (losses), net, and related adjustments		(365	)		155			3,385			(672	)		(2,716	)
	878			(10	)		8880%	Related charges		(10	)		(154	)		(1,568	)		76			878

	(1,838	)		(375	)		-390%	Total realized investment gains (losses), net, and related charges and adjustments		(375	)		1			1,817			(596	)		(1,838	)

	234			(17	)		1476%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		(17	)		177			10			53			234
	(246	)		34			-824%	Change in experience-rated contractholder liabilities due to asset value changes		34			(178	)		68			(47	)		(246	)
	1			(9	)		111%	Divested businesses		(9	)		—			24			39			1
	5			(133	)		104%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(133	)		19			(87	)		12			5

	(1,844	)		(500	)		-269%	Total reconciling items, before income taxes		(500	)		19			1,832			(539	)		(1,844	)


	(829	)		596			-239%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		596			1,071			2,360			631			(829	)
	162			150			8%	Income tax expense		150			289			846			122			162

	(991	)		446			-322%	Income (loss) from continuing operations before equity in earnings of operating joint ventures		446			782			1,514			509			(991	)

(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

First Quarter 2012

LOGO

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	03/31/2011		06/30/2011		09/30/2011		12/31/2011		03/31/2012

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $182,343; $186,022; $195,462; $197,784; $195,582)		186,861		192,902		205,102		208,132		208,419
Fixed maturities, held to maturity, at amortized cost (fair value $5,283; $5,342; $5,484; $5,354; $5,006)		5,102		5,091		5,195		5,107		4,775
Trading account assets supporting insurance liabilities, at fair value		18,314		18,563		19,535		19,481		19,679
Other trading account assets, at fair value		3,599		3,616		6,237		5,228		4,860
Equity securities, available for sale, at fair value (cost $5,621; $5,517; $4,280; $4,165; $4,041)		6,286		6,022		4,561		4,413		4,629
Commercial mortgage and other loans		24,259		24,712		25,315		26,391		26,205
Policy loans		5,926		6,046		6,176		6,263		6,191
Other long-term investments		6,335		6,239		5,919		5,830		5,517
Short-term investments		6,094		6,497		6,764		8,593		7,196

Total investments		262,776		269,688		284,804		289,438		287,471
Cash and cash equivalents		10,512		13,234		14,734		13,201		12,980
Accrued investment income		2,083		2,111		2,147		2,177		2,147
Deferred policy acquisition costs		12,255		12,500		11,658		12,056		13,008
Other assets		21,062		20,651		16,626		15,748		15,641
Separate account assets		218,382		222,892		207,366		218,380		236,567

Total assets		527,070		541,076		537,335		551,000		567,814


Liabilities:
Future policy benefits		102,584		108,959		118,179		119,248		116,721
Policyholders’ account balances		127,518		125,501		129,074		129,074		128,038
Securities sold under agreements to repurchase		2,599		2,830		2,555		3,118		3,806
Cash collateral for loaned securities		1,522		2,415		2,334		2,254		2,226
Income taxes		4,697		5,541		7,308		6,993		8,094
Senior short-term debt		2,432		2,152		2,899		2,336		3,655
Senior long-term debt		20,764		21,309		20,651		21,353		21,110
Junior subordinated long-term debt		1,519		1,519		1,519		1,519		1,519
Other liabilities		16,002		16,611		11,894		13,320		11,973
Separate account liabilities		218,382		222,892		207,366		218,380		236,567

Total liabilities		498,019		509,729		503,779		517,595		533,709


Attributed Equity:
Accumulated other comprehensive income		2,295		3,702		4,985		5,250		7,073
Other attributed equity		26,206		27,052		27,916		27,567		26,436

Total attributed equity		28,501		30,754		32,901		32,817		33,509

Noncontrolling Interest		550		593		655		588		596

Total Equity		29,051		31,347		33,556		33,405		34,105

Total liabilities and equity		527,070		541,076		537,335		551,000		567,814

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Three Months Ended March 31, 2012
	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		6,100			116			1,389			4,605			(10	)
Policy charges and fee income		1,078			544			391			152			(9	)
Net investment income		2,532			996			432			1,023			81
Asset management fees, commissions and other income		941			948			111			69			(187	)

Total revenues		10,651			2,604			2,323			5,849			(125	)


Benefits and Expenses (1):
Insurance and annuity benefits		5,614			251			1,603			3,752			8
Interest credited to policyholders’ account balances		948			544			133			278			(7	)
Interest expense		308			35			77			1			195
Deferral of acquisition costs		(824	)		(265	)		(106	)		(470	)		17
Amortization of acquisition costs		412			97			64			260			(9	)
General and administrative expenses		3,178			1,244			478			1,422			34

Total benefits and expenses		9,636			1,906			2,249			5,243			238


Adjusted operating income (loss) before income taxes		1,015			698			74			606			(363	)


	Three Months Ended March 31, 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		4,817			211			1,360			3,256			(10	)
Policy charges and fee income		982			492			385			113			(8	)
Net investment income		2,304			1,044			407			765			88
Asset management fees, commissions and other income		1,044			905			79			187			(127	)

Total revenues		9,147			2,652			2,231			4,321			(57	)


Benefits and Expenses (1):
Insurance and annuity benefits		4,644			426			1,510			2,706			2
Interest credited to policyholders’ account balances		829			550			128			161			(10	)
Interest expense		279			34			45			—			200
Deferral of acquisition costs		(743	)		(361	)		(84	)		(321	)		23
Amortization of acquisition costs		360			114			73			186			(13	)
General and administrative expenses		2,682			1,289			422			961			10

Total benefits and expenses		8,051			2,052			2,094			3,693			212


Adjusted operating income (loss) before income taxes		1,096			600			137			628			(269	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of March 31, 2012
	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		287,471		94,522		36,862		148,650		7,437
Deferred policy acquisition costs		13,008		3,451		3,622		6,206		(271	)
Other assets		30,768		9,451		5,551		12,145		3,621
Separate account assets		236,567		199,926		37,668		1,256		(2,283	)

Total assets		567,814		307,350		83,703		168,257		8,504


Liabilities:
Future policy benefits		116,721		19,003		11,465		85,864		389
Policyholders’ account balances		128,038		57,287		17,158		54,099		(506	)
Debt		26,284		6,113		7,691		100		12,380
Other liabilities		26,099		9,771		4,335		10,145		1,848
Separate account liabilities		236,567		199,926		37,668		1,256		(2,283	)

Total liabilities		533,709		292,100		78,317		151,464		11,828


Attributed Equity:
Accumulated other comprehensive income (loss)		7,073		2,089		1,503		4,695		(1,214	)
Other attributed equity		26,436		12,523		3,883		12,048		(2,018	)

