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

Attached files

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8-K - FORM 8-K - PRUDENTIAL FINANCIAL INC	d385539d8k.htm
EX-99.0 - NEWS RELEASE OF PRUDENTIAL FINANCIAL, INC., DATED AUGUST 1, 2012 - PRUDENTIAL FINANCIAL INC	d385539dex990.htm

Exhibit 99.1

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

SECOND 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.

August 1, 2012

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

CONTENTS


	Page
HIGHLIGHTS
Financial Highlights		1-3
Operations Highlights		4

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

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

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

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

INTERNATIONAL INSURANCE DIVISION
Combined Statements of Operations		26
Combining Statements of Operations		27
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

Second Quarter 2012

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

								*Financial Services Businesses:*
								Pre-tax adjusted operating income (loss) by division:
	1,000			1,205			-17%	U.S. Retirement Solutions and Investment Management Division		605			42			668			698			302
	181			321			-44%	U.S. Individual Life and Group Insurance Division		184			173			193			74			107
	1,287			1,128			14%	International Insurance Division		500			660			595			606			681
	(624	)		(506	)		-23%	Corporate and other operations		(237	)		(347	)		(286	)		(363	)		(261	)

	1,844			2,148			-14%	Total pre-tax adjusted operating income		1,052			528			1,170			1,015			829
	476			575			-17%	Income taxes, applicable to adjusted operating income		279			110			309			274			202

	1,368			1,573			-13%	Financial Services Businesses after-tax adjusted operating income		773			418			861			741			627


								Reconciling items:
	192			(374	)		151%	Realized investment gains (losses), net, and related charges and adjustments		1			1,817			(596	)		(1,838	)		2,030
	238			160			49%	Investment gains on trading account assets supporting insurance liabilities, net		177			10			53			234			4
	(192	)		(144	)		-33%	Change in experience-rated contractholder liabilities due to asset value changes		(178	)		68			(47	)		(246	)		54
	10			(9	)		211%	Divested businesses		—			24			39			1			9
	13			(114	)		111%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		19			(87	)		12			5			8

	261			(481	)		154%	Total reconciling items, before income taxes		19			1,832			(539	)		(1,844	)		2,105
	416			(136	)		406%	Income taxes, not applicable to adjusted operating income		10			736			(187	)		(112	)		528

	(155	)		(345	)		55%	Total reconciling items, after income taxes		9			1,096			(352	)		(1,732	)		1,577

	1,213			1,228			-1%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		782			1,514			509			(991	)		2,204
	(13	)		60			-122%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(19	)		57			(7	)		(4	)		(9	)

	1,200			1,288			-7%	Income (loss) from continuing operations attributable to Prudential Financial, Inc.		763			1,571			502			(995	)		2,195
	26			54			-52%	Earnings attributable to noncontrolling interests		29			10			8			11			15

	1,226			1,342			-9%	Income from continuing operations (after-tax) of Financial Services Businesses		792			1,581			510			(984	)		2,210
	15			30			-50%	Income (loss) from discontinued operations, net of taxes		16			(9	)		14			7			8

	1,241			1,372			-10%	Net income (loss) of Financial Services Businesses		808			1,572			524			(977	)		2,218
	26			54			-52%	Less: Income attributable to noncontrolling interests		29			10			8			11			15

	1,215			1,318			-8%	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		779			1,562			516			(988	)		2,203

	10.1%			12.1%				Operating Return on Average Equity (based on adjusted operating income)		11.7%			6.2%			12.4%			11.1%			9.3%

								*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
	1,215			1,318				Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		779			1,562			516			(988	)		2,203
	16			32				Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		10			32			82			21			(5	)

	1,231			1,350				Consolidated net income (loss) attributable to Prudential Financial, Inc.		789			1,594			598			(967	)		2,198

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

						Earnings per share of Common Stock (diluted) (1):
	2.90			3.19		Financial Services Businesses after-tax adjusted operating income		1.57			0.87			1.79			1.56			1.34

						Reconciling items:
	0.40			(0.76	)	Realized investment gains (losses), net, and related charges and adjustments		—			3.71			(1.25	)		(3.85	)		4.29
	0.50			0.32		Investment gains on trading account assets supporting insurance liabilities, net		0.36			0.02			0.11			0.49			0.01
	(0.40	)		(0.29	)	Change in experience-rated contractholder liabilities due to asset value changes		(0.36	)		0.14			(0.10	)		(0.52	)		0.11
	0.02			(0.02	)	Divested businesses		—			0.05			0.08			—			0.02
	—			0.01		Difference in earnings allocated to participating unvested share-based payment awards		—			(0.03	)		—			0.02			(0.03	)

	0.52			(0.74	)	Total reconciling items, before income taxes		—			3.89			(1.16	)		(3.86	)		4.40
	0.87			(0.17	)	Income taxes, not applicable to adjusted operating income		0.02			1.57			(0.41	)		(0.20	)		1.12

	(0.35	)		(0.57	)	Total reconciling items, after income taxes		(0.02	)		2.32			(0.75	)		(3.66	)		3.28

	2.55			2.62		Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		1.55			3.19			1.04			(2.10	)		4.62
	0.03			0.06		Income (loss) from discontinued operations, net of taxes		0.03			(0.01	)		0.03			0.01			0.02

	2.58			2.68		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		1.58			3.18			1.07			(2.09	)		4.64


	467.7			485.4		Weighted average number of outstanding Common shares (basic)		486.0			481.2			469.2			469.2			466.1
	475.5			494.4		Weighted average number of outstanding Common shares (diluted)		494.8			489.3			477.0			477.5			473.5

	16			17		Direct equity adjustments for earnings per share calculation		8			8			(1	)		8			8
	9			9		Earnings related to interest, net of tax, on exchangeable surplus notes		5			4			4			4			5

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	14			21		Financial Services Businesses after-tax adjusted operating income		10			6			11			8			6
	12			18		Income from continuing operations (after-tax) of Financial Services Businesses		11			20			9			—			20

(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

Second Quarter 2012

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

				*Financial Services Businesses Capitalization Data (1):*
				Senior Debt:
				Short-term debt		2,152		2,899		2,336		3,655		3,226
				Long-term debt		21,309		20,651		21,353		21,110		21,030
				Junior Subordinated Long-Term Debt		1,519		1,519		1,519		1,519		1,519

				Attributed Equity:
				Including accumulated other comprehensive income		30,754		32,901		32,817		33,509		36,559
				Excluding total accumulated other comprehensive income		27,052		27,916		27,567		26,436		28,460

				Total Capitalization:
				Including accumulated other comprehensive income		53,582		55,071		55,689		56,138		59,108
				Excluding total accumulated other comprehensive income		49,880		50,086		50,439		49,065		51,009

				Book value per share of Common Stock:
				Including accumulated other comprehensive income		62.28		68.77		69.07		70.80		78.07
				Excluding total accumulated other comprehensive income		54.78		58.35		58.02		55.85		60.77

				Number of diluted shares at end of period (2)		493.8		478.4		475.1		473.3		468.3

				*Common Stock Price Range (based on closing price):*
	64.65		67.32	High		64.62		65.26		57.32		64.65		64.50
	44.74		57.77	Low		57.77		43.93		43.91		51.30		44.74
	48.43		63.59	Close		63.59		46.86		50.12		63.39		48.43

				*Common Stock market capitalization (1)*		30,912		22,113		23,456		29,667		22,472

(1)	As of end of period.

