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

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8-K - FORM 8-K - PRUDENTIAL FINANCIAL INC	d802170d8k.htm
EX-99.1 - EX-99.1 - PRUDENTIAL FINANCIAL INC	d802170dex991.htm

Exhibit 99.2

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

THIRD QUARTER 2014

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.

November 5, 2014

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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 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

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF THIRD QUARTER 2013 AND 2014 ACTUARIAL UPDATES - ADJUSTED OPERATING INCOME		35

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2013 AND 2014 ACTUARIAL UPDATES - ADJUSTED OPERATING INCOME		36

KEY DEFINITIONS AND FORMULAS		37-39

RATINGS AND INVESTOR INFORMATION		40

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date						% Change			2013						2014
2014			2013			% Change			3Q			4Q			1Q			2Q			3Q

								*Financial Services Businesses:*
								Pre-tax adjusted operating income (loss) by division:
	2,644			2,851			-7%	U.S. Retirement Solutions and Investment Management Division		1,231			996			945			876			823
	359			525			-32%	U.S. Individual Life and Group Insurance Division		216			215			131			204			24
	2,566			2,505			2%	International Insurance Division		778			647			837			884			845
	(1,022	)		(973	)		-5%	Corporate and other operations		(312	)		(397	)		(342	)		(341	)		(339	)

	4,547			4,908			-7%	Total pre-tax adjusted operating income		1,913			1,461			1,571			1,623			1,353
	1,200			1,370			-12%	Income taxes, applicable to adjusted operating income		540			413			434			447			319

	3,347			3,538			-5%	Financial Services Businesses after-tax adjusted operating income		1,373			1,048			1,137			1,176			1,034


								Reconciling items:
	(1,413	)		(5,789	)		76%	Realized investment losses, net, and related charges and adjustments		(556	)		(2,360	)		(8	)		(273	)		(1,132	)
	195			(273	)		171%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		103			23			101			225			(131	)
	(139	)		255			-155%	Change in experience-rated contractholder liabilities due to asset value changes		(73	)		(28	)		(43	)		(189	)		93
	113			(12	)		1042%	Divested businesses		43			41			73			47			(7	)
	37			1			3600%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		11			27			11			18			8

	(1,207	)		(5,818	)		79%	Total reconciling items, before income taxes		(472	)		(2,297	)		134			(172	)		(1,169	)
	(625	)		(2,004	)		69%	Income taxes, not applicable to adjusted operating income		(67	)		(853	)		39			(58	)		(606	)

	(582	)		(3,814	)		85%	Total reconciling items, after income taxes		(405	)		(1,444	)		95			(114	)		(563	)

	2,765			(276	)		1102%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		968			(396	)		1,232			1,062			471
	(34	)		(21	)		-62%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(10	)		(27	)		(11	)		(17	)		(6	)

	2,731			(297	)		1020%	Income (loss) from continuing operations attributable to Prudential Financial, Inc.		958			(423	)		1,221			1,045			465
	45			75			-40%	Earnings attributable to noncontrolling interests		13			32			11			23			11

	2,776			(222	)		1350%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses		971			(391	)		1,232			1,068			476
	8			11			-27%	Income (loss) from discontinued operations, net of taxes		8			(4	)		4			4			—

	2,784			(211	)		1419%	Net income (loss) of Financial Services Businesses		979			(395	)		1,236			1,072			476
	45			75			-40%	Less: Income attributable to noncontrolling interests		13			32			11			23			11

	2,739			(286	)		1058%	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		966			(427	)		1,225			1,049			465

	16.9%			18.1%				Operating Return on Average Equity (based on adjusted operating income)		21.4%			16.3%			17.7%			17.7%			15.4%

								*Reconciliation to Consolidated Net Income (Loss) Attributable to Prudential Financial, Inc:*
	2,739			(286	)			Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		966			(427	)		1,225			1,049			465
	101			79				Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		61			(33	)		13			41			47

	2,840			(207	)			Consolidated net income (loss) attributable to Prudential Financial, Inc.		1,027			(460	)		1,238			1,090			512

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date							2013						2014
2014			2013				3Q			4Q			1Q			2Q			3Q

						Earnings per share of Common Stock (diluted): (1)
	7.09			7.47		Financial Services Businesses after-tax adjusted operating income		2.89			2.20			2.40			2.49			2.20

						Reconciling items:
	(3.02	)		(12.26	)	Realized investment losses, net, and related charges and adjustments		(1.18	)		(5.01	)		(0.02	)		(0.58	)		(2.42	)
	0.42			(0.58	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.22			0.05			0.21			0.48			(0.28	)
	(0.30	)		0.54		Change in experience-rated contractholder liabilities due to asset value changes		(0.15	)		(0.06	)		(0.09	)		(0.40	)		0.20
	0.24			(0.03	)	Divested businesses		0.09			0.09			0.16			0.10			(0.01	)
	0.01			0.06		Difference in earnings allocated to participating unvested share-based payment awards		0.01			0.01			—			—			0.01

	(2.65	)		(12.27	)	Total reconciling items, before income taxes		(1.01	)		(4.92	)		0.26			(0.40	)		(2.50	)
	(1.35	)		(4.16	)	Income taxes, not applicable to adjusted operating income		(0.14	)		(1.79	)		0.08			(0.12	)		(1.29	)

	(1.30	)		(8.11	)	Total reconciling items, after income taxes		(0.87	)		(3.13	)		0.18			(0.28	)		(1.21	)

	5.79			(0.64	)	Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		2.02			(0.93	)		2.58			2.21			0.99
	0.01			0.03		Income (loss) from discontinued operations, net of taxes		0.02			(0.01	)		0.01			0.01			—

	5.80			(0.61	)	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		2.04			(0.94	)		2.59			2.22			0.99


	459.4			463.7		Weighted average number of outstanding Common shares (basic)		462.6			461.5			460.9			459.4			458.0
	468.6			472.0		Weighted average number of outstanding Common shares (diluted)		472.0			471.2			470.3			468.5			467.2

	(8	)		7		Direct equity adjustments for earnings per share calculation		2			(5	)		(2	)		(3	)		(3	)
	13			13		Earnings related to interest, net of tax, on exchangeable surplus notes		4			4			4			5			4

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	31			34		Financial Services Businesses after-tax adjusted operating income		13			9			10			12			9
	25			6		Income from continuing operations (after-tax) of Financial Services Businesses		9			2			11			10			4

(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 December 31, 2013 and for the nine months ended September 30, 2013, as all potential common shares are antidilutive due to the loss from continuing operations available to holders of Common Stock after direct equity adjustment.

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date					2013						2014
2014		2013			3Q			4Q			1Q			2Q			3Q

				*Financial Services Businesses Capitalization Data (1):*
				Senior Debt:
				Short-term debt		3,043			2,594			3,944			3,729			4,354
				Long-term debt		17,083			17,069			16,081			17,004			16,113
				Junior Subordinated Long-Term Debt		4,884			4,884			4,884			4,884			4,884

				Attributed Equity:
				Including accumulated other comprehensive income		32,818			33,885			36,770			39,663			40,203
				Excluding accumulated other comprehensive income (3)		26,034			25,299			26,117			26,771			26,875
				Amount included above for foreign currency exchange rate remeasurement (4)		(2,036	)		(2,818	)		(2,668	)		(2,818	)		(3,193	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (4)		28,070			28,117			28,785			29,589			30,068


				Book value per share of Common Stock:
				Including accumulated other comprehensive income		70.05			72.30			78.87			85.35			86.76
				Excluding accumulated other comprehensive income (3)		55.57			53.98			56.02			57.61			58.00
				Amount included above for foreign currency exchange rate remeasurement (4)		(4.35	)		(6.01	)		(5.72	)		(6.06	)		(6.89	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (4)		59.92			59.99			61.74			63.67			64.89


				Number of diluted shares at end of period (2)		468.5			468.7			466.2			464.7			463.4

				*Common Stock Price Range (based on closing price):*
	93.16		82.62	High		82.62			92.43			91.23			91.10			93.16
	77.61		54.64	Low		73.30			75.99			80.45			77.61			85.75
	87.94		77.98	Close		77.98			92.22			84.65			88.77			87.94


				*Common Stock market capitalization (1)*		36,019			42,523			38,973			40,692			40,197

(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 antidilutive impact of conversion.

(3)	Foreign currency translation adjustments and the cumulative impact of foreign currency exchange rate remeasurement, except for those items remeasured through net income (loss), are a component of accumulated other comprehensive income.

(4)	Represents cumulative impact of gains and losses resulting from foreign currency exchange rate remeasurement included in net income (loss).

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

OPERATIONS HIGHLIGHTS


Year-to-date					2013				2014
2014		2013			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
				Institutional customers		330.3		341.7		352.2		367.0		363.7
				Retail customers		159.1		170.7		172.9		180.1		180.0
				General account		358.7		357.5		365.8		374.4		373.8

				Total Investment Management and Advisory Services		848.1		869.9		890.9		921.5		917.5
				Non-proprietary assets under management		186.9		195.9		197.8		200.6		197.4

				Total managed by U.S. Retirement Solutions and Investment Management Division		1,035.0		1,065.8		1,088.7		1,122.1		1,114.9
				Managed by U.S. Individual Life and Group Insurance Division		21.9		22.3		23.1		23.4		22.3
				Managed by International Insurance Division		19.3		19.0		19.1		20.1		23.0

				Total assets under management		1,076.2		1,107.1		1,130.9		1,165.6		1,160.2
				Client assets under administration		111.1		116.6		120.5		125.4		152.6

				Total assets under management and administration		1,187.3		1,223.7		1,251.4		1,291.0		1,312.8


				Assets managed or administered for customers outside of the United States at end of period		244.2		242.9		251.7		262.2		261.0

				*Distribution Representatives (1):*
				Prudential Agents		2,780		2,722		2,759		2,795		2,822
				International Life Planners		7,208		7,248		7,194		7,074		7,213
				Gibraltar Life Consultants		9,298		9,327		8,806		8,670		8,601

	50		49	*Prudential Agent productivity ($ thousands)*		50		67		44		51		53

(1)	As of end of period.

