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

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8-K - FORM 8-K - PRUDENTIAL FINANCIAL INC	d8k.htm
EX-99.0 - NEWS RELEASE OF PRUDENTIAL FINANCIAL, INC. DATED MAY 4, 2011 - PRUDENTIAL FINANCIAL INC	dex990.htm

Exhibit 99.1

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

FIRST QUARTER 2011

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.

May 4, 2011

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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		7
Combining Balance Sheets by Division		8
Short-Term and Long-Term Debt		9

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION
Combined Statements of Operations		10
Combining Statements of Operations		11
Individual Annuities Sales Results and Account Values		12
Individual Annuities Account Value Activity		13
Individual Annuities Living Benefit Features		14
Individual Annuities Death Benefit Features		15
Retirement Segment Sales Results and Account Values		16
Supplementary Revenue And Assets Under Management Information for Asset Management Segment		17
Supplementary Assets Under Management and Assets Under Administration Information for Asset Management Segment		18

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION
Combined Statements of Operations		19
Combining Statements of Operations		20
Individual Life Annualized New Business Premiums, Account Value Activity, and Face Amount in Force		21
Supplementary Information for Individual Life Insurance		22
Supplementary Information for Group Insurance		23

DEFERRED POLICY ACQUISITION COSTS & DEFERRED SALES INDUCEMENTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE		24

INTERNATIONAL INSURANCE DIVISION
Combined Statements of Operations		25
Combining Statements of Operations		26
International Insurance Segment - Supplementary Income Statement Information		27
Sales Results and Supplementary Information		28-29

INVESTMENT PORTFOLIO
Investment Portfolio Composition		30
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		31
Financial Services Businesses Investment Results		32
Financial Services Businesses Investment Results - Japanese Insurance Operations		33
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations		34

RECLASSIFIED STATEMENTS OF OPERATION		35-40

RECLASSIFIED U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - SUPPLEMENTARY REVENUE INFORMATION FOR ASSET MANAGEMENT SEGMENT		41

KEY DEFINITIONS AND FORMULAS		42-44

RATINGS AND INVESTOR INFORMATION		45

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

This quarterly financial supplement reflects, for all periods presented, the classification of the results for the company’s Global Commodities business, previously reported in the International Investments segment, as discontinued operations as a result of an agreement to sell these operations. The remaining business activities in the company’s International Investments segment have been reclassified and included in the International Insurance segment. In addition, supplementary revenue information for the Asset Management segment reflect certain reclassifications to conform to current period reporting practices.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date						% Change			2010												2011
2011			2010			% Change			1Q			2Q			3Q			4Q			1Q

								*Financial Services Businesses:*
								Pre-tax adjusted operating income (loss) by division:
	618			496			25%	U.S. Retirement Solutions and Investment Management Division		496			130			855			624			618
	136			144			-6%	U.S. Individual Life and Group Insurance Division		144			120			251			200			136
	672			491			37%	International Insurance Division		491			466			540			588			672
	(272	)		(210	)		-30%	Corporate and other operations		(210	)		(180	)		(265	)		(238	)		(272	)

	1,154			921			25%	Total pre-tax adjusted operating income		921			536			1,381			1,174			1,154
	319			245			30%	Income taxes, applicable to adjusted operating income		245			127			377			325			319

	835			676			24%	Financial Services Businesses after-tax adjusted operating income		676			409			1,004			849			835


								Reconciling items:
	(360	)		(60	)		-500%	Realized investment gains (losses), net, and related charges and adjustments		(60	)		620			284			(906	)		(360	)
	(17	)		252			-107%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		252			79			388			(218	)		(17	)
	34			(320	)		111%	Change in experience-rated contractholder liabilities due to asset value changes		(320	)		(144	)		(367	)		200			34
	(1	)		(7	)		86%	Divested businesses		(7	)		(7	)		(32	)		(9	)		(1	)
	(133	)		(36	)		-269%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(36	)		18			(18	)		(62	)		(133	)

	(477	)		(171	)		-179%	Total reconciling items, before income taxes		(171	)		566			255			(995	)		(477	)
	(137	)		8			-1813%	Income taxes, not applicable to adjusted operating income		8			174			109			(307	)		(137	)

	(340	)		(179	)		-90%	Total reconciling items, after income taxes		(179	)		392			146			(688	)		(340	)

	495			497			0%	Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		497			801			1,150			161			495
	80			36			122%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		36			(18	)		16			39			80

	575			533			8%	Income from continuing operations attributable to Prudential Financial, Inc.		533			783			1,166			200			575
	25			(26	)		196%	Earnings attributable to noncontrolling interests		(26	)		27			(2	)		12			25

	600			507			18%	Income from continuing operations (after-tax) of Financial Services Businesses		507			810			1,164			212			600
	14			3			367%	Income from discontinued operations, net of taxes		3			15			1			13			14

	614			510			20%	Net income of Financial Services Businesses		510			825			1,165			225			614
	25			(26	)		196%	Less: Income (loss) attributable to noncontrolling interests		(26	)		27			(2	)		12			25

	589			536			10%	Net income of Financial Services Businesses attributable to Prudential Financial, Inc.		536			798			1,167			213			589

	11.39%			10.69%				Operating Return on Average Equity (based on adjusted operating income)		10.69%			6.36%			14.66%			11.86%			11.39%

								*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
	589			536				Net income of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		536			798			1,167			213			589
	19			161				Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		161			279			77			(36	)		19

	608			697				Consolidated net income attributable to Prudential Financial, Inc.		697			1,077			1,244			177			608

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date							2010												2011
2011			2010				1Q			2Q			3Q			4Q			1Q

						Earnings per share of Common Stock (diluted):
	1.69			1.45		Financial Services Businesses after-tax adjusted operating income		1.45			0.88			2.12			1.76			1.69

						Reconciling items:
	(0.73	)		(0.13	)	Realized investment gains (losses), net, and related charges and adjustments		(0.13	)		1.32			0.60			(1.87	)		(0.73	)
	(0.03	)		0.53		Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.53			0.17			0.82			(0.45	)		(0.03	)
	0.07			(0.68	)	Change in experience-rated contractholder liabilities due to asset value changes		(0.68	)		(0.31	)		(0.78	)		0.41			0.07
	—			(0.01	)	Divested businesses		(0.01	)		(0.01	)		(0.07	)		(0.02	)		—
	0.01			—		Difference in earnings allocated to participating unvested share-based payment awards		—			(0.01	)		—			0.01			0.01

	(0.68	)		(0.29	)	Total reconciling items, before income taxes		(0.29	)		1.16			0.57			(1.92	)		(0.68	)
	(0.16	)		0.01		Income taxes, not applicable to adjusted operating income		0.01			0.38			0.23			(0.58	)		(0.16	)

	(0.52	)		(0.30	)	Total reconciling items, after income taxes		(0.30	)		0.78			0.34			(1.34	)		(0.52	)

	1.17			1.15		Income from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		1.15			1.66			2.46			0.42			1.17
	0.03			—		Income from discontinued operations, net of taxes		—			0.04			—			0.03			0.03

	1.20			1.15		Net income of Financial Services Businesses attributable to Prudential Financial, Inc.		1.15			1.70			2.46			0.45			1.20


	484.9			463.0		Weighted average number of outstanding Common shares (basic)		463.0			464.3			464.8			475.1			484.9

	493.9			471.5		Weighted average number of outstanding Common shares (diluted) (1)		471.5			468.2			473.2			483.5			493.9

	9			10		Direct equity adjustments for earnings per share calculation		10			10			9			7			9

	4			4		Earnings related to interest, net of tax, on exchangeable surplus notes (1)		4			5			4			4			4

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	11			8		Financial Services Businesses after-tax adjusted operating income		8			6			13			11			11
	8			7		Income from continuing operations (after-tax) of Financial Services Businesses		7			10			15			7			8

(1)

In calculating diluted earnings per share under the if-converted method, the potential shares that would be issued related to the exchangeable surplus notes assuming a hypothetical exchange, weighted for the period the notes are outstanding, is added to the denominator, and interest expense, net of tax, is added to the numerator, if the overall effect is dilutive. For the three months ended June 30, 2010, the hypothetical impact of these shares was antidilutive and therefore excluded from the diluted earnings per share calculation for non-GAAP measures, as presented above. The weighted average number of outstanding common shares used in the diluted earnings per share calculation for the three months ended June 30, 2010 for GAAP measures is 473.3 million. For the three months ended December 31, 2010, the hypothetical impact of these shares was antidilutive and therefore excluded from the diluted earnings per share calculation for GAAP measures. The weighted average number of outstanding common shares used in the diluted earnings per share calculation for the three months ended December 31, 2010 for GAAP measures is 478.4 million.