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

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

OPERATIONS HIGHLIGHTS


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

				*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		256.2		258.8		269.1		283.2		286.4
				Retail customers		109.3		110.1		117.9		123.6		130.2
				General account		218.0		230.5		232.1		230.0		233.6

				Total Investment Management and Advisory Services		583.5		599.4		619.1		636.8		650.2
				Non-proprietary assets under management		167.3		136.1		152.2		176.8		176.2

				Total managed by U.S. Retirement Solutions and Investment Management Division		750.8		735.5		771.3		813.6		826.4
				Managed by U.S. Individual Life and Group Insurance Division		13.5		13.6		13.8		14.8		13.6
				Managed by International Insurance Division		118.9		122.2		115.6		114.5		121.1

				Total assets under management		883.2		871.3		900.7		942.9		961.1
				Client assets under administration		89.4		82.6		85.7		89.2		87.1

				Total assets under management and administration		972.6		953.9		986.4		1,032.1		1,048.2


				Assets managed or administered for customers outside of the United States at end of period		208.3		213.2		208.9		214.6		223.0

				*Distribution Representatives (1):*
				Prudential Agents		2,551		2,571		2,529		2,603		2,607
				International Life Planners		6,568		6,699		6,792		6,819		6,806
				Gibraltar Life Consultants		13,353		12,936		12,791		12,219		12,031

	50		50	*Prudential Agent productivity ($ thousands)*		50		52		64		45		54

(1)	As of end of period.

(2)	At fair market value.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

								Revenues (1):
	12,912			10,314			25%	Premiums		5,497			5,413			5,645			6,100			6,812
	2,163			2,020			7%	Policy charges and fee income		1,038			979			1,033			1,078			1,085
	5,094			4,829			5%	Net investment income		2,525			2,536			2,552			2,532			2,562
	1,887			2,083			-9%	Asset management fees, commissions and other income		1,039			956			1,038			941			946

	22,056			19,246			15%	Total revenues		10,099			9,884			10,268			10,651			11,405


								Benefits and Expenses (1):
	12,142			9,804			24%	Insurance and annuity benefits		5,160			5,419			5,047			5,614			6,528
	1,919			1,763			9%	Interest credited to policyholders’ account balances		934			1,040			953			948			971
	620			569			9%	Interest expense		290			296			299			308			312
	(1,745	)		(1,511	)		-15%	Deferral of acquisition costs		(768	)		(788	)		(770	)		(824	)		(921	)
	928			786			18%	Amortization of acquisition costs		426			411			381			412			516
	6,348			5,687			12%	General and administrative expenses		3,005			2,978			3,188			3,178			3,170

	20,212			17,098			18%	Total benefits and expenses		9,047			9,356			9,098			9,636			10,576

	1,844			2,148			-14%	Adjusted operating income before income taxes		1,052			528			1,170			1,015			829


								Reconciling items:
	342			(210	)		263%	Realized investment gains (losses), net, and related adjustments		155			3,385			(672	)		(2,716	)		3,058
	(150	)		(164	)		9%	Related charges		(154	)		(1,568	)		76			878			(1,028	)

	192			(374	)		151%	Total realized investment gains (losses), net, and related charges and adjustments		1			1,817			(596	)		(1,838	)		2,030

	238			160			49%	Investment gains on trading account assets supporting insurance liabilities, net		177			10			53			234			4
	(192	)		(144	)		-33%	Change in experience-rated contractholder liabilities due to asset value changes		(178	)		68			(47	)		(246	)		54
	10			(9	)		211%	Divested businesses		—			24			39			1			9
	13			(114	)		111%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		19			(87	)		12			5			8

	261			(481	)		154%	Total reconciling items, before income taxes		19			1,832			(539	)		(1,844	)		2,105


	2,105			1,667			26%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		1,071			2,360			631			(829	)		2,934
	892			439			103%	Income tax expense		289			846			122			162			730

	1,213			1,228			-1%	Income (loss) from continuing operations before equity in earnings of operating joint ventures		782			1,514			509			(991	)		2,204

(1)

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

Page 5

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $186,022; $195,462; $197,784; $195,582; $202,699)		192,902		205,102		208,132		208,419		217,232
Fixed maturities, held to maturity, at amortized cost (fair value $5,342; $5,484; $5,354; $5,006; $5,041)		5,091		5,195		5,107		4,775		4,771
Trading account assets supporting insurance liabilities, at fair value		18,563		19,535		19,481		19,679		19,729
Other trading account assets, at fair value		3,616		6,237		5,228		4,860		5,349
Equity securities, available for sale, at fair value (cost $5,517; $4,280; $4,165; $4,041; $4,188)		6,022		4,561		4,413		4,629		4,651
Commercial mortgage and other loans		24,712		25,315		26,391		26,205		26,643
Policy loans		6,046		6,176		6,263		6,191		6,291
Other long-term investments		6,239		5,919		5,830		5,517		5,655
Short-term investments		6,497		6,764		8,593		7,196		8,253

Total investments		269,688		284,804		289,438		287,471		298,574
Cash and cash equivalents		13,234		14,734		13,201		12,980		13,390
Accrued investment income		2,111		2,147		2,177		2,147		2,180
Deferred policy acquisition costs		12,500		11,658		12,056		13,008		12,612
Other assets		20,651		16,626		15,748		15,641		14,964
Separate account assets		222,892		207,366		218,380		236,567		235,268

Total assets		541,076		537,335		551,000		567,814		576,988


Liabilities:
Future policy benefits		108,959		118,179		119,248		116,721		123,555
Policyholders’ account balances		125,501		129,074		129,074		128,038		128,423
Securities sold under agreements to repurchase		2,830		2,555		3,118		3,806		4,656
Cash collateral for loaned securities		2,415		2,334		2,254		2,226		2,247
Income taxes		5,541		7,308		6,993		8,094		9,073
Senior short-term debt		2,152		2,899		2,336		3,655		3,226
Senior long-term debt		21,309		20,651		21,353		21,110		21,030
Junior subordinated long-term debt		1,519		1,519		1,519		1,519		1,519
Other liabilities		16,611		11,894		13,320		11,973		10,823
Separate account liabilities		222,892		207,366		218,380		236,567		235,268

Total liabilities		509,729		503,779		517,595		533,709		539,820


Attributed Equity:
Accumulated other comprehensive income		3,702		4,985		5,250		7,073		8,099
Other attributed equity		27,052		27,916		27,567		26,436		28,460

Total attributed equity		30,754		32,901		32,817		33,509		36,559

Noncontrolling Interest		593		655		588		596		609

Total Equity		31,347		33,556		33,405		34,105		37,168

Total liabilities and equity		541,076		537,335		551,000		567,814		576,988

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended June 30, 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		6,812			248			1,407			5,164			(7	)
Policy charges and fee income		1,085			556			389			150			(10	)
Net investment income		2,562			985			437			1,035			105
Asset management fees, commissions and other income		946			904			119			82			(159	)

Total revenues		11,405			2,693			2,352			6,431			(71	)


Benefits and Expenses (1):
Insurance and annuity benefits		6,528			611			1,576			4,303			38
Interest credited to policyholders’ account balances		971			568			139			270			(6	)
Interest expense		312			39			81			(1	)		193
Deferral of acquisition costs		(921	)		(288	)		(112	)		(542	)		21
Amortization of acquisition costs		516			168			81			284			(17	)
General and administrative expenses		3,170			1,293			480			1,436			(39	)

Total benefits and expenses		10,576			2,391			2,245			5,750			190


Adjusted operating income (loss) before income taxes		829			302			107			681			(261	)


	Quarter Ended June 30, 2011
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		5,497			244			1,361			3,903			(11	)
Policy charges and fee income		1,038			520			384			143			(9	)
Net investment income		2,525			1,034			418			961			112
Asset management fees, commissions and other income		1,039			1,039			86			41			(127	)

Total revenues		10,099			2,837			2,249			5,048			(35	)


Benefits and Expenses (1):
Insurance and annuity benefits		5,160			530			1,453			3,170			7
Interest credited to policyholders’ account balances		934			563			130			249			(8	)
Interest expense		290			35			48			1			206
Deferral of acquisition costs		(768	)		(249	)		(92	)		(446	)		19
Amortization of acquisition costs		426			141			82			219			(16	)
General and administrative expenses		3,005			1,212			444			1,355			(6	)

Total benefits and expenses		9,047			2,232			2,065			4,548			202


Adjusted operating income (loss) before income taxes		1,052			605			184			500			(237	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Six Months Ended June 30, 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		12,912			364			2,796			9,769			(17	)
Policy charges and fee income		2,163			1,100			780			302			(19	)
Net investment income		5,094			1,981			869			2,058			186
Asset management fees, commissions and other income		1,887			1,852			230			151			(346	)

