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

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8-K - FORM 8-K - PRUDENTIAL FINANCIAL INC	d35582d8k.htm
EX-99.1 - EX-99.1 - PRUDENTIAL FINANCIAL INC	d35582dex991.htm

Exhibit 99.2

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

Second Quarter 2015

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. (PFI), including its Closed Block Business for periods prior to first quarter 2015. All financial information in this document is unaudited.

August 5, 2015

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

CONTENTS


	Page
HIGHLIGHTS
Financial Highlights		1-3
Operations Highlights		4

Combined Statements of Operations		5
Combining Statements of Operations (Quarter)		6
Combining Statements of Operations		7
Consolidated Balance Sheets - PFI		8
Combined Balance Sheets - PFI Excluding Closed Block Business / Division		9
Combining Balance Sheets by Division		10
Short-Term and Long-Term Debt - Unaffiliated		11

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION
Combined Statements of Operations		12
Combining Statements of Operations		13
Individual Annuities Sales Results and Account Values		14
Individual Annuities Account Value Activity		15
Individual Annuities Living Benefit Features		16
Individual Annuities Death Benefit Features		17
Retirement Segment Sales Results and Account Values		18
Supplementary Revenue and Assets Under Management Information for Asset Management Segment		19
Supplementary Assets Under Management Information for Asset Management Segment		20

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION
Combined Statements of Operations		21
Combining Statements of Operations		22
Individual Life Annualized New Business Premiums, Account Value Activity, and Face Amount in Force		23
Supplementary Information for Individual Life Insurance		24
Supplementary Information for Group Insurance		25

DEFERRED POLICY ACQUISITION COSTS & DEFERRED SALES INDUCEMENTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE		26

INTERNATIONAL INSURANCE DIVISION
Combined Statements of Operations		27
Combining Statements of Operations		28
Sales Results and Supplementary Information		29-30

INVESTMENT PORTFOLIO
Investment Portfolio Composition		31
Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		32
Investment Results		33
Investment Results - Japanese Insurance Operations		34
Investment Results - Excluding Japanese Insurance Operations		35

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF ACTUARIAL UPDATES - ADJUSTED OPERATING INCOME		36

INDIVIDUAL LIFE - LINE ITEM IMPACT OF ACTUARIAL UPDATES - ADJUSTED OPERATING INCOME		37

KEY DEFINITIONS AND FORMULAS		38-40

RATINGS AND INVESTOR INFORMATION		41

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

From December 18, 2001, the date of demutualization, through December 31, 2014, the Company organized its principal operations into the Financial Services Businesses and the Closed Block Business, and had two classes of common stock. The Common Stock, which is publicly traded, reflected the performance of the Financial Services Businesses, while the Class B Stock, which was issued through a private placement, reflected the performance of the Closed Block Business. On January 2, 2015, Prudential Financial, Inc. repurchased and cancelled all of the 2.0 million shares of the Class B Stock. As a result, the Company no longer organizes its principal operations into the Financial Services Businesses and the Closed Block Business. The Company’s principal operations are comprised of four divisions, including a Closed Block division, which is accounted for as a divested business that is reported separately from the divested businesses that are included in Corporate and Other operations. The results of the Closed Block division are excluded from adjusted operating income under the Company’s definition of “divested businesses” which includes businesses that have been sold or exited, including businesses that have been placed in wind down and do not qualify for “discontinued operations” accounting treatment under U.S. GAAP.

This quarterly financial supplement reflects, for all periods presented, an adjustment to the calculation of operating return on average equity (based on adjusted operating income) to remove the cumulative impact from foreign currency exchange rate remeasurement from attributed equity. See operating return on average equity definition for further information.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date						% Change			2014									2015
2015			2014			% Change			2Q			3Q			4Q			1Q			2Q

								Pre-tax adjusted operating income (loss) by division:
	1,999			1,821			10%	U.S. Retirement Solutions and Investment Management Division		876			823			823			1,018			981
	458			335			37%	U.S. Individual Life and Group Insurance Division		204			24			162			146			312
	1,676			1,721			-3%	International Insurance Division		884			845			686			834			842
	(547	)		(683	)		20%	Corporate and other operations		(341	)		(339	)		(326	)		(253	)		(294	)

	3,586			3,194			12%	Total pre-tax adjusted operating income		1,623			1,353			1,345			1,745			1,841
	938			881			6%	Income taxes, applicable to adjusted operating income		447			319			337			447			491

	2,648			2,313			14%	After-tax adjusted operating income (1)		1,176			1,034			1,008			1,298			1,350


								Reconciling items:
	1,337			(281	)		576%	Realized investment gains (losses), net, and related charges and adjustments		(273	)		(1,132	)		(2,717	)		1,051			286
	(137	)		326			-142%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		225			(131	)		144			83			(220	)
	37			(232	)		116%	Change in experience-rated contractholder liabilities due to asset value changes		(189	)		93			(155	)		(197	)		234
								Divested businesses:
	30			—			—	Closed Block division		—			—			—			(22	)		52
	(34	)		120			-128%	Other divested businesses		47			(7	)		54			75			(109	)
	58			29			100%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		18			8			7			13			45

	1,291			(38	)		3497%	Total reconciling items, before income taxes		(172	)		(1,169	)		(2,667	)		1,003			288
	440			(19	)		2416%	Income taxes, not applicable to adjusted operating income		(58	)		(606	)		(457	)		252			188

	851			(19	)		4579%	Total reconciling items, after income taxes		(114	)		(563	)		(2,210	)		751			100

	3,499			2,294			53%	Income (loss) from continuing operations (after-tax) before equity in earnings of operating joint ventures (1)		1,062			471			(1,202	)		2,049			1,450

	(57	)		(28	)		-104%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(17	)		(6	)		(7	)		(13	)		(44	)

	3,442			2,266			52%	Income (loss) from continuing operations attributable to Prudential Financial, Inc. (1)		1,045			465			(1,209	)		2,036			1,406
	63			34			85%	Earnings attributable to noncontrolling interests		23			11			12			10			53

	3,505			2,300			52%	Income (loss) from continuing operations (after-tax) (1)		1,068			476			(1,197	)		2,046			1,459
	—			8			-100%	Income from discontinued operations, net of taxes		4			—			3			—			—

	3,505			2,308			52%	Net income (loss) (1)		1,072			476			(1,194	)		2,046			1,459
	63			34			85%	Less: Income attributable to noncontrolling interests		23			11			12			10			53

	3,442			2,274			51%	Net income (loss) attributable to Prudential Financial, Inc. (1)		1,049			465			(1,206	)		2,036			1,406


	16.9%			16.0%				Operating Return on Average Equity (based on adjusted operating income) (1)(2)		16.1%			13.8%			13.2%			16.9%			16.8%
								Reconciliation to Consolidated Net Income (Loss) Attributable to Prudential Financial, Inc.:
				2,274				Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		1,049			465			(1,206	)
				54				Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		41			47			(253	)

				2,328				Consolidated net income (loss) attributable to Prudential Financial, Inc.		1,090			512			(1,459	)

(1)	Represents results of Financial Services Businesses for periods prior to first quarter 2015.

(2)	See operating return on average equity definition for further information.

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date							2014									2015
2015			2014				2Q			3Q			4Q			1Q			2Q

						Earnings per share of Common Stock (diluted): (1)
	5.69			4.89		After-tax adjusted operating income (2)		2.49			2.20			2.12			2.79			2.91

						Reconciling items:
	2.89			(0.60	)	Realized investment gains (losses), net, and related charges and adjustments		(0.58	)		(2.42	)		(5.84	)		2.27			0.62
	(0.30	)		0.69		Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.48			(0.28	)		0.31			0.18			(0.48	)
	0.08			(0.49	)	Change in experience-rated contractholder liabilities due to asset value changes		(0.40	)		0.20			(0.33	)		(0.43	)		0.51
						Divested businesses:
	0.06			—		Closed Block division		—			—			—			(0.05	)		0.11
	(0.07	)		0.26		Other divested businesses		0.10			(0.01	)		0.12			0.16			(0.24	)
	(0.02	)		—		Difference in earnings allocated to participating unvested share-based payment awards		—			0.01			0.01			(0.02	)		—

	2.64			(0.14	)	Total reconciling items, before income taxes		(0.40	)		(2.50	)		(5.73	)		2.11			0.52
	0.93			(0.04	)	Income taxes, not applicable to adjusted operating income		(0.12	)		(1.29	)		(0.91	)		0.53			0.40

	1.71			(0.10	)	Total reconciling items, after income taxes		(0.28	)		(1.21	)		(4.82	)		1.58			0.12


	7.40			4.79		Income (loss) from continuing operations (after-tax) attributable to Prudential Financial, Inc. (2)		2.21			0.99			(2.70	)		4.37			3.03
	—			0.02		Income from discontinued operations, net of taxes		0.01			—			0.01			—			—

	7.40			4.81		Net income (loss) attributable to Prudential Financial, Inc. (2)		2.22			0.99			(2.69	)		4.37			3.03


	453.4			460.1		Weighted average number of outstanding Common shares (basic)		459.4			458.0			455.9			454.3			452.6
	462.2			469.4		Weighted average number of outstanding Common shares (diluted)		468.5			467.2			465.0			463.0			461.4

	—			(5	)	Direct equity adjustments for earnings per share calculation		(3	)		(3	)		(19	)		—			—
	9			9		Earnings related to interest, net of tax, on exchangeable surplus notes		5			4			4			4			5

						*Earnings allocated to participating unvested share-based payment awards* *for earnings per share calculation*
	25			22		After-tax adjusted operating income (2)		12			9			8			12			13
	33			21		Income from continuing operations (after-tax) (2)		10			4			2			19			14

(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, 2014, as all potential common shares are antidilutive due to the loss from continuing operations available to holders of Common Stock after direct equity adjustment.

(2)	Represents results of Financial Services Businesses for periods prior to first quarter 2015.

