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

Attached files

file	filename
8-K - FORM 8-K - PRUDENTIAL FINANCIAL INC	d292700d8k.htm
EX-99.0 - NEWS RELEASE OF PRUDENTIAL FINANCIAL, INC., DATED FEBRUARY 8, 2012 - PRUDENTIAL FINANCIAL INC	d292700dex990.htm

Exhibit 99.1

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

FOURTH 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.

FEBRUARY 8, 2012

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

CONTENTS


	Page
HIGHLIGHTS
Financial Highlights		1-3
Operations Highlights		4

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

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

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

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

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

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

RECLASSIFIED STATEMENTS OF OPERATION		36-39

RECLASSIFIED SUPPLEMENTARY INFORMATION		40

KEY DEFINITIONS AND FORMULAS		41-43

RATINGS AND INVESTOR INFORMATION		44

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

This quarterly financial supplement reflects, for all periods presented, the classification of the results for the Company’s real estate brokerage franchise and relocation services business as a “divested business” and excluded from adjusted operation income as a result of the sale of this business.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

								*Financial Services Businesses:*
								Pre-tax adjusted operating income (loss) by division:
	1,970			2,105			-6%	U.S. Retirement Solutions and Investment Management Division		624			618			621			43			688
	725			715			1%	U.S. Individual Life and Group Insurance Division		200			136			179			209			201
	2,705			2,085			30%	International Insurance Division		588			672			590			751			692
	(1,127	)		(923	)		-22%	Corporate and other operations		(239	)		(264	)		(233	)		(349	)		(281	)

	4,273			3,982			7%	Total pre-tax adjusted operating income		1,173			1,162			1,157			654			1,300
	1,139			1,066			7%	Income taxes, applicable to adjusted operating income		325			321			316			150			352

	3,134			2,916			7%	Financial Services Businesses after-tax adjusted operating income		848			841			841			504			948


								Reconciling items:
	685			(62	)		1205%	Realized investment gains (losses), net, and related charges and adjustments		(906	)		(360	)		(11	)		1,624			(568	)
	223			501			-55%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		(218	)		(17	)		177			10			53
	(123	)		(631	)		81%	Change in experience-rated contractholder liabilities due to asset value changes		200			34			(178	)		68			(47	)
	54			(25	)		316%	Divested businesses		(8	)		(9	)		—			24			39
	(192	)		(98	)		-96%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(62	)		(133	)		18			(88	)		11

	647			(315	)		305%	Total reconciling items, before income taxes		(994	)		(485	)		6			1,638			(512	)
	398			(8	)		5075%	Income taxes, not applicable to adjusted operating income		(307	)		(139	)		14			685			(162	)

	249			(307	)		181%	Total reconciling items, after income taxes		(687	)		(346	)		(8	)		953			(350	)

	3,383			2,609			30%	Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		161			495			833			1,457			598
	113			73			55%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		39			80			(18	)		57			(6	)

	3,496			2,682			30%	Income from continuing operations attributable to Prudential Financial, Inc.		200			575			815			1,514			592
	72			11			555%	Earnings attributable to noncontrolling interests		12			25			29			10			8

	3,568			2,693			32%	Income from continuing operations (after-tax) of Financial Services Businesses		212			600			844			1,524			600
	35			32			9%	Income (loss) from discontinued operations, net of taxes		13			14			16			(9	)		14

	3,603			2,725			32%	Net income of Financial Services Businesses		225			614			860			1,515			614
	72			11			555%	Less: Income attributable to noncontrolling interests		12			25			29			10			8

	3,531			2,714			30%	Net income of Financial Services Businesses attributable to Prudential Financial, Inc.		213			589			831			1,505			606

	10.25%			10.86%				Operating Return on Average Equity (based on adjusted operating income)		11.84%			11.47%			11.11%			6.50%			11.91%

								*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
	3,531			2,714				Net income of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		213			589			831			1,505			606
	135			481				Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		(36	)		19			7			29			80

	3,666			3,195				Consolidated net income attributable to Prudential Financial, Inc.		177			608			838			1,534			686

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

						Earnings per share of Common Stock (diluted):
	6.41			6.17		Financial Services Businesses after-tax adjusted operating income		1.76			1.71			1.70			1.04			1.97

						Reconciling items:
	1.40			(0.13	)	Realized investment gains (losses), net, and related charges and adjustments		(1.87	)		(0.73	)		(0.02	)		3.32			(1.19	)
	0.46			1.05		Investment gains (losses) on trading account assets supporting insurance liabilities, net		(0.45	)		(0.03	)		0.36			0.02			0.11
	(0.25	)		(1.33	)	Change in experience-rated contractholder liabilities due to asset value changes		0.41			0.07			(0.36	)		0.14			(0.10	)
	0.11			(0.05	)	Divested businesses		(0.02	)		(0.02	)		—			0.05			0.08
	(0.01	)		0.01		Difference in earnings allocated to participating unvested share-based payment awards		0.01			0.01			—			(0.03	)		0.01

	1.71			(0.45	)	Total reconciling items, before income taxes		(1.92	)		(0.70	)		(0.02	)		3.50			(1.09	)
	0.98			0.04		Income taxes, not applicable to adjusted operating income		(0.58	)		(0.16	)		0.03			1.46			(0.35	)

	0.73			(0.49	)	Total reconciling items, after income taxes		(1.34	)		(0.54	)		(0.05	)		2.04			(0.74	)

	7.14			5.68		Income from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		0.42			1.17			1.65			3.08			1.23
	0.08			0.07		Income (loss) from discontinued operations, net of taxes		0.03			0.03			0.03			(0.02	)		0.03

	7.22			5.75		Net income of Financial Services Businesses attributable to Prudential Financial, Inc.		0.45			1.20			1.68			3.06			1.26


	480.2			466.8		Weighted average number of outstanding Common shares (basic)		475.1			484.9			486.0			481.2			469.2

	488.7			475.4		Weighted average number of outstanding Common shares (diluted) (1)		483.5			493.9			494.8			489.3			477.0

	24			36		Direct equity adjustments for earnings per share calculation		7			9			8			8			(1	)
	17			17		Earnings related to interest, net of tax, on exchangeable surplus notes (1)		4			4			5			4			4

						Earnings allocated to participating unvested share-based payment awards for earnings per share calculation
	42			37		Financial Services Businesses after-tax adjusted operating income		10			11			12			6			13
	46			35		Income from continuing operations (after-tax) of Financial Services Businesses		7			8			11			20			9

(1)

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

Fourth Quarter 2011

LOGO

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

				*Financial Services Businesses Capitalization Data (1):*
				Senior Debt:
				Short-term debt		1,982		2,432		2,152		2,899		2,336
				Long-term debt		20,384		20,764		21,309		20,651		21,353
				Junior Subordinated Long-Term Debt		1,519		1,519		1,519		1,519		1,519

				Attributed Equity:
				Including accumulated other comprehensive income		31,032		31,300		33,623		35,651		35,650
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		29,248		30,055		31,096		31,954		31,657
				Excluding total accumulated other comprehensive income		28,100		28,785		29,683		30,490		30,232

				Total Capitalization:
				Including accumulated other comprehensive income		52,935		53,583		56,451		57,821		58,522
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		51,151		52,338		53,924		54,124		54,529
				Excluding total accumulated other comprehensive income		50,003		51,068		52,511		52,660		53,104

				Book value per share of Common Stock:
				Including accumulated other comprehensive income		63.11		63.50		68.09		74.52		75.04
				Excluding accumulated other comprehensive income related to unrealized gains and losses on investments and pension / postretirement benefits		59.48		60.98		62.97		66.79		66.63
				Excluding total accumulated other comprehensive income		57.15		58.40		60.11		63.73		63.63

				Number of diluted shares at end of period (2)		491.7		492.9		493.8		478.4		475.1

				*Common Stock Price Range (based on closing price):*
	67.32		65.82	High		59.95		67.32		64.62		65.26		57.32
	43.91		47.02	Low		50.68		58.32		57.77		43.93		43.91
	50.12		58.71	Close		58.71		61.58		63.59		46.86		50.12

				*Common Stock market capitalization (1)*		28,404		29,900		30,912		22,113		23,456

(1)	As of end of period.

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

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

OPERATIONS HIGHLIGHTS


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

				*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		235.3		246.2		256.2		258.8		269.1
				Retail customers		101.2		108.8		109.3		110.1		117.9
				General account		200.8		213.8		218.0		230.5		232.1

				Total Investment Management and Advisory Services		537.3		568.8		583.5		599.4		619.1
				Non-proprietary assets under management		149.8		161.7		167.3		136.1		152.2

				Total managed by U.S. Retirement Solutions and Investment Management Division		687.1		730.5		750.8		735.5		771.3
				Managed by U.S. Individual Life and Group Insurance Division		13.1		13.3		13.5		13.6		13.8
				Managed by International Insurance Division		83.8		114.7		118.9		122.2		115.6

				Total assets under management		784.0		858.5		883.2		871.3		900.7
				Client assets under administration		84.1		86.6		89.4		82.6		85.7

				Total assets under management and administration		868.1		945.1		972.6		953.9		986.4


				Assets managed or administered for customers outside of the United States at end of period		151.1		201.4		208.3		213.2		208.9

				*Distribution Representatives (1):*
				Prudential Agents		2,471		2,506		2,551		2,571		2,529
				International Life Planners		6,565		6,581		6,568		6,699		6,792
				Gibraltar Life Advisors (4)		6,281		13,227		13,353		12,936		12,791

	54		53	*Prudential Agent productivity ($ thousands)*		68		50		50		52		64

(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

Fourth Quarter 2011

LOGO

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

								Revenues (1):
	21,409			15,242			40%	Premiums		3,941			4,828			5,506			5,421			5,654
	4,032			3,480			16%	Policy charges and fee income		929			982			1,038			979			1,033
	9,917			8,598			15%	Net investment income		2,231			2,304			2,525			2,536			2,552
	4,039			3,210			26%	Asset management fees, commissions and other income		916			1,040			1,031			944			1,024