(2)	At fair market value.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date						% Change			2013						2014
2014			2013			% Change			3Q			4Q			1Q			2Q			3Q

								Revenues (1):
	16,314			17,858			-9%	Premiums		5,414			5,257			5,130			5,261			5,923
	4,544			4,169			9%	Policy charges and fee income		1,284			1,445			1,509			1,523			1,512
	9,025			8,595			5%	Net investment income		2,873			2,935			3,017			2,968			3,040
	3,932			3,681			7%	Asset management fees, commissions and other income		1,212			1,341			1,280			1,361			1,291

	33,815			34,303			-1%	Total revenues		10,783			10,978			10,936			11,113			11,766


								Benefits and Expenses (1):
	17,259			17,923			-4%	Insurance and annuity benefits		5,420			5,387			5,417			5,419			6,423
	2,801			2,781			1%	Interest credited to policyholders’ account balances		886			921			925			934			942
	980			954			3%	Interest expense		296			306			321			319			340
	(2,022	)		(2,216	)		9%	Deferral of acquisition costs		(646	)		(686	)		(668	)		(679	)		(675	)
	1,327			1,008			32%	Amortization of acquisition costs		31			386			469			482			376
	8,923			8,945			0%	General and administrative expenses		2,883			3,203			2,901			3,015			3,007

	29,268			29,395			0%	Total benefits and expenses		8,870			9,517			9,365			9,490			10,413

	4,547			4,908			-7%	Adjusted operating income before income taxes		1,913			1,461			1,571			1,623			1,353


								Reconciling items:
	(1,314	)		(7,322	)		82%	Realized investment gains (losses), net, and related adjustments		(1,319	)		(2,634	)		49			(202	)		(1,161	)
	(99	)		1,533			-106%	Related charges		763			274			(57	)		(71	)		29

	(1,413	)		(5,789	)		76%	Total realized investment losses, net, and related charges and adjustments		(556	)		(2,360	)		(8	)		(273	)		(1,132	)

	195			(273	)		171%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		103			23			101			225			(131	)
	(139	)		255			-155%	Change in experience-rated contractholder liabilities due to asset value changes		(73	)		(28	)		(43	)		(189	)		93
	113			(12	)		1042%	Divested businesses		43			41			73			47			(7	)
	37			1			3600%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		11			27			11			18			8

	(1,207	)		(5,818	)		79%	Total reconciling items, before income taxes		(472	)		(2,297	)		134			(172	)		(1,169	)


	3,340			(910	)		467%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		1,441			(836	)		1,705			1,451			184
	575			(634	)		191%	Income tax expense (benefit)		473			(440	)		473			389			(287	)

	2,765			(276	)		1102%	Income (loss) from continuing operations before equity in earnings of operating joint ventures		968			(396	)		1,232			1,062			471

(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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	09/30/2013		12/31/2013		03/31/2014		06/30/2014		09/30/2014

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $231,616; $228,099; $232,097; $236,069; $232,413)		245,032		243,654		251,059		258,673		256,119
Fixed maturities, held to maturity, at amortized cost (fair value $3,872; $3,553; $3,537; $3,464; $3,183)		3,629		3,312		3,275		3,171		2,880
Trading account assets supporting insurance liabilities, at fair value		21,131		20,827		20,935		21,273		20,507
Other trading account assets, at fair value		6,121		6,111		7,692		8,351		9,003
Equity securities, available for sale, at fair value (cost $4,279; $4,561; $4,785; $4,867; $4,815)		5,488		6,026		6,249		6,433		6,377
Commercial mortgage and other loans		29,709		31,335		32,471		33,000		34,549
Policy loans		6,827		6,753		6,862		7,021		6,928
Other long-term investments		7,904		8,304		8,393		8,309		8,315
Short-term investments		6,404		5,837		4,625		4,278		4,789

Total investments		332,245		332,159		341,561		350,509		349,467
Cash and cash equivalents		11,950		10,797		11,294		11,335		15,447
Accrued investment income		2,533		2,505		2,532		2,583		2,605
Deferred policy acquisition costs		15,812		16,101		16,229		16,300		16,219
Value of business acquired		3,837		3,675		3,610		3,499		3,394
Other assets		12,677		13,082		13,412		13,224		13,788
Separate account assets		275,091		285,060		288,161		296,801		292,616

Total assets		654,145		663,379		676,799		694,251		693,536


Liabilities:
Future policy benefits		158,857		156,601		161,466		165,179		165,985
Policyholders’ account balances		132,202		131,298		131,899		133,217		133,814
Securities sold under agreements to repurchase		3,530		4,128		4,864		4,895		4,979
Cash collateral for loaned securities		4,988		4,230		4,035		3,596		3,270
Income taxes		5,367		6,010		7,328		8,929		9,078
Senior short-term debt		3,043		2,594		3,944		3,729		4,354
Senior long-term debt		17,083		17,069		16,081		17,004		16,113
Junior subordinated long-term debt		4,884		4,884		4,884		4,884		4,884
Notes issued by consolidated variable interest entities		2,423		3,302		4,101		4,573		5,397
Other liabilities		13,229		13,715		12,625		11,169		12,260
Separate account liabilities		275,091		285,060		288,161		296,801		292,616

Total liabilities		620,697		628,891		639,388		653,976		652,750


Attributed Equity:
Accumulated other comprehensive income		6,784		8,586		10,653		12,892		13,328
Other attributed equity		26,034		25,299		26,117		26,771		26,875

Total attributed equity		32,818		33,885		36,770		39,663		40,203

Noncontrolling Interest		630		603		641		612		583

Total Equity		33,448		34,488		37,411		40,275		40,786

Total liabilities and equity		654,145		663,379		676,799		694,251		693,536

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended September 30, 2014
	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		5,923			1,130			1,243			3,568			(18	)
Policy charges and fee income		1,512			729			637			156			(10	)
Net investment income		3,040			1,229			570			1,138			103
Asset management fees, commissions and other income		1,291			1,221			180			140			(250	)

Total revenues		11,766			4,309			2,630			5,002			(175	)


Benefits and Expenses (1):
Insurance and annuity benefits		6,423			1,637			1,692			3,051			43
Interest credited to policyholders’ account balances		942			472			214			256			—
Interest expense		340			36			149			1			154
Deferral of acquisition costs		(675	)		(147	)		(125	)		(415	)		12
Amortization of acquisition costs		376			153			29			209			(15	)
General and administrative expenses		3,007			1,335			647			1,055			(30	)

Total benefits and expenses		10,413			3,486			2,606			4,157			164


Adjusted operating income (loss) before income taxes		1,353			823			24			845			(339	)


	Quarter Ended September 30, 2013
	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		5,414			276			1,256			3,889			(7	)
Policy charges and fee income		1,284			665			487			142			(10	)
Net investment income		2,873			1,196			497			1,086			94
Asset management fees, commissions and other income		1,212			1,157			143			142			(230	)

Total revenues		10,783			3,294			2,383			5,259			(153	)


Benefits and Expenses (1):
Insurance and annuity benefits		5,420			598			1,496			3,349			(23	)
Interest credited to policyholders’ account balances		886			433			208			245			—
Interest expense		296			31			108			—			157
Deferral of acquisition costs		(646	)		(136	)		(177	)		(347	)		14
Amortization of acquisition costs		31			(92	)		(111	)		234			—
General and administrative expenses		2,883			1,229			643			1,000			11

Total benefits and expenses		8,870			2,063			2,167			4,481			159


Adjusted operating income (loss) before income taxes		1,913			1,231			216			778			(312	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Nine Months Ended September 30, 2014
	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		16,314			1,528			3,724			11,086			(24	)
Policy charges and fee income		4,544			2,139			2,006			432			(33	)
Net investment income		9,025			3,698			1,668			3,350			309
Asset management fees, commissions and other income		3,932			3,652			550			461			(731	)

Total revenues		33,815			11,017			7,948			15,329			(479	)


Benefits and Expenses (1):
Insurance and annuity benefits		17,259			2,948			4,863			9,381			67
Interest credited to policyholders’ account balances		2,801			1,429			635			737			—
Interest expense		980			107			402			3			468
Deferral of acquisition costs		(2,022	)		(422	)		(398	)		(1,247	)		45
Amortization of acquisition costs		1,327			424			228			715			(40	)
General and administrative expenses		8,923			3,887			1,859			3,174			3

Total benefits and expenses		29,268			8,373			7,589			12,763			543


Adjusted operating income (loss) before income taxes		4,547			2,644			359			2,566			(1,022	)


	Nine Months Ended September 30, 2013
	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		17,858			677			3,829			13,373			(21	)
Policy charges and fee income		4,169			1,938			1,798			463			(30	)
Net investment income		8,595			3,592			1,474			3,246			283
Asset management fees, commissions and other income		3,681			3,435			450			467			(671	)