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date					2014									2015
2015		2014			2Q			3Q			4Q			1Q			2Q

				*Capitalization Data (1):*
				Senior Debt:
				Short-term debt		3,729			4,354			1,746			3,013			3,621
				Long-term debt		17,004			16,113			14,947			14,819			14,380
				Junior Subordinated Long-Term Debt		4,884			4,884			4,884			4,884			5,884

				Attributed Equity:
				Including accumulated other comprehensive income		39,663			40,203			40,981			45,044			41,723
				Excluding accumulated other comprehensive income (2)		26,771			26,875			25,099			27,292			28,319
				Amount included above for foreign currency exchange rate remeasurement (3)		(2,818	)		(3,193	)		(4,783	)		(4,353	)		(4,211	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (3)		29,589			30,068			29,882			31,645			32,530


				Book value per share of Common Stock:
				Including accumulated other comprehensive income (4)		85.35			86.76			88.80			98.16			91.17
				Excluding accumulated other comprehensive income (2)		57.61			58.00			54.39			59.52			61.89
				Amount included above for foreign currency exchange rate remeasurement (3)		(6.06	)		(6.89	)		(10.36	)		(9.49	)		(9.20	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (3)		63.67			64.89			64.75			69.01			71.09


				Number of diluted shares at end of period (5)		464.7			463.4			461.5			458.5			457.6

				*Common Stock Price Range (based on closing price):*
	91.47		91.23	High		91.10			93.16			91.67			90.11			91.47
	75.32		77.61	Low		77.61			85.75			77.86			75.32			79.13
	87.52		88.77	Close		88.77			87.94			90.46			80.31			87.52


				*Common Stock market capitalization (1)*		40,692			40,197			41,141			36,421			39,550

(1)	As of end of period. Represents financial position of Financial Services Businesses for periods prior to first quarter 2015.

(2)	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.

(3)	Represents cumulative impact of net gains and losses resulting from foreign currency exchange rate remeasurement and associated realized investment gains and losses included in net income (loss) and currency translation adjustments corresponding to realized investment gains and losses.

(4)

Book value per share of Common Stock including accumulated other comprehensive income for the first and second quarter of 2015 includes a $500 million increase in equity and a 5.5 million increase in diluted shares reflecting the dilutive impact of exchangeable surplus notes. These notes are currently dilutive when book value per share is greater than $90.85.

(5)	The number of diluted shares at end of period excludes the impact of exchangeable surplus notes due to the antidilutive impact of conversion.

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

OPERATIONS HIGHLIGHTS


Year-to-date					2014						2015
2015		2014			2Q		3Q		4Q		1Q		2Q

				*Assets Under Management and Administration ($ billions) (1) (2):*

				Assets Under Management :
				Managed by U.S. Retirement Solutions and Investment Management Division:
				Asset Management Segment - Investment Management & Advisory Services
				Institutional customers		367.0		363.7		370.0		380.9		380.6
				Retail customers		180.1		180.0		186.1		198.4		199.2
				General account		374.4		373.8		377.4		382.4		368.5

				Total Investment Management and Advisory Services		921.5		917.5		933.5		961.7		948.3

				Non-proprietary assets under management		200.6		197.4		197.5		195.8		191.5

				Total managed by U.S. Retirement Solutions and Investment Management Division		1,122.1		1,114.9		1,131.0		1,157.5		1,139.8
				Managed by U.S. Individual Life and Group Insurance Division		23.4		22.3		23.0		23.7		24.1
				Managed by International Insurance Division		20.1		23.0		21.9		22.5		22.9

				Total assets under management		1,165.6		1,160.2		1,175.9		1,203.7		1,186.8
				Client assets under administration		125.4		152.6		154.5		159.3		165.7

				Total assets under management and administration		1,291.0		1,312.8		1,330.4		1,363.0		1,352.5


				Assets managed or administered for customers outside of the United States at end of period		262.2		261.0		248.3		262.4		263.1

				*Distribution Representatives (1):*
				Prudential Agents		2,795		2,822		2,784		2,822		2,866
				International Life Planners		7,074		7,213		7,352		7,469		7,415
				Gibraltar Life Consultants		8,670		8,601		8,707		8,645		8,565

	50		48	*Prudential Agent productivity ($ thousands)*		51		53		69		47		53

(1)	As of end of period.

(2)	At fair market value.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

COMBINED STATEMENTS OF OPERATIONS

(in millions)


										PFI Excluding Closed Block Business (1)									Consolidated PFI
Year-to-date						% Change				2014									2015
2015			2014			% Change				2Q			3Q			4Q			1Q			2Q

									Revenues (2):
	12,695			10,391			22	%	Premiums		5,261			5,923			9,890			5,913			6,782
	2,937			3,032			-3	%	Policy charges and fee income		1,523			1,512			1,580			1,554			1,383
	5,979			5,985			0	%	Net investment income		2,968			3,040			3,021			3,005			2,974
	2,696			2,641			2	%	Asset management fees, commissions and other income		1,361			1,291			1,338			1,335			1,361

	24,307			22,049			10	%	Total revenues		11,113			11,766			15,829			11,807			12,500


									Benefits and Expenses (2):
	13,141			10,836			21	%	Insurance and annuity benefits		5,419			6,423			10,280			6,216			6,925
	1,791			1,859			-4	%	Interest credited to policyholders’ account balances		934			942			919			884			907
	641			640			0	%	Interest expense		319			340			328			317			324
	(1,311	)		(1,347	)		3	%	Deferral of acquisition costs		(679	)		(675	)		(672	)		(647	)		(664	)
	679			951			-29	%	Amortization of acquisition costs		482			376			526			428			251
	5,780			5,916			-2	%	General and administrative expenses		3,015			3,007			3,103			2,864			2,916

	20,721			18,855			10	%	Total benefits and expenses		9,490			10,413			14,484			10,062			10,659


	3,586			3,194			12	%	Adjusted operating income before income taxes		1,623			1,353			1,345			1,745			1,841


									Reconciling items:
	1,602			(153	)		1147	%	Realized investment gains (losses), net, and related adjustments		(202	)		(1,161	)		(2,274	)		1,662			(60	)
	(265	)		(128	)		-107	%	Related charges		(71	)		29			(443	)		(611	)		346

	1,337			(281	)		576	%	Total realized investment gains (losses), net, and related charges and adjustments		(273	)		(1,132	)		(2,717	)		1,051			286

	(137	)		326			-142	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		225			(131	)		144			83			(220	)
	37			(232	)		116	%	Change in experience-rated contractholder liabilities due to asset value changes		(189	)		93			(155	)		(197	)		234
									Divested businesses:
	30			—			—		Closed Block division		—			—			—			(22	)		52
	(34	)		120			-128	%	Other divested businesses		47			(7	)		54			75			(109	)
	58			29			100	%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		18			8			7			13			45

	1,291			(38	)		3497	%	Total reconciling items, before income taxes		(172	)		(1,169	)		(2,667	)		1,003			288


	4,877			3,156			55	%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		1,451			184			(1,322	)		2,748			2,129
	1,378			862			60	%	Income tax expense (benefit)		389			(287	)		(120	)		699			679

	3,499			2,294			53	%	Income (loss) from continuing operations before equity in earnings of operating joint ventures		1,062			471			(1,202	)		2,049			1,450

(1)	Represents results of Financial Services Businesses for periods prior to first quarter 2015.

(2)

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

Page 5

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

COMBINING STATEMENTS OF OPERATIONS

(in millions)


	Quarter Ended June 30, 2015
	PFI Excluding Closed Block Division			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1) :
Premiums		6,782			1,939			1,200			3,633			10
Policy charges and fee income		1,383			740			516			139			(12	)
Net investment income		2,974			1,186			551			1,099			138
Asset management fees, commissions and other income		1,361			1,291			184			166			(280	)

Total revenues		12,500			5,156			2,451			5,037			(144	)


Benefits and Expenses (1):
Insurance and annuity benefits		6,925			2,330			1,471			3,133			(9	)
Interest credited to policyholders’ account balances		907			446			237			224			—
Interest expense		324			24			140			1			159
Deferral of acquisition costs		(664	)		(128	)		(157	)		(395	)		16
Amortization of acquisition costs		251			132			(127	)		255			(9	)
General and administrative expenses		2,916			1,371			575			977			(7	)

Total benefits and expenses		10,659			4,175			2,139			4,195			150


Adjusted operating income (loss) before income taxes		1,841			981			312			842			(294	)


	Quarter Ended June 30, 2014
	PFI Excluding Closed Block Business			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		5,261			201			1,241			3,822			(3	)
Policy charges and fee income		1,523			715			681			138			(11	)
Net investment income		2,968			1,193			540			1,128			107
Asset management fees, commissions and other income		1,361			1,244			198			164			(245	)

Total revenues		11,113			3,353			2,660			5,252			(152	)


Benefits and Expenses (1):
Insurance and annuity benefits		5,419			651			1,550			3,217			1
Interest credited to policyholders’ account balances		934			481			211			242			—
Interest expense		319			35			129			2			153
Deferral of acquisition costs		(679	)		(147	)		(130	)		(420	)		18
Amortization of acquisition costs		482			139			100			256			(13	)
General and administrative expenses		3,015			1,318			596			1,071			30

Total benefits and expenses		9,490			2,477			2,456			4,368			189


Adjusted operating income (loss) before income taxes		1,623			876			204			884			(341	)

(1)

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

COMBINING STATEMENTS OF OPERATIONS

(in millions)


	Six Months Ended June 30, 2015
	PFI Excluding Closed Block Division			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1) :
Premiums		12,695			3,152			2,388			7,152			3
Policy charges and fee income		2,937			1,460			1,221			279			(23	)
Net investment income		5,979			2,403			1,100			2,198			278
Asset management fees, commissions and other income		2,696			2,539			370			314			(527	)

Total revenues		24,307			9,554			5,079			9,943			(269	)


Benefits and Expenses (1):
Insurance and annuity benefits		13,141			3,946			3,069			6,135			(9	)
Interest credited to policyholders’ account balances		1,791			896			447			448			—
Interest expense		641			58			276			2			305
Deferral of acquisition costs		(1,311	)		(248	)		(296	)		(796	)		29
Amortization of acquisition costs		679			231			(39	)		507			(20	)
General and administrative expenses		5,780			2,672			1,164			1,971			(27	)

Total benefits and expenses		20,721			7,555			4,621			8,267			278


Adjusted operating income (loss) before income taxes		3,586			1,999			458			1,676			(547	)


	Six Months Ended June 30, 2014
	PFI Excluding Closed Block Business			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		10,391			398			2,481			7,518			(6	)
Policy charges and fee income		3,032			1,410			1,369			276			(23	)
Net investment income		5,985			2,469			1,098			2,212			206
Asset management fees, commissions and other income		2,641			2,431			370			321			(481	)

Total revenues		22,049			6,708			5,318			10,327			(304	)


Benefits and Expenses (1):
Insurance and annuity benefits		10,836			1,311			3,171			6,330			24
Interest credited to policyholders’ account balances		1,859			957			421			481			—
Interest expense		640			71			253			2			314
Deferral of acquisition costs		(1,347	)		(275	)		(273	)		(832	)		33
Amortization of acquisition costs		951			271			199			506			(25	)
General and administrative expenses		5,916			2,552			1,212			2,119			33

