PRUDENTIAL FINANCIAL INC - FORM 8-K - EX-99.2

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8-K - FORM 8-K - PRUDENTIAL FINANCIAL INC	d478937d8k.htm
EX-99.1 - EX-99.1 - PRUDENTIAL FINANCIAL INC	d478937dex991.htm

Exhibit 99.2

Prudential Financial, Inc. (PRU)

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Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

Fourth 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.

February 6, 2013

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth 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

RECLASSIFIED STATEMENT OF OPERATIONS		35-43

RECLASSIFIED SUPPLEMENTARY INFORMATION		44-46

KEY DEFINITIONS AND FORMULAS		47-49

RATINGS AND INVESTOR INFORMATION		50

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

This quarterly financial supplement reflects, for all periods presented, the following:

A discretionary change in accounting principle related to the Company’s pension plans. Under the revised accounting principle, the market related value of a plan’s fixed income assets used to calculate net periodic benefit cost is now reflected annually at fair value. The prior method calculated the market related value by recognizing changes in the fair value of a plan’s fixed income assets in a systematic and rational manner over 5 years. The Company adopted this revised accounting principle in the fourth quarter of 2012 with retrospective application for prior periods.

Results of the majority of the company’s international investments operations, formerly included in the International Insurance segment, have been reclassified and included in the Asset Management segment. This reflects the Company’s decision to align the management of these businesses.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

								*Financial Services Businesses:*
								Pre-tax adjusted operating income (loss) by division:
	2,180			2,038			7%	U.S. Retirement Solutions and Investment Management Division		769			705			304			503			668
	400			645			-38%	U.S. Individual Life and Group Insurance Division		180			72			94			147			87
	2,704			2,263			19%	International Insurance Division		502			597			678			782			647
	(1,335	)		(1,110	)		-20%	Corporate and other operations		(285	)		(326	)		(225	)		(413	)		(371	)

	3,949			3,836			3%	Total pre-tax adjusted operating income		1,166			1,048			851			1,019			1,031
	991			991			0%	Income taxes, applicable to adjusted operating income		311			283			205			270			233

	2,958			2,845			4%	Financial Services Businesses after-tax adjusted operating income		855			765			646			749			798


								Reconciling items:
	(2,809	)		847			-432%	Realized investment gains (losses), net, and related charges and adjustments		(596	)		(1,838	)		2,030			(1,303	)		(1,698	)
	610			223			174%	Investment gains on trading account assets supporting insurance liabilities, net		53			234			4			264			108
	(540	)		(123	)		-339%	Change in experience-rated contractholder liabilities due to asset value changes		(47	)		(246	)		54			(254	)		(94	)
	(597	)		101			-691%	Divested businesses		52			4			24			(685	)		60
	(1	)		(189	)		99%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		12			5			8			(40	)		26

	(3,337	)		859			-488%	Total reconciling items, before income taxes		(526	)		(1,841	)		2,120			(2,018	)		(1,598	)
	(808	)		429			-288%	Income taxes, not applicable to adjusted operating income		(186	)		(113	)		536			(623	)		(608	)

	(2,529	)		430			-688%	Total reconciling items, after income taxes		(340	)		(1,728	)		1,584			(1,395	)		(990	)

	429			3,275			-87%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		515			(963	)		2,230			(646	)		(192	)
	(18	)		110			-116%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(7	)		(4	)		(9	)		20			(25	)

	411			3,385			-88%	Income (loss) from continuing operations attributable to Prudential Financial, Inc.		508			(967	)		2,221			(626	)		(217	)
	78			72			8%	Earnings attributable to noncontrolling interests		8			11			15			25			27

	489			3,457			-86%	Income from continuing operations (after-tax) of Financial Services Businesses		516			(956	)		2,236			(601	)		(190	)
	17			35			-51%	Income (loss) from discontinued operations, net of taxes		14			7			8			(1	)		3

	506			3,492			-86%	Net income (loss) of Financial Services Businesses		530			(949	)		2,244			(602	)		(187	)
	78			72			8%	Less: Income attributable to noncontrolling interests		8			11			15			25			27

	428			3,420			-87%	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		522			(960	)		2,229			(627	)		(214	)

	10.8%			10.6%				Operating Return on Average Equity (based on adjusted operating income)		12.2%			11.4%			9.5%			10.6%			11.6%

								*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
	428			3,420				Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		522			(960	)		2,229			(627	)		(214	)
	41			146				Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		82			21			(5	)		43			(18	)

	469			3,566				Consolidated net income (loss) attributable to Prudential Financial, Inc.		604			(939	)		2,224			(584	)		(232	)

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

						Earnings per share of Common Stock (diluted): (1)
	6.27			5.83		Financial Services Businesses after-tax adjusted operating income		1.78			1.61			1.38			1.59			1.69

						Reconciling items:
	(5.94	)		1.73		Realized investment gains (losses), net, and related charges and adjustments		(1.25	)		(3.85	)		4.29			(2.76	)		(3.61	)
	1.29			0.46		Investment gains on trading account assets supporting insurance liabilities, net		0.11			0.49			0.01			0.56			0.23
	(1.14	)		(0.25	)	Change in experience-rated contractholder liabilities due to asset value changes		(0.10	)		(0.52	)		0.11			(0.54	)		(0.20	)
	(1.26	)		0.21		Divested businesses		0.11			0.01			0.05			(1.45	)		0.13
	0.05			(0.01	)	Difference in earnings allocated to participating unvested share-based payment awards		—			0.02			(0.03	)		0.02			—

	(7.00	)		2.14		Total reconciling items, before income taxes		(1.13	)		(3.85	)		4.43			(4.17	)		(3.45	)
	(1.64	)		1.05		Income taxes, not applicable to adjusted operating income		(0.40	)		(0.20	)		1.14			(1.24	)		(1.28	)

	(5.36	)		1.09		Total reconciling items, after income taxes		(0.73	)		(3.65	)		3.29			(2.93	)		(2.17	)

	0.91			6.92		Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		1.05			(2.04	)		4.67			(1.34	)		(0.48	)
	0.03			0.07		Income from discontinued operations, net of taxes		0.03			0.01			0.02			—			—

	0.94			6.99		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		1.08			(2.03	)		4.69			(1.34	)		(0.48	)


	465.6			480.2		Weighted average number of outstanding Common shares (basic)		469.2			469.2			466.1			464.4			462.6
	473.2			488.7		Weighted average number of outstanding Common shares (diluted) (2)		477.0			477.5			473.5			471.8			469.9

	20			24		Direct equity adjustments for earnings per share calculation		(1	)		8			8			4			—
	17			17		Earnings related to interest, net of tax, on exchangeable surplus notes (2)		4			4			5			4			4

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	29			38		Financial Services Businesses after-tax adjusted operating income		11			8			6			8			7
	7			45		Income from continuing operations (after-tax) of Financial Services Businesses		9			—			21			—			7

(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, September 30, 2012, and December 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.

(2)

In calculating diluted earnings per share under the if-converted method, the potential shares that would be issued related to the exchangeable surplus notes assuming a hypothetical exchange, weighted for the period the notes are outstanding, is added to the denominator, and interest expense, net of tax, is added to the numerator, if the overall effect is dilutive. For the twelve months ended December 31, 2012, the hypothetical impact of these shares was antidilutive and therefore excluded from the diluted earnings per share calculation for GAAP measures. The weighted average number of outstanding common shares used in the diluted earnings per share calculation for the twelve months ended December 31, 2012 for GAAP measures is 468.1 million.

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

				*Financial Services Businesses Capitalization Data (1):*
				Senior Debt:
				Short-term debt		2,336		3,655		3,226		3,013		2,409
				Long-term debt		21,353		21,110		21,030		19,576		18,460
				Junior Subordinated Long-Term Debt		1,519		1,519		1,519		2,519		4,594

				Attributed Equity:
				Including accumulated other comprehensive income		32,817		33,527		36,593		37,189		37,078
				Excluding total accumulated other comprehensive income		27,740		26,637		28,687		27,976		27,088

				Total Capitalization:
				Including accumulated other comprehensive income		55,689		56,156		59,142		59,284		60,132
				Excluding total accumulated other comprehensive income		50,612		49,266		51,236		50,071		50,142

				Book value per share of Common Stock:
				Including accumulated other comprehensive income		69.07		70.84		78.14		79.63		79.19
				Excluding total accumulated other comprehensive income		58.39		56.28		61.26		59.91		57.86

				Number of diluted shares at end of period (2)		475.1		473.3		468.3		467.0		468.2

				*Common Stock Price Range (based on closing price):*
	64.65		67.32	High		57.32		64.65		64.50		58.63		59.89
	44.74		43.91	Low		43.91		51.30		44.74		45.46		48.74
	53.33		50.12	Close		50.12		63.39		48.43		54.51		53.33


				*Common Stock market capitalization (1)*		23,456		29,667		22,472		25,184		24,692

(1)	As of end of period.

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

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

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OPERATIONS HIGHLIGHTS


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

				*Assets Under Management and Administration ($ billions) (1) (2):*
				Assets Under Management:
				Managed by U.S. Retirement Solutions and Investment Management Division:
				Asset Management Segment - Investment Management & Advisory Services
				Institutional customers		271.8		286.1		289.2		303.1		313.7
				Retail customers		119.3		125.1		131.7		133.9		138.7
				General account		326.7		321.3		331.4		340.7		374.6

				Total Investment Management and Advisory Services		717.8		732.5		752.3		777.7		827.0
				Non-proprietary assets under management		152.2		176.8		176.2		193.0		196.8

				Total managed by U.S. Retirement Solutions and Investment Management Division		870.0		909.3		928.5		970.7		1,023.8
				Managed by U.S. Individual Life and Group Insurance Division		13.8		14.8		13.6		13.7		16.4
				Managed by International Insurance Division		16.9		18.8		19.0		20.5		20.1

				Total assets under management		900.7		942.9		961.1		1,004.9		1,060.3
				Client assets under administration		85.7		89.2		87.1		88.4		91.9

				Total assets under management and administration		986.4		1,032.1		1,048.2		1,093.3		1,152.2


				Assets managed or administered for customers outside of the United States at end of period		208.9		214.6		223.0		237.3		243.8

				*Distribution Representatives (1):*
				Prudential Agents		2,529		2,603		2,607		2,662		2,615
				International Life Planners		6,792		6,819		6,806		6,929		7,058
				Gibraltar Life Consultants		12,791		12,219		12,031		11,683		11,333

	55		54	*Prudential Agent productivity ($ thousands)*		64		45		54		58		64

(1)	As of end of period.