Total revenues		34,303			9,642			7,551			17,549			(439	)


Benefits and Expenses (1):
Insurance and annuity benefits		17,923			1,805			4,679			11,456			(17	)
Interest credited to policyholders’ account balances		2,781			1,434			602			745			—
Interest expense		954			95			302			1			556
Deferral of acquisition costs		(2,216	)		(512	)		(583	)		(1,171	)		50
Amortization of acquisition costs		1,008			190			64			779			(25	)
General and administrative expenses		8,945			3,779			1,962			3,234			(30	)

Total benefits and expenses		29,395			6,791			7,026			15,044			534


Adjusted operating income (loss) before income taxes		4,908			2,851			525			2,505			(973	)

(1)

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of September 30, 2014
	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		349,467		124,405		49,164		162,458		13,440
Deferred policy acquisition costs		16,219		5,673		4,361		6,509		(324	)
Other assets		35,234		13,762		11,629		10,330		(487	)
Separate account assets		292,616		247,269		45,811		2,372		(2,836	)

Total assets		693,536		391,109		110,965		181,669		9,793


Liabilities:
Future policy benefits		165,985		53,964		13,382		94,909		3,730
Policyholders’ account balances		133,814		55,988		29,670		48,144		12
Debt		25,351		5,824		9,732		37		9,758
Other liabilities		34,984		12,235		6,863		15,108		778
Separate account liabilities		292,616		247,269		45,811		2,372		(2,836	)

Total liabilities		652,750		375,280		105,458		160,570		11,442


Attributed Equity:
Accumulated other comprehensive income (loss)		13,328		1,957		1,101		10,880		(610	)
Other attributed equity		26,875		13,311		4,406		10,160		(1,002	)

Total attributed equity		40,203		15,268		5,507		21,040		(1,612	)

Noncontrolling Interest		583		561		—		59		(37	)

Total Equity		40,786		15,829		5,507		21,099		(1,649	)


Total liabilities and equity		693,536		391,109		110,965		181,669		9,793


	As of December 31, 2013
	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		332,159		117,314		46,351		152,219		16,275
Deferred policy acquisition costs		16,101		5,715		4,295		6,407		(316	)
Other assets		30,059		11,207		10,088		8,102		662
Separate account assets		285,060		242,344		43,441		1,949		(2,674	)

Total assets		663,379		376,580		104,175		168,677		13,947


Liabilities:
Future policy benefits		156,601		49,521		12,520		91,145		3,415
Policyholders’ account balances		131,298		55,510		28,918		46,858		12
Debt		24,547		5,523		9,245		55		9,724
Other liabilities		31,385		9,800		5,629		11,821		4,135
Separate account liabilities		285,060		242,344		43,441		1,949		(2,674	)

Total liabilities		628,891		362,698		99,753		151,828		14,612


Attributed Equity:
Accumulated other comprehensive income (loss)		8,586		689		413		8,251		(767	)
Other attributed equity		25,299		12,590		4,009		8,588		112

Total attributed equity		33,885		13,279		4,422		16,839		(655	)

Noncontrolling Interest		603		603		—		10		(10	)

Total Equity		34,488		13,882		4,422		16,849		(665	)


Total liabilities and equity		663,379		376,580		104,175		168,677		13,947

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of September 30, 2014								As of December 31, 2013
	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		642		6,465		4,884		11,991		309		5,036		4,884		10,229
Operating Debt - Investment related		1,992		6,914		—		8,906		1,867		8,035		—		9,902
Operating Debt - Specified businesses		1,720		2,247		—		3,967		418		3,802		—		4,220
Limited recourse and non-recourse borrowing		—		487		—		487		—		196		—		196

Total debt - Financial Services Businesses		4,354		16,113		4,884		25,351		2,594		17,069		4,884		24,547

Closed Block Business
Investment related		—		—		—		—		—		—		—		—
Limited recourse and non-recourse borrowing		75		1,600		—		1,675		75		1,600		—		1,675

Total debt		75		1,600		—		1,675		75		1,600		—		1,675


	As of September 30, 2014								As of December 31, 2013
	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		10,593		1,042		356		11,991		8,817		1,042		370		10,229
Operating Debt - Investment related		5,104		596		3,206		8,906		6,281		411		3,210		9,902
Operating Debt - Specified businesses		2,708		1,259		—		3,967		2,969		1,251		—		4,220
Limited recourse and non-recourse borrowing		—		487		—		487		—		196		—		196

Total debt - Financial Services Businesses		18,405		3,384		3,562		25,351		18,067		2,900		3,580		24,547

(1)	Includes Prudential Funding, LLC.

(2)	Capital debt at Prudential Insurance Co. of America includes $941 million of surplus notes at both September 30, 2014 and December 31, 2013.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

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

(in millions)


Year-to-date						% Change			2013						2014
2014			2013			% Change			3Q			4Q			1Q			2Q			3Q

								Revenues (1):
	1,528			677			126%	Premiums		276			331			197			201			1,130
	2,139			1,938			10%	Policy charges and fee income		665			690			695			715			729
	3,698			3,592			3%	Net investment income		1,196			1,255			1,276			1,193			1,229
	3,652			3,435			6%	Asset management fees, commissions and other income		1,157			1,253			1,187			1,244			1,221

	11,017			9,642			14%	Total revenues		3,294			3,529			3,355			3,353			4,309


								Benefits and Expenses (1):
	2,948			1,805			63%	Insurance and annuity benefits		598			733			660			651			1,637
	1,429			1,434			0%	Interest credited to policyholders’ account balances		433			476			476			481			472
	107			95			13%	Interest expense		31			33			36			35			36
	(422	)		(512	)		18%	Deferral of acquisition costs		(136	)		(137	)		(128	)		(147	)		(147	)
	424			190			123%	Amortization of acquisition costs		(92	)		107			132			139			153
	3,887			3,779			3%	General and administrative expenses		1,229			1,321			1,234			1,318			1,335

	8,373			6,791			23%	Total benefits and expenses		2,063			2,533			2,410			2,477			3,486

	2,644			2,851			-7%	Adjusted operating income before income taxes		1,231			996			945			876			823

(1)

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

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

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

(in millions)


	Nine Months Ended September 30, 2014												Quarter Ended September 30, 2014
	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		1,528			77			1,451			—			1,130			20			1,110			—
Policy charges and fee income		2,139			1,978			161			—			729			676			53			—
Net investment income		3,698			472			3,138			88			1,229			154			1,032			43
Asset management fees, commissions and other income		3,652			992			647			2,013			1,221			341			202			678

Total revenues		11,017			3,519			5,397			2,101			4,309			1,191			2,397			721


Benefits and Expenses (1):
Insurance and annuity benefits		2,948			337			2,611			—			1,637			123			1,514			—
Interest credited to policyholders’ account balances		1,429			319			1,110			—			472			107			365			—
Interest expense		107			80			19			8			36			27			7			2
Deferral of acquisition costs		(422	)		(375	)		(34	)		(13	)		(147	)		(127	)		(17	)		(3	)
Amortization of acquisition costs		424			392			17			15			153			141			7			5
General and administrative expenses		3,887			1,621			768			1,498			1,335			553			265			517

Total benefits and expenses		8,373			2,374			4,491			1,508			3,486			824			2,141			521

Adjusted operating income before income taxes		2,644			1,145			906			593			823			367			256			200


	Nine Months Ended September 30, 2013												Quarter Ended September 30, 2013
	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		677			79			598			—			276			26			250			—
Policy charges and fee income		1,938			1,784			154			—			665			613			52			—
Net investment income		3,592			526			3,006			60			1,196			169			1,005			22
Asset management fees, commissions and other income		3,435			918			624			1,893			1,157			312			218			627

Total revenues		9,642			3,307			4,382			1,953			3,294			1,120			1,525			649


Benefits and Expenses (1):
Insurance and annuity benefits		1,805			47			1,758			—			598			(68	)		666			—
Interest credited to policyholders’ account balances		1,434			285			1,149			—			433			54			379			—
Interest expense		95			67			20			8			31			22			7			2
Deferral of acquisition costs		(512	)		(474	)		(20	)		(18	)		(136	)		(124	)		(7	)		(5	)
Amortization of acquisition costs		190			159			12			19			(92	)		(99	)		1			6
General and administrative expenses		3,779			1,630			719			1,430			1,229			514			242			473

Total benefits and expenses		6,791			1,714			3,638			1,439			2,063			299			1,288			476

Adjusted operating income before income taxes		2,851			1,593			744			514			1,231			821			237			173

(1)

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

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

(in millions)


Year-to-date							2013						2014
2014			2013				3Q			4Q			1Q			2Q			3Q

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	150,467			131,608		Beginning total account value		137,775			143,697			150,467			151,620			155,890
	5,299			7,909		Sales: Highest Daily Suite (1)		1,913			1,714			1,606			1,865			1,828
	2,217			1,126		Other variable annuities (2)		475			698			698			786			733

	7,516			9,035		Total sales		2,388			2,412			2,304			2,651			2,561
	(6,497	)		(5,498	)	Surrenders and withdrawals		(1,824	)		(2,069	)		(2,158	)		(2,187	)		(2,152	)

	1,019			3,537		Net sales		564			343			146			464			409
	(1,091	)		(946	)	Benefit payments		(310	)		(336	)		(340	)		(406	)		(345	)