Total revenues		22,056			5,297			4,675			12,280			(196	)


Benefits and Expenses (1):
Insurance and annuity benefits		12,142			862			3,179			8,055			46
Interest credited to policyholders’ account balances		1,919			1,112			272			548			(13	)
Interest expense		620			74			158			—			388
Deferral of acquisition costs		(1,745	)		(553	)		(218	)		(1,012	)		38
Amortization of acquisition costs		928			265			145			544			(26	)
General and administrative expenses		6,348			2,537			958			2,858			(5	)

Total benefits and expenses		20,212			4,297			4,494			10,993			428


Adjusted operating income (loss) before income taxes		1,844			1,000			181			1,287			(624	)


	Six Months Ended June 30, 2011
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		10,314			455			2,721			7,159			(21	)
Policy charges and fee income		2,020			1,012			769			256			(17	)
Net investment income		4,829			2,078			825			1,726			200
Asset management fees, commissions and other income		2,083			1,944			165			228			(254	)

Total revenues		19,246			5,489			4,480			9,369			(92	)


Benefits and Expenses (1):
Insurance and annuity benefits		9,804			956			2,963			5,876			9
Interest credited to policyholders’ account balances		1,763			1,113			258			410			(18	)
Interest expense		569			69			93			1			406
Deferral of acquisition costs		(1,511	)		(610	)		(176	)		(767	)		42
Amortization of acquisition costs		786			255			155			405			(29	)
General and administrative expenses		5,687			2,501			866			2,316			4

Total benefits and expenses		17,098			4,284			4,159			8,241			414


Adjusted operating income (loss) before income taxes		2,148			1,205			321			1,128			(506	)

(1)

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of June 30, 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		298,574		96,783		38,508		156,902		6,381
Deferred policy acquisition costs		12,612		2,822		3,625		6,407		(242	)
Other assets		30,534		9,499		5,144		12,631		3,260
Separate account assets		235,268		199,685		36,617		1,286		(2,320	)

Total assets		576,988		308,789		83,894		177,226		7,079


Liabilities:
Future policy benefits		123,555		20,836		11,806		90,518		395
Policyholders’ account balances		128,423		56,822		17,522		54,583		(504	)
Debt		25,775		5,644		7,388		58		12,685
Other liabilities		26,799		9,021		4,955		11,924		899
Separate account liabilities		235,268		199,685		36,617		1,286		(2,320	)

Total liabilities		539,820		292,008		78,288		158,369		11,155


Attributed Equity:
Accumulated other comprehensive income (loss)		8,099		2,244		1,782		5,367		(1,294	)
Other attributed equity		28,460		13,956		3,824		13,453		(2,773	)

Total attributed equity		36,559		16,200		5,606		18,820		(4,067	)

Noncontrolling Interest		609		581		—		37		(9	)

Total Equity		37,168		16,781		5,606		18,857		(4,076	)


Total liabilities and equity		576,988		308,789		83,894		177,226		7,079


	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 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of June 30, 2012								As of December 31, 2011
	Senior debt				Junior Subordinated Long-term Debt				Senior debt				Junior Subordinated Long-term Debt
	Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt		Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt
Financial Services Businesses
*Borrowings by use of proceeds:*
Capital Debt		667		9,099		1,519		11,285		450		9,255		1,519		11,224
Investment related		1,707		7,563		—		9,270		926		7,971		—		8,897
Securities business related		666		564		—		1,230		857		661		—		1,518
Specified other businesses		186		3,804		—		3,990		103		3,466		—		3,569
Limited recourse and non-recourse borrowing		—		—		—		—		—		—		—		—

Total debt - Financial Services Businesses		3,226		21,030		1,519		25,775		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 June 30, 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		9,757		1,041		487		11,285		9,662		1,040		522		11,224
Investment related		5,116		938		3,216		9,270		4,970		710		3,217		8,897
Securities business related		1,020		136		74		1,230		1,086		422		10		1,518
Specified other businesses		2,279		1,711		—		3,990		2,834		735		—		3,569
Limited recourse and non-recourse borrowing		—		—		—		—		—		—		—		—

Total debt - Financial Services Businesses		18,172		3,826		3,777		25,775		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 June 30, 2012 and December 31, 2011 respectively.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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

(in millions)


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

								Revenues (1):
	364			455			-20%	Premiums		244			189			257			116			248
	1,100			1,012			9%	Policy charges and fee income		520			519			512			544			556
	1,981			2,078			-5%	Net investment income		1,034			999			1,010			996			985
	1,852			1,944			-5%	Asset management fees, commissions and other income		1,039			882			963			948			904

	5,297			5,489			-3%	Total revenues		2,837			2,589			2,742			2,604			2,693


								Benefits and Expenses (1):
	862			956			-10%	Insurance and annuity benefits		530			698			416			251			611
	1,112			1,113			0%	Interest credited to policyholders’ account balances		563			623			549			544			568
	74			69			7%	Interest expense		35			35			35			35			39
	(553	)		(610	)		9%	Deferral of acquisition costs		(249	)		(243	)		(240	)		(265	)		(288	)
	265			255			4%	Amortization of acquisition costs		141			249			98			97			168
	2,537			2,501			1%	General and administrative expenses		1,212			1,185			1,216			1,244			1,293

	4,297			4,284			0%	Total benefits and expenses		2,232			2,547			2,074			1,906			2,391

	1,000			1,205			-17%	Adjusted operating income before income taxes		605			42			668			698			302

(1)

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

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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

(in millions)


	Six Months Ended June 30, 2012												Quarter Ended June 30, 2012
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management			Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		364			54			310			—			248			27			221			—
Policy charges and fee income		1,100			1,000			100			—			556			506			50			—
Net investment income		1,981			388			1,556			37			985			191			777			17
Asset management fees, commissions and other income		1,852			484			383			985			904			244			194			466

Total revenues		5,297			1,926			2,349			1,022			2,693			968			1,242			483


Benefits and Expenses (1):
Insurance and annuity benefits		862			133			729			—			611			178			433			—
Interest credited to policyholders’ account balances		1,112			259			853			—			568			142			426			—
Interest expense		74			56			10			8			39			28			6			5
Deferral of acquisition costs		(553	)		(528	)		(12	)		(13	)		(288	)		(274	)		(8	)		(6	)
Amortization of acquisition costs		265			243			10			12			168			157			5			6
General and administrative expenses		2,537			1,235			456			846			1,293			630			233			430

Total benefits and expenses		4,297			1,398			2,046			853			2,391			861			1,095			435

Adjusted operating income before income taxes		1,000			528			303			169			302			107			147			48


	Six Months Ended June 30, 2011												Quarter Ended June 30, 2011
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management			Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		455			70			385			—			244			31			213			—
Policy charges and fee income		1,012			918			94			—			520			475			45			—
Net investment income		2,078			398			1,610			70			1,034			197			805			32
Asset management fees, commissions and other income		1,944			445			365			1,134			1,039			230			185			624

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


Benefits and Expenses (1):
Insurance and annuity benefits		956			170			786			—			530			110			420			—
Interest credited to policyholders’ account balances		1,113			272			841			—			563			136			427			—
Interest expense		69			55			7			7			35			28			3			4
Deferral of acquisition costs		(610	)		(580	)		(17	)		(13	)		(249	)		(235	)		(8	)		(6	)
Amortization of acquisition costs		255			214			29			12			141			131			4			6
General and administrative expenses		2,501			1,219			465			817			1,212			556			231			425

Total benefits and expenses		4,284			1,350			2,111			823			2,232			726			1,077			429

Adjusted operating income before income taxes		1,205			481			343			381			605			207			171			227

(1)

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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

(in millions)


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

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	109,743			102,348		Beginning total account value		109,969			112,202			102,879			109,743			120,276
	10,287			11,346		Sales		4,531			4,472			4,406			4,943			5,344
	(3,302	)		(3,900	)	Surrenders and withdrawals		(1,933	)		(1,623	)		(1,526	)		(1,676	)		(1,626	)

