PRUDENTIAL FINANCIAL INC - FORM 8-K - EX-99.1 - QUARTERLY FINANCIAL SUPPLEMENT FOR THE FINANCIAL SERVICES BUSINESSES

Attached files

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8-K - FORM 8-K - PRUDENTIAL FINANCIAL INC	d8k.htm
EX-99.0 - NEWS RELEASE OF PRUDENTIAL FINANCIAL INC., DATED NOVEMBER 3, 2010 - PRUDENTIAL FINANCIAL INC	dex990.htm

Exhibit 99.1

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

THIRD QUARTER 2010

Reference is made to Prudential Financial, Inc.’s filings with the Securities and Exchange Commission for general information, and consolidated financial information, regarding Prudential Financial, Inc., including its Closed Block Business. All financial information in this document is unaudited.

November 3, 2010

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

CONTENTS


	Page
HIGHLIGHTS
Financial Highlights		1-3
Operations Highlights		4

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

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

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

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

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
Combined Statements of Operations		26
Combining Statements of Operations		27
International Insurance Segment - Supplementary Income Statement Information		28
Sales Results and Supplementary Information		29-30

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

RECLASSIFIED STATEMENTS OF OPERATION AND SUPPLEMENTARY INFORMATION		36-44

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF THIRD QUARTER 2009 AND 2010 ACTUARIAL UPDATES		45

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2009 AND 2010 ACTUARIAL UPDATES		46

KEY DEFINITIONS AND FORMULAS		47-49

RATINGS AND INVESTOR INFORMATION		50

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

This Quarterly Financial Supplement reflects the following for all periods presented herein:

Effective for the third quarter 2010, the company has amended its definition of adjusted operating income as it relates to living benefit guarantees accounted for as embedded derivatives, and related hedging activities, associated primarily with variable annuity products. Prior to this amendment, adjusted operating income included the mark-to-market adjustments on the embedded derivatives, including a market-related measure of the company’s non-performance risk, and from associated derivative portfolios that are part of a hedging program related to the risks of those products, and the related amortization of deferred policy acquisition and other costs, as well as mark-to-market of derivatives under a capital hedge program intended to protect the company’s statutory capital under stress scenarios involving severe equity market declines. Under the amended definition, adjusted operating income excludes the mark-to-market adjustments on the embedded derivatives inclusive of the market-related measure of the company’s non-performance risk, related hedging activities, and the mark-to-market of derivatives under the capital hedge program. The company views adjusted operating income under the amended definition as a more meaningful presentation of its results for purposes of analyzing the operating performance of its business segments, as the amended definition presents results on a basis more consistent with the economics of the businesses. Accounting for these products and hedging activities under GAAP has not changed. Adjusted operating income results for earlier periods have been revised to conform to the amended definition.

Supplementary Assets Under Management and Administration information for the Asset Management Segment reported herein reflect certain reclassifications to conform to current reporting practices.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date						%			2009						2010
2010			2009			Change			3Q			4Q			1Q			2Q			3Q

								*Financial Services Businesses:*
								Pre-tax adjusted operating income (loss) by division:
	1,481			983			51%	U.S. Retirement Solutions and Investment Management Division		461			323			496			130			855
	515			683			-25%	U.S. Individual Life and Group Insurance Division		307			210			144			120			251
	1,505			1,415			6%	International Insurance and Investments Division		507			455			496			478			531
	(640	)		(575	)		-11%	Corporate and other operations		(203	)		(220	)		(205	)		(175	)		(260	)

	2,861			2,506			14%	Total pre-tax adjusted operating income		1,072			768			931			553			1,377
	754			615			23%	Income taxes, applicable to adjusted operating income		247			211			247			132			375

	2,107			1,891			11%	Financial Services Businesses after-tax adjusted operating income		825			557			684			421			1,002


								Reconciling items:
	840			(1,662	)		151%	Realized investment gains (losses), net, and related charges and adjustments		(377	)		(49	)		(63	)		625			278
	719			1,525			-53%	Investment gains on trading account assets supporting insurance liabilities, net		694			76			252			79			388
	(831	)		(850	)		2%	Change in experience-rated contractholder liabilities due to asset value changes		(458	)		(49	)		(320	)		(144	)		(367	)
	(46	)		(31	)		-48%	Divested businesses		25			2,162			(7	)		(7	)		(32	)
	(36	)		(75	)		52%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(92	)		(2,289	)		(36	)		18			(18	)

	646			(1,093	)		159%	Total reconciling items, before income taxes		(208	)		(149	)		(174	)		571			249
	291			(725	)		140%	Income taxes, not applicable to adjusted operating income		(392	)		38			8			176			107

	355			(368	)		196%	Total reconciling items, after income taxes		184			(187	)		(182	)		395			142

	2,462			1,523			62%	Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		1,009			370			502			816			1,144
	34			74			-54%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		81			1,483			36			(18	)		16

	2,496			1,597			56%	Income from continuing operations attributable to Prudential Financial, Inc.		1,090			1,853			538			798			1,160
	(1	)		(44	)		98%	Earnings attributable to noncontrolling interests		(50	)		10			(26	)		27			(2	)

	2,495			1,553			61%	Income from continuing operations (after-tax) of Financial Services Businesses		1,040			1,863			512			825			1,158
	5			26			-81%	Income (loss) from discontinued operations, net of taxes		—			(65	)		(2	)		—			7

	2,500			1,579			58%	Net income of Financial Services Businesses		1,040			1,798			510			825			1,165
	(1	)		(44	)		98%	Less: Income (loss) attributable to noncontrolling interests		(50	)		10			(26	)		27			(2	)

	2,501			1,623			54%	Net income of Financial Services Businesses attributable to Prudential Financial, Inc.		1,090			1,788			536			798			1,167

	10.68%			11.86%				Operating Return on Average Equity (based on adjusted operating income)		14.44	%		9.18	%		10.81	%		6.54	%		14.63	%

								*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
	2,501			1,623				Net income of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		1,090			1,788			536			798			1,167
	517			(364	)			Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		(8	)		77			161			279			77

	3,018			1,259				Consolidated net income attributable to Prudential Financial, Inc.		1,082			1,865			697			1,077			1,244

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date							2009						2010
2010			2009				3Q			4Q			1Q			2Q			3Q

						Earnings per share of Common Stock (diluted):
	4.49			4.32		Financial Services Businesses after-tax adjusted operating income		1.78			1.20			1.46			0.91			2.12

						Reconciling items:
	1.78			(3.77	)	Realized investment gains (losses), net, and related charges and adjustments		(0.81	)		(0.10	)		(0.13	)		1.32			0.59
	1.52			3.46		Investment gains on trading account assets supporting insurance liabilities, net		1.49			0.16			0.53			0.17			0.82
	(1.76	)		(1.93	)	Change in experience-rated contractholder liabilities due to asset value changes		(0.99	)		(0.10	)		(0.68	)		(0.30	)		(0.78	)
	(0.10	)		(0.07	)	Divested businesses		0.05			4.60			(0.01	)		(0.01	)		(0.07	)
	(0.01	)		0.01		Difference in earnings allocated to participating unvested share-based payment awards		—			(0.03	)		—			(0.01	)		—

	1.43			(2.30	)	Total reconciling items, before income taxes		(0.26	)		4.53			(0.29	)		1.17			0.56
	0.62			(1.64	)	Income taxes, not applicable to adjusted operating income		(0.83	)		1.81			0.01			0.38			0.23

	0.81			(0.66	)	Total reconciling items, after income taxes		0.57			2.72			(0.30	)		0.79			0.33

	5.30			3.66		Income from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		2.35			3.92			1.16			1.70			2.45
	0.01			0.06		Income (loss) from discontinued operations, net of taxes		—			(0.14	)		(0.01	)		—			0.01

	5.31			3.72		Net income of Financial Services Businesses attributable to Prudential Financial, Inc.		2.35			3.78			1.15			1.70			2.46


	464.0			438.8		Weighted average number of outstanding Common shares (basic)		461.2			461.8			463.0			464.3			464.8

	472.7			440.6		Weighted average number of outstanding Common shares (diluted)		464.6			470.3			471.5			473.3			473.2

	29			34		Direct equity adjustments for earnings per share calculation		12			9			10			10			9

	13			—		Earnings related to interest, net of tax, on exchangeable surplus notes		1			4			4			5			4

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	27			21		Financial Services Businesses after-tax adjusted operating income		9			7			8			6			13
	32			18		Income from continuing operations (after-tax) of Financial Services Businesses		12			21			7			10			15

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date					2009				2010
2010		2009			3Q		4Q		1Q		2Q		3Q

				*Financial Services Businesses Capitalization Data (1):*
				Senior Debt:
				Short-term debt		2,182		3,122		3,066		2,219		2,572
				Long-term debt		19,491		17,769		18,373		19,130		19,068
				Junior Subordinated Long-Term Debt		1,518		1,518		1,518		1,519		1,519

				Attributed Equity:
				Including accumulated other comprehensive income		23,239		24,154		25,721		28,233		32,007
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		23,919		25,399		25,961		26,758		28,507
				Excluding total accumulated other comprehensive income		23,338		24,728		25,318		26,193		27,418

				Total Capitalization:
				Including accumulated other comprehensive income		44,248		43,441		45,612		48,882		52,594
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		44,928		44,686		45,852		47,407		49,094
				Excluding total accumulated other comprehensive income		44,347		44,015		45,209		46,842		48,005

				Book value per share of Common Stock:
				Including accumulated other comprehensive income		49.71		51.52		54.63		59.94		67.81
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		51.16		54.18		55.14		56.81		60.40
				Excluding total accumulated other comprehensive income		49.92		52.75		53.78		55.61		58.09

				Number of diluted shares at end of period (2)		467.5		468.8		470.8		471.0		472.0

				*Common Stock Price Range (based on closing price):*
	65.82		54.63	High		54.63		52.82		60.50		65.82		59.54
	47.02		11.29	Low		33.28		44.64		47.02		53.66		49.65
	54.18		49.91	Close		49.91		49.76		60.50		53.66		54.18

				*Common Stock market capitalization (1)*		23,024		22,995		28,048		24,923		25,191

(1)	As of end of period.

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

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

OPERATIONS HIGHLIGHTS


Year-to-date					2009				2010
2010		2009			3Q		4Q		1Q		2Q		3Q

				*Assets Under Management and Administration ($ billions) (1) (2):*
				Assets Under Management :
				Managed by U.S. Retirement Solutions and Investment Management Division:
				Asset Management Segment - Investment Management & Advisory Services
				Institutional customers		179.9		188.4		193.3		203.5		222.1
				Retail customers		79.1		84.4		89.0		84.2		92.7
				General account		184.9		184.0		189.8		196.6		203.3

				Total Investment Management and Advisory Services		443.9		456.8		472.1		484.3		518.1
				Non-proprietary assets under management		109.4		122.3		126.8		118.3		136.2

				Total managed by U.S. Retirement Solutions and Investment Management Division		553.3		579.1		598.9		602.6		654.3
				Managed by U.S. Individual Life and Group Insurance Division		12.1		12.4		13.1		13.2		13.0
				Managed by International Insurance and Investments Division		75.5		75.8		81.3		74.0		82.8

				Total assets under management		640.9		667.3		693.3		689.8		750.1
				Client assets under administration		116.3		119.5		99.9		90.3		100.8

				Total assets under management and administration		757.2		786.8		793.2		780.1		850.9


				Assets managed or administered for customers outside of the United States at end of period		127.0		130.0		137.6		129.3		147.6

				*Distribution Representatives (1):*
				Prudential Agents		2,453		2,447		2,499		2,480		2,478
				International Life Planners		6,484		6,609		6,649		6,605		6,608
				Gibraltar Life Advisors		6,060		6,398		5,971		6,101		5,913

	48		49	*Prudential Agent productivity ($ thousands)*		58		56		43		52		49

(1)	As of end of period.