	(72	)		2,591		Net flows		254			7			(194	)		58			64
	5,384			11,852		Change in market value, interest credited, and other		6,479			7,603			2,194			5,081			(1,891	)
	(2,607	)		(2,354	)	Policy charges		(811	)		(840	)		(847	)		(869	)		(891	)

	153,172			143,697		Ending total account value		143,697			150,467			151,620			155,890			153,172


						Variable Annuities Account Value by Product:
	115,853			106,772		Highest Daily suite (1)		106,772			112,454			113,804			117,596			115,853
	37,319			36,925		Other variable annuities (2)		36,925			38,013			37,816			38,294			37,319

	153,172			143,697		Ending total account value		143,697			150,467			151,620			155,890			153,172


						Fixed Annuities and other products (3):
	3,673			3,734		Beginning total account value		3,699			3,681			3,673			3,656			3,638
	43			46		Sales		16			20			17			13			13
	(99	)		(119	)	Surrenders and withdrawals		(40	)		(41	)		(35	)		(34	)		(30	)

	(56	)		(73	)	Net redemptions		(24	)		(21	)		(18	)		(21	)		(17	)
	(255	)		(250	)	Benefit payments		(83	)		(85	)		(71	)		(75	)		(109	)

	(311	)		(323	)	Net flows		(107	)		(106	)		(89	)		(96	)		(126	)
	251			273		Interest credited and other		91			98			73			78			100
	(2	)		(3	)	Policy charges		(2	)		—			(1	)		—			(1	)

	3,611			3,681		Ending total account value		3,681			3,673			3,656			3,638			3,611


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (4):
	1,876			1,825		Insurance Agents		575			600			604			648			624
	1,526			1,820		Wirehouses		433			426			440			525			561
	3,074			3,945		Independent Financial Planners		1,001			1,033			940			1,098			1,036
	1,083			1,491		Bank Distribution		395			373			337			393			353

	7,559			9,081		Total		2,404			2,432			2,321			2,664			2,574

(1)	Includes variable annuities with “Highest Daily” optional living benefits and predecessor “Lifetime Five” feature.

(2)	Includes Prudential Defined Income (PDI) and products without guaranteed minimum income and withdrawal benefits.

(3)	Includes single premium immediate annuities.

(4)	Amounts represent gross sales.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

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

(in millions)


Year-to-date							2013						2014
2014			2013				3Q			4Q			1Q			2Q			3Q

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	10,054			11,564		Beginning balance		10,903			10,409			10,054			9,881			9,811
	995			976		Premiums and deposits		230			222			251			370			374
	(657	)		(730	)	Surrenders and withdrawals		(217	)		(233	)		(220	)		(222	)		(215	)

	338			246		Net sales (redemptions)		13			(11	)		31			148			159
	(312	)		(307	)	Benefit payments		(102	)		(101	)		(91	)		(94	)		(127	)

	26			(61	)	Net flows		(89	)		(112	)		(60	)		54			32
	269			259		Interest credited and other		81			78			98			103			68
	(531	)		(1,350	)	Net transfers to separate account		(484	)		(321	)		(210	)		(227	)		(94	)
	(2	)		(3	)	Policy charges		(2	)		—			(1	)		—			(1	)

	9,816			10,409		Ending balance		10,409			10,054			9,881			9,811			9,816


						Account Values in Separate Account (1):
	144,086			123,778		Beginning balance		130,571			136,969			144,086			145,395			149,717
	6,564			8,105		Premiums and deposits		2,174			2,210			2,070			2,294			2,200
	(5,939	)		(4,887	)	Surrenders and withdrawals		(1,647	)		(1,877	)		(1,973	)		(1,999	)		(1,967	)

	625			3,218		Net sales		527			333			97			295			233
	(1,034	)		(889	)	Benefit payments		(291	)		(320	)		(320	)		(387	)		(327	)

	(409	)		2,329		Net flows		236			13			(223	)		(92	)		(94	)
	5,366			11,866		Change in market value, interest credited and other		6,489			7,623			2,169			5,056			(1,859	)
	531			1,350		Net transfers from general account		484			321			210			227			94
	(2,607	)		(2,354	)	Policy charges		(811	)		(840	)		(847	)		(869	)		(891	)

	146,967			136,969		Ending balance		136,969			144,086			145,395			149,717			146,967

(1)

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

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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

(in millions)


	2013				2014
	3Q		4Q		1Q		2Q		3Q

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

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		7,037		6,799		6,514		6,322		5,947
Guaranteed minimum withdrawal benefits		889		886		851		829		767
Guaranteed minimum income benefits		3,583		3,667		3,578		3,545		3,382
Guaranteed minimum withdrawal & income benefits		107,109		113,246		115,079		119,442		118,124

Total		118,618		124,598		126,022		130,138		128,220


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		102,783		107,910		109,139		112,695		111,033
Account Values without Auto-Rebalancing Feature		15,835		16,688		16,883		17,443		17,187

Total		118,618		124,598		126,022		130,138		128,220


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		2,378		1,735		1,761		1,504		2,017
Net Amount at Risk without Auto-Rebalancing Feature		1,176		910		895		781		911

Total		3,554		2,645		2,656		2,285		2,928

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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

(in millions)


	2013				2014
	3Q		4Q		1Q		2Q		3Q

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

Variable Annuity Account Values by Death Benefit Features
Return of net deposits:
Account value		107,025		112,445		113,733		117,486		115,725
Net amount at risk		532		465		440		402		437
Minimum return, anniversary contract value, or maximum contract value:
Account value		33,592		34,846		34,750		35,230		34,299
Net amount at risk		3,330		2,817		2,806		2,572		2,987

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		102,783		107,910		109,139		112,695		111,033
Account Values without Auto-Rebalancing Feature		37,834		39,381		39,344		40,021		38,991

Total		140,617		147,291		148,483		152,716		150,024


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		774		613		624		546		823
Net Amount at Risk without Auto-Rebalancing Feature		3,088		2,669		2,622		2,428		2,601

Total		3,862		3,282		3,246		2,974		3,424

(1)	At end of period.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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

(in millions)


Year-to-date							2013						2014
2014			2013				3Q			4Q			1Q			2Q			3Q

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	173,502			148,405		Beginning total account value		157,738			165,364			173,502			178,150			181,577
	18,305			14,831		Deposits and sales		5,455			5,846			8,587			4,528			5,190
	(16,290	)		(12,925	)	Withdrawals and benefits		(4,627	)		(5,786	)		(6,003	)		(6,066	)		(4,221	)
	5,018			15,053		Change in market value, interest credited, interest income and other activity		6,798			8,078			2,064			4,965			(2,011	)

	180,535			165,364		Ending total account value		165,364			173,502			178,150			181,577			180,535


	2,015			1,906		Net additions (withdrawals)		828			60			2,584			(1,538	)		969


						Stable value account values included above		44,186			44,013			44,461			44,174			44,464

						Institutional Investment Products:
	149,402			141,435		Beginning total account value		144,101			147,100			149,402			149,661			148,971
	34,770			13,239		Additions		5,034			4,055			1,733			2,075			30,962
	(11,253	)		(7,268	)	Withdrawals and benefits		(2,487	)		(2,683	)		(3,017	)		(4,602	)		(3,634	)
	4,134			113		Change in market value, interest credited and interest income		412			968			1,441			1,753			940
	(1,527	)		(419	)	Other (1)		40			(38	)		102			84			(1,713	)

	175,526			147,100		Ending total account value		147,100			149,402			149,661			148,971			175,526


	23,517			5,971		Net additions (withdrawals)		2,547			1,372			(1,284	)		(2,527	)		27,328


						Amounts included in ending total account value above:
	71,323			69,993		Investment-only stable value wraps		69,993			72,507			72,845			72,407			71,323
	29,509			2,360		Longevity reinsurance (2)		2,360			2,358			2,357			2,399			29,509
	74,694			74,747		Group annuities and other products		74,747			74,537			74,459			74,165			74,694

	175,526			147,100		Ending total account value		147,100			149,402			149,661			148,971			175,526

(1)	“Other” activity includes the effect of foreign exchange rate changes, as well as changes in asset balances for externally managed accounts.

(2)	Represents notional amounts based on present value of future benefits under longevity reinsurance contracts which have not been significantly pre-funded.

