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

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EX-99.1 - EX-99.1 - PRUDENTIAL FINANCIAL INC	d577913dex991.htm
8-K - FORM 8-K - PRUDENTIAL FINANCIAL INC	d577913d8k.htm

Exhibit 99.2

Prudential Financial, Inc. (PRU)

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Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

Second Quarter 2013

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.

August 7, 2013

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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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
Sales Results and Supplementary Information		28-29

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

RECLASSIFIED STATEMENTS OF OPERATIONS		35-41

RECLASSIFIED SUPPLEMENTARY INFORMATION		42

KEY DEFINITIONS AND FORMULAS		43-45

RATINGS AND INVESTOR INFORMATION		46

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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This quarterly financial supplement reflects, for all periods presented, the classification of the results for the Company’s wealth management solutions operation, previously reported in the Asset Management segment, as “divested business” and excluded from adjusted operating income as a result of the sale of this operation.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date						% Change			2012									2013
2013			2012			% Change			2Q			3Q			4Q			1Q			2Q

								*Financial Services Businesses:*
								Pre-tax adjusted operating income (loss) by division:
	1,626			1,015			60%	U.S. Retirement Solutions and Investment Management Division		306			506			680			779			847
	309			166			86%	U.S. Individual Life and Group Insurance Division		94			147			87			146			163
	1,727			1,275			35%	International Insurance Division		678			782			647			877			850
	(661	)		(552	)		-20%	Corporate and other operations		(225	)		(414	)		(372	)		(314	)		(347	)

	3,001			1,904			58%	Total pre-tax adjusted operating income		853			1,021			1,042			1,488			1,513
	829			489			70%	Income taxes, applicable to adjusted operating income		205			270			239			406			423

	2,172			1,415			53%	Financial Services Businesses after-tax adjusted operating income		648			751			803			1,082			1,090


								Reconciling items:
	(5,233	)		192			-2826%	Realized investment gains (losses), net, and related charges and adjustments		2,030			(1,303	)		(1,698	)		(3,003	)		(2,230	)
	(376	)		238			-258%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		4			264			108			95			(471	)
	328			(192	)		271%	Change in experience-rated contractholder liabilities due to asset value changes		54			(254	)		(94	)		(143	)		471
	(55	)		23			-339%	Divested businesses		22			(687	)		49			29			(84	)
	1			13			-92%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		8			(40	)		26			(30	)		31

	(5,335	)		274			-2047%	Total reconciling items, before income taxes		2,118			(2,020	)		(1,609	)		(3,052	)		(2,283	)
	(1,938	)		422			-559%	Income taxes, not applicable to adjusted operating income		536			(623	)		(614	)		(1,241	)		(697	)

	(3,397	)		(148	)		-2195%	Total reconciling items, after income taxes		1,582			(1,397	)		(995	)		(1,811	)		(1,586	)

	(1,225	)		1,267			-197%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		2,230			(646	)		(192	)		(729	)		(496	)
	(23	)		(13	)		-77%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(9	)		20			(25	)		7			(30	)

	(1,248	)		1,254			-200%	Income (loss) from continuing operations attributable to Prudential Financial, Inc.		2,221			(626	)		(217	)		(722	)		(526	)
	77			26			196%	Earnings attributable to noncontrolling interests		15			25			27			42			35

	(1,171	)		1,280			-191%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses		2,236			(601	)		(190	)		(680	)		(491	)
	3			15			-80%	Income (loss) from discontinued operations, net of taxes		8			(1	)		3			1			2

	(1,168	)		1,295			-190%	Net income (loss) of Financial Services Businesses		2,244			(602	)		(187	)		(679	)		(489	)
	77			26			196%	Less: Income attributable to noncontrolling interests		15			25			27			42			35

	(1,245	)		1,269			-198%	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		2,229			(627	)		(214	)		(721	)		(524	)

	16.6%			10.3%				Operating Return on Average Equity (based on adjusted operating income)		9.5%			10.7%			11.7%			16.3%			16.9%

								*Reconciliation to Consolidated Net Income (Loss) Attributable to Prudential Financial, Inc:*
	(1,245	)		1,269				Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		2,229			(627	)		(214	)		(721	)		(524	)
	18			16				Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		(5	)		43			(18	)		15			3

	(1,227	)		1,285				Consolidated net income (loss) attributable to Prudential Financial, Inc.		2,224			(584	)		(232	)		(706	)		(521	)

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date							2012									2013
2013			2012				2Q			3Q			4Q			1Q			2Q