Total benefits and expenses		18,855			4,887			4,983			8,606			379


Adjusted operating income (loss) before income taxes		3,194			1,821			335			1,721			(683	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

CONSOLIDATED BALANCE SHEETS - PFI

(in millions)


	Consolidated PFI
	06/30/2014		09/30/2014		12/31/2014		03/31/2015		06/30/2015

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $277,756; $273,760; $265,116; $263,134; $262,820)		304,472		301,067		299,090		299,422		290,063
Fixed maturities, held to maturity, at amortized cost (fair value $3,464; $3,183; $2,902; $2,817; $2,674)		3,171		2,880		2,575		2,513		2,396
Trading account assets supporting insurance liabilities, at fair value		21,273		20,507		20,263		20,626		20,267
Other trading account assets, at fair value		8,665		9,321		10,874		11,989		12,749
Equity securities, available for sale, at fair value (cost $7,218; $7,099; $6,921; $7,045; $6,870)		10,222		9,878		9,861		10,206		9,901
Commercial mortgage and other loans		42,964		44,836		46,432		47,478		48,569
Policy loans		11,966		11,857		11,712		11,693		11,652
Other long-term investments		10,923		10,860		10,921		11,001		10,678
Short-term investments		5,663		5,535		8,258		5,947		5,669

Total investments		419,319		416,741		419,986		420,875		411,944
Cash and cash equivalents		12,160		17,222		14,918		19,119		17,038
Accrued investment income		3,162		3,209		3,130		3,135		3,117
Deferred policy acquisition costs		16,669		16,585		15,971		15,639		16,569
Value of business acquired		3,499		3,394		2,836		2,514		2,994
Other assets		13,927		14,380		13,379		14,624		14,728
Separate account assets		296,801		292,616		296,435		302,706		296,341

Total assets		765,537		764,147		766,655		778,612		762,731


Liabilities:
Future policy benefits		215,219		215,847		217,766		220,840		216,555
Policyholders’ account balances		138,545		139,133		136,150		135,143		135,630
Securities sold under agreements to repurchase		8,786		9,039		9,407		7,766		7,863
Cash collateral for loaned securities		4,889		4,569		4,241		4,437		3,808
Income taxes		8,504		8,634		9,881		11,390		9,239
Senior short-term debt		3,804		4,429		3,839		3,013		3,621
Senior long-term debt		18,604		17,713		14,947		14,819		14,380
Junior subordinated long-term debt		4,884		4,884		4,884		4,884		5,884
Notes issued by consolidated variable interest entities		4,573		5,397		6,058		6,830		7,455
Other liabilities		19,121		19,534		20,698		21,210		19,663
Separate account liabilities		296,801		292,616		296,435		302,706		296,341

Total liabilities		723,730		721,795		724,306		733,038		720,439


Attributed Equity:
Accumulated other comprehensive income		13,077		13,501		16,050		17,752		13,404
Other attributed equity		28,118		28,268		25,720		27,292		28,319

Total attributed equity		41,195		41,769		41,770		45,044		41,723

Noncontrolling Interest		612		583		579		530		569

Total Equity		41,807		42,352		42,349		45,574		42,292

Total liabilities and equity		765,537		764,147		766,655		778,612		762,731

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

COMBINED BALANCE SHEETS - PFI EXCLUDING CLOSED BLOCK BUSINESS / DIVISION

(in millions)


	PFI Excluding Closed Block Business (1)								PFI Excluding Closed Block Division
	06/30/2014		09/30/2014		12/31/2014		03/31/2015		06/30/2015

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $236,069; $232,413; $225,342; $225,741; $225,742)		258,673		256,119		255,425		258,359		250,739
Fixed maturities, held to maturity, at amortized cost (fair value $3,464; $3,183; $2,902; $2,817; $2,674)		3,171		2,880		2,575		2,513		2,396
Trading account assets supporting insurance liabilities, at fair value		21,273		20,507		20,263		20,626		20,267
Other trading account assets, at fair value		8,351		9,003		10,524		11,671		12,439
Equity securities, available for sale, at fair value (cost $4,867; $4,815; $4,732; $4,782; $4,811)		6,433		6,377		6,339		6,593		6,671
Commercial mortgage and other loans		33,000		34,549		36,957		37,890		38,731
Policy loans		7,021		6,928		6,798		6,813		6,804
Other long-term investments		8,309		8,315		8,155		8,105		7,841
Short-term investments		4,278		4,789		6,221		4,978		4,571

Total investments		350,509		349,467		353,257		357,548		350,459
Cash and cash equivalents		11,335		15,447		13,718		17,709		16,029
Accrued investment income		2,583		2,605		2,579		2,581		2,598
Deferred policy acquisition costs		16,300		16,219		15,561		15,239		16,178
Value of business acquired		3,499		3,394		2,836		2,514		2,994
Other assets		13,224		13,788		11,378		14,026		14,239
Separate account assets		296,801		292,616		296,435		302,706		296,341

Total assets		694,251		693,536		695,764		712,323		698,838


Liabilities:
Future policy benefits		165,179		165,985		167,903		171,057		166,890
Policyholders’ account balances		133,217		133,814		130,840		129,854		130,358
Securities sold under agreements to repurchase		4,895		4,979		5,492		4,308		4,592
Cash collateral for loaned securities		3,596		3,270		3,064		3,024		2,679
Income taxes		8,929		9,078		10,536		12,132		9,985
Senior short-term debt		3,729		4,354		1,746		3,013		3,621
Senior long-term debt		17,004		16,113		14,947		14,819		14,380
Junior subordinated long-term debt		4,884		4,884		4,884		4,884		5,884
Notes issued by consolidated variable interest entities		4,573		5,397		6,058		6,830		7,455
Other liabilities		11,169		12,260		12,299		12,594		12,864
Separate account liabilities		296,801		292,616		296,435		302,706		296,341

Total liabilities		653,976		652,750		654,204		665,221		655,049


Attributed Equity:
Accumulated other comprehensive income		12,892		13,328		15,882		17,739		13,406
Other attributed equity		26,771		26,875		25,099		28,833		29,814

Total attributed equity		39,663		40,203		40,981		46,572		43,220

Noncontrolling Interest		612		583		579		530		569

Total Equity		40,275		40,786		41,560		47,102		43,789

Total liabilities and equity		694,251		693,536		695,764		712,323		698,838

(1)	Represents financial position of Financial Services Businesses for periods prior to first quarter 2015.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

COMBINING BALANCE SHEETS BY DIVISION

(in millions)


	As of June 30, 2015

	Consolidated PFI		Closed Block Division			PFI Excluding Closed Block Division		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		411,944		61,485			350,459		131,691		49,922		153,162		15,684
Deferred policy acquisition costs		16,569		391			16,178		5,311		4,835		6,354		(322	)
Other assets		37,877		2,017			35,860		12,762		11,429		8,921		2,748
Separate account assets		296,341		—			296,341		250,877		46,354		2,578		(3,468	)

Total assets		762,731		63,893			698,838		400,641		112,540		171,015		14,642


Liabilities:
Future policy benefits		216,555		49,665			166,890		59,436		14,350		89,034		4,070
Policyholders’ account balances		135,630		5,272			130,358		55,893		31,044		43,423		(2	)
Debt		23,885		—			23,885		3,497		8,388		86		11,914
Other liabilities		48,028		10,453			37,575		14,605		6,518		14,107		2,345
Separate account liabilities		296,341		—			296,341		250,877		46,354		2,578		(3,468	)

Total liabilities		720,439		65,390			655,049		384,308		106,654		149,228		14,859


Attributed Equity:
Accumulated other comprehensive income (loss)		13,404		(2	)		13,406		1,147		844		12,719		(1,304	)
Other attributed equity		28,319		(1,495	)		29,814		14,640		5,042		9,016		1,116

Total attributed equity		41,723		(1,497	)		43,220		15,787		5,886		21,735		(188	)

Noncontrolling Interest		569		—			569		546		—		52		(29	)

Total Equity		42,292		(1,497	)		43,789		16,333		5,886		21,787		(217	)


Total liabilities and equity		762,731		63,893			698,838		400,641		112,540		171,015		14,642



	As of December 31, 2014

	Consolidated PFI		Closed Block Business			PFI Excluding Closed Block Business		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		419,986		66,729			353,257		132,397		50,134		156,414		14,312
Deferred policy acquisition costs		15,971		410			15,561		5,493		4,233		6,156		(321	)
Other assets		34,263		3,752			30,511		15,909		10,971		6,735		(3,104	)
Separate account assets		296,435		—			296,435		251,040		45,939		2,330		(2,874	)

Total assets		766,655		70,891			695,764		404,839		111,277		171,635		8,013


Liabilities:
Future policy benefits		217,766		49,863			167,903		61,305		14,350		88,287		3,961
Policyholders’ account balances		136,150		5,310			130,840		56,158		29,798		44,866		18
Debt		23,670		2,093			21,577		5,758		8,386		38		7,395
Other liabilities		50,285		12,836			37,449		13,631		6,444		14,741		2,633
Separate account liabilities		296,435		—			296,435		251,040		45,939		2,330		(2,874	)

Total liabilities		724,306		70,102			654,204		387,892		104,917		150,262		11,133


Attributed Equity:
Accumulated other comprehensive income (loss)		16,050		168			15,882		2,421		1,355		13,377		(1,271	)
Other attributed equity		25,720		621			25,099		13,965		5,005		7,942		(1,813	)

Total attributed equity		41,770		789			40,981		16,386		6,360		21,319		(3,084	)

Noncontrolling Interest		579		—			579		561		—		54		(36	)

Total Equity		42,349		789			41,560		16,947		6,360		21,373		(3,120	)


Total liabilities and equity		766,655		70,891			695,764		404,839		111,277		171,635		8,013

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED

(in millions)


	PFI Excluding Closed Block Division								PFI Excluding Closed Block Business
	As of June 30, 2015								As of December 31, 2014
	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
*Borrowings by use of proceeds:*
Capital Debt		439		5,164		5,884		11,487		454		7,997		4,884		13,335
Operating Debt - Investment related		1,967		8,248		—		10,215		1,754		4,958		—		6,712
Operating Debt - Specified businesses		1,215		458		—		1,673		1,631		1,489		—		3,120
Limited recourse and non-recourse borrowing		—		510		—		510		—		503		—		503

Total debt		3,621		14,380		5,884		23,885		3,839		14,947		4,884		23,670


	PFI Excluding Closed Block Division								PFI Excluding Closed Block Business
	As of June 30, 2015								As of December 31, 2014
	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
*Borrowings by sources:*
Capital Debt		10,395		1,042		50		11,487		12,241		1,041		53		13,335
Operating Debt - Investment related		7,360		652		2,203		10,215		4,013		494		2,205		6,712
Operating Debt - Specified businesses		542		1,131		—		1,673		2,125		995		—		3,120
Limited recourse and non-recourse borrowing		—		510		—		510		—		503		—		503

Total debt		18,297		3,335		2,253		23,885		18,379		3,033		2,258		23,670

(1)	Includes Prudential Funding, LLC.