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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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			2013				2014
2014		2013		% Change			3Q		4Q		1Q		2Q		3Q

						Analysis of revenues by type:
	1,506		1,390		8%	Asset management fees		472		491		489		507		510
	195		160		22%	Other related revenues		52		94		66		67		62
	400		403		-1%	Service, distribution and other revenues		125		140		112		139		149

	2,101		1,953		8%	Total Asset Management segment revenues		649		725		667		713		721


						Analysis of asset management fees by source:
	655		620		6%	Institutional customers		210		218		214		225		216
	536		460		17%	Retail customers		161		171		173		177		186
	315		310		2%	General account		101		102		102		105		108

	1,506		1,390		8%	Total asset management fees		472		491		489		507		510


Supplementary Assets Under Management Information (in billions):
	September 30, 2014
	Equity		Fixed Income		Real Estate		Total
Institutional customers		64.0		263.9		35.8		363.7
Retail customers		121.3		56.3		2.4		180.0
General account		7.8		364.4		1.6		373.8

Total		193.1		684.6		39.8		917.5


	September 30, 2013
	Equity		Fixed Income		Real Estate		Total
Institutional customers		60.3		236.0		34.0		330.3
Retail customers		107.6		49.3		2.2		159.1
General account		8.3		349.2		1.2		358.7

Total		176.2		634.5		37.4		848.1

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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

(in billions)


Year-to-date							2013						2014
2014			2013				3Q			4Q			1Q			2Q			3Q

						Institutional Customers - Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	300.5			274.6		Beginning assets under management		279.6			290.0			300.5			310.4			323.5
	31.4			43.3		Additions		14.1			13.8			10.9			10.5			10.0
	(28.2	)		(29.2	)	Withdrawals		(10.0	)		(8.5	)		(9.0	)		(7.8	)		(11.4	)
	17.3			1.8		Change in market value		6.0			6.0			8.0			10.3			(1.0	)
	—			—		Net money market flows		0.2			(0.5	)		(0.1	)		0.1			—
	(0.3	)		(0.5	)	Other (1)		0.1			(0.3	)		0.1			—			(0.4	)

	320.7			290.0		Ending assets under management		290.0			300.5			310.4			323.5			320.7
	43.0			40.3		Affiliated institutional assets under management		40.3			41.2			41.8			43.5			43.0

	363.7			330.3		Total assets managed for institutional customers at end of period		330.3			341.7			352.2			367.0			363.7


	3.2			14.1		Net institutional additions (withdrawals), excluding money market activity		4.1			5.3			1.9			2.7			(1.4	)


						Retail Customers - Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	115.0			91.1		Beginning assets under management		100.4			106.5			115.0			117.0			122.5
	24.9			30.4		Additions		7.1			9.8			8.0			8.4			8.5
	(22.8	)		(27.5	)	Withdrawals		(8.5	)		(8.3	)		(7.8	)		(7.7	)		(7.3	)
	5.6			12.5		Change in market value		7.5			7.0			1.8			4.8			(1.0	)
	—			—		Net money market flows		—			—			—			—			—
	—			—		Other		—			—			—			—			—

	122.7			106.5		Ending assets under management		106.5			115.0			117.0			122.5			122.7
	57.3			52.6		Affiliated retail assets under management		52.6			55.7			55.9			57.6			57.3

	180.0			159.1		Total assets managed for retail customers at end of period		159.1			170.7			172.9			180.1			180.0


	2.1			2.9		Net retail additions (withdrawals), excluding money market activity		(1.4	)		1.5			0.2			0.7			1.2

(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.

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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

(in millions)


Year-to-date						% Change			2013						2014
2014			2013			% Change			3Q			4Q			1Q			2Q			3Q

								Revenues (1):
	3,724			3,829			-3%	Premiums		1,256			1,269			1,240			1,241			1,243
	2,006			1,798			12%	Policy charges and fee income		487			634			688			681			637
	1,668			1,474			13%	Net investment income		497			517			558			540			570
	550			450			22%	Asset management fees, commissions and other income		143			167			172			198			180

	7,948			7,551			5%	Total revenues		2,383			2,587			2,658			2,660			2,630


								Benefits and Expenses (1):
	4,863			4,679			4%	Insurance and annuity benefits		1,496			1,522			1,621			1,550			1,692
	635			602			5%	Interest credited to policyholders’ account balances		208			206			210			211			214
	402			302			33%	Interest expense		108			112			124			129			149
	(398	)		(583	)		32%	Deferral of acquisition costs		(177	)		(190	)		(143	)		(130	)		(125	)
	228			64			256%	Amortization of acquisition costs		(111	)		57			99			100			29
	1,859			1,962			-5%	General and administrative expenses		643			665			616			596			647

	7,589			7,026			8%	Total benefits and expenses		2,167			2,372			2,527			2,456			2,606


	359			525			-32%	Adjusted operating income before income taxes		216			215			131			204			24

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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

(in millions)


	Nine Months Ended September 30, 2014									Quarter Ended September 30, 2014
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance			Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		3,724			643			3,081			1,243			210			1,033
Policy charges and fee income		2,006			1,581			425			637			502			135
Net investment income		1,668			1,209			459			570			415			155
Asset management fees, commissions and other income		550			462			88			180			154			26

Total revenues		7,948			3,895			4,053			2,630			1,281			1,349


Benefits and Expenses (1):
Insurance and annuity benefits		4,863			1,616			3,247			1,692			548			1,144
Interest credited to policyholders’ account balances		635			452			183			214			152			62
Interest expense		402			395			7			149			146			3
Deferral of acquisition costs		(398	)		(398	)		—			(125	)		(125	)		—
Amortization of acquisition costs		228			221			7			29			27			2
General and administrative expenses		1,859			1,229			630			647			436			211

Total benefits and expenses		7,589			3,515			4,074			2,606			1,184			1,422


Adjusted operating income (loss) before income taxes		359			380			(21	)		24			97			(73	)


	Nine Months Ended September 30, 2013									Quarter Ended September 30, 2013
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance			Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		3,829			595			3,234			1,256			198			1,058
Policy charges and fee income		1,798			1,412			386			487			374			113
Net investment income		1,474			1,037			437			497			353			144
Asset management fees, commissions and other income		450			364			86			143			116			27

Total revenues		7,551			3,408			4,143			2,383			1,041			1,342


Benefits and Expenses (1):
Insurance and annuity benefits		4,679			1,421			3,258			1,496			487			1,009
Interest credited to policyholders’ account balances		602			430			172			208			149			59
Interest expense		302			297			5			108			108			—
Deferral of acquisition costs		(583	)		(581	)		(2	)		(177	)		(173	)		(4	)
Amortization of acquisition costs		64			57			7			(111	)		(113	)		2
General and administrative expenses		1,962			1,358			604			643			435			208

Total benefits and expenses		7,026			2,982			4,044			2,167			893			1,274


Adjusted operating income before income taxes		525			426			99			216			148			68

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

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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

(in millions)


Year-to-date							2013						2014
2014			2013				3Q			4Q			1Q			2Q			3Q

						ANNUALIZED NEW BUSINESS PREMIUMS (1):

	30			25		Variable life		9			13			9			11			10
	160			388		Universal life		107			109			71			46			43
	132			152		Term life		49			44			42			46			44

	322			565		Total		165			166			122			103			97


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	71			72		Prudential Agents		22			23			22			25			24
	251			493		Third party distribution		143			143			100			78			73

	322			565		Total		165			166			122			103			97


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2)(3):*
	21,842			10,583		Beginning balance		20,710			21,367			21,842			22,119			22,239
	2,146			2,965		Premiums and deposits		892			834			769			681			696
	(822	)		(811	)	Surrenders and withdrawals		(266	)		(252	)		(237	)		(311	)		(274	)

	1,324			2,154		Net sales		626			582			532			370			422
	(326	)		(310	)	Benefit payments		(91	)		(109	)		(105	)		(110	)		(111	)

	998			1,844		Net flows		535			473			427			260			311
	362			935		Interest credited and other		360			235			65			66			231
	325			270		Net transfers from separate account		84			98			105			110			110
	(957	)		(949	)	Policy charges		(322	)		(331	)		(320	)		(316	)		(321	)
	—			8,684		Acquisition		—			—			—			—			—

	22,570			21,367		Ending balance		21,367			21,842			22,119			22,239			22,570


						*Separate Account Liabilities (3):*
	26,916			17,817		Beginning balance		24,555			25,380			26,916			27,153			27,968
	930			885		Premiums and deposits		196			392			369			283			278
	(661	)		(670	)	Surrenders and withdrawals		(122	)		(232	)		(239	)		(203	)		(219	)

	269			215		Net sales		74			160			130			80			59
	(80	)		(92	)	Benefit payments		1			(29	)		(32	)		(28	)		(20	)

	189			123		Net flows		75			131			98			52			39
	1,393			2,831		Change in market value, interest credited and other		991			1,744			484			1,110			(201	)
	(325	)		(270	)	Net transfers to general account		(84	)		(98	)		(105	)		(110	)		(110	)
	(718	)		(728	)	Policy charges		(157	)		(241	)		(240	)		(237	)		(241	)
	—			5,607		Acquisition		—			—			—			—			—

	27,455			25,380		Ending balance		25,380			26,916			27,153			27,968			27,455


						FACE AMOUNT IN FORCE (4):

						Variable life		173,142			172,870			173,382			171,043			169,493
						Universal life		139,808			144,533			147,519			149,274			150,697
						Term life		614,032			621,289			627,425			634,132			640,758

						Total		926,982			938,692			948,326			954,449			960,948

(1)	Excludes corporate-owned life insurance.

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

(3)	Includes reclassifications during the second quarter of 2013 to conform presentation of certain acquired liabilities.