(2)	At fair market value.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date						%			2009						2010
2010			2009			Change			3Q			4Q			1Q			2Q			3Q

								Revenues (1):
	11,308			9,942			14%	Premiums		3,361			3,352			3,531			3,808			3,969
	2,551			2,193			16%	Policy charges and fee income		693			840			860			888			803
	6,388			6,158			4%	Net investment income		2,051			2,055			2,075			2,111			2,202
	2,603			1,899			37%	Asset management fees, commissions and other income		693			747			770			931			902

	22,850			20,192			13%	Total revenues		6,798			6,994			7,236			7,738			7,876


								Benefits and Expenses (1):
	11,187			9,507			18%	Insurance and annuity benefits		3,115			3,202			3,431			4,000			3,756
	2,541			2,523			1%	Interest credited to policyholders’ account balances		850			853			846			875			820
	776			714			9%	Interest expense		229			241			251			258			267
	(2,243	)		(2,001	)		-12%	Deferral of acquisition costs		(782	)		(768	)		(717	)		(746	)		(780	)
	990			872			14%	Amortization of acquisition costs		163			394			352			539			99
	6,738			6,071			11%	General and administrative expenses		2,151			2,304			2,142			2,259			2,337

	19,989			17,686			13%	Total benefits and expenses		5,726			6,226			6,305			7,185			6,499

	2,861			2,506			14%	Adjusted operating income before income taxes		1,072			768			931			553			1,377


								Reconciling items:
	1,481			(1,101	)		235%	Realized investment gains (losses), net, and related adjustments		(406	)		(118	)		64			1,257			160
	(641	)		(561	)		-14%	Related charges		29			69			(127	)		(632	)		118

	840			(1,662	)		151%	Total realized investment gains (losses), net, and related charges and adjustments		(377	)		(49	)		(63	)		625			278

	719			1,525			-53%	Investment gains on trading account assets supporting insurance liabilities, net		694			76			252			79			388
	(831	)		(850	)		2%	Change in experience-rated contractholder liabilities due to asset value changes		(458	)		(49	)		(320	)		(144	)		(367	)
	(46	)		(31	)		-48%	Divested businesses		25			2,162			(7	)		(7	)		(32	)
	(36	)		(75	)		52%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(92	)		(2,289	)		(36	)		18			(18	)

	646			(1,093	)		159%	Total reconciling items, before income taxes		(208	)		(149	)		(174	)		571			249


	3,507			1,413			148%	Income from continuing operations before income taxes and equity in earnings of operating joint ventures		864			619			757			1,124			1,626
	1,045			(110	)		1050%	Income tax expense (benefit)		(145	)		249			255			308			482

	2,462			1,523			62%	Income from continuing operations before equity in earnings of operating joint ventures		1,009			370			502			816			1,144

(1)

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

Page 5

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	9/30/2009			12/31/2009			3/31/2010		6/30/2010		9/30/2010

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $127,490; $131,727; $134,359; $134,883; $141,794)		128,459			132,694			136,792		140,610		151,227
Fixed maturities, held to maturity, at amortized cost (fair value $5,199; $5,197; $5,081; $5,209; $5,522)		5,141			5,120			5,016		5,023		5,233
Trading account assets supporting insurance liabilities, at fair value		15,848			16,020			16,683		16,733		17,750
Other trading account assets, at fair value		3,656			2,866			3,222		5,358		5,512
Equity securities, available for sale, at fair value (cost $3,390; $3,459; $3,367; $3,340; $3,547)		3,747			3,810			3,824		3,747		4,021
Commercial mortgage and other loans		23,616			23,021			22,557		23,097		23,466
Policy loans		4,634			4,728			4,825		4,915		5,147
Other long-term investments		4,296			4,359			4,340		4,321		4,572
Short-term investments		6,078			5,487			5,826		5,673		4,646

Total investments		195,475			198,105			203,085		209,477		221,574
Cash and cash equivalents		10,524			12,451			8,996		10,751		11,019
Accrued investment income		1,613			1,668			1,657		1,682		1,721
Deferred policy acquisition costs		13,313			13,751			13,962		13,432		14,291
Other assets		19,964			15,222			15,597		14,784		15,155
Separate account assets		168,128			174,074			182,621		179,260		194,463

Total assets		409,017			415,271			425,918		429,386		458,223


Liabilities:
Future policy benefits		72,774			73,931			74,103		76,982		82,063
Policyholders’ account balances		95,766			96,078			96,082		97,033		99,753
Securities sold under agreements to repurchase		3,650			2,985			2,969		2,683		2,628
Cash collateral for loaned securities		2,573			2,323			2,380		1,866		1,831
Income taxes		3,935			4,665			4,563		5,747		7,438
Senior short-term debt		2,182			3,122			3,066		2,219		2,572
Senior long-term debt		19,491			17,769			18,373		19,130		19,068
Junior subordinated long-term debt		1,518			1,518			1,518		1,519		1,519
Other liabilities		15,212			14,118			14,016		14,169		14,359
Separate account liabilities		168,128			174,074			182,621		179,260		194,463

Total liabilities		385,229			390,583			399,691		400,608		425,694


Attributed Equity:
Accumulated other comprehensive income (loss)		(99	)		(574	)		403		2,040		4,589
Other attributed equity		23,338			24,728			25,318		26,193		27,418

Total attributed equity		23,239			24,154			25,721		28,233		32,007

Noncontrolling Interest		549			534			506		545		522

Total Equity		23,788			24,688			26,227		28,778		32,529

Total liabilities and equity		409,017			415,271			425,918		429,386		458,223

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended September 30, 2010
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance & Investments Division			Corporate and Other Operations
Revenues (1) :
Premiums		3,969			400			1,320			2,253			(4	)
Policy charges and fee income		803			415			300			107			(19	)
Net investment income		2,202			1,066			399			640			97
Asset management fees, commissions and other income		902			795			85			92			(70	)

Total revenues		7,876			2,676			2,104			3,092			4


Benefits and Expenses (1):
Insurance and annuity benefits		3,756			507			1,428			1,801			20
Interest credited to policyholders’ account balances		820			558			130			148			(16	)
Interest expense		267			24			45			1			197
Deferral of acquisition costs		(780	)		(325	)		(110	)		(357	)		12
Amortization of acquisition costs		99			(52	)		(61	)		215			(3	)
General and administrative expenses		2,337			1,109			421			753			54

Total benefits and expenses		6,499			1,821			1,853			2,561			264


Adjusted operating income (loss) before income taxes		1,377			855			251			531			(260	)


	Quarter Ended September 30, 2009
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance & Investments Division			Corporate and Other Operations
Revenues (1):
Premiums		3,361			118			1,226			2,015			2
Policy charges and fee income		693			313			297			90			(7	)
Net investment income		2,051			1,064			361			563			63
Asset management fees, commissions and other income		693			549			128			74			(58	)

Total revenues		6,798			2,044			2,012			2,742			—


Benefits and Expenses (1):
Insurance and annuity benefits		3,115			210			1,326			1,572			7
Interest credited to policyholders’ account balances		850			623			126			123			(22	)
Interest expense		229			14			42			1			172
Deferral of acquisition costs		(782	)		(347	)		(143	)		(302	)		10
Amortization of acquisition costs		163			86			(98	)		175			—
General and administrative expenses		2,151			997			452			666			36

Total benefits and expenses		5,726			1,583			1,705			2,235			203


Adjusted operating income (loss) before income taxes		1,072			461			307			507			(203	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Nine Months Ended September 30, 2010
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance & Investments Division			Corporate and Other Operations
Revenues (1) :
Premiums		11,308			937			3,682			6,702			(13	)
Policy charges and fee income		2,551			1,206			1,081			298			(34	)
Net investment income		6,388			3,161			1,163			1,801			263
Asset management fees, commissions and other income		2,603			2,271			243			304			(215	)

Total revenues		22,850			7,575			6,169			9,105			1


Benefits and Expenses (1):
Insurance and annuity benefits		11,187			1,681			4,059			5,386			61
Interest credited to policyholders’ account balances		2,541			1,806			380			412			(57	)
Interest expense		776			69			117			2			588
Deferral of acquisition costs		(2,243	)		(917	)		(337	)		(1,023	)		34
Amortization of acquisition costs		990			219			155			643			(27	)
General and administrative expenses		6,738			3,236			1,280			2,180			42

Total benefits and expenses		19,989			6,094			5,654			7,600			641


Adjusted operating income (loss) before income taxes		2,861			1,481			515			1,505			(640	)


	Nine Months Ended September 30, 2009
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance & Investments Division			Corporate and Other Operations
Revenues (1):
Premiums		9,942			554			3,572			5,825			(9	)
Policy charges and fee income		2,193			831			1,102			280			(20	)
Net investment income		6,158			3,324			1,064			1,598			172
Asset management fees, commissions and other income		1,899			1,530			293			260			(184	)

Total revenues		20,192			6,239			6,031			7,963			(41	)


Benefits and Expenses (1):
Insurance and annuity benefits		9,507			1,109			3,824			4,538			36
Interest credited to policyholders’ account balances		2,523			1,907			364			352			(100	)
Interest expense		714			55			140			3			516
Deferral of acquisition costs		(2,001	)		(713	)		(404	)		(910	)		26
Amortization of acquisition costs		872			178			112			591			(9	)
General and administrative expenses		6,071			2,720			1,312			1,974			65

Total benefits and expenses		17,686			5,256			5,348			6,548			534


Adjusted operating income (loss) before income taxes		2,506			983			683			1,415			(575	)

(1)

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of September 30, 2010
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Assets:
Total investments		221,574			92,707		32,092		89,406		7,369
Deferred policy acquisition costs		14,291			2,866		4,519		7,054		(148	)
Other assets		27,895			7,832		3,007		9,498		7,558
Separate account assets		194,463			160,590		35,311		627		(2,065	)

Total assets		458,223			263,995		74,929		106,585		12,714


Liabilities:
Future policy benefits		82,063			18,046		9,677		53,925		415
Policyholders’ account balances		99,753			57,752		15,415		27,795		(1,209	)
Debt		23,159			4,267		5,544		741		12,607
Other liabilities		26,256			9,250		3,460		11,837		1,709
Separate account liabilities		194,463			160,590		35,311		627		(2,065	)

Total liabilities		425,694			249,905		69,407		94,925		11,457


Attributed Equity:
Accumulated other comprehensive income (loss)		4,589			1,831		1,193		2,961		(1,396	)
Other attributed equity		27,418			11,661		4,329		8,693		2,735

Total attributed equity		32,007			13,492		5,522		11,654		1,339

Noncontrolling Interest		522			598		—		6		(82	)

Total Equity		32,529			14,090		5,522		11,660		1,257


Total liabilities and equity		458,223			263,995		74,929		106,585		12,714


	As of December 31, 2009
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance & Investments Division		Corporate and Other Operations
Assets:
Total investments		198,105			86,016		28,196		76,367		7,526
Deferred policy acquisition costs		13,751			2,722		4,550		6,627		(148	)
Other assets		29,341			7,806		3,006		9,131		9,398
Separate account assets		174,074			141,330		34,100		462		(1,818	)

Total assets		415,271			237,874		69,852		92,587		14,958


Liabilities:
Future policy benefits		73,931			15,335		9,122		49,079		395
Policyholders’ account balances		96,078			58,154		14,772		24,966		(1,814	)
Debt		22,409			3,570		4,994		490		13,355
Other liabilities		24,091			7,747		2,646		9,567		4,131
Separate account liabilities		174,074			141,330		34,100		462		(1,818	)

Total liabilities		390,583			226,136		65,634		84,564		14,249


Attributed Equity:
Accumulated other comprehensive income (loss)		(574	)		532		148		281		(1,535	)
Other attributed equity		24,728			10,612		4,070		7,735		2,311

Total attributed equity		24,154			11,144		4,218		8,016		776

Noncontrolling Interest		534			594		—		7		(67	)

Total Equity		24,688			11,738		4,218		8,023		709


Total liabilities and equity		415,271			237,874		69,852		92,587		14,958

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of September 30, 2010									As of December 31, 2009
	Senior debt				Junior Subordinated Long-term Debt		Total Debt			Senior debt				Junior Subordinated Long-term Debt		Total Debt
	Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt			Short-term Debt		Long-term Debt		Junior Subordinated Long-term Debt		Total Debt
Financial Services Businesses
*Borrowings by use of proceeds:*
Capital Debt		392		7,170		1,519		9,081			389		6,546		1,518		8,453
Investment related		676		8,201		—		8,877			1,247		7,998		—		9,245
Securities business related		538		1,431		—		1,969			1,015		1,283		—		2,298
Specified other businesses		966		2,266		—		3,232			471		1,513		—		1,984
Limited recourse and non-recourse borrowing		—		—		—		—			—		429		—		429

Total debt - Financial Services Businesses		2,572		19,068		1,519		23,159			3,122		17,769		1,518		22,409

Ratio of long-term and short-term capital debt to capitalization (1)								23.1	%								21.6	%

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

Total debt		—		1,750		—		1,750			—		1,750		—		1,750


	As of September 30, 2010									As of December 31, 2009
	Prudential Financial, Inc.		The Prudential Insurance Co. of America (2)(3)		Other Affiliates		Total			Prudential Financial, Inc.		The Prudential Insurance Co. of America (2)(3)		Other Affiliates		Total
Financial Services Businesses
*Borrowings by sources:*
Capital Debt		7,648		1,335		98		9,081			6,973		1,335		145		8,453
Investment related		5,113		522		3,242		8,877			4,760		1,212		3,273		9,245
Securities business related		1,583		386		—		1,969			1,422		826		50		2,298
Specified other businesses		2,268		964		—		3,232			1,513		471		—		1,984
Limited recourse and non-recourse borrowing		—		—		—		—			—		—		429		429

Total debt - Financial Services Businesses		16,612		3,207		3,340		23,159			14,668		3,844		3,897		22,409

(1)

For the purposes of calculating the ratio of capital debt to capitalization, Junior Subordinated Notes are considered 25% equity and 75% debt effective June 30, 2010. For the calculation of this ratio for periods prior to June 30, 2010, Junior Subordinated Notes are considered 25% debt and 75% equity.