(2)	Capital debt at Prudential Insurance Co. of America includes $941 million of surplus notes at both June 30, 2015 and December 31, 2014.

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

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

(in millions)


Year-to-date						% Change			2014									2015
2015			2014			% Change			2Q			3Q			4Q			1Q			2Q

								Revenues (1):
	3,152			398			692%	Premiums		201			1,130			5,373			1,213			1,939
	1,460			1,410			4%	Policy charges and fee income		715			729			727			720			740
	2,403			2,469			-3%	Net investment income		1,193			1,229			1,261			1,217			1,186
	2,539			2,431			4%	Asset management fees, commissions and other income		1,244			1,221			1,249			1,248			1,291

	9,554			6,708			42%	Total revenues		3,353			4,309			8,610			4,398			5,156


								Benefits and Expenses (1):
	3,946			1,311			201%	Insurance and annuity benefits		651			1,637			5,869			1,616			2,330
	896			957			-6%	Interest credited to policyholders’ account balances		481			472			476			450			446
	58			71			-18%	Interest expense		35			36			35			34			24
	(248	)		(275	)		10%	Deferral of acquisition costs		(147	)		(147	)		(142	)		(120	)		(128	)
	231			271			-15%	Amortization of acquisition costs		139			153			170			99			132
	2,672			2,552			5%	General and administrative expenses		1,318			1,335			1,379			1,301			1,371

	7,555			4,887			55%	Total benefits and expenses		2,477			3,486			7,787			3,380			4,175

	1,999			1,821			10%	Adjusted operating income before income taxes		876			823			823			1,018			981

(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 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

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

(in millions)


	Six Months Ended June 30, 2015												Quarter Ended June 30, 2015
	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		3,152			60			3,092			—			1,939			31			1,908			—
Policy charges and fee income		1,460			1,351			109			—			740			682			58			—
Net investment income		2,403			294			2,048			61			1,186			143			1,007			36
Asset management fees, commissions and other income		2,539			682			409			1,448			1,291			344			207			740

Total revenues		9,554			2,387			5,658			1,509			5,156			1,200			3,180			776


Benefits and Expenses (1):
Insurance and annuity benefits		3,946			81			3,865			—			2,330			33			2,297			—
Interest credited to policyholders’ account balances		896			162			734			—			446			81			365			—
Interest expense		58			40			14			4			24			15			7			2
Deferral of acquisition costs		(248	)		(221	)		(21	)		(6	)		(128	)		(112	)		(13	)		(3	)
Amortization of acquisition costs		231			181			40			10			132			92			35			5
General and administrative expenses		2,672			1,067			505			1,100			1,371			543			252			576

Total benefits and expenses		7,555			1,310			5,137			1,108			4,175			652			2,943			580

Adjusted operating income before income taxes		1,999			1,077			521			401			981			548			237			196


	Six Months Ended June 30, 2014												Quarter Ended June 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		398			57			341			—			201			28			173			—
Policy charges and fee income		1,410			1,302			108			—			715			660			55			—
Net investment income		2,469			318			2,106			45			1,193			153			1,019			21
Asset management fees, commissions and other income		2,431			651			445			1,335			1,244			330			222			692

Total revenues		6,708			2,328			3,000			1,380			3,353			1,171			1,469			713


Benefits and Expenses (1):
Insurance and annuity benefits		1,311			214			1,097			—			651			99			552			—
Interest credited to policyholders’ account balances		957			212			745			—			481			107			374			—
Interest expense		71			53			12			6			35			26			6			3
Deferral of acquisition costs		(275	)		(248	)		(17	)		(10	)		(147	)		(132	)		(10	)		(5	)
Amortization of acquisition costs		271			251			10			10			139			129			5			5
General and administrative expenses		2,552			1,068			503			981			1,318			552			256			510

Total benefits and expenses		4,887			1,550			2,350			987			2,477			781			1,183			513

Adjusted operating income before income taxes		1,821			778			650			393			876			390			286			200

(1)

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

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

(in millions)


Year-to-date							2014									2015
2015			2014				2Q			3Q			4Q			1Q			2Q

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	155,083			150,467		Beginning total account value		151,620			155,890			153,172			155,083			157,552
	2,267			3,471		Sales: Highest Daily Suite (1)		1,865			1,828			1,688			1,421			846
	2,274			1,484		Other variable annuities (2)		786			733			753			794			1,480

	4,541			4,955		Total sales		2,651			2,561			2,441			2,215			2,326
	(4,337	)		(4,345	)	Surrenders and withdrawals		(2,187	)		(2,152	)		(2,217	)		(2,167	)		(2,170	)

	204			610		Net sales		464			409			224			48			156
	(790	)		(746	)	Benefit payments		(406	)		(345	)		(368	)		(400	)		(390	)

	(586)			(136	)	Net flows		58			64			(144	)		(352	)		(234	)
	2,730			7,275		Change in market value, interest credited, and other		5,081			(1,891	)		2,945			3,713			(983	)
	(1,803	)		(1,716	)	Policy charges		(869	)		(891	)		(890	)		(892	)		(911	)

	155,424			155,890		Ending total account value		155,890			153,172			155,083			157,552			155,424


						Variable Annuities Account Value by Product:
	117,723			117,596		Highest Daily suite (1)		117,596			115,853			117,627			119,801			117,723
	37,701			38,294		Other variable annuities (2)		38,294			37,319			37,456			37,751			37,701

	155,424			155,890		Ending total account value		155,890			153,172			155,083			157,552			155,424


						Fixed Annuities and other products (3):
	3,581			3,673		Beginning total account value		3,656			3,638			3,611			3,581			3,575
	27			30		Sales		13			13			8			12			15
	(62	)		(69	)	Surrenders and withdrawals		(34	)		(30	)		(39	)		(29	)		(33	)

	(35)			(39	)	Net redemptions		(21	)		(17	)		(31	)		(17	)		(18	)
	(187)			(146	)	Benefit payments		(75	)		(109	)		(85	)		(88	)		(99	)

	(222	)		(185	)	Net flows		(96	)		(126	)		(116	)		(105	)		(117	)
	193			151		Interest credited and other		78			100			86			99			94
	—			(1	)	Policy charges		—			(1	)		—			—			—

	3,552			3,638		Ending total account value		3,638			3,611			3,581			3,575			3,552


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (4):
	1,311			1,252		Insurance Agents		648			624			633			638			673
	837			965		Wirehouses		525			561			482			394			443
	1,736			2,038		Independent Financial Planners		1,098			1,036			993			855			881
	684			730		Bank Distribution		393			353			341			340			344

	4,568			4,985		Total		2,664			2,574			2,449			2,227			2,341

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

(2)	Includes Prudential Defined Income (PDI), products without guaranteed minimum income and withdrawal benefits, and the portion of account value for certain variable annuities for which living benefits are covered under an external reinsurance agreement.

(3)	Includes single premium immediate annuities.

(4)	Amounts represent gross sales.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

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

(in millions)


Year-to-date							2014									2015
2015			2014				2Q			3Q			4Q			1Q			2Q

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	9,852			10,054		Beginning balance		9,881			9,811			9,816			9,852			9,728
	610			621		Premiums and deposits		370			374			336			308			302
	(382	)		(442	)	Surrenders and withdrawals		(222	)		(215	)		(218	)		(198	)		(184	)

	228			179		Net sales		148			159			118			110			118
	(228	)		(185	)	Benefit payments		(94	)		(127	)		(103	)		(105	)		(123	)

	—			(6	)	Net flows		54			32			15			5			(5	)
	127			201		Interest credited and other		103			68			68			64			63
	(254)			(437	)	Net transfers to separate account		(227	)		(94	)		(47	)		(193	)		(61	)
	(1	)		(1	)	Policy charges		—			(1	)		—			—			(1	)

	9,724			9,811		Ending balance		9,811			9,816			9,852			9,728			9,724


						Account Values in Separate Account (1):
	148,812			144,086		Beginning balance		145,395			149,717			146,967			148,812			151,399
	3,958			4,364		Premiums and deposits		2,294			2,200			2,113			1,919			2,039
	(4,017	)		(3,972	)	Surrenders and withdrawals		(1,999	)		(1,967	)		(2,038	)		(1,998	)		(2,019	)

	(59	)		392		Net sales (redemptions)		295			233			75			(79	)		20
	(749	)		(707	)	Benefit payments		(387	)		(327	)		(350	)		(383	)		(366	)

	(808)			(315	)	Net flows		(92	)		(94	)		(275	)		(462	)		(346	)
	2,796			7,225		Change in market value, interest credited and other		5,056			(1,859	)		2,963			3,748			(952	)
	254			437		Net transfers from general account		227			94			47			193			61
	(1,802	)		(1,716	)	Policy charges		(869	)		(891	)		(890	)		(892	)		(910	)

	149,252			149,717		Ending balance		149,717			146,967			148,812			151,399			149,252

(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 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

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

(in millions)


	2014						2015
	2Q		3Q		4Q		1Q		2Q

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

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		6,322		5,947		5,756		5,594		5,276
Guaranteed minimum withdrawal benefits		829		767		736		707		666
Guaranteed minimum income benefits		3,545		3,382		3,324		3,271		3,151
Guaranteed minimum withdrawal & income benefits (2)		119,442		118,124		120,404		123,093		121,911

Total		130,138		128,220		130,220		132,665		131,004


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature (2)		112,695		111,033		112,724		114,797		113,323
Account Values without Auto-Rebalancing Feature		17,443		17,187		17,496		17,868		17,681

Total		130,138		128,220		130,220		132,665		131,004


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		1,504		2,017		2,034		1,880		2,350
Net Amount at Risk without Auto-Rebalancing Feature		781		911		871		816		905

Total		2,285		2,928		2,905		2,696		3,255

(1)	At end of period.