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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

(dollar amounts in millions)


Year-to-date					2013				2014
2014		2013			3Q		4Q		1Q		2Q		3Q

				Individual Life Insurance:

				Policy Surrender Experience:
	853		882	Cash value of surrenders		284		291		286		278		289
	2.5%		2.9%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		2.7%		2.7%		2.6%		2.5%		2.5%

				Death benefits per $1,000 of in force (1):
	4.78		4.60	Variable and universal life		5.31		4.41		5.06		4.61		4.62
	1.23		1.21	Term life		1.01		1.55		1.31		1.20		1.19
	3.29		3.22	Total, Individual Life Insurance		3.53		3.25		3.51		3.13		3.16

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

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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

(dollar amounts in millions)


Year-to-date					2013						2014
2014		2013			3Q			4Q			1Q			2Q			3Q

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	161		196	Group life		33			44			137			10			14
	58		65	Group disability		13			8			33			12			13

	219		261	Total		46			52			170			22			27


				Future Policy Benefits (1)(2):
				Group life		2,123			2,281			2,198			2,132			2,074
				Group disability		13			3			30			21			11

				Total		2,136			2,284			2,228			2,153			2,085


				Policyholders’ Account Balances (1):
				Group life		7,822			7,928			7,853			7,923			7,953
				Group disability		233			251			254			217			223

				Total		8,055			8,179			8,107			8,140			8,176


				Separate Account Liabilities (1):
				Group life		22,017			22,706			22,938			24,525			24,515
				Group disability		—			—			—			—			—

				Total		22,017			22,706			22,938			24,525			24,515


				Group Life Insurance:
	2,959		3,086	Gross premiums, policy charges and fee income (3)		960			1,013			1,004			1,002			953
	2,894		2,946	Earned premiums, policy charges and fee income		948			969			973			966			955
	89.6%		89.3%	Benefits ratio		84.8	%		86.2	%		89.6	%		89.3	%		89.9	%
	10.8%		9.9%	Administrative operating expense ratio		11.1	%		10.8	%		11.2	%		9.9	%		11.5	%
				Persistency ratio		93.8	%		93.7	%		94.9	%		94.2	%		93.5	%

				Group Disability Insurance:
	662		725	Gross premiums, policy charges and fee income (3)		243			242			221			221			220
	612		674	Earned premiums, policy charges and fee income		223			225			200			199			213
	106.7%		93.2%	Benefits ratio		91.9	%		91.6	%		100.5	%		83.9	%		133.8	%
	29.9%		26.1%	Administrative operating expense ratio		25.9	%		28.1	%		29.0	%		29.4	%		31.4	%
				Persistency ratio		88.1	%		87.0	%		87.0	%		85.6	%		84.6	%

(1)	As of end of period.

(2)	The amounts shown exclude liabilities for unpaid claims and claim adjustment expenses.

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

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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

(in millions)


Year-to-date							2013						2014
2014			2013				3Q			4Q			1Q			2Q			3Q

						DEFERRED POLICY ACQUISITION COSTS

						INDIVIDUAL ANNUITIES:
	5,490			3,829		Beginning balance		4,577			5,314			5,490			5,513			5,521
	375			474		Capitalization		124			124			116			132			127
	(392	)		(159	)	Amortization - operating results		99			(98	)		(122	)		(129	)		(141	)
	84			1,072		Amortization - realized investment gains and losses		510			142			41			9			34
	(3	)		98		Impact of unrealized (gains) or losses on AFS securities		4			8			(12	)		(4	)		13
	—			—		Other		—			—			—			—			—

	5,554			5,314		Ending balance		5,314			5,490			5,513			5,521			5,554


						INDIVIDUAL LIFE INSURANCE:
	4,112			3,116		Beginning balance		3,646			3,952			4,112			4,089			4,057
	398			581		Capitalization		173			181			143			130			125
	(221	)		(57	)	Amortization - operating results		113			(54	)		(96	)		(98	)		(27	)
	8			11		Amortization - realized investment gains and losses		4			4			2			1			5
	(112	)		301		Impact of unrealized (gains) or losses on AFS securities		16			29			(72	)		(65	)		25

	4,185			3,952		Ending balance		3,952			4,112			4,089			4,057			4,185


						GROUP INSURANCE:
	183			182		Beginning balance		175			177			183			180			178
	—			2		Capitalization		4			9			—			—			—
	(7	)		(7	)	Amortization - operating results		(2	)		(3	)		(3	)		(2	)		(2	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	176			177		Ending balance		177			183			180			178			176


						DEFERRED SALES INDUCEMENTS
						INDIVIDUAL ANNUITIES:
	1,813			1,357		Beginning balance		1,506			1,764			1,813			1,756			1,687
	18			44		Capitalization		13			9			7			7			4
	(158	)		(98	)	Amortization - operating results		8			(39	)		(50	)		(52	)		(56	)
	(29	)		428		Amortization - realized investment gains and losses		235			76			(11	)		(21	)		3
	1			33		Impact of unrealized (gains) or losses on AFS securities		2			3			(3	)		(3	)		7
	—			—		Other		—			—			—			—			—

	1,645			1,764		Ending balance		1,764			1,813			1,756			1,687			1,645

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


Year-to-date						% Change			2013						2014
2014			2013			% Change			3Q			4Q			1Q			2Q			3Q

								Revenues (1):
	11,086			13,373			-17%	Premiums		3,889			3,664			3,696			3,822			3,568
	432			463			-7%	Policy charges and fee income		142			136			138			138			156
	3,350			3,246			3%	Net investment income		1,086			1,060			1,084			1,128			1,138
	461			467			-1%	Asset management fees, commissions and other income		142			131			157			164			140

	15,329			17,549			-13%	Total revenues		5,259			4,991			5,075			5,252			5,002


								Benefits and Expenses (1):
	9,381			11,456			-18%	Insurance and annuity benefits		3,349			3,150			3,113			3,217			3,051
	737			745			-1%	Interest credited to policyholders’ account balances		245			239			239			242			256
	3			1			200%	Interest expense		—			2			—			2			1
	(1,247	)		(1,171	)		-6%	Deferral of acquisition costs		(347	)		(372	)		(412	)		(420	)		(415	)
	715			779			-8%	Amortization of acquisition costs		234			232			250			256			209
	3,174			3,234			-2%	General and administrative expenses		1,000			1,093			1,048			1,071			1,055

	12,763			15,044			-15%	Total benefits and expenses		4,481			4,344			4,238			4,368			4,157


	2,566			2,505			2%	Adjusted operating income before income taxes		778			647			837			884			845

(1)

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

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	Nine Months Ended September 30, 2014									Quarter Ended September 30, 2014
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations			Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		11,086			5,263			5,823			3,568			1,693			1,875
Policy charges and fee income		432			267			165			156			87			69
Net investment income		3,350			1,298			2,052			1,138			436			702
Asset management fees, commissions and other income		461			196			265			140			68			72

Total revenues		15,329			7,024			8,305			5,002			2,284			2,718


Benefits and Expenses (1):
Insurance and annuity benefits		9,381			4,580			4,801			3,051			1,486			1,565
Interest credited to policyholders’ account balances		737			172			565			256			59			197
Interest expense		3			2			1			1			1			—
Deferral of acquisition costs		(1,247	)		(585	)		(662	)		(415	)		(185	)		(230	)
Amortization of acquisition costs		715			337			378			209			84			125
General and administrative expenses		3,174			1,303			1,871			1,055			425			630

Total benefits and expenses		12,763			5,809			6,954			4,157			1,870			2,287


Adjusted operating income before income taxes		2,566			1,215			1,351			845			414			431


	Nine Months Ended September 30, 2013									Quarter Ended September 30, 2013
	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		13,373			5,119			8,254			3,889			1,606			2,283
Policy charges and fee income		463			263			200			142			88			54
Net investment income		3,246			1,198			2,048			1,086			405			681
Asset management fees, commissions and other income		467			194			273			142			74			68

Total revenues		17,549			6,774			10,775			5,259			2,173			3,086


Benefits and Expenses (1):
Insurance and annuity benefits		11,456			4,336			7,120			3,349			1,364			1,985
Interest credited to policyholders’ account balances		745			187			558			245			63			182
Interest expense		1			1			—			—			—			—
Deferral of acquisition costs		(1,171	)		(529	)		(642	)		(347	)		(153	)		(194	)
Amortization of acquisition costs		779			333			446			234			96			138
General and administrative expenses		3,234			1,232			2,002			1,000			379			621

Total benefits and expenses		15,044			5,560			9,484			4,481			1,749			2,732


Adjusted operating income before income taxes		2,505			1,214			1,291			778			424			354

(1)

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

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date					2013				2014
2014		2013			3Q		4Q		1Q		2Q		3Q

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	4,143		4,122	Japan, excluding Gibraltar Life		1,271		1,273		1,538		1,303		1,302
	5,988		8,454	Gibraltar Life		2,337		2,063		1,859		2,185		1,944
	1,387		1,260	All other countries		423		464		437		472		478

	11,518		13,836	Total		4,031		3,800		3,834		3,960		3,724


				Annualized new business premiums:
	545		580	Japan, excluding Gibraltar Life		152		183		227		157		161
	1,207		1,364	Gibraltar Life		407		392		361		437		409
	332		257	All other countries		85		108		104		115		113

	2,084		2,201	Total		644		683		692		709		683


				Annualized new business premiums by distribution channel:
	877		837	Life Planner Operations		237		291		331		272		274
	542		612	Gibraltar Life Consultants		176		167		158		210		174
	470		588	Banks		182		169		144		156		170
	195		164	Independent Agency		49		56		59		71		65

	2,084		2,201	Total		644		683		692		709		683


				Constant exchange rate basis (2):

				Net premiums, policy charges and fee income:
	4,893		4,632	Japan, excluding Gibraltar Life		1,460		1,479		1,815		1,523		1,555
	7,063		9,505	Gibraltar Life		2,695		2,378		2,200		2,584		2,279
	1,303		1,203	All other countries		408		436		416		438		449

	13,259		15,340	Total		4,563		4,293		4,431		4,545		4,283


				Annualized new business premiums:
	647		657	Japan, excluding Gibraltar Life		177		212		270		185		192
	1,327		1,476	Gibraltar Life		450		428		403		479		445
	310		243	All other countries		81		102		99		105		106