Total attributed equity		33,509		14,612		5,386		16,743		(3,232	)

Noncontrolling Interest		596		638		—		50		(92	)

Total Equity		34,105		15,250		5,386		16,793		(3,324	)


Total liabilities and equity		567,814		307,350		83,703		168,257		8,504


	As of December 31, 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		289,438		97,005		36,164		148,946		7,323
Deferred policy acquisition costs		12,056		2,587		3,563		6,141		(235	)
Other assets		31,126		9,271		4,652		12,756		4,447
Separate account assets		218,380		183,785		35,665		1,118		(2,188	)

Total assets		551,000		292,648		80,044		168,961		9,347


Liabilities:
Future policy benefits		119,248		20,451		11,194		87,199		404
Policyholders’ account balances		129,074		57,878		16,816		54,908		(528	)
Debt		25,208		4,704		7,045		18		13,441
Other liabilities		25,685		10,379		3,944		10,280		1,082
Separate account liabilities		218,380		183,785		35,665		1,118		(2,188	)

Total liabilities		517,595		277,197		74,664		153,523		12,211


Attributed Equity:
Accumulated other comprehensive income (loss)		5,250		2,072		1,550		3,089		(1,461	)
Other attributed equity		27,567		12,754		3,830		12,298		(1,315	)

Total attributed equity		32,817		14,826		5,380		15,387		(2,776	)

Noncontrolling Interest		588		625		—		51		(88	)

Total Equity		33,405		15,451		5,380		15,438		(2,864	)


Total liabilities and equity		551,000		292,648		80,044		168,961		9,347

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of March 31, 2012								As of December 31, 2011
	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		715		8,458		1,519		10,692		450		9,255		1,519		11,224
Investment related		1,344		9,031		—		10,375		926		7,971		—		8,897
Securities business related		843		322		—		1,165		857		661		—		1,518
Specified other businesses		753		3,299		—		4,052		103		3,466		—		3,569
Limited recourse and non-recourse borrowing		—		—		—		—		—		—		—		—

Total debt - Financial Services Businesses		3,655		21,110		1,519		26,284		2,336		21,353		1,519		25,208

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 March 31, 2012								As of December 31, 2011
	Prudential Financial, Inc.		The Prudential Insurance Co. of America (1)(2)		Other Affiliates		Total		Prudential Financial, Inc.		The Prudential Insurance Co. of America (1)(2)		Other Affiliates		Total
Financial Services Businesses
*Borrowings by sources:*
Capital Debt		9,162		1,041		489		10,692		9,662		1,040		522		11,224
Investment related		5,689		1,469		3,217		10,375		4,970		710		3,217		8,897
Securities business related		933		225		7		1,165		1,086		422		10		1,518
Specified other businesses		2,726		1,326		—		4,052		2,834		735		—		3,569
Limited recourse and non-recourse borrowing		—		—		—		—		—		—		—		—

Total debt - Financial Services Businesses		18,510		4,061		3,713		26,284		18,552		2,907		3,749		25,208

(1)	Includes Prudential Funding, LLC.

(2)	Capital debt at Prudential Insurance Co. of America includes $940 million of Surplus Notes for March 31, 2012 and December 31, 2011 respectively.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

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

(in millions)


Year-to-date						% Change			2011												2012
2012			2011			% Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	116			211			-45%	Premiums		211			244			189			257			116
	544			492			11%	Policy charges and fee income		492			520			519			512			544
	996			1,044			-5%	Net investment income		1,044			1,034			999			1,010			996
	948			905			5%	Asset management fees, commissions and other income		905			1,039			882			963			948

	2,604			2,652			-2%	Total revenues		2,652			2,837			2,589			2,742			2,604


								Benefits and Expenses (1):
	251			426			-41%	Insurance and annuity benefits		426			530			698			416			251
	544			550			-1%	Interest credited to policyholders’ account balances		550			563			623			549			544
	35			34			3%	Interest expense		34			35			35			35			35
	(265	)		(361	)		27%	Deferral of acquisition costs		(361	)		(249	)		(243	)		(240	)		(265	)
	97			114			-15%	Amortization of acquisition costs		114			141			249			98			97
	1,244			1,289			-3%	General and administrative expenses		1,289			1,212			1,185			1,216			1,244

	1,906			2,052			-7%	Total benefits and expenses		2,052			2,232			2,547			2,074			1,906

	698			600			16%	Adjusted operating income before income taxes		600			605			42			668			698

(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 10

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

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

(in millions)


	Three Months Ended March 31, 2012
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		116			27			89			—
Policy charges and fee income		544			494			50			—
Net investment income		996			197			779			20
Asset management fees, commissions and other income		948			240			189			519

Total revenues		2,604			958			1,107			539


Benefits and Expenses (1):
Insurance and annuity benefits		251			(45	)		296			—
Interest credited to policyholders’ account balances		544			117			427			—
Interest expense		35			28			4			3
Deferral of acquisition costs		(265	)		(254	)		(4	)		(7	)
Amortization of acquisition costs		97			86			5			6
General and administrative expenses		1,244			605			223			416

Total benefits and expenses		1,906			537			951			418

Adjusted operating income before income taxes		698			421			156			121


	Three Months Ended March 31, 2011
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		211			39			172			—
Policy charges and fee income		492			443			49			—
Net investment income		1,044			201			805			38
Asset management fees, commissions and other income		905			215			180			510

Total revenues		2,652			898			1,206			548


Benefits and Expenses (1):
Insurance and annuity benefits		426			60			366			—
Interest credited to policyholders’ account balances		550			136			414			—
Interest expense		34			27			4			3
Deferral of acquisition costs		(361	)		(345	)		(9	)		(7	)
Amortization of acquisition costs		114			83			25			6
General and administrative expenses		1,289			663			234			392

Total benefits and expenses		2,052			624			1,034			394

Adjusted operating income before income taxes		600			274			172			154

(1)

Revenues exclude realized investment gains, net of losses and related charges and adjustments, and 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

First Quarter 2012

LOGO

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

(in millions)


Year-to-date							2011												2012
2012			2011				1Q			2Q			3Q			4Q			1Q

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	109,743			102,348		Beginning total account value		102,348			109,969			112,202			102,879			109,743
	4,943			6,815		Sales		6,815			4,531			4,472			4,406			4,943
	(1,676	)		(1,967	)	Surrenders and withdrawals		(1,967	)		(1,933	)		(1,623	)		(1,526	)		(1,676	)

	3,267			4,848		Net sales		4,848			2,598			2,849			2,880			3,267
	(285	)		(254	)	Benefit payments		(254	)		(290	)		(272	)		(276	)		(285	)