(2)	Includes Prudential Funding, LLC.

(3)	Capital debt at Prudential Insurance Co. of America includes $942 million of Surplus Notes for September 30, 2010 and $941 million for December 31, 2009.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

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

(in millions)


Year-to-date						% Change			2009						2010
2010			2009			% Change			3Q			4Q			1Q			2Q			3Q

								Revenues (1):
	937			554			69%	Premiums		118			136			146			391			400
	1,206			831			45%	Policy charges and fee income		313			358			398			393			415
	3,161			3,324			-5%	Net investment income		1,064			1,054			1,045			1,050			1,066
	2,271			1,530			48%	Asset management fees, commissions and other income		549			644			678			798			795

	7,575			6,239			21%	Total revenues		2,044			2,192			2,267			2,632			2,676


								Benefits and Expenses (1):
	1,681			1,109			52%	Insurance and annuity benefits		210			360			335			839			507
	1,806			1,907			-5%	Interest credited to policyholders’ account balances		623			618			608			640			558
	69			55			25%	Interest expense		14			13			22			23			24
	(917	)		(713	)		-29%	Deferral of acquisition costs		(347	)		(310	)		(269	)		(323	)		(325	)
	219			178			23%	Amortization of acquisition costs		86			107			85			186			(52	)
	3,236			2,720			19%	General and administrative expenses		997			1,081			990			1,137			1,109

	6,094			5,256			16%	Total benefits and expenses		1,583			1,869			1,771			2,502			1,821

	1,481			983			51%	Adjusted operating income before income taxes		461			323			496			130			855

(1)

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

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

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

(in millions)


	Nine Months Ended September 30, 2010												Quarter Ended September 30, 2010
	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		937			129			808			—			400			49			351			—
Policy charges and fee income		1,206			1,055			151			—			415			365			50			—
Net investment income		3,161			660			2,417			84			1,066			220			815			31
Asset management fees, commissions and other income		2,271			490			499			1,282			795			173			160			462

Total revenues		7,575			2,334			3,875			1,366			2,676			807			1,376			493


Benefits and Expenses (1):
Insurance and annuity benefits		1,681			288			1,393			—			507			(49	)		556			—
Interest credited to policyholders’ account balances		1,806			437			1,369			—			558			98			460			—
Interest expense		69			46			13			10			24			16			5			3
Deferral of acquisition costs		(917	)		(860	)		(39	)		(18	)		(325	)		(308	)		(11	)		(6	)
Amortization of acquisition costs		219			185			15			19			(52	)		(64	)		6			6
General and administrative expenses (2)		3,236			1,537			699			1,000			1,109			526			241			342

Total benefits and expenses		6,094			1,633			3,450			1,011			1,821			219			1,257			345

Adjusted operating income before income taxes		1,481			701			425			355			855			588			119			148


	Nine Months Ended September 30, 2009												Quarter Ended September 30, 2009
	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		554			61			493			—			118			28			90			—
Policy charges and fee income		831			685			146			—			313			265			48			—
Net investment income		3,324			761			2,507			56			1,064			236			815			13
Asset management fees, commissions and other income		1,530			311			379			840			549			124			147			278

Total revenues		6,239			1,818			3,525			896			2,044			653			1,100			291


Benefits and Expenses (1):
Insurance and annuity benefits		1,109			40			1,069			—			210			(85	)		295			—
Interest credited to policyholders’ account balances		1,907			467			1,440			—			623			155			468			—
Interest expense		55			9			24			22			14			2			6			6
Deferral of acquisition costs		(713	)		(656	)		(42	)		(15	)		(347	)		(327	)		(13	)		(7	)
Amortization of acquisition costs		178			144			21			13			86			72			9			5
General and administrative expenses (2)		2,720			1,254			651			815			997			521			218			258

Total benefits and expenses		5,256			1,258			3,163			835			1,583			338			983			262

Adjusted operating income before income taxes		983			560			362			61			461			315			117			29

(1)

(2)

General and administrative expenses for Individual Annuities include $7 million for the nine months ended September 30, 2010 and $82 million for the nine months ended September 30, 2009, $(2) million for the quarter ended September 30, 2010 and $1 million for the quarter ended September 30, 2009 for the amortization, net of interest, of value of business acquired (VOBA).

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

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

AND ACCOUNT VALUES

(in millions)


Year-to-date							2009						2010
2010			2009				3Q			4Q			1Q			2Q			3Q

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	80,519			60,007		Beginning total account value		65,099			75,611			80,519			85,379			83,593
	15,543			11,315		Sales		5,829			4,802			4,867			5,308			5,368
	(5,044	)		(4,202	)	Surrenders and withdrawals		(1,444	)		(1,574	)		(1,670	)		(1,714	)		(1,660	)

	10,499			7,113		Net sales		4,385			3,228			3,197			3,594			3,708
	(729	)		(731	)	Benefit payments		(239	)		(257	)		(266	)		(203	)		(260	)

	9,770			6,382		Net flows		4,146			2,971			2,931			3,391			3,448
	4,260			9,947		Change in market value, interest credited, and other (1)		6,650			2,273			2,288			(4,784	)		6,756
	(1,174	)		(725	)	Policy charges		(284	)		(336	)		(359	)		(393	)		(422	)

	93,375			75,611		Ending total account value		75,611			80,519			85,379			83,593			93,375


						Fixed Annuities:
	3,452			3,295		Beginning total account value		3,221			3,213			3,452			3,739			3,766
	91			142		Sales		46			37			30			32			29
	(170	)		(201	)	Surrenders and withdrawals		(49	)		(57	)		(48	)		(78	)		(44	)

	(79	)		(59	)	Net redemptions		(3	)		(20	)		(18	)		(46	)		(15	)
	(199	)		(121	)	Benefit payments		(41	)		(39	)		(57	)		(80	)		(62	)

	(278	)		(180	)	Net flows		(44	)		(59	)		(75	)		(126	)		(77	)
	655			99		Interest credited and other (1)		36			298			363			153			139
	(1	)		(1	)	Policy charges		—			—			(1	)		—			—

	3,828			3,213		Ending total account value		3,213			3,452			3,739			3,766			3,828


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (2):
	2,030			1,731		Insurance Agents		735			664			623			713			694
	3,312			2,388		Wirehouses		1,359			1,052			1,097			1,114			1,101
	7,731			6,174		Independent Financial Planners (3)		3,138			2,470			2,460			2,653			2,618
	2,561			1,164		Bank Distribution (3)		643			653			717			860			984

	15,634			11,457		Total		5,875			4,839			4,897			5,340			5,397

(1)

Includes cumulative reclassifications during the first quarter of 2010 and the fourth quarter of 2009 of $267 million and $259 million, respectively, from variable annuity to fixed annuity account values to conform presentation of certain contracts in annuitization status to current reporting practices.

(2)	Amounts represent gross sales.

(3)	Sales from the bank distribution channel, previously included within sales from the independent financial planners channel, is being shown separately in order to provide a more meaningful presentation.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

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

(in millions)


Year-to-date							2009						2010
2010			2009				3Q			4Q			1Q			2Q			3Q

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	14,606			18,110		Beginning balance		16,355			15,308			14,606			14,190			14,398
	1,922			917		Premiums and deposits		638			566			604			627			691
	(1,118	)		(1,153	)	Surrenders and withdrawals		(411	)		(369	)		(364	)		(402	)		(352	)

	804			(236	)	Net sales (redemptions)		227			197			240			225			339
	(262	)		(264	)	Benefit payments		(88	)		(85	)		(95	)		(81	)		(86	)

	542			(500	)	Net flows		139			112			145			144			253
	432			426		Interest credited and other		141			130			137			144			151
	(1,886	)		(2,727	)	Net transfers to separate account		(1,327	)		(944	)		(697	)		(80	)		(1,109	)
	(1	)		(1	)	Policy charges		—			—			(1	)		—			—

	13,693			15,308		Ending balance		15,308			14,606			14,190			14,398			13,693


						Account Values in Separate Account:
	69,365			45,192		Beginning balance		51,965			63,516			69,365			74,928			72,961
	13,712			10,540		Premiums and deposits		5,237			4,273			4,293			4,713			4,706
	(4,096	)		(3,250	)	Surrenders and withdrawals		(1,082	)		(1,262	)		(1,354	)		(1,390	)		(1,352	)

	9,616			7,290		Net sales		4,155			3,011			2,939			3,323			3,354
	(666	)		(588	)	Benefit payments		(192	)		(211	)		(228	)		(202	)		(236	)

	8,950			6,702		Net flows		3,963			2,800			2,711			3,121			3,118
	4,483			9,620		Change in market value, interest credited and other		6,545			2,441			2,514			(4,775	)		6,744
	1,886			2,727		Net transfers from general account		1,327			944			697			80			1,109
	(1,174	)		(725	)	Policy charges		(284	)		(336	)		(359	)		(393	)		(422	)

	83,510			63,516		Ending balance		63,516			69,365			74,928			72,961			83,510

(1)

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

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

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

(in millions)


	2009				2010
	3Q		4Q		1Q		2Q		3Q

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

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		10,023		9,952		9,906		9,408		9,687
Guaranteed minimum withdrawal benefits		1,420		1,412		1,402		1,250		1,302
Guaranteed minimum income benefits		4,613		4,677		4,693		4,181		4,416
Guaranteed minimum withdrawal & income benefits		31,416		36,430		41,511		43,395		51,457

Total		47,472		52,471		57,512		58,234		66,862


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		30,116		34,901		39,786		42,166		49,721
Account Values without Auto-Rebalancing Feature		17,356		17,570		17,726		16,068		17,141

Total		47,472		52,471		57,512		58,234		66,862


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		1,129		1,061		1,104		2,200		1,473
Net Amount at Risk without Auto-Rebalancing Feature		2,895		2,785		2,479		3,384		2,406

Total		4,024		3,846		3,583		5,584		3,879

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

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

(in millions)


	2009				2010
	3Q		4Q		1Q		2Q		3Q

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

Variable Annuity Account Values by Death Benefit Features
Return of net deposits:
Account value		46,881		51,106		55,441		55,452		62,940
Net amount at risk		3,219		2,707		2,160		3,136		1,666
Minimum return, anniversary contract value, or maximum contract value:
Account value		24,880		25,770		26,546		25,069		27,236
Net amount at risk		6,472		5,891		5,345		6,758		5,254

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		30,116		34,901		39,786		42,166		49,721
Account Values without Auto-Rebalancing Feature		41,645		41,975		42,201		38,355		40,455

Total		71,761		76,876		81,987		80,521		90,176


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		863		800		719		1,342		672
Net Amount at Risk without Auto-Rebalancing Feature		8,828		7,798		6,786		8,552		6,248

Total		9,691		8,598		7,505		9,894		6,920

(1)	At end of period.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

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

(in millions)


Year-to-date							2009						2010
2010			2009				3Q			4Q			1Q			2Q			3Q

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	126,345			99,738		Beginning total account value		110,950			121,756			126,345			131,147			125,176
	14,897			19,168		Deposits and sales		4,789			4,020			5,605			4,037			5,255
	(11,418	)		(11,321	)	Withdrawals and benefits		(3,287	)		(3,117	)		(4,500	)		(3,751	)		(3,167	)
	5,424			14,171		Change in market value, interest credited and interest income		9,304			3,686			3,697			(6,257	)		7,984

	135,248			121,756		Ending total account value		121,756			126,345			131,147			125,176			135,248


	3,479			7,847		Net additions		1,502			903			1,105			286			2,088


						Stable value account values included above		35,881			36,243			37,138			37,909			39,022

						Institutional Investment Products:
	51,908			50,491		Beginning total account value		49,475			50,137			51,908			52,768			55,965
	8,644			4,299		Additions (1)		1,329			3,487			1,876			3,692			3,076
	(5,781	)		(5,832	)	Withdrawals and benefits (2)		(2,523	)		(1,985	)		(2,139	)		(2,002	)		(1,640	)
	3,545			2,074		Change in market value, interest credited and interest income		1,548			213			799			1,448			1,298
	746			(895	)	Other (3)		308			56			324			59			363

	59,062			50,137		Ending total account value		50,137			51,908			52,768			55,965			59,062


	2,863			(1,533	)	Net additions (withdrawals)		(1,194	)		1,502			(263	)		1,690			1,436

(1)	Includes $500 million for the nine months ended September 30, 2009, representing transfers of externally managed client balances to accounts managed by the company. These additions are offset within the “Other” category and there are no net impacts on ending account values for these transfers.