(2)	At fair market value.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

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COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

								Revenues (1):
	62,083			21,038			195%	Premiums		5,546			5,980			6,695			8,263			41,145
	4,597			4,032			14%	Policy charges and fee income		1,033			1,078			1,085			1,251			1,183
	10,370			9,803			6%	Net investment income		2,522			2,500			2,526			2,631			2,713
	4,083			4,060			1%	Asset management fees, commissions and other income		1,034			937			941			1,107			1,098

	81,133			38,933			108%	Total revenues		10,135			10,495			11,247			13,252			46,139


								Benefits and Expenses (1):
	60,900			19,919			206%	Insurance and annuity benefits		4,946			5,484			6,404			8,229			40,783
	3,804			3,756			1%	Interest credited to policyholders’ account balances		953			948			971			941			944
	1,243			1,163			7%	Interest expense		299			308			311			311			313
	(3,534	)		(3,027	)		-17%	Deferral of acquisition costs		(761	)		(809	)		(911	)		(882	)		(932	)
	1,966			1,565			26%	Amortization of acquisition costs		378			406			513			466			581
	12,805			11,721			9%	General and administrative expenses		3,154			3,110			3,108			3,168			3,419

	77,184			35,097			120%	Total benefits and expenses		8,969			9,447			10,396			12,233			45,108

	3,949			3,836			3%	Adjusted operating income before income taxes		1,166			1,048			851			1,019			1,031


								Reconciling items:
	(3,666	)		2,503			-246%	Realized investment gains (losses), net, and related adjustments		(672	)		(2,716	)		3,058			(1,951	)		(2,057	)
	857			(1,656	)		152%	Related charges		76			878			(1,028	)		648			359

	(2,809	)		847			-432%	Total realized investment gains (losses), net, and related charges and adjustments		(596	)		(1,838	)		2,030			(1,303	)		(1,698	)

	610			223			174%	Investment gains on trading account assets supporting insurance liabilities, net		53			234			4			264			108
	(540	)		(123	)		-339%	Change in experience-rated contractholder liabilities due to asset value changes		(47	)		(246	)		54			(254	)		(94	)
	(597	)		101			-691%	Divested businesses		52			4			24			(685	)		60
	(1	)		(189	)		99%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		12			5			8			(40	)		26

	(3,337	)		859			-488%	Total reconciling items, before income taxes		(526	)		(1,841	)		2,120			(2,018	)		(1,598	)


	612			4,695			-87%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		640			(793	)		2,971			(999	)		(567	)
	183			1,420			-87%	Income tax expense (benefit)		125			170			741			(353	)		(375	)

	429			3,275			-87%	Income (loss) from continuing operations before equity in earnings of operating joint ventures		515			(963	)		2,230			(646	)		(192	)

(1)

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

Page 5

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $197,784; $195,582; $202,699; $208,474; $236,517)		208,132		208,419		217,232		226,015		254,917
Fixed maturities, held to maturity, at amortized cost (fair value $5,354; $5,006; $5,041; $5,018; $4,511)		5,107		4,775		4,771		4,720		4,268
Trading account assets supporting insurance liabilities, at fair value		19,481		19,679		19,729		20,132		20,590
Other trading account assets, at fair value		5,228		4,860		5,349		5,610		6,053
Equity securities, available for sale, at fair value (cost $4,165; $4,041; $4,188; $4,253; $4,302)		4,413		4,629		4,651		4,821		5,052
Commercial mortgage and other loans		26,391		26,205		26,643		27,057		27,125
Policy loans		6,263		6,191		6,291		6,551		6,455
Other long-term investments		5,830		5,517		5,655		6,133		8,016
Short-term investments		8,593		7,196		8,253		7,825		5,186

Total investments		289,438		287,471		298,574		308,864		337,662
Cash and cash equivalents		13,201		12,980		13,390		13,102		17,546
Accrued investment income		2,177		2,147		2,180		2,230		2,534
Deferred policy acquisition costs		12,056		13,008		12,612		13,250		13,688
Value of business acquired		3,845		3,553		3,510		3,516		3,248
Other assets		11,903		12,109		11,496		11,901		11,376
Separate account assets		218,380		236,567		235,268		247,510		253,254

Total assets		551,000		567,835		577,030		600,373		639,308


Liabilities:
Future policy benefits		119,248		116,721		123,555		132,209		165,212
Policyholders’ account balances		129,074		128,038		128,423		130,227		128,987
Securities sold under agreements to repurchase		3,118		3,806		4,656		4,662		3,436
Cash collateral for loaned securities		2,254		2,226		2,247		2,442		2,864
Income taxes		6,993		8,097		9,081		9,323		9,058
Senior short-term debt		2,336		3,655		3,226		3,013		2,409
Senior long-term debt		21,353		21,110		21,030		19,576		18,460
Junior subordinated long-term debt		1,519		1,519		1,519		2,519		4,594
Notes issued by consolidated variable interest entities		524		537		537		636		1,577
Other liabilities		12,796		11,436		10,286		10,376		11,663
Separate account liabilities		218,380		236,567		235,268		247,510		253,254

Total liabilities		517,595		533,712		539,828		562,493		601,514


Attributed Equity:
Accumulated other comprehensive income		5,077		6,890		7,906		9,213		9,990
Other attributed equity		27,740		26,637		28,687		27,976		27,088

Total attributed equity		32,817		33,527		36,593		37,189		37,078

Noncontrolling Interest		588		596		609		691		716

Total Equity		33,405		34,123		37,202		37,880		37,794

Total liabilities and equity		551,000		567,835		577,030		600,373		639,308

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Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended December 31, 2012
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations



Revenues (1):
Premiums		41,145			31,979			1,274			7,901			(9	)
Policy charges and fee income		1,183			598			439			156			(10	)
Net investment income		2,713			1,096			408			1,105			104
Asset management fees, commissions and other income		1,098			1,121			117			47			(187	)

Total revenues		46,139			34,794			2,238			9,209			(102	)


Benefits and Expenses (1):
Insurance and annuity benefits		40,783			32,292			1,411			7,068			12
Interest credited to policyholders’ account balances		944			531			146			271			(4	)
Interest expense		313			33			83			2			195
Deferral of acquisition costs		(932	)		(233	)		(199	)		(518	)		18
Amortization of acquisition costs		581			166			80			350			(15	)
General and administrative expenses		3,419			1,337			630			1,389			63

Total benefits and expenses		45,108			34,126			2,151			8,562			269


Adjusted operating income (loss) before income taxes		1,031			668			87			647			(371	)


	Quarter Ended 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



Revenues (1):
Premiums		5,546			257			1,276			4,018			(5	)
Policy charges and fee income		1,033			512			384			146			(9	)
Net investment income		2,522			1,011			389			1,018			104
Asset management fees, commissions and other income		1,034			1,081			104			(4	)		(147	)

Total revenues		10,135			2,861			2,153			5,178			(57	)


Benefits and Expenses (1):
Insurance and annuity benefits		4,946			416			1,367			3,175			(12	)
Interest credited to policyholders’ account balances		953			549			135			276			(7	)
Interest expense		299			35			73			—			191
Deferral of acquisition costs		(761	)		(240	)		(85	)		(450	)		14
Amortization of acquisition costs		378			98			49			240			(9	)
General and administrative expenses		3,154			1,234			434			1,435			51

Total benefits and expenses		8,969			2,092			1,973			4,676			228


Adjusted operating income (loss) before income taxes		1,166			769			180			502			(285	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Twelve Months Ended December 31, 2012
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		62,083			32,504			5,128			24,484			(33	)
Policy charges and fee income		4,597			2,282			1,756			597			(38	)
Net investment income		10,370			4,080			1,619			4,268			403
Asset management fees, commissions and other income		4,083			4,110			465			237			(729	)

Total revenues		81,133			42,976			8,968			29,586			(397	)


Benefits and Expenses (1):
Insurance and annuity benefits		60,900			33,890			5,769			21,105			136
Interest credited to policyholders’ account balances		3,804			2,147			557			1,122			(22	)
Interest expense		1,243			144			323			3			773
Deferral of acquisition costs		(3,534	)		(1,091	)		(491	)		(2,024	)		72
Amortization of acquisition costs		1,966			411			424			1,173			(42	)
General and administrative expenses		12,805			5,295			1,986			5,503			21

Total benefits and expenses		77,184			40,796			8,568			26,882			938


Adjusted operating income (loss) before income taxes		3,949			2,180			400			2,704			(1,335	)


	Twelve Months Ended 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
Revenues (1):
Premiums		21,038			901			5,144			15,015			(22	)
Policy charges and fee income		4,032			2,043			1,472			552			(35	)
Net investment income		9,803			4,086			1,553			3,754			410
Asset management fees, commissions and other income		4,060			4,010			337			246			(533	)

Total revenues		38,933			11,040			8,506			19,567			(180	)


Benefits and Expenses (1):
Insurance and annuity benefits		19,919			2,070			5,618			12,085			146
Interest credited to policyholders’ account balances		3,756			2,285			527			978			(34	)
Interest expense		1,163			139			214			1			809
Deferral of acquisition costs		(3,027	)		(1,093	)		(317	)		(1,684	)		67
Amortization of acquisition costs		1,565			602			141			880			(58	)
General and administrative expenses		11,721			4,999			1,678			5,044			—

Total benefits and expenses		35,097			9,002			7,861			17,304			930


Adjusted operating income (loss) before income taxes		3,836			2,038			645			2,263			(1,110	)

(1)

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of December 31, 2012
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		337,662		124,654		36,648		164,144		12,216
Deferred policy acquisition costs		13,688		4,036		3,298		6,589		(235	)
Other assets		34,704		13,958		6,422		11,506		2,818
Separate account assets		253,254		214,416		39,757		1,555		(2,474	)

Total assets		639,308		357,064		86,125		183,794		12,325


Liabilities:
Future policy benefits		165,212		54,799		10,252		96,874		3,287
Policyholders’ account balances		128,987		56,282		18,518		54,172		15
Debt		25,463		4,969		8,428		38		12,028
Other liabilities		28,598		9,308		5,172		13,016		1,102
Separate account liabilities		253,254		214,416		39,757		1,555		(2,474	)

Total liabilities		601,514		339,774		82,127		165,655		13,958


Attributed Equity:
Accumulated other comprehensive income (loss)		9,990		2,541		1,728		7,359		(1,638	)
Other attributed equity		27,088		14,023		2,270		10,776		19

Total attributed equity		37,078		16,564		3,998		18,135		(1,619	)

Noncontrolling Interest		716		726		—		4		(14	)

Total Equity		37,794		17,290		3,998		18,139		(1,633	)


Total liabilities and equity		639,308		357,064		86,125		183,794		12,325


	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		97,052		33,282		148,900		10,204
Deferred policy acquisition costs		12,056		2,587		3,324		6,141		4
Other assets		31,126		9,589		4,546		12,369		4,622
Separate account assets		218,380		183,785		35,665		1,118		(2,188	)

Total assets		551,000		293,013		76,817		168,528		12,642


Liabilities:
Future policy benefits		119,248		20,451		9,441		87,199		2,157
Policyholders’ account balances		129,074		57,878		16,806		54,908		(518	)
Debt		25,208		4,722		7,047		—		13,439
Other liabilities		25,685		10,375		3,623		10,286		1,401
Separate account liabilities		218,380		183,785		35,665		1,118		(2,188	)

Total liabilities		517,595		277,211		72,582		153,511		14,291


Attributed Equity:
Accumulated other comprehensive income (loss)		5,077		2,027		1,333		3,128		(1,411	)
Other attributed equity		27,740		13,143		2,902		11,846		(151	)

Total attributed equity		32,817		15,170		4,235		14,974		(1,562	)

Noncontrolling Interest		588		632		—		43		(87	)

Total Equity		33,405		15,802		4,235		15,017		(1,649	)


Total liabilities and equity		551,000		293,013		76,817		168,528		12,642

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of December 31, 2012								As of December 31, 2011
	Senior debt				Junior Subordinated Long-term Debt		Total Debt		Senior debt				Junior Subordinated Long-term Debt		Total Debt
	Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt		Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt
Financial Services Businesses
*Borrowings by use of proceeds:*
Capital Debt		668		5,381		4,594		10,643		450		9,255		1,519		11,224
Operating Debt - Investment related		1,258		9,203		—		10,461		926		7,971		—		8,897
Operating Debt - Specified businesses		483		3,876		—		4,359		960		4,127		—		5,087
Limited recourse and non-recourse borrowing		—		—		—		—		—		—		—		—

Total debt - Financial Services Businesses		2,409		18,460		4,594		25,463		2,336		21,353		1,519		25,208

Closed Block Business
Investment related		—		—		—		—		—		—		—		—
Limited recourse and non-recourse borrowing		75		1,675		—		1,750		—		1,750		—		1,750

Total debt		75		1,675		—		1,750		—		1,750		—		1,750


	As of December 31, 2012								As of December 31, 2011
	Prudential Financial, Inc.		The Prudential Insurance Co. of America (1)(2)		Other Affiliates		Total		Prudential Financial, Inc.		The Prudential Insurance Co. of America (1)(2)		Other Affiliates		Total
Financial Services Businesses
*Borrowings by sources:*
Capital Debt		9,149		1,042		452		10,643		9,662		1,040		522		11,224
Operating Debt - Investment related		6,955		293		3,213		10,461		4,970		710		3,217		8,897
Operating Debt - Specified businesses		2,740		1,468		151		4,359		3,920		1,157		10		5,087
Limited recourse and non-recourse borrowing		—		—		—		—		—		—		—		—

Total debt - Financial Services Businesses		18,844		2,803		3,816		25,463		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 December 31, 2012 and December 31, 2011 respectively.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

LOGO

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

(in millions)