	6,985			7,446		Net sales		2,598			2,849			2,880			3,267			3,718
	(573	)		(544	)	Benefit payments		(290	)		(272	)		(276	)		(285	)		(288	)

	6,412			6,902		Net flows		2,308			2,577			2,604			2,982			3,430
	5,429			4,045		Change in market value, interest credited, and other		493			(11,330	)		4,835			8,171			(2,742	)
	(1,258	)		(1,093	)	Policy charges		(568	)		(570	)		(575	)		(620	)		(638	)

	120,326			112,202		Ending total account value		112,202			102,879			109,743			120,276			120,326


						Fixed Annuities:
	3,792			3,837		Beginning total account value		3,841			3,825			3,810			3,792			3,778
	30			38		Sales		20			15			16			16			14
	(77	)		(93	)	Surrenders and withdrawals		(45	)		(46	)		(44	)		(43	)		(34	)

	(47	)		(55	)	Net redemptions		(25	)		(31	)		(28	)		(27	)		(20	)
	(145	)		(132	)	Benefit payments		(65	)		(67	)		(77	)		(83	)		(62	)

	(192	)		(187	)	Net flows		(90	)		(98	)		(105	)		(110	)		(82	)
	169			176		Interest credited and other		74			83			87			96			73
	(1	)		(1	)	Policy charges		—			—			—			—			(1	)

	3,768			3,825		Ending total account value		3,825			3,810			3,792			3,778			3,768


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (1):
	1,563			1,755		Insurance Agents		758			736			732			764			799
	2,532			2,343		Wirehouses		929			1,040			1,180			1,233			1,299
	4,441			5,396		Independent Financial Planners		2,057			1,922			1,822			2,103			2,338
	1,781			1,890		Bank Distribution		807			789			688			859			922

	10,317			11,384		Total		4,551			4,487			4,422			4,959			5,358

(1)	Amounts represent gross sales.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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

(in millions)


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

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	12,830			13,223		Beginning balance		12,621			12,185			12,971			12,830			12,277
	1,210			912		Premiums and deposits		391			489			505			548			662
	(531	)		(640	)	Surrenders and withdrawals		(294	)		(295	)		(179	)		(278	)		(253	)

	679			272		Net sales		97			194			326			270			409
	(185	)		(173	)	Benefit payments		(85	)		(82	)		(92	)		(101	)		(84	)

	494			99		Net flows		12			112			234			169			325
	207			206		Interest credited and other		100			102			104			96			111
	(1,175	)		(1,342	)	Net transfers (to) from separate account		(548	)		572			(479	)		(818	)		(357	)
	(1	)		(1	)	Policy charges		—			—			—			—			(1	)

	12,355			12,185		Ending balance		12,185			12,971			12,830			12,277			12,355


						Account Values in Separate Account:
	100,705			92,962		Beginning balance		101,189			103,842			93,718			100,705			111,777
	9,107			10,472		Premiums and deposits		4,160			3,998			3,917			4,411			4,696
	(2,848	)		(3,353	)	Surrenders and withdrawals		(1,684	)		(1,374	)		(1,391	)		(1,441	)		(1,407	)

	6,259			7,119		Net sales		2,476			2,624			2,526			2,970			3,289
	(533	)		(503	)	Benefit payments		(270	)		(257	)		(261	)		(267	)		(266	)

	5,726			6,616		Net flows		2,206			2,367			2,265			2,703			3,023
	5,391			4,015		Change in market value, interest credited and other		467			(11,349	)		4,818			8,171			(2,780	)
	1,175			1,342		Net transfers (to) from general account		548			(572	)		479			818			357
	(1,258	)		(1,093	)	Policy charges		(568	)		(570	)		(575	)		(620	)		(638	)

	111,739			103,842		Ending balance		103,842			93,718			100,705			111,777			111,739

(1)

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

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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

(in millions)


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

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

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		9,667		8,844		8,771		8,724		8,368
Guaranteed minimum withdrawal benefits		1,215		1,018		1,031		1,066		984
Guaranteed minimum income benefits		4,261		3,580		3,685		3,874		3,603
Guaranteed minimum withdrawal & income benefits		70,349		66,080		72,154		81,156		83,110

Total		85,492		79,522		85,641		94,820		96,065


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		68,273		64,769		70,341		78,622		80,811
Account Values without Auto-Rebalancing Feature		17,219		14,753		15,300		16,198		15,254

Total		85,492		79,522		85,641		94,820		96,065


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		1,438		4,996		4,238		2,650		3,938
Net Amount at Risk without Auto-Rebalancing Feature		1,622		2,934		2,361		1,652		2,008

Total		3,060		7,930		6,599		4,302		5,946

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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

(in millions)


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

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

Variable Annuity Account Values by Death Benefit Features
Return of net deposits:
Account value		78,748		72,971		78,334		86,442		87,311
Net amount at risk		918		3,238		2,083		963		1,390
Minimum return, anniversary contract value, or maximum contract value:
Account value		30,191		27,022		28,414		30,685		30,037
Net amount at risk		3,958		6,751		5,699		4,173		4,975

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		68,273		64,769		70,341		78,622		80,811
Account Values without Auto-Rebalancing Feature		40,666		35,224		36,407		38,505		36,537

Total		108,939		99,993		106,748		117,127		117,348


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		591		3,042		2,154		995		1,596
Net Amount at Risk without Auto-Rebalancing Feature		4,285		6,947		5,628		4,141		4,769

Total		4,876		9,989		7,782		5,136		6,365

(1)	At end of period.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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

(in millions)


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

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	139,430			141,313		Beginning total account value		145,977			146,580			134,198			139,430			145,991
	9,009			8,976		Deposits and sales		4,128			3,966			3,879			4,646			4,363
	(10,774	)		(9,141	)	Withdrawals and benefits		(4,214	)		(4,126	)		(5,893	)		(7,103	)		(3,671	)
	4,740			5,432		Change in market value, interest credited, interest income and other activity (1)		689			(12,222	)		7,246			9,018			(4,278	)

	142,405			146,580		Ending total account value		146,580			134,198			139,430			145,991			142,405


	(1,765	)		(165	)	Net additions (withdrawals)		(86	)		(160	)		(2,014	)		(2,457	)		692


						Stable value account values included above		39,828			40,889			41,142			41,169			41,634

						Institutional Investment Products:
	90,089			64,183		Beginning total account value		68,892			74,131			80,513			90,089			93,853
	12,856			11,377		Additions		5,592			5,571			10,825			4,399			8,457
	(4,370	)		(2,565	)	Withdrawals and benefits (2)		(1,437	)		(1,501	)		(2,084	)		(1,538	)		(2,832	)
	2,490			1,672		Change in market value, interest credited and interest income		1,190			2,176			733			928			1,562
	1,378			(536	)	Other (3)		(106	)		136			102			(25	)		1,403

	102,443			74,131		Ending total account value		74,131			80,513			90,089			93,853			102,443


	8,486			8,812		Net additions		4,155			4,070			8,741			2,861			5,625

(1)

Includes $(1.4) billion for the three and six months ended June 30, 2012 representing the divestiture of bank deposits previously held by Prudential Bank & Trust, as a result of the company’s decision to limit its operations to trust services. Also 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 $(18) million, $(16) million, $(10) million, $(7) million and $(893) million for the three months ended June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012, and June 30, 2012 respectively, and $(900) million and $(52) million for the six months ended June 30, 2012 and 2011, 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 $(131) million and $(13) million for the three months ended June 30, 2012 and 2011, respectively, and $(131) million and $(415) million for the six months ended June 30, 2012 and 2011, respectively. “Other” activity also includes $18 million, $16 million, $10 million, $7 million and $893 million for the three months ended June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012, and June 30, 2012 respectively, and $900 million and $52 million for the six months ended June 30, 2012 and 2011, 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 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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			2Q		3Q		4Q		1Q		2Q