(2)

Includes $(317) million, $(171) million, $(411) million, $(34) million and $(240) million for the three months ended September 30, 2009, December 31, 2009, March 31, 2010, June 30, 2010 and September 30, 2010, respectively; $(685) million and $(317) million for the nine months ended September 30, 2010 and 2009, respectively, representing transfers of client balances managed by the Company to externally managed accounts. These withdrawals are offset within the “Other” category and there are no net impacts on ending account values for these transfers.

(3)

“Other” activity includes transfers to the Asset Management segment of $(11) million, $(43) million, $(3) million and for the three months ended December 31, 2009, March 31, 2010, June 30, 2010, respectively and $(46) million for the nine months ended September 30, 2010. “Other” activity also includes $317 million, $171 million, $411 million, $34 million and $240 million for the three months ended September 30, 2009, December 31, 2009, March 31, 2010, June 30, 2010 and September 30, 2010, respectively; $685 million and $(183) million for the nine months ended September 30, 2010 and 2009, respectively, related to transfers discussed above in notes 1 and 2. “Other” also includes $(1,522) million for the nine months ended September 30, 2009, respectively, representing terminations of affiliated funding agreements utilizing proceeds from the issuances to FHLBNY. The remainder of “Other” activity primarily represents changes in asset balances for externally managed accounts.

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

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


							Supplementary Revenue Information (in millions):
Year-to-date					% Change			2009						2010
2010		2009			% Change			3Q			4Q			1Q		2Q		3Q

							Analysis of revenues by type:
	935		762			23%	Asset management fees		269			287			304		311		320
	158		(47	)		436%	Incentive, transaction, principal investing and commercial mortgage revenues		(13	)		(17	)		16		74		68
	273		181			51%	Service, distribution and other revenues		35			91			59		109		105

	1,366		896			52%	Total Asset Management segment revenues		291			361			379		494		493



							Analysis of asset management fees by source:
	463		374			24%	Institutional customers		129			137			152		152		159
	255		189			35%	Retail customers		71			79			81		87		87
	217		199			9%	General account		69			71			71		72		74

	935		762			23%	Total asset management fees		269			287			304		311		320


Supplementary Assets Under Management Information (in billions):
	September 30, 2010
	Equity		Fixed Income		Real Estate		Total
Institutional customers		46.7		152.4		23.0		222.1
Retail customers		64.1		27.1		1.5		92.7
General account		3.8		198.6		0.9		203.3

Total		114.6		378.1		25.4		518.1


	September 30, 2009
	Equity		Fixed Income		Real Estate		Total
Institutional customers		46.2		113.0		20.7		179.9
Retail customers		53.0		24.3		1.8		79.1
General account		4.1		179.9		0.9		184.9

Total		103.3		317.2		23.4		443.9

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

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

(in billions)


Year-to-date							2009						2010
2010			2009				3Q			4Q			1Q			2Q			3Q

						Institutional Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	152.1			128.5		Beginning assets under management (1)		128.9			143.5			152.1			157.1			167.3
	33.9			23.1		Additions (1)		10.5			11.1			7.7			15.2			11.0
	(15.2	)		(16.7	)	Withdrawals		(5.6	)		(4.5	)		(5.7	)		(4.3	)		(5.2	)
	13.9			9.8		Change in market value		9.9			2.1			3.6			(0.7	)		11.0
	(0.6	)		(1.2	)	Net money market flows		(0.2	)		(0.1	)		(0.6	)		—			—

	184.1			143.5		Ending assets under management (1)		143.5			152.1			157.1			167.3			184.1
	38.0			36.4		Affiliated institutional assets under management (1)		36.4			36.3			36.2			36.2			38.0

	222.1			179.9		Total assets managed for institutional customers at end of period		179.9			188.4			193.3			203.5			222.1


	18.7			6.4		Net institutional additions, excluding money market activity (1)		4.9			6.6			2.0			10.9			5.8


						Retail Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	51.1			33.4		Beginning assets under management		39.5			47.2			51.1			53.5			49.1
	15.7			14.2		Additions		6.1			4.4			4.8			6.8			4.1
	(10.5	)		(9.3	)	Withdrawals		(3.3	)		(3.2	)		(3.7	)		(3.9	)		(2.9	)
	1.8			8.8		Change in market value		5.1			2.9			1.5			(4.9	)		5.2
	(2.6	)		0.1		Net money market flows		(0.2	)		(0.2	)		(0.2	)		(2.4	)		—

	55.5			47.2		Ending assets under management		47.2			51.1			53.5			49.1			55.5
	37.2			31.9		Affiliated retail assets under management		31.9			33.3			35.5			35.1			37.2

	92.7			79.1		Total assets managed for retail customers at end of period		79.1			84.4			89.0			84.2			92.7


	5.2			4.9		Net retail additions, excluding money market activity		2.8			1.2			1.1			2.9			1.2

(1)	Amounts reported herein reflect certain reclassifications to conform to current reporting practices.

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

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

(in millions)


Year-to-date						% Change			2009						2010
2010			2009			% Change			3Q			4Q			1Q			2Q			3Q

								Revenues (1):
	3,682			3,572			3%	Premiums		1,226			1,165			1,172			1,190			1,320
	1,081			1,102			-2%	Policy charges and fee income		297			407			375			406			300
	1,163			1,064			9%	Net investment income		361			368			375			389			399
	243			293			-17%	Asset management fees, commissions and other income		128			82			76			82			85

	6,169			6,031			2%	Total revenues		2,012			2,022			1,998			2,067			2,104


								Benefits and Expenses (1):
	4,059			3,824			6%	Insurance and annuity benefits		1,326			1,234			1,323			1,308			1,428
	380			364			4%	Interest credited to policyholders’ account balances		126			128			126			124			130
	117			140			-16%	Interest expense		42			41			35			37			45
	(337	)		(404	)		17%	Deferral of acquisition costs		(143	)		(133	)		(118	)		(109	)		(110	)
	155			112			38%	Amortization of acquisition costs		(98	)		96			60			156			(61	)
	1,280			1,312			-2%	General and administrative expenses		452			446			428			431			421

	5,654			5,348			6%	Total benefits and expenses		1,705			1,812			1,854			1,947			1,853


	515			683			-25%	Adjusted operating income before income taxes		307			210			144			120			251

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

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

(in millions)


	Nine Months Ended September 30, 2010									Quarter Ended September 30, 2010
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance			Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		3,682			534			3,148			1,320			181			1,139
Policy charges and fee income		1,081			709			372			300			166			134
Net investment income		1,163			666			497			399			230			169
Asset management fees, commissions and other income		243			167			76			85			61			24

Total revenues		6,169			2,076			4,093			2,104			638			1,466


Benefits and Expenses (1):
Insurance and annuity benefits		4,059			844			3,215			1,428			265			1,163
Interest credited to policyholders’ account balances		380			212			168			130			73			57
Interest expense		117			117			—			45			45			—
Deferral of acquisition costs		(337	)		(302	)		(35	)		(110	)		(97	)		(13	)
Amortization of acquisition costs		155			139			16			(61	)		(67	)		6
General and administrative expenses		1,280			697			583			421			229			192

Total benefits and expenses		5,654			1,707			3,947			1,853			448			1,405


Adjusted operating income before income taxes		515			369			146			251			190			61


	Nine Months Ended September 30, 2009									Quarter Ended September 30, 2009
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance			Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		3,572			508			3,064			1,226			178			1,048
Policy charges and fee income		1,102			735			367			297			181			116
Net investment income		1,064			602			462			361			205			156
Asset management fees, commissions and other income		293			194			99			128			92			36

Total revenues		6,031			2,039			3,992			2,012			656			1,356


Benefits and Expenses (1):
Insurance and annuity benefits		3,824			791			3,033			1,326			269			1,057
Interest credited to policyholders’ account balances		364			195			169			126			68			58
Interest expense		140			140			—			42			42			—
Deferral of acquisition costs		(404	)		(367	)		(37	)		(143	)		(124	)		(19	)
Amortization of acquisition costs		112			95			17			(98	)		(102	)		4
General and administrative expenses		1,312			764			548			452			260			192

Total benefits and expenses		5,348			1,618			3,730			1,705			413			1,292


Adjusted operating income before income taxes		683			421			262			307			243			64

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

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

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							2009						2010
2010			2009				3Q			4Q			1Q			2Q			3Q

						ANNUALIZED NEW BUSINESS PREMIUMS (1) :

	16			12		Variable life		3			8			5			5			6
	57			86		Universal life		26			27			20			17			20
	120			170		Term life		57			56			43			39			38

	193			268		Total		86			91			68			61			64


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	62			68		Prudential Agents		22			27			20			22			20
	131			200		Third party distribution		64			64			48			39			44

	193			268		Total		86			91			68			61			64


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2):*
	8,081			7,397		Beginning balance		7,824			7,914			8,081			8,228			8,305
	1,140			1,430		Premiums and deposits		386			375			382			369			389
	(597	)		(738	)	Surrenders and withdrawals		(220	)		(196	)		(184	)		(205	)		(208	)

	543			692		Net sales		166			179			198			164			181
	(145	)		(116	)	Benefit payments		(50	)		(33	)		(64	)		(40	)		(41	)

	398			576		Net flows		116			146			134			124			140
	158			28		Interest credited and other		11			50			48			(29	)		139
	189			183		Net transfers from separate account		53			63			58			74			57
	(278	)		(270	)	Policy charges		(90	)		(92	)		(93	)		(92	)		(93	)

	8,548			7,914		Ending balance		7,914			8,081			8,228			8,305			8,548


						*Separate Account Liabilities:*
	15,692			12,848		Beginning balance		13,450			14,972			15,692			16,155			14,861
	788			844		Premiums and deposits		268			329			235			234			319
	(450	)		(683	)	Surrenders and withdrawals		(139	)		(165	)		(142	)		(146	)		(162	)

	338			161		Net sales		129			164			93			88			157
	(22	)		(31	)	Benefit payments		(11	)		(8	)		(8	)		(8	)		(6	)

	316			130		Net flows		118			156			85			80			151
	780			2,707		Change in market value, interest credited and other		1,633			802			609			(1,127	)		1,298
	(189	)		(183	)	Net transfers to general account		(53	)		(63	)		(58	)		(74	)		(57	)
	(520	)		(530	)	Policy charges		(176	)		(175	)		(173	)		(173	)		(174	)

	16,079			14,972		Ending balance		14,972			15,692			16,155			14,861			16,079


						FACE AMOUNT IN FORCE (3):

						Variable life		122,955			122,091			121,090			118,804			118,274
						Universal life		33,711			34,984			35,622			36,082			36,691
						Term life		417,100			431,831			440,915			447,408			452,133

						Total		573,766			588,906			597,627			602,294			607,098

(1)	Excludes corporate-owned life insurance.

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

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

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

(dollar amounts in millions)


Year-to-date					2009				2010
2010		2009			3Q		4Q		1Q		2Q		3Q

				Individual Life Insurance:

				Policy Surrender Experience:
	525		665	Cash value of surrenders		173		190		170		172		183
	3.1%		4.4%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		3.4%		3.5%		3.0%		3.1%		3.3%

				Death benefits per $1,000 of in force (1):
	4.52		4.06	Variable and universal life		3.72		3.30		4.98		3.86		4.75
	1.07		0.96	Term life		0.75		0.81		1.11		0.96		1.11
	2.74		2.62	Total, Individual Life Insurance		2.32		1.98		2.98		2.38		2.85

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

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

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

(dollar amounts in millions)


Year-to-date					2009						2010
2010		2009			3Q			4Q			1Q			2Q			3Q

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	364		298	Group life		53			41			257			23			84
	134		217	Group disability (1)		57			21			89			19			26

	498		515	Total		110			62			346			42			110


				Future Policy Benefits (2):
				Group life		2,141			2,282			2,198			2,194			2,122
				Group disability (1)		1,132			1,176			1,276			1,321			1,376

				Total		3,273			3,458			3,474			3,515			3,498


				Policyholders’ Account Balances (2):
				Group life		6,343			6,506			6,560			6,688			6,692
				Group disability (1)		172			185			171			176			175

				Total		6,515			6,691			6,731			6,864			6,867


				Separate Account Liabilities (2):
				Group life		18,083			18,408			19,038			18,851			19,232
				Group disability (1)		—			—			—			—			—

				Total		18,083			18,408			19,038			18,851			19,232


				Group Life Insurance:
	2,777		2,724	Gross premiums, policy charges and fee income (3)		889			877			936			896			945
	2,683		2,579	Earned premiums, policy charges and fee income		873			835			841			853			989
	90.8%		88.4%	Benefits ratio		89.8	%		88.6	%		91.7	%		92.2	%		89.0	%
	8.8%		8.9%	Administrative operating expense ratio		9.1	%		9.4	%		8.8	%		9.3	%		8.5	%
				Persistency ratio		94.7	%		94.3	%		93.0	%		92.5	%		92.2	%

				Group Disability Insurance (1):
	850		871	Gross premiums, policy charges and fee income (3)		303			274			285			278			287
	837		852	Earned premiums, policy charges and fee income		291			269			281			272			284
	93.1%		88.5%	Benefits ratio		93.5	%		90.3	%		86.5	%		93.0	%		99.7	%
	22.0%		17.8%	Administrative operating expense ratio		17.5	%		20.1	%		21.4	%		23.4	%		21.3	%
				Persistency ratio		92.3	%		90.9	%		95.7	%		94.6	%		92.9	%

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

(2)	As of end of period.