(2)	Includes $553 million of account value in second quarter 2015 related to certain variable annuities for which living benefits are covered under an external reinsurance agreement.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

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

(in millions)


	2014						2015
	2Q		3Q		4Q		1Q		2Q

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

Variable Annuity Account Values by Death Benefit Features
Return of net deposits:
Account value		117,486		115,725		117,592		119,854		118,425
Net amount at risk		402		437		403		377		470
Minimum return, anniversary contract value, or maximum contract value:
Account value		35,230		34,299		34,298		34,432		33,665
Net amount at risk		2,572		2,987		2,855		2,709		3,058

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		112,695		111,033		112,724		114,797		113,323
Account Values without Auto-Rebalancing Feature		40,021		38,991		39,166		39,489		38,767

Total		152,716		150,024		151,890		154,286		152,090


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		546		823		765		699		980
Net Amount at Risk without Auto-Rebalancing Feature		2,428		2,601		2,493		2,387		2,548

Total		2,974		3,424		3,258		3,086		3,528

(1)	At end of period.

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

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

(in millions)


Year-to-date							2014									2015
2015			2014				2Q			3Q			4Q			1Q			2Q

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	184,196			173,502		Beginning total account value		178,150			181,577			180,535			184,196			188,145
	11,354			13,115		Deposits and sales		4,528			5,190			5,629			6,314			5,040
	(10,912	)		(12,069	)	Withdrawals and benefits		(6,066	)		(4,221	)		(6,311	)		(6,229	)		(4,683	)
	4,169			7,029		Change in market value, interest credited, interest income and other activity		4,965			(2,011	)		4,343			3,864			305

	188,807			181,577		Ending total account value		181,577			180,535			184,196			188,145			188,807


	442			1,046		Net additions (withdrawals)		(1,538	)		969			(682	)		85			357


						Stable value account values included above		44,174			44,464			44,671			44,733			45,007

						Institutional Investment Products:
	179,641			149,402		Beginning total account value		149,661			148,971			175,526			179,641			177,120
	10,116			3,808		Additions		2,075			30,962			8,523			969			9,147
	(7,303	)		(7,619	)	Withdrawals and benefits		(4,602	)		(3,634	)		(4,783	)		(3,495	)		(3,808	)
	1,712			3,194		Change in market value, interest credited and interest income		1,753			940			1,699			1,629			83
	(368	)		186		Other (1)		84			(1,713	)		(1,324	)		(1,624	)		1,256

	183,798			148,971		Ending total account value		148,971			175,526			179,641			177,120			183,798


	2,813			(3,811	)	Net additions (withdrawals)		(2,527	)		27,328			3,740			(2,526	)		5,339


						Amounts included in ending total account value above:
	67,958			72,407		Investment-only stable value wraps		72,407			71,323			69,814			69,113			67,958
	36,252			2,399		Longevity reinsurance (2)		2,399			29,509			30,839			29,176			36,252
	79,588			74,165		Group annuities and other products		74,165			74,694			78,988			78,831			79,588

	183,798			148,971		Ending total account value		148,971			175,526			179,641			177,120			183,798

(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 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

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


						Supplementary Revenue Information (in millions):
Year-to-date				%			2014						2015
2015		2014		Change			2Q		3Q		4Q		1Q		2Q

						Analysis of revenues by type:
	1,070		996		7%	Asset management fees		507		510		515		530		540
	124		133		-7%	Other related revenues		67		62		67		72		52
	315		251		25%	Service, distribution and other revenues		139		149		157		131		184

	1,509		1,380		9%	Total Asset Management segment revenues		713		721		739		733		776


						Analysis of asset management fees by source:
	458		439		4%	Institutional customers		225		216		222		228		230
	386		350		10%	Retail customers		177		186		184		189		197
	226		207		9%	General account		105		108		109		113		113

	1,070		996		7%	Total asset management fees		507		510		515		530		540


Supplementary Assets Under Management Information (in billions):
	June 30, 2015
	Equity		Fixed Income		Real Estate		Total
Institutional customers		65.7		277.4		37.5		380.6
Retail customers		128.5		68.4		2.3		199.2
General account		7.7		359.0		1.8		368.5

Total		201.9		704.8		41.6		948.3


	June 30, 2014
	Equity		Fixed Income		Real Estate		Total
Institutional customers		66.2		264.7		36.1		367.0
Retail customers		122.2		55.7		2.2		180.1
General account		8.1		364.6		1.7		374.4

Total		196.5		685.0		40.0		921.5

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

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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							2014									2015
2015			2014				2Q			3Q			4Q			1Q			2Q

						Institutional Customers - Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	323.6			300.5		Beginning assets under management		310.4			323.5			320.7			323.6			334.1
	35.1			21.4		Additions		10.5			10.0			10.9			16.8			18.3
	(24.6	)		(16.8	)	Withdrawals		(7.8	)		(11.4	)		(13.4	)		(13.1	)		(11.5	)
	1.6			18.3		Change in market value		10.3			(1.0	)		5.8			6.6			(5.0	)
	0.2			—		Net money market flows		0.1			—			—			0.2			—
	—			0.1		Other (1)		—			(0.4	)		(0.4	)		—			—

	335.9			323.5		Ending assets under management		323.5			320.7			323.6			334.1			335.9
	44.7			43.5		Affiliated institutional assets under management		43.5			43.0			46.4			46.8			44.7

	380.6			367.0		Total assets managed for institutional customers at end of period		367.0			363.7			370.0			380.9			380.6


	10.5			4.6		Net institutional additions (withdrawals), excluding money market activity		2.7			(1.4	)		(2.5	)		3.7			6.8


						Retail Customers - Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	126.8			115.0		Beginning assets under management		117.0			122.5			122.7			126.8			135.1
	23.4			16.4		Additions		8.4			8.5			11.9			13.1			10.3
	(19.8	)		(15.5	)	Withdrawals		(7.7	)		(7.3	)		(9.3	)		(9.1	)		(10.7	)
	4.8			6.6		Change in market value		4.8			(1.0	)		1.6			4.3			0.5
	—			—		Net money market flows		—			—			—			—			—
	—			—		Other		—			—			(0.1	)		—			—

	135.2			122.5		Ending assets under management		122.5			122.7			126.8			135.1			135.2
	64.0			57.6		Affiliated retail assets under management		57.6			57.3			59.3			63.3			64.0

	199.2			180.1		Total assets managed for retail customers at end of period		180.1			180.0			186.1			198.4			199.2


	3.6			0.9		Net retail additions (withdrawals), excluding money market activity		0.7			1.2			2.6			4.0			(0.4	)

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

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

(in millions)


Year-to-date						% Change			2014									2015
2015			2014			% Change			2Q			3Q			4Q			1Q			2Q

								Revenues (1):
	2,388			2,481			-4%	Premiums		1,241			1,243			1,183			1,188			1,200
	1,221			1,369			-11%	Policy charges and fee income		681			637			704			705			516
	1,100			1,098			0%	Net investment income		540			570			565			549			551
	370			370			0%	Asset management fees, commissions and other income		198			180			183			186			184

	5,079			5,318			-4%	Total revenues		2,660			2,630			2,635			2,628			2,451


								Benefits and Expenses (1):
	3,069			3,171			-3%	Insurance and annuity benefits		1,550			1,692			1,492			1,598			1,471
	447			421			6%	Interest credited to policyholders’ account balances		211			214			219			210			237
	276			253			9%	Interest expense		129			149			140			136			140
	(296	)		(273	)		-8%	Deferral of acquisition costs		(130	)		(125	)		(151	)		(139	)		(157	)
	(39	)		199			-120%	Amortization of acquisition costs		100			29			125			88			(127	)
	1,164			1,212			-4%	General and administrative expenses		596			647			648			589			575

	4,621			4,983			-7%	Total benefits and expenses		2,456			2,606			2,473			2,482			2,139


	458			335			37%	Adjusted operating income before income taxes		204			24			162			146			312

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

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

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

(in millions)


	Six Months Ended June 30, 2015									Quarter Ended June 30, 2015
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance			Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		2,388			461			1,927			1,200			229			971
Policy charges and fee income		1,221			923			298			516			360			156
Net investment income		1,100			812			288			551			409			142
Asset management fees, commissions and other income		370			315			55			184			162			22

Total revenues		5,079			2,511			2,568			2,451			1,160			1,291


Benefits and Expenses (1):
Insurance and annuity benefits		3,069			1,155			1,914			1,471			540			931
Interest credited to policyholders’ account balances		447			315			132			237			160			77
Interest expense		276			271			5			140			137			3
Deferral of acquisition costs		(296	)		(287	)		(9	)		(157	)		(148	)		(9	)
Amortization of acquisition costs		(39	)		(42	)		3			(127	)		(128	)		1
General and administrative expenses		1,164			746			418			575			362			213

Total benefits and expenses		4,621			2,158			2,463			2,139			923			1,216


Adjusted operating income before income taxes		458			353			105			312			237			75


	Six Months Ended June 30, 2014									Quarter Ended June 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		2,481			433			2,048			1,241			219			1,022
Policy charges and fee income		1,369			1,079			290			681			538			143
Net investment income		1,098			794			304			540			395			145
Asset management fees, commissions and other income		370			308			62			198			166			32

Total revenues		5,318			2,614			2,704			2,660			1,318			1,342


Benefits and Expenses (1):
Insurance and annuity benefits		3,171			1,068			2,103			1,550			520			1,030
Interest credited to policyholders’ account balances		421			300			121			211			151			60
Interest expense		253			249			4			129			127			2
Deferral of acquisition costs		(273	)		(273	)		—			(130	)		(130	)		—
Amortization of acquisition costs		199			194			5			100			98			2
General and administrative expenses		1,212			793			419			596			394			202

Total benefits and expenses		4,983			2,331			2,652			2,456			1,160			1,296


Adjusted operating income before income taxes		335			283			52			204			158			46

(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 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

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

(in millions)


Year-to-date							2014									2015
2015			2014				2Q			3Q			4Q			1Q			2Q

						ANNUALIZED NEW BUSINESS PREMIUMS (1) :

	31			20		Variable life		11			10			22			18			13
	122			117		Universal life		46			43			59			57			65
	101			88		Term life		46			44			49			49			52

	254			225		Total		103			97			130			124			130


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	52			47		Prudential Agents		25			24			27			25			27
	202			178		Third party distribution		78			73			103			99			103

	254			225		Total		103			97			130			124			130


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2):*
	22,526			21,842		Beginning balance		22,119			22,239			22,570			22,526			22,617
	1,567			1,450		Premiums and deposits		681			696			734			737			830
	(544	)		(548	)	Surrenders and withdrawals		(311	)		(274	)		(308	)		(267	)		(277	)

	1,023			902		Net sales		370			422			426			470			553
	(265	)		(215	)	Benefit payments		(110	)		(111	)		(104	)		(137	)		(128	)

	758			687		Net flows		260			311			322			333			425
	866			131		Interest credited and other		66			231			(137	)		(29	)		895
	239			215		Net transfers from separate account		110			110			107			115			124
	(652	)		(636	)	Policy charges		(316	)		(321	)		(336	)		(328	)		(324	)
	(3	)		—		Acquisition		—			—			—			—			(3	)

	23,734			22,239		Ending balance		22,239			22,570			22,526			22,617			23,734


						*Separate Account Liabilities:*
	27,888			26,916		Beginning balance		27,153			27,968			27,455			27,888			28,246
	698			652		Premiums and deposits		283			278			420			391			307
	(439	)		(442	)	Surrenders and withdrawals		(203	)		(219	)		(212	)		(214	)		(225	)

	259			210		Net sales		80			59			208			177			82
	(76	)		(60	)	Benefit payments		(28	)		(20	)		(24	)		(34	)		(42	)

	183			150		Net flows		52			39			184			143			40
	687			1,594		Change in market value, interest credited and other		1,110			(201	)		594			563			124
	(239	)		(215	)	Net transfers to general account		(110	)		(110	)		(107	)		(115	)		(124	)
	(464	)		(477	)	Policy charges		(237	)		(241	)		(238	)		(233	)		(231	)
	—			—		Acquisition		—			—			—			—			—

	28,055			27,968		Ending balance		27,968			27,455			27,888			28,246			28,055


						FACE AMOUNT IN FORCE (3):

						Variable life		171,043			169,493			168,852			168,000			166,490
						Universal life		149,274			150,697			152,706			154,921			157,425
						Term life		634,132			640,758			650,233			659,900			670,043

						Total		954,449			960,948			971,791			982,820			993,958

(1)	Excludes corporate-owned life insurance.