						Analysis of revenues by type:
	775		724		7%	Asset management fees		368		367		376		386		389
	4		206		-98%	Other related revenues		149		35		98		30		(26	)
	243		274		-11%	Service, distribution and other revenues		139		111		120		123		120

	1,022		1,204		-15%	Total Asset Management segment revenues		656		513		594		539		483



						Analysis of asset management fees by source:
	373		352		6%	Institutional customers		178		178		184		187		186
	233		212		10%	Retail customers		108		107		107		115		118
	169		160		6%	General account		82		82		85		84		85

	775		724		7%	Total asset management fees		368		367		376		386		389


Supplementary Assets Under Management Information (in billions):
	June 30, 2012
	Equity		Fixed Income		Real Estate		Total
Institutional customers		45.8		210.5		30.1		286.4
Retail customers		79.9		49.0		1.3		130.2
General account		4.4		227.7		1.5		233.6

Total		130.1		487.2		32.9		650.2


	June 30, 2011
	Equity		Fixed Income		Real Estate		Total
Institutional customers		51.1		178.5		26.6		256.2
Retail customers		78.6		29.1		1.6		109.3
General account		4.3		212.4		1.3		218.0

Total		134.0		420.0		29.5		583.5

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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				2Q			3Q			4Q			1Q			2Q

						Institutional Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	231.5			197.6		Beginning assets under management		209.2			218.9			221.6			231.5			244.6
	24.8			23.2		Additions		10.8			10.6			14.2			13.9			10.9
	(19.4	)		(12.3	)	Withdrawals		(5.8	)		(8.5	)		(10.5	)		(8.5	)		(10.9	)
	11.4			10.1		Change in market value		4.7			0.8			5.9			7.6			3.8
	0.2			(0.1	)	Net money market flows		—			(0.2	)		0.3			0.1			0.1
	0.1			0.4		Other (1)		—			—			—			—			0.1

	248.6			218.9		Ending assets under management		218.9			221.6			231.5			244.6			248.6
	37.8			37.3		Affiliated institutional assets under management		37.3			37.2			37.6			38.6			37.8

	286.4			256.2		Total assets managed for institutional customers at end of period		256.2			258.8			269.1			283.2			286.4


	5.4			10.9		Net institutional additions, excluding money market activity		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		66.2			66.8			58.9			64.2			75.0
	17.7			11.1		Additions		5.0			6.2			6.6			8.7			9.0
	(10.7	)		(9.3	)	Withdrawals		(5.2	)		(5.7	)		(5.4	)		(5.5	)		(5.2	)
	4.2			3.8		Change in market value		0.8			(8.4	)		4.1			7.6			(3.4	)
	—			—		Net money market flows		—			—			—			—			—
	—			(0.4	)	Other (2)		—			—			—			—			—

	75.4			66.8		Ending assets under management		66.8			58.9			64.2			75.0			75.4
	54.8			42.5		Affiliated retail assets under management		42.5			51.2			53.7			48.6			54.8

	130.2			109.3		Total assets managed for retail customers at end of period		109.3			110.1			117.9			123.6			130.2


	7.0			1.8		Net retail additions (withdrawals), excluding money market activity		(0.2	)		0.5			1.2			3.2			3.8

(1)	“Other” activity represents transfers from the Retirement Segment as a result of changes in client contract form.

(2)	Amounts for the six months ended June 2011 represent a reclassification of certain fund balances to affiliated retail assets under management.

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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

(in millions)


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

								Revenues (1):
	2,796			2,721			3%	Premiums		1,361			1,382			1,375			1,389			1,407
	780			769			1%	Policy charges and fee income		384			319			384			391			389
	869			825			5%	Net investment income		418			421			418			432			437
	230			165			39%	Asset management fees, commissions and other income		86			81			108			111			119

	4,675			4,480			4%	Total revenues		2,249			2,203			2,285			2,323			2,352


								Benefits and Expenses (1):
	3,179			2,963			7%	Insurance and annuity benefits		1,453			1,538			1,468			1,603			1,576
	272			258			5%	Interest credited to policyholders’ account balances		130			134			135			133			139
	158			93			70%	Interest expense		48			48			73			77			81
	(218	)		(176	)		-24%	Deferral of acquisition costs		(92	)		(94	)		(97	)		(106	)		(112	)
	145			155			-6%	Amortization of acquisition costs		82			(50	)		53			64			81
	958			866			11%	General and administrative expenses		444			454			460			478			480

	4,494			4,159			8%	Total benefits and expenses		2,065			2,030			2,092			2,249			2,245


	181			321			-44%	Adjusted operating income before income taxes		184			173			193			74			107

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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

(in millions)


	Six Months Ended June 30, 2012									Quarter Ended June 30, 2012
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance			Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		2,796			358			2,438			1,407			183			1,224
Policy charges and fee income		780			540			240			389			275			114
Net investment income		869			510			359			437			256			181
Asset management fees, commissions and other income		230			171			59			119			89			30

Total revenues		4,675			1,579			3,096			2,352			803			1,549


Benefits and Expenses (1):
Insurance and annuity benefits		3,179			644			2,535			1,576			350			1,226
Interest credited to policyholders’ account balances		272			158			114			139			81			58
Interest expense		158			155			3			81			78			3
Deferral of acquisition costs		(218	)		(189	)		(29	)		(112	)		(100	)		(12	)
Amortization of acquisition costs		145			132			13			81			76			5
General and administrative expenses		958			506			452			480			257			223

Total benefits and expenses		4,494			1,406			3,088			2,245			742			1,503


Adjusted operating income before income taxes		181			173			8			107			61			46


	Six Months Ended June 30, 2011									Quarter Ended June 30, 2011
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance			Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		2,721			355			2,366			1,361			183			1,178
Policy charges and fee income		769			538			231			384			274			110
Net investment income		825			481			344			418			245			173
Asset management fees, commissions and other income		165			114			51			86			61			25

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


Benefits and Expenses (1):
Insurance and annuity benefits		2,963			565			2,398			1,453			268			1,185
Interest credited to policyholders’ account balances		258			145			113			130			74			56
Interest expense		93			93			—			48			48			—
Deferral of acquisition costs		(176	)		(150	)		(26	)		(92	)		(78	)		(14	)
Amortization of acquisition costs		155			144			11			82			77			5
General and administrative expenses		866			458			408			444			239			205

Total benefits and expenses		4,159			1,255			2,904			2,065			628			1,437


Adjusted operating income before income taxes		321			233			88			184			135			49

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

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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				2Q			3Q			4Q			1Q			2Q

					ANNUALIZED NEW BUSINESS PREMIUMS (1) :

	9		13		Variable life		6			8			4			4			5
	76		45		Universal life		22			21			29			34			42
	85		75		Term life		40			41			42			41			44

	170		133		Total		68			70			75			79			91


					ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	44		41		Prudential Agents		21			21			22			20			24
	126		92		Third party distribution		47			49			53			59			67

	170		133		Total		68			70			75			79			91


					ACCOUNT VALUE ACTIVITY:

					*Policyholders’ Account Balances (2):*
	9,500		8,773		Beginning balance		8,974			9,086			9,364			9,500			9,792
	982		776		Premiums and deposits		374			401			454			480			502
	(416)		(397	)	Surrenders and withdrawals		(217	)		(184	)		(199	)		(196	)		(220	)

	566		379		Net sales		157			217			255			284			282
	(122)		(100	)	Benefit payments		(49	)		(70	)		(51	)		(57	)		(65	)

	444		279		Net flows		108			147			204			227			217
	116		82		Interest credited and other		20			126			(44	)		88			28
	148		135		Net transfers from separate account		74			93			59			70			78
	(187)		(183	)	Policy charges		(90	)		(88	)		(83	)		(93	)		(94	)

	10,021		9,086		Ending balance		9,086			9,364			9,500			9,792			10,021


					*Separate Account Liabilities:*
	16,491		17,156		Beginning balance		17,749			17,544			15,506			16,491			17,842
	419		435		Premiums and deposits		215			246			215			208			211
	(275)		(416	)	Surrenders and withdrawals		(255	)		(128	)		(150	)		(145	)		(130	)

	144		19		Net sales (redemptions)		(40	)		118			65			63			81
	(15)		(24	)	Benefit payments		(11	)		(5	)		(8	)		(7	)		(8	)

	129		(5	)	Net flows		(51	)		113			57			56			73
	968		867		Change in market value, interest credited and other		90			(1,890	)		1,151			1,530			(562	)
	(148)		(135	)	Net transfers to general account		(74	)		(93	)		(59	)		(70	)		(78	)
	(327)		(339	)	Policy charges		(170	)		(168	)		(164	)		(165	)		(162	)

	17,113		17,544		Ending balance		17,544			15,506			16,491			17,842			17,113


					FACE AMOUNT IN FORCE (3):

					Variable life		116,024			113,349			113,039			113,118			111,530
					Universal life		38,896			39,644			41,063			42,751			45,161
					Term life		466,129			471,453			477,235			483,890			491,724

					Total		621,049			624,446			631,337			639,759			648,415

(1)	Excludes corporate-owned life insurance.