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

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

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

GROUP INSURANCE

(in millions)


Year-to-date							2009						2010
2010			2009				3Q			4Q			1Q			2Q			3Q


						DEFERRED POLICY ACQUISITION COSTS
						INDIVIDUAL ANNUITIES:
	2,449			2,329		Beginning balance		1,943			2,111			2,449			2,532			2,150
	860			656		Capitalization		327			297			253			299			308
	(185	)		(144	)	Amortization - operating results		(72	)		(99	)		(75	)		(174	)		64
	(347	)		(351	)	Amortization - realized investment gains and losses		71			112			(61	)		(428	)		142
	(177	)		(379	)	Impact of unrealized (gains) or losses on AFS securities		(158	)		28			(34	)		(79	)		(64	)

	2,600			2,111		Ending balance		2,111			2,449			2,532			2,150			2,600


						INDIVIDUAL LIFE INSURANCE:
	4,179			4,226		Beginning balance		4,142			4,150			4,179			4,178			4,032
	302			367		Capitalization		124			124			107			98			97
	(139	)		(95	)	Amortization - operating results		102			(91	)		(55	)		(151	)		67
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	(213	)		(348	)	Impact of unrealized gains on AFS securities		(218	)		(4	)		(53	)		(93	)		(67	)

	4,129			4,150		Ending balance		4,150			4,179			4,178			4,032			4,129


						GROUP INSURANCE:
	371			347		Beginning balance		352			367			371			377			383
	35			37		Capitalization		19			9			11			11			13
	(16	)		(17	)	Amortization - operating results		(4	)		(5	)		(5	)		(5	)		(6	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	390			367		Ending balance		367			371			377			383			390


						DEFERRED SALES INDUCEMENTS
						INDIVIDUAL ANNUITIES:
	1,117			1,023		Beginning balance		983			1,016			1,117			1,137			955
	322			278		Capitalization		130			113			110			110			102
	(143	)		(93	)	Amortization - operating results		(34	)		(44	)		(57	)		(81	)		(5	)
	(162	)		(100	)	Amortization - realized investment gains and losses		29			40			(33	)		(179	)		50
	(40	)		(92	)	Impact of unrealized (gains) or losses on AFS securities		(92	)		(8	)		—			(32	)		(8	)
	—			—		Other		—			—			—			—			—

	1,094			1,016		Ending balance		1,016			1,117			1,137			955			1,094

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date						%			2009						2010
2010			2009			Change			3Q			4Q			1Q			2Q			3Q

								Revenues (1):
	6,702			5,825			15%	Premiums		2,015			2,053			2,217			2,232			2,253
	298			280			6%	Policy charges and fee income		90			94			95			96			107
	1,801			1,598			13%	Net investment income		563			564			583			578			640
	304			260			17%	Asset management fees, commissions and other income		74			93			99			113			92

	9,105			7,963			14%	Total revenues		2,742			2,804			2,994			3,019			3,092


								Benefits and Expenses (1):
	5,386			4,538			19%	Insurance and annuity benefits		1,572			1,601			1,770			1,815			1,801
	412			352			17%	Interest credited to policyholders’ account balances		123			128			134			130			148
	2			3			-33%	Interest expense		1			1			1			—			1
	(1,023	)		(910	)		-12%	Deferral of acquisition costs		(302	)		(338	)		(339	)		(327	)		(357	)
	643			591			9%	Amortization of acquisition costs		175			207			215			213			215
	2,180			1,974			10%	General and administrative expenses		666			750			717			710			753

	7,600			6,548			16%	Total benefits and expenses		2,235			2,349			2,498			2,541			2,561


	1,505			1,415			6%	Adjusted operating income before income taxes		507			455			496			478			531

(1)

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

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Nine Months Ended September 30, 2010											Quarter Ended September 30, 2010
	Total International Insurance & Investments Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life			International Investments		Total International Insurance & Investments Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life			International Investments
Revenues (1):
Premiums		6,702			4,171			2,531			—		2,253			1,411			842			—
Policy charges and fee income		298			239			59			—		107			86			21			—
Net investment income		1,801			920			878			3		640			326			312			2
Asset management fees, commissions and other income		304			28			23			253		92			6			4			82

Total revenues		9,105			5,358			3,491			256		3,092			1,829			1,179			84


Benefits and Expenses (1):
Insurance and annuity benefits		5,386			3,383			2,003			—		1,801			1,150			651			—
Interest credited to policyholders’ account balances		412			159			253			—		148			59			89			—
Interest expense		2			1			1			—		1			—			1			—
Deferral of acquisition costs		(1,023	)		(665	)		(358	)		—		(357	)		(227	)		(130	)		—
Amortization of acquisition costs		643			430			213			—		215			147			68			—
General and administrative expenses		2,180			1,109			847			224		753			377			293			83

Total benefits and expenses		7,600			4,417			2,959			224		2,561			1,506			972			83


Adjusted operating income before income taxes		1,505			941			532			32		531			323			207			1


	Nine Months Ended September 30, 2009											Quarter Ended September 30, 2009
	Total International Insurance & Investments Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life			International Investments		Total International Insurance & Investments Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life			International Investments
Revenues (1):
Premiums		5,825			3,716			2,109			—		2,015			1,232			783			—
Policy charges and fee income		280			221			59			—		90			71			19			—
Net investment income		1,598			784			810			4		563			279			283			1
Asset management fees, commissions and other income		260			56			(17	)		221		74			14			(13	)		73

Total revenues		7,963			4,777			2,961			225		2,742			1,596			1,072			74


Benefits and Expenses (1):
Insurance and annuity benefits		4,538			2,888			1,650			—		1,572			970			602			—
Interest credited to policyholders’ account balances		352			137			215			—		123			49			74			—
Interest expense		3			2			1			—		1			—			1			—
Deferral of acquisition costs		(910	)		(627	)		(283	)		—		(302	)		(207	)		(95	)		—
Amortization of acquisition costs		591			399			192			—		175			114			61			—
General and administrative expenses		1,974			1,059			715			200		666			360			239			67

Total benefits and expenses		6,548			3,858			2,490			200		2,235			1,286			882			67


Adjusted operating income before income taxes		1,415			919			471			25		507			310			190			7

(1)

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

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

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INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2009				2010
2010		2009			3Q		4Q		1Q		2Q		3Q

				Japanese Yen Basis Results:
				Revenues (1):
¥	368,756	¥	354,241	Japanese insurance operations excluding Gibraltar Life	¥	114,616	¥	113,194	¥	129,732	¥	116,754	¥	122,270
	322,716		289,253	Gibraltar Life		105,163		96,669		100,702		114,809		107,205

	691,472		643,494	Total revenues, Japan, yen basis		219,779		209,863		230,434		231,563		229,475


				Benefits and Expenses (1):
	295,770		278,432	Japanese insurance operations excluding Gibraltar Life		88,816		91,149		103,872		93,723		98,175
	266,500		237,633	Gibraltar Life		84,509		82,300		84,079		96,723		85,698

	562,270		516,065	Total benefits and expenses, Japan, yen basis		173,325		173,449		187,951		190,446		183,873


				Adjusted operating income (2):
	72,986		75,809	Japanese insurance operations excluding Gibraltar Life		25,800		22,045		25,860		23,031		24,095
	56,216		51,620	Gibraltar Life		20,654		14,369		16,623		18,086		21,507

¥	129,202	¥	127,429	Total adjusted operating income, Japan, yen basis	¥	46,454	¥	36,414	¥	42,483	¥	41,117	¥	45,602


				U.S. Dollar adjusted operating income (3):
$	769	$	748	Japanese insurance operations excluding Gibraltar Life	$	254	$	226	$	270	$	240	$	259
	532		471	Gibraltar Life		190		151		157		168		207

	1,301		1,219	Total adjusted operating income, Japan, U.S. dollar basis		444		377		427		408		466
	172		171	All other countries (4)		56		76		57		51		64

$	1,473	$	1,390	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	500	$	453	$	484	$	459	$	530

(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.

(2)	Adjusted operating income on yen basis excludes impact of currency hedging.

(3)	U.S. dollar adjusted operating income includes impact of currency hedging.

(4)	Results include corporate management and development expenses incurred in the U.S. related to Japanese Insurance operations excluding Gibraltar Life.

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date					2009				2010
2010		2009			3Q		4Q		1Q		2Q		3Q

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	3,347		3,027	Japan, excluding Gibraltar Life		980		1,019		1,180		1,030		1,137
	2,590		2,168	Gibraltar Life		802		771		788		939		863
	1,063		910	All other countries		323		357		344		359		360

	7,000		6,105	Total		2,105		2,147		2,312		2,328		2,360


				Annualized new business premiums:
	499		433	Japan, excluding Gibraltar Life		138		144		184		137		178
	618		409	Gibraltar Life		149		159		163		221		234
	189		173	All other countries		67		83		64		61		64

	1,306		1,015	Total		354		386		411		419		476


				Annualized new business premiums by distribution channel:
	688		606	Life Planners		205		227		248		198		242
	392		325	Gibraltar Life Advisors (2)		111		111		107		143		142
	226		84	Banks		38		48		56		78		92

	1,306		1,015	Total		354		386		411		419		476


				Constant exchange rate basis (3):

				Net premiums, policy charges and fee income:
	3,099		2,932	Japan, excluding Gibraltar Life		938		945		1,106		974		1,019
	2,357		2,077	Gibraltar Life		771		703		720		873		764
	1,147		1,083	All other countries		365		385		366		391		390

	6,603		6,092	Total		2,074		2,033		2,192		2,238		2,173


				Annualized new business premiums:
	467		421	Japan, excluding Gibraltar Life		132		135		174		131		162
	585		406	Gibraltar Life		149		151		155		212		218
	201		202	All other countries		76		89		67		65		69

	1,253		1,029	Total		357		375		396		408		449


				Annualized new business premiums by distribution channel:
	668		623	Life Planners		208		224		241		196		231
	365		321	Gibraltar Life Advisors (2)		110		104		100		136		129
	220		85	Banks		39		47		55		76		89

	1,253		1,029	Total		357		375		396		408		449

(1)	Translated based on applicable average exchange rates for the period shown.

(2)	Includes sales through complementary distribution other than banks.

(3)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 99 per U.S. dollar; Korean won 1040 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2009						2010
	3Q			4Q			1Q			2Q			3Q

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		269			270			273			274			277
Gibraltar Life		198			198			197			196			197
All other countries		104			106			106			107			107

Total		571			574			576			577			581


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		2,400			2,425			2,462			2,484			2,515
Gibraltar Life		3,894			3,897			3,892			3,868			3,884
All other countries		1,402			1,434			1,450			1,465			1,481

Total		7,696			7,756			7,804			7,817			7,880


International life insurance policy persistency:

Excluding Gibraltar Life:
13 months		91.5	%		91.6	%		91.6	%		91.7	%		92.0	%
25 months		84.2	%		84.6	%		84.4	%		84.2	%		84.7	%

Gibraltar Life:
13 months		91.1	%		91.6	%		92.0	%		92.2	%		92.4	%
25 months		83.2	%		83.6	%		83.8	%		83.8	%		84.1	%

Number of Life Planners at end of period:
Japan		3,043			3,094			3,150			3,122			3,126
All other countries		3,441			3,515			3,499			3,483			3,482

Total life planners		6,484			6,609			6,649			6,605			6,608


Gibraltar Life Advisors		6,060			6,398			5,971			6,101			5,913

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 99 per U.S. dollar; Korean won 1040 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.