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

								Revenues (1):
	32,504			901			3508%	Premiums		257			116			248			161			31,979
	2,282			2,043			12%	Policy charges and fee income		512			544			556			584			598
	4,080			4,086			0%	Net investment income		1,011			999			983			1,002			1,096
	4,110			4,010			2%	Asset management fees, commissions and other income		1,081			973			929			1,087			1,121

	42,976			11,040			289%	Total revenues		2,861			2,632			2,716			2,834			34,794


								Benefits and Expenses (1):
	33,890			2,070			1537%	Insurance and annuity benefits		416			251			611			736			32,292
	2,147			2,285			-6%	Interest credited to policyholders’ account balances		549			544			568			504			531
	144			139			4%	Interest expense		35			35			39			37			33
	(1,091	)		(1,093	)		0%	Deferral of acquisition costs		(240	)		(265	)		(288	)		(305	)		(233	)
	411			602			-32%	Amortization of acquisition costs		98			97			168			(20	)		166
	5,295			4,999			6%	General and administrative expenses		1,234			1,265			1,314			1,379			1,337

	40,796			9,002			353%	Total benefits and expenses		2,092			1,927			2,412			2,331			34,126

	2,180			2,038			7%	Adjusted operating income before income taxes		769			705			304			503			668

(1)

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

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

LOGO

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

(in millions)


	Twelve Months Ended December 31, 2012												Quarter Ended December 31, 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		32,504			102			32,402			—			31,979			24			31,955			—
Policy charges and fee income		2,282			2,080			202			—			598			549			49			—
Net investment income		4,080			770			3,203			107			1,096			185			880			31
Asset management fees, commissions and other income		4,110			1,031			788			2,291			1,121			281			200			640

Total revenues		42,976			3,983			36,595			2,398			34,794			1,039			33,084			671


Benefits and Expenses (1):
Insurance and annuity benefits		33,890			573			33,317			—			32,292			55			32,237			—
Interest credited to policyholders’ account balances		2,147			452			1,695			—			531			121			410			—
Interest expense		144			109			20			15			33			24			5			4
Deferral of acquisition costs		(1,091	)		(1,016	)		(49	)		(26	)		(233	)		(200	)		(27	)		(6	)
Amortization of acquisition costs		411			338			49			24			166			131			29			6
Securities operations non-interest expenses		—			—			—			—			—			—			—			—
General and administrative expenses		5,295			2,488			925			1,882			1,337			604			205			528

Total benefits and expenses		40,796			2,944			35,957			1,895			34,126			735			32,859			532

Adjusted operating income before income taxes		2,180			1,039			638			503			668			304			225			139


	Twelve Months Ended December 31, 2011												Quarter Ended December 31, 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		901			121			780			—			257			24			233			—
Policy charges and fee income		2,043			1,850			193			—			512			463			49			—
Net investment income		4,086			790			3,178			118			1,011			197			782			32
Asset management fees, commissions and other income		4,010			877			720			2,413			1,081			218			182			681

Total revenues		11,040			3,638			4,871			2,531			2,861			902			1,246			713


Benefits and Expenses (1):
Insurance and annuity benefits		2,070			476			1,594			—			416			(25	)		441			—
Interest credited to policyholders’ account balances		2,285			570			1,715			—			549			116			433			—
Interest expense		139			112			14			13			35			29			3			3
Deferral of acquisition costs		(1,093	)		(1,038	)		(32	)		(23	)		(240	)		(228	)		(7	)		(5	)
Amortization of acquisition costs		602			536			41			25			98			89			3			6
Securities operations non-interest expenses		—			—			—			—			—			—			—			—
General and administrative expenses		4,999			2,320			945			1,734			1,234			548			233			453

Total benefits and expenses		9,002			2,976			4,277			1,749			2,092			529			1,106			457

Adjusted operating income before income taxes		2,038			662			594			782			769			373			140			256

(1)

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

LOGO

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

(in millions)


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

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	109,743			102,348		Beginning total account value		102,879			109,743			120,276			120,326			128,949
	19,977			20,224		Sales		4,406			4,943			5,344			5,912			3,778
	(6,646	)		(7,049	)	Surrenders and withdrawals		(1,526	)		(1,676	)		(1,626	)		(1,579	)		(1,765	)

	13,331			13,175		Net sales		2,880			3,267			3,718			4,333			2,013
	(1,169	)		(1,092	)	Benefit payments		(276	)		(285	)		(288	)		(283	)		(313	)

	12,162			12,083		Net flows		2,604			2,982			3,430			4,050			1,700
	12,380			(2,450	)	Change in market value, interest credited, and other		4,835			8,171			(2,742	)		5,264			1,687
	(2,677	)		(2,238	)	Policy charges		(575	)		(620	)		(638	)		(691	)		(728	)

	131,608			109,743		Ending total account value		109,743			120,276			120,326			128,949			131,608


						Fixed Annuities:
	3,792			3,837		Beginning total account value		3,810			3,792			3,778			3,768			3,756
	55			69		Sales		16			16			14			14			11
	(160	)		(183	)	Surrenders and withdrawals		(44	)		(43	)		(34	)		(35	)		(48	)

	(105	)		(114	)	Net redemptions		(28	)		(27	)		(20	)		(21	)		(37	)
	(281	)		(276	)	Benefit payments		(77	)		(83	)		(62	)		(68	)		(68	)

	(386	)		(390	)	Net flows		(105	)		(110	)		(82	)		(89	)		(105	)
	330			346		Interest credited and other		87			96			73			78			83
	(2	)		(1	)	Policy charges		—			—			(1	)		(1	)		—

	3,734			3,792		Ending total account value		3,792			3,778			3,768			3,756			3,734


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (1):
	3,023			3,223		Insurance Agents		732			764			799			903			557
	4,932			4,563		Wirehouses		1,180			1,233			1,299			1,471			929
	8,808			9,140		Independent Financial Planners		1,822			2,103			2,338			2,706			1,661
	3,269			3,367		Bank Distribution		688			859			922			846			642

	20,032			20,293		Total		4,422			4,959			5,358			5,926			3,789

(1)	Amounts represent gross sales.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

LOGO

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

(in millions)


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

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	12,830			13,223		Beginning balance		12,971			12,830			12,277			12,355			11,929
	2,360			1,906		Premiums and deposits		505			548			662			674			476
	(1,058	)		(1,114	)	Surrenders and withdrawals		(179	)		(278	)		(253	)		(239	)		(288	)

	1,302			792		Net sales		326			270			409			435			188
	(357	)		(347	)	Benefit payments		(92	)		(101	)		(84	)		(86	)		(86	)

	945			445		Net flows		234			169			325			349			102
	374			412		Interest credited and other		104			96			111			97			70
	(2,583	)		(1,249	)	Net transfers to separate account		(479	)		(818	)		(357	)		(871	)		(537	)
	(2	)		(1	)	Policy charges		—			—			(1	)		(1	)		—

	11,564			12,830		Ending balance		12,830			12,277			12,355			11,929			11,564


						Account Values in Separate Account:
	100,705			92,962		Beginning balance		93,718			100,705			111,777			111,739			120,776
	17,672			18,387		Premiums and deposits		3,917			4,411			4,696			5,252			3,313
	(5,748	)		(6,118	)	Surrenders and withdrawals		(1,391	)		(1,441	)		(1,407	)		(1,375	)		(1,525	)

	11,924			12,269		Net sales		2,526			2,970			3,289			3,877			1,788
	(1,093	)		(1,021	)	Benefit payments		(261	)		(267	)		(266	)		(265	)		(295	)

	10,831			11,248		Net flows		2,265			2,703			3,023			3,612			1,493
	12,336			(2,516	)	Change in market value, interest credited and other		4,818			8,171			(2,780	)		5,245			1,700
	2,583			1,249		Net transfers from general account		479			818			357			871			537
	(2,677	)		(2,238	)	Policy charges		(575	)		(620	)		(638	)		(691	)		(728	)

	123,778			100,705		Ending balance		100,705			111,777			111,739			120,776			123,778

(1)

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

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

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

(in millions)


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

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

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		8,771		8,724		8,368		8,224		7,947
Guaranteed minimum withdrawal benefits		1,031		1,066		984		980		947
Guaranteed minimum income benefits		3,685		3,874		3,603		3,631		3,556
Guaranteed minimum withdrawal & income benefits		72,154		81,156		83,110		91,366		94,804

Total		85,641		94,820		96,065		104,201		107,254


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		70,341		78,622		80,811		88,672		91,954
Account Values without Auto-Rebalancing Feature		15,300		16,198		15,254		15,529		15,300

Total		85,641		94,820		96,065		104,201		107,254


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		4,238		2,650		3,938		3,013		3,145
Net Amount at Risk without Auto-Rebalancing Feature		2,361		1,652		2,008		1,701		1,663

Total		6,599		4,302		5,946		4,714		4,808

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

LOGO

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

(in millions)


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

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

Variable Annuity Account Values by Death Benefit Features
Return of net deposits:
Account value		78,334		86,442		87,311		94,401		96,951
Net amount at risk		2,083		963		1,390		850		769
Minimum return, anniversary contract value, or maximum contract value:
Account value		28,414		30,685		30,037		31,510		31,687
Net amount at risk		5,699		4,173		4,975		4,268		4,207

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		70,341		78,622		80,811		88,672		91,954
Account Values without Auto-Rebalancing Feature		36,407		38,505		36,537		37,239		36,684

Total		106,748		117,127		117,348		125,911		128,638


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		2,154		995		1,596		983		958
Net Amount at Risk without Auto-Rebalancing Feature		5,628		4,141		4,769		4,135		4,018

Total		7,782		5,136		6,365		5,118		4,976

(1)	At end of period.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

LOGO

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

(in millions)


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

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	139,430			141,313		Beginning total account value		134,198			139,430			145,991			142,405			146,934
	16,390			16,821		Deposits and sales		3,879			4,646			4,363			3,478			3,903
	(19,223	)		(19,160	)	Withdrawals and benefits		(5,893	)		(7,103	)		(3,671	)		(4,063	)		(4,386	)
	11,808			456		Change in market value, interest credited, interest income and other activity (1)		7,246			9,018			(4,278	)		5,114			1,954

	148,405			139,430		Ending total account value		139,430			145,991			142,405			146,934			148,405


	(2,833	)		(2,339	)	Net additions (withdrawals)		(2,014	)		(2,457	)		692			(585	)		(483	)


						Stable value account values included above		41,142			41,169			41,634			42,044			42,836

						Institutional Investment Products:
	90,089			64,183		Beginning total account value		80,513			90,089			93,853			102,443			104,646
	55,005			27,773		Additions (2)		10,825			4,399			8,457			2,957			39,192
	(8,495	)		(6,150	)	Withdrawals and benefits (3)		(2,084	)		(1,538	)		(2,832	)		(1,539	)		(2,586	)
	4,787			4,581		Change in market value, interest credited and interest income		733			928			1,562			1,509			788
	49			(298	)	Other (4)		102			(25	)		1,403			(724	)		(605	)

	141,435			90,089		Ending total account value (5)		90,089			93,853			102,443			104,646			141,435


	46,510			21,623		Net additions		8,741			2,861			5,625			1,418			36,606

(1)

Includes $(1.4) billion for the three months ended June 30, 2012 and the twelve months ending December 31, 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 $1,008 million for the three and twelve months ended December 31, 2012, representing transfers of client balances from externally managed accounts to accounts managed by Prudential. These additions are offset within the “Other” category and there are no net impacts on ending account values for these transfers.

(3)

Includes $(10) million, $(7) million, $(886) million, and $(9) million for the three months ended December 31, 2011, March 31, 2012, June 30, 2012, and September 30, 2012, respectively, and $(902) million and $(78) million for the twelve months ended December 31, 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.

(4)

“Other” activity includes transfers to the Asset Management segment of $(415) million for the twelve months ended December 31, 2011. “Other” activity also includes transfers to externally/(internally) managed accounts of $10 million, $7 million, $886 million, $9 million, and $(1,008) million for the three months ended December 31, 2011, March 31, 2012, June 30, 2012, September 30, 2012, and December 31, 2012, respectively, and $(106) million and $78 million for the twelve months ended December 31, 2012 and 2011, respectively. These transfers are offset in withdrawals/(additions) discussed above in notes 2 & 3. The remainder of “Other” activity primarily represents changes in asset balances for externally managed accounts.