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date					2010								2011
2011		2010			1Q		2Q		3Q		4Q		1Q

				*Financial Services Businesses Capitalization Data (1):*
				Senior Debt:
				Short-term debt		3,066		2,219		2,572		1,982		2,432
				Long-term debt		18,373		19,130		19,068		20,384		20,764
				Junior Subordinated Long-Term Debt		1,518		1,519		1,519		1,519		1,519

				Attributed Equity:
				Including accumulated other comprehensive income		25,721		28,233		32,007		31,032		31,300
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		25,961		26,758		28,507		29,248		30,055
				Excluding total accumulated other comprehensive income		25,318		26,193		27,418		28,100		28,785

				Total Capitalization:
				Including accumulated other comprehensive income		45,612		48,882		52,594		52,935		53,583
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		45,852		47,407		49,094		51,151		52,338
				Excluding total accumulated other comprehensive income		45,209		46,842		48,005		50,003		51,068

				Book value per share of Common Stock:
				Including accumulated other comprehensive income		54.63		59.94		67.81		63.11		63.50
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		55.14		56.81		60.40		59.48		60.98
				Excluding total accumulated other comprehensive income		53.78		55.61		58.09		57.15		58.40

				Number of diluted shares at end of period (2)		470.8		471.0		472.0		491.7		492.9

				*Common Stock Price Range (based on closing price):*
	67.32		60.50	High		60.50		65.82		59.54		59.95		67.32
	58.32		47.02	Low		47.02		53.66		49.65		50.68		58.32
	61.58		60.50	Close		60.50		53.66		54.18		58.71		61.58


				*Common Stock market capitalization (1)*		28,048		24,923		25,191		28,404		29,900

(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

First Quarter 2011

OPERATIONS HIGHLIGHTS


Year-to-date					2010								2011
2011		2010			1Q		2Q		3Q		4Q		1Q

				*Assets Under Management and Administration ($ billions) (1) (2) (3):*
				Assets Under Management :
				Managed by U.S. Retirement Solutions and Investment Management Division:
				Asset Management Segment - Investment Management & Advisory Services
				Institutional customers		193.3		203.5		222.1		235.3		246.2
				Retail customers		89.0		84.2		92.7		101.2		108.8
				General account		189.8		196.6		203.3		200.8		213.8

				Total Investment Management and Advisory Services		472.1		484.3		518.1		537.3		568.8
				Non-proprietary assets under management		126.8		118.3		136.2		149.8		161.7

				Total managed by U.S. Retirement Solutions and Investment Management Division		598.9		602.6		654.3		687.1		730.5
				Managed by U.S. Individual Life and Group Insurance Division		13.1		13.2		13.0		13.1		13.3
				Managed by International Insurance Division		81.3		74.0		82.8		83.8		114.7

				Total assets under management		693.3		689.8		750.1		784.0		858.5
				Client assets under administration		78.2		71.1		80.8		84.1		86.6

				Total assets under management and administration		771.5		760.9		830.9		868.1		945.1


				Assets managed or administered for customers outside of the United States at end of period		137.6		129.3		147.6		151.1		201.4

				*Distribution Representatives (1):*
				Prudential Agents		2,499		2,480		2,478		2,471		2,506
				International Life Planners		6,649		6,605		6,608		6,565		6,581
				Gibraltar Life Advisors (4)		5,971		6,101		5,913		6,281		13,227

	50		43	*Prudential Agent productivity ($ thousands)*		43		52		49		68		50

(1)	As of end of period.

(2)	At fair market value.

(3)	Includes assets under management relating to acquired businesses of AIG Star Life Insurance Co., LTD. and AIG Edison Life Insurance Co. (“Star/Edison”) commencing as of February 1, 2011 date of acquisition, totalling $45 billion as of that date.

(4)	Includes Life Advisors associated with acquired businesses of Star/Edison commencing as of February 1, 2011 date of acquisition, totalling 7,269 life advisors as of that date.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date						% Change			2010												2011
2011			2010			% Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	4,830			3,531			37%	Premiums		3,531			3,808			3,969			3,943			4,830
	982			860			14%	Policy charges and fee income		860			888			803			929			982
	2,305			2,073			11%	Net investment income		2,073			2,109			2,200			2,236			2,305
	1,084			724			50%	Asset management fees, commissions and other income		724			871			853			961			1,084

	9,201			7,188			28%	Total revenues		7,188			7,676			7,825			8,069			9,201


								Benefits and Expenses (1):
	4,651			3,431			36%	Insurance and annuity benefits		3,431			4,000			3,756			3,707			4,651
	829			846			-2%	Interest credited to policyholders’ account balances		846			875			820			877			829
	279			251			11%	Interest expense		251			258			267			273			279
	(908	)		(717	)		-27%	Deferral of acquisition costs		(717	)		(746	)		(780	)		(849	)		(908	)
	466			352			32%	Amortization of acquisition costs		352			539			99			378			466
	2,730			2,104			30%	General and administrative expenses		2,104			2,214			2,282			2,509			2,730

	8,047			6,267			28%	Total benefits and expenses		6,267			7,140			6,444			6,895			8,047

	1,154			921			25%	Adjusted operating income before income taxes		921			536			1,381			1,174			1,154


								Reconciling items:
	(356	)		67			-631%	Realized investment gains (losses), net, and related adjustments		67			1,252			166			(1,369	)		(356	)
	(4	)		(127	)		97%	Related charges		(127	)		(632	)		118			463			(4	)

	(360	)		(60	)		-500%	Total realized investment gains (losses), net, and related charges and adjustments		(60	)		620			284			(906	)		(360	)

	(17	)		252			-107%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		252			79			388			(218	)		(17	)
	34			(320	)		111%	Change in experience-rated contractholder liabilities due to asset value changes		(320	)		(144	)		(367	)		200			34
	(1	)		(7	)		86%	Divested businesses		(7	)		(7	)		(32	)		(9	)		(1	)
	(133	)		(36	)		-269%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(36	)		18			(18	)		(62	)		(133	)

	(477	)		(171	)		-179%	Total reconciling items, before income taxes		(171	)		566			255			(995	)		(477	)


	677			750			-10%	Income from continuing operations before income taxes and equity in earnings of operating joint ventures		750			1,102			1,636			179			677
	182			253			-28%	Income tax expense		253			301			486			18			182

	495			497			0%	Income from continuing operations before equity in earnings of operating joint ventures		497			801			1,150			161			495

(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

First Quarter 2011

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	3/31/2010		6/30/2010		9/30/2010		12/31/2010		3/31/2011

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $134,359; $134,883; $141,794; $144,248; $182,343)		136,792		140,610		151,227		149,806		186,861
Fixed maturities, held to maturity, at amortized cost (fair value $5,081; $5,209; $5,522; $5,477; $5,283)		5,016		5,023		5,233		5,226		5,102
Trading account assets supporting insurance liabilities, at fair value		16,683		16,733		17,750		17,771		18,314
Other trading account assets, at fair value		3,222		5,358		5,512		4,069		3,599
Equity securities, available for sale, at fair value (cost $3,367; $3,340; $3,547; $3,605; $5,621)		3,824		3,747		4,021		4,148		6,286
Commercial mortgage and other loans		22,557		23,097		23,466		23,324		24,259
Policy loans		4,825		4,915		5,147		5,290		5,926
Other long-term investments		4,340		4,321		4,572		4,589		6,335
Short-term investments		5,826		5,673		4,646		4,133		6,094

Total investments		203,085		209,477		221,574		218,356		262,776
Cash and cash equivalents		8,996		10,751		11,019		12,447		10,512
Accrued investment income		1,657		1,682		1,721		1,734		2,083
Deferred policy acquisition costs		13,962		13,432		14,291		15,672		16,224
Other assets		15,597		14,784		15,155		16,161		21,066
Separate account assets		182,621		179,260		194,463		207,776		218,382

Total assets		425,918		429,386		458,223		472,146		531,043


Liabilities:
Future policy benefits		74,103		76,982		82,063		82,242		102,404
Policyholders’ account balances		96,082		97,033		99,753		100,905		127,512
Securities sold under agreements to repurchase		2,969		2,683		2,628		2,557		2,599
Cash collateral for loaned securities		2,380		1,866		1,831		1,614		1,522
Income taxes		4,563		5,747		7,438		6,736		6,057
Senior short-term debt		3,066		2,219		2,572		1,982		2,432
Senior long-term debt		18,373		19,130		19,068		20,384		20,764
Junior subordinated long-term debt		1,518		1,519		1,519		1,519		1,519
Other liabilities		14,016		14,169		14,359		14,886		16,002
Separate account liabilities		182,621		179,260		194,463		207,776		218,382

Total liabilities		399,691		400,608		425,694		440,601		499,193


Attributed Equity:
Accumulated other comprehensive income		403		2,040		4,589		2,932		2,515
Other attributed equity		25,318		26,193		27,418		28,100		28,785

Total attributed equity		25,721		28,233		32,007		31,032		31,300

Noncontrolling Interest		506		545		522		513		550

Total Equity		26,227		28,778		32,529		31,545		31,850

Total liabilities and equity		425,918		429,386		458,223		472,146		531,043

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Three Months Ended March 31, 2011
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1) :
Premiums		4,830			211			1,360			3,267			(8	)
Policy charges and fee income		982			492			385			113			(8	)
Net investment income		2,305			1,044			407			765			89
Asset management fees, commissions and other income		1,084			905			79			183			(83	)

Total revenues		9,201			2,652			2,231			4,328			(10	)


Benefits and Expenses (1):
Insurance and annuity benefits		4,651			426			1,510			2,706			9
Interest credited to policyholders’ account balances		829			550			128			161			(10	)
Interest expense		279			34			45			—			200
Deferral of acquisition costs		(908	)		(398	)		(103	)		(422	)		15
Amortization of acquisition costs		466			133			93			250			(10	)
General and administrative expenses		2,730			1,289			422			961			58

Total benefits and expenses		8,047			2,034			2,095			3,656			262


Adjusted operating income (loss) before income taxes		1,154			618			136			672			(272	)


	Three Months Ended March 31, 2010
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		3,531			146			1,172			2,217			(4	)
Policy charges and fee income		860			398			375			95			(8	)
Net investment income		2,073			1,045			375			585			68
Asset management fees, commissions and other income		724			678			76			50			(80	)

Total revenues		7,188			2,267			1,998			2,947			(24	)


Benefits and Expenses (1):
Insurance and annuity benefits		3,431			335			1,323			1,770			3
Interest credited to policyholders’ account balances		846			608			126			134			(22	)
Interest expense		251			22			35			1			193
Deferral of acquisition costs		(717	)		(269	)		(118	)		(339	)		9
Amortization of acquisition costs		352			85			60			215			(8	)
General and administrative expenses		2,104			990			428			675			11

Total benefits and expenses		6,267			1,771			1,854			2,456			186


Adjusted operating income (loss) before income taxes		921			496			144			491			(210	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of March 31, 2011
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		262,776		88,214		33,029		133,093		8,440
Deferred policy acquisition costs		16,224		3,942		4,671		7,768		(157	)
Other assets		33,661		7,547		3,032		13,003		10,079
Separate account assets		218,382		182,721		37,041		786		(2,166	)

Total assets		531,043		282,424		77,773		154,650		16,196


Liabilities:
Future policy benefits		102,404		15,766		10,316		75,919		403
Policyholders’ account balances		127,512		56,552		16,085		55,637		(762	)
Debt		24,715		4,793		5,545		—		14,377
Other liabilities		26,180		8,541		3,780		8,102		5,757
Separate account liabilities		218,382		182,721		37,041		786		(2,166	)