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

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

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

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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					2014						2015
2015		2014			2Q		3Q		4Q		1Q		2Q

				Individual Life Insurance:

				Policy Surrender Experience:
	527		564	Cash value of surrenders		278		289		274		255		272
	2.3%		2.5%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		2.5%		2.5%		2.4%		2.2%		2.3%

				Death benefits per $1,000 of in force (1):
	5.64		4.87	Variable and universal life		4.61		4.62		4.82		5.96		5.31
	1.56		1.25	Term life		1.20		1.19		1.27		1.57		1.54
	3.83		3.33	Total, Individual Life Insurance		3.13		3.16		3.28		4.03		3.63

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

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

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

(dollar amounts in millions)


Year-to-date					2014						2015
2015		2014			2Q		3Q		4Q		1Q		2Q

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	141		147	Group life		10		14		28		131		10
	45		45	Group disability		12		13		9		31		14

	186		192	Total		22		27		37		162		24


				Future Policy Benefits (1) (2):
				Group life		2,132		2,074		2,219		2,156		2,083
				Group disability		21		11		3		30		21

				Total		2,153		2,085		2,222		2,186		2,104


				Policyholders’ Account Balances (1):
				Group life		7,923		7,953		8,106		8,025		8,120
				Group disability		217		223		236		231		264

				Total		8,140		8,176		8,342		8,256		8,384


				Separate Account Liabilities (1):
				Group life		24,525		24,515		24,305		26,764		24,550
				Group disability		—		—		—		—		—

				Total		24,525		24,515		24,305		26,764		24,550


				Group Life Insurance:
	1,984		2,006	Gross premiums, policy charges and fee income (3)		1,002		953		1,018		978		1,006
	1,873		1,939	Earned premiums, policy charges and fee income		966		955		914		918		955
	89.6%		89.5%	Benefits ratio		89.3%		89.9%		88.1%		92.8%		86.5%
	10.6%		10.5%	Administrative operating expense ratio		9.9%		11.5%		12.0%		10.6%		10.5%
				Persistency ratio		94.2%		93.5%		93.2%		92.8%		92.6%

				Group Disability Insurance:
	404		442	Gross premiums, policy charges and fee income (3)		221		220		220		199		205
	352		399	Earned premiums, policy charges and fee income		199		213		206		180		172
	67.0%		92.2%	Benefits ratio		83.9%		133.8%		79.1%		72.2%		61.6%
	33.4%		29.2%	Administrative operating expense ratio		29.4%		31.4%		30.9%		32.7%		34.1%
				Persistency ratio		85.6%		84.6%		83.9%		89.5%		88.6%

(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 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

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

(in millions)


Year-to-date							2014									2015
2015			2014				2Q			3Q			4Q			1Q			2Q

						DEFERRED POLICY ACQUISITION COSTS

						INDIVIDUAL ANNUITIES:
	5,376			5,490		Beginning balance		5,513			5,521			5,554			5,376			5,046
	221			248		Capitalization		132			127			123			109			112
	(181	)		(251	)	Amortization - operating results		(129	)		(141	)		(151	)		(89	)		(92	)
	(254	)		50		Amortization - realized investment gains and losses		9			34			(144	)		(343	)		89
	24			(16	)	Impact of unrealized (gains) or losses on AFS securities		(4	)		13			(6	)		(7	)		31
	—			—		Other		—			—			—			—			—

	5,186			5,521		Ending balance		5,521			5,554			5,376			5,046			5,186


						INDIVIDUAL LIFE INSURANCE:
	4,056			4,112		Beginning balance		4,089			4,057			4,185			4,056			3,985
	287			273		Capitalization		130			125			149			139			148
	42			(194	)	Amortization - operating results		(98	)		(27	)		(124	)		(86	)		128
	14			3		Amortization - realized investment gains and losses		1			5			(31	)		(23	)		37
	253			(137	)	Impact of unrealized (gains) or losses on AFS securities		(65	)		25			(123	)		(101	)		354

	4,652			4,057		Ending balance		4,057			4,185			4,056			3,985			4,652


						GROUP INSURANCE:
	177			183		Beginning balance		180			178			176			177			175
	9			—		Capitalization		—			—			2			—			9
	(3	)		(5	)	Amortization - operating results		(2	)		(2	)		(1	)		(2	)		(1	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	183			178		Ending balance		178			176			177			175			183


						DEFERRED SALES INDUCEMENTS
						INDIVIDUAL ANNUITIES:
	1,513			1,813		Beginning balance		1,756			1,687			1,645			1,513			1,367
	5			14		Capitalization		7			4			3			3			2
	(61	)		(102	)	Amortization - operating results		(52	)		(56	)		(57	)		(31	)		(30	)
	(89	)		(32	)	Amortization - realized investment gains and losses		(21	)		3			(78	)		(118	)		29
	9			(6	)	Impact of unrealized (gains) or losses on AFS securities		(3	)		7			—			—			9
	—			—		Other		—			—			—			—			—

	1,377			1,687		Ending balance		1,687			1,645			1,513			1,367			1,377

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


Year-to-date						% Change			2014									2015
2015			2014			% Change			2Q			3Q			4Q			1Q			2Q

								Revenues (1):
	7,152			7,518			-5%	Premiums		3,822			3,568			3,338			3,519			3,633
	279			276			1%	Policy charges and fee income		138			156			164			140			139
	2,198			2,212			-1%	Net investment income		1,128			1,138			1,084			1,099			1,099
	314			321			-2%	Asset management fees, commissions and other income		164			140			151			148			166

	9,943			10,327			-4%	Total revenues		5,252			5,002			4,737			4,906			5,037


								Benefits and Expenses (1):
	6,135			6,330			-3%	Insurance and annuity benefits		3,217			3,051			2,903			3,002			3,133
	448			481			-7%	Interest credited to policyholders’ account balances		242			256			224			224			224
	2			2			0%	Interest expense		2			1			1			1			1
	(796	)		(832	)		4%	Deferral of acquisition costs		(420	)		(415	)		(394	)		(401	)		(395	)
	507			506			0%	Amortization of acquisition costs		256			209			246			252			255
	1,971			2,119			-7%	General and administrative expenses		1,071			1,055			1,071			994			977

	8,267			8,606			-4%	Total benefits and expenses		4,368			4,157			4,051			4,072			4,195


	1,676			1,721			-3%	Adjusted operating income before income taxes		884			845			686			834			842

(1)

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

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	Six Months Ended June 30, 2015									Quarter Ended June 30, 2015
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations			Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		7,152			3,457			3,695			3,633			1,627			2,006
Policy charges and fee income		279			172			107			139			85			54
Net investment income		2,198			869			1,329			1,099			435			664
Asset management fees, commissions and other income		314			175			139			166			84			82

Total revenues		9,943			4,673			5,270			5,037			2,231			2,806


Benefits and Expenses (1):
Insurance and annuity benefits		6,135			3,041			3,094			3,133			1,450			1,683
Interest credited to policyholders’ account balances		448			103			345			224			48			176
Interest expense		2			1			1			1			—			1
Deferral of acquisition costs		(796	)		(388	)		(408	)		(395	)		(179	)		(216	)
Amortization of acquisition costs		507			241			266			255			113			142
General and administrative expenses		1,971			855			1,116			977			418			559

Total benefits and expenses		8,267			3,853			4,414			4,195			1,850			2,345


Adjusted operating income before income taxes		1,676			820			856			842			381			461


	Six Months Ended June 30, 2014									Quarter Ended June 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		7,518			3,570			3,948			3,822			1,686			2,136
Policy charges and fee income		276			180			96			138			89			49
Net investment income		2,212			862			1,350			1,128			431			697
Asset management fees, commissions and other income		321			128			193			164			55			109

Total revenues		10,327			4,740			5,587			5,252			2,261			2,991


Benefits and Expenses (1):
Insurance and annuity benefits		6,330			3,094			3,236			3,217			1,457			1,760
Interest credited to policyholders’ account balances		481			113			368			242			53			189
Interest expense		2			1			1			2			1			1
Deferral of acquisition costs		(832	)		(400	)		(432	)		(420	)		(191	)		(229	)
Amortization of acquisition costs		506			253			253			256			119			137
General and administrative expenses		2,119			878			1,241			1,071			440			631

Total benefits and expenses		8,606			3,939			4,667			4,368			1,879			2,489


Adjusted operating income before income taxes		1,721			801			920			884			382			502

(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 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date					2014						2015
2015		2014			2Q		3Q		4Q		1Q		2Q

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	2,727		2,841	Japan, excluding Gibraltar Life		1,303		1,302		1,230		1,470		1,257
	3,802		4,044	Gibraltar Life		2,185		1,944		1,776		1,742		2,060
	902		909	All other countries		472		478		496		447		455

	7,431		7,794	Total		3,960		3,724		3,502		3,659		3,772


				Annualized new business premiums:
	345		384	Japan, excluding Gibraltar Life		157		161		161		199		146
	770		798	Gibraltar Life		437		409		377		357		413
	229		219	All other countries		115		113		123		117		112