	2,982			4,594		Net flows		4,594			2,308			2,577			2,604			2,982
	8,171			3,552		Change in market value, interest credited, and other		3,552			493			(11,330	)		4,835			8,171
	(620	)		(525	)	Policy charges		(525	)		(568	)		(570	)		(575	)		(620	)

	120,276			109,969		Ending total account value		109,969			112,202			102,879			109,743			120,276


						Fixed Annuities:
	3,792			3,837		Beginning total account value		3,837			3,841			3,825			3,810			3,792
	16			18		Sales		18			20			15			16			16
	(43	)		(48	)	Surrenders and withdrawals		(48	)		(45	)		(46	)		(44	)		(43	)

	(27	)		(30	)	Net redemptions		(30	)		(25	)		(31	)		(28	)		(27	)
	(83	)		(67	)	Benefit payments		(67	)		(65	)		(67	)		(77	)		(83	)

	(110	)		(97	)	Net flows		(97	)		(90	)		(98	)		(105	)		(110	)
	96			102		Interest credited and other		102			74			83			87			96
	—			(1	)	Policy charges		(1	)		—			—			—			—

	3,778			3,841		Ending total account value		3,841			3,825			3,810			3,792			3,778


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (1):
	764			997		Insurance Agents		997			758			736			732			764
	1,233			1,414		Wirehouses		1,414			929			1,040			1,180			1,233
	2,103			3,339		Independent Financial Planners		3,339			2,057			1,922			1,822			2,103
	859			1,083		Bank Distribution		1,083			807			789			688			859

	4,959			6,833		Total		6,833			4,551			4,487			4,422			4,959

(1)	Amounts represent gross sales.

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

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

VALUE ACTIVITY

(in millions)


Year-to-date							2011												2012
2012			2011				1Q			2Q			3Q			4Q			1Q

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	12,830			13,223		Beginning balance		13,223			12,621			12,185			12,971			12,830
	548			521		Premiums and deposits		521			391			489			505			548
	(278	)		(346	)	Surrenders and withdrawals		(346	)		(294	)		(295	)		(179	)		(278	)

	270			175		Net sales		175			97			194			326			270
	(101	)		(88	)	Benefit payments		(88	)		(85	)		(82	)		(92	)		(101	)

	169			87		Net flows		87			12			112			234			169
	96			106		Interest credited and other		106			100			102			104			96
	(818	)		(794	)	Net transfers (to) from separate account		(794	)		(548	)		572			(479	)		(818	)
	—			(1	)	Policy charges		(1	)		—			—			—			—

	12,277			12,621		Ending balance		12,621			12,185			12,971			12,830			12,277


						Account Values in Separate Account:
	100,705			92,962		Beginning balance		92,962			101,189			103,842			93,718			100,705
	4,411			6,312		Premiums and deposits		6,312			4,160			3,998			3,917			4,411
	(1,441	)		(1,669	)	Surrenders and withdrawals		(1,669	)		(1,684	)		(1,374	)		(1,391	)		(1,441	)

	2,970			4,643		Net sales		4,643			2,476			2,624			2,526			2,970
	(267	)		(233	)	Benefit payments		(233	)		(270	)		(257	)		(261	)		(267	)

	2,703			4,410		Net flows		4,410			2,206			2,367			2,265			2,703
	8,171			3,548		Change in market value, interest credited and other		3,548			467			(11,349	)		4,818			8,171
	818			794		Net transfers (to) from general account		794			548			(572	)		479			818
	(620	)		(525	)	Policy charges		(525	)		(568	)		(570	)		(575	)		(620	)

	111,777			101,189		Ending balance		101,189			103,842			93,718			100,705			111,777

(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 13

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

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

(in millions)


	2011								2012
	1Q		2Q		3Q		4Q		1Q

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

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		9,935		9,667		8,844		8,771		8,724
Guaranteed minimum withdrawal benefits		1,296		1,215		1,018		1,031		1,066
Guaranteed minimum income benefits		4,480		4,261		3,580		3,685		3,874
Guaranteed minimum withdrawal & income benefits		66,857		70,349		66,080		72,154		81,156

Total		82,568		85,492		79,522		85,641		94,820


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		64,786		68,273		64,769		70,341		78,622
Account Values without Auto-Rebalancing Feature		17,782		17,219		14,753		15,300		16,198

Total		82,568		85,492		79,522		85,641		94,820


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		1,227		1,438		4,996		4,238		2,650
Net Amount at Risk without Auto-Rebalancing Feature		1,574		1,622		2,934		2,361		1,652

Total		2,801		3,060		7,930		6,599		4,302

(1)	At end of period.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

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

(in millions)


	2011								2012
	1Q		2Q		3Q		4Q		1Q

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		76,405		78,748		72,971		78,334		86,442
Net amount at risk		929		918		3,238		2,083		963
Minimum return, anniversary contract value, or maximum contract value:
Account value		30,216		30,191		27,022		28,414		30,685
Net amount at risk		3,871		3,958		6,751		5,699		4,173

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		64,786		68,273		64,769		70,341		78,622
Account Values without Auto-Rebalancing Feature		41,835		40,666		35,224		36,407		38,505

Total		106,621		108,939		99,993		106,748		117,127


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		557		591		3,042		2,154		995
Net Amount at Risk without Auto-Rebalancing Feature		4,243		4,285		6,947		5,628		4,141

Total		4,800		4,876		9,989		7,782		5,136

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

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

(in millions)


Year-to-date							2011												2012
2012			2011				1Q			2Q			3Q			4Q			1Q

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	139,430			141,313		Beginning total account value		141,313			145,977			146,580			134,198			139,430
	4,646			4,848		Deposits and sales		4,848			4,128			3,966			3,879			4,646
	(7,103	)		(4,927	)	Withdrawals and benefits		(4,927	)		(4,214	)		(4,126	)		(5,893	)		(7,103	)
	9,018			4,743		Change in market value, interest credited, interest income and other activity (1)		4,743			689			(12,222	)		7,246			9,018

	145,991			145,977		Ending total account value		145,977			146,580			134,198			139,430			145,991


	(2,457	)		(79	)	Net withdrawals		(79	)		(86	)		(160	)		(2,014	)		(2,457	)


						Stable value account values included above		39,062			39,828			40,889			41,142			41,169

						Institutional Investment Products:
	90,089			64,183		Beginning total account value		64,183			68,892			74,131			80,513			90,089
	4,399			5,785		Additions		5,785			5,592			5,571			10,825			4,399
	(1,538	)		(1,128	)	Withdrawals and benefits (2)		(1,128	)		(1,437	)		(1,501	)		(2,084	)		(1,538	)
	928			482		Change in market value, interest credited and interest income		482			1,190			2,176			733			928
	(25	)		(430	)	Other (3)		(430	)		(106	)		136			102			(25	)

	93,853			68,892		Ending total account value		68,892			74,131			80,513			90,089			93,853


	2,861			4,657		Net additions		4,657			4,155			4,070			8,741			2,861

(1)	Includes $469 million for the three months ended December 31, 2011, representing the addition of Prudential’s Non-Qualified pension plan transferred from a third party administrator.