Total liabilities		499,193		268,373		72,767		140,444		17,609


Attributed Equity:
Accumulated other comprehensive income (loss)		2,515		1,439		728		1,414		(1,066	)
Other attributed equity		28,785		11,994		4,278		12,781		(268	)

Total attributed equity		31,300		13,433		5,006		14,195		(1,334	)

Noncontrolling Interest		550		618		—		11		(79	)

Total Equity		31,850		14,051		5,006		14,206		(1,413	)


Total liabilities and equity		531,043		282,424		77,773		154,650		16,196


	As of December 31, 2010
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		218,356		88,387		32,408		88,842		8,719
Deferred policy acquisition costs		15,672		3,675		4,653		7,494		(150	)
Other assets		30,342		7,832		3,133		6,068		13,309
Separate account assets		207,776		172,759		36,427		693		(2,103	)

Total assets		472,146		272,653		76,621		103,097		19,775


Liabilities:
Future policy benefits		82,242		16,227		10,055		55,556		404
Policyholders’ account balances		100,905		57,179		15,812		28,919		(1,005	)
Debt		23,885		4,429		5,644		—		13,812
Other liabilities		25,793		8,260		3,590		7,277		6,666
Separate account liabilities		207,776		172,759		36,427		693		(2,103	)

Total liabilities		440,601		258,854		71,528		92,445		17,774


Attributed Equity:
Accumulated other comprehensive income (loss)		2,932		1,430		765		1,837		(1,100	)
Other attributed equity		28,100		11,786		4,328		8,808		3,178

Total attributed equity		31,032		13,216		5,093		10,645		2,078

Noncontrolling Interest		513		583		—		7		(77	)

Total Equity		31,545		13,799		5,093		10,652		2,001


Total liabilities and equity		472,146		272,653		76,621		103,097		19,775

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of March 31, 2011									As of December 31, 2010
	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		347		8,451		1,519		10,317			371		6,873		1,519		8,763
Investment related		1,214		7,694		—		8,908			803		8,766		—		9,569
Securities business related		591		1,334		—		1,925			691		1,539		—		2,230
Specified other businesses		280		3,285		—		3,565			117		3,206		—		3,323
Limited recourse and non-recourse borrowing		—		—		—		—			—		—		—		—

Total debt - Financial Services Businesses		2,432		20,764		1,519		24,715			1,982		20,384		1,519		23,885

Ratio of long-term and short-term capital debt to capitalization (1)								24.6	%								22.1	%

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 March 31, 2011									As of December 31, 2010
	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		8,738		1,040		539		10,317			7,648		1,064		51		8,763
Investment related		4,714		834		3,360		8,908			5,686		654		3,229		9,569
Securities business related		1,476		443		6		1,925			1,673		552		5		2,230
Specified other businesses		2,602		963		—		3,565			2,603		720		—		3,323
Limited recourse and non-recourse borrowing		—		—		—		—			—		—		—		—

Total debt - Financial Services Businesses		17,530		3,280		3,905		24,715			17,610		2,990		3,285		23,885

(1)	For the purposes of calculating the ratio of capital debt to capitalization, Junior Subordinated Notes are considered 25% equity and 75% debt.

(2)	Includes Prudential Funding, LLC.

(3)	Capital debt at Prudential Insurance Co. of America includes $940 million of Surplus Notes for March 31, 2011 and $942 million for December 31, 2010.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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

(in millions)


Year-to-date						% Change			2010												2011
2011			2010			% Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	211			146			45%	Premiums		146			391			400			295			211
	492			398			24%	Policy charges and fee income		398			393			415			456			492
	1,044			1,045			0%	Net investment income		1,045			1,050			1,066			1,076			1,044
	905			678			33%	Asset management fees, commissions and other income		678			798			795			864			905

	2,652			2,267			17%	Total revenues		2,267			2,632			2,676			2,691			2,652


								Benefits and Expenses (1):
	426			335			27%	Insurance and annuity benefits		335			839			507			458			426
	550			608			-10%	Interest credited to policyholders’ account balances		608			640			558			609			550
	34			22			55%	Interest expense		22			23			24			27			34
	(398	)		(269	)		-48%	Deferral of acquisition costs		(269	)		(323	)		(325	)		(373	)		(398	)
	133			85			56%	Amortization of acquisition costs		85			186			(52	)		86			133
	1,289			990			30%	General and administrative expenses		990			1,137			1,109			1,260			1,289

	2,034			1,771			15%	Total benefits and expenses		1,771			2,502			1,821			2,067			2,034

	618			496			25%	Adjusted operating income before income taxes		496			130			855			624			618

(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 10

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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

(in millions)


	Three Months Ended March 31, 2011
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		211			39			172			—
Policy charges and fee income		492			443			49			—
Net investment income		1,044			201			805			38
Asset management fees, commissions and other income		905			215			180			510

Total revenues		2,652			898			1,206			548


Benefits and Expenses (1):
Insurance and annuity benefits		426			60			366			—
Interest credited to policyholders’ account balances		550			136			414			—
Interest expense		34			27			4			3
Deferral of acquisition costs		(398	)		(379	)		(12	)		(7	)
Amortization of acquisition costs		133			99			28			6
General and administrative expenses (2)		1,289			663			234			392

Total benefits and expenses		2,034			606			1,034			394

Adjusted operating income before income taxes		618			292			172			154


	Three Months Ended March 31, 2010
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		146			37			109			—
Policy charges and fee income		398			345			53			—
Net investment income		1,045			224			797			24
Asset management fees, commissions and other income		678			153			170			355

Total revenues		2,267			759			1,129			379


Benefits and Expenses (1):
Insurance and annuity benefits		335			39			296			—
Interest credited to policyholders’ account balances		608			157			451			—
Interest expense		22			15			4			3
Deferral of acquisition costs		(269	)		(253	)		(10	)		(6	)
Amortization of acquisition costs		85			75			4			6
General and administrative expenses (2)		990			482			215			293

Total benefits and expenses		1,771			515			960			296

Adjusted operating income before income taxes		496			244			169			83

(1)

(2)	General and administrative expenses for Individual Annuities include $2 million for the three months ended March 31, 2011 and $3 million for the three months ended March 31, 2010, for the amortization, net of interest, of value of business acquired (VOBA).

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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

(in millions)


Year-to-date							2010												2011
2011			2010				1Q			2Q			3Q			4Q			1Q

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	102,348			80,519		Beginning total account value		80,519			85,379			83,593			93,375			102,348
	6,815			4,867		Sales		4,867			5,308			5,368			6,108			6,815
	(1,967	)		(1,670	)	Surrenders and withdrawals		(1,670	)		(1,714	)		(1,660	)		(1,879	)		(1,967	)

	4,848			3,197		Net sales		3,197			3,594			3,708			4,229			4,848
	(254	)		(266	)	Benefit payments		(266	)		(203	)		(260	)		(252	)		(254	)

	4,594			2,931		Net flows		2,931			3,391			3,448			3,977			4,594
	3,552			2,288		Change in market value, interest credited, and other (1)		2,288			(4,784	)		6,756			5,488			3,552
	(525	)		(359	)	Policy charges		(359	)		(393	)		(422	)		(492	)		(525	)

	109,969			85,379		Ending total account value		85,379			83,593			93,375			102,348			109,969


						Fixed Annuities:
	3,837			3,452		Beginning total account value		3,452			3,739			3,766			3,828			3,837
	18			30		Sales		30			32			29			12			18
	(48	)		(48	)	Surrenders and withdrawals		(48	)		(78	)		(44	)		(45	)		(48	)

	(30	)		(18	)	Net redemptions		(18	)		(46	)		(15	)		(33	)		(30	)
	(67	)		(57	)	Benefit payments		(57	)		(80	)		(62	)		(68	)		(67	)

	(97	)		(75	)	Net flows		(75	)		(126	)		(77	)		(101	)		(97	)
	102			363		Interest credited and other (1)		363			153			139			111			102
	(1	)		(1	)	Policy charges		(1	)		—			—			(1	)		(1	)

	3,841			3,739		Ending total account value		3,739			3,766			3,828			3,837			3,841


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (2):
	997			623		Insurance Agents		623			713			694			817			997
	1,414			1,097		Wirehouses		1,097			1,114			1,101			1,300			1,414
	3,339			2,460		Independent Financial Planners		2,460			2,653			2,618			2,880			3,339
	1,083			717		Bank Distribution		717			860			984			1,123			1,083

	6,833			4,897		Total		4,897			5,340			5,397			6,120			6,833

(1)	Includes cumulative reclassifications during the first quarter of 2010 of $267 million 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.