	1,344		1,401	Total		709		683		661		673		671


				Annualized new business premiums by distribution channel:
	574		603	Life Planner Operations		272		274		284		316		258
	318		368	Gibraltar Life Consultants		210		174		159		146		172
	327		300	Banks		156		170		156		153		174
	125		130	Independent Agency		71		65		62		58		67

	1,344		1,401	Total		709		683		661		673		671


				Constant exchange rate basis (2):

				Net premiums, policy charges and fee income:
	3,337		3,091	Japan, excluding Gibraltar Life		1,411		1,437		1,454		1,795		1,542
	4,600		4,420	Gibraltar Life		2,384		2,111		2,036		2,099		2,501
	934		854	All other countries		436		446		495		464		470

	8,871		8,365	Total		4,231		3,994		3,985		4,358		4,513


				Annualized new business premiums:
	428		420	Japan, excluding Gibraltar Life		171		178		189		245		183
	890		841	Gibraltar Life		457		427		413		414		476
	239		204	All other countries		104		105		122		121		118

	1,557		1,465	Total		732		710		724		780		777


				Annualized new business premiums by distribution channel:
	667		624	Life Planner Operations		275		283		311		366		301
	379		391	Gibraltar Life Consultants		220		186		179		175		204
	362		311	Banks		161		173		166		171		191
	149		139	Independent Agency		76		68		68		68		81

	1,557		1,465	Total		732		710		724		780		777

(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 91 per U.S. dollar and Korean won 1120 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2014									2015
	2Q			3Q			4Q			1Q			2Q

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		338			342			345			350			353
Gibraltar Life		372			373			374			374			374
All other countries		115			116			118			120			122

Total		825			831			837			844			849


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		3,043			3,077			3,111			3,162			3,194
Gibraltar Life		7,161			7,137			7,224			7,189			7,149
All other countries		1,794			1,821			1,855			1,880			1,911

Total		11,998			12,035			12,190			12,231			12,254


International life insurance policy persistency:

Life Planner Operations:
13 months		92.9	%		92.5	%		92.3	%		92.3	%		92.0	%
25 months		86.0	%		86.2	%		86.0	%		85.9	%		85.7	%

Gibraltar Life (3):
13 months		91.0	%		91.2	%		91.5	%		92.0	%		92.4	%
25 months		81.9	%		82.2	%		82.2	%		82.7	%		82.8	%

Number of Life Planners at end of period:
Japan		3,212			3,275			3,328			3,436			3,385
All other countries		3,862			3,938			4,024			4,033			4,030

Total Life Planners		7,074			7,213			7,352			7,469			7,415


Gibraltar Life Consultants		8,670			8,601			8,707			8,645			8,565

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 91 per U.S. dollar and Korean won 1120 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 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2015									December 31, 2014
			Closed		PFI Excluding							Closed		PFI Excluding
	Consolidated		Block		Closed Block Division					Consolidated		Block		Closed Block Business
	Portfolio		Division		Amount		% of Total			Portfolio		Business		Amount		% of Total
Fixed maturities:
Public, available-for-sale, at fair value		239,682		24,582		215,100		63.7	%		249,165		28,626		220,539		64.5	%
Public, held-to-maturity, at amortized cost		1,887		—		1,887		0.6	%		2,000		—		2,000		0.6	%
Private, available-for-sale, at fair value		50,233		14,742		35,491		10.5	%		49,777		15,039		34,738		10.1	%
Private, held-to-maturity, at amortized cost		509		—		509		0.1	%		575		—		575		0.2	%
Trading account assets supporting insurance liabilities, at fair value		20,267		—		20,267		6.0	%		20,263		—		20,263		5.9	%
Other trading account assets, at fair value		1,765		310		1,455		0.4	%		1,806		350		1,456		0.4	%
Equity securities, available-for-sale, at fair value		9,893		3,230		6,663		2.0	%		9,853		3,522		6,331		1.8	%
Commercial mortgage and other loans, at book value		48,135		9,838		38,297		11.3	%		46,013		9,475		36,538		10.7	%
Policy loans, at outstanding balance		11,652		4,848		6,804		2.0	%		11,712		4,914		6,798		2.0	%
Other long-term investments (1)		9,766		2,837		6,929		2.1	%		9,935		2,766		7,169		2.1	%
Short-term investments		5,517		1,098		4,419		1.3	%		7,911		2,037		5,874		1.7	%

Subtotal (2)		399,306		61,485		337,821		100.0	%		409,010		66,729		342,281		100.0	%

Invested assets of other entities and operations (3)		12,638		—		12,638					10,976		—		10,976

Total investments		411,944		61,485		350,459					419,986		66,729		353,257

Fixed Maturities by Credit Quality (2):


	June 30, 2015											December 31, 2014
	PFI Excluding Closed Block Division											PFI Excluding Closed Block Business
			Gross		Gross									Gross		Gross
	Amortized		Unrealized		Unrealized		Fair					Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value		% of Total			Cost		Gains		Losses		Value		% of Total
Public Fixed Maturities:

NAIC Rating (4)
1		164,436		21,406		1,340		184,502		84.9	%		167,392		24,613		549		191,456		85.9	%
2		23,776		2,695		582		25,889		11.9	%		22,321		3,054		279		25,096		11.3	%

Subtotal - High or Highest Quality Securities		188,212		24,101		1,922		210,391		96.8	%		189,713		27,667		828		216,552		97.2	%

3		4,130		418		63		4,485		2.1	%		3,661		359		32		3,988		1.8	%
4		1,706		194		32		1,868		0.9	%		1,684		188		32		1,840		0.8	%
5		185		85		2		268		0.1	%		171		73		6		238		0.1	%
6		210		10		1		219		0.1	%		196		11		1		206		0.1	%

Subtotal - Other Securities		6,231		707		98		6,840		3.2	%		5,712		631		71		6,272		2.8	%

Total		194,443		24,808		2,020		217,231		100.0	%		195,425		28,298		899		222,824		100.0	%


Private Fixed Maturities:
NAIC Rating (4)
1		9,403		978		58		10,323		28.6	%		8,730		1,102		15		9,817		27.8	%
2		20,171		1,757		298		21,630		60.0	%		19,790		1,880		123		21,547		60.9	%

Subtotal - High or Highest Quality Securities		29,574		2,735		356		31,953		88.6	%		28,520		2,982		138		31,364		88.7	%

3		3,059		128		46		3,141		8.7	%		2,958		178		26		3,110		8.8	%
4		487		14		10		491		1.5	%		544		16		18		542		1.5	%
5		344		11		15		340		0.9	%		270		10		18		262		0.8	%
6		95		16		2		109		0.3	%		68		11		2		77		0.2	%

Subtotal - Other Securities		3,985		169		73		4,081		11.4	%		3,840		215		64		3,991		11.3	%

Total		33,559		2,904		429		36,034		100.0	%		32,360		3,197		202		35,355		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 June 30, 2015 and December 31, 2014, 791 securities with amortized cost of $3,473 million (fair value $3,538 million) and 1,330 securities with amortized cost of $6,864 million (fair value $7,342 million), respectively, that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

INVESTMENT PORTFOLIO COMPOSITION (1)

(in millions)


	June 30, 2015					December 31, 2014
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value		106,894		77.9	%		111,991		79.5	%
Public, held-to-maturity, at amortized cost		1,887		1.4	%		2,000		1.4	%
Private, available-for-sale, at fair value		9,368		6.8	%		8,835		6.3	%
Private, held-to-maturity, at amortized cost		509		0.4	%		575		0.4	%
Trading account assets supporting insurance liabilities, at fair value		2,000		1.5	%		1,910		1.4	%
Other trading account assets, at fair value		650		0.5	%		672		0.5	%
Equity securities, available-for-sale, at fair value		2,697		2.0	%		2,504		1.8	%
Commercial mortgage and other loans, at book value		8,821		6.4	%		8,215		5.8	%
Policy loans, at outstanding balance		2,129		1.5	%		2,146		1.5	%
Other long-term investments (2)		1,731		1.3	%		1,606		1.1	%
Short-term investments		366		0.3	%		406		0.3	%

Total		137,052		100.0	%		140,860		100.0	%


	June 30, 2015					December 31, 2014
	Amount		% of Total			Amount		% of Total
Excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value		108,206		53.9	%		108,548		53.9	%
Public, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available-for-sale, at fair value		26,123		13.0	%		25,903		12.9	%
Private, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		18,267		9.1	%		18,353		9.1	%
Other trading account assets, at fair value		805		0.4	%		784		0.4	%
Equity securities, available-for-sale, at fair value		3,966		2.0	%		3,827		1.9	%
Commercial mortgage and other loans, at book value		29,476		14.7	%		28,323		14.0	%
Policy loans, at outstanding balance		4,675		2.3	%		4,652		2.3	%
Other long-term investments (3)		5,198		2.6	%		5,563		2.8	%
Short-term investments		4,053		2.0	%		5,468		2.7	%

Total		200,769		100.0	%		201,421		100.0	%

(1)	For the Financial Services Businesses for periods prior to first quarter 2015 and excluding Closed Block Division for periods ended after December 31, 2014.

(2)	Excludes assets classified as “Separate account assets” on our balance sheet.

(3)	Other long-term investments consist of real estate and non-real estate related investments in joint ventures and partnerships, investment real estate held through direct ownership, derivatives and other miscellaneous investments.

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

INVESTMENT RESULTS (1)

(in millions)


	Quarter Ended June 30
	2015									2014
							Realized									Realized
	Investment Income						Gains /			Investment Income						Gains /
	Yield (4)			Amount			(Losses)			Yield (4)			Amount			(Losses)
General Account (2)
Fixed maturities		4.01	%		2,234			317			3.82	%		2,210			178
Equity securities		6.31	%		75			33			6.64	%		80			31
Commercial mortgage and other loans		4.43	%		364			6			4.82	%		331			(3	)
Policy loans		4.92	%		83			—			4.93	%		85			—
Short-term investments and cash equivalents		0.20	%		8			1			0.22	%		6			—
Other investments		4.20	%		89			(412	)		5.99	%		129			14

Gross investment income before investment expenses		3.92	%		2,853			(55	)		3.94	%		2,841			220
Investment expenses		-0.15	%		(97	)		—			-0.14	%		(101	)		—

Subtotal		3.77	%		2,756			(55	)		3.80	%		2,740			220

Investment results of other entities and operations (3)					276			19						279			21
Less, investment income related to adjusted operating income reconciling items					(58	)								(51	)

Total					2,974			(36	)					2,968			241


	Six Months Ended June 30
	2015									2014
							Realized									Realized
	Investment Income						Gains /			Investment Income						Gains /
	Yield (4)			Amount			(Losses)			Yield (4)			Amount			(Losses)
General Account (2)
Fixed maturities		4.00	%		4,434			663			3.83	%		4,367			373
Equity securities		5.80	%		136			78			6.12	%		143			64
Commercial mortgage and other loans		4.44	%		716			11			4.73	%		638			(7	)
Policy loans		4.93	%		166			—			4.92	%		167			—
Short-term investments and cash equivalents		0.22	%		17			1			0.23	%		12			—
Other investments		6.10	%		258			1,133			8.97	%		379			(160	)

Gross investment income before investment expenses		3.97	%		5,727			1,886			4.00	%		5,706			270
Investment expenses		-0.15	%		(190	)		—			-0.14	%		(173	)		—

Subtotal		3.82	%		5,537			1,886			3.86	%		5,533			270

Investment results of other entities and operations (3)					555			66						549			42
Less, investment income related to adjusted operating income reconciling items					(113	)								(97	)

Total					5,979			1,952						5,985			312

(1)	For the Financial Services Businesses for periods prior to first quarter 2015 and excluding Closed Block Division for periods ended after December 31, 2014.