(5)

Ending total account values for Institutional Investment Products business includes $1.9 billion and $1.5 billion as of December 31, 2012 and 2011, respectively, related to collateralized funding agreements issued to the Federal Home Loan Bank of New York (FHLBNY), and $529 million as of December 31, 2011, related to affiliated funding agreements issued using the proceeds from the sale of Prudential Financial retail medium-term notes.

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

LOGO

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


						Supplementary Revenue Information (in millions):
Year-to-date				% Change			2011		2012
2012		2011		% Change			4Q		1Q		2Q			3Q		4Q

						Analysis of revenues by type:
	1,667		1,541		8%	Asset management fees		394		403		407			424		433
	207		339		-39%	Other related revenues		98		30		(25	)		113		89
	524		651		-20%	Service, distribution and other revenues		221		134		124			117		149

	2,398		2,531		-5%	Total Asset Management segment revenues		713		567		506			654		671


						Analysis of asset management fees by source:
	775		729		6%	Institutional customers		187		190		190			194		201
	509		452		13%	Retail customers		113		121		124			132		132
	383		360		6%	General account		94		92		93			98		100

	1,667		1,541		8%	Total asset management fees		394		403		407			424		433


Supplementary Assets Under Management Information (in billions):
	December 31, 2012
	Equity		Fixed Income		Real Estate		Total
Institutional customers		51.7		230.8		31.2		313.7
Retail customers		86.6		50.3		1.8		138.7
General account		9.4		363.7		1.5		374.6

Total		147.7		644.8		34.5		827.0


	December 31, 2011
	Equity		Fixed Income		Real Estate		Total
Institutional customers		46.3		197.8		27.7		271.8
Retail customers		71.7		46.2		1.4		119.3
General account		8.7		316.7		1.3		326.7

Total		126.7		560.7		30.4		717.8

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

LOGO

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

(in billions)


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

						Institutional Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	234.2			200.1		Beginning assets under management		224.0			234.2			247.5			251.4			263.8
	58.8			49.4		Additions		14.3			14.1			11.2			12.7			20.8
	(41.6	)		(32.5	)	Withdrawals		(10.7	)		(8.7	)		(11.2	)		(9.3	)		(12.4	)
	23.1			16.8		Change in market value		6.3			7.7			3.7			8.9			2.8
	0.2			—		Net money market flows		0.3			0.1			0.1			0.1			(0.1	)
	(0.1	)		0.4		Other (1)		—			0.1			0.1			—			(0.3	)

	274.6			234.2		Ending assets under management		234.2			247.5			251.4			263.8			274.6
	39.1			37.6		Affiliated institutional assets under management		37.6			38.6			37.8			39.3			39.1

	313.7			271.8		Total assets managed for institutional customers at end of period		271.8			286.1			289.2			303.1			313.7

	17.2			16.9		Net institutional additions, excluding money market activity		3.6			5.4			—			3.4			8.4


						Retail Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	69.6			75.1		Beginning assets under management		72.2			69.6			81.1			81.1			87.8
	37.0			29.9		Additions		8.2			9.4			9.5			8.0			10.1
	(24.2	)		(24.2	)	Withdrawals		(6.0	)		(6.1	)		(5.9	)		(5.5	)		(6.7	)
	8.8			0.3		Change in market value		5.2			8.2			(3.6	)		4.3			(0.1	)
	(0.1	)		(1.1	)	Net money market flows		(1.0	)		—			—			(0.1	)		—
	—			(10.4	)	Other (2)		(9.0	)		—			—			—			—

	91.1			69.6		Ending assets under management		69.6			81.1			81.1			87.8			91.1
	47.6			49.7		Affiliated retail assets under management		49.7			44.0			50.6			46.1			47.6

	138.7			119.3		Total assets managed for retail customers at end of period		119.3			125.1			131.7			133.9			138.7


	12.8			5.7		Net retail additions, excluding money market activity		2.2			3.3			3.6			2.5			3.4

(1)	“Other” activity represents transfers from the Retirement Segment, as a result of changes in the client contract form; and FX related to International assets under management.

(2)	“Other” activity represents the sale of our investment in the Afore XXI operating joint venture in fourth quarter 2011, the effect of foreign exchange rate changes, and a reclassification in 2011 of certain fund balances to affiliated retail assets under management.

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

LOGO

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

(in millions)


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

								Revenues (1):
	5,128			5,144			0%	Premiums		1,276			1,269			1,290			1,295			1,274
	1,756			1,472			19%	Policy charges and fee income		384			391			389			537			439
	1,619			1,553			4%	Net investment income		389			400			402			409			408
	465			337			38%	Asset management fees, commissions and other income		104			107			114			127			117

	8,968			8,506			5%	Total revenues		2,153			2,167			2,195			2,368			2,238


								Benefits and Expenses (1):
	5,769			5,618			3%	Insurance and annuity benefits		1,367			1,473			1,452			1,433			1,411
	557			527			6%	Interest credited to policyholders’ account balances		135			133			139			139			146
	323			214			51%	Interest expense		73			77			80			83			83
	(491	)		(317	)		-55%	Deferral of acquisition costs		(85	)		(89	)		(100	)		(103	)		(199	)
	424			141			201%	Amortization of acquisition costs		49			57			77			210			80
	1,986			1,678			18%	General and administrative expenses		434			444			453			459			630

	8,568			7,861			9%	Total benefits and expenses		1,973			2,095			2,101			2,221			2,151


	400			645			-38%	Adjusted operating income before income taxes		180			72			94			147			87

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

LOGO

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

(in millions)


	Twelve Months Ended December 31, 2012									Quarter Ended December 31, 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		5,128			725			4,403			1,274			183			1,091
Policy charges and fee income		1,756			1,251			505			439			304			135
Net investment income		1,619			1,033			586			408			262			146
Asset management fees, commissions and other income		465			358			107			117			91			26

Total revenues		8,968			3,367			5,601			2,238			840			1,398


Benefits and Expenses (1):
Insurance and annuity benefits		5,769			1,241			4,528			1,411			298			1,113
Interest credited to policyholders’ account balances		557			329			228			146			88			58
Interest expense		323			316			7			83			81			2
Deferral of acquisition costs		(491	)		(436	)		(55	)		(199	)		(144	)		(55	)
Amortization of acquisition costs		424			419			5			80			78			2
General and administrative expenses		1,986			1,114			872			630			340			290

Total benefits and expenses		8,568			2,983			5,585			2,151			741			1,410


Adjusted operating income (loss) before income taxes		400			384			16			87			99			(12	)


	Twelve Months Ended December 31, 2011									Quarter Ended December 31, 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		5,144			716			4,428			1,276			179			1,097
Policy charges and fee income		1,472			952			520			384			258			126
Net investment income		1,553			978			575			389			249			140
Asset management fees, commissions and other income		337			254			83			104			83			21

Total revenues		8,506			2,900			5,606			2,153			769			1,384


Benefits and Expenses (1):
Insurance and annuity benefits		5,618			1,144			4,474			1,367			276			1,091
Interest credited to policyholders’ account balances		527			299			228			135			77			58
Interest expense		214			214			—			73			73			—
Deferral of acquisition costs		(317	)		(317	)		—			(85	)		(85	)		—
Amortization of acquisition costs		141			135			6			49			47			2
General and administrative expenses		1,678			943			735			434			243			191

Total benefits and expenses		7,861			2,418			5,443			1,973			631			1,342


Adjusted operating income before income taxes		645			482			163			180			138			42

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

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 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				4Q			1Q			2Q			3Q			4Q

						ANNUALIZED NEW BUSINESS PREMIUMS (1):

	21			25		Variable life		4			4			5			4			8
	218			95		Universal life		29			34			42			52			90
	173			158		Term life		42			41			44			42			46

	412			278		Total		75			79			91			98			144


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	90			84		Prudential Agents		22			20			24			22			24
	322			194		Third party distribution		53			59			67			76			120

	412			278		Total		75			79			91			98			144


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2):*
	9,500			8,773		Beginning balance		9,364			9,500			9,792			10,021			10,058
	2,197			1,631		Premiums and deposits		454			480			502			506			709
	(838	)		(780	)	Surrenders and withdrawals		(199	)		(196	)		(220	)		(209	)		(213	)

	1,359			851		Net sales		255			284			282			297			496
	(234	)		(221	)	Benefit payments		(51	)		(57	)		(65	)		(53	)		(59	)

	1,125			630		Net flows		204			227			217			244			437
	32			164		Interest credited and other		(44	)		88			28			(195	)		111
	300			287		Net transfers from separate account		59			70			78			68			84
	(374	)		(354	)	Policy charges		(83	)		(93	)		(94	)		(80	)		(107	)

	10,583			9,500		Ending balance		9,500			9,792			10,021			10,058			10,583


						*Separate Account Liabilities:*
	16,491			17,157		Beginning balance		15,506			16,491			17,842			17,113			17,835
	849			896		Premiums and deposits		215			208			211			212			218
	(577	)		(694	)	Surrenders and withdrawals		(150	)		(145	)		(130	)		(148	)		(154	)

	272			202		Net sales		65			63			81			64			64
	(30	)		(37	)	Benefit payments		(8	)		(7	)		(8	)		(8	)		(7	)

	242			165		Net flows		57			56			73			56			57
	2,036			128		Change in market value, interest credited and other		1,151			1,530			(562	)		895			173
	(300	)		(287	)	Net transfers to general account		(59	)		(70	)		(78	)		(68	)		(84	)
	(652	)		(671	)	Policy charges		(164	)		(165	)		(162	)		(161	)		(164	)

	17,817			16,492		Ending balance		16,491			17,842			17,113			17,835			17,817


						FACE AMOUNT IN FORCE (3):

						Variable life		113,039			113,118			111,530			111,159			110,218
						Universal life		41,063			42,751			45,161			47,943			53,092
						Term life		477,235			483,890			491,724			499,051			506,868

						Total		631,337			639,759			648,415			658,153			670,178

(1)	Excludes corporate-owned life insurance.

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

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 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			4Q		1Q		2Q		3Q		4Q

				Individual Life Insurance:

				Policy Surrender Experience:
	659		778	Cash value of surrenders		155		170		155		165		169
	2.7%		3.3%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		2.7%		2.8%		2.5%		2.6%		2.6%

				Death benefits per $1,000 of in force (1):
	4.71		4.52	Variable and universal life		4.18		4.35		5.90		4.38		4.17
	1.46		1.09	Term life		0.99		1.42		2.08		1.00		1.36
	3.01		2.73	Total, Individual Life Insurance		2.49		2.86		3.89		2.60		2.69

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

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

LOGO

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

(dollar amounts in millions)


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

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	304		486	Group life		49			211			24			18			51
	135		149	Group disability		20			81			19			28			7

	439		635	Total		69			292			43			46			58


				Future Policy Benefits (1):
				Group life		2,418			2,325			2,300			2,231			2,385
				Group disability		8			37			28			17			4

				Total		2,426			2,362			2,328			2,248			2,389


				Policyholders’ Account Balances (1):
				Group life		7,127			7,188			7,310			7,522			7,726
				Group disability		179			168			182			193			209

				Total		7,306			7,356			7,492			7,715			7,935


				Separate Account Liabilities (1):
				Group life		19,174			19,826			19,506			20,110			21,940
				Group disability		—			—			—			—			—

				Total		19,174			19,826			19,506			20,110			21,940


				Group Life Insurance:
	4,177		4,202	Gross premiums, policy charges and fee income (2)		1,040			1,064			1,015			1,019			1,079
	3,983		4,065	Earned premiums, policy charges and fee income		999			990			989			1,010			994
	90.9%		89.5%	Benefits ratio		86.0	%		95.4	%		88.6	%		90.7	%		89.0	%
	10.0%		8.5%	Administrative operating expense ratio		8.9	%		9.1	%		9.9	%		9.2	%		11.8	%
				Persistency ratio		95.8	%		95.4	%		95.0	%		94.5	%		94.0	%

				Group Disability Insurance:
	959		903	Gross premiums, policy charges and fee income (2)		228			232			245			239			243
	925		883	Earned premiums, policy charges and fee income		224			230			232			231			232
	98.1%		94.7%	Benefits ratio		104.0	%		102.2	%		97.4	%		93.9	%		98.7	%
	25.3%		24.8%	Administrative operating expense ratio		25.4	%		25.9	%		23.3	%		23.8	%		28.4	%
				Persistency ratio		88.5	%		93.9	%		91.6	%		90.5	%		89.3	%

(1)	As of end of period.