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

LOGO

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

(in millions)


Year-to-date							2010												2011
2011			2010				1Q			2Q			3Q			4Q			1Q

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	13,223			14,606		Beginning balance		14,606			14,190			14,398			13,693			13,223
	521			604		Premiums and deposits		604			627			691			569			521
	(346	)		(364	)	Surrenders and withdrawals		(364	)		(402	)		(352	)		(362	)		(346	)

	175			240		Net sales		240			225			339			207			175
	(88	)		(95	)	Benefit payments		(95	)		(81	)		(86	)		(89	)		(88	)

	87			145		Net flows		145			144			253			118			87
	106			137		Interest credited and other		137			144			151			129			106
	(794	)		(697	)	Net transfers to separate account		(697	)		(80	)		(1,109	)		(716	)		(794	)
	(1	)		(1	)	Policy charges		(1	)		—			—			(1	)		(1	)

	12,621			14,190		Ending balance		14,190			14,398			13,693			13,223			12,621


						Account Values in Separate Account:
	92,962			69,365		Beginning balance		69,365			74,928			72,961			83,510			92,962
	6,312			4,293		Premiums and deposits		4,293			4,713			4,706			5,551			6,312
	(1,669	)		(1,354	)	Surrenders and withdrawals		(1,354	)		(1,390	)		(1,352	)		(1,562	)		(1,669	)

	4,643			2,939		Net sales		2,939			3,323			3,354			3,989			4,643
	(233	)		(228	)	Benefit payments		(228	)		(202	)		(236	)		(231	)		(233	)

	4,410			2,711		Net flows		2,711			3,121			3,118			3,758			4,410
	3,548			2,514		Change in market value, interest credited and other		2,514			(4,775	)		6,744			5,470			3,548
	794			697		Net transfers from general account		697			80			1,109			716			794
	(525	)		(359	)	Policy charges		(359	)		(393	)		(422	)		(492	)		(525	)

	101,189			74,928		Ending balance		74,928			72,961			83,510			92,962			101,189

(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 13

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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

(in millions)


	2010								2011
	1Q		2Q		3Q		4Q		1Q

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

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		9,906		9,408		9,687		9,873		9,935
Guaranteed minimum withdrawal benefits		1,402		1,250		1,302		1,315		1,296
Guaranteed minimum income benefits		4,693		4,181		4,416		4,532		4,480
Guaranteed minimum withdrawal & income benefits		41,511		43,395		51,457		59,351		66,857

Total		57,512		58,234		66,862		75,071		82,568


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		39,786		42,166		49,721		57,336		64,786
Account Values without Auto-Rebalancing Feature		17,726		16,068		17,141		17,735		17,782

Total		57,512		58,234		66,862		75,071		82,568


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		1,104		2,200		1,473		1,217		1,227
Net Amount at Risk without Auto-Rebalancing Feature		2,479		3,384		2,406		1,825		1,574

Total		3,583		5,584		3,879		3,042		2,801

(1)	At end of period.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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

(in millions)


	2010								2011
	1Q		2Q		3Q		4Q		1Q

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		55,441		55,452		62,940		69,982		76,405
Net amount at risk		2,160		3,136		1,666		1,132		929
Minimum return, anniversary contract value, or maximum contract value:
Account value		26,546		25,069		27,236		29,047		30,216
Net amount at risk		5,345		6,758		5,254		4,327		3,871

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		39,786		42,166		49,721		57,336		64,786
Account Values without Auto-Rebalancing Feature		42,201		38,355		40,455		41,693		41,835

Total		81,987		80,521		90,176		99,029		106,621


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		719		1,342		672		592		557
Net Amount at Risk without Auto-Rebalancing Feature		6,786		8,552		6,248		4,867		4,243

Total		7,505		9,894		6,920		5,459		4,800

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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

(in millions)


Year-to-date							2010												2011
2011			2010				1Q			2Q			3Q			4Q			1Q

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	141,313			126,345		Beginning total account value		126,345			131,147			125,176			135,248			141,313
	4,848			5,605		Deposits and sales		5,605			4,037			5,255			4,369			4,848
	(4,927	)		(4,500	)	Withdrawals and benefits		(4,500	)		(3,751	)		(3,167	)		(5,386	)		(4,927	)
	4,743			3,697		Change in market value, interest credited and interest income		3,697			(6,257	)		7,984			7,082			4,743

	145,977			131,147		Ending total account value		131,147			125,176			135,248			141,313			145,977


	(79	)		1,105		Net additions (withdrawals)		1,105			286			2,088			(1,017	)		(79	)


						Stable value account values included above		37,138			37,909			39,022			39,142			39,062

						Institutional Investment Products:
	64,183			51,908		Beginning total account value		51,908			52,768			55,965			59,062			64,183
	5,785			1,876		Additions		1,876			3,692			3,076			6,654			5,785
	(1,128	)		(2,139	)	Withdrawals and benefits (1)		(2,139	)		(2,002	)		(1,640	)		(1,177	)		(1,128	)
	482			799		Change in market value, interest credited and interest income		799			1,448			1,298			(175	)		482
	(430	)		324		Other (2)		324			59			363			(181	)		(430	)

	68,892			52,768		Ending total account value		52,768			55,965			59,062			64,183			68,892


	4,657			(263	)	Net additions (withdrawals)		(263	)		1,690			1,436			5,477			4,657

(1)

Includes $(411) million, $(34) million, $(240) million, $(67) million and $(34) million for the three months ended March 31, 2010, June 30, 2010, September 30, 2010, December 31, 2010 and March 31, 2011, 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.

(2)

“Other” activity includes transfers to the Asset Management segment of $(43) million, $(3) million, $(118) million and $(402) million for the three months ended March 31, 2010, June 30, 2010, December 31, 2010 and March 31, 2011, respectively. “Other” activity also includes $411 million, $34 million, $240 million, $67 million and $34 million for the three months ended March 31, 2010, June 30, 2010, September 30, 2010, December 31, 2010 and March 31, 2011 respectively, related to transfers discussed above in note 1. The remainder of “Other” activity primarily represents changes in asset balances for externally managed accounts.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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				%			2010								2011
2011		2010		Change			1Q		2Q		3Q		4Q		1Q

						Analysis of revenues by type:
	356		304		17%	Asset management fees		304		311		320		338		356
	57		11		418%	Incentive, transaction, principal investing and commercial mortgage revenues (1)		11		69		62		68		57
	135		64		111%	Service, distribution and other revenues (1)		64		114		111		116		135

	548		379		45%	Total Asset Management segment revenues		379		494		493		522		548


						Analysis of asset management fees by source:
	174		152		14%	Institutional customers		152		152		159		163		174
	104		81		28%	Retail customers		81		87		87		98		104
	78		71		10%	General account		71		72		74		77		78

	356		304		17%	Total asset management fees		304		311		320		338		356


Supplementary Assets Under Management Information (in billions):
	March 31, 2011
	Equity		Fixed Income		Real Estate		Total
Institutional customers		52.6		168.5		25.1		246.2
Retail customers		79.3		27.9		1.6		108.8
General account		4.4		208.4		1.0		213.8

Total		136.3		404.8		27.7		568.8


	March 31, 2010
	Equity		Fixed Income		Real Estate		Total
Institutional customers		48.8		124.2		20.3		193.3
Retail customers		62.0		25.6		1.4		89.0
General account		3.9		185.1		0.8		189.8

Total		114.7		334.9		22.5		472.1

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

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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

(in billions)


Year-to-date							2010												2011
2011			2010				1Q			2Q			3Q			4Q			1Q

						Institutional Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	197.6			152.1		Beginning assets under management		152.1			157.1			167.3			184.1			197.6
	12.4			7.7		Additions		7.7			15.2			11.0			16.6			12.4
	(6.5	)		(5.7	)	Withdrawals		(5.7	)		(4.3	)		(5.2	)		(6.7	)		(6.5	)
	5.4			3.6		Change in market value		3.6			(0.7	)		11.0			3.0			5.4
	(0.1	)		(0.6	)	Net money market flows		(0.6	)		—			—			0.1			(0.1	)
	0.4			—		Other (1)		—			—			—			0.5			0.4

	209.2			157.1		Ending assets under management		157.1			167.3			184.1			197.6			209.2
	37.0			36.2		Affiliated institutional assets under management		36.2			36.2			38.0			37.7			37.0

	246.2			193.3		Total assets managed for institutional customers at end of period		193.3			203.5			222.1			235.3			246.2


	5.9			2.0		Net institutional additions, excluding money market activity		2.0			10.9			5.8			9.9			5.9


						Retail Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	61.6			51.1		Beginning assets under management		51.1			53.5			49.1			55.5			61.6
	6.1			4.8		Additions		4.8			6.8			4.1			5.3			6.1
	(4.1	)		(3.7	)	Withdrawals		(3.7	)		(3.9	)		(2.9	)		(4.1	)		(4.1	)
	3.0			1.5		Change in market value		1.5			(4.9	)		5.2			4.9			3.0
	—			(0.2	)	Net money market flows		(0.2	)		(2.4	)		—			—			—
	(0.4	)		—		Other (2)		—			—			—			—			(0.4	)

	66.2			53.5		Ending assets under management		53.5			49.1			55.5			61.6			66.2
	42.6			35.5		Affiliated retail assets under management		35.5			35.1			37.2			39.6			42.6

	108.8			89.0		Total assets managed for retail customers at end of period		89.0			84.2			92.7			101.2			108.8


	2.0			1.1		Net retail additions, excluding money market activity		1.1			2.9			1.2			1.2			2.0

(1)	Other activity includes acquisition of an asset management rights contract of $0.5 billion during the fourth quarter of 2010. “Other” activity during the first quarter of 2011 represents transfers from the Retirement Segment as a result of a change in client contract form.

(2)	Amounts in 1Q11 represent a reclassification of certain fund balances to affiliated retail assets under management.

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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

(in millions)


Year-to-date						%			2010												2011
2011			2010			Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	1,360			1,172			16%	Premiums		1,172			1,190			1,320			1,239			1,360
	385			375			3%	Policy charges and fee income		375			406			300			372			385
	407			375			9%	Net investment income		375			389			399			408			407
	79			76			4%	Asset management fees, commissions and other income		76			82			85			85			79

	2,231			1,998			12%	Total revenues		1,998			2,067			2,104			2,104			2,231


								Benefits and Expenses (1):
	1,510			1,323			14%	Insurance and annuity benefits		1,323			1,308			1,428			1,319			1,510
	128			126			2%	Interest credited to policyholders’ account balances		126			124			130			131			128
	45			35			29%	Interest expense		35			37			45			45			45
	(103	)		(118	)		13%	Deferral of acquisition costs		(118	)		(109	)		(110	)		(105	)		(103	)
	93			60			55%	Amortization of acquisition costs		60			156			(61	)		88			93
	422			428			-1%	General and administrative expenses		428			431			421			426			422

	2,095			1,854			13%	Total benefits and expenses		1,854			1,947			1,853			1,904			2,095


	136			144			-6%	Adjusted operating income before income taxes		144			120			251			200			136

(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 19

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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

(in millions)


	Three Months Ended March 31, 2011
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		1,360			172			1,188
Policy charges and fee income		385			264			121
Net investment income		407			236			171
Asset management fees, commissions and other income		79			53			26