	2,284		2,376	Total		708		742		772		769		743


				Annualized new business premiums by distribution channel:
	957		900	Life Planner Operations		258		314		369		290		298
	610		663	Gibraltar Life Consultants		195		186		182		232		196
	498		635	Banks		200		182		154		167		177
	219		178	Independent Agency		55		60		67		80		72

	2,284		2,376	Total		708		742		772		769		743

(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 82 per U.S. dollar and Korean won 1150 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2013						2014
	3Q			4Q			1Q			2Q			3Q

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		361			364			368			371			374
Gibraltar Life		406			406			406			406			407
All other countries		108			110			111			113			115

Total		875			880			885			890			896


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		2,936			2,969			3,015			3,043			3,077
Gibraltar Life		7,307			7,274			7,217			7,161			7,137
All other countries		1,715			1,742			1,766			1,794			1,821

Total		11,958			11,985			11,998			11,998			12,035


International life insurance policy persistency:

Life Planner Operations:
13 months		93.1	%		93.0	%		93.0	%		92.9	%		92.5	%
25 months		85.9	%		85.6	%		85.9	%		86.0	%		86.2	%

Gibraltar Life (3):
13 months		90.8	%		90.9	%		91.0	%		91.0	%		91.2	%
25 months		83.0	%		82.4	%		81.8	%		81.9	%		82.2	%

Number of Life Planners at end of period:
Japan		3,274			3,258			3,298			3,212			3,275
All other countries		3,934			3,990			3,896			3,862			3,938

Total Life Planners		7,208			7,248			7,194			7,074			7,213


Gibraltar Life Consultants		9,298			9,327			8,806			8,670			8,601

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 82 per U.S. dollar and Korean won 1150 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

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

(3)	Reflects business sold by Life Consultants and Independent Agents.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2014									December 31, 2013
	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		251,969		29,275		222,694		65.5	%		240,090		27,401		212,689		65.4	%
Public, held-to-maturity, at amortized cost		2,211		—		2,211		0.7	%		2,500		—		2,500		0.8	%
Private, available-for-sale, at fair value		48,822		15,673		33,149		9.7	%		46,461		15,811		30,650		9.4	%
Private, held-to-maturity, at amortized cost		669		—		669		0.2	%		812		—		812		0.2	%
Trading account assets supporting insurance liabilities, at fair value		20,507		—		20,507		6.0	%		20,827		—		20,827		6.4	%
Other trading account assets, at fair value		1,779		318		1,461		0.4	%		1,683		342		1,341		0.4	%
Equity securities, available-for-sale, at fair value		9,871		3,501		6,370		1.9	%		9,903		3,884		6,019		1.8	%
Commercial mortgage and other loans, at book value		44,489		10,287		34,202		10.1	%		40,806		9,673		31,133		9.6	%
Policy loans, at outstanding balance		11,857		4,929		6,928		2.0	%		11,766		5,013		6,753		2.1	%
Other long-term investments (1)		9,826		2,545		7,281		2.2	%		9,196		2,024		7,172		2.2	%
Short-term investments		5,280		746		4,534		1.3	%		7,311		1,866		5,445		1.7	%

Subtotal (2)		407,280		67,274		340,006		100.0	%		391,355		66,014		325,341		100.0	%

Invested assets of other entities and operations (3)		9,461		—		9,461					6,818		—		6,818

Total investments		416,741		67,274		349,467					398,173		66,014		332,159

Fixed Maturities by Credit Quality (2):


	September 30, 2014											December 31, 2013
	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		174,029		19,952		976		193,005		85.7	%		171,777		14,808		2,719		183,866		85.4	%
2		23,644		2,456		285		25,815		11.5	%		24,281		2,029		781		25,529		11.8	%

Subtotal - High or Highest Quality Securities		197,673		22,408		1,261		218,820		97.2	%		196,058		16,837		3,500		209,395		97.2	%

3		3,966		248		46		4,168		1.9	%		4,078		256		136		4,198		1.9	%
4		1,589		117		28		1,678		0.7	%		1,391		162		33		1,520		0.7	%
5		167		106		4		269		0.1	%		125		22		9		138		0.1	%
6		210		17		2		225		0.1	%		116		20		3		133		0.1	%

Subtotal - Other Securities		5,932		488		80		6,340		2.8	%		5,710		460		181		5,989		2.8	%

Total		203,605		22,896		1,341		225,160		100.0	%		201,768		17,297		3,681		215,384		100.0	%


Private Fixed Maturities:
NAIC Rating (4)
1		8,565		838		30		9,373		27.7	%		7,766		712		92		8,386		26.6	%
2		19,292		1,563		88		20,767		61.3	%		18,378		1,534		157		19,755		62.7	%

Subtotal - High or Highest Quality Securities		27,857		2,401		118		30,140		89.0	%		26,144		2,246		249		28,141		89.3	%

3		2,685		159		21		2,823		8.4	%		2,243		156		16		2,383		7.6	%
4		503		18		13		508		1.5	%		667		29		18		678		2.2	%
5		327		9		17		319		0.9	%		197		9		7		199		0.6	%
6		63		13		—		76		0.2	%		97		11		1		107		0.3	%

Subtotal - Other Securities		3,578		199		51		3,726		11.0	%		3,204		205		42		3,367		10.7	%

Total		31,435		2,600		169		33,866		100.0	%		29,348		2,451		291		31,508		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 asset management operations, including assets managed for third parties, (ii) derivative operations and (iii) those assets classified as “Separate account assets” on our balance sheet.

(3)	Includes invested assets of our asset management and derivative 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 September 30, 2014 and December 31, 2013, respectively, 438 securities with amortized cost of $1,576 million (fair value $1,614 million) and 306 securities with amortized cost of $806 million (fair value, $831 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2014					December 31, 2013
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		119,295		81.1	%		112,501		81.0	%
Public, held-to-maturity, at amortized cost		2,211		1.5	%		2,500		1.8	%
Private, available-for-sale, at fair value		7,844		5.3	%		6,762		4.9	%
Private, held-to-maturity, at amortized cost		669		0.5	%		812		0.6	%
Trading account assets supporting insurance liabilities, at fair value		1,956		1.3	%		1,925		1.4	%
Other trading account assets, at fair value		746		0.5	%		884		0.6	%
Equity securities, available-for-sale, at fair value		2,643		1.8	%		2,557		1.9	%
Commercial mortgage and other loans, at book value		7,208		4.9	%		6,581		4.7	%
Policy loans, at outstanding balance		2,308		1.6	%		2,280		1.6	%
Other long-term investments (2)		1,847		1.3	%		1,576		1.1	%
Short-term investments		294		0.2	%		541		0.4	%

Total		147,021		100.0	%		138,919		100.0	%


	September 30, 2014					December 31, 2013
	Amount		% of Total			Amount		% of Total
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		103,399		53.6	%		100,188		53.8	%
Public, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available-for-sale, at fair value		25,305		13.1	%		23,888		12.8	%
Private, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		18,551		9.6	%		18,902		10.1	%
Other trading account assets, at fair value		715		0.4	%		457		0.2	%
Equity securities, available-for-sale, at fair value		3,727		1.9	%		3,462		1.9	%
Commercial mortgage and other loans, at book value		26,994		14.0	%		24,552		13.2	%
Policy loans, at outstanding balance		4,620		2.4	%		4,473		2.4	%
Other long-term investments (2)		5,434		2.8	%		5,596		3.0	%
Short-term investments		4,240		2.2	%		4,904		2.6	%

Total		192,985		100.0	%		186,422		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

Third Quarter 2014

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended September 30
	2014									2013
	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		3.83	%		2,211			72			3.76	%		2,133			296
Equity securities		6.24	%		75			7			6.92	%		72			18
Commercial mortgage and other loans		4.55	%		326			54			4.91	%		295			1
Policy loans		5.11	%		89			—			4.82	%		81			—
Short-term investments and cash equivalents		0.22	%		7			—			0.24	%		7			—
Other investments		8.71	%		185			(496	)		6.34	%		126			(2,684	)

Gross investment income before investment expenses		3.97	%		2,893			(363	)		3.86	%		2,714			(2,369	)
Investment expenses		-0.15	%		(82	)		—			-0.13	%		(65	)		—

Subtotal		3.82	%		2,811			(363	)		3.73	%		2,649			(2,369	)

Investment results of other entities and operations (2)					282			38						268			50
Less, investment income related to adjusted operating income reconciling items					(53	)								(44	)

Total					3,040			(325	)					2,873			(2,319	)


	Nine Months Ended September 30
	2014									2013
	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		3.86	%		6,578			445			3.75	%		6,416			615
Equity securities		6.25	%		218			72			6.53	%		200			82
Commercial mortgage and other loans		4.70	%		964			47			5.02	%		868			(4	)
Policy loans		5.04	%		256			—			4.76	%		235			—
Short-term investments and cash equivalents		0.22	%		19			—			0.21	%		23			1
Other investments		9.00	%		564			(656	)		6.45	%		379			(4,947	)

Gross investment income before investment expenses		4.02	%		8,599			(92	)		3.82	%		8,121			(4,253	)
Investment expenses		-0.14	%		(255	)		—			-0.13	%		(222	)		—

Subtotal		3.88	%		8,344			(92	)		3.69	%		7,899			(4,253	)

Investment results of other entities and operations (2)					831			79						834			112
Less, investment income related to adjusted operating income reconciling items					(150	)								(138	)

Total					9,025			(13	)					8,595			(4,141	)

(1)

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

(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.