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

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

LOGO

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

(in millions)


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

						DEFERRED POLICY ACQUISITION COSTS

						INDIVIDUAL ANNUITIES:
	2,390			3,019		Beginning balance		2,131			2,390			3,252			2,619			3,457
	1,016			1,038		Capitalization		228			254			274			288			200
	(338	)		(536	)	Amortization - operating results		(89	)		(86	)		(157	)		36			(131	)
	734			(1,132	)	Amortization - realized investment gains and losses		73			675			(747	)		518			288
	27			17		Impact of unrealized (gains) or losses on AFS securities		47			19			(3	)		(4	)		15
	—			(16	)	Other (1)		—			—			—			—			—

	3,829			2,390		Ending balance		2,390			3,252			2,619			3,457			3,829


						INDIVIDUAL LIFE INSURANCE:
	3,192			3,214		Beginning balance		3,263			3,192			3,242			3,238			2,994
	436			317		Capitalization		85			89			100			103			144
	(419	)		(135	)	Amortization - operating results		(47	)		(56	)		(76	)		(209	)		(78	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	(93	)		(204	)	Impact of unrealized (gains) or losses on AFS securities		(109	)		17			(28	)		(138	)		56

	3,116			3,192		Ending balance		3,192			3,242			3,238			2,994			3,116


						GROUP INSURANCE:
	132			138		Beginning balance		134			132			131			130			129
	55			—		Capitalization		—			—			—			—			55
	(5	)		(6	)	Amortization - operating results		(2	)		(1	)		(1	)		(1	)		(2	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	182			132		Ending balance		132			131			130			129			182


						DEFERRED SALES INDUCEMENTS

						INDIVIDUAL ANNUITIES:
	1,000			1,348		Beginning balance		915			1,000			1,306			1,032			1,275
	258			358		Capitalization		79			82			88			70			18
	(165	)		(262	)	Amortization - operating results		(41	)		(45	)		(68	)		(2	)		(50	)
	246			(464	)	Amortization - realized investment gains and losses		29			262			(295	)		172			107
	18			4		Impact of unrealized losses on AFS securities		18			7			1			3			7
	—			16		Other (1)		—			—			—			—			—

	1,357			1,000		Ending balance		1,000			1,306			1,032			1,275			1,357

(1)	“Other” activity for the twelve months ended December 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

Fourth Quarter 2012

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


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

								Revenues (1):
	24,484			15,015			63%	Premiums		4,018			4,605			5,164			6,814			7,901
	597			552			8%	Policy charges and fee income		146			152			150			139			156
	4,268			3,754			14%	Net investment income		1,018			1,014			1,030			1,119			1,105
	237			246			-4%	Asset management fees, commissions and other income		(4	)		46			62			82			47

	29,586			19,567			51%	Total revenues		5,178			5,817			6,406			8,154			9,209


								Benefits and Expenses (1):
	21,105			12,085			75%	Insurance and annuity benefits		3,175			3,752			4,303			5,982			7,068
	1,122			978			15%	Interest credited to policyholders’ account balances		276			278			270			303			271
	3			1			200%	Interest expense		—			1			(1	)		1			2
	(2,024	)		(1,684	)		-20%	Deferral of acquisition costs		(450	)		(470	)		(542	)		(494	)		(518	)
	1,173			880			33%	Amortization of acquisition costs		240			260			284			279			350
	5,503			5,044			9%	General and administrative expenses		1,435			1,399			1,414			1,301			1,389

	26,882			17,304			55%	Total benefits and expenses		4,676			5,220			5,728			7,372			8,562


	2,704			2,263			19%	Adjusted operating income before income taxes		502			597			678			782			647

(1)

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

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	Twelve Months Ended December 31, 2012									Quarter Ended December 31, 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		24,484			6,971			17,513			7,901			1,728			6,173
Policy charges and fee income		597			371			226			156			100			56
Net investment income		4,268			1,595			2,673			1,105			410			695
Asset management fees, commissions and other income		237			65			172			47			18			29

Total revenues		29,586			9,002			20,584			9,209			2,256			6,953


Benefits and Expenses (1):
Insurance and annuity benefits		21,105			5,799			15,306			7,068			1,471			5,597
Interest credited to policyholders’ account balances		1,122			261			861			271			52			219
Interest expense		3			—			3			2			—			2
Deferral of acquisition costs		(2,024	)		(819	)		(1,205	)		(518	)		(191	)		(327	)
Amortization of acquisition costs		1,173			441			732			350			115			235
General and administrative expenses		5,503			1,839			3,664			1,389			477			912

Total benefits and expenses		26,882			7,521			19,361			8,562			1,924			6,638


Adjusted operating income before income taxes		2,704			1,481			1,223			647			332			315


	Twelve Months Ended December 31, 2011									Quarter Ended December 31, 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		15,015			6,411			8,604			4,018			1,632			2,386
Policy charges and fee income		552			371			181			146			92			54
Net investment income		3,754			1,451			2,303			1,018			375			643
Asset management fees, commissions and other income		246			(31	)		277			(4	)		(14	)		10

Total revenues		19,567			8,202			11,365			5,178			2,085			3,093


Benefits and Expenses (1):
Insurance and annuity benefits		12,085			5,294			6,791			3,175			1,351			1,824
Interest credited to policyholders’ account balances		978			245			733			276			61			215
Interest expense		1			(1	)		2			—			(1	)		1
Deferral of acquisition costs		(1,684	)		(738	)		(946	)		(450	)		(184	)		(266	)
Amortization of acquisition costs		880			463			417			240			117			123
General and administrative expenses		5,044			1,693			3,351			1,435			441			994

Total benefits and expenses		17,304			6,956			10,348			4,676			1,785			2,891


Adjusted operating income before income taxes		2,263			1,246			1,017			502			300			202

(1)

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

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


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

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	5,729		5,210	Japan, excluding Gibraltar Life		1,317		1,531		1,393		1,416		1,389
	17,739		8,785	Gibraltar Life		2,440		2,837		3,530		5,143		6,229
	1,613		1,572	All other countries		407		389		391		394		439

	25,081		15,567	Total		4,164		4,757		5,314		6,953		8,057


				Annualized new business premiums:
	992		816	Japan, excluding Gibraltar Life		207		305		316		181		190
	2,724		2,042	Gibraltar Life		555		469		762		680		813
	362		334	All other countries		87		89		86		93		94

	4,078		3,192	Total		849		863		1,164		954		1,097


				Annualized new business premiums by distribution channel:
	1,354		1,150	Life Planners		294		394		402		274		284
	930		979	Gibraltar Life Consultants		280		193		316		208		213
	1,434		603	Banks		152		193		261		433		547
	360		460	Independent Agency		123		83		185		39		53

	4,078		3,192	Total		849		863		1,164		954		1,097


				Constant exchange rate basis (2):

				Net premiums, policy charges and fee income:
	5,723		5,193	Japan, excluding Gibraltar Life		1,283		1,526		1,394		1,398		1,405
	17,658		8,774	Gibraltar Life		2,364		2,771		3,559		5,076		6,252
	1,576		1,490	All other countries		403		377		390		388		421

	24,957		15,457	Total		4,050		4,674		5,343		6,862		8,078


				Annualized new business premiums:
	992		815	Japan, excluding Gibraltar Life		202		306		316		178		192
	2,704		2,031	Gibraltar Life		542		459		769		670		806
	355		311	All other countries		85		85		86		93		91

	4,051		3,157	Total		829		850		1,171		941		1,089


				Annualized new business premiums by distribution channel:
	1,347		1,126	Life Planners		287		391		402		271		283
	922		972	Gibraltar Life Consultants		273		189		318		203		212
	1,422		600	Banks		149		190		261		429		542
	360		459	Independent Agency		120		80		190		38		52

	4,051		3,157	Total		829		850		1,171		941		1,089

(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 80 per U.S. dollar; Korean won 1160 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

Fourth Quarter 2012

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


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

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		346			350			354			356			359
Gibraltar Life		401			400			400			406			411
All other countries		105			105			105			106			107

Total		852			855			859			868			877


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		2,678			2,725			2,773			2,794			2,825
Gibraltar Life		7,477			7,448			7,417			7,432			7,449
All other countries		1,575			1,606			1,624			1,643			1,662

Total		11,730			11,779			11,814			11,869			11,936


International life insurance policy persistency: (3)

Excluding Gibraltar Life:
13 months		92.8	%		93.0	%		93.0	%		93.0	%		93.0	%
25 months		85.4	%		85.2	%		85.4	%		85.7	%		86.1	%

Gibraltar Life:
13 months		93.1	%		93.0	%		90.6	%		90.4	%		89.7	%
25 months		85.8	%		85.8	%		81.6	%		82.0	%		82.4	%

Number of Life Planners at end of period:
Japan		3,137			3,165			3,116			3,169			3,216
All other countries		3,655			3,654			3,690			3,760			3,842

Total life planners		6,792			6,819			6,806			6,929			7,058


Gibraltar Life Consultants		12,791			12,219			12,031			11,683			11,333

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 80 per U.S. dollar; Korean won 1160 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

Fourth Quarter 2012

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 31, 2012									December 31, 2011
	Consolidated Portfolio		Closed Block Business		Financial Services Businesses					Consolidated Portfolio		Closed Block Business		Financial Services Businesses
	Consolidated Portfolio		Closed Block Business		Amount		% of Total			Consolidated Portfolio		Closed Block Business		Amount		% of Total
Fixed maturities:
Public, available-for-sale, at fair value		254,096		28,790		225,306		68.2	%		209,297		30,211		179,086		64.3	%
Public, held-to-maturity, at amortized cost		3,116		—		3,116		0.9	%		3,743		—		3,743		1.3	%
Private, available-for-sale, at fair value		46,875		17,629		29,246		8.8	%		43,243		16,305		26,938		9.7	%
Private, held-to-maturity, at amortized cost		1,152		—		1,152		0.3	%		1,364		—		1,364		0.5	%
Trading account assets supporting insurance liabilities, at fair value		20,590		—		20,590		6.2	%		19,481		—		19,481		7.0	%
Other trading account assets, at fair value		1,701		275		1,426		0.4	%		2,421		317		2,104		0.8	%
Equity securities, available-for-sale, at fair value		8,256		3,225		5,031		1.5	%		7,523		3,122		4,401		1.6	%
Commercial mortgage and other loans, at book value		36,231		9,608		26,623		8.1	%		34,113		9,040		25,073		9.0	%
Policy loans, at outstanding balance		11,575		5,120		6,455		2.0	%		11,559		5,296		6,263		2.2	%
Other long-term investments (1)		8,677		2,012		6,665		2.0	%		6,471		1,990		4,481		1.6	%
Short-term investments		6,385		1,261		5,124		1.6	%		6,137		528		5,609		2.0	%

Subtotal (2)		398,654		67,920		330,734		100.0	%		345,352		66,809		278,543		100.0	%

Invested assets of other entities and operations (3)		6,928		—		6,928					10,895		—		10,895

Total investments		405,582		67,920		337,662					356,247		66,809		289,438

Fixed Maturities by Credit Quality (2):


	December 31, 2012											December 31, 2011
	Financial Services Businesses											Financial Services Businesses
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total
Public Fixed Maturities:

NAIC Rating (4)
1		181,892		15,753		985		196,660		86.0	%		151,700		11,143		1,756		161,087		88.0	%
2		25,074		2,029		439		26,664		11.7	%		17,017		1,298		797		17,518		9.6	%

Subtotal - High or Highest Quality Securities		206,966		17,782		1,424		223,324		97.7	%		168,717		12,441		2,553		178,605		97.6	%

3		3,670		128		204		3,594		1.6	%		3,446		66		574		2,938		1.6	%
4		1,351		100		122		1,329		0.6	%		1,328		34		296		1,066		0.6	%
5		340		20		58		302		0.1	%		443		6		174		275		0.1	%
6		55		10		17		48		0.0	%		219		15		105		129		0.1	%