(2)

Includes $(34) million, $(18) million, $(16) million, $(10) million and $(7) million for the three months ended March 31, 2011, June 30, 2011, September 30, 2011, December 31, 2011 and March 31, 2012 respectively, representing transfers of client balances managed by Prudential to externally managed accounts. These withdrawals are offset within the “Other” category and there are no net impacts on ending account values for these transfers.

(3)

“Other” activity includes transfers to the Asset Management segment of $(402) million and $(13) million for the three months ended March 31, 2011 and June 30, 2011, respectively. “Other” activity also includes $34 million, $18 million, $16 million, $10 million and $7 million for the three months ended March 31, 2011, June 30, 2011, September 30, 2011, December 31, 2011 and March 31, 2012 respectively, related to transfers discussed above in note 2. The remainder of “Other” activity primarily represents changes in asset balances for externally managed accounts.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

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				%			2011								2012
2012		2011		Change			1Q		2Q		3Q		4Q		1Q

						Analysis of revenues by type:
	386		356		8%	Asset management fees		356		368		367		376		386
	30		57		-47%	Incentive, transaction, strategic investing and commercial mortgage revenues		57		149		35		98		30
	123		135		-9%	Service, distribution and other revenues		135		139		111		120		123

	539		548		-2%	Total Asset Management segment revenues		548		656		513		594		539


						Analysis of asset management fees by source:
	187		174		7%	Institutional customers		174		178		178		184		187
	115		104		11%	Retail customers		104		108		107		107		115
	84		78		8%	General account		78		82		82		85		84

	386		356		8%	Total asset management fees		356		368		367		376		386


Supplementary Assets Under Management Information (in billions):
	March 31, 2012
	Equity		Fixed Income		Real Estate		Total
Institutional customers		51.0		202.4		29.8		283.2
Retail customers		82.9		39.3		1.4		123.6
General account		4.6		224.0		1.4		230.0

Total		138.5		465.7		32.6		636.8


	March 31, 2011
	Equity		Fixed Income		Real Estate		Total
Institutional customers		52.6		168.5		25.1		246.2
Retail customers		79.3		27.9		1.6		108.8
General account		4.4		208.4		1.0		213.8

Total		136.3		404.8		27.7		568.8

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

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

(in billions)


Year-to-date							2011												2012
2012			2011				1Q			2Q			3Q			4Q			1Q

						Institutional Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	231.5			197.6		Beginning assets under management		197.6			209.2			218.9			221.6			231.5
	13.9			12.4		Additions		12.4			10.8			10.6			14.2			13.9
	(8.5	)		(6.5	)	Withdrawals		(6.5	)		(5.8	)		(8.5	)		(10.5	)		(8.5	)
	7.6			5.4		Change in market value		5.4			4.7			0.8			5.9			7.6
	0.1			(0.1	)	Net money market flows		(0.1	)		—			(0.2	)		0.3			0.1
	—			0.4		Other (1)		0.4			—			—			—			—

	244.6			209.2		Ending assets under management		209.2			218.9			221.6			231.5			244.6
	38.6			37.0		Affiliated institutional assets under management		37.0			37.3			37.2			37.6			38.6

	283.2			246.2		Total assets managed for institutional customers at end of period		246.2			256.2			258.8			269.1			283.2


	5.4			5.9		Net institutional additions, excluding money market activity		5.9			5.0			2.1			3.7			5.4


						Retail Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	64.2			61.6		Beginning assets under management		61.6			66.2			66.8			58.9			64.2
	8.7			6.1		Additions		6.1			5.0			6.2			6.6			8.7
	(5.5	)		(4.1	)	Withdrawals		(4.1	)		(5.2	)		(5.7	)		(5.4	)		(5.5	)
	7.6			3.0		Change in market value		3.0			0.8			(8.4	)		4.1			7.6
	—			—		Net money market flows		—			—			—			—			—
	—			(0.4	)	Other (2)		(0.4	)		—			—			—			—

	75.0			66.2		Ending assets under management		66.2			66.8			58.9			64.2			75.0
	48.6			42.6		Affiliated retail assets under management		42.6			42.5			51.2			53.7			48.6

	123.6			108.8		Total assets managed for retail customers at end of period		108.8			109.3			110.1			117.9			123.6


	3.2			2.0		Net retail additions (withdrawals), excluding money market activity		2.0			(0.2	)		0.5			1.2			3.2

(1)	“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 18

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

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

(in millions)


Year-to-date						%			2011												2012
2012			2011			Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	1,389			1,360			2%	Premiums		1,360			1,361			1,382			1,375			1,389
	391			385			2%	Policy charges and fee income		385			384			319			384			391
	432			407			6%	Net investment income		407			418			421			418			432
	111			79			41%	Asset management fees, commissions and other income		79			86			81			108			111

	2,323			2,231			4%	Total revenues		2,231			2,249			2,203			2,285			2,323


								Benefits and Expenses (1):
	1,603			1,510			6%	Insurance and annuity benefits		1,510			1,453			1,538			1,468			1,603
	133			128			4%	Interest credited to policyholders’ account balances		128			130			134			135			133
	77			45			71%	Interest expense		45			48			48			73			77
	(106	)		(84	)		-26%	Deferral of acquisition costs		(84	)		(92	)		(94	)		(97	)		(106	)
	64			73			-12%	Amortization of acquisition costs		73			82			(50	)		53			64
	478			422			13%	General and administrative expenses		422			444			454			460			478

	2,249			2,094			7%	Total benefits and expenses		2,094			2,065			2,030			2,092			2,249


	74			137			-46%	Adjusted operating income before income taxes		137			184			173			193			74

(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 19

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

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

(in millions)


	Three Months Ended March 31, 2012
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		1,389			175			1,214
Policy charges and fee income		391			265			126
Net investment income		432			254			178
Asset management fees, commissions and other income		111			82			29

Total revenues		2,323			776			1,547


Benefits and Expenses (1):
Insurance and annuity benefits		1,603			294			1,309
Interest credited to policyholders’ account balances		133			77			56
Interest expense		77			77			—
Deferral of acquisition costs		(106	)		(89	)		(17	)
Amortization of acquisition costs		64			56			8
General and administrative expenses		478			249			229

Total benefits and expenses		2,249			664			1,585


Adjusted operating income (loss) before income taxes		74			112			(38	)