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 30
	2014								2013
	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		3.00	%		847			95		2.95	%		806			335
Equity securities		5.36	%		23			5		5.62	%		25			16
Commercial mortgage and other loans		4.03	%		71			7		4.12	%		63			2
Policy loans		3.87	%		23			—		3.80	%		23			—
Short-term investments and cash equivalents		0.21	%		1			—		0.21	%		1			—
Other investments (2)		7.84	%		46			66		9.15	%		59			11

Gross investment income before investment expenses		3.16	%		1,011			173		3.14	%		977			364
Investment expenses		-0.13	%		(42	)		—		-0.13	%		(40	)		—

Total		3.03	%		969			173		3.01	%		937			364


	Nine Months Ended September 30
	2014								2013
	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		3.00	%		2,481			500		2.88	%		2,459			710
Equity securities		5.39	%		69			41		5.01	%		67			66
Commercial mortgage and other loans		4.29	%		218			9		4.21	%		192			6
Policy loans		3.87	%		67			—		3.61	%		66			—
Short-term investments and cash equivalents		0.24	%		3			—		0.18	%		3			—
Other investments (2)		7.08	%		125			294		6.51	%		141			(767	)

Gross investment income before investment expenses		3.16	%		2,963			844		3.02	%		2,928			15
Investment expenses		-0.13	%		(122	)		—		-0.12	%		(118	)		—

Total		3.03	%		2,841			844		2.90	%		2,810			15

(1)

(2)	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

Third Quarter 2014

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 30
	2014									2013
	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		4.62	%		1,364			(23	)		4.52	%		1,327			(39	)
Equity securities		6.74	%		52			2			7.88	%		47			2
Commercial mortgage and other loans		4.73	%		255			47			5.18	%		232			(1	)
Policy loans		5.75	%		66			—			5.37	%		58			—
Short-term investments and cash equivalents		0.22	%		6			—			0.24	%		6			—
Other investments		9.03	%		139			(562	)		5.01	%		67			(2,695	)

Gross investment income before investment expenses		4.61	%		1,882			(536	)		4.42	%		1,737			(2,733	)
Investment expenses		-0.15	%		(40	)		—			0.13	%		(25	)		—

Total		4.46	%		1,842			(536	)		4.29	%		1,712			(2,733	)


	Nine Months Ended September 30
	2014									2013
	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		4.69	%		4,097			(55	)		4.61	%		3,957			(95	)
Equity securities		6.76	%		149			31			7.70	%		133			16
Commercial mortgage and other loans		4.83	%		746			38			5.31	%		676			(10	)
Policy loans		5.65	%		189			—			5.43	%		169			—
Short-term investments and cash equivalents		0.22	%		16			—			0.22	%		20			1
Other investments		9.73	%		439			(950	)		6.41	%		238			(4,180	)

Gross investment income before investment expenses		4.70	%		5,636			(936	)		4.49	%		5,193			(4,268	)
Investment expenses		-0.16	%		(133	)		—			-0.13	%		(104	)		—

Total		4.54	%		5,503			(936	)		4.36	%		5,089			(4,268	)

(1)

(2)

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF THIRD QUARTER 2013 AND 2014 ACTUARIAL UPDATES - ADJUSTED OPERATING INCOME

(in millions)


	Insurance and Annuity Benefits						Interest Credited to Policyholders’ Account Balances						Amortization of Deferred Policy Acquisition Costs						General and Administrative Expenses						Pre-Tax Adjusted Operating Income
	Third Quarter 2013			Third Quarter 2014			Third Quarter 2013			Third Quarter 2014			Third Quarter 2013			Third Quarter 2014			Third Quarter 2013			Third Quarter 2014			Third Quarter 2013		Third Quarter 2014
Actuarial Item:

Annual review of assumptions including: persistency, investment margins, costs associated with guaranteed benefits, and other elements of gross profits		(69	)		(3	)		(46	)		(1	)		(187	)		(7	)		1			(3	)		301		14

Quarterly adjustments for market performance and current quarter experience		(94	)		32			(13	)		7			(42	)		12			(1	)		(1	)		150		(50	)


Total of above items		(163	)		29			(59	)		6			(229	)		5			0			(4	)		451		(36	)


Reported amount		(68	)		123			54			107			(99	)		141			514			553


Amount excluding impact of items indicated above		95			94			113			101			130			136			514			557

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2013 AND 2014 ACTUARIAL UPDATES - ADJUSTED OPERATING INCOME

(in millions)


	Policy Charges and Fee Income (1)						Insurance and Annuity Benefits (2)					Interest Credited to Policyholders’ Account Balances				Amortization of Deferred Policy Acquisition Costs						General and Administrative Expenses				Pre-Tax Adjusted Operating Income
	Third Quarter 2013			Third Quarter 2014			Third Quarter 2013			Third Quarter 2014		Third Quarter 2013		Third Quarter 2014		Third Quarter 2013			Third Quarter 2014			Third Quarter 2013		Third Quarter 2014		Third Quarter 2013		Third Quarter 2014
Actuarial Item:

Annual review of assumptions for mortality, persistency, premium payment pattern, and other elements of expected gross profits, and guaranteed minimum death benefits		(145	)		(62	)		(11	)		39		0		1		(176	)		(75	)		15		36		27		(63	)


Reported amount		374			502			487			548		149		152		(113	)		27			435		436


Amount excluding impact of items indicated above		519			564			498			509		149		151		63			102			420		400

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

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

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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. Amounts ascribed to Gibraltar Life Consultants include production by captive agents associated with consolidated joint venture of Gibraltar Life and Other Operations.

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 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

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.

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:

Includes results from consolidated joint venture operation of Gibraltar Life and Other Operations.

17. Gibraltar Life Consultants:

Captive insurance agents for Gibraltar Life. Count and policy persistency do not include captive agents associated with consolidated joint venture of Gibraltar Life and Other Operations.

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

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

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

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

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

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

21. Individual Annuities - Net Amounts at Risk:

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

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

Page 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

KEY DEFINITIONS AND FORMULAS

22. Insurance and Annuity Benefits:

Total death benefits, annuity benefits, disability benefits, other policy benefits, and losses paid or incurred, under insurance and annuity contracts, plus the change in reserves for future policy benefits, losses and loss adjustment expenses.

23. International Life Planners:

Captive insurance agents in our Life Planner Operations.

24. Non-recourse and Limited-recourse Debt:

Limited and non-recourse borrowing is where the holder is entitled to collect only against the assets pledged to the debt as collateral or has only very limited rights to collect against other assets.

25. Operating return on average equity (based on adjusted operating income):

Adjusted operating income after-tax (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average attributed equity for the Financial Services Businesses excluding accumulated other comprehensive income.

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 4.6% for the three months ended September 30, 2014, 10.9% for the three months ended June 30, 2014, 13.8% for the three months ended March 31, 2014, (5.1)% for the three months ended December 31, 2013, and 11.6% for the three months ended September 30, 2013.

26. Policy Persistency - Group Insurance:

Percentage of the premiums in force at the end of the prior year that are still in force at the end of the period (excluding Servicemembers’ Group Life Insurance and Prudential Employee Benefit Plan).

27. Policy Persistency - International Insurance:

13 month persistency represents the percentage of policies issued that are still in force at the beginning of their second policy year. 25 month persistency represents the percentage of policies issued that are still in force at the beginning of their third policy year.

28. Prudential Agents:

Captive insurance agents in our insurance operations in the United States.

29. Prudential Agent productivity:

Commissions on new sales of all products by Prudential Agents under contract for the entire period, divided by the number of those Prudential Agents. Excludes commissions on new sales by Prudential Agents hired or departed during the period. For interim reporting periods, the productivity measures are annualized.

30. Separate Accounts:

Assets of our insurance companies allocated under certain policies and contracts that are segregated from the general account and other separate accounts. The policyholder or contractholder predominantly bears the risk of investments held in a separate account.

31. Wrap-Fee Products:

Investment products generating asset-based fees in which the funds of the customer are generally invested in other investment products such as mutual funds.

Page 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2014

LOGO

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of November 5, 2014


	A.M. Best	Standard & Poor’s	Moody’s	Fitch Ratings
The Prudential Insurance Company of America	A+	AA-	A1	A+
PRUCO Life Insurance Company	A+	AA-	A1	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-	A1	A+
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)	NR	AA-	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	AA-	NR	NR
The Prudential Gibraltar Financial Life Insurance Co. Ltd.	NR	AA-	NR	NR
Prudential Life Insurance Co. of Taiwan, Inc.	NR	twAA+	NR	NR

CREDIT RATINGS:
as of November 5, 2014

Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-1	P-2	F2
Long-Term Senior Debt	a-	A	Baa1	BBB+
Junior Subordinated Long-Term Debt	bbb	BBB+	Baa2	BBB-

The Prudential Insurance Company of America:
Capital and surplus notes	a	A	A3	A-

Prudential Funding, LLC:
Short-Term Debt	AMB-1	A-1+	P-1	F1
Long-Term Senior Debt	a+	AA-	A2	A

PRICOA Global Funding I
Long-Term Senior Debt	aa-	AA-	A1	A+

*	NR indicates not rated.

(1)	Prudential Life Insurance Co. of Taiwan was assigned a financial strength rating by Taiwan Ratings Corporation, a partner of Standard and Poor’s.

INVESTOR INFORMATION:


Corporate Offices:		Investor Information Hotline:

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

Common Stock:

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

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PRUDENTIAL FINANCIAL INC - FORM 8-K - EX-99.2 - November 5, 2014

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