Subtotal - Other Securities		5,416		258		401		5,273		2.3	%		5,436		121		1,149		4,408		2.4	%

Total		212,382		18,040		1,825		228,597		100.0	%		174,153		12,562		3,702		183,013		100.0	%


Private Fixed Maturities:
NAIC Rating (4)
1		7,237		811		52		7,996		26.2	%		7,018		730		84		7,664		27.0	%
2		17,350		1,659		217		18,792		61.7	%		15,847		1,273		362		16,758		59.1	%

Subtotal - High or Highest Quality Securities		24,587		2,470		269		26,788		87.9	%		22,865		2,003		446		24,422		86.1	%

3		2,416		173		29		2,560		8.4	%		2,532		134		43		2,623		9.2	%
4		631		33		7		657		2.2	%		715		14		20		709		2.5	%
5		310		7		16		301		1.0	%		490		5		42		453		1.6	%
6		131		29		—		160		0.5	%		130		31		3		158		0.6	%

Subtotal - Other Securities		3,488		242		52		3,678		12.1	%		3,867		184		108		3,943		13.9	%

Total		28,075		2,712		321		30,466		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 December 31, 2012 and December 31, 2011, respectively, 104 securities with amortized cost of $793 million (fair value $847 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

Fourth Quarter 2012

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 31, 2012					December 31, 2011
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		124,710		82.2	%		111,857		80.3	%
Public, held-to-maturity, at amortized cost		3,116		2.0	%		3,743		2.7	%
Private, available-for-sale, at fair value		6,252		4.1	%		5,020		3.6	%
Private, held-to-maturity, at amortized cost		1,152		0.8	%		1,364		1.0	%
Trading account assets supporting insurance liabilities, at fair value		1,838		1.2	%		1,732		1.2	%
Other trading account assets, at fair value		1,195		0.8	%		1,496		1.1	%
Equity securities, available-for-sale, at fair value		2,126		1.4	%		1,932		1.4	%
Commercial mortgage and other loans, at book value		6,156		4.1	%		5,672		4.1	%
Policy loans, at outstanding balance		2,665		1.7	%		2,873		2.0	%
Other long-term investments (2)		2,215		1.5	%		2,892		2.1	%
Short-term investments		318		0.2	%		719		0.5	%

Total		151,743		100.0	%		139,300		100.0	%


	December 31, 2012					December 31, 2011
	Amount		% of Total			Amount		% of Total
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		100,596		56.2	%		67,229		48.3	%
Public, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available-for-sale, at fair value		22,994		12.9	%		21,918		15.7	%
Private, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		18,752		10.5	%		17,749		12.8	%
Other trading account assets, at fair value		231		0.1	%		608		0.4	%
Equity securities, available-for-sale, at fair value		2,905		1.6	%		2,469		1.8	%
Commercial mortgage and other loans, at book value		20,467		11.4	%		19,401		13.9	%
Policy loans, at outstanding balance		3,790		2.1	%		3,390		2.4	%
Other long-term investments (2)		4,450		2.5	%		1,589		1.2	%
Short-term investments		4,806		2.7	%		4,890		3.5	%

Total		178,991		100.0	%		139,243		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

Fourth Quarter 2012

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended December 31
	2012									2011
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)			Amount			Realized Gains / (Losses)			Yield (3)			Amount			Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities		3.66	%		2,035			76			3.75	%		1,849			(50	)
Equity securities		5.95	%		63			6			5.16	%		55			(22	)
Commercial mortgage and other loans		5.40	%		295			19			5.30	%		269			27
Policy loans		4.83	%		78			—			4.66	%		72			—
Short-term investments and cash equivalents		0.21	%		8			—			0.28	%		9			—
Other investments		4.04	%		74			(593	)		1.75	%		31			(440	)

Gross investment income before investment expenses		3.69	%		2,553			(492	)		3.69	%		2,285			(485	)
Investment expenses		-0.15	%		(87	)		—			-0.12	%		(58	)		—

Subtotal		3.54	%		2,466			(492	)		3.57	%		2,227			(485	)

Investment results of other entities and operations (2)					285			92						307			10
Less, investment income related to adjusted operating income reconciling items					(38	)								(12	)

Total					2,713			(400	)					2,522			(475	)


	Twelve Months Ended December 31
	2012									2011
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)			Amount			Realized Gains / (Losses)			Yield (3)(4)			Amount			Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities		3.72	%		7,645			(148	)		3.91	%		7,063			(164	)
Equity securities		6.14	%		249			(54	)		6.01	%		240			(120	)
Commercial mortgage and other loans		5.36	%		1,118			30			5.47	%		1,033			74
Policy loans		4.73	%		293			—			4.75	%		277			—
Short-term investments and cash equivalents		0.23	%		33			—			0.39	%		49			1
Other investments		4.04	%		268			(1,642	)		3.77	%		243			2,024

Gross investment income before investment expenses		3.74	%		9,606			(1,814	)		3.90	%		8,905			1,815
Investment expenses		-0.13	%		(273	)		—			-0.13	%		(230	)		—

Subtotal		3.61	%		9,333			(1,814	)		3.77	%		8,675			1,815

Investment results of other entities and operations (2)					1,175			130						1,235			171
Less, investment income related to adjusted operating income reconciling items					(138	)								(107	)

Total					10,370			(1,684	)					9,803			1,986

(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 year ended December 31, 2011 are weighted for ten months of income and assets related to the Star and Edison businesses.

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	2012									2011
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (1)			Amount			Realized Gains / (Losses)			Yield (1)			Amount			Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities		2.73	%		861			21			2.71	%		797			(86	)
Equity securities		3.14	%		15			1			3.25	%		18			(17	)
Commercial mortgage and other loans		4.14	%		63			7			4.06	%		57			10
Policy loans		3.74	%		26			—			3.35	%		24			—
Short-term investments and cash equivalents		0.13	%		1			—			0.42	%		3			—
Other investments (3)		5.35	%		48			(220	)		1.47	%		18			(9	)

Gross investment income before investment expenses		2.82	%		1,014			(191	)		2.69	%		917			(102	)
Investment expenses		-0.13	%		(47	)		—			-0.12	%		(40	)		—

Total		2.69	%		967			(191	)		2.57	%		877			(102	)


	Twelve Months Ended December 31
	2012									2011
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (1)			Amount			Realized Gains / (Losses)			Yield (1)(2)			Amount			Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities		2.75	%		3,317			(188	)		2.75	%		2,844			(323	)
Equity securities		3.36	%		65			(88	)		3.42	%		73			(138	)
Commercial mortgage and other loans		4.15	%		237			16			4.16	%		212			24
Policy loans		3.60	%		99			—			3.44	%		90			—
Short-term investments and cash equivalents		0.16	%		5			—			0.68	%		23			1
Other investments (3)		4.71	%		181			(142	)		3.72	%		163			396

Gross investment income before investment expenses		2.83	%		3,904			(402	)		2.82	%		3,405			(40	)
Investment expenses		-0.13	%		(184	)		—			-0.13	%		(159	)		—

Total		2.70	%		3,720			(402	)		2.69	%		3,246			(40	)

(1)

(2)	Yields for the year ended December 31, 2011 are weighted for ten 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

Fourth Quarter 2012

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	2012									2011
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (2)			Amount			Realized Gains / (Losses)			Yield (2)			Amount			Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		4.88	%		1,174			55			5.28	%		1,052			36
Equity securities		8.38	%		48			5			7.22	%		37			(5	)
Commercial mortgage and other loans		5.90	%		232			12			5.76	%		212			17
Policy loans		5.64	%		52			—			5.78	%		48			—
Short-term investments and cash equivalents		0.24	%		7			—			0.24	%		6			—
Other investments		2.79	%		26			(373	)		2.47	%		13			(431	)

Gross investment income before investment expenses		4.62	%		1,539			(301	)		4.90	%		1,368			(383	)
Investment expenses		-0.16	%		(40	)		—			-0.12	%		(18	)		—

Total		4.46	%		1,499			(301	)		4.78	%		1,350			(383	)


	Twelve Months Ended December 31
	2012									2011
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (2)			Amount			Realized Gains / (Losses)			Yield (2)			Amount			Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		5.09	%		4,328			40			5.44	%		4,219			159
Equity securities		8.70	%		184			34			9.04	%		167			18
Commercial mortgage and other loans		5.82	%		881			14			5.94	%		821			50
Policy loans		5.62	%		194			—			5.81	%		187			—
Short-term investments and cash equivalents		0.25	%		28			—			0.28	%		26			—
Other investments		3.13	%		87			(1,500	)		3.86	%		80			1,628

Gross investment income before investment expenses		4.80	%		5,702			(1,412	)		5.11	%		5,500			1,855
Investment expenses		-0.13	%		(89	)		—			-0.12	%		(71	)		—

Total		4.67	%		5,613			(1,412	)		4.99	%		5,429			1,855

(1)

(2)

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Years ended December 31							2011												2012
2010			2009				1Q			2Q			3Q			4Q			1Q			2Q			3Q

						*Financial Services Businesses:*
						Pre-tax adjusted operating income (loss) by division:
	2,021			1,232		U.S. Retirement Solutions and Investment Management Division		608			613			48			769			705			304			503
	656			817		U.S. Individual Life and Group Insurance Division		133			176			156			180			72			94			147
	1,887			1,651		International Insurance Division		618			491			652			502			597			678			782
	(936	)		(724	)	Corporate and other operations		(259	)		(229	)		(337	)		(285	)		(326	)		(225	)		(413	)

	3,628			2,976		Total pre-tax adjusted operating income		1,100			1,051			519			1,166			1,048			851			1,019
	950			727		Income taxes, applicable to adjusted operating income		296			278			106			311			283			205			270

	2,678			2,249		Financial Services Businesses after-tax adjusted operating income		804			773			413			855			765			646			749


						Reconciling items:
	(27	)		(1,669	)	Realized investment gains (losses), net, and related charges and adjustments		(375	)		1			1,817			(596	)		(1,838	)		2,030			(1,303	)
	501			1,601		Investment gains (losses) on trading account assets supporting insurance liabilities, net		(17	)		177			10			53			234			4			264
	(631	)		(899	)	Change in experience-rated contractholder liabilities due to asset value changes		34			(178	)		68			(47	)		(246	)		54			(254	)
	18			2,117		Divested businesses		(4	)		10			43			52			4			24			(685	)
	(95	)		(2,364	)	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(133	)		19			(87	)		12			5			8			(40	)

	(234	)		(1,214	)	Total reconciling items, before income taxes		(495	)		29			1,851			(526	)		(1,841	)		2,120			(2,018	)
	41			(657	)	Income taxes, not applicable to adjusted operating income		(144	)		14			745			(186	)		(113	)		536			(623	)

	(275	)		(557	)	Total reconciling items, after income taxes		(351	)		15			1,106			(340	)		(1,728	)		1,584			(1,395	)

	2,403			1,692		Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		453			788			1,519			515			(963	)		2,230			(646	)
	71			1,557		Equity in earnings of operating joint ventures, net of taxes and earnings from continuing operations attributable to noncontrolling interests		79			(19	)		57			(7	)		(4	)		(9	)		20

	2,474			3,249		Income (loss) from continuing operations attributable to Prudential Financial, Inc.		532			769			1,576			508			(967	)		2,221			(626	)
	11			(34	)	Earnings from continuing operations attributable to noncontrolling interests		25			29			10			8			11			15			25

	2,485			3,215		Income (loss) from continuing operations (after-tax) of Financial Services Businesses		557			798			1,586			516			(956	)		2,236			(601	)
	32			(19	)	Income (loss) from discontinued operations, net of taxes, attributable to Prudential Financial, Inc.		14			16			(9	)		14			7			8			(1	)

	2,517			3,196		Net income (loss) of Financial Services Businesses		571			814			1,577			530			(949	)		2,244			(602	)
	11			(34	)	Less: Income (loss) attributable to noncontrolling interests		25			29			10			8			11			15			25

	2,506			3,230		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		546			785			1,567			522			(960	)		2,229			(627	)


	11.2%			11.4%		Operating Return on Average Equity (based on adjusted operating income)		12.5%			11.7%			6.1%			12.2%			11.4%			9.5%			10.6%