	39,397			30,530			29%	Total revenues		8,017			9,154			10,100			9,880			10,263


								Benefits and Expenses (1):
	20,270			14,877			36%	Insurance and annuity benefits		3,704			4,644			5,160			5,419			5,047
	3,756			3,418			10%	Interest credited to policyholders’ account balances		877			829			934			1,040			953
	1,164			1,049			11%	Interest expense		273			279			290			296			299
	(3,897	)		(3,092	)		-26%	Deferral of acquisition costs		(849	)		(908	)		(985	)		(1,006	)		(998	)
	1,978			1,368			45%	Amortization of acquisition costs		378			466			539			499			474
	11,853			8,928			33%	General and administrative expenses		2,461			2,682			3,005			2,978			3,188

	35,124			26,548			32%	Total benefits and expenses		6,844			7,992			8,943			9,226			8,963

	4,273			3,982			7%	Adjusted operating income before income taxes		1,173			1,162			1,157			654			1,300


								Reconciling items:
	2,521			116			2073%	Realized investment gains (losses), net, and related adjustments		(1,369	)		(356	)		158			3,376			(657	)
	(1,836	)		(178	)		-931%	Related charges		463			(4	)		(169	)		(1,752	)		89

	685			(62	)		1205%	Total realized investment gains (losses), net, and related charges and adjustments		(906	)		(360	)		(11	)		1,624			(568	)

	223			501			-55%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		(218	)		(17	)		177			10			53
	(123	)		(631	)		81%	Change in experience-rated contractholder liabilities due to asset value changes		200			34			(178	)		68			(47	)
	54			(25	)		316%	Divested businesses		(8	)		(9	)		—			24			39
	(192	)		(98	)		-96%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(62	)		(133	)		18			(88	)		11

	647			(315	)		305%	Total reconciling items, before income taxes		(994	)		(485	)		6			1,638			(512	)


	4,920			3,667			34%	Income from continuing operations before income taxes and equity in earnings of operating joint ventures		179			677			1,163			2,292			788
	1,537			1,058			45%	Income tax expense		18			182			330			835			190

	3,383			2,609			30%	Income from continuing operations before equity in earnings of operating joint ventures		161			495			833			1,457			598

(1)

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

Page 5

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	12/31/2010		03/31/2011		06/30/2011		09/30/2011		12/31/2011

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $144,248; $182,343; $186,022; $195,462; $197,784)		149,806		186,861		192,902		205,102		208,132
Fixed maturities, held to maturity, at amortized cost (fair value $5,477; $5,283; $5,342; $5,484; $5,354)		5,226		5,102		5,091		5,195		5,107
Trading account assets supporting insurance liabilities, at fair value		17,771		18,314		18,563		19,535		19,481
Other trading account assets, at fair value		4,069		3,599		3,616		6,237		5,228
Equity securities, available for sale, at fair value (cost $3,605; $5,621; $5,517; $4,280; $4,165)		4,148		6,286		6,022		4,561		4,413
Commercial mortgage and other loans		23,324		24,259		24,712		25,315		26,391
Policy loans		5,290		5,926		6,046		6,176		6,263
Other long-term investments		4,589		6,335		6,239		5,919		5,830
Short-term investments		4,133		6,094		6,497		6,764		8,593

Total investments		218,356		262,776		269,688		284,804		289,438
Cash and cash equivalents		12,447		10,512		13,234		14,734		13,201
Accrued investment income		1,734		2,083		2,111		2,147		2,177
Deferred policy acquisition costs		15,672		16,224		16,563		15,596		16,123
Other assets		16,161		21,066		20,655		16,630		15,752
Separate account assets		207,776		218,382		222,892		207,366		218,380

Total assets		472,146		531,043		545,143		541,277		555,071


Liabilities:
Future policy benefits		82,242		102,404		108,766		117,978		119,036
Policyholders’ account balances		100,905		127,512		125,494		129,069		129,068
Securities sold under agreements to repurchase		2,557		2,599		2,830		2,555		3,118
Cash collateral for loaned securities		1,614		1,522		2,415		2,334		2,254
Income taxes		6,736		6,057		6,939		8,706		8,449
Senior short-term debt		1,982		2,432		2,152		2,899		2,336
Senior long-term debt		20,384		20,764		21,309		20,651		21,353
Junior subordinated long-term debt		1,519		1,519		1,519		1,519		1,519
Other liabilities		14,886		16,002		16,611		11,894		13,320
Separate account liabilities		207,776		218,382		222,892		207,366		218,380

Total liabilities		440,601		499,193		510,927		504,971		518,833


Attributed Equity:
Accumulated other comprehensive income		2,932		2,515		3,940		5,161		5,418
Other attributed equity		28,100		28,785		29,683		30,490		30,232

Total attributed equity		31,032		31,300		33,623		35,651		35,650

Noncontrolling Interest		513		550		593		655		588

Total Equity		31,545		31,850		34,216		36,306		36,238

Total liabilities and equity		472,146		531,043		545,143		541,277		555,071

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended December 31, 2011
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		5,654			257			1,375			4,027			(5	)
Policy charges and fee income		1,033			512			384			146			(9	)
Net investment income		2,552			1,010			418			1,025			99
Asset management fees, commissions and other income		1,024			963			108			87			(134	)

Total revenues		10,263			2,742			2,285			5,285			(49	)


Benefits and Expenses (1):
Insurance and annuity benefits		5,047			416			1,468			3,175			(12	)
Interest credited to policyholders’ account balances		953			549			135			276			(7	)
Interest expense		299			35			73			—			191
Deferral of acquisition costs		(998	)		(271	)		(117	)		(619	)		9
Amortization of acquisition costs		474			109			65			307			(7	)
General and administrative expenses		3,188			1,216			460			1,454			58

Total benefits and expenses		8,963			2,054			2,084			4,593			232


Adjusted operating income (loss) before income taxes		1,300			688			201			692			(281	)


	Quarter Ended 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
Revenues (1):
Premiums		3,941			295			1,239			2,414			(7	)
Policy charges and fee income		929			456			372			109			(8	)
Net investment income		2,231			1,076			408			662			85
Asset management fees, commissions and other income		916			864			85			88			(121	)

Total revenues		8,017			2,691			2,104			3,273			(51	)


Benefits and Expenses (1):
Insurance and annuity benefits		3,704			458			1,319			1,929			(2	)
Interest credited to policyholders’ account balances		877			609			131			150			(13	)
Interest expense		273			27			45			1			200
Deferral of acquisition costs		(849	)		(373	)		(105	)		(379	)		8
Amortization of acquisition costs		378			86			88			212			(8	)
General and administrative expenses		2,461			1,260			426			772			3

Total benefits and expenses		6,844			2,067			1,904			2,685			188


Adjusted operating income (loss) before income taxes		1,173			624			200			588			(239	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Twelve Months Ended December 31, 2011
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		21,409			901			5,478			15,052			(22	)
Policy charges and fee income		4,032			2,043			1,472			552			(35	)
Net investment income		9,917			4,087			1,664			3,777			389
Asset management fees, commissions and other income		4,039			3,789			354			407			(511	)

Total revenues		39,397			10,820			8,968			19,788			(179	)


Benefits and Expenses (1):
Insurance and annuity benefits		20,270			2,070			5,969			12,085			146
Interest credited to policyholders’ account balances		3,756			2,285			527			978			(34	)
Interest expense		1,164			139			214			1			810
Deferral of acquisition costs		(3,897	)		(1,224	)		(447	)		(2,268	)		42
Amortization of acquisition costs		1,978			678			200			1,141			(41	)
General and administrative expenses		11,853			4,902			1,780			5,146			25

Total benefits and expenses		35,124			8,850			8,243			17,083			948


Adjusted operating income (loss) before income taxes		4,273			1,970			725			2,705			(1,127	)


	Twelve Months Ended 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
Revenues (1):
Premiums		15,242			1,232			4,921			9,116			(27	)
Policy charges and fee income		3,480			1,662			1,453			407			(42	)
Net investment income		8,598			4,237			1,571			2,469			321
Asset management fees, commissions and other income		3,210			3,135			328			228			(481	)

Total revenues		30,530			10,266			8,273			12,220			(229	)


Benefits and Expenses (1):
Insurance and annuity benefits		14,877			2,139			5,378			7,315			45
Interest credited to policyholders’ account balances		3,418			2,415			511			562			(70	)
Interest expense		1,049			96			162			3			788
Deferral of acquisition costs		(3,092	)		(1,290	)		(442	)		(1,402	)		42
Amortization of acquisition costs		1,368			305			243			855			(35	)
General and administrative expenses		8,928			4,496			1,706			2,802			(76	)

Total benefits and expenses		26,548			8,161			7,558			10,135			694


Adjusted operating income (loss) before income taxes		3,982			2,105			715			2,085			(923	)

(1)

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of December 31, 2011
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		289,438		97,005		36,164		148,946		7,323
Deferred policy acquisition costs		16,123		2,941		4,640		8,668		(126	)
Other assets		31,130		9,271		4,652		12,760		4,447
Separate account assets		218,380		183,785		35,665		1,118		(2,188	)

Total assets		555,071		293,002		81,121		171,492		9,456


Liabilities:
Future policy benefits		119,036		20,451		11,194		86,987		404
Policyholders’ account balances		129,068		57,878		16,810		54,908		(528	)
Debt		25,208		4,704		7,045		18		13,441
Other liabilities		27,141		10,504		4,323		11,200		1,114
Separate account liabilities		218,380		183,785		35,665		1,118		(2,188	)

Total liabilities		518,833		277,322		75,037		154,231		12,243


Attributed Equity:
Accumulated other comprehensive income (loss)		5,418		2,056		1,483		3,340		(1,461	)
Other attributed equity		30,232		12,999		4,601		13,870		(1,238	)

Total attributed equity		35,650		15,055		6,084		17,210		(2,699	)

Noncontrolling Interest		588		625		—		51		(88	)

Total Equity		36,238		15,680		6,084		17,261		(2,787	)