Total revenues		2,231			725			1,506


Benefits and Expenses (1):
Insurance and annuity benefits		1,510			297			1,213
Interest credited to policyholders’ account balances		128			71			57
Interest expense		45			45			—
Deferral of acquisition costs		(103	)		(89	)		(14	)
Amortization of acquisition costs		93			86			7
General and administrative expenses		422			219			203

Total benefits and expenses		2,095			629			1,466


Adjusted operating income before income taxes		136			96			40


	Three Months Ended March 31, 2010
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		1,172			176			996
Policy charges and fee income		375			249			126
Net investment income		375			213			162
Asset management fees, commissions and other income		76			49			27

Total revenues		1,998			687			1,311


Benefits and Expenses (1):
Insurance and annuity benefits		1,323			309			1,014
Interest credited to policyholders’ account balances		126			69			57
Interest expense		35			35			—
Deferral of acquisition costs		(118	)		(107	)		(11	)
Amortization of acquisition costs		60			55			5
General and administrative expenses		428			235			193

Total benefits and expenses		1,854			596			1,258


Adjusted operating income before income taxes		144			91			53

(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

First Quarter 2011

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							2010												2011
2011			2010				1Q			2Q			3Q			4Q			1Q

						ANNUALIZED NEW BUSINESS PREMIUMS (1):

	7			5		Variable life		5			5			6			7			7
	23			20		Universal life		20			17			20			20			23
	35			43		Term life		43			39			38			40			35

	65			68		Total		68			61			64			67			65


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	20			20		Prudential Agents		20			22			20			22			20
	45			48		Third party distribution		48			39			44			45			45

	65			68		Total		68			61			64			67			65


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2):*
	8,767			8,081		Beginning balance		8,081			8,228			8,305			8,548			8,767
	402			382		Premiums and deposits		382			369			389			367			402
	(180	)		(184	)	Surrenders and withdrawals		(184	)		(205	)		(208	)		(198	)		(180	)

	222			198		Net sales		198			164			181			169			222
	(51	)		(64	)	Benefit payments		(64	)		(40	)		(41	)		(52	)		(51	)

	170			134		Net flows		134			124			140			117			170
	63			48		Interest credited and other		48			(29	)		139			133			63
	61			58		Net transfers from separate account		58			74			57			62			61
	(92	)		(93	)	Policy charges		(93	)		(92	)		(93	)		(93	)		(92	)

	8,968			8,228		Ending balance		8,228			8,305			8,548			8,767			8,968


						*Separate Account Liabilities:*
	17,156			15,692		Beginning balance		15,692			16,155			14,861			16,079			17,156
	220			235		Premiums and deposits		235			234			319			243			220
	(161	)		(142	)	Surrenders and withdrawals		(142	)		(146	)		(162	)		(145	)		(161	)

	59			93		Net sales		93			88			157			98			59
	(13	)		(8	)	Benefit payments		(8	)		(8	)		(6	)		(11	)		(13	)

	47			85		Net flows		85			80			151			87			47
	777			609		Change in market value, interest credited and other		609			(1,127	)		1,298			1,222			777
	(61	)		(58	)	Net transfers to general account		(58	)		(74	)		(57	)		(62	)		(61	)
	(170	)		(173	)	Policy charges		(173	)		(173	)		(174	)		(169	)		(170	)

	17,749			16,155		Ending balance		16,155			14,861			16,079			17,157			17,749


						FACE AMOUNT IN FORCE (3):

						Variable life		121,090			118,804			118,274			118,078			117,538
						Universal life		35,622			36,082			36,691			37,481			38,190
						Term life		440,915			447,408			452,133			457,014			460,683

						Total		597,627			602,294			607,098			612,573			616,411

(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 21

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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

(dollar amounts in millions)


Year-to-date					2010								2011
2011		2010			1Q		2Q		3Q		4Q		1Q

				Individual Life Insurance:

				Policy Surrender Experience:
	189		170	Cash value of surrenders		170		172		183		172		189
	3.1%		3.0%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		3.0%		3.1%		3.3%		2.9%		3.1%

				Death benefits per $1,000 of in force (1):
	5.15		4.98	Variable and universal life		4.98		3.86		4.75		3.89		5.15
	1.12		1.11	Term life		1.11		0.96		1.11		1.06		1.12
	3.05		2.98	Total, Individual Life Insurance		2.98		2.38		2.85		2.45		3.05

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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

(dollar amounts in millions)


Year-to-date					2010												2011
2011		2010			1Q			2Q			3Q			4Q			1Q

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	392		257	Group life		257			23			84			82			392
	108		89	Group disability (1)		89			19			26			27			108

	500		346	Total		346			42			110			109			500


				Future Policy Benefits (2):
				Group life		2,198			2,194			2,122			2,262			2,233
				Group disability (1)		1,276			1,321			1,376			1,453			1,560

				Total		3,474			3,515			3,498			3,715			3,793


				Policyholders’ Account Balances (2):
				Group life		6,560			6,688			6,692			6,863			6,943
				Group disability (1)		171			176			175			182			174

				Total		6,731			6,864			6,867			7,045			7,117


				Separate Account Liabilities (2):
				Group life		19,038			18,851			19,232			19,271			19,292
				Group disability (1)		—			—			—			—			—

				Total		19,038			18,851			19,232			19,271			19,292


				Group Life Insurance:
	1,066		936	Gross premiums, policy charges and fee income (3)		936			896			945			944			1,066
	1,010		841	Earned premiums, policy charges and fee income		841			853			989			856			1,010
	92.3%		91.7%	Benefits ratio		91.7	%		92.2	%		89.0	%		86.1	%		92.3	%
	8.1%		8.8%	Administrative operating expense ratio		8.8	%		9.3	%		8.5	%		8.8	%		8.1	%
				Persistency ratio		93.0	%		92.5	%		92.2	%		92.1	%		97.2	%

				Group Disability Insurance (1):
	301		285	Gross premiums, policy charges and fee income (3)		285			278			287			315			301
	299		281	Earned premiums, policy charges and fee income		281			272			284			309			299
	94.3%		86.5%	Benefits ratio		86.5	%		93.0	%		99.7	%		99.0	%		94.3	%
	21.6%		21.4%	Administrative operating expense ratio		21.4	%		23.4	%		21.3	%		19.4	%		21.6	%
				Persistency ratio		95.7	%		94.6	%		92.9	%		92.1	%		93.3	%

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

(2)	As of end of period.

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

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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

(in millions)


Year-to-date							2010												2011
2011			2010				1Q			2Q			3Q			4Q			1Q

						DEFERRED POLICY ACQUISITION COSTS

						INDIVIDUAL ANNUITIES:
	3,392			2,449		Beginning balance		2,449			2,532			2,150			2,600			3,392
	379			253		Capitalization		253			299			308			354			379
	(99	)		(75	)	Amortization - operating results		(75	)		(174	)		64			(75	)		(99	)
	18			(61	)	Amortization - realized investment gains and losses		(61	)		(428	)		142			362			18
	(1	)		(34	)	Impact of unrealized (gains) or losses on AFS securities		(34	)		(79	)		(64	)		151			(1	)
	(16	)		—		Other (1)		—			—			—			—			(16	)

	3,673			2,532		Ending balance		2,532			2,150			2,600			3,392			3,673


						INDIVIDUAL LIFE INSURANCE:
	4,261			4,179		Beginning balance		4,179			4,178			4,032			4,129			4,261
	89			107		Capitalization		107			98			97			94			89
	(86	)		(55	)	Amortization - operating results		(55	)		(151	)		67			(79	)		(86	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	8			(53	)	Impact of unrealized (gains) or losses on AFS securities		(53	)		(93	)		(67	)		117			8

	4,272			4,178		Ending balance		4,178			4,032			4,129			4,261			4,272


						GROUP INSURANCE:
	392			371		Beginning balance		371			377			383			390			392
	14			11		Capitalization		11			11			13			11			14
	(7	)		(5	)	Amortization - operating results		(5	)		(5	)		(6	)		(9	)		(7	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	399			377		Ending balance		377			383			390			392			399


						DEFERRED SALES INDUCEMENTS

						INDIVIDUAL ANNUITIES:
	1,348			1,117		Beginning balance		1,117			1,137			955			1,094			1,348
	121			110		Capitalization		110			110			102			109			121
	(56	)		(57	)	Amortization - operating results		(57	)		(81	)		(5	)		(54	)		(56	)
	6			(33	)	Amortization - realized investment gains and losses		(33	)		(179	)		50			143			6
	(4	)		—		Impact of unrealized (gains) or losses on AFS securities		—			(32	)		(8	)		55			(4	)
	16			—		Other (1)		—			—			—			—			16

	1,431			1,137		Ending balance		1,137			955			1,094			1,347			1,431

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

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


Year-to-date						%			2010												2011
2011			2010			Change			1Q			2Q			3Q			4Q			1Q

								Revenues (1):
	3,267			2,217			47%	Premiums		2,217			2,232			2,253			2,414			3,267
	113			95			19%	Policy charges and fee income		95			96			107			109			113
	765			585			31%	Net investment income		585			580			642			662			765
	183			50			266%	Asset management fees, commissions and other income		50			50			40			88			183

	4,328			2,947			47%	Total revenues		2,947			2,958			3,042			3,273			4,328


								Benefits and Expenses (1):
	2,706			1,770			53%	Insurance and annuity benefits		1,770			1,815			1,801			1,929			2,706
	161			134			20%	Interest credited to policyholders’ account balances		134			130			148			150			161
	—			1			-100%	Interest expense		1			—			1			1			—
	(422	)		(339	)		-24%	Deferral of acquisition costs		(339	)		(327	)		(357	)		(379	)		(422	)
	250			215			16%	Amortization of acquisition costs		215			213			215			212			250
	961			675			42%	General and administrative expenses		675			661			694			772			961

	3,656			2,456			49%	Total benefits and expenses		2,456			2,492			2,502			2,685			3,656


	672			491			37%	Adjusted operating income before income taxes		491			466			540			588			672

(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 25

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	Three Months Ended March 31, 2011
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		3,267			1,662			1,605
Policy charges and fee income		113			90			23
Net investment income		765			351			414
Asset management fees, commissions and other income		183			(1	)		184