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

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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			2Q		3Q		4Q		1Q		2Q

				Individual Life Insurance:

				Policy Surrender Experience:
	325		475	Cash value of surrenders		286		148		155		170		155
	2.7%		3.9%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		4.7%		2.5%		2.7%		2.8%		2.5%

				Death benefits per $1,000 of in force (1):
	5.16		4.45	Variable and universal life		3.73		5.00		4.18		4.35		5.90
	1.75		1.09	Term life		1.06		1.21		0.99		1.42		2.08
	3.39		2.70	Total, Individual Life Insurance		2.34		3.03		2.49		2.86		3.89

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

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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

(dollar amounts in millions)


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

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	235		414	Group life		22			23			49			211			24
	143		138	Group disability (1)		30			29			37			102			41

	378		552	Total		52			52			86			313			65


				Future Policy Benefits (2):
				Group life		2,202			2,184			2,418			2,325			2,300
				Group disability (1)		1,621			1,676			1,751			1,896			1,993

				Total		3,823			3,860			4,169			4,221			4,293


				Policyholders’ Account Balances (2):
				Group life		7,075			7,027			7,127			7,188			7,310
				Group disability (1)		179			187			189			178			192

				Total		7,254			7,214			7,316			7,366			7,502


				Separate Account Liabilities (2):
				Group life		20,027			19,148			19,174			19,826			19,506
				Group disability (1)		—			—			—			—			—

				Total		20,027			19,148			19,174			19,826			19,506


				Group Life Insurance:
	2,079		2,112	Gross premiums, policy charges and fee income (3)		1,046			1,050			1,040			1,064			1,015
	1,979		2,002	Earned premiums, policy charges and fee income		992			1,064			999			990			989
	92.0%		91.4%	Benefits ratio		90.4	%		89.3	%		86.0	%		95.4	%		88.6	%
	9.3%		8.0%	Administrative operating expense ratio		7.9	%		8.5	%		8.8	%		8.9	%		9.8	%
				Persistency ratio		96.6	%		96.2	%		95.8	%		95.4	%		95.0	%

				Group Disability Insurance (1):
	714		605	Gross premiums, policy charges and fee income (3)		304			304			327			352			362
	699		595	Earned premiums, policy charges and fee income		296			299			323			350			349
	102.3%		95.6%	Benefits ratio		97.0	%		95.0	%		103.4	%		104.6	%		100.0	%
	20.6%		22.1%	Administrative operating expense ratio		22.4	%		21.7	%		21.4	%		21.6	%		19.6	%
				Persistency ratio		91.6	%		89.7	%		88.5	%		93.9	%		91.6	%

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

(2)	As of end of period.

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

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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

(in millions)


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

						DEFERRED POLICY ACQUISITION COSTS

						INDIVIDUAL ANNUITIES:
	2,390			3,019		Beginning balance		3,278			3,300			2,131			2,390			3,252
	528			580		Capitalization		235			230			228			254			274
	(243	)		(214	)	Amortization - operating results		(131	)		(233	)		(89	)		(86	)		(157	)
	(72	)		(67	)	Amortization - realized investment gains and losses		(81	)		(1,138	)		73			675			(747	)
	16			(2	)	Impact of unrealized (gains) or losses on AFS securities		(1	)		(28	)		47			19			(3	)
	—			(16	)	Other (1)		—			—			—			—			—

	2,619			3,300		Ending balance		3,300			2,131			2,390			3,252			2,619


						INDIVIDUAL LIFE INSURANCE:
	3,192			3,214		Beginning balance		3,225			3,187			3,263			3,192			3,242
	189			150		Capitalization		78			82			85			89			100
	(132	)		(144	)	Amortization - operating results		(77	)		56			(47	)		(56	)		(76	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	(11	)		(33	)	Impact of unrealized (gains) or losses on AFS securities		(39	)		(62	)		(109	)		17			(28	)

	3,238			3,187		Ending balance		3,187			3,263			3,192			3,242			3,238


						GROUP INSURANCE:
	371			344		Beginning balance		350			359			365			371			380
	29			26		Capitalization		14			12			12			17			12
	(13	)		(11	)	Amortization - operating results		(5	)		(6	)		(6	)		(8	)		(5	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	387			359		Ending balance		359			365			371			380			387


						DEFERRED SALES INDUCEMENTS

						INDIVIDUAL ANNUITIES:
	1,000			1,348		Beginning balance		1,431			1,415			915			1,000			1,306
	170			207		Capitalization		86			72			79			82			88
	(113	)		(116	)	Amortization - operating results		(60	)		(105	)		(41	)		(45	)		(68	)
	(33	)		(38	)	Amortization - realized investment gains and losses		(44	)		(455	)		29			262			(295	)
	8			(2	)	Impact of unrealized (gains) or losses on AFS securities		2			(12	)		18			7			1
	—			16		Other (1)		—			—			—			—			—

	1,032			1,415		Ending balance		1,415			915			1,000			1,306			1,032

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

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


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

								Revenues (1):
	9,769			7,159			36%	Premiums		3,903			3,838			4,018			4,605			5,164
	302			256			18%	Policy charges and fee income		143			150			146			152			150
	2,058			1,726			19%	Net investment income		961			1,026			1,025			1,023			1,035
	151			228			-34%	Asset management fees, commissions and other income		41			116			101			69			82

	12,280			9,369			31%	Total revenues		5,048			5,130			5,290			5,849			6,431


								Benefits and Expenses (1):
	8,055			5,876			37%	Insurance and annuity benefits		3,170			3,034			3,175			3,752			4,303
	548			410			34%	Interest credited to policyholders’ account balances		249			292			276			278			270
	—			1			-100%	Interest expense		1			—			—			1			(1	)
	(1,012	)		(767	)		-32%	Deferral of acquisition costs		(446	)		(467	)		(450	)		(470	)		(542	)
	544			405			34%	Amortization of acquisition costs		219			235			240			260			284
	2,858			2,316			23%	General and administrative expenses		1,355			1,376			1,454			1,422			1,436

	10,993			8,241			33%	Total benefits and expenses		4,548			4,470			4,695			5,243			5,750


	1,287			1,128			14%	Adjusted operating income before income taxes		500			660			595			606			681

(1)

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

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	Six Months Ended June 30, 2012									Quarter Ended June 30, 2012
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations			Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		9,769			3,516			6,253			5,164			1,690			3,474
Policy charges and fee income		302			188			114			150			94			56
Net investment income		2,058			767			1,291			1,035			381			654
Asset management fees, commissions and other income		151			38			113			82			27			55

Total revenues		12,280			4,509			7,771			6,431			2,192			4,239


Benefits and Expenses (1):
Insurance and annuity benefits		8,055			2,892			5,163			4,303			1,402			2,901
Interest credited to policyholders’ account balances		548			129			419			270			61			209
Interest expense		—			—			—			(1	)		—			(1	)
Deferral of acquisition costs		(1,012	)		(438	)		(574	)		(542	)		(226	)		(316	)
Amortization of acquisition costs		544			250			294			284			124			160
General and administrative expenses		2,858			920			1,938			1,436			457			979