(2)

Excludes commercial loans and 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.

(3)	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.

(4)

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 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2015									2014
							Realized									Realized
	Investment Income						Gains /			Investment Income						Gains /
	Yield (1)			Amount			(Losses)			Yield (1)			Amount			(Losses)
Japanese Insurance Operations:
Fixed maturities		3.29	%		811			279			2.98	%		837			181
Equity securities		5.64	%		20			26			6.49	%		29			24
Commercial mortgage and other loans		4.54	%		99			5			4.72	%		80			3
Policy loans		3.87	%		20			—			3.81	%		23			—
Short-term investments and cash equivalents		0.26	%		1			—			0.21	%		1			—
Other investments (2)		5.19	%		33			(377	)		5.53	%		31			96

Gross investment income before investment expenses		3.44	%		984			(67	)		3.16	%		1,001			304
Investment expenses		-0.14	%		(41	)		—			-0.13	%		(38	)		—

Total		3.30	%		943			(67	)		3.03	%		963			304


	Six Months Ended June 30
	2015									2014
							Realized									Realized
	Investment Income						Gains /			Investment Income						Gains /
	Yield (1)			Amount			(Losses)			Yield (1)			Amount			(Losses)
Japanese Insurance Operations:
Fixed maturities		3.23	%		1,600			597			2.95	%		1,634			404
Equity securities		4.67	%		34			33			5.31	%		45			36
Commercial mortgage and other loans		4.51	%		191			6			4.39	%		147			1
Policy loans		3.87	%		41			—			3.78	%		44			—
Short-term investments and cash equivalents		0.26	%		2			—			0.26	%		2			—
Other investments (2)		7.28	%		88			(220	)		6.91	%		79			228

Gross investment income before investment expenses		3.41	%		1,956			416			3.13	%		1,951			669
Investment expenses		-0.14	%		(81	)		—			-0.13	%		(74	)		—

Total		3.27	%		1,875			416			3.00	%		1,877			669

(1)

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

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS (1)

(in millions)


	Quarter Ended June 30
	2015									2014
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)			Amount			Realized Gains / (Losses)			Yield (3)			Amount			Realized Gains / (Losses)
Excluding Japanese Insurance Operations (2):
Fixed maturities		4.57	%		1,423			38			4.62	%		1,373			(3	)
Equity securities		6.60	%		55			7			6.73	%		51			7
Commercial mortgage and other loans		4.39	%		265			1			4.85	%		251			(6	)
Policy loans		5.40	%		63			—			5.53	%		62			—
Short-term investments and cash equivalents		0.20	%		7			1			0.23	%		5			—
Other investments		3.78	%		56			(35	)		6.15	%		98			(82	)

Gross investment income before investment expenses		4.24	%		1,869			12			4.55	%		1,840			(84	)
Investment expenses		-0.16	%		(56	)		—			-0.16	%		(63	)		—

Total		4.08	%		1,813			12			4.39	%		1,777			(84	)


	Six Months Ended June 30
	2015									2014
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)			Amount			Realized Gains / (Losses)			Yield (3)			Amount			Realized Gains / (Losses)
Excluding Japanese Insurance Operations (2):
Fixed maturities		4.62	%		2,834			66			4.65	%		2,733			(31	)
Equity securities		6.31	%		102			45			6.61	%		98			28
Commercial mortgage and other loans		4.42	%		525			5			4.84	%		491			(8	)
Policy loans		5.42	%		125			—			5.51	%		123			—
Short-term investments and cash equivalents		0.21	%		15			1			0.23	%		10			—
Other investments		5.62	%		170			1,353			9.73	%		300			(388	)

Gross investment income before investment expenses		4.33	%		3,771			1,470			4.69	%		3,755			(399	)
Investment expenses		-0.16	%		(109	)		—			-0.15	%		(99	)		—

Total		4.17	%		3,662			1,470			4.54	%		3,656			(399	)

(1)	For the Financial Services Businesses for periods prior to first quarter 2015 and excluding Closed Block Division for periods ended after December 31, 2014.

(2)

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.

(3)

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF ACTUARIAL UPDATES - ADJUSTED OPERATING INCOME (1)

(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
	Second Quarter 2014		Second Quarter 2015			Second Quarter 2014		Second Quarter 2015			Second Quarter 2014			Second Quarter 2015			Second Quarter 2014			Second Quarter 2015			Second Quarter 2014			Second Quarter 2015
Actuarial Item:

Annual review of assumptions including investment returns, mortality, policyholder behavior, and other elements of gross profits and guaranteed benefit costs		0		(2	)		0		(8	)		0			(21	)		0			0			0			31

Quarterly adjustments for market performance and current quarter experience		7		(60	)		3		(10	)		(5	)		(23	)		(1	)		(1	)		(4	)		94


Total of above items		7		(62	)		3		(18	)		(5	)		(44	)		(1	)		(1	)		(4	)		125


Reported amount		99		33			107		81			129			92			552			543


Amount excluding impact of items indicated above		92		95			104		99			134			136			553			544

(1)	Prior to 2015, the annual review and update of actuarial assumptions occurred in the third quarter.

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

INDIVIDUAL LIFE - LINE ITEM IMPACT OF ACTUARIAL UPDATES - ADJUSTED OPERATING INCOME (1)

(in millions)


	Policy Charges and Fee Income (2)					Insurance and Annuity Benefits (3)				Interest Credited to Policyholders’ Account Balances				Amortization of Deferred Policy Acquisition Costs					General and Administrative Expenses					Pre-Tax Adjusted Operating Income
	Second Quarter 2014		Second Quarter 2015			Second Quarter 2014		Second Quarter 2015		Second Quarter 2014		Second Quarter 2015		Second Quarter 2014		Second Quarter 2015			Second Quarter 2014		Second Quarter 2015			Second Quarter 2014		Second Quarter 2015
Actuarial Item:

Annual review of assumptions including investment returns, mortality, policyholder behavior, and other elements of gross profits and guaranteed benefit costs		0		(153	)		0		1		0		0		0		(178	)		0		(44	)		0		68


Reported amount		538		360			520		540		151		160		98		(128	)		394		362


Amount excluding impact of items indicated above		538		513			520		539		151		160		98		50			394		406

(1)	Prior to 2015, the annual review and update of actuarial assumptions occurred in the third quarter.

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

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

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

LOGO

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

Adjusted operating income is a non-GAAP measure of performance 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, discontinued operations, and results of the Closed Block Business for periods prior to first quarter 2015; 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. 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. For periods prior to first quarter 2015, 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. For periods subsequent to December 31, 2014, attributed equity represents all of Prudential Financial, Inc. equity that is not attributable to noncontrolling interests.

6. Book value per share of Common Stock:

Equity attributed to Prudential Financial, Inc. for periods subsequent to December 31, 2014 and Financial Services Businesses for periods prior to first quarter 2015 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.

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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. Divested Businesses:

Businesses that have been sold or exited, including businesses that have been placed in wind down, but that did not qualify for “discontinued operations” accounting treatment under U.S. GAAP.

12. Earned Premiums:

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

13. Earnings Per Share of Common Stock:

From December 18, 2001, the date of demutualization, through December 31, 2014, the Company had two separate classes of common stock. The Common Stock reflected the performance of the Financial Services Businesses and the Class B Stock reflected the performance of the Closed Block Business. Earnings per share were calculated separately for each of these two classes of common stock and included a direct equity adjustment to modify the earnings available to each of the classes of common stock for the difference between the allocation of general and administrative expenses to each of the businesses and the cash flows between the businesses related to these expenses. Accordingly, earnings per share of Common Stock for periods through December 31, 2014 reflect earnings attributable to the Financial Services Businesses. On January 2, 2015, Prudential Financial Inc. repurchased and cancelled all of the 2.0 million shares of the Class B Stock. Accordingly, earnings per share of Common Stock for periods subsequent to December 31, 2014 reflect the consolidated earnings of Prudential Financial Inc. In addition, the Class B Repurchase resulted in the elimination of the separation of the Financial Services Businesses and the Closed Block Business. As a result, there is no direct equity adjustment recorded for periods subsequent to December 31, 2014. Earnings per share of the Class B Stock for periods through December 31, 2014 are not presented herein, as they are not meaningful due to the Class B Repurchase.

14. Full Service Retirement:

The Full Service Retirement 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.

15. Full Service Stable Value:

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

16. General Account:

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

17. Gibraltar Life:

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

18. 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.

19. 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.

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

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

21. 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.

22. 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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

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KEY DEFINITIONS AND FORMULAS

23. 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.

24. International Life Planners:

Captive insurance agents in our Life Planner Operations.

25. 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.

26. 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 for periods prior to March 31, 2015) , annualized for interim periods, divided by average attributed equity excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement on page 3.

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). For periods subsequent to December 31, 2014, return on average equity (based on income from continuing operations) represents income from continuing operations after-tax, attributable to consolidated Prudential Financial, Inc., as determined in accordance with GAAP, annualized for interim periods, divided by average total attributed equity. For periods prior to first quarter 2015, return on average equity represents income from continuing operations after-tax, for the Financial Services Businesses, attributable to Prudential Financial, Inc. (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 13.0%, 18.9%, (12.1)%, 4.6%, and 10.9% for the three months ended June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014, and June 30, 2014, respectively.

27. 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).

28. 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.

29. Prudential Agents:

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

30. 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.

31. Separate Accounts:

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

32. Wrap-Fee Products:

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2015

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RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of August 5, 2015


	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 August 5, 2015

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 - August 5, 2015

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