Total revenues		4,328			2,102			2,226


Benefits and Expenses (1):
Insurance and annuity benefits		2,706			1,389			1,317
Interest credited to policyholders’ account balances		161			62			99
Interest expense		—			—			—
Deferral of acquisition costs		(422	)		(261	)		(161	)
Amortization of acquisition costs		250			157			93
General and administrative expenses		961			425			536

Total benefits and expenses		3,656			1,772			1,884

Adjusted operating income before income taxes		672			330			342


	Three Months Ended March 31, 2010
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		2,217			1,448			769
Policy charges and fee income		95			76			19
Net investment income		585			299			286
Asset management fees, commissions and other income		50			10			40

Total revenues		2,947			1,833			1,114


Benefits and Expenses (1):
Insurance and annuity benefits		1,770			1,163			607
Interest credited to policyholders’ account balances		134			53			81
Interest expense		1			1			—
Deferral of acquisition costs		(339	)		(234	)		(105	)
Amortization of acquisition costs		215			146			69
General and administrative expenses		675			377			298

Total benefits and expenses		2,456			1,506			950

Adjusted operating income before income taxes		491			327			164

(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

First Quarter 2011

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2010								2011
2011		2010			1Q		2Q		3Q		4Q		1Q

				Japanese Yen Basis Results:
				Revenues (1):
¥	138,200	¥	129,732	Japanese insurance operations excluding Gibraltar Life	¥	129,732	¥	116,754	¥	122,270	¥	121,126	¥	138,200
	171,976		100,866	Gibraltar Life and Other Operations		100,866		114,980		107,381		115,475		171,976

	310,176		230,598	Total revenues, yen basis		230,598		231,734		229,651		236,601		310,176


				Benefits and Expenses (1):
	113,597		103,872	Japanese insurance operations excluding Gibraltar Life		103,872		93,723		98,175		96,878		113,597
	154,260		84,336	Gibraltar Life and Other Operations		84,336		96,971		85,946		93,126		154,260

	267,857		188,208	Total benefits and expenses, yen basis		188,208		190,694		184,121		190,004		267,857


				Adjusted operating income (2):
	24,603		25,860	Japanese insurance operations excluding Gibraltar Life		25,860		23,031		24,095		24,248		24,603
	17,716		16,530	Gibraltar Life and Other Operations		16,530		18,009		21,435		22,349		17,716

¥	42,319	¥	42,390	Total adjusted operating income, yen basis	¥	42,390	¥	41,040	¥	45,530	¥	46,597	¥	42,319


				U.S. Dollar adjusted operating income (3):
$	281	$	270	Japanese insurance operations excluding Gibraltar Life and Other Operations	$	270	$	240	$	259	$	265	$	281
	342		164	Gibraltar Life and Other Operations		164		175		217		260		342

	623		434	Total adjusted operating income, U.S. dollar basis		434		415		476		525		623
	49		57	All other (4)		57		51		64		63		49

$	672	$	491	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	491	$	466	$	540	$	588	$	672

(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. Revenues and benefits and expenses exclude non-Japanese operations.

(2)	Adjusted operating income on yen basis excludes impact of currency hedging and non-Japanese operations.

(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 27

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date					2010								2011
2011		2010			1Q		2Q		3Q		4Q		1Q

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	1,378		1,180	Japan, excluding Gibraltar Life		1,180		1,030		1,137		1,182		1,378
	1,628		788	Gibraltar Life		788		939		863		946		1,628
	374		344	All other countries		344		359		360		395		374

	3,380		2,312	Total		2,312		2,328		2,360		2,523		3,380


				Annualized new business premiums:
	224		184	Japan, excluding Gibraltar Life		184		137		178		191		224
	373		163	Gibraltar Life		163		221		234		256		373
	83		64	All other countries		64		61		64		85		83

	680		411	Total		411		419		476		532		680


				Annualized new business premiums by distribution channel:
	307		248	Life Planners		248		198		242		276		307
	160		105	Gibraltar Life Advisors		105		137		122		123		160
	135		56	Banks		56		78		92		106		135
	78		2	Independent Agency		2		6		20		27		78

	680		411	Total		411		419		476		532		680


				Constant exchange rate basis (2):

				Net premiums, policy charges and fee income:
	1,267		1,169	Japan, excluding Gibraltar Life		1,169		1,029		1,076		1,090		1,267
	1,480		777	Gibraltar Life		777		939		828		869		1,480
	349		332	All other countries		332		357		359		375		349

	3,096		2,278	Total		2,278		2,325		2,263		2,334		3,096


				Annualized new business premiums:
	208		182	Japan, excluding Gibraltar Life		182		137		170		178		208
	347		162	Gibraltar Life		162		222		228		242		347
	78		62	All other countries		62		60		63		81		78

	633		406	Total		406		419		461		501		633


				Annualized new business premiums by distribution channel:
	286		244	Life Planners		244		197		233		259		286
	148		104	Gibraltar Life Advisors		104		138		119		114		148
	128		56	Banks		56		78		90		104		128
	71		2	Independent Agency		2		6		19		24		71

	633		406	Total		406		419		461		501		633

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

(2)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 92 per U.S. dollar; Korean won 1190 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2010												2011
	1Q			2Q			3Q			4Q			1Q

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		292			293			295			298			300
Gibraltar Life (3)		212			211			212			213			351
All other countries		97			97			99			99			101

Total		601			601			606			610			752


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		2,462			2,484			2,515			2,549			2,590
Gibraltar Life (3)		3,892			3,868			3,884			3,903			7,457
All other countries		1,450			1,465			1,481			1,504			1,522

Total		7,804			7,817			7,880			7,956			11,569


International life insurance policy persistency: (4)

Excluding Gibraltar Life:
13 months		91.6	%		91.7	%		92.0	%		92.2	%		92.1	%
25 months		84.4	%		84.2	%		84.7	%		84.5	%		84.6	%

Gibraltar Life:
13 months		92.0	%		92.2	%		92.4	%		92.4	%		92.4	%
25 months		83.8	%		83.8	%		84.1	%		84.7	%		85.3	%

Number of Life Planners at end of period:
Japan		3,150			3,122			3,126			3,122			3,150
All other countries		3,499			3,483			3,482			3,443			3,431

Total life planners		6,649			6,605			6,608			6,565			6,581


Gibraltar Life Advisors (5)		5,971			6,101			5,913			6,281			13,227

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 92 per U.S. dollar; Korean won 1190 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.

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

(3)	Includes Star/Edison business from February 1, 2011 date of acquisition, amounting to face amount of $135 billion and 3,529 million individual policies as of that date.

(4)	Excludes acquired Star/Edison business.

(5)	Includes Life Advisors associated with acquired businesses of Star/Edison commencing as of February 1, 2011 date of acquisition, totalling 7,269 life advisors as of that date.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	March 31, 2011									December 31, 2010
	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		190,904		30,296		160,608		63.0	%		155,076		30,499		124,577		59.3	%
Public, held to maturity, at amortized cost		3,812		—		3,812		1.5	%		3,940		—		3,940		1.9	%
Private, available for sale, at fair value		38,794		14,660		24,134		9.5	%		37,786		14,678		23,108		11.0	%
Private, held to maturity, at amortized cost		1,290		—		1,290		0.5	%		1,286		—		1,286		0.6	%
Trading account assets supporting insurance liabilities, at fair value		18,314		—		18,314		7.2	%		17,771		—		17,771		8.5	%
Other trading account assets, at fair value		1,388		159		1,229		0.5	%		1,376		156		1,220		0.6	%
Equity securities, available for sale, at fair value		10,097		3,824		6,273		2.5	%		7,728		3,593		4,135		2.0	%
Commercial mortgage and other loans		31,724		8,701		23,023		9.0	%		30,408		8,507		21,901		10.4	%
Policy loans		11,272		5,346		5,926		2.3	%		10,667		5,377		5,290		2.5	%
Other long-term investments (1)		6,338		1,624		4,714		1.8	%		4,570		1,582		2,988		1.4	%
Short-term investments (2)		6,618		924		5,694		2.2	%		4,862		1,164		3,698		1.8	%

Subtotal (3)		320,551		65,534		255,017		100.0	%		275,470		65,556		209,914		100.0	%

Invested assets of other entities and operations (4)		7,759		—		7,759					8,442		—		8,442

Total investments		328,310		65,534		262,776					283,912		65,556		218,356

Fixed Maturities by Credit Quality (3):


	March 31, 2011											December 31, 2010
	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		140,731		5,454		1,517		144,668		87.9	%		105,068		6,278		1,240		110,106		85.5	%
2		15,815		863		608		16,070		9.8	%		14,129		892		585		14,436		11.2	%

Subtotal - High or Highest Quality Securities		156,546		6,317		2,125		160,738		97.7	%		119,197		7,170		1,825		124,542		96.7	%

3		2,405		83		205		2,283		1.4	%		2,753		100		208		2,645		2.1	%
4		1,094		24		204		914		0.5	%		1,067		24		206		885		0.7	%
5		565		31		163		433		0.3	%		630		21		211		440		0.3	%
6		234		25		67		192		0.1	%		271		28		89		210		0.2	%

Subtotal - Other Securities		4,298		163		639		3,822		2.3	%		4,721		173		714		4,180		3.3	%

Total		160,844		6,480		2,764		164,560		100.0	%		123,918		7,343		2,539		128,722		100.0	%


Private Fixed Maturities:
NAIC Rating (5)
1		6,483		461		98		6,846		26.9	%		6,226		511		90		6,647		27.2	%
2		14,130		819		354		14,595		57.3	%		13,264		792		341		13,715		56.1	%

Subtotal - High or Highest Quality Securities		20,613		1,280		452		21,441		84.2	%		19,490		1,303		431		20,362		83.3	%

3		2,485		113		53		2,545		10.0	%		2,467		104		63		2,508		10.3	%
4		861		16		36		841		3.3	%		948		26		44		930		3.8	%
5		493		15		13		495		1.9	%		518		21		17		522		2.1	%
6		111		41		9		143		0.6	%		95		29		6		118		0.5	%