	Three Months Ended March 31, 2011
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		1,360			172			1,188
Policy charges and fee income		385			264			121
Net investment income		407			236			171
Asset management fees, commissions and other income		79			53			26

Total revenues		2,231			725			1,506


Benefits and Expenses (1):
Insurance and annuity benefits		1,510			297			1,213
Interest credited to policyholders’ account balances		128			71			57
Interest expense		45			45			—
Deferral of acquisition costs		(84	)		(72	)		(12	)
Amortization of acquisition costs		73			67			6
General and administrative expenses		422			219			203

Total benefits and expenses		2,094			627			1,467


Adjusted operating income before income taxes		137			98			39

(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

First Quarter 2012

LOGO

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

(in millions)


Year-to-date							2011												2012
2012			2011				1Q			2Q			3Q			4Q			1Q

						ANNUALIZED NEW BUSINESS PREMIUMS (1):

	4			7		Variable life		7			6			8			4			4
	34			23		Universal life		23			22			21			29			34
	41			35		Term life		35			40			41			42			41

	79			65		Total		65			68			70			75			79


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	20			20		Prudential Agents		20			21			21			22			20
	59			45		Third party distribution		45			47			49			53			59

	79			65		Total		65			68			70			75			79


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2):*
	9,500			8,773		Beginning balance		8,773			8,974			9,086			9,364			9,500
	480			402		Premiums and deposits		402			374			401			454			480
	(196	)		(180	)	Surrenders and withdrawals		(180	)		(217	)		(184	)		(199	)		(196	)

	284			222		Net sales		222			157			217			255			284
	(57	)		(51	)	Benefit payments		(51	)		(49	)		(70	)		(51	)		(57	)

	227			171		Net flows		171			108			147			204			227
	88			62		Interest credited and other		62			20			126			(44	)		88
	70			61		Net transfers from separate account		61			74			93			59			70
	(93	)		(93	)	Policy charges		(93	)		(90	)		(88	)		(83	)		(93	)

	9,792			8,974		Ending balance		8,974			9,086			9,364			9,500			9,792


						*Separate Account Liabilities:*
	16,491			17,156		Beginning balance		17,156			17,749			17,544			15,506			16,491
	208			220		Premiums and deposits		220			215			246			215			208
	(145	)		(161	)	Surrenders and withdrawals		(161	)		(255	)		(128	)		(150	)		(145	)

	63			59		Net sales (redemptions)		59			(40	)		118			65			63
	(7	)		(13	)	Benefit payments		(13	)		(11	)		(5	)		(8	)		(7	)

	56			46		Net flows		46			(51	)		113			57			56
	1,530			777		Change in market value, interest credited and other		777			90			(1,890	)		1,151			1,530
	(70	)		(61	)	Net transfers to general account		(61	)		(74	)		(93	)		(59	)		(70	)
	(165	)		(169	)	Policy charges		(169	)		(170	)		(168	)		(164	)		(165	)

	17,842			17,749		Ending balance		17,749			17,544			15,506			16,491			17,842


						FACE AMOUNT IN FORCE (3):

						Variable life		117,538			116,024			113,349			113,039			113,118
						Universal life		38,190			38,896			39,644			41,063			42,751
						Term life		460,683			466,129			471,453			477,235			483,890

						Total		616,411			621,049			624,446			631,337			639,759

(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 21

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

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

(dollar amounts in millions)


Year-to-date					2011								2012
2012		2011			1Q		2Q		3Q		4Q		1Q

				Individual Life Insurance:

				Policy Surrender Experience:
	170		189	Cash value of surrenders		189		286		148		155		170
	2.8%		3.1%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		3.1%		4.7%		2.5%		2.7%		2.8%

				Death benefits per $1,000 of in force (1):
	4.35		5.15	Variable and universal life		5.15		3.73		5.00		4.18		4.35
	1.42		1.12	Term life		1.12		1.06		1.21		0.99		1.42
	2.86		3.05	Total, Individual Life Insurance		3.05		2.34		3.03		2.49		2.86

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

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

(dollar amounts in millions)


Year-to-date					2011												2012
2012		2011			1Q			2Q			3Q			4Q			1Q

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	211		392	Group life		392			22			23			49			211
	102		108	Group disability (1)		108			30			29			37			102

	313		500	Total		500			52			52			86			313


				Future Policy Benefits (2):
				Group life		2,233			2,202			2,184			2,418			2,325
				Group disability (1)		1,560			1,621			1,676			1,751			1,896

				Total		3,793			3,823			3,860			4,169			4,221


				Policyholders’ Account Balances (2):
				Group life		6,943			7,075			7,027			7,127			7,188
				Group disability (1)		174			179			187			189			178

				Total		7,117			7,254			7,214			7,316			7,366


				Separate Account Liabilities (2):
				Group life		19,292			20,027			19,148			19,174			19,826
				Group disability (1)		—			—			—			—			—

				Total		19,292			20,027			19,148			19,174			19,826


				Group Life Insurance:
	1,064		1,066	Gross premiums, policy charges and fee income (3)		1,066			1,046			1,050			1,040			1,064
	990		1,010	Earned premiums, policy charges and fee income		1,010			992			1,064			999			990
	95.4%		92.3%	Benefits ratio		92.3	%		90.4	%		89.3	%		86.0	%		95.4	%
	8.9%		8.1%	Administrative operating expense ratio		8.1	%		7.9	%		8.5	%		8.8	%		8.9	%
				Persistency ratio		97.2	%		96.6	%		96.2	%		95.8	%		95.4	%

				Group Disability Insurance (1):
	352		301	Gross premiums, policy charges and fee income (3)		301			304			304			327			352
	350		299	Earned premiums, policy charges and fee income		299			296			299			323			350
	104.6%		94.3%	Benefits ratio		94.3	%		97.0	%		95.0	%		103.4	%		104.6	%
	21.6%		21.9%	Administrative operating expense ratio		21.9	%		22.4	%		21.7	%		21.4	%		21.6	%
				Persistency ratio		93.3	%		91.6	%		89.7	%		88.5	%		93.9	%

(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 23

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

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

(in millions)


Year-to-date							2011												2012
2012			2011				1Q			2Q			3Q			4Q			1Q

						DEFERRED POLICY ACQUISITION COSTS

						INDIVIDUAL ANNUITIES:
	2,390			3,019		Beginning balance		3,019			3,278			3,300			2,131			2,390
	254			345		Capitalization		345			235			230			228			254
	(86	)		(83	)	Amortization - operating results		(83	)		(131	)		(233	)		(89	)		(86	)
	675			14		Amortization - realized investment gains and losses		14			(81	)		(1,138	)		73			675
	19			(1	)	Impact of unrealized (gains) or losses on AFS securities		(1	)		(1	)		(28	)		47			19
	—			(16	)	Other (1)		(16	)		—			—			—			—