						*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
	2,506			3,230		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		546			785			1,567			522			(960	)		2,229			(627	)
	495			(286	)	Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		22			10			32			82			21			(5	)		43

	3,001			2,944		Consolidated net income (loss) attributable to Prudential Financial, Inc.		568			795			1,599			604			(939	)		2,224			(584	)

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Years ended December 31							2011												2012
2010			2009				1Q			2Q			3Q			4Q			1Q			2Q			3Q

						Earnings per share of Common Stock (diluted): (1)
	5.67			5.07		Financial Services Businesses after-tax adjusted operating income		1.63			1.57			0.86			1.78			1.61			1.38			1.59

						Reconciling items:
	(0.06	)		(3.72	)	Realized investment gains (losses), net, and related charges and adjustments		(0.76	)		—			3.71			(1.25	)		(3.85	)		4.29			(2.76	)
	1.05			3.57		Investment gains (losses) on trading account assets supporting insurance liabilities, net		(0.03	)		0.36			0.02			0.11			0.49			0.01			0.56
	(1.33	)		(2.01	)	Change in experience-rated contractholder liabilities due to asset value changes		0.07			(0.36	)		0.14			(0.10	)		(0.52	)		0.11			(0.54	)
	0.04			4.72		Divested businesses		(0.01	)		0.02			0.09			0.11			0.01			0.05			(1.45	)
	—			(0.02	)	Difference in earnings allocated to participating unvested share-based payment awards		0.01			—			(0.03	)		—			0.02			(0.03	)		0.02

	(0.30	)		2.54		Total reconciling items, before income taxes		(0.72	)		0.02			3.93			(1.13	)		(3.85	)		4.43			(4.17	)
	0.12			0.34		Income taxes, not applicable to adjusted operating income		(0.18	)		0.03			1.59			(0.40	)		(0.20	)		1.14			(1.24	)

	(0.42	)		2.20		Total reconciling items, after income taxes		(0.54	)		(0.01	)		2.34			(0.73	)		(3.65	)		3.29			(2.93	)

	5.25			7.27		Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		1.09			1.56			3.20			1.05			(2.04	)		4.67			(1.34	)
	0.07			(0.04	)	Income (loss) from discontinued operations, net of taxes, attributable to Prudential Financial, Inc.		0.03			0.03			(0.02	)		0.03			0.01			0.02			—

	5.32			7.23		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		1.12			1.59			3.18			1.08			(2.03	)		4.69			(1.34	)


	466.8			444.6		Weighted average number of outstanding Common shares (basic)		484.9			486.0			481.2			469.2			469.2			466.1			464.4
	475.4			448.2		Weighted average number of outstanding Common shares (diluted) (2)		493.9			494.8			489.3			477.0			477.5			473.5			471.8

	36			43		Direct equity adjustments for earnings per share calculation		9			8			8			(1	)		8			8			4
	17			5		Earnings related to interest, net of tax, on exchangeable surplus notes (2)		4			5			4			4			4			5			4

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	34			26		Financial Services Businesses after-tax adjusted operating income		11			10			6			11			8			6			8
	32			37		Income from continuing operations (after-tax) of Financial Services Businesses		7			11			21			9			0			21			0

(1)

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

RECLASSIFIED OPERATIONS HIGHLIGHTS


Years ended December 31					2011								2012
2010		2009			1Q		2Q		3Q		4Q		1Q		2Q		3Q

				*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
	237.8		190.8	Institutional customers		248.9		258.9		261.2		271.8		286.1		289.2		303.1
	110.6		91.7	Retail customers		118.7		119.8		119.4		119.3		125.1		131.7		133.9
	257.4		232.4	General account		298.2		305.2		324.2		326.7		321.3		331.4		340.7

	605.8		514.9	Total Investment Management and Advisory Services		665.8		683.9		704.8		717.8		732.5		752.3		777.7
	149.8		122.3	Non-proprietary assets under management		161.7		167.3		136.1		152.2		176.8		176.2		193.0

	755.6		637.2	Total managed by U.S. Retirement Solutions and Investment Management Division		827.5		851.2		840.9		870.0		909.3		928.5		970.7
	13.1		12.4	Managed by U.S. Individual Life and Group Insurance Division		13.3		13.5		13.6		13.8		14.8		13.6		13.7
	15.3		17.7	Managed by International Insurance Division		17.7		18.5		16.8		16.9		18.8		19.0		20.5

	784.0		667.3	Total assets under management		858.5		883.2		871.3		900.7		942.9		961.1		1,004.9
	84.1		119.5	Client assets under administration		86.6		89.4		82.6		85.7		89.2		87.1		88.4

	868.1		786.8	Total assets under management and administration		945.1		972.6		953.9		986.4		1,032.1		1,048.2		1,093.3

(1)	As of end of period.

(2)	At fair market value.

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Years ended December 31							2011												2012
2010			2009				1Q			2Q			3Q			4Q			1Q			2Q			3Q
						Revenues (1):
	14,912			12,925		Premiums		4,741			5,419			5,332			5,546			5,980			6,695			8,263
	3,482			3,032		Policy charges and fee income		982			1,038			979			1,033			1,078			1,085			1,251
	8,501			8,144		Net investment income		2,277			2,496			2,508			2,522			2,500			2,526			2,631
	3,192			2,279		Asset management fees, commissions and other income		1,039			1,035			952			1,034			937			941			1,107

	30,087			26,380		Total revenues		9,039			9,988			9,771			10,135			10,495			11,247			13,252


						Benefits and Expenses (1):
	14,557			12,382		Insurance and annuity benefits		4,559			5,074			5,340			4,946			5,484			6,404			8,229
	3,418			3,376		Interest credited to policyholders’ account balances		829			934			1,040			953			948			971			941
	1,049			955		Interest expense		279			289			296			299			308			311			311
	(2,432	)		(2,135	)	Deferral of acquisition costs		(732	)		(757	)		(777	)		(761	)		(809	)		(911	)		(882	)
	1,027			937		Amortization of acquisition costs		356			423			408			378			406			513			466
	8,840			7,889		General and administrative expenses		2,648			2,974			2,945			3,154			3,110			3,108			3,168

	26,459			23,404		Total benefits and expenses		7,939			8,937			9,252			8,969			9,447			10,396			12,233


	3,628			2,976		Adjusted operating income before income taxes		1,100			1,051			519			1,166			1,048			851			1,019


						Reconciling items:
	152			(1,213	)	Realized investment gains (losses), net, and related adjustments		(365	)		155			3,385			(672	)		(2,716	)		3,058			(1,951	)
	(179	)		(456	)	Related charges		(10	)		(154	)		(1,568	)		76			878			(1,028	)		648

	(27	)		(1,669	)	Total realized investment gains (losses), net, and related charges and adjustments		(375	)		1			1,817			(596	)		(1,838	)		2,030			(1,303	)


	501			1,601		Investment gains on trading account assets supporting insurance liabilities, net		(17	)		177			10			53			234			4			264
	(631	)		(899	)	Change in experience-rated contractholder liabilities due to asset value changes		34			(178	)		68			(47	)		(246	)		54			(254	)
	18			2,117		Divested businesses		(4	)		10			43			52			4			24			(685	)
	(95	)		(2,364	)	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(133	)		19			(87	)		12			5			8			(40	)

	(234	)		(1,214	)	Total reconciling items, before income taxes		(495	)		29			1,851			(526	)		(1,841	)		2,120			(2,018	)


	3,394			1,762		Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		605			1,080			2,370			640			(793	)		2,971			(999	)
	991			70		Income tax expense		152			292			851			125			170			741			(353	)

	2,403			1,692		Income (loss) from continuing operations before equity in earnings of operating joint ventures		453			788			1,519			515			(963	)		2,230			(646	)

(1)

Page 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

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

(in millions)


Years ended December 31							2011												2012
2010			2009				1Q			2Q			3Q			4Q			1Q			2Q			3Q
						Revenues (1):
	1,232			690		Premiums		211			244			189			257			116			248			161
	1,662			1,189		Policy charges and fee income		492			520			519			512			544			556			584
	4,237			4,381		Net investment income		1,044			1,034			997			1,011			999			983			1,002
	3,252			2,282		Asset management fees, commissions and other income		944			1,074			911			1,081			973			929			1,087

	10,383			8,542		Total revenues		2,691			2,872			2,616			2,861			2,632			2,716			2,834


						Benefits and Expenses (1):
	2,139			1,469		Insurance and annuity benefits		426			530			698			416			251			611			736
	2,415			2,525		Interest credited to policyholders’ account balances		550			563			623			549			544			568			504
	96			68		Interest expense		34			35			35			35			35			39			37
	(1,154	)		(893	)	Deferral of acquisition costs		(361	)		(249	)		(243	)		(240	)		(265	)		(288	)		(305	)
	272			243		Amortization of acquisition costs		114			141			249			98			97			168			(20	)
	4,594			3,898		General and administrative expenses		1,320			1,239			1,206			1,234			1,265			1,314			1,379

	8,362			7,310		Total benefits and expenses		2,083			2,259			2,568			2,092			1,927			2,412			2,331


	2,021			1,232		Adjusted operating income before income taxes		608			613			48			769			705			304			503

(1)

Page 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - ASSET MANAGEMENT SEGMENT

(in millions)


Years ended December 31							2011												2012
2010			2009				1Q			2Q			3Q			4Q			1Q			2Q			3Q
						Revenues (1):
	—			—		Premiums		—			—			—			—			—			—			—
	—			—		Policy charges and fee income		—			—			—			—			—			—			—
	121			93		Net investment income		38			32			16			32			23			15			38
	1,884			1,275		Asset management fees, commissions and other income		549			659			524			681			544			491			616

	2,005			1,368		Total revenues		587			691			540			713			567			506			654


						Benefits and Expenses (1):
	—			—		Insurance and annuity benefits		—			—			—			—			—			—			—
	—			—		Interest credited to policyholders’ account balances		—			—			—			—			—			—			—
	13			26		Interest expense		3			4			3			3			3			5			3
	(24	)		(22	)	Deferral of acquisition costs		(7	)		(6	)		(5	)		(5	)		(7	)		(6	)		(7	)
	25			18		Amortization of acquisition costs		6			6			7			6			6			6			6
	1,485			1,277		General and administrative expenses		423			452			406			453			437			451			466

	1,499			1,299		Total benefits and expenses		425			456			411			457			439			456			468


	506			69		Adjusted operating income before income taxes		162			235			129			256			128			50			186

(1)	Revenues exclude realized investment gains, net of losses and related adjustments. Benefits and expenses include charges for income attributable to noncontrolling interests.