Total benefits and expenses		10,993			3,753			7,240			5,750			1,818			3,932

Adjusted operating income before income taxes		1,287			756			531			681			374			307


	Six Months Ended June 30, 2011									Quarter Ended June 30, 2011
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations			Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		7,159			3,167			3,992			3,903			1,512			2,391
Policy charges and fee income		256			181			75			143			91			52
Net investment income		1,726			698			1,028			961			347			614
Asset management fees, commissions and other income		228			(5	)		233			41			(6	)		47

Total revenues		9,369			4,041			5,328			5,048			1,944			3,104


Benefits and Expenses (1):
Insurance and annuity benefits		5,876			2,618			3,258			3,170			1,229			1,941
Interest credited to policyholders’ account balances		410			118			292			249			56			193
Interest expense		1			—			1			1			—			1
Deferral of acquisition costs		(767	)		(369	)		(398	)		(446	)		(177	)		(269	)
Amortization of acquisition costs		405			225			180			219			112			107
General and administrative expenses		2,316			834			1,482			1,355			409			946

Total benefits and expenses		8,241			3,426			4,815			4,548			1,629			2,919

Adjusted operating income before income taxes		1,128			615			513			500			315			185

(1)

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

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


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

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	2,924		2,583	Japan, excluding Gibraltar Life		1,208		1,310		1,317		1,531		1,393
	6,367		4,067	Gibraltar Life		2,443		2,278		2,440		2,837		3,530
	780		765	All other countries		395		400		407		389		391

	10,071		7,415	Total		4,046		3,988		4,164		4,757		5,314


				Annualized new business premiums:
	621		400	Japan, excluding Gibraltar Life		176		209		207		305		316
	1,231		917	Gibraltar Life		544		570		555		469		762
	175		165	All other countries		82		82		87		89		86

	2,027		1,482	Total		802		861		849		863		1,164


				Annualized new business premiums by distribution channel:
	796		565	Life Planners		258		291		294		394		402
	509		430	Gibraltar Life Consultants		270		269		280		193		316
	454		278	Banks		143		173		152		193		261
	268		209	Independent Agency		131		128		123		83		185

	2,027		1,482	Total		802		861		849		863		1,164


				Constant exchange rate basis (2):

				Net premiums, policy charges and fee income:
	2,796		2,511	Japan, excluding Gibraltar Life		1,171		1,225		1,227		1,460		1,336
	6,011		3,948	Gibraltar Life		2,363		2,135		2,268		2,633		3,378
	769		715	All other countries		364		371		404		378		391

	9,576		7,174	Total		3,898		3,731		3,899		4,471		5,105


				Annualized new business premiums:
	601		389	Japan, excluding Gibraltar Life		171		198		194		294		307
	1,174		887	Gibraltar Life		524		537		519		439		735
	171		155	All other countries		76		75		86		86		85

	1,946		1,431	Total		771		810		799		819		1,127


				Annualized new business premiums by distribution channel:
	772		544	Life Planners		247		273		280		380		392
	486		413	Gibraltar Life Consultants		258		253		262		181		305
	433		271	Banks		139		165		144		182		251
	255		203	Independent Agency		127		119		113		76		179

	1,946		1,431	Total		771		810		799		819		1,127

(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

Second Quarter 2012

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


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

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		324			326			328			332			335
Gibraltar Life		375			378			380			378			379
All other countries		102			103			105			105			106

Total		801			807			813			815			820


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		2,616			2,647			2,678			2,725			2,773
Gibraltar Life		7,430			7,459			7,477			7,453			7,417
All other countries		1,536			1,555			1,575			1,606			1,624

Total		11,582			11,661			11,730			11,784			11,814


International life insurance policy persistency (3):

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

Gibraltar Life:
13 months		92.7	%		93.0	%		93.1	%		93.0	%		90.6	%
25 months		85.5	%		85.8	%		85.8	%		85.8	%		81.6	%

Number of Life Planners at end of period:
Japan		3,106			3,144			3,137			3,165			3,116
All other countries		3,462			3,555			3,655			3,654			3,690

Total life planners		6,568			6,699			6,792			6,819			6,806


Gibraltar Life Consultants		13,353			12,936			12,791			12,219			12,031

(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 Star/Edison business for 1Q 2012 and prior periods.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 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		218,414		29,635		188,779		65.5	%		209,297		30,211		179,086		64.3	%
Public, held-to-maturity, at amortized cost		3,488		—		3,488		1.2	%		3,743		—		3,743		1.3	%
Private, available-for-sale, at fair value		45,206		17,298		27,908		9.7	%		43,243		16,305		26,938		9.7	%
Private, held-to-maturity, at amortized cost		1,283		—		1,283		0.5	%		1,364		—		1,364		0.5	%
Trading account assets supporting insurance liabilities, at fair value		19,729		—		19,729		6.8	%		19,481		—		19,481		7.0	%
Other trading account assets, at fair value		2,023		287		1,736		0.6	%		2,421		317		2,104		0.8	%
Equity securities, available-for-sale, at fair value		7,690		3,052		4,638		1.6	%		7,523		3,122		4,401		1.6	%
Commercial mortgage and other loans, at book value		35,510		9,800		25,710		8.9	%		34,113		9,040		25,073		9.0	%
Policy loans, at outstanding balance		11,456		5,165		6,291		2.2	%		11,559		5,296		6,263		2.2	%
Other long-term investments (1)		6,367		2,038		4,329		1.4	%		6,471		1,990		4,481		1.6	%
Short-term investments		5,141		716		4,425		1.6	%		6,137		528		5,609		2.0	%

Subtotal (2)		356,307		67,991		288,316		100.0	%		345,352		66,809		278,543		100.0	%

Invested assets of other entities and operations (3)		10,258		—		10,258					10,895		—		10,895

Total investments		366,565		67,991		298,574					356,247		66,809		289,438

Fixed Maturities by Credit Quality (2):


	June 30, 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		157,749		13,920		1,274		170,395		88.5	%		151,700		11,143		1,756		161,087		88.0	%
2		16,670		1,447		572		17,545		9.1	%		17,017		1,298		797		17,518		9.6	%

Subtotal - High or Highest Quality Securities		174,419		15,367		1,846		187,940		97.6	%		168,717		12,441		2,553		178,605		97.6	%

3		3,343		69		371		3,041		1.6	%		3,446		66		574		2,938		1.6	%
4		1,264		55		209		1,110		0.6	%		1,328		34		296		1,066		0.6	%
5		400		9		138		271		0.1	%		443		6		174		275		0.1	%
6		121		10		30		101		0.1	%		219		15		105		129		0.1	%

Subtotal - Other Securities		5,128		143		748		4,523		2.4	%		5,436		121		1,149		4,408		2.4	%

Total		179,547		15,510		2,594		192,463		100.0	%		174,153		12,562		3,702		183,013		100.0	%

Private Fixed Maturities:
NAIC Rating (4)
1		7,003		755		69		7,689		26.3	%		7,018		730		84		7,664		27.0	%
2		16,654		1,362		317		17,699		60.5	%		15,847		1,273		362		16,758		59.1	%

Subtotal - High or Highest Quality Securities		23,657		2,117		386		25,388		86.8	%		22,865		2,003		446		24,422		86.1	%

3		2,514		137		44		2,607		8.9	%		2,532		134		43		2,623		9.2	%
4		643		21		8		656		2.2	%		715		14		20		709		2.5	%
5		434		15		20		429		1.5	%		490		5		42		453		1.6	%
6		169		25		9		185		0.6	%		130		31		3		158		0.6	%

Subtotal - Other Securities		3,760		198		81		3,877		13.2	%		3,867		184		108		3,943		13.9	%

Total		27,417		2,315		467		29,265		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, (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 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 June 30, 2012 and December 31, 2011, respectively, 129 securities with amortized cost of $1,272 million (fair value $1,307 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