Total liabilities and equity		555,071		293,002		81,121		171,492		9,456


	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 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of December 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		450		9,255		1,519		11,224			371		6,873		1,519		8,763
Investment related		926		7,971		—		8,897			803		8,766		—		9,569
Securities business related		857		661		—		1,518			691		1,539		—		2,230
Specified other businesses		103		3,466		—		3,569			117		3,206		—		3,323
Limited recourse and non-recourse borrowing		—		—		—		—			—		—		—		—

Total debt - Financial Services Businesses		2,336		21,353		1,519		25,208			1,982		20,384		1,519		23,885

Ratio of long-term and short-term capital debt to capitalization (1)								25.3	%								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 December 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		9,662		1,040		522		11,224			7,648		1,064		51		8,763
Investment related		4,970		710		3,217		8,897			5,686		654		3,229		9,569
Securities business related		1,086		422		10		1,518			1,673		552		5		2,230
Specified other businesses		2,834		735		—		3,569			2,603		720		—		3,323
Limited recourse and non-recourse borrowing		—		—		—		—			—		—		—		—

Total debt - Financial Services Businesses		18,552		2,907		3,749		25,208			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 December 31, 2011 and $942 million for December 31, 2010.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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

(in millions)


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

								Revenues (1):
	901			1,232			-27%	Premiums		295			211			244			189			257
	2,043			1,662			23%	Policy charges and fee income		456			492			520			519			512
	4,087			4,237			-4%	Net investment income		1,076			1,044			1,034			999			1,010
	3,789			3,135			21%	Asset management fees, commissions and other income		864			905			1,039			882			963

	10,820			10,266			5%	Total revenues		2,691			2,652			2,837			2,589			2,742


								Benefits and Expenses (1):
	2,070			2,139			-3%	Insurance and annuity benefits		458			426			530			698			416
	2,285			2,415			-5%	Interest credited to policyholders’ account balances		609			550			563			623			549
	139			96			45%	Interest expense		27			34			35			35			35
	(1,224	)		(1,290	)		5%	Deferral of acquisition costs		(373	)		(398	)		(280	)		(275	)		(271	)
	678			305			122%	Amortization of acquisition costs		86			133			156			280			109
	4,902			4,496			9%	General and administrative expenses		1,260			1,289			1,212			1,185			1,216

	8,850			8,161			8%	Total benefits and expenses		2,067			2,034			2,216			2,546			2,054

	1,970			2,105			-6%	Adjusted operating income before income taxes		624			618			621			43			688

(1)	Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities.

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

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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

(in millions)


	Twelve Months Ended December 31, 2011												Quarter Ended December 31, 2011
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management			Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		901			121			780			—			257			24			233			—
Policy charges and fee income		2,043			1,850			193			—			512			463			49			—
Net investment income		4,087			790			3,178			119			1,010			197			782			31
Asset management fees, commissions and other income		3,789			877			720			2,192			963			218			182			563

Total revenues		10,820			3,638			4,871			2,311			2,742			902			1,246			594


Benefits and Expenses (1):
Insurance and annuity benefits		2,070			476			1,594			—			416			(25	)		441			—
Interest credited to policyholders’ account balances		2,285			570			1,715			—			549			116			433			—
Interest expense		139			112			14			13			35			29			3			3
Deferral of acquisition costs		(1,224	)		(1,159	)		(42	)		(23	)		(271	)		(256	)		(10	)		(5	)
Amortization of acquisition costs		678			606			47			25			109			99			4			6
General and administrative expenses		4,902			2,320			945			1,637			1,216			548			233			435

Total benefits and expenses		8,850			2,925			4,273			1,652			2,054			511			1,104			439

Adjusted operating income before income taxes		1,970			713			598			659			688			391			142			155


	Twelve Months Ended December 31, 2010												Quarter Ended December 31, 2010
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management			Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		1,232			166			1,066			—			295			37			258			—
Policy charges and fee income		1,662			1,461			201			—			456			406			50			—
Net investment income		4,237			878			3,238			121			1,076			218			821			37
Asset management fees, commissions and other income		3,135			690			678			1,767			864			200			179			485

Total revenues		10,266			3,195			5,183			1,888			2,691			861			1,308			522


Benefits and Expenses (1):
Insurance and annuity benefits		2,139			291			1,848			—			458			3			455			—
Interest credited to policyholders’ account balances		2,415			581			1,834			—			609			144			465			—
Interest expense		96			66			17			13			27			20			4			3
Deferral of acquisition costs		(1,290	)		(1,214	)		(52	)		(24	)		(373	)		(354	)		(13	)		(6	)
Amortization of acquisition costs		305			260			20			25			86			75			5			6
General and administrative expenses		4,496			2,165			944			1,387			1,260			628			245			387

Total benefits and expenses		8,161			2,149			4,611			1,401			2,067			516			1,161			390

Adjusted operating income before income taxes		2,105			1,046			572			487			624			345			147			132

(1)

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

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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

(in millions)


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

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	102,348			80,519		Beginning total account value		93,375			102,348			109,969			112,202			102,879
	20,224			21,651		Sales		6,108			6,815			4,531			4,472			4,406
	(7,049	)		(6,923	)	Surrenders and withdrawals		(1,879	)		(1,967	)		(1,933	)		(1,623	)		(1,526	)

	13,175			14,728		Net sales		4,229			4,848			2,598			2,849			2,880
	(1,092	)		(981	)	Benefit payments		(252	)		(254	)		(290	)		(272	)		(276	)

	12,083			13,747		Net flows		3,977			4,594			2,308			2,577			2,604
	(2,450	)		9,748		Change in market value, interest credited, and other (1)		5,488			3,552			493			(11,330	)		4,835
	(2,238	)		(1,666	)	Policy charges		(492	)		(525	)		(568	)		(570	)		(575	)

	109,743			102,348		Ending total account value		102,348			109,969			112,202			102,879			109,743


						Fixed Annuities:
	3,837			3,452		Beginning total account value		3,828			3,837			3,841			3,825			3,810
	69			103		Sales		12			18			20			15			16
	(183	)		(215	)	Surrenders and withdrawals		(45	)		(48	)		(45	)		(46	)		(44	)

	(114)			(112	)	Net redemptions		(33	)		(30	)		(25	)		(31	)		(28	)
	(276	)		(267	)	Benefit payments		(68	)		(67	)		(65	)		(67	)		(77	)

	(390)			(379	)	Net flows		(101	)		(97	)		(90	)		(98	)		(105	)
	346			766		Interest credited and other (1)		111			102			74			83			87
	(1	)		(2	)	Policy charges		(1	)		(1	)		—			—			—

	3,792			3,837		Ending total account value		3,837			3,841			3,825			3,810			3,792


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (2):
	3,223			2,847		Insurance Agents		817			997			758			736			732
	4,563			4,612		Wirehouses		1,300			1,414			929			1,040			1,180
	9,140			10,611		Independent Financial Planners		2,880			3,339			2,057			1,922			1,822
	3,367			3,684		Bank Distribution		1,123			1,083			807			789			688

	20,293			21,754		Total		6,120			6,833			4,551			4,487			4,422

(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 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth 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				4Q			1Q			2Q			3Q			4Q

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	13,223			14,606		Beginning balance		13,693			13,223			12,621			12,185			12,971
	1,906			2,491		Premiums and deposits		569			521			391			489			505
	(1,114	)		(1,480	)	Surrenders and withdrawals		(362	)		(346	)		(294	)		(295	)		(179	)

	792			1,011		Net sales		207			175			97			194			326
	(347	)		(351	)	Benefit payments		(89	)		(88	)		(85	)		(82	)		(92	)

	445			660		Net flows		118			87			12			112			234
	412			561		Interest credited and other		129			106			100			102			104
	(1,249	)		(2,602	)	Net transfers (to) from separate account		(716	)		(794	)		(548	)		572			(479	)
	(1	)		(2	)	Policy charges		(1	)		(1	)		—			—			—

	12,830			13,223		Ending balance		13,223			12,621			12,185			12,971			12,830


						Account Values in Separate Account:
	92,962			69,365		Beginning balance		83,510			92,962			101,189			103,842			93,718
	18,387			19,263		Premiums and deposits		5,551			6,312			4,160			3,998			3,917
	(6,118	)		(5,658	)	Surrenders and withdrawals		(1,562	)		(1,669	)		(1,684	)		(1,374	)		(1,391	)

	12,269			13,605		Net sales		3,989			4,643			2,476			2,624			2,526
	(1,021	)		(897	)	Benefit payments		(231	)		(233	)		(270	)		(257	)		(261	)

	11,248			12,708		Net flows		3,758			4,410			2,206			2,367			2,265
	(2,516	)		9,953		Change in market value, interest credited and other		5,470			3,548			467			(11,349	)		4,818
	1,249			2,602		Net transfers (to) from general account		716			794			548			(572	)		479
	(2,238	)		(1,666	)	Policy charges		(492	)		(525	)		(568	)		(570	)		(575	)

	100,705			92,962		Ending balance		92,962			101,189			103,842			93,718			100,705

(1)

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

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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

(in millions)


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

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

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		9,873		9,935		9,667		8,844		8,771
Guaranteed minimum withdrawal benefits		1,315		1,296		1,215		1,018		1,031
Guaranteed minimum income benefits		4,532		4,480		4,261		3,580		3,685
Guaranteed minimum withdrawal & income benefits		59,351		66,857		70,349		66,080		72,154

Total		75,071		82,568		85,492		79,522		85,641


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		57,336		64,786		68,273		64,769		70,341
Account Values without Auto-Rebalancing Feature		17,735		17,782		17,219		14,753		15,300

Total		75,071		82,568		85,492		79,522		85,641


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		1,217		1,227		1,438		4,996		4,238
Net Amount at Risk without Auto-Rebalancing Feature		1,825		1,574		1,622		2,934		2,361

Total		3,042		2,801		3,060		7,930		6,599

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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

(in millions)