	3,252			3,278		Ending balance		3,278			3,300			2,131			2,390			3,252


						INDIVIDUAL LIFE INSURANCE:
	3,192			3,214		Beginning balance		3,214			3,225			3,187			3,263			3,192
	89			72		Capitalization		72			78			82			85			89
	(56	)		(67	)	Amortization - operating results		(67	)		(77	)		56			(47	)		(56	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	17			6		Impact of unrealized (gains) or losses on AFS securities		6			(39	)		(62	)		(109	)		17

	3,242			3,225		Ending balance		3,225			3,187			3,263			3,192			3,242


						GROUP INSURANCE:
	371			344		Beginning balance		344			350			359			365			371
	17			12		Capitalization		12			14			12			12			17
	(8	)		(6	)	Amortization - operating results		(6	)		(5	)		(6	)		(6	)		(8	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	380			350		Ending balance		350			359			365			371			380


						DEFERRED SALES INDUCEMENTS

						INDIVIDUAL ANNUITIES:
	1,000			1,348		Beginning balance		1,348			1,431			1,415			915			1,000
	82			121		Capitalization		121			86			72			79			82
	(45	)		(56	)	Amortization - operating results		(56	)		(60	)		(105	)		(41	)		(45	)
	262			6		Amortization - realized investment gains and losses		6			(44	)		(455	)		29			262
	7			(4	)	Impact of unrealized (gains) or losses on AFS securities		(4	)		2			(12	)		18			7
	—			16		Other (1)		16			—			—			—			—

	1,306			1,431		Ending balance		1,431			1,415			915			1,000			1,306

(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 24

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


Year-to-date						%			2011												2012
2012			2011			Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	4,605			3,256			41%	Premiums		3,256			3,903			3,838			4,018			4,605
	152			113			35%	Policy charges and fee income		113			143			150			146			152
	1,023			765			34%	Net investment income		765			961			1,026			1,025			1,023
	69			187			-63%	Asset management fees, commissions and other income		187			41			116			101			69

	5,849			4,321			35%	Total revenues		4,321			5,048			5,130			5,290			5,849


								Benefits and Expenses (1):
	3,752			2,706			39%	Insurance and annuity benefits		2,706			3,170			3,034			3,175			3,752
	278			161			73%	Interest credited to policyholders’ account balances		161			249			292			276			278
	1			—			—	Interest expense		—			1			—			—			1
	(470	)		(321	)		-46%	Deferral of acquisition costs		(321	)		(446	)		(467	)		(450	)		(470	)
	260			186			40%	Amortization of acquisition costs		186			219			235			240			260
	1,422			961			48%	General and administrative expenses		961			1,355			1,376			1,454			1,422

	5,243			3,693			42%	Total benefits and expenses		3,693			4,548			4,470			4,695			5,243


	606			628			-4%	Adjusted operating income before income taxes		628			500			660			595			606

(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 25

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	Three Months Ended March 31, 2012
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		4,605			1,826			2,779
Policy charges and fee income		152			94			58
Net investment income		1,023			386			637
Asset management fees, commissions and other income		69			11			58

Total revenues		5,849			2,317			3,532


Benefits and Expenses (1):
Insurance and annuity benefits		3,752			1,490			2,262
Interest credited to policyholders’ account balances		278			68			210
Interest expense		1			—			1
Deferral of acquisition costs		(470	)		(212	)		(258	)
Amortization of acquisition costs		260			126			134
General and administrative expenses		1,422			463			959

Total benefits and expenses		5,243			1,935			3,308


Adjusted operating income before income taxes		606			382			224


	Three Months Ended March 31, 2011
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		3,256			1,655			1,601
Policy charges and fee income		113			90			23
Net investment income		765			351			414
Asset management fees, commissions and other income		187			1			186

Total revenues		4,321			2,097			2,224


Benefits and Expenses (1):
Insurance and annuity benefits		2,706			1,389			1,317
Interest credited to policyholders’ account balances		161			62			99
Interest expense		—			—			—
Deferral of acquisition costs		(321	)		(192	)		(129	)
Amortization of acquisition costs		186			113			73
General and administrative expenses		961			425			536

Total benefits and expenses		3,693			1,797			1,896


Adjusted operating income before income taxes		628			300			328

(1)

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2011								2012
2012		2011			1Q		2Q		3Q		4Q		1Q

				Japanese Yen Basis Results:
				Revenues (1):
¥	147,405	¥	137,936	Japanese insurance operations excluding Gibraltar Life	¥	137,936	¥	122,770	¥	128,529	¥	126,311	¥	147,405
	278,352		172,254	Gibraltar Life and Other Operations		172,254		257,446		256,646		248,953		278,352

	425,757		310,190	Total revenues, yen basis		310,190		380,216		385,175		375,264		425,757


				Benefits and Expenses (1):
	119,981		115,092	Japanese insurance operations excluding Gibraltar Life		115,092		98,342		104,866		103,898		119,981
	261,945		155,267	Gibraltar Life and Other Operations		155,267		240,754		222,238		230,519		261,945

	381,926		270,359	Total benefits and expenses, yen basis		270,359		339,096		327,104		334,417		381,926


				Adjusted operating income (2):
	27,424		22,844	Japanese insurance operations excluding Gibraltar Life		22,844		24,428		23,663		22,413		27,424
	16,407		16,987	Gibraltar Life and Other Operations		16,987		16,692		34,408		18,434		16,407

¥	43,831	¥	39,831	Total adjusted operating income, yen basis	¥	39,831	¥	41,120	¥	58,071	¥	40,847	¥	43,831


				U.S. Dollar adjusted operating income (3):
$	331	$	266	Japanese insurance operations excluding Gibraltar Life and Other Operations	$	266	$	281	$	277	$	267	$	331
	224		328	Gibraltar Life and Other Operations		328		185		329		295		224

	555		594	Total adjusted operating income, U.S. dollar basis		594		466		606		562		555
	51		34	All other (4)		34		34		54		33		51

$	606	$	628	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	628	$	500	$	660	$	595	$	606

(1)

(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 27

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date					2011								2012
2012		2011			1Q		2Q		3Q		4Q		1Q

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	1,531		1,375	Japan, excluding Gibraltar Life		1,375		1,208		1,310		1,317		1,531
	2,837		1,624	Gibraltar Life		1,624		2,443		2,278		2,440		2,837
	389		370	All other countries		370		395		400		407		389

	4,757		3,369	Total		3,369		4,046		3,988		4,164		4,757


				Annualized new business premiums:
	305		224	Japan, excluding Gibraltar Life		224		176		209		207		305
	469		373	Gibraltar Life		373		544		570		555		469
	89		83	All other countries		83		82		82		87		89