Subtotal - Other Securities		3,950		185		111		4,024		15.8	%		4,028		180		130		4,078		16.7	%

Total		24,563		1,465		563		25,465		100.0	%		23,518		1,483		561		24,440		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 March 31, 2011 and December 31, 2010, respectively, 177 securities with amortized cost of $1,588 million (fair value $1,627 million) and 177 securities with amortized cost of $1,787 million (fair value, $1,820 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	March 31, 2011					December 31, 2010
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value		95,882		77.4	%		60,115		74.9	%
Public, held to maturity, at amortized cost		3,812		3.1	%		3,940		4.9	%
Private, available for sale, at fair value		3,944		3.2	%		3,304		4.1	%
Private, held to maturity, at amortized cost		1,290		1.0	%		1,286		1.6	%
Trading account assets supporting insurance liabilities, at fair value		1,686		1.4	%		1,518		1.9	%
Other trading account assets, at fair value		785		0.6	%		702		0.9	%
Equity securities, available for sale, at fair value		3,637		2.9	%		1,612		2.0	%
Commercial mortgage and other loans		5,131		4.1	%		4,202		5.2	%
Policy loans		2,664		2.2	%		2,083		2.6	%
Other long-term investments (1)		3,161		2.5	%		1,320		1.6	%
Short-term investments		1,928		1.6	%		211		0.3	%

Total		123,920		100.0	%		80,293		100.0	%


	March 31, 2011					December 31, 2010
	Amount		% of Total			Amount		% of Total
Financial Services Businesses excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available for sale, at fair value		64,726		49.4	%		64,462		49.7	%
Public, held to maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available for sale, at fair value		20,190		15.4	%		19,804		15.3	%
Private, held to maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		16,628		12.7	%		16,253		12.5	%
Other trading account assets, at fair value		444		0.3	%		518		0.4	%
Equity securities, available for sale, at fair value		2,636		2.0	%		2,523		1.9	%
Commercial mortgage and other loans		17,892		13.6	%		17,699		13.7	%
Policy loans		3,262		2.5	%		3,207		2.5	%
Other long-term investments (1)		1,553		1.2	%		1,668		1.3	%
Short-term investments		3,766		2.9	%		3,487		2.7	%

Total		131,097		100.0	%		129,621		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 31

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Three Months Ended March 31
	2011									2010
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)(4)			Amount			Realized Gains / (Losses)			Yield (3)(4)			Amount			Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities		4.02	%		1,598			4			4.27	%		1,437			(238	)
Equity securities		5.04	%		54			3			6.31	%		53			(10	)
Commercial mortgage and other loans		5.54	%		249			10			5.60	%		230			18
Policy loans		4.69	%		64			—			4.77	%		57			—
Short-term investments and cash equivalents		0.37	%		11			—			0.26	%		8			—
Other investments		5.48	%		65			(102	)		3.77	%		40			363

Gross investment income before investment expenses		4.03	%		2,041			(85	)		4.16	%		1,825			133
Investment expenses		-0.13	%		(53	)		—			-0.14	%		(50	)		—

Subtotal		3.90	%		1,988			(85	)		4.02	%		1,775			133

Investment results of other entities and operations (2)					320			5						297			(18	)
Less, investment income related to adjusted operating income reconciling items					(3	)								1

Total					2,305			(80	)					2,073			115

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

(2)

Includes investment income of 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.

(4)	Yields are weighted for one month of income and assets related to the Star and Edison businesses.

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Three Months Ended March 31
	2011									2010
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (1)(2)			Amount			Realized Gains / (Losses)			Yield (1)(2)			Amount			Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities		2.70	%		541			(49	)		2.75	%		405			(222	)
Equity securities		2.29	%		13			—			2.76	%		11			(60	)
Commercial mortgage and other loans		4.27	%		48			5			4.56	%		42			1
Policy loans		3.40	%		19			—			3.74	%		16			—
Short-term investments and cash equivalents		0.59	%		4			—			0.33	%		1			—
Other investments (3)		6.84	%		46			(114	)		5.50	%		32			24

Gross investment income before investment expenses		2.83	%		671			(158	)		2.91	%		507			(257	)
Investment expenses		-0.11	%		(26	)		—			-0.14	%		(26	)		—

Total		2.72	%		645			(158	)		2.77	%		481			(257	)

(1)

(2)	Yields are weighted for one month of income and assets related to the Star and Edison businesses.

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

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Three Months Ended March 31
	2011								2010
	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		5.38	%		1,057			53		5.46	%		1,032			(16	)
Equity securities		8.12	%		41			3		9.36	%		42			50
Commercial mortgage and other loans		5.96	%		201			5		5.90	%		188			17
Policy loans		5.60	%		45			—		5.38	%		41			—
Short-term investments and cash equivalents		0.31	%		7			—		0.25	%		7			—
Other investments		3.75	%		19			12		1.72	%		8			339

Gross investment income before investment expenses		5.07	%		1,370			73		4.97	%		1,318			390
Investment expenses		-0.14	%		(27	)		—		-0.13	%		(24	)		—

Total		4.93	%		1,343			73		4.84	%		1,294			390

(1)

(2)

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

						*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			855			624
	786			908		U.S. Individual Life and Group Insurance Division		133			243			307			210			144			120			251			200
	1,335			1,661		International Insurance Division		430			473			507			458			491			466			540			588
	(419	)		(138	)	Corporate and other operations		(213	)		(176	)		(209	)		(226	)		(210	)		(180	)		(265	)		(238	)

	1,589			4,315		Total pre-tax adjusted operating income		245			1,167			1,066			765			921			536			1,381			1,174
	446			1,197		Income taxes, applicable to adjusted operating income		56			306			246			211			245			127			377			325

	1,143			3,118		Financial Services Businesses after-tax adjusted operating income		189			861			820			554			676			409			1,004			849


						Reconciling items:
	(2,484	)		(98	)	Realized investment gains (losses), net, and related charges and adjustments		(355	)		(929	)		(370	)		(54	)		(60	)		620			284			(906	)
	(1,734	)		—		Investment gains (losses) on trading account assets supporting insurance liabilities, net		145			686			694			76			252			79			388			(218	)
	1,163			13		Change in experience-rated contractholder liabilities due to asset value changes		(45	)		(347	)		(458	)		(49	)		(320	)		(144	)		(367	)		200
	(506	)		274		Divested businesses		(32	)		(24	)		25			2,162			(7	)		(7	)		(32	)		(9	)
	654			(354	)	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		3			14			(92	)		(2,289	)		(36	)		18			(18	)		(62	)

	(2,907	)		(165	)	Total reconciling items, before income taxes		(284	)		(600	)		(201	)		(154	)		(171	)		566			255			(995	)
	(961	)		(121	)	Income taxes, not applicable to adjusted operating income		(77	)		(260	)		(390	)		39			8			174			109			(307	)

	(1,946	)		(44	)	Total reconciling items, after income taxes		(207	)		(340	)		189			(193	)		(179	)		392			146			(688	)

	(803	)		3,074		Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		(18	)		521			1,009			361			497			801			1,150			161
	(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	)		16			39

	(1,286	)		3,275		Income (loss) from continuing operations attributable to Prudential Financial, Inc.		(13	)		509			1,090			1,844			533			783			1,166			200
	36			45		Earnings from continuing operations attributable to noncontrolling interests		(11	)		17			(50	)		10			(26	)		27			(2	)		12

	(1,250	)		3,320		Income (loss) from continuing operations (after-tax) of Financial Services Businesses		(24	)		526			1,040			1,854			507			810			1,164			212
	146			195		Income (loss) from discontinued operations, net of taxes, attributable to Prudential Financial, Inc.		8			29			—			(56	)		3			15			1			13
	—			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			1,165			225
	36			67		Less: Income (loss) attributable to noncontrolling interests		(11	)		17			(50	)		10			(26	)		27			(2	)		12

	1,140			3,470		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		(5	)		538			1,090			1,788			536			798			1,167			213

	5.48%			14.53%		Operating Return on Average Equity (based on adjusted operating income)		3.98%			16.30%			14.35%			9.13%			10.69%			6.36%			14.66%			11.86%

						*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			1,167			213
	23			192		Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		19			(375	)		(8	)		77			161			279			77			(36	)

	(1,117	)		3,662		Consolidated net income (loss) attributable to Prudential Financial, Inc.		14			163			1,082			1,865			697			1,077			1,244			177

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

						*Earnings per share of Common Stock (diluted): (1)*
	2.75			6.76		Financial Services Businesses after-tax adjusted operating income		0.47			1.98			1.77			1.19			1.45			0.88			2.12			1.76

						Reconciling items:
	(5.73	)		(0.21	)	Realized investment gains (losses), net, and related charges and adjustments		(0.84	)		(2.14	)		(0.80	)		(0.11	)		(0.13	)		1.32			0.60			(1.87	)
	(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			0.82			(0.45	)
	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	)		(0.31	)		(0.78	)		0.41
	(1.17	)		0.59		Divested businesses		(0.08	)		(0.06	)		0.05			4.60			(0.01	)		(0.01	)		(0.07	)		(0.02	)
	0.01			—		Difference in earnings allocated to participating unvested share-based payment awards		—			0.01			—			(0.03	)		—			(0.01	)		—			0.01

	(8.21	)		0.41		Total reconciling items, before income taxes		(0.69	)		(1.41	)		(0.25	)		4.52			(0.29	)		1.16			0.57			(1.92	)
	(2.59	)		0.08		Income taxes, not applicable to adjusted operating income		(0.22	)		(0.61	)		(0.83	)		1.81			0.01			0.38			0.23			(0.58	)

	5.62			0.33		Total reconciling items, after income taxes		(0.47	)		(0.80	)		0.58			2.71			(0.30	)		0.78			0.34			(1.34	)

	(2.87	)		7.09		Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		—			1.18			2.35			3.90			1.15			1.66			2.46			0.42
	0.34			0.42		Income (loss) from discontinued operations, net of taxes, attributable to Prudential Financial, Inc.		0.01			0.07			—			(0.12	)		—			0.04			—			0.03

	(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			2.46			0.45


	429.7			459.8		Weighted average number of outstanding Common shares (basic)		422.1			432.9			461.2			461.8			463.0			464.3			464.8			475.1
	433.6			466.2		Weighted average number of outstanding Common shares (diluted) (2)		423.2			434.3			464.6			470.3			471.5			468.2			473.2			483.5

	55			53		Direct equity adjustments for earnings per share calculation		11			11			12			9			10			10			9			7
	—			—		Earnings related to interest, net of tax, on exchangeable surplus notes (2)		—			—			1			4			4			5			4			4

						*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			13			11
	1			22		Income from continuing operations (after-tax) of Financial Services Businesses		—			6			12			21			7			10			15			7

(1)

Diluted share count used in the diluted earnings per share calculation for GAAP measures is equal to weighted average basic common shares for the 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.