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

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

Variable Annuity Account Values by Death Benefit Features
Return of net deposits:
Account value		69,982		76,405		78,748		72,971		78,334
Net amount at risk		1,132		929		918		3,238		2,083
Minimum return, anniversary contract value, or maximum contract value:
Account value		29,047		30,216		30,191		27,022		28,414
Net amount at risk		4,327		3,871		3,958		6,751		5,699

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		57,336		64,786		68,273		64,769		70,341
Account Values without Auto-Rebalancing Feature		41,693		41,835		40,666		35,224		36,407

Total		99,029		106,621		108,939		99,993		106,748


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		592		557		591		3,042		2,154
Net Amount at Risk without Auto-Rebalancing Feature		4,867		4,243		4,285		6,947		5,628

Total		5,459		4,800		4,876		9,989		7,782

(1)	At end of period.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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

(in millions)


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

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	141,313			126,345		Beginning total account value		135,248			141,313			145,977			146,580			134,198
	16,821			19,266		Deposits and sales		4,369			4,848			4,128			3,966			3,879
	(19,160	)		(16,804	)	Withdrawals and benefits		(5,386	)		(4,927	)		(4,214	)		(4,126	)		(5,893	)
	456			12,506		Change in market value, interest credited, interest income and other activity (1)		7,082			4,743			689			(12,222	)		7,246

	139,430			141,313		Ending total account value		141,313			145,977			146,580			134,198			139,430


	(2,339	)		2,462		Net additions (withdrawals)		(1,017	)		(79	)		(86	)		(160	)		(2,014	)


						Stable value account values included above		39,142			39,062			39,828			40,889			41,142

						Institutional Investment Products:
	64,183			51,908		Beginning total account value		59,062			64,183			68,892			74,131			80,513
	27,773			15,298		Additions		6,654			5,785			5,592			5,571			10,825
	(6,150	)		(6,958	)	Withdrawals and benefits (2)		(1,177	)		(1,128	)		(1,437	)		(1,501	)		(2,084	)
	4,581			3,370		Change in market value, interest credited and interest income		(175	)		482			1,190			2,176			733
	(298	)		565		Other (3)		(181	)		(430	)		(106	)		136			102

	90,089			64,183		Ending total account value		64,183			68,892			74,131			80,513			90,089


	21,623			8,340		Net additions		5,477			4,657			4,155			4,070			8,741

(1)	Includes $469 million for the three and twelve months ended December 31, 2011, representing the addition of Prudential’s Non-Qualified pension plan transferred from a third party administrator.

(2)

Includes $(67) million, $(34) million, $(18) million, $(16) million and $(10) million for the three months ended December 31, 2010, March 31, 2011, June 30, 2011, September 30, 2011 and December 31, 2011 respectively, and $(78) million, $(752) million for the twelve months ended December 31, 2011 and 2010, respectively, representing transfers of client balances managed by Prudential to externally managed accounts. These withdrawals are offset within the “Other” category and there are no net impacts on ending account values for these transfers.

(3)

“Other” activity includes transfers to the Asset Management segment of $(118) million, $(402) million and $(13) million for the three months ended December 31, 2010, March 31, 2011 and June 30, 2011 respectively, and $(415) million and $(164) million for the twelve months ended December 31, 2011 and 2010 respectively. “Other” activity also includes $67 million, $34 million, $18 million, $16 million and $10 million for the three months ended December 31, 2010, March 31, 2011, June 30, 2011, September 30, 2011 and December 31, 2011, respectively, $78 million and $752 million for the twelve months ended December 31, 2011 and 2010, respectively, related to transfers discussed above in note 2. The remainder of “Other” activity primarily represents changes in asset balances for externally managed accounts.

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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


						Supplementary Revenue Information (in millions):
Year-to-date				% Change			2010		2011
2011		2010		% Change			4Q		1Q		2Q		3Q		4Q

						Analysis of revenues by type:
	1,467		1,273		15%	Asset management fees		338		356		368		367		376
	339		210		61%	Incentive, transaction, strategic investing and commercial mortgage revenues		68		57		149		35		98
	505		405		25%	Service, distribution and other revenues		116		135		139		111		120

	2,311		1,888		22%	Total Asset Management segment revenues		522		548		656		513		594


						Analysis of asset management fees by source:
	714		626		14%	Institutional customers		163		174		178		178		184
	426		353		21%	Retail customers		98		104		108		107		107
	327		294		11%	General account		77		78		82		82		85

	1,467		1,273		15%	Total asset management fees		338		356		368		367		376


Supplementary Assets Under Management Information (in billions):
	December 31, 2011
	Equity		Fixed Income		Real Estate		Total
Institutional customers		44.2		197.2		27.7		269.1
Retail customers		70.8		45.7		1.4		117.9
General account		4.2		226.6		1.3		232.1

Total		119.2		469.5		30.4		619.1


	December 31, 2010
	Equity		Fixed Income		Real Estate		Total
Institutional customers		51.3		160.4		23.6		235.3
Retail customers		72.7		27.0		1.5		101.2
General account		4.1		195.8		0.9		200.8

Total		128.1		383.2		26.0		537.3

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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

(in billions)


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

						Institutional Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	197.6			152.1		Beginning assets under management		184.1			197.6			209.2			218.9			221.6
	48.0			50.5		Additions		16.6			12.4			10.8			10.6			14.2
	(31.3	)		(21.9	)	Withdrawals		(6.7	)		(6.5	)		(5.8	)		(8.5	)		(10.5	)
	16.8			16.9		Change in market value		3.0			5.4			4.7			0.8			5.9
	—			(0.5	)	Net money market flows		0.1			(0.1	)		—			(0.2	)		0.3
	0.4			0.5		Other (1)		0.5			0.4			—			—			—

	231.5			197.6		Ending assets under management		197.6			209.2			218.9			221.6			231.5
	37.6			37.7		Affiliated institutional assets under management		37.7			37.0			37.3			37.2			37.6

	269.1			235.3		Total assets managed for institutional customers at end of period		235.3			246.2			256.2			258.8			269.1


	16.7			28.6		Net institutional additions, excluding money market activity		9.9			5.9			5.0			2.1			3.7


						Retail Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	61.6			51.1		Beginning assets under management		55.5			61.6			66.2			66.8			58.9
	23.9			21.0		Additions		5.3			6.1			5.0			6.2			6.6
	(20.4	)		(14.6	)	Withdrawals		(4.1	)		(4.1	)		(5.2	)		(5.7	)		(5.4	)
	(0.5	)		6.7		Change in market value		4.9			3.0			0.8			(8.4	)		4.1
	—			(2.6	)	Net money market flows		—			—			—			—			—
	(0.4	)		—		Other (2)		—			(0.4	)		—			—			—

	64.2			61.6		Ending assets under management		61.6			66.2			66.8			58.9			64.2
	53.7			39.6		Affiliated retail assets under management		39.6			42.6			42.5			51.2			53.7

	117.9			101.2		Total assets managed for retail customers at end of period		101.2			108.8			109.3			110.1			117.9


	3.5			6.4		Net retail additions (withdrawals), excluding money market activity		1.2			2.0			(0.2	)		0.5			1.2

(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 the first quarter 2011 represent a reclassification of certain fund balances to affiliated retail assets under management.

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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

(in millions)


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

								Revenues (1):
	5,478			4,921			11%	Premiums		1,239			1,360			1,361			1,382			1,375
	1,472			1,453			1%	Policy charges and fee income		372			385			384			319			384
	1,664			1,571			6%	Net investment income		408			407			418			421			418
	354			328			8%	Asset management fees, commissions and other income		85			79			86			81			108

	8,968			8,273			8%	Total revenues		2,104			2,231			2,249			2,203			2,285


								Benefits and Expenses (1):
	5,969			5,378			11%	Insurance and annuity benefits		1,319			1,510			1,453			1,538			1,468
	527			511			3%	Interest credited to policyholders’ account balances		131			128			130			134			135
	214			162			32%	Interest expense		45			45			48			48			73
	(447	)		(442	)		-1%	Deferral of acquisition costs		(105	)		(103	)		(112	)		(115	)		(117	)
	200			243			-18%	Amortization of acquisition costs		88			93			107			(65	)		65
	1,780			1,706			4%	General and administrative expenses		426			422			444			454			460

	8,243			7,558			9%	Total benefits and expenses		1,904			2,095			2,070			1,994			2,084


	725			715			1%	Adjusted operating income before income taxes		200			136			179			209			201

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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

(in millions)


	Twelve Months Ended December 31, 2011									Quarter Ended December 31, 2011
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance			Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		5,478			716			4,762			1,375			179			1,196
Policy charges and fee income		1,472			952			520			384			258			126
Net investment income		1,664			978			686			418			249			169
Asset management fees, commissions and other income		354			254			100			108			83			25

Total revenues		8,968			2,900			6,068			2,285			769			1,516


Benefits and Expenses (1):
Insurance and annuity benefits		5,969			1,144			4,825			1,468			276			1,192
Interest credited to policyholders’ account balances		527			299			228			135			77			58
Interest expense		214			214			—			73			73			—
Deferral of acquisition costs		(447	)		(391	)		(56	)		(117	)		(104	)		(13	)
Amortization of acquisition costs		200			174			26			65			58			7
General and administrative expenses		1,780			943			837			460			243			217

Total benefits and expenses		8,243			2,383			5,860			2,084			623			1,461


Adjusted operating income before income taxes		725			517			208			201			146			55


	Twelve Months Ended December 31, 2010									Quarter Ended December 31, 2010
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance			Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		4,921			714			4,207			1,239			180			1,059
Policy charges and fee income		1,453			975			478			372			266			106
Net investment income		1,571			903			668			408			237			171
Asset management fees, commissions and other income		328			223			105			85			56			29

Total revenues		8,273			2,815			5,458			2,104			739			1,365


Benefits and Expenses (1):
Insurance and annuity benefits		5,378			1,120			4,258			1,319			276			1,043
Interest credited to policyholders’ account balances		511			284			227			131			72			59
Interest expense		162			162			—			45			45			—
Deferral of acquisition costs		(442	)		(396	)		(46	)		(105	)		(94	)		(11	)
Amortization of acquisition costs		243			218			25			88			79			9
General and administrative expenses		1,706			927			779			426			230			196