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

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2010									December 31, 2009
	Consolidated Portfolio		Closed Block Business		Financial Services Businesses					Consolidated Portfolio		Closed Block Business		Financial Services Businesses
	Consolidated Portfolio		Closed Block Business		Amount		% of Total			Consolidated Portfolio		Closed Block Business		Amount		% of Total
Fixed maturities:
Public, available for sale, at fair value		157,390		31,205		126,185		59.8	%		140,805		29,537		111,268		58.4	%
Public, held to maturity, at amortized cost		3,975		—		3,975		1.9	%		4,009		—		4,009		2.1	%
Private, available for sale, at fair value		37,772		14,757		23,015		10.9	%		32,418		12,994		19,424		10.2	%
Private, held to maturity, at amortized cost		1,258		—		1,258		0.6	%		1,111		—		1,111		0.6	%
Trading account assets supporting insurance liabilities, at fair value		17,750		—		17,750		8.4	%		16,020		—		16,020		8.4	%
Other trading account assets, at fair value		1,445		164		1,281		0.6	%		1,783		167		1,616		0.8	%
Equity securities, available for sale, at fair value		7,261		3,251		4,010		1.9	%		6,883		3,085		3,798		2.0	%
Commercial mortgage and other loans		30,475		8,458		22,017		10.4	%		29,644		8,363		21,281		11.2	%
Policy loans		10,544		5,397		5,147		2.4	%		10,146		5,418		4,728		2.5	%
Other long-term investments (1)		4,491		1,558		2,933		1.4	%		4,356		1,545		2,811		1.5	%
Short-term investments (2)		4,688		1,031		3,657		1.7	%		5,640		1,338		4,302		2.3	%

Subtotal (3)		277,049		65,821		211,228		100.0	%		252,815		62,447		190,368		100.0	%

Invested assets of other entities and operations (4)		10,346		—		10,346					7,737		—		7,737

Total investments		287,395		65,821		221,574					260,552		62,447		198,105

Fixed Maturities by Credit Quality (3):


	September 30, 2010											December 31, 2009
	Financial Services Businesses											Financial Services Businesses
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total
Public Fixed Maturities:

NAIC Rating (5)
1		103,385		9,304		1,173		111,516		85.5	%		94,368		3,767		1,845		96,290		83.5	%
2		14,487		1,264		579		15,172		11.6	%		14,682		699		790		14,591		12.7	%

Subtotal - High or Highest Quality Securities (6)		117,872		10,568		1,752		126,688		97.1	%		109,050		4,466		2,635		110,881		96.2	%

3		2,409		76		267		2,218		1.7	%		2,743		44		314		2,473		2.1	%
4		1,337		27		305		1,059		0.8	%		1,657		22		345		1,334		1.2	%
5		520		18		191		347		0.3	%		685		19		202		502		0.4	%
6		93		17		34		76		0.1	%		197		25		69		153		0.1	%

Subtotal - Other Securities		4,359		138		797		3,700		2.9	%		5,282		110		930		4,462		3.8	%

Total		122,231		10,706		2,549		130,388		100.0	%		114,332		4,576		3,565		115,343		100.0	%


Private Fixed Maturities:
NAIC Rating (5)
1		5,980		647		115		6,512		26.7	%		5,795		259		121		5,933		28.9	%
2		12,845		1,217		342		13,720		56.4	%		10,485		452		379		10,558		51.4	%

Subtotal - High or Highest Quality Securities (6)		18,825		1,864		457		20,232		83.1	%		16,280		711		500		16,491		80.3	%

3		2,270		154		67		2,357		9.7	%		2,292		52		131		2,213		10.8	%
4		1,128		26		87		1,067		4.4	%		1,193		18		118		1,093		5.3	%
5		390		11		12		389		1.6	%		482		6		36		452		2.2	%
6		263		35		9		289		1.2	%		313		24		39		298		1.4	%

Subtotal - Other Securities		4,051		226		175		4,102		16.9	%		4,280		100		324		4,056		19.7	%

Total		22,876		2,090		632		24,334		100.0	%		20,560		811		824		20,547		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)	Short-term investments have virtually no sub-prime exposure.

(3)	Excludes (i) assets of our securities brokerage, trading, banking operations and real estate and relocation services, (ii) assets of our asset management operations, including assets managed for third parties, and (iii) those assets classified as “separate account assets” on our balance sheet.

(4)	Includes invested assets of brokerage, trading and banking operations, real estate and relocation services, and asset management operations. Excludes assets of our asset management operations managed for third parties and those assets classified as “separate account assets” on our balance sheet.

(5)

Reflects equivalent ratings for investments of the international insurance operations. Includes, as of September 30, 2010 and December 31, 2009, respectively, 166 securities with amortized cost of $1,878 million (fair value $1,974 million) and 157 securities with amortized cost of $1,294 million (fair value, $1,299 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

(6)	As a result of the NAIC rating methodology for non-agency residential mortgage-backed securities, may include certain securities rated BB and below by external rating agencies as of September 30, 2010 and December 31, 2009.

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2010					December 31, 2009
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value		59,769		74.8	%		50,476		73.0	%
Public, held to maturity, at amortized cost		3,975		5.0	%		4,009		5.8	%
Private, available for sale, at fair value		3,242		4.1	%		2,692		3.9	%
Private, held to maturity, at amortized cost		1,258		1.6	%		1,111		1.6	%
Trading account assets supporting insurance liabilities, at fair value		1,376		1.7	%		1,236		1.8	%
Other trading account assets, at fair value		732		0.9	%		804		1.2	%
Equity securities, available for sale, at fair value		1,544		1.9	%		1,508		2.2	%
Commercial mortgage and other loans		4,016		5.0	%		3,675		5.3	%
Policy loans		2,011		2.5	%		1,760		2.5	%
Other long-term investments (1)		1,685		2.1	%		1,524		2.2	%
Short-term investments		290		0.4	%		313		0.5	%

Total		79,898		100.0	%		69,108		100.0	%


	September 30, 2010					December 31, 2009
	Amount		% of Total			Amount		% of Total
Financial Services Businesses excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available for sale, at fair value		66,416		50.6	%		60,792		50.1	%
Public, held to maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available for sale, at fair value		19,773		15.0	%		16,732		13.8	%
Private, held to maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		16,374		12.5	%		14,784		12.2	%
Other trading account assets, at fair value		549		0.4	%		812		0.7	%
Equity securities, available for sale, at fair value		2,466		1.9	%		2,290		1.9	%
Commercial mortgage and other loans		18,001		13.7	%		17,606		14.5	%
Policy loans		3,136		2.4	%		2,968		2.4	%
Other long-term investments (1)		1,248		0.9	%		1,287		1.1	%
Short-term investments		3,367		2.6	%		3,989		3.3	%

Total		131,330		100.0	%		121,260		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, derivatives and other miscellaneous investments.

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

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended September 30
	2010									2009
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)			Amount			Realized Gains / (Losses)			Yield (3)			Amount			Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities		4.29	%		1,501			(10	)		4.43	%		1,407			(241	)
Equity securities		6.48	%		55			3			7.40	%		62			(40	)
Commercial loans		5.85	%		250			29			5.67	%		240			(84	)
Policy loans		5.10	%		64			—			5.10	%		57			1
Short-term investments and cash equivalents		0.34	%		10			1			0.38	%		13			1
Other investments		5.05	%		51			(72	)		3.60	%		43			(32	)

Gross investment income before investment expenses		4.27	%		1,931			(49	)		4.32	%		1,822			(395	)
Investment expenses		-0.14	%		(53	)		—			-0.15	%		(52	)		—

Subtotal		4.13	%		1,878			(49	)		4.17	%		1,770			(395	)

Investment results of other entities and operations (2)					327			13						283			(22	)
Less, investment income related to adjusted operating income reconciling items					(3	)								(2	)

Total					2,202			(36	)					2,051			(417	)


	Nine Months Ended September 30
	2010									2009
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)			Amount			Realized Gains / (Losses)			Yield (3)			Amount			Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities		4.31	%		4,395			(344	)		4.55	%		4,250			(786	)
Equity securities		6.56	%		164			3			6.42	%		175			(419	)
Commercial mortgage and other loans		5.74	%		712			57			5.73	%		723			(221	)
Policy loans		4.93	%		178			—			5.11	%		165			1
Short-term investments and cash equivalents		0.30	%		27			1			0.61	%		56			1
Other investments		4.25	%		131			1,673			3.70	%		121			345

Gross investment income before investment expenses		4.27	%		5,607			1,390			4.43	%		5,490			(1,079	)
Investment expenses		-0.14	%		(153	)		—			-0.16	%		(155	)		—

Subtotal		4.13	%		5,454			1,390			4.27	%		5,335			(1,079	)

Investment results of other entities and operations (2)					933			54						833			(179	)
Less, investment income related to adjusted operating income reconciling items					1									(10	)

Total					6,388			1,444						6,158			(1,258	)

(1)

Excludes assets of our securities brokerage, securities trading, and banking operations, real estate and relocation services, commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders, assets of our asset management operations, including assets managed for third parties, and those assets classified as “separate account assets” on our balance sheet.

(2)

Includes investment income of securities brokerage, securities trading, banking operations, real estate and relocation services, asset management operations, commercial loans, and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders.

(3)

Yields are annualized, for interim periods, and are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income and assets related to commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets. Prior period’s yields are presented on a basis consistent with the current presentation.

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 30
	2010									2009
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (1)			Amount			Realized Gains / (Losses)			Yield (1)			Amount			Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities		2.83	%		445			(61	)		2.87	%		391			(145	)
Equity securities		3.33	%		13			(5	)		4.53	%		18			(45	)
Commercial loans		4.59	%		44			4			4.71	%		43			(1	)
Policy loans		3.86	%		19			—			3.74	%		16			2
Short-term investments and cash equivalents		0.19	%		1			—			0.61	%		3			—
Other investments		7.18	%		41			79			6.96	%		30			(14	)

Gross investment income before investment expenses		3.03	%		563			17			3.08	%		501			(203	)
Investment expenses		-0.15	%		(28	)		—			-0.16	%		(27	)		—

Total		2.88	%		535			17			2.92	%		474			(203	)


	Nine Months Ended September 30
	2010									2009
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (1)			Amount			Realized Gains / (Losses)			Yield (1)			Amount			Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities		2.79	%		1,268			(397	)		2.89	%		1,116			(242	)
Equity securities		2.97	%		34			(66	)		3.25	%		47			(323	)
Commercial mortgage and other loans		4.61	%		128			12			4.84	%		125			(8	)
Policy loans		3.80	%		52			—			3.81	%		45			2
Short-term investments and cash equivalents		0.26	%		3			—			0.57	%		8			—
Other investments		5.28	%		90			300			6.48	%		98			(379	)

Gross investment income before investment expenses		2.94	%		1,575			(151	)		3.08	%		1,439			(950	)
Investment expenses		-0.15	%		(82	)		—			-0.16	%		(78	)		—

Total		2.79	%		1,493			(151	)		2.92	%		1,361			(950	)

(1)

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 30
	2010									2009
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (2)			Amount			Realized Gains / (Losses)			Yield (2)			Amount			Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		5.48	%		1,056			51			5.58	%		1,016			(96	)
Equity securities		9.05	%		42			8			10.01	%		44			5
Commercial loans		6.22	%		206			25			5.93	%		197			(83	)
Policy loans		5.88	%		45			—			5.91	%		41			(1	)
Short-term investments and cash equivalents		0.37	%		9			1			0.33	%		10			1
Other investments		2.36	%		10			(151	)		1.66	%		13			(18	)

Gross investment income before investment expenses		5.13	%		1,368			(66	)		5.13	%		1,321			(192	)
Investment expenses		-0.13	%		(25	)		—			-0.14	%		(25	)		—

Total		5.00	%		1,343			(66	)		4.99	%		1,296			(192	)


	Nine Months Ended September 30
	2010									2009
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (2)			Amount			Realized Gains / (Losses)			Yield (2)			Amount			Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		5.53	%		3,127			53			5.71	%		3,134			(544	)
Equity securities		9.61	%		130			69			10.04	%		128			(96	)
Commercial mortgage and other loans		6.07	%		584			45			5.95	%		598			(213	)
Policy loans		5.63	%		126			—			5.85	%		120			(1	)
Short-term investments and cash equivalents		0.30	%		24			1			0.62	%		48			1
Other investments		2.98	%		41			1,373			1.32	%		23			724

Gross investment income before investment expenses		5.12	%		4,032			1,541			5.28	%		4,051			(129	)
Investment expenses		-0.13	%		(71	)		—			-0.16	%		(77	)		—

Total		4.99	%		3,961			1,541			5.12	%		3,974			(129	)

(1)

(2)

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Years ended December 31							2009												2010
2008			2007				1Q			2Q			3Q			4Q			1Q			2Q