Second Quarter 2012

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2012					December 31, 2011
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		119,326		81.6	%		111,857		80.3	%
Public, held-to-maturity, at amortized cost		3,488		2.4	%		3,743		2.7	%
Private, available-for-sale, at fair value		5,500		3.8	%		5,020		3.6	%
Private, held-to-maturity, at amortized cost		1,283		0.9	%		1,364		1.0	%
Trading account assets supporting insurance liabilities, at fair value		1,795		1.2	%		1,732		1.2	%
Other trading account assets, at fair value		1,402		0.9	%		1,496		1.1	%
Equity securities, available-for-sale, at fair value		1,945		1.3	%		1,932		1.4	%
Commercial mortgage and other loans, at book value		5,688		3.9	%		5,672		4.1	%
Policy loans, at outstanding balance		2,806		1.9	%		2,873		2.0	%
Other long-term investments (2)		2,650		1.8	%		2,892		2.1	%
Short-term investments		416		0.3	%		702		0.5	%

Total		146,299		100.0	%		139,283		100.0	%


	June 30, 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		69,453		48.9	%		67,229		48.3	%
Public, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available-for-sale, at fair value		22,408		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		17,934		12.6	%		17,749		12.8	%
Other trading account assets, at fair value		334		0.2	%		608		0.4	%
Equity securities, available-for-sale, at fair value		2,693		1.9	%		2,469		1.8	%
Commercial mortgage and other loans, at book value		20,022		14.1	%		19,401		13.9	%
Policy loans, at outstanding balance		3,485		2.5	%		3,390		2.4	%
Other long-term investments (2)		1,679		1.2	%		1,589		1.2	%
Short-term investments		4,009		2.8	%		4,907		3.5	%

Total		142,017		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

Second Quarter 2012

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended June 30
	2012									2011
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (3)			Amount			(Losses)			Yield (3)			Amount			(Losses)
Financial Services Businesses (1):
Fixed maturities		3.76	%		1,872			(118	)		3.87	%		1,791			(34	)
Equity securities		6.07	%		62			(14	)		5.95	%		82			(19	)
Commercial mortgage and other loans		5.17	%		271			—			5.33	%		252			11
Policy loans		4.61	%		71			—			4.61	%		69			—
Short-term investments and cash equivalents		0.24	%		8			—			0.48	%		14			—
Other investments		4.30	%		66			1,737			4.56	%		69			213

Gross investment income before investment expenses		3.78	%		2,350			1,605			3.90	%		2,277			171
Investment expenses		-0.12	%		(64	)		—			-0.13	%		(60	)		—

Subtotal		3.66	%		2,286			1,605			3.77	%		2,217			171

Investment results of other entities and operations (2)					277			4						308			82
Less, investment income related to adjusted operating income reconciling items					(1	)								—

Total					2,562			1,609						2,525			253


	Six Months Ended June 30
	2012									2011
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (3)			Amount			(Losses)			Yield (3)(4)			Amount			(Losses)
Financial Services Businesses (1):
Fixed maturities		3.75	%		3,713			(132	)		3.96	%		3,389			(30	)
Equity securities		5.82	%		118			(69	)		5.61	%		136			(16	)
Commercial mortgage and other loans		5.22	%		541			3			5.46	%		501			21
Policy loans		4.60	%		142			—			4.67	%		133			—
Short-term investments and cash equivalents		0.24	%		16			—			0.42	%		25			—
Other investments		3.54	%		112			424			5.00	%		134			111

Gross investment income before investment expenses		3.75	%		4,642			226			3.97	%		4,318			86
Investment expenses		-0.12	%		(125	)		—			-0.13	%		(113	)		—

Subtotal		3.63	%		4,517			226			3.84	%		4,205			86

Investment results of other entities and operations (2)					575			9						628			87
Less, investment income related to adjusted operating income reconciling items					2									(4	)

Total					5,094			235						4,829			173

(1)

Excludes assets of our trading, banking, 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, banking, asset management operations, commercial loans, and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders.

(3)

Yields are based on net investment income as reported under U.S. GAAP and do not include adjustments, such as settlements of duration management swaps that are included in adjusted operating income. 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 for the six months ended June 30, 2011 are weighted for four months of income and assets related to the Star and Edison businesses.

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2012									2011
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (1)			Amount			(Losses)			Yield (1)			Amount			(Losses)
Japanese Insurance Operations:
Fixed maturities		2.73	%		818			(101	)		2.75	%		732			(73	)
Equity securities		2.46	%		12			(18	)		3.62	%		31			(46	)
Commercial mortgage and other loans		4.08	%		57			2			4.04	%		52			5
Policy loans		3.53	%		25			—			3.35	%		23			—
Short-term investments and cash equivalents		0.16	%		2			—			0.87	%		9			—
Other investments (3)		4.44	%		43			277			3.61	%		35			—

Gross investment income before investment expenses		2.78	%		957			160			2.80	%		882			(114	)
Investment expenses		-0.13	%		(44	)		—			-0.13	%		(42	)		—

Total		2.65	%		913			160			2.67	%		840			(114	)


	Six Months Ended June 30
	2012									2011
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (1)			Amount			(Losses)			Yield (1)(2)			Amount			(Losses)
Japanese Insurance Operations:
Fixed maturities		2.71	%		1,612			(113	)		2.73	%		1,273			(122	)
Equity securities		2.79	%		28			(79	)		3.13	%		44			(46	)
Commercial mortgage and other loans		4.03	%		112			6			4.17	%		100			10
Policy loans		3.44	%		48			—			3.38	%		42			—
Short-term investments and cash equivalents		0.17	%		3			—			0.77	%		13			—
Other investments (3)		3.60	%		74			73			5.01	%		81			(134	)

Gross investment income before investment expenses		2.74	%		1,877			(113	)		2.82	%		1,553			(292	)
Investment expenses		-0.12	%		(84	)		—			-0.12	%		(68	)		—

Total		2.62	%		1,793			(113	)		2.70	%		1,485			(292	)

(1)

(2)	Yields for the six months ended June 30, 2011 are weighted for four months of income and assets related to the Star and Edison businesses.

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

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2012									2011
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (2)			Amount			(Losses)			Yield (2)			Amount			(Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		5.31	%		1,054			(17	)		5.38	%		1,059			39
Equity securities		9.27	%		50			4			9.81	%		51			27
Commercial mortgage and other loans		5.57	%		214			(2	)		5.81	%		200			6
Policy loans		5.47	%		46			—			5.65	%		46			—
Short-term investments and cash equivalents		0.27	%		6			—			0.27	%		5			—
Other investments		4.06	%		23			1,460			6.31	%		34			213

Gross investment income before investment expenses		5.02	%		1,393			1,445			5.17	%		1,395			285
Investment expenses		-0.12	%		(20	)		—			-0.12	%		(18	)		—

Total		4.90	%		1,373			1,445			5.05	%		1,377			285


	Six Months Ended June 30
	2012									2011
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (2)			Amount			(Losses)			Yield (2)			Amount			(Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		5.32	%		2,101			(19	)		5.42	%		2,116			92
Equity securities		8.67	%		90			10			9.08	%		92			30
Commercial mortgage and other loans		5.65	%		429			(3	)		5.92	%		401			11
Policy loans		5.55	%		94			—			5.66	%		91			—
Short-term investments and cash equivalents		0.27	%		13			—			0.27	%		12			—
Other investments		3.43	%		38			351			5.00	%		53			245

Gross investment income before investment expenses		5.00	%		2,765			339			5.13	%		2,765			378
Investment expenses		-0.12	%		(41	)		—			-0.13	%		(45	)		—

Total		4.88	%		2,724			339			5.00	%		2,720			378

(1)

(2)

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2012

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

Second Quarter 2012

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

Second Quarter 2012

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 7.1% for the six months ended June 30, 2012, 8.9% for the six months ended June 30, 2011, 25.2% for the three months ended June 30, 2012, 11.9% 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, and 10.4% for the three months ended June 30, 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

Second Quarter 2012

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of August 1, 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 August 1, 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 - August 1, 2012

Attached files