Total benefits and expenses		7,558			2,315			5,243			1,904			608			1,296


Adjusted operating income before income taxes		715			500			215			200			131			69

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

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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

(in millions)


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

						ANNUALIZED NEW BUSINESS PREMIUMS (1):

	25			23		Variable life		7			7			6			8			4
	95			77		Universal life		20			23			22			21			29
	158			160		Term life		40			35			40			41			42

	278			260		Total		67			65			68			70			75


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	84			84		Prudential Agents		22			20			21			21			22
	194			176		Third party distribution		45			45			47			49			53

	278			260		Total		67			65			68			70			75


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2):*
	8,767			8,081		Beginning balance		8,548			8,767			8,968			9,080			9,358
	1,631			1,507		Premiums and deposits		367			402			374			401			454
	(780	)		(795	)	Surrenders and withdrawals		(198	)		(180	)		(217	)		(184	)		(199	)

	851			712		Net sales		169			222			157			217			255
	(221	)		(197	)	Benefit payments		(52	)		(51	)		(49	)		(70	)		(51	)

	630			515		Net flows		117			171			108			147			204
	164			291		Interest credited and other		133			62			20			126			(44	)
	287			251		Net transfers from separate account		62			61			74			93			59
	(354	)		(371	)	Policy charges		(93	)		(93	)		(90	)		(88	)		(83	)

	9,494			8,767		Ending balance		8,767			8,968			9,080			9,358			9,494


						*Separate Account Liabilities:*
	17,157			15,692		Beginning balance		16,079			17,156			17,749			17,544			15,506
	896			1,031		Premiums and deposits		243			220			215			246			215
	(694	)		(595	)	Surrenders and withdrawals		(145	)		(161	)		(255	)		(128	)		(150	)

	202			436		Net sales (redemptions)		98			59			(40	)		118			65
	(37	)		(33	)	Benefit payments		(11	)		(13	)		(11	)		(5	)		(8	)

	165			403		Net flows		87			46			(51	)		113			57
	128			2,002		Change in market value, interest credited and other		1,222			777			90			(1,890	)		1,151
	(287	)		(251	)	Net transfers to general account		(62	)		(61	)		(74	)		(93	)		(59	)
	(671	)		(689	)	Policy charges		(169	)		(169	)		(170	)		(168	)		(164	)

	16,492			17,157		Ending balance		17,157			17,749			17,544			15,506			16,491


						FACE AMOUNT IN FORCE (3):

						Variable life		118,078			117,538			116,024			113,349			113,039
						Universal life		37,481			38,190			38,896			39,644			41,063
						Term life		457,014			460,683			466,129			471,453			477,235

						Total		612,573			616,411			621,049			624,446			631,337

(1)	Excludes corporate-owned life insurance.

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

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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			4Q		1Q		2Q		3Q		4Q

				Individual Life Insurance:

				Policy Surrender Experience:
	778		697	Cash value of surrenders		172		189		286		148		155
	3.3%		3.0%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		2.9%		3.1%		4.7%		2.5%		2.7%

				Death benefits per $1,000 of in force (1):
	4.52		4.35	Variable and universal life		3.89		5.15		3.73		5.00		4.18
	1.09		1.07	Term life		1.06		1.12		1.06		1.21		0.99
	2.73		2.67	Total, Individual Life Insurance		2.45		3.05		2.34		3.03		2.49

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

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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

(dollar amounts in millions)


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

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	486		446	Group life		82			392			22			23			49
	204		161	Group disability (1)		27			108			30			29			37

	690		607	Total		109			500			52			52			86


				Future Policy Benefits (2):
				Group life		2,262			2,233			2,202			2,184			2,418
				Group disability (1)		1,453			1,560			1,621			1,676			1,751

				Total		3,715			3,793			3,823			3,860			4,169


				Policyholders’ Account Balances (2):
				Group life		6,863			6,943			7,075			7,027			7,127
				Group disability (1)		182			174			179			187			189

				Total		7,045			7,117			7,254			7,214			7,316


				Separate Account Liabilities (2):
				Group life		19,271			19,292			20,027			19,148			19,174
				Group disability (1)		—			—			—			—			—

				Total		19,271			19,292			20,027			19,148			19,174


				Group Life Insurance:
	4,202		3,721	Gross premiums, policy charges and fee income (3)		944			1,066			1,046			1,050			1,040
	4,065		3,539	Earned premiums, policy charges and fee income		856			1,010			992			1,064			999
	89.5%		89.7%	Benefits ratio		86.1	%		92.3	%		90.4	%		89.3	%		86.0	%
	8.3%		8.8%	Administrative operating expense ratio		8.8	%		8.1	%		7.9	%		8.5	%		8.8	%
				Persistency ratio		92.1	%		97.2	%		96.6	%		96.2	%		95.8	%

				Group Disability Insurance (1):
	1,236		1,165	Gross premiums, policy charges and fee income (3)		315			301			304			304			327
	1,217		1,146	Earned premiums, policy charges and fee income		309			299			296			299			323
	97.5%		94.7%	Benefits ratio		99.0	%		94.3	%		97.0	%		95.0	%		103.4	%
	21.4%		21.3%	Administrative operating expense ratio		19.4	%		21.6	%		21.4	%		21.7	%		21.1	%
				Persistency ratio		92.1	%		93.3	%		91.6	%		89.7	%		88.5	%

(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 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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

(in millions)


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

						DEFERRED POLICY ACQUISITION COSTS
						INDIVIDUAL ANNUITIES:
	3,392			2,449		Beginning balance		2,600			3,392			3,673			3,697			2,380
	1,159			1,214		Capitalization		354			379			264			260			256
	(606	)		(260	)	Amortization - operating results		(75	)		(99	)		(146	)		(262	)		(99	)
	(1,276	)		15		Amortization - realized investment gains and losses		362			18			(94	)		(1,282	)		82
	18			(26	)	Impact of unrealized (gains) or losses on AFS securities		151			(1	)		—			(33	)		52
	(16	)		—		Other (1)		—			(16	)		—			—			—

	2,671			3,392		Ending balance		3,392			3,673			3,697			2,380			2,671


						INDIVIDUAL LIFE INSURANCE:
	4,261			4,179		Beginning balance		4,129			4,261			4,272			4,217			4,305
	391			396		Capitalization		94			89			97			101			104
	(174	)		(218	)	Amortization - operating results		(79	)		(86	)		(101	)		71			(58	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	(260	)		(96	)	Impact of unrealized (gains) or losses on AFS securities		117			8			(51	)		(84	)		(133	)

	4,218			4,261		Ending balance		4,261			4,272			4,217			4,305			4,218


						GROUP INSURANCE:
	392			371		Beginning balance		390			392			399			408			416
	56			46		Capitalization		11			14			15			14			13
	(26	)		(25	)	Amortization - operating results		(9	)		(7	)		(6	)		(6	)		(7	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	422			392		Ending balance		392			399			408			416			422


						DEFERRED SALES INDUCEMENTS
						INDIVIDUAL ANNUITIES:
	1,348			1,117		Beginning balance		1,094			1,348			1,431			1,415			915
	358			431		Capitalization		109			121			86			72			79
	(262	)		(196	)	Amortization - operating results		(53	)		(56	)		(60	)		(105	)		(41	)
	(464	)		(19	)	Amortization - realized investment gains and losses		143			6			(44	)		(455	)		29
	4			15		Impact of unrealized (gains) or losses on AFS securities		55			(4	)		2			(12	)		18
	16			—		Other (1)		—			16			—			—			—

	1,000			1,348		Ending balance		1,348			1,431			1,415			915			1,000

(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 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


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

								Revenues (1):
	15,052			9,116			65%	Premiums		2,414			3,267			3,912			3,846			4,027
	552			407			36%	Policy charges and fee income		109			113			143			150			146
	3,777			2,469			53%	Net investment income		662			765			961			1,026			1,025
	407			228			79%	Asset management fees, commissions and other income		88			183			33			104			87

	19,788			12,220			62%	Total revenues		3,273			4,328			5,049			5,126			5,285


								Benefits and Expenses (1):
	12,085			7,315			65%	Insurance and annuity benefits		1,929			2,706			3,170			3,034			3,175
	978			562			74%	Interest credited to policyholders’ account balances		150			161			249			292			276
	1			3			-67%	Interest expense		1			—			1			—			—
	(2,268	)		(1,402	)		-62%	Deferral of acquisition costs		(379	)		(422	)		(603	)		(624	)		(619	)
	1,141			855			33%	Amortization of acquisition costs		212			250			287			297			307
	5,146			2,802			84%	General and administrative expenses		772			961			1,355			1,376			1,454

	17,083			10,135			69%	Total benefits and expenses		2,685			3,656			4,459			4,375			4,593


	2,705			2,085			30%	Adjusted operating income before income taxes		588			672			590			751			692

(1)

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

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	Twelve Months Ended December 31, 2011									Quarter Ended December 31, 2011
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations			Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		15,052			6,432			8,620			4,027			1,638			2,389
Policy charges and fee income		552			371			181			146			92			54
Net investment income		3,777			1,451			2,326			1,025			375			650
Asset management fees, commissions and other income		407			(40	)		447			87			(16	)		103

Total revenues		19,788			8,214			11,574			5,285			2,089			3,196


Benefits and Expenses (1):
Insurance and annuity benefits		12,085			5,294			6,791			3,175			1,351			1,824
Interest credited to policyholders’ account balances		978			245			733			276			61			215
Interest expense		1			(1	)		2			—			(1	)		1
Deferral of acquisition costs		(2,268	)		(1,024	)		(1,244	)		(619	)		(260	)		(359	)
Amortization of acquisition costs		1,141			638			503			307			161			146
General and administrative expenses		5,146			1,693			3,453			1,454			441			1,013

Total benefits and expenses		17,083			6,845			10,238			4,593			1,753			2,840


Adjusted operating income before income taxes		2,705			1,369			1,336			692			336			356