	863		680	Total		680		802		861		849		863


				Annualized new business premiums by distribution channel:
	394		307	Life Planners		307		258		291		294		394
	193		160	Gibraltar Life Consultants		160		270		269		280		193
	193		135	Banks		135		143		173		152		193
	83		78	Independent Agency		78		131		128		123		83

	863		680	Total		680		802		861		849		863


				Constant exchange rate basis (2):

				Net premiums, policy charges and fee income:
	1,460		1,340	Japan, excluding Gibraltar Life		1,340		1,171		1,225		1,227		1,460
	2,633		1,585	Gibraltar Life		1,585		2,363		2,135		2,268		2,633
	378		351	All other countries		351		364		371		404		378

	4,471		3,276	Total		3,276		3,898		3,731		3,899		4,471


				Annualized new business premiums:
	294		218	Japan, excluding Gibraltar Life		218		171		198		194		294
	439		363	Gibraltar Life		363		524		537		519		439
	86		79	All other countries		79		76		75		86		86

	819		660	Total		660		771		810		799		819


				Annualized new business premiums by distribution channel:
	380		297	Life Planners		297		247		273		280		380
	181		155	Gibraltar Life Consultants		155		258		253		262		181
	182		132	Banks		132		139		165		144		182
	76		76	Independent Agency		76		127		119		113		76

	819		660	Total		660		771		810		799		819

(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 85 per U.S. dollar; Korean won 1180 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2011												2012
	1Q			2Q			3Q			4Q			1Q

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		322			324			326			328			332
Gibraltar Life		377			375			378			380			378
All other countries		102			102			103			105			105

Total		801			801			807			813			815


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		2,590			2,616			2,647			2,678			2,725
Gibraltar Life (3)		7,457			7,430			7,459			7,477			7,453
All other countries		1,522			1,536			1,555			1,575			1,606

Total		11,569			11,582			11,661			11,730			11,784


International life insurance policy persistency: (3)

Excluding Gibraltar Life:
13 months		92.1	%		92.2	%		92.7	%		92.8	%		93.0	%
25 months		84.6	%		84.7	%		85.1	%		85.4	%		85.2	%

Gibraltar Life:
13 months		92.4	%		92.7	%		93.0	%		93.1	%		93.0	%
25 months		85.3	%		85.5	%		85.8	%		85.8	%		85.8	%

Number of Life Planners at end of period:
Japan		3,150			3,106			3,144			3,137			3,165
All other countries		3,431			3,462			3,555			3,655			3,654

Total life planners		6,581			6,568			6,699			6,792			6,819


Gibraltar Life Consultants		13,227			13,353			12,936			12,791			12,219

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 85 per U.S. dollar; Korean won 1180 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)	Excludes acquired Star/Edison business.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	March 31, 2012									December 31, 2011
	Consolidated Portfolio		Closed Block Business		Financial Services Businesses					Consolidated Portfolio		Closed Block Business		Financial Services Businesses
	Consolidated Portfolio		Closed Block Business		Amount		% of Total			Consolidated Portfolio		Closed Block Business		Amount		% of Total
Fixed maturities:
Public, available-for-sale, at fair value		208,609		29,565		179,044		64.3	%		209,297		30,211		179,086		64.3	%
Public, held-to-maturity, at amortized cost		3,502		—		3,502		1.3	%		3,743		—		3,743		1.3	%
Private, available-for-sale, at fair value		43,960		16,607		27,353		9.8	%		43,243		16,305		26,938		9.7	%
Private, held-to-maturity, at amortized cost		1,273		—		1,273		0.4	%		1,364		—		1,364		0.5	%
Trading account assets supporting insurance liabilities, at fair value		19,679		—		19,679		7.1	%		19,481		—		19,481		7.0	%
Other trading account assets, at fair value		2,201		321		1,880		0.7	%		2,421		317		2,104		0.8	%
Equity securities, available-for-sale, at fair value		8,013		3,397		4,616		1.7	%		7,523		3,122		4,401		1.6	%
Commercial mortgage and other loans, at book value		34,649		9,418		25,231		9.1	%		34,113		9,040		25,073		9.0	%
Policy loans, at outstanding balance		11,419		5,228		6,191		2.2	%		11,559		5,296		6,263		2.2	%
Other long-term investments (1)		6,145		1,964		4,181		1.5	%		6,471		1,990		4,481		1.6	%
Short-term investments		6,075		729		5,346		1.9	%		6,137		528		5,609		2.0	%

Subtotal (2)		345,525		67,229		278,296		100.0	%		345,352		66,809		278,543		100.0	%

Invested assets of other entities and operations (3)		9,175		—		9,175					10,895		—		10,895

Total investments		354,700		67,229		287,471					356,247		66,809		289,438

Fixed Maturities by Credit Quality (2):


	March 31, 2012											December 31, 2011
	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 (4)
1		149,730		11,909		991		160,648		87.9	%		151,700		11,143		1,756		161,087		88.0	%
2		16,694		1,323		496		17,521		9.6	%		17,017		1,298		797		17,518		9.6	%

Subtotal - High or Highest Quality Securities		166,424		13,232		1,487		178,169		97.5	%		168,717		12,441		2,553		178,605		97.6	%

3		3,435		85		387		3,133		1.7	%		3,446		66		574		2,938		1.6	%
4		1,228		53		216		1,065		0.6	%		1,328		34		296		1,066		0.6	%
5		375		10		126		259		0.1	%		443		6		174		275		0.1	%
6		106		16		33		89		0.1	%		219		15		105		129		0.1	%

Subtotal - Other Securities		5,144		164		762		4,546		2.5	%		5,436		121		1,149		4,408		2.4	%

Total		171,568		13,396		2,249		182,715		100.0	%		174,153		12,562		3,702		183,013		100.0	%


Private Fixed Maturities:
NAIC Rating (4)
1		7,022		702		65		7,659		26.7	%		7,018		730		84		7,664		27.0	%
2		15,977		1,303		275		17,005		59.3	%		15,847		1,273		362		16,758		59.1	%

Subtotal - High or Highest Quality Securities		22,999		2,005		340		24,664		86.0	%		22,865		2,003		446		24,422		86.1	%

3		2,516		165		40		2,641		9.2	%		2,532		134		43		2,623		9.2	%
4		710		24		9		725		2.5	%		715		14		20		709		2.5	%
5		535		9		24		520		1.8	%		490		5		42		453		1.6	%
6		115		25		2		138		0.5	%		130		31		3		158		0.6	%

Subtotal - Other Securities		3,876		223		75		4,024		14.0	%		3,867		184		108		3,943		13.9	%

Total		26,875		2,228		415		28,688		100.0	%		26,732		2,187		554		28,365		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)	Excludes (i) assets of our trading and banking operations, (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.