(2)

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

						Revenues (1):
	11,858			10,794		Premiums		3,261			3,320			3,361			3,352			3,531			3,808			3,969			3,943
	3,123			3,122		Policy charges and fee income		734			766			693			840			860			888			803			929
	8,373			8,165		Net investment income		2,053			2,046			2,047			2,054			2,073			2,109			2,200			2,236
	2,613			3,782		Asset management fees, commissions and other income		498			618			651			703			724			871			853			961

	25,967			25,863		Total revenues		6,546			6,750			6,752			6,949			7,188			7,676			7,825			8,069


						Benefits and Expenses (1):
	12,538			10,829		Insurance and annuity benefits		3,464			2,928			3,115			3,202			3,431			4,000			3,756			3,707
	3,399			3,088		Interest credited to policyholders’ account balances		853			820			850			853			846			875			820			877
	1,134			1,186		Interest expense		247			238			229			241			251			258			267			273
	(2,302	)		(2,248	)	Deferral of acquisition costs		(578	)		(641	)		(782	)		(768	)		(717	)		(746	)		(780	)		(849	)
	1,553			920		Amortization of acquisition costs		441			268			163			394			352			539			99			378
	8,056			7,773		General and administrative expenses		1,874			1,970			2,111			2,262			2,104			2,214			2,282			2,509

	24,378			21,548		Total benefits and expenses		6,301			5,583			5,686			6,184			6,267			7,140			6,444			6,895


	1,589			4,315		Adjusted operating income before income taxes		245			1,167			1,066			765			921			536			1,381			1,174


						Reconciling items:
	(2,777	)		(24	)	Realized investment gains (losses), net, and related adjustments		663			(1,357	)		(399	)		(123	)		67			1,252			166			(1,369	)
	293			(74	)	Related charges		(1,018	)		428			29			69			(127	)		(632	)		118			463

	(2,484	)		(98	)	Total realized investment gains (losses), net, and related charges and adjustments		(355	)		(929	)		(370	)		(54	)		(60	)		620			284			(906	)


	(1,734	)		—		Investment gains on trading account assets supporting insurance liabilities, net		145			686			694			76			252			79			388			(218	)
	1,163			13		Change in experience-rated contractholder liabilities due to asset value changes		(45	)		(347	)		(458	)		(49	)		(320	)		(144	)		(367	)		200
	(506	)		274		Divested businesses		(32	)		(24	)		25			2,162			(7	)		(7	)		(32	)		(9	)
	654			(354	)	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		3			14			(92	)		(2,289	)		(36	)		18			(18	)		(62	)

	(2,907	)		(165	)	Total reconciling items, before income taxes		(284	)		(600	)		(201	)		(154	)		(171	)		566			255			(995	)


	(1,318	)		4,150		Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		(39	)		567			865			611			750			1,102			1,636			179
	(515	)		1,076		Income tax expense (benefit)		(21	)		46			(144	)		250			253			301			486			18

	(803	)		3,074		Income (loss) from continuing operations before equity in earnings of operating joint ventures		(18	)		521			1,009			361			497			801			1,150			161

(1)

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


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

						Revenues (1):
	6,833			6,192		Premiums		1,899			1,911			2,015			2,053			2,217			2,232			2,253			2,414
	342			293		Policy charges and fee income		99			91			90			94			95			96			107			109
	1,969			1,623		Net investment income		531			509			565			567			585			580			642			662
	(157	)		323		Asset management fees, commissions and other income		39			53			30			46			50			50			40			88

	8,987			8,431		Total revenues		2,568			2,564			2,700			2,760			2,947			2,958			3,042			3,273


						Benefits and Expenses (1):
	5,377			4,907		Insurance and annuity benefits		1,501			1,465			1,572			1,601			1,770			1,815			1,801			1,929
	416			330		Interest credited to policyholders’ account balances		119			110			123			128			134			130			148			150
	8			19		Interest expense		1			1			1			1			1			—			1			1
	(1,173	)		(1,057	)	Deferral of acquisition costs		(309	)		(299	)		(302	)		(338	)		(339	)		(327	)		(357	)		(379	)
	638			486		Amortization of acquisition costs		202			214			175			207			215			213			215			212
	2,386			2,085		General and administrative expenses		624			600			624			703			675			661			694			772

	7,652			6,770		Total benefits and expenses		2,138			2,091			2,193			2,302			2,456			2,492			2,502			2,685


	1,335			1,661		Adjusted operating income before income taxes		430			473			507			458			491			466			540			588

(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 38

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - GIBRALTAR LIFE AND OTHER OPERATIONS

(in millions)


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

						Revenues (1):
	2,123			1,916		Premiums		614			712			783			751			769			920			842			923
	71			63		Policy charges and fee income		21			19			19			20			19			19			21			23
	1,007			824		Net investment income		277			258			286			282			286			285			316			326
	(236	)		214		Asset management fees, commissions and other income		14			36			16			41			40			38			34			93

	2,965			3,017		Total revenues		926			1,025			1,104			1,094			1,114			1,262			1,213			1,365


						Benefits and Expenses (1):
	1,639			1,521		Insurance and annuity benefits		483			565			602			588			607			745			651			718
	249			193		Interest credited to policyholders’ account balances		71			70			74			79			81			83			89			96
	(5	)		7		Interest expense		(2	)		2			1			—			—			—			1			—
	(336	)		(275	)	Deferral of acquisition costs		(90	)		(98	)		(95	)		(99	)		(105	)		(123	)		(130	)		(141	)
	183			125		Amortization of acquisition costs		64			67			61			66			69			76			68			77
	1,025			805		General and administrative expenses		264			261			264			304			298			306			317			355

	2,755			2,376		Total benefits and expenses		790			867			907			938			950			1,087			996			1,105


	210			641		Adjusted operating income before income taxes		136			158			197			156			164			175			217			260

(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

First Quarter 2011

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			3Q			4Q

						Revenues (1):
	(10	)		(9	)	Premiums		(3	)		(8	)		2			(2	)		(4	)		(5	)		(4	)		(5	)
	(31	)		(29	)	Policy charges and fee income		(7	)		(6	)		(7	)		(19	)		(8	)		(7	)		(19	)		(8	)
	559			743		Net investment income		23			73			57			65			68			90			93			90
	(234	)		(161	)	Asset management fees, commissions and other income		(68	)		(54	)		(56	)		(69	)		(80	)		(59	)		(67	)		(76	)

	284			544		Total revenues		(55	)		5			(4	)		(25	)		(24	)		19			3			1


						Benefits and Expenses (1):
	195			39		Insurance and annuity benefits		45			(16	)		7			7			3			38			20			1
	(192	)		(126	)	Interest credited to policyholders’ account balances		(47	)		(31	)		(22	)		(21	)		(22	)		(19	)		(16	)		(13	)
	686			661		Interest expense		170			174			172			186			193			198			197			200
	46			51		Deferral of acquisition costs		5			11			10			13			9			13			12			8
	(49	)		(47	)	Amortization of acquisition costs		(10	)		1			—			(16	)		(8	)		(16	)		(3	)		(8	)
	17			104		General and administrative expenses		(5	)		42			38			32			11			(15	)		58			51

	703			682		Total benefits and expenses		158			181			205			201			186			199			268			239


	(419	)		(138	)	Adjusted operating loss before income taxes		(213	)		(176	)		(209	)		(226	)		(210	)		(180	)		(265	)		(238	)

(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

First Quarter 2011

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

(in millions)


Year-to-Date			2009												2010
2008			1Q			2Q			3Q			4Q			1Q		2Q		3Q		4Q

		Revenues (1):
		Analysis of revenues by type:
	1,115	Asset management fees		239			254			269			287			304		311		320		338
	40	Incentive, transaction, principal investing and commercial mortgage revenues (1)		(39	)		(1	)		(18	)		(21	)		11		69		62		68
	531	Service, distribution and other revenues		63			89			40			95			64		114		111		116

	1,686	Total Asset Management segment revenues		263			342			291			361			379		494		493		522

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

Page 41

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

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

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

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

2. After-tax adjusted operating income:

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

3. Annualized New Business Premiums:

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

4. Assets Under Management:

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

5. Attributed Equity:

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

6. Book value per share of Common Stock:

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

7. Borrowings - Capital Debt:

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

8. Borrowings - Investment Related:

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

9. Borrowings - Securities Business Related:

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

10. Borrowings - Specified Other Businesses:

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

Page 42

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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.

Page 43

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

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, for the Financial Services Businesses, attributable to Prudential Financial, Inc. as determined in accordance with GAAP (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average total attributed equity for the Financial Services Businesses. Return on average equity (based on income from continuing operations) is 7.50% for the three months ended March 31, 2011, 2.63% for the three months ended December 31, 2010, 15.60% for the three months ended September 30, 2010, 11.76% for the three months ended June 30, 2010 and 8.71% for the three months ended March 31, 2010.

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, 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.

Page 44

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2011

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of May 4, 2011


	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 May 4, 2011

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

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

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

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

*	NR indicates not rated.

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

INVESTOR INFORMATION:


Corporate Offices:		Investor Information Hotline:

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

Common Stock:

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

Page 45

PRUDENTIAL FINANCIAL INC - FORM 8-K - EX-99.1 - QUARTERLY FINANCIAL SUPPLEMENT - May 4, 2011

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