	Twelve Months Ended December 31, 2010									Quarter Ended December 31, 2010
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations			Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		9,116			5,662			3,454			2,414			1,491			923
Policy charges and fee income		407			325			82			109			86			23
Net investment income		2,469			1,256			1,213			662			336			326
Asset management fees, commissions and other income		228			23			205			88			(5	)		93

Total revenues		12,220			7,266			4,954			3,273			1,908			1,365


Benefits and Expenses (1):
Insurance and annuity benefits		7,315			4,594			2,721			1,929			1,211			718
Interest credited to policyholders’ account balances		562			213			349			150			54			96
Interest expense		3			2			1			1			1			—
Deferral of acquisition costs		(1,402	)		(903	)		(499	)		(379	)		(238	)		(141	)
Amortization of acquisition costs		855			565			290			212			135			77
General and administrative expenses		2,802			1,526			1,276			772			417			355

Total benefits and expenses		10,135			5,997			4,138			2,685			1,580			1,105


Adjusted operating income before income taxes		2,085			1,269			816			588			328			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 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


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

				Japanese Yen Basis Results:
				Revenues (1):
¥	516,278	¥	489,882	Japanese insurance operations excluding Gibraltar Life	¥	121,126	¥	138,200	¥	122,889	¥	128,648	¥	126,541
	934,031		438,702	Gibraltar Life and Other Operations		115,475		171,976		257,054		256,318		248,683

	1,450,309		928,584	Total revenues, yen basis		236,601		310,176		379,943		384,966		375,224


				Benefits and Expenses (1):
	416,442		392,648	Japanese insurance operations excluding Gibraltar Life		96,878		113,597		97,084		103,679		102,082
	832,091		360,379	Gibraltar Life and Other Operations		93,126		154,260		235,846		216,665		225,320

	1,248,533		753,027	Total benefits and expenses, yen basis		190,004		267,857		332,930		320,344		327,402


				Adjusted operating income (2):
	99,836		97,234	Japanese insurance operations excluding Gibraltar Life		24,248		24,603		25,805		24,969		24,459
	101,940		78,323	Gibraltar Life and Other Operations		22,349		17,716		21,208		39,653		23,363

¥	201,776	¥	175,557	Total adjusted operating income, yen basis	¥	46,597	¥	42,319	¥	47,013	¥	64,622	¥	47,822


				U.S. Dollar adjusted operating income (3):
$	1,150	$	1,034	Japanese insurance operations excluding Gibraltar Life and Other Operations	$	265	$	281	$	294	$	290	$	285
	1,336		816	Gibraltar Life and Other Operations		260		342		244		394		356

	2,486		1,850	Total adjusted operating income, U.S. dollar basis		525		623		538		684		641
	219		235	All other (4)		63		49		52		67		51

$	2,705	$	2,085	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	588	$	672	$	590	$	751	$	692

(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 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


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

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	5,219		4,529	Japan, excluding Gibraltar Life		1,182		1,378		1,210		1,311		1,320
	8,801		3,536	Gibraltar Life		946		1,628		2,447		2,283		2,443
	1,584		1,458	All other countries		395		374		398		402		410

	15,604		9,523	Total		2,523		3,380		4,055		3,996		4,173


				Annualized new business premiums:
	816		690	Japan, excluding Gibraltar Life		191		224		176		209		207
	2,042		874	Gibraltar Life		256		373		544		570		555
	334		274	All other countries		85		83		82		82		87

	3,192		1,838	Total		532		680		802		861		849


				Annualized new business premiums by distribution channel:
	1,150		964	Life Planners		276		307		258		291		294
	979		487	Gibraltar Life Advisors		123		160		270		269		280
	603		332	Banks		106		135		143		173		152
	460		55	Independent Agency		27		78		131		128		123

	3,192		1,838	Total		532		680		802		861		849


				Constant exchange rate basis (2):

				Net premiums, policy charges and fee income:
	4,972		4,635	Japan, excluding Gibraltar Life		1,156		1,343		1,173		1,226		1,230
	8,366		3,652	Gibraltar Life		926		1,589		2,367		2,139		2,271
	1,501		1,445	All other countries		382		355		365		375		406

	14,839		9,732	Total		2,464		3,287		3,905		3,740		3,907


				Annualized new business premiums:
	781		703	Japan, excluding Gibraltar Life		187		218		171		198		194
	1,943		897	Gibraltar Life		253		363		524		537		519
	316		270	All other countries		82		79		76		75		86

	3,040		1,870	Total		522		660		771		810		799


				Annualized new business premiums by distribution channel:
	1,097		973	Life Planners		269		297		247		273		280
	928		505	Gibraltar Life Advisors		121		155		258		253		262
	580		336	Banks		106		132		139		165		144
	435		56	Independent Agency		26		76		127		119		113

	3,040		1,870	Total		522		660		771		810		799

(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 85 per U.S. dollar; Korean won 1180 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


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

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		320			322			324			326			328
Gibraltar Life (3)		231			377			375			378			380
All other countries		100			102			102			103			105

Total		651			801			801			807			813


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		2,549			2,590			2,616			2,647			2,678
Gibraltar Life (3)		3,903			7,457			7,430			7,459			7,477
All other countries		1,504			1,522			1,536			1,555			1,575

Total		7,956			11,569			11,582			11,661			11,730


International life insurance policy persistency: (4)

Excluding Gibraltar Life:
13 months		92.2	%		92.1	%		92.2	%		92.7	%		92.8	%
25 months		84.5	%		84.6	%		84.7	%		85.1	%		85.4	%

Gibraltar Life:
13 months		92.4	%		92.4	%		92.7	%		93.0	%		93.1	%
25 months		84.7	%		85.3	%		85.5	%		85.8	%		85.8	%

Number of Life Planners at end of period:
Japan		3,122			3,150			3,106			3,144			3,137
All other countries		3,443			3,431			3,462			3,555			3,655

Total life planners		6,565			6,581			6,568			6,699			6,792


Gibraltar Life Advisors (5)		6,281			13,227			13,353			12,936			12,791

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 85 per U.S. dollar; Korean won 1180 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 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 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		209,297		30,211		179,086		64.3	%		155,076		30,499		124,577		59.3	%
Public, held-to-maturity, at amortized cost		3,743		—		3,743		1.3	%		3,940		—		3,940		1.9	%
Private, available-for-sale, at fair value		43,243		16,305		26,938		9.7	%		37,786		14,678		23,108		11.0	%
Private, held-to-maturity, at amortized cost		1,364		—		1,364		0.5	%		1,286		—		1,286		0.6	%
Trading account assets supporting insurance liabilities, at fair value		19,481		—		19,481		7.0	%		17,771		—		17,771		8.5	%
Other trading account assets, at fair value		2,421		317		2,104		0.8	%		1,376		156		1,220		0.6	%
Equity securities, available-for-sale, at fair value		7,523		3,122		4,401		1.6	%		7,728		3,593		4,135		2.0	%
Commercial mortgage and other loans, at book value		34,113		9,040		25,073		9.0	%		30,408		8,507		21,901		10.4	%
Policy loans, at outstanding balance		11,559		5,296		6,263		2.2	%		10,667		5,377		5,290		2.5	%
Other long-term investments (1)		6,471		1,990		4,481		1.6	%		4,570		1,582		2,988		1.4	%
Short-term investments (2)		6,137		528		5,609		2.0	%		4,862		1,164		3,698		1.8	%

Subtotal (3)		345,352		66,809		278,543		100.0	%		275,470		65,556		209,914		100.0	%

Invested assets of other entities and operations (4)		10,895		—		10,895					8,442		—		8,442

Total investments		356,247		66,809		289,438					283,912		65,556		218,356

Fixed Maturities by Credit Quality (3):


	December 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		151,700		11,143		1,756		161,087		88.0	%		105,068		6,278		1,240		110,106		85.5	%
2		17,017		1,298		797		17,518		9.6	%		14,129		892		585		14,436		11.2	%

Subtotal - High or Highest Quality Securities		168,717		12,441		2,553		178,605		97.6	%		119,197		7,170		1,825		124,542		96.7	%

3		3,446		66		574		2,938		1.6	%		2,753		100		208		2,645		2.1	%
4		1,328		34		296		1,066		0.6	%		1,067		24		206		885		0.7	%
5		443		6		174		275		0.1	%		630		21		211		440		0.3	%
6		219		15		105		129		0.1	%		271		28		89		210		0.2	%

Subtotal - Other Securities		5,436		121		1,149		4,408		2.4	%		4,721		173		714		4,180		3.3	%

Total		174,153		12,562		3,702		183,013		100.0	%		123,918		7,343		2,539		128,722		100.0	%


Private Fixed Maturities:
NAIC Rating (5)
1		7,018		730		84		7,664		27.0	%		6,226		511		90		6,647		27.2	%
2		15,847		1,273		362		16,758		59.1	%		13,264		792		341		13,715		56.1	%

Subtotal - High or Highest Quality Securities		22,865		2,003		446		24,422		86.1	%		19,490		1,303		431		20,362		83.3	%

3		2,532		134		43		2,623		9.2	%		2,467		104		63		2,508		10.3	%
4		715		14		20		709		2.5	%		948		26		44		930		3.8	%
5		490		5		42		453		1.6	%		518		21		17		522		2.1	%
6		130		31		3		158		0.6	%		95		29		6		118		0.5	%

Subtotal - Other Securities		3,867		184		108		3,943		13.9	%		4,028		180		130		4,078		16.7	%

Total		26,732		2,187		554		28,365		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 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 December 31, 2011 and December 31, 2010, respectively, 110 securities with amortized cost of $817 million (fair value $852 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 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 31, 2011					December 31, 2010
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		111,857		80.3	%		60,115		74.9	%
Public, held-to-maturity, at amortized cost		3,743		2.7	%		3,940		4.9	%
Private, available-for-sale, at fair value		5,020		3.6	%		3,304		4.1	%
Private, held-to-maturity, at amortized cost		1,364		1.0	%		1,286		1.6	%
Trading account assets supporting insurance liabilities, at fair value		1,732		1.2	%		1,518		1.9	%
Other trading account assets, at fair value		1,496		1.1	%		702		0.9	%
Equity securities, available-for-sale, at fair value		1,932		1.4	%		1,612		2.0	%
Commercial mortgage and other loans, at book value		5,672		4.1	%		4,202		5.2	%
Policy loans, at outstanding balance		2,873		2.0	%		2,083		2.6	%
Other long-term investments (2)		2,892		2.1	%		1,320		1.6	%
Short-term investments		702		0.5	%		211		0.3	%