(3)	Includes invested assets of trading and banking operations, 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.

(4)

Reflects equivalent ratings for investments of the international insurance operations. Includes, as of March 31, 2012 and December 31, 2011, respectively, 111 securities with amortized cost of $714 million (fair value $725 million) and 110 securities with amortized cost of $817 million (fair value, $852 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	March 31, 2012					December 31, 2011
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		111,925		80.9	%		111,857		80.3	%
Public, held-to-maturity, at amortized cost		3,502		2.5	%		3,743		2.7	%
Private, available-for-sale, at fair value		5,236		3.8	%		5,020		3.6	%
Private, held-to-maturity, at amortized cost		1,273		0.9	%		1,364		1.0	%
Trading account assets supporting insurance liabilities, at fair value		1,796		1.3	%		1,732		1.2	%
Other trading account assets, at fair value		1,454		1.1	%		1,496		1.1	%
Equity securities, available-for-sale, at fair value		1,954		1.4	%		1,932		1.4	%
Commercial mortgage and other loans, at book value		5,495		4.0	%		5,672		4.1	%
Policy loans, at outstanding balance		2,735		2.0	%		2,873		2.0	%
Other long-term investments (2)		2,245		1.6	%		2,892		2.1	%
Short-term investments		731		0.5	%		702		0.5	%

Total		138,346		100.0	%		139,283		100.0	%


	March 31, 2012					December 31, 2011
	Amount		% of Total			Amount		% of Total
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		67,119		48.0	%		67,229		48.3	%
Public, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available-for-sale, at fair value		22,117		15.8	%		21,918		15.7	%
Private, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		17,883		12.8	%		17,749		12.8	%
Other trading account assets, at fair value		426		0.3	%		608		0.4	%
Equity securities, available-for-sale, at fair value		2,662		1.9	%		2,469		1.8	%
Commercial mortgage and other loans, at book value		19,736		14.1	%		19,401		13.9	%
Policy loans, at outstanding balance		3,456		2.4	%		3,390		2.4	%
Other long-term investments (2)		1,936		1.4	%		1,589		1.2	%
Short-term investments		4,615		3.3	%		4,907		3.5	%

Total		139,950		100.0	%		139,260		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 31

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Three Months Ended March 31
	2012									2011
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Investment Income									Investment Income
	Yield (3)			Amount						Yield (3)(4)			Amount
Financial Services Businesses (1):
Fixed maturities		3.74	%		1,841			(14	)		4.02	%		1,598			4
Equity securities		5.55	%		56			(55	)		5.04	%		54			3
Commercial mortgage and other loans		5.20	%		270			3			5.54	%		249			10
Policy loans		4.56	%		71			—			4.69	%		64			—
Short-term investments and cash equivalents		0.25	%		8			—			0.37	%		11			—
Other investments		2.83	%		46			(1,313	)		5.48	%		65			(102	)

Gross investment income before investment expenses		3.71	%		2,292			(1,379	)		4.03	%		2,041			(85	)
Investment expenses		-0.12	%		(61	)		—			-0.13	%		(53	)		—

Subtotal		3.59	%		2,231			(1,379	)		3.90	%		1,988			(85	)

Investment results of other entities and operations (2)					298			5						320			5
Less, investment income related to adjusted operating income reconciling items					3									(4	)

Total					2,532			(1,374	)					2,304			(80	)

(1)

Excludes assets of our trading and banking operations, 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 trading and banking operations, 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 one month of income and assets related to the Star and Edison businesses.

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Three Months Ended March 31
	2012									2011
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Investment Income									Investment Income
	Yield (1)			Amount						Yield (1)(2)			Amount
Japanese Insurance Operations:
Fixed maturities		2.70	%		794			(11	)		2.70	%		541			(49	)
Equity securities		3.16	%		16			(61	)		2.29	%		13			—
Commercial mortgage and other loans		3.99	%		55			4			4.27	%		48			5
Policy loans		3.36	%		23			—			3.40	%		19			—
Short-term investments and cash equivalents		0.17	%		1			—			0.59	%		4			—
Other investments (3)		2.93	%		31			(204	)		6.84	%		46			(134	)

Gross investment income before investment expenses		2.72	%		920			(272	)		2.83	%		671			(178	)
Investment expenses		-0.12	%		(40	)		—			-0.11	%		(26	)		—

Total		2.60	%		880			(272	)		2.72	%		645			(178	)

(1)

(2)	Yields are weighted for one month 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 33

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Three Months Ended March 31
	2012									2011
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Investment Income									Investment Income
	Yield (2)			Amount						Yield (2)			Amount
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		5.27	%		1,047			(3	)		5.38	%		1,057			53
Equity securities		7.83	%		40			6			8.12	%		41			3
Commercial mortgage and other loans		5.64	%		215			(1	)		5.96	%		201			5
Policy loans		5.54	%		48			—			5.60	%		45			—
Short-term investments and cash equivalents		0.28	%		7			—			0.31	%		7			—
Other investments		2.68	%		15			(1,109	)		3.75	%		19			32

Gross investment income before investment expenses		4.91	%		1,372			(1,107	)		5.07	%		1,370			93
Investment expenses		-0.13	%		(21	)		—			-0.14	%		(27	)		—

Total		4.78	%		1,351			(1,107	)		4.93	%		1,343			93

(1)

Excludes assets of our trading and banking operations, 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)

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

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

Realized investment gains (losses) 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 35

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

KEY DEFINITIONS AND FORMULAS

11. Client Assets:

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

12. Earned Premiums:

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

13. Earnings Per Share of Common Stock:

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

14. Full Service:

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

15. Full Service Stable Value:

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

16. General Account:

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

17. Gibraltar Life Consultants:

Insurance representatives for Gibraltar Life, previously identified as Life Advisors.

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 36

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

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.

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.

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 (11.90)% for the three months ended March 31, 2012, 6.1% for the three months ended December 31, 2011, 19.8% for the three months ended September 30, 2011, 10.4% for the three months ended June 30, 2011 and 7.5% for the three months ended March 31, 2011.

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. 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.

31. 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 37

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2012

LOGO

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of May 2, 2012


	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-	NR	NR

CREDIT RATINGS:
as of May 2, 2012

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

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

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

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

*	NR indicates not rated.

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

INVESTOR INFORMATION:


Corporate Offices:		Investor Information Hotline:

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

Common Stock:

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

Page 38

PRUDENTIAL FINANCIAL INC - FORM 8-K - EX-99.1 - QUARTERLY FINANCIAL SUPPLEMENT - May 2, 2012

Attached files