Page 40

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


Years ended December 31							2011												2012
2010			2009				1Q			2Q			3Q			4Q			1Q			2Q			3Q
						Revenues (1):
	9,094			7,830		Premiums		3,256			3,903			3,838			4,018			4,605			5,164			6,814
	407			374		Policy charges and fee income		113			143			150			146			152			150			139
	2,457			2,158		Net investment income		761			955			1,020			1,018			1,014			1,030			1,119
	113			53		Asset management fees, commissions and other income		151			9			90			(4	)		46			62			82

	12,071			10,415		Total revenues		4,281			5,010			5,098			5,178			5,817			6,406			8,154


						Benefits and Expenses (1):
	7,315			6,139		Insurance and annuity benefits		2,706			3,170			3,034			3,175			3,752			4,303			5,982
	562			480		Interest credited to policyholders’ account balances		161			249			292			276			278			270			303
	3			4		Interest expense		—			1			—			—			1			(1	)		1
	(1,014	)		(880	)	Deferral of acquisition costs		(321	)		(446	)		(467	)		(450	)		(470	)		(542	)		(494	)
	619			571		Amortization of acquisition costs		186			219			235			240			260			284			279
	2,699			2,450		General and administrative expenses		931			1,326			1,352			1,435			1,399			1,414			1,301

	10,184			8,764		Total benefits and expenses		3,663			4,519			4,446			4,676			5,220			5,728			7,372


	1,887			1,651		Adjusted operating income before income taxes		618			491			652			502			597			678			782

(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 41

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - GIBRALTAR LIFE & OTHER OPERATIONS

(in millions)


Years ended December 31							2011												2012
2010			2009				1Q			2Q			3Q			4Q			1Q			2Q			3Q
						Revenues (1):
	3,446			2,855		Premiums		1,601			2,391			2,226			2,386			2,779			3,474			5,087
	82			79		Policy charges and fee income		23			52			52			54			58			56			56
	1,201			1,089		Net investment income		410			608			642			643			628			649			701
	90			(1	)	Asset management fees, commissions and other income		150			15			102			10			35			35			73

	4,819			4,022		Total revenues		2,184			3,066			3,022			3,093			3,500			4,214			5,917


						Benefits and Expenses (1):
	2,721			2,238		Insurance and annuity benefits		1,317			1,941			1,709			1,824			2,262			2,901			4,546
	349			294		Interest credited to policyholders’ account balances		99			193			226			215			210			209			223
	1			1		Interest expense		0			1			—			1			1			(1	)		1
	(379	)		(281	)	Deferral of acquisition costs		(129	)		(269	)		(282	)		(266	)		(258	)		(316	)		(304	)
	216			186		Amortization of acquisition costs		73			107			114			123			134			160			203
	1,173			992		General and administrative expenses		506			917			934			994			936			957			859

	4,081			3,430		Total benefits and expenses		1,866			2,890			2,701			2,891			3,285			3,910			5,528


	738			592		Adjusted operating income before income taxes		318			176			321			202			215			304			389

(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 42

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS

(in millions)


Years ended December 31							2011												2012
2010			2009				1Q			2Q			3Q			4Q			1Q			2Q			3Q
						Revenues (1):
	(27	)		(22	)	Premiums		(10	)		(11	)		4			(5	)		(10	)		(7	)		(7	)
	(42	)		(39	)	Policy charges and fee income		(8	)		(9	)		(9	)		(9	)		(9	)		(10	)		(9	)
	330			244		Net investment income		91			117			98			104			87			111			101
	(485	)		(421	)	Asset management fees, commissions and other income		(130	)		(130	)		(126	)		(147	)		(189	)		(164	)		(189	)

	(224	)		(238	)	Total revenues		(57	)		(33	)		(33	)		(57	)		(121	)		(70	)		(104	)


						Benefits and Expenses (1):
	45			25		Insurance and annuity benefits		2			7			149			(12	)		8			38			78
	(70	)		(121	)	Interest credited to policyholders’ account balances		(10	)		(8	)		(9	)		(7	)		(7	)		(6	)		(5	)
	788			702		Interest expense		200			205			213			191			195			193			190
	63			57		Deferral of acquisition costs		22			16			15			14			15			19			20
	(40	)		(36	)	Amortization of acquisition costs		(12	)		(15	)		(22	)		(9	)		(8	)		(16	)		(3	)
	(74	)		(141	)	General and administrative expenses		—			(9	)		(42	)		51			2			(73	)		29

	712			486		Total benefits and expenses		202			196			304			228			205			155			309


	(936	)		(724	)	Adjusted operating loss before income taxes		(259	)		(229	)		(337	)		(285	)		(326	)		(225	)		(413	)

(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 43

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

RECLASSIFIED SUPPLEMENTARY INFORMATION - INTERNATIONAL INSURANCE SEGMENT

(dollar amounts in millions, unless otherwise noted)


Year ended December 31			2011								2012
2010			1Q		2Q		3Q		4Q		1Q		2Q		3Q

		Constant exchange rate basis (1):

		Net premiums, policy charges and fee income:
	4,852	Japan, excluding Gibraltar Life		1,404		1,224		1,282		1,283		1,526		1,394		1,398
	3,841	Gibraltar Life		1,673		2,490		2,247		2,364		2,771		3,559		5,076
	1,439	All other countries		350		366		371		403		377		390		388

	10,132	Total		3,427		4,080		3,900		4,050		4,674		5,343		6,862


		Annualized new business premiums:
	731	Japan, excluding Gibraltar Life		228		179		206		202		306		316		178
	928	Gibraltar Life		380		547		562		542		459		769		670
	270	All other countries		77		74		75		85		85		86		93

	1,929	Total		685		800		843		829		850		1,171		941


		Annualized new business premiums by distribution channel:
	1,001	Life Planners		305		253		281		287		391		402		271
	529	Gibraltar Life Advisors		162		271		266		273		189		318		203
	341	Banks		137		143		171		149		190		261		429
	58	Independent Agency		81		133		125		120		80		190		38

	1,929	Total		685		800		843		829		850		1,171		941


		Face amount of individual policies in force at end of period (in billions) (1)(2):
	338	Japan, excluding Gibraltar Life		341		342		344		346		350		354		356
	245	Gibraltar Life (3)		399		397		399		401		400		400		406
	100	All other countries		101		102		103		105		105		105		106

	683	Total		841		841		846		852		855		859		868

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 80 per U.S. dollar; Korean won 1160 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.

(2)	Direct business only; policy count includes annuities.

(3)	Includes Star/Edison business from February 1, 2011 date of acquisition, amounting to face amount of $135 billion and 3.529 million individual policies as of that date.

Page 44

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

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


							Supplementary Revenue Information (in millions):
Years ended December 31					% Change			2011								2012
2010		2009			% Change			1Q		2Q		3Q		4Q		1Q		2Q			3Q

							Analysis of revenues by type:
	1,326		1,097			21%	Asset management fees		374		387		386		394		403		407			424
	210		(79	)		366%	Other related revenues		57		149		35		98		30		(25	)		113
	469		350			34%	Service, distribution and other revenues		156		155		119		221		134		124			117

	2,005		1,368			47%	Total Asset Management segment revenues		587		691		540		713		567		506			654


							Analysis of asset management fees by source:
	639		522			22%	Institutional customers		178		182		182		187		190		190			194
	372		288			29%	Retail customers		111		115		113		113		121		124			132
	315		287			10%	General account		85		90		91		94		92		93			98

	1,326		1,097			21%	Total asset management fees		374		387		386		394		403		407			424


							Supplementary Assets Under Management Information (in billions):
Years ended December 31								2011								2012
2010		2009						1Q		2Q		3Q		4Q		1Q		2Q			3Q
							Equity:
	53.3		49.8				Institutional customers		54.7		53.2		44.1		46.3		53.3		48.0			51.5
	73.9		59.3				Retail customers		80.6		80.0		64.9		71.7		83.9		80.9			86.3
	7.7		6.6				General account		8.1		9.1		8.4		8.7		9.2		8.5			9.0

	134.9		115.7						143.4		142.3		117.4		126.7		146.4		137.4			146.8
							Fixed Income:
	160.9		120.8				Institutional customers		169.1		179.1		190.1		197.8		203.0		211.1			221.0
	35.2		30.8				Retail customers		36.5		38.2		53.1		46.2		39.8		49.5			46.2
	248.8		224.9				General account		289.1		294.8		314.5		316.7		310.7		321.4			330.3

	444.9		376.5						494.7		512.1		557.7		560.7		553.5		582.0			597.5
							Real estate:
	23.6		20.2				Institutional customers		25.1		26.6		27.0		27.7		29.8		30.1			30.6
	1.5		1.6				Retail customers		1.6		1.6		1.4		1.4		1.4		1.3			1.4
	0.9		0.9				General account		1.0		1.3		1.3		1.3		1.4		1.5			1.4

	26.0		22.7						27.7		29.5		29.7		30.4		32.6		32.9			33.4
							Total:
	237.8		190.8				Institutional customers		248.9		258.9		261.2		271.8		286.1		289.2			303.1
	110.6		91.7				Retail customers		118.7		119.8		119.4		119.3		125.1		131.7			133.9
	257.4		232.4				General account		298.2		305.2		324.2		326.7		321.3		331.4			340.7

	605.8		514.9						665.8		683.9		704.8		717.8		732.5		752.3			777.7

Page 45

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

RECLASSIFIED SUPPLEMENTARY 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
2010			2009				1Q			2Q			3Q			4Q			1Q			2Q			3Q

						Institutional Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	154.5			130.2		Beginning assets under management		200.1			211.9			221.6			224.0			234.2			247.5			251.4
	53.2			34.8		Additions		13.0			11.1			11.0			14.3			14.1			11.2			12.7
	(24.5	)		(21.6	)	Withdrawals		(6.9	)		(6.2	)		(8.7	)		(10.7	)		(8.7	)		(11.2	)		(9.3	)
	17.0			12.5		Change in market value		5.4			4.7			0.4			6.3			7.7			3.7			8.9
	(0.8	)		(1.5	)	Net money market flows		(0.1	)		—			(0.2	)		0.3			0.1			0.1			0.1
	0.7			0.1		Other (1)		0.4			0.1			(0.1	)		—			0.1			0.1			—

	200.1			154.5		Ending assets under management		211.9			221.6			224.0			234.2			247.5			251.4			263.8
	37.7			36.3		Affiliated institutional assets under management		37.0			37.3			37.2			37.6			38.6			37.8			39.3

	237.8			190.8		Total assets managed for institutional customers at end of period		248.9			258.9			261.2			271.8			286.1			289.2			303.1


	28.7			13.2		Net institutional additions, excluding money market activity		6.1			4.9			2.3			3.6			5.4			—			3.4


						Retail Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	61.4			41.0		Beginning assets under management		75.1			80.7			82.1			72.2			69.6			81.1			81.1
	27.2			21.7		Additions		8.1			6.1			7.5			8.2			9.4			9.5			8.0
	(19.4	)		(14.8	)	Withdrawals		(5.3	)		(6.1	)		(6.8	)		(6.0	)		(6.1	)		(5.9	)		(5.5	)
	8.2			13.5		Change in market value		3.0			1.2			(9.1	)		5.2			8.2			(3.6	)		4.3
	(2.8	)		(0.2	)	Net money market flows		(0.1	)		—			—			(1.0	)		—			—			(0.1	)
	0.5			0.2		Other (2)		(0.1	)		0.2			(1.5	)		(9.0	)		—			—			—

	75.1			61.4		Ending assets under management		80.7			82.1			72.2			69.6			81.1			81.1			87.8
	35.5			30.3		Affiliated retail assets under management		38.0			37.7			47.2			49.7			44.0			50.6			46.1

	110.6			91.7		Total assets managed for retail customers at end of period		118.7			119.8			119.4			119.3			125.1			131.7			133.9


	7.8			6.9		Net retail additions, excluding money market activity		2.8			—			0.7			2.2			3.3			3.6			2.5

(1)	“Other” activity represents transfers from the Retirement Segment, as a result of changes in the client contract form; and FX related to International assets under management.

(2)	“Other” activity represents the sale of our investment in the Afore XXI operating joint venture in fourth quarter 2011, the effect of foreign exchange rate changes, and a reclassification in first quarter 2011 of certain fund balances to affiliated retail assets under management.

Page 46

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth 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 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 - Operating Debt - Investment Related:

Debt issued to finance specific investment assets or portfolios of investment assets, including institutional spread lending investment portfolios as well as institutional and insurance company portfolio cash flow timing differences.

9. Borrowings - Operating Debt - Specified Businesses:

Borrowings primarily associated with the individual annuity and asset management businesses.

Page 47

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

KEY DEFINITIONS AND FORMULAS

10. 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.

11. 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.

12. 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.

13. 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.

14. 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.

15. 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.

16. Gibraltar Life Consultants:

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

17. 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.

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

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

19. 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.

20. 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 48

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

KEY DEFINITIONS AND FORMULAS

21. 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.

22. International Life Planners:

Insurance agents in our insurance operations outside the United States, excluding Gibraltar Life Advisors.

23. 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.

24. 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 1.22% for the twelve months ended December 31, 2012, 11.1% for the twelve months ended December 31, 2011, (2.3)% for the three months ended December 31, 2012, (6.7)% for the three months ended September 30, 2012, 25.4% for the three months ended June 30, 2012, (11.6)% for the three months ended March 31, 2012, and 6.2% for the three months ended December 31, 2011.

25. 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).

26. 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.

27. Prudential Agents:

Insurance agents in our insurance operations in the United States.

28. 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.

29. 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.

30. 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 49

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2012

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of February 6, 2013


	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 February 6, 2013

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 50

PRUDENTIAL FINANCIAL INC - FORM 8-K - EX-99.2 - February 6, 2013

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