Total		139,283		100.0	%		80,293		100.0	%


	December 31, 2011					December 31, 2010
	Amount		% of Total			Amount		% of Total
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		67,229		48.3	%		64,462		49.7	%
Public, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available-for-sale, at fair value		21,918		15.7	%		19,804		15.3	%
Private, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		17,749		12.8	%		16,253		12.5	%
Other trading account assets, at fair value		608		0.4	%		518		0.4	%
Equity securities, available-for-sale, at fair value		2,469		1.8	%		2,523		1.9	%
Commercial mortgage and other loans, at book value		19,401		13.9	%		17,699		13.7	%
Policy loans, at outstanding balance		3,390		2.4	%		3,207		2.5	%
Other long-term investments (2)		1,589		1.2	%		1,668		1.3	%
Short-term investments		4,907		3.5	%		3,487		2.7	%

Total		139,260		100.0	%		129,621		100.0	%

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

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

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended December 31
	2011									2010
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)			Amount			Realized Gains / (Losses)			Yield (3)			Amount			Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities		3.75	%		1,849			(50	)		4.24	%		1,532			(82	)
Equity securities		5.16	%		55			(22	)		5.40	%		48			8
Commercial mortgage and other loans		5.30	%		269			27			5.84	%		254			9
Policy loans		4.66	%		72			—			5.01	%		65			—
Short-term investments and cash equivalents		0.27	%		9			—			0.28	%		9			—
Other investments		1.77	%		31			(440	)		5.87	%		62			(1,100	)

Gross investment income before investment expenses		3.69	%		2,285			(485	)		4.22	%		1,970			(1,165	)
Investment expenses		-0.11	%		(58	)		—			-0.14	%		(55	)		—

Subtotal		3.58	%		2,227			(485	)		4.07	%		1,915			(1,165	)

Investment results of other entities and operations (2)					307			10						322			(23	)
Less, investment income related to adjusted operating income reconciling items					18									(6	)

Total					2,552			(475	)					2,231			(1,188	)


	Twelve Months Ended December 31
	2011									2010
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)(4)			Amount			Realized Gains / (Losses)			Yield (3)			Amount			Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities		3.83	%		7,063			(164	)		4.33	%		5,927			(426	)
Equity securities		5.93	%		240			(120	)		6.33	%		212			11
Commercial mortgage and other loans		5.44	%		1,033			74			5.84	%		966			67
Policy loans		4.71	%		277			—			5.00	%		243			—
Short-term investments and cash equivalents		0.36	%		46			1			0.29	%		36			—
Other investments		3.64	%		246			2,024			4.71	%		193			573

Gross investment income before investment expenses		3.83	%		8,905			1,815			4.27	%		7,577			225
Investment expenses		-0.12	%		(230	)		—			-0.14	%		(208	)		—

Subtotal		3.71	%		8,675			1,815			4.13	%		7,369			225

Investment results of other entities and operations (2)					1,235			171						1,249			31
Less, investment income related to adjusted operating income reconciling items					7									(20	)

Total					9,917			1,986						8,598			256

(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 ten months of income and assets related to the Star and Edison businesses.

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	2011									2010
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (1)			Amount			Realized Gains / (Losses)			Yield (1)			Amount			Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities		2.70	%		797			(86	)		2.79	%		465			(90	)
Equity securities		3.25	%		18			(17	)		2.42	%		10			(1	)
Commercial mortgage and other loans		4.06	%		57			10			4.52	%		46			(5	)
Policy loans		3.35	%		24			—			3.87	%		20			—
Short-term investments and cash equivalents		0.40	%		3			—			0.18	%		1			—
Other investments (3)		1.47	%		18			(9	)		7.57	%		42			(99	)

Gross investment income before investment expenses		2.68	%		917			(102	)		2.97	%		584			(195	)
Investment expenses		-0.11	%		(37	)		—			-0.14	%		(28	)		—

Total		2.57	%		880			(102	)		2.83	%		556			(195	)


	Twelve Months Ended December 31
	2011									2010
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (1)(2)			Amount			Realized Gains / (Losses)			Yield (1)			Amount			Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities		2.66	%		2,844			(323	)		2.81	%		1,733			(488	)
Equity securities		3.33	%		73			(138	)		2.84	%		44			(67	)
Commercial mortgage and other loans		4.10	%		212			24			4.63	%		175			7
Policy loans		3.37	%		90			—			3.85	%		72			—
Short-term investments and cash equivalents		0.62	%		23			1			0.24	%		4			—
Other investments (3)		3.48	%		163			396			6.01	%		132			201

Gross investment income before investment expenses		2.71	%		3,405			(40	)		2.97	%		2,160			(347	)
Investment expenses		-0.11	%		(142	)		—			-0.15	%		(106	)		—

Total		2.60	%		3,263			(40	)		2.82	%		2,054			(347	)

(1)

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

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

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 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		5.30	%		1,052			36			5.46	%		1,067			8
Equity securities		7.22	%		37			(5	)		7.80	%		38			9
Commercial mortgage and other loans		5.76	%		212			17			6.24	%		208			14
Policy loans		5.78	%		48			—			5.75	%		45			—
Short-term investments and cash equivalents		0.23	%		6			—			0.30	%		8			—
Other investments		2.57	%		13			(431	)		3.99	%		20			(1,001	)

Gross investment income before investment expenses		4.92	%		1,368			(383	)		5.12	%		1,386			(970	)
Investment expenses		-0.12	%		(21	)		—			-0.14	%		(27	)		—

Total		4.80	%		1,347			(383	)		4.98	%		1,359			(970	)


	Twelve Months Ended December 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		5.46	%		4,219			159			5.58	%		4,194			62
Equity securities		9.04	%		167			18			9.29	%		168			78
Commercial mortgage and other loans		5.94	%		821			50			6.20	%		791			60
Policy loans		5.81	%		187			—			5.72	%		171			—
Short-term investments and cash equivalents		0.25	%		23			—			0.30	%		32			—
Other investments		4.02	%		83			1,628			3.21	%		61			372

Gross investment income before investment expenses		5.12	%		5,500			1,855			5.16	%		5,417			572
Investment expenses		-0.13	%		(88	)		—			-0.14	%		(102	)		—

Total		4.99	%		5,412			1,855			5.02	%		5,315			572

(1)

(2)

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Years ended December 31							2010												2011
2009			2008				1Q			2Q			3Q			4Q			1Q			2Q			3Q

						*Financial Services Businesses:*
						Pre-tax adjusted operating income (loss) by division:
	1,306			(113	)	U.S. Retirement Solutions and Investment Management Division		496			130			855			624			618			621			43
	893			786		U.S. Individual Life and Group Insurance Division		144			120			251			200			136			179			209
	1,868			1,335		International Insurance Division		491			466			540			588			672			590			751
	(779	)		(247	)	Corporate and other operations		(207	)		(190	)		(287	)		(239	)		(264	)		(233	)		(349	)

	3,288			1,761		Total pre-tax adjusted operating income		924			526			1,359			1,173			1,162			1,157			654
	830			494		Income taxes, applicable to adjusted operating income		246			124			371			325			321			316			150

	2,458			1,267		Financial Services Businesses after-tax adjusted operating income		678			402			988			848			841			841			504


						Reconciling items:
	(1,708	)		(2,484	)	Realized investment gains (losses), net, and related charges and adjustments		(60	)		620			284			(906	)		(360	)		(11	)		1,624
	1,601			(1,734	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net		252			79			388			(218	)		(17	)		177			10
	(899	)		1,163		Change in experience-rated contractholder liabilities due to asset value changes		(320	)		(144	)		(367	)		200			34			(178	)		68
	2,086			(678	)	Divested businesses		(10	)		3			(10	)		(8	)		(9	)		—			24
	(2,364	)		654		Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(36	)		18			(18	)		(62	)		(133	)		18			(88	)

	(1,284	)		(3,079	)	Total reconciling items, before income taxes		(174	)		576			277			(994	)		(485	)		6			1,638
	(699	)		(1,009	)	Income taxes, not applicable to adjusted operating income		7			177			115			(307	)		(139	)		14			685

	(585	)		(2,070	)	Total reconciling items, after income taxes		(181	)		399			162			(687	)		(346	)		(8	)		953

	1,873			(803	)	Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		497			801			1,150			161			495			833			1,457
	1,557			(483	)	Equity in earnings of operating joint ventures, net of taxes and earnings from continuing operations attributable to noncontrolling interests		36			(18	)		16			39			80			(18	)		57

	3,430			(1,286	)	Income (loss) from continuing operations attributable to Prudential Financial, Inc.		533			783			1,166			200			575			815			1,514
	(34	)		36		Earnings from continuing operations attributable to noncontrolling interests		(26	)		27			(2	)		12			25			29			10

	3,396			(1,250	)	Income (loss) from continuing operations (after-tax) of Financial Services Businesses		507			810			1,164			212			600			844			1,524
	(19	)		146		Income (loss) from discontinued operations, net of taxes, attributable to Prudential Financial, Inc.		3			15			1			13			14			16			(9	)

	3,377			(1,104	)	Net income (loss) of Financial Services Businesses		510			825			1,165			225			614			860			1,515
	(34	)		36		Less: Income (loss) attributable to noncontrolling interests		(26	)		27			(2	)		12			25			29			10

	3,411			(1,140	)	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		536			798			1,167			213			589			831			1,505


	11.16%			6.04%		Operating Return on Average Equity (based on adjusted operating income)		10.72	%		6.25	%		14.43	%		11.84	%		11.47	%		11.11	%		6.50	%