						*Financial Services Businesses:*
						Pre-tax adjusted operating income (loss) by division:
	(113	)		1,884		U.S. Retirement Solutions and Investment Management Division		(105	)		627			461			323			496			130
	786			908		U.S. Individual Life and Group Insurance Division		133			243			307			210			144			120
	1,387			1,741		International Insurance and Investments Division		432			476			507			455			496			478
	(395	)		(118	)	Corporate and other operations		(201	)		(171	)		(203	)		(220	)		(205	)		(175	)

	1,665			4,415		Total pre-tax adjusted operating income		259			1,175			1,072			768			931			553
	467			1,225		Income taxes, applicable to adjusted operating income		59			309			247			211			247			132

	1,198			3,190		Financial Services Businesses after-tax adjusted operating income		200			866			825			557			684			421


						Reconciling items:
	(2,484	)		(98	)	Realized investment gains (losses), net, and related charges and adjustments		(357	)		(928	)		(377	)		(49	)		(63	)		625
	(1,734	)		—		Investment gains (losses) on trading account assets supporting insurance liabilities, net		145			686			694			76			252			79
	1,163			13		Change in experience-rated contractholder liabilities due to asset value changes		(45	)		(347	)		(458	)		(49	)		(320	)		(144	)
	(506	)		274		Divested businesses		(32	)		(24	)		25			2,162			(7	)		(7	)
	654			(354	)	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		3			14			(92	)		(2,289	)		(36	)		18

	(2,907	)		(165	)	Total reconciling items, before income taxes		(286	)		(599	)		(208	)		(149	)		(174	)		571
	(977	)		(117	)	Income taxes, not applicable to adjusted operating income		(72	)		(261	)		(392	)		38			8			176

	(1,930	)		(48	)	Total reconciling items, after income taxes		(214	)		(338	)		184			(187	)		(182	)		395

	(732	)		3,142		Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		(14	)		528			1,009			370			502			816
	(483	)		201		Equity in earnings of operating joint ventures, net of taxes and earnings from continuing operations attributable to noncontrolling interests		5			(12	)		81			1,483			36			(18	)

	(1,215	)		3,343		Income (loss) from continuing operations attributable to Prudential Financial, Inc.		(9	)		516			1,090			1,853			538			798
	36			45		Earnings from continuing operations attributable to noncontrolling interests		(11	)		17			(50	)		10			(26	)		27

	(1,179	)		3,388		Income (loss) from continuing operations (after-tax) of Financial Services Businesses		(20	)		533			1,040			1,863			512			825
	75			127		Income (loss) from discontinued operations, net of taxes, attributable to Prudential Financial, Inc.		4			22			—			(65	)		(2	)		—
	—			22		Income (loss) from discontinued operations, net of taxes, attributable to noncontrolling interests.		—			—			—			—			—			—

	(1,104	)		3,537		Net income (loss) of Financial Services Businesses		(16	)		555			1,040			1,798			510			825
	36			67		Less: Income (loss) attributable to noncontrolling interests		(11	)		17			(50	)		10			(26	)		27

	(1,140	)		3,470		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		(5	)		538			1,090			1,788			536			798


	5.73%			14.86%		Operating Return on Average Equity (based on adjusted operating income)		4.20%			16.40%			14.44%			9.18%			10.81%			6.54%

						*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
	(1,140	)		3,470		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		(5	)		538			1,090			1,788			536			798
	23			192		Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		19			(375	)		(8	)		77			161			279

	(1,117	)		3,662		Consolidated net income attributable to Prudential Financial, Inc.		14			163			1,082			1,865			697			1,077

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Years ended December 31							2009												2010
2008			2007				1Q			2Q			3Q			4Q			1Q			2Q
						*Earnings per share of Common Stock (diluted): (1)*
	2.87			6.91		Financial Services Businesses after-tax adjusted operating income		0.49			2.00			1.78			1.20			1.46			0.91

						Reconciling items:
	(5.73	)		(0.21	)	Realized investment gains (losses), net, and related charges and adjustments		(0.84	)		(2.14	)		(0.81	)		(0.10	)		(0.13	)		1.32
	(4.00	)		—		Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.34			1.58			1.49			0.16			0.53			0.17
	2.68			0.03		Change in experience-rated contractholder liabilities due to asset value changes		(0.11	)		(0.80	)		(0.99	)		(0.10	)		(0.68	)		(0.30	)
	(1.17	)		0.59		Divested businesses		(0.08	)		(0.06	)		0.05			4.60			(0.01	)		(0.01	)
	0.01			—		Difference in earnings allocated to participating unvested share-based payment awards		—			0.01			—			(0.03	)		—			(0.01	)

	(8.21	)		0.41		Total reconciling items, before income taxes		(0.69	)		(1.41	)		(0.26	)		4.53			(0.29	)		1.17
	(2.64	)		0.08		Income taxes, not applicable to adjusted operating income		(0.20	)		(0.61	)		(0.83	)		1.81			0.01			0.38

	(5.57	)		0.33		Total reconciling items, after income taxes		(0.49	)		(0.80	)		0.57			2.72			(0.30	)		0.79

	(2.70	)		7.24		Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		—			1.20			2.35			3.92			1.16			1.70
	0.17			0.27		Income (loss) from discontinued operations, net of taxes, attributable to Prudential Financial, Inc.		0.01			0.05			—			(0.14	)		(0.01	)		—

	(2.53	)		7.51		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		0.01			1.25			2.35			3.78			1.15			1.70


	429.7			459.8		Weighted average number of outstanding Common shares (basic)		422.1			432.9			461.2			461.8			463.0			464.3
	433.6			466.2		Weighted average number of outstanding Common shares (diluted)		423.2			434.3			464.6			470.3			471.5			473.3

	55			53		Direct equity adjustments for earnings per share calculation		11			11			12			9			10			10
	—			—		Earnings related to interest, net of tax, on exchangeable surplus notes		—			—			1			4			4			5

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	7			21		Financial Services Businesses after-tax adjusted operating income		2			10			9			7			8			6
	7			21		Income from continuing operations (after-tax) of Financial Services Businesses		—			6			12			21			7			10

(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 twelve months ended December 31, 2008 as all potential common shares are anti-dilutive due to the loss from continuing operations available to holders of common stock after direct equity adjustment.

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Years ended December 31							2009												2010
2008			2007				1Q			2Q			3Q			4Q			1Q			2Q
						Revenues (1):
	11,858			10,794		Premiums		3,261			3,320			3,361			3,352			3,531			3,808
	3,123			3,122		Policy charges and fee income		734			766			693			840			860			888
	8,410			8,177		Net investment income		2,058			2,049			2,051			2,055			2,075			2,111
	2,878			4,044		Asset management fees, commissions and other income		546			660			693			747			770			931

	26,269			26,137		Total revenues		6,599			6,795			6,798			6,994			7,236			7,738


						Benefits and Expenses (1):
	12,538			10,829		Insurance and annuity benefits		3,464			2,928			3,115			3,202			3,431			4,000
	3,399			3,088		Interest credited to policyholders’ account balances		853			820			850			853			846			875
	1,134			1,186		Interest expense		247			238			229			241			251			258
	(2,302	)		(2,248	)	Deferral of acquisition costs		(578	)		(641	)		(782	)		(768	)		(717	)		(746	)
	1,553			920		Amortization of acquisition costs		441			268			163			394			352			539
	8,282			7,947		General and administrative expenses		1,913			2,007			2,151			2,304			2,142			2,259

	24,604			21,722		Total benefits and expenses		6,340			5,620			5,726			6,226			6,305			7,185


	1,665			4,415		Adjusted operating income before income taxes		259			1,175			1,072			768			931			553


						Reconciling items:
	(2,777	)		(24	)	Realized investment gains (losses), net, and related adjustments		661			(1,356	)		(406	)		(118	)		64			1,257
	293			(74	)	Related charges		(1,018	)		428			29			69			(127	)		(632	)

	(2,484	)		(98	)	Total realized investment gains (losses), net, and related charges and adjustments		(357	)		(928	)		(377	)		(49	)		(63	)		625


	(1,734	)		—		Investment gains on trading account assets supporting insurance liabilities, net		145			686			694			76			252			79
	1,163			13		Change in experience-rated contractholder liabilities due to asset value changes		(45	)		(347	)		(458	)		(49	)		(320	)		(144	)
	(506	)		274		Divested businesses		(32	)		(24	)		25			2,162			(7	)		(7	)
	654			(354	)	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		3			14			(92	)		(2,289	)		(36	)		18

	(2,907	)		(165	)	Total reconciling items, before income taxes		(286	)		(599	)		(208	)		(149	)		(174	)		571


	(1,242	)		4,250		Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		(27	)		576			864			619			757			1,124
	(510	)		1,108		Income tax expense (benefit)		(13	)		48			(145	)		249			255			308

	(732	)		3,142		Income (loss) from continuing operations before equity in earnings of operating joint ventures		(14	)		528			1,009			370			502			816

(1)

Page 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

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

(in millions)


Years ended December 31							2009												2010
2008			2007				1Q			2Q			3Q			4Q			1Q			2Q
						Revenues (1):
	654			399		Premiums		175			261			118			136			146			391
	1,287			1,452		Policy charges and fee income		249			269			313			358			398			393
	4,449			4,472		Net investment income		1,146			1,114			1,064			1,054			1,045			1,050
	2,592			3,164		Asset management fees, commissions and other income		450			531			549			644			678			798

	8,982			9,487		Total revenues		2,020			2,175			2,044			2,192			2,267			2,632


						Benefits and Expenses (1):
	2,268			1,356		Insurance and annuity benefits		642			257			210			360			335			839
	2,712			2,426		Interest credited to policyholders’ account balances		662			622			623			618			608			640
	225			333		Interest expense		25			16			14			13			22			23
	(689	)		(744	)	Deferral of acquisition costs		(149	)		(217	)		(347	)		(310	)		(269	)		(323	)
	577			308		Amortization of acquisition costs		113			(21	)		86			107			85			186
	4,002			3,924		General and administrative expenses		832			891			997			1,081			990			1,137

	9,095			7,603		Total benefits and expenses		2,125			1,548			1,583			1,869			1,771			2,502


	(113	)		1,884		Adjusted operating income (loss) before income taxes		(105	)		627			461			323			496			130

(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 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INDIVIDUAL ANNUITIES SEGMENT

(in millions)


Years ended December 31							2009												2010
2008			2007				1Q			2Q			3Q			4Q			1Q			2Q
						Revenues (1):
	64			70		Premiums		17			16			28			27			37			43
	1,107			1,280		Policy charges and fee income		200			220			265			306			345			345
	800			580		Net investment income		274			251			236			218			224			216
	466			530		Asset management fees, commissions and other income		83			104			124			146			153			164

	2,437			2,460		Total revenues		574			591			653			697			759			768


						Benefits and Expenses (1):
	947			211		Insurance and annuity benefits		304			(179	)		(85	)		49			39			298
	568			353		Interest credited to policyholders’ account balances		174			138			155			151			157			182
	58			59		Interest expense		4			3			2			4			15			15
	(597	)		(653	)	Deferral of acquisition costs		(132	)		(197	)		(327	)		(297	)		(253	)		(299	)
	532			270		Amortization of acquisition costs		103			(31	)		72			99			75			174
	1,819			1,519		General and administrative expenses		365			368			521			494			482			529

	3,327			1,759		Total benefits and expenses		818			102			338			500			515			899


	(890	)		701		Adjusted operating income (loss) before income taxes		(244	)		489			315			197			244			(131	)

(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 40

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - RETIREMENT SEGMENT

(in millions)


Years ended December 31							2009												2010
2008			2007				1Q			2Q			3Q			4Q			1Q			2Q
						Revenues (1):
	590			329		Premiums		158			245			90			109			109			348
	180			172		Policy charges and fee income		49			49			48			52			53			48
	3,564			3,676		Net investment income		861			831			815			802			797			805
	525			531		Asset management fees, commissions and other income		115			117			147			171			170			169

	4,859			4,708		Total revenues		1,183			1,242			1,100			1,134			1,129			1,370


						Benefits and Expenses (1):
	1,321			1,145		Insurance and annuity benefits		338			436			295			311			296			541
	2,144			2,073		Interest credited to policyholders’ account balances		488			484			468			467			451			458
	89			212		Interest expense		12			6			6			5			4			4
	(78	)		(75	)	Deferral of acquisition costs		(14	)		(15	)		(13	)		(6	)		(10	)		(18	)
	25			18		Amortization of acquisition costs		6			6			9			3			4			5
	813			853		General and administrative expenses		213			220			218			222			215			243

	4,314			4,226		Total benefits and expenses		1,043			1,137			983			1,002			960			1,233


	545			482		Adjusted operating income before income taxes		140			105			117			132			169			137

(1)

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

Page 41

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS

(in millions)