						*Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc:*
	3,411			(1,140	)	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		536			798			1,167			213			589			831			1,505
	(287	)		23		Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		161			279			77			(36	)		19			7			29

	3,124			(1,117	)	Consolidated net income (loss) attributable to Prudential Financial, Inc.		697			1,077			1,244			177			608			838			1,534

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Years ended December 31							2010												2011
2009			2008				1Q			2Q			3Q			4Q			1Q			2Q			3Q
						*Earnings per share of Common Stock (diluted): (1)*
	5.53			3.03		Financial Services Businesses after-tax adjusted operating income		1.45			0.87			2.09			1.76			1.71			1.70			1.04

						Reconciling items:
	(3.81	)		(5.73	)	Realized investment gains (losses), net, and related charges and adjustments		(0.13	)		1.32			0.60			(1.87	)		(0.73	)		(0.02	)		3.32
	3.57			(4.00	)	Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.53			0.17			0.82			(0.45	)		(0.03	)		0.36			0.02
	(2.01	)		2.68		Change in experience-rated contractholder liabilities due to asset value changes		(0.68	)		(0.31	)		(0.78	)		0.41			0.07			(0.36	)		0.14
	4.65			(1.56	)	Divested businesses		(0.02	)		0.01			(0.02	)		(0.02	)		(0.02	)		—			0.05
	(0.02	)		0.01		Difference in earnings allocated to participating unvested share-based payment awards		—			(0.01	)		—			0.01			0.01			—			(0.03	)

	2.38			(8.60	)	Total reconciling items, before income taxes		(0.30	)		1.18			0.62			(1.92	)		(0.70	)		(0.02	)		3.50
	0.24			(2.70	)	Income taxes, not applicable to adjusted operating income		—			0.39			0.25			(0.58	)		(0.16	)		0.03			1.46

	2.14			(5.90	)	Total reconciling items, after income taxes		(0.30	)		0.79			0.37			(1.34	)		(0.54	)		(0.05	)		2.04

	7.67			(2.87	)	Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		1.15			1.66			2.46			0.42			1.17			1.65			3.08
	(0.04	)		0.34		Income (loss) from discontinued operations, net of taxes, attributable to Prudential Financial, Inc.		—			0.04			—			0.03			0.03			0.03			(0.02	)

	7.63			(2.53	)	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		1.15			1.70			2.46			0.45			1.20			1.68			3.06


	444.6			429.7		Weighted average number of outstanding Common shares (basic)		463.0			464.3			464.8			475.1			484.9			486.0			481.2
	448.2			433.6		Weighted average number of outstanding Common shares (diluted) (2)		471.5			468.2			473.2			483.5			493.9			494.8			489.3

	43			55		Direct equity adjustments for earnings per share calculation		10			10			9			7			9			8			8
	5			—		Earnings related to interest, net of tax, on exchangeable surplus notes (2)		4			5			4			4			4			5			4

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	28			7		Financial Services Businesses after-tax adjusted operating income		8			6			13			10			11			12			6
	39			1		Income from continuing operations (after-tax) of Financial Services Businesses		7			10			15			7			8			11			20

(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)

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 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Years ended December 31							2010												2011
2009			2008				1Q			2Q			3Q			4Q			1Q			2Q			3Q
						Revenues (1):
	13,283			11,845		Premiums		3,528			3,806			3,967			3,941			4,828			5,506			5,421
	3,033			3,123		Policy charges and fee income		860			888			803			929			982			1,038			979
	8,219			8,370		Net investment income		2,072			2,105			2,190			2,231			2,304			2,525			2,536
	2,288			2,429		Asset management fees, commissions and other income		684			814			796			916			1,040			1,031			944

	26,823			25,767		Total revenues		7,144			7,613			7,756			8,017			9,154			10,100			9,880


						Benefits and Expenses (1):
	12,691			12,519		Insurance and annuity benefits		3,428			3,993			3,752			3,704			4,644			5,160			5,419
	3,376			3,399		Interest credited to policyholders’ account balances		846			875			820			877			829			934			1,040
	955			1,134		Interest expense		251			258			267			273			279			290			296
	(2,769	)		(2,302	)	Deferral of acquisition costs		(717	)		(746	)		(780	)		(849	)		(908	)		(985	)		(1,006	)
	1,266			1,553		Amortization of acquisition costs		352			539			99			378			466			539			499
	8,016			7,703		General and administrative expenses		2,060			2,168			2,239			2,461			2,682			3,005			2,978

	23,535			24,006		Total benefits and expenses		6,220			7,087			6,397			6,844			7,992			8,943			9,226


	3,288			1,761		Adjusted operating income before income taxes		924			526			1,359			1,173			1,162			1,157			654


						Reconciling items:
	(1,216	)		(2,777	)	Realized investment gains (losses), net, and related adjustments		67			1,252			166			(1,369	)		(356	)		158			3,376
	(492	)		293		Related charges		(127	)		(632	)		118			463			(4	)		(169	)		(1,752	)

	(1,708	)		(2,484	)	Total realized investment gains (losses), net, and related charges and adjustments		(60	)		620			284			(906	)		(360	)		(11	)		1,624


	1,601			(1,734	)	Investment gains on trading account assets supporting insurance liabilities, net		252			79			388			(218	)		(17	)		177			10
	(899	)		1,163		Change in experience-rated contractholder liabilities due to asset value changes		(320	)		(144	)		(367	)		200			34			(178	)		68
	2,086			(678	)	Divested businesses		(10	)		3			(10	)		(8	)		(9	)		—			24
	(2,364	)		654		Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(36	)		18			(18	)		(62	)		(133	)		18			(88	)

	(1,284	)		(3,079	)	Total reconciling items, before income taxes		(174	)		576			277			(994	)		(485	)		6			1,638


	2,004			(1,318	)	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		750			1,102			1,636			179			677			1,163			2,292
	131			(515	)	Income tax expense (benefit)		253			301			486			18			182			330			835

	1,873			(803	)	Income (loss) from continuing operations before equity in earnings of operating joint ventures		497			801			1,150			161			495			833			1,457

(1)

Page 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS

(in millions)


Years ended December 31							2010												2011
2009			2008				1Q			2Q			3Q			4Q			1Q			2Q			3Q
						Revenues (1):
	(22	)		(23	)	Premiums		(7	)		(7	)		(6	)		(7	)		(10	)		(11	)		4
	(39	)		(31	)	Policy charges and fee income		(8	)		(7	)		(19	)		(8	)		(8	)		(9	)		(9	)
	237			556		Net investment income		67			86			83			85			88			112			90
	(429	)		(418	)	Asset management fees, commissions and other income		(120	)		(116	)		(124	)		(121	)		(127	)		(127	)		(123	)

	(253	)		84		Total revenues		(68	)		(44	)		(66	)		(51	)		(57	)		(35	)		(38	)


						Benefits and Expenses (1):
	25			176		Insurance and annuity benefits		—			31			16			(2	)		2			7			149
	(121	)		(192	)	Interest credited to policyholders’ account balances		(22	)		(19	)		(16	)		(13	)		(10	)		(8	)		(9	)
	702			686		Interest expense		193			198			197			200			200			206			213
	39			46		Deferral of acquisition costs		9			13			12			8			15			10			8
	(25	)		(49	)	Amortization of acquisition costs		(8	)		(16	)		(3	)		(8	)		(10	)		(11	)		(13	)
	(94	)		(336	)	General and administrative expenses		(33	)		(61	)		15			3			10			(6	)		(37	)

	526			331		Total benefits and expenses		139			146			221			188			207			198			311


	(779	)		(247	)	Adjusted operating loss before income taxes		(207	)		(190	)		(287	)		(239	)		(264	)		(233	)		(349	)

(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

Fourth Quarter 2011

LOGO

RECLASSIFIED SUPPLEMENTAL INFORMATION - INTERNATIONAL INSURANCE SEGMENT

(dollar amounts in millions, unless otherwise noted)


Year ended December 31			2010								2011
2009			1Q		2Q		3Q		4Q		1Q		2Q		3Q

		Constant exchange rate basis (1):

		Net premiums, policy charges and fee income:
	4,361	Japan, excluding Gibraltar Life		1,241		1,093		1,145		1,156		1,343		1,173		1,226
	3,237	Gibraltar Life		833		1,008		885		926		1,589		2,367		2,139
	1,356	All other countries		337		362		364		382		355		365		375

	8,954	Total		2,411		2,463		2,394		2,464		3,287		3,905		3,740


		Annualized new business premiums:
	612	Japan, excluding Gibraltar Life		193		144		179		187		218		171		198
	612	Gibraltar Life		170		234		240		253		363		524		537
	271	All other countries		62		62		64		82		79		76		75

	1,495	Total		425		440		483		522		660		771		810


		Annualized new business premiums by distribution channel:
	883	Life Planners		255		206		243		269		297		247		273
	475	Gibraltar Life Advisors		111		147		126		121		155		258		253
	137	Banks		57		80		93		106		132		139		165
	—	Independent Agency		2		7		21		26		76		127		119

	1,495	Total		425		440		483		522		660		771		810


		Face amount of individual policies in force at end of period (in billions) (1)(2):
	310	Japan, excluding Gibraltar Life		313		315		317		320		322		324		326
	230	Gibraltar Life (3)		230		229		229		231		377		375		378
	98	All other countries		99		99		100		100		102		102		103

	638	Total		642		643		646		651		801		801		807

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 85 per U.S. dollar; Korean won 1180 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.

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

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

Page 40

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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 41

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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 42

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

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 10.52% for the twelve months ended December 31, 2011, 9.63% for the twelve months ended December 31, 2010, 6.63% for the three months ended December 31, 2011, 17.58% for the three months ended September 30, 2011, 10.14% for the three months ended June 30, 2011, 7.50% for the three months ended March 31, 2011, 2.63% for the three months ended December 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 43

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2011

LOGO

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of February 8, 2012


	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 February 8, 2012

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 44

PRUDENTIAL FINANCIAL INC - FORM 8-K - EX-99.1 - QUARTERLY FINANCIAL SUPPLEMENT - February 8, 2012

Attached files