Years ended December 31							2009												2010
2008			2007				1Q			2Q			3Q			4Q			1Q			2Q
						Revenues (1):
	(10	)		(9	)	Premiums		(3	)		(8	)		2			(2	)		(4	)		(5	)
	(31	)		(29	)	Policy charges and fee income		(7	)		(6	)		(7	)		(19	)		(8	)		(7	)
	579			759		Net investment income		30			79			63			69			72			94
	(243	)		(178	)	Asset management fees, commissions and other income		(66	)		(60	)		(58	)		(72	)		(83	)		(62	)

	295			543		Total revenues		(46	)		5			—			(24	)		(23	)		20


						Benefits and Expenses (1):
	195			39		Insurance and annuity benefits		45			(16	)		7			7			3			38
	(192	)		(126	)	Interest credited to policyholders’ account balances		(47	)		(31	)		(22	)		(21	)		(22	)		(19	)
	686			661		Interest expense		170			174			172			186			193			198
	46			51		Deferral of acquisition costs		5			11			10			13			9			13
	(49	)		(47	)	Amortization of acquisition costs		(10	)		1			—			(16	)		(8	)		(16	)
	4			83		General and administrative expenses		(8	)		37			36			27			7			(19	)

	690			661		Total benefits and expenses		155			176			203			196			182			195


	(395	)		(118	)	Adjusted operating loss before income taxes		(201	)		(171	)		(203	)		(220	)		(205	)		(175	)

(1)

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

Page 42

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

RECLASSIFIED SUPPLEMENTAL INFORMATION - INDIVIDUAL ANNUITIES

(dollar amounts in millions, unless otherwise noted)


Year Ended December 31							2009												2010
2008			2007				1Q			2Q			3Q			4Q			1Q			2Q

						Adjusted operating income:
	(1,077	)		722		As originally reported		17			432			166			88			260			286


						Reclassification for product guarantees accounted for as embedded derivatives, related hedging activities, and capital hedge program:

	(2,932	)		(140	)	Decrease (increase) in fair value of embedded derivative liabilities		183			1,697			72			987			230			(2,083	)
	2,494			183		Change in fair value of hedge positions		(84	)		(1,511	)		(166	)		(954	)		(114	)		2,031

	(438	)		43		Subtotal		99			186			(94	)		33			116			(52	)
	—			—		Decrease (increase) in the embedded derivative liabilities resulting from the impact of the market-perceived risk of our own non-performance		1,219			(660	)		5			(252	)		52			1,012

	(438	)		43		Net benefit (charge) from mark-to-market of embedded derivatives and related hedge positions		1,318			(474	)		(89	)		(219	)		168			960
	251			(22	)	Related benefit / (charge) to amortization of DAC and other costs		(1,057	)		419			80			148			(98	)		(598	)

	(187	)		21		Net impact - living benefit guarantees and hedging activities		261			(55	)		(9	)		(71	)		70			362
	—			—		Impact of capital hedge program		—			(2	)		(140	)		(38	)		(54	)		55

	(187	)		21		Total reclassification from adjusted operating income to realized investment gains / losses, net, and related charges and adjustments		261			(57	)		(149	)		(109	)		16			417


	(890	)		701		As currently reported		(244	)		489			315			197			244			(131	)

Page 43

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

RECLASSIFIED DEFERRED POLICY ACQUISITION COSTS & DEFERRED SALES INDUCEMENTS - INDIVIDUAL ANNUITIES

(in millions)


Year-to-date							2009												2010
2008			2007				1Q			2Q			3Q			4Q			1Q			2Q

						DEFERRED POLICY ACQUISITION COSTS
						INDIVIDUAL ANNUITIES:
	1,976			1,613		Beginning balance		2,329			1,580			1,943			2,111			2,449			2,532
	597			653		Capitalization		132			197			327			297			253			299
	(532	)		(270	)	Amortization - operating results		(103	)		31			(72	)		(99	)		(75	)		(174	)
	163			(8	)	Amortization - realized investment gains and losses		(757	)		335			71			112			(61	)		(428	)
	125			1		Impact of unrealized losses on AFS securities		(21	)		(200	)		(158	)		28			(34	)		(79	)
	—			(13	)	Other (1)		—			—			—			—			—			—

	2,329			1,976		Ending balance		1,580			1,943			2,111			2,449			2,532			2,150


						DEFERRED SALES INDUCEMENTS
						INDIVIDUAL ANNUITIES:
	798			563		Beginning balance		1,023			807			983			1,016			1,117			1,137
	334			325		Capitalization		66			82			130			113			110			110
	(152	)		(79	)	Amortization - operating results		(48	)		(11	)		(34	)		(44	)		(57	)		(81	)
	43			(6	)	Amortization - realized investment gains and losses		(234	)		105			29			40			(33	)		(179	)
	—			—		Impact of unrealized losses on AFS securities		—			—			(92	)		(8	)		—			(32	)
	—			(5	)	Other (1)		—			—			—			—			—			—

	1,023			798		Ending balance		807			983			1,016			1,117			1,137			955

(1)	Reflects the impact of adoption of guidance on accounting for deferred acquisition costs in connection with modifications or exchanges of insurance contracts, on January 1, 2007.

Page 44

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF THIRD QUARTER 2009 AND 2010 ACTUARIAL UPDATES

(in millions)


	Insurance and Annuity Benefits						Interest Credited to Policyholders’ Account Balances						Amortization of Deferred Policy Acquisition Costs						General and Administrative Expenses						Pre-Tax Adjusted Operating Income
	Third Quarter 2009			Third Quarter 2010			Third Quarter 2009			Third Quarter 2010			Third Quarter 2009			Third Quarter 2010			Third Quarter 2009			Third Quarter 2010			Third Quarter 2009		Third Quarter 2010
Actuarial Item:

Annual review of assumptions including: actual and expected fund performance, persistency, investment margins, costs associated with guaranteed benefits, and other elements of gross profits.		(157	)		(139	)		(1	)		(59	)		(44	)		(164	)		(5	)		(6	)		207		368


Reported amount		(85	)		(49	)		155			98			72			(64	)		521			526


Amount excluding impact of items indicated above		72			90			156			157			116			100			526			532

Page 45

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

LOGO

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2009 AND 20010 ACTUARIAL UPDATES

(in millions)


	Policy Charges and Fee Income (1)						Insurance and Annuity Benefits (2)					Amortization of Deferred Policy Acquisition Costs						Pre-Tax Adjusted Operating Income
	Third Quarter 2009			Third Quarter 2010			Third Quarter 2009		Third Quarter 2010			Third Quarter 2009			Third Quarter 2010			Third Quarter 2009		Third Quarter 2010
Actuarial Item:

Annual review of assumptions for mortality, persistency, premium payment pattern, and other elements of expected gross profits, and guaranteed minimum death benefits		(70	)		(101	)		10		(27	)		(135	)		(126	)		55		52


Reported amount		181			166			269		265			(102	)		(67	)


Amount excluding impact of items indicated above		251			267			259		292			33			59

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

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

Page 46

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

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

Realized investment gains (losses) within certain of our businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Adjusted operating income excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of a hedging program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged, as well as gains and losses on certain investments that are classified as other trading account assets and debt that is carried at fair value.

Adjusted operating income does not equate to “Income from continuing operations” as determined in accordance with GAAP but is the measure of profit or loss we use to evaluate segment performance. Adjusted operating income is not a substitute for income determined in accordance with GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability factors of our businesses.

2. After-tax adjusted operating income:

Adjusted operating income before taxes, as defined above, less the income tax effect applicable to adjusted operating income before taxes.

3. Annualized New Business Premiums:

Premiums from new sales that are expected to be collected over a one year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers’ Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Group disability amounts include long-term care products. Excess (unscheduled) and single premium business for the company’s domestic individual life and international insurance operations are included in annualized new business premiums based on a 10% credit.

4. Assets Under Management:

Fair market value or account value of assets which Prudential manages directly in proprietary products, such as mutual funds and variable annuities, in separate accounts, wrap-fee products and the general account, and assets invested in investment options included in the Company’s products that are managed by third party sub-managers (i.e., the non-proprietary investment options in the Company’s products).

5. Attributed Equity:

Amount of capital assigned to each of the Company’s segments for purposes of measuring segment adjusted operating income before income taxes, established at a level which management considers necessary to support the segment’s risks. Attributed equity for the Financial Services Businesses represents all of the Company’s equity that is not included in the Closed Block Business or attributable to noncontrolling interests.

6. Book value per share of Common Stock:

Equity attributed to Financial Services Businesses divided by the number of Common shares outstanding at end of period, on a diluted basis.

7. Borrowings - Capital Debt:

Borrowings that are or will be used for capital requirements at Prudential Financial, Inc as well as borrowings invested in equity or debt securities of direct or indirect subsidiaries of Prudential Financial, Inc., and subsidiary borrowings, utilized for capital requirements.

8. Borrowings - Investment Related:

Debt issued to finance specific investment assets or portfolios of investment assets, including institutional spread lending investment portfolios, real estate, and real estate related investments held in consolidated joint ventures, as well as institutional and insurance company portfolio cash flow timing differences.

9. Borrowings - Securities Business Related:

Debt issued to finance primarily the liquidity of our broker-dealers, and our capital markets and other securities business related operations including our discontinued commercial mortgage conduit related activities.

10. Borrowings - Specified Other Businesses:

Borrowings associated with consumer banking activities, the individual annuity business, real estate franchises, and relocation services.

Page 47

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

KEY DEFINITIONS AND FORMULAS

11. Client Assets:

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

12. Earned Premiums:

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

13. Earnings Per Share of Common Stock:

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

14. Full Service:

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

15. Full Service Stable Value:

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

16. General Account:

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

17. Gibraltar Life Advisors:

Insurance representatives for Gibraltar Life.

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

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

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

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

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

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

21. Individual Annuities - Net Amounts at Risk:

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

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2010

KEY DEFINITIONS AND FORMULAS

22. Insurance and Annuity Benefits:

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

23. International Life Planners:

Insurance agents in our insurance operations outside the United States, excluding Gibraltar Life Advisors. Excludes Life Planners associated with discontinued Philippine operations.

24. Non-recourse and Limited-recourse Debt:

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

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

Adjusted operating income after-tax (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average attributed equity for the Financial Services Businesses excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension/postretirement benefits.

An alternative measure to operating return on average equity (based on adjusted operating income) is return on average equity (based on income from continuing operations). Return on average equity (based on income from continuing operations) represents income from continuing operations after-tax attributable to Prudential Financial, Inc. as determined in accordance with GAAP (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average total attributed equity for the Financial Services Businesses. Return on average equity (based on income from continuing operations) is 12.23% for the nine months ended September 30, 2010, 12.33% for the nine months ended September 30, 2009, 15.52% for the three months ended September 30, 2010, 11.98% for the three months ended June 30, 2010, 8.79% for the three months ended March 31, 2010, 31.43% for the three months ended December 31, 2009 and 21.03% for the three months ended September 30, 2009.

26. Policy Persistency - Group Insurance:

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

27. Policy Persistency - International Insurance:

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

28. Prudential Agents:

Insurance agents in our insurance operations in the United States.

29. Prudential Agent productivity:

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

30. Ratio of capital debt to total capitalization:

For the purposes of this ratio, we measure “debt” as the sum of senior debt supporting capital needs and 75% of Junior Subordinated Notes supporting capital needs, (effective June 30, 2010; for periods prior to June 30, 2010, 25% of Junior Subordinated Notes are considered debt) and, for all periods, we measure “total capitalization” as the sum of senior debt supporting capital needs, 100% of Junior Subordinated Notes supporting capital needs, and attributed equity of the Financial Services Businesses excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits.

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

Third Quarter 2010

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of November 3, 2010


	A.M. Best	Standard & Poor’s	Moody’s	Fitch Ratings
The Prudential Insurance Company of America	A+	AA-	A2	A+
PRUCO Life Insurance Company	A+	AA-	A2	A+
PRUCO Life Insurance Company of New Jersey	A+	AA-	NR *	A+
Prudential Annuities Life Assurance Corporation	A+	AA-	NR	A+
Prudential Retirement Insurance and Annuity Company	A+	AA-	A2	A+
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)	NR	AA-	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	AA-	A2	NR

CREDIT RATINGS:
as of November 3, 2010

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

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

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

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

*	NR indicates not rated.

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

INVESTOR INFORMATION:

Corporate Offices:

Prudential Financial, Inc.

751 Broad Street

Newark, New Jersey 07102

Investor Information Hotline:

Dial 877-998-ROCK for additional printed information or inquiries.

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-99.1 - QUARTERLY FINANCIAL SUPPLEMENT FOR THE FINANCIAL SERVICES BUSINESSES - November 3, 2010

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