						Earnings per share of Common Stock (diluted): (1)
	4.59			3.00		Financial Services Businesses after-tax adjusted operating income		1.38			1.59			1.70			2.29			2.30

						Reconciling items:
	(11.09	)		0.40		Realized investment gains (losses), net, and related charges and adjustments		4.29			(2.76	)		(3.61	)		(6.37	)		(4.72	)
	(0.80	)		0.50		Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.01			0.56			0.23			0.20			(1.00	)
	0.70			(0.40	)	Change in experience-rated contractholder liabilities due to asset value changes		0.11			(0.54	)		(0.20	)		(0.30	)		1.00
	(0.12	)		0.05		Divested businesses		0.05			(1.46	)		0.10			0.06			(0.18	)
	0.04			—		Difference in earnings allocated to participating unvested share-based payment awards		(0.03	)		0.02			—			0.02			0.02

	(11.27	)		0.55		Total reconciling items, before income taxes		4.43			(4.17	)		(3.48	)		(6.39	)		(4.88	)
	(3.99	)		0.89		Income taxes, not applicable to adjusted operating income		1.14			(1.24	)		(1.30	)		(2.55	)		(1.44	)

	(7.28	)		(0.34	)	Total reconciling items, after income taxes		3.29			(2.93	)		(2.18	)		(3.84	)		(3.44	)

	(2.69	)		2.66		Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		4.67			(1.34	)		(0.48	)		(1.55	)		(1.14	)
	0.01			0.03		Income from discontinued operations, net of taxes		0.02			—			—			—			0.01

	(2.68	)		2.69		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		4.69			(1.34	)		(0.48	)		(1.55	)		(1.13	)


	464.2			467.7		Weighted average number of outstanding Common shares (basic)		466.1			464.4			462.6			464.3			464.1

	471.9			475.5		Weighted average number of outstanding Common shares (diluted)		473.5			471.8			469.9			471.7			472.2

	5			16		Direct equity adjustments for earnings per share calculation		8			4			—			4			1

	9			9		Earnings related to interest, net of tax, on exchangeable surplus notes		5			4			4			4			5

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	21			14		Financial Services Businesses after-tax adjusted operating income		6			8			7			10			11
	4			13		Income from continuing operations (after-tax) of Financial Services Businesses		21			—			7			2			2

(1)

Diluted share count used in the diluted earnings per share calculation for GAAP measures is equal to weighted average basic common shares for the three months ended September 30, 2012, December 31, 2012, March 31, 2013, and June 30, 2013, as well as for the six months ended June 30, 2013 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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date					2012							2013
2013		2012			2Q		3Q		4Q			1Q			2Q

				*Financial Services Businesses Capitalization Data (1):*
				Senior Debt:
				Short-term debt		3,226		3,013		2,409			2,153			2,545
				Long-term debt		21,030		19,576		18,460			18,009			17,083
				Junior Subordinated Long-Term Debt		1,519		2,519		4,594			5,804			4,884

				Attributed Equity:
				Including accumulated other comprehensive income		36,593		37,189		37,078			38,478			33,749

				Excluding accumulated other comprehensive income (3)		28,687		27,976		27,088			26,265			25,423
				Amount included above for foreign currency exchange rate remeasurement (4)		1,039		813		(179	)		(1,782	)		(2,796	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (4)		27,648		27,163		27,267			28,047			28,219


				Book value per share of Common Stock:
				Including accumulated other comprehensive income		78.14		79.63		79.19			81.96			71.93

				Excluding accumulated other comprehensive income (3)		61.26		59.91		57.86			55.94			54.18
				Amount included above for foreign currency exchange rate remeasurement (4)		2.22		1.74		(0.38	)		(3.80	)		(5.96	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (4)		59.04		58.17		58.24			59.74			60.14


				Number of diluted shares at end of period (2)		468.3		467.0		468.2			469.5			469.2

				*Common Stock Price Range (based on closing price):*
	73.03		64.65	High		64.50		58.63		59.89			60.41			73.03
	54.64		44.74	Low		44.74		45.46		48.74			54.64			54.91
	73.03		48.43	Close		48.43		54.51		53.33			58.99			73.03


				*Common Stock market capitalization (1)*		22,472		25,184		24,692			27,448			33,813

(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.

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

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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OPERATIONS HIGHLIGHTS


Year-to-date					2012						2013
2013		2012			2Q		3Q		4Q		1Q		2Q

				*Assets Under Management and Administration ($ billions) (1) (2):*
				Assets Under Management:
				Managed by U.S. Retirement Solutions and Investment Management Division:
				Asset Management Segment - Investment Management & Advisory Services
				Institutional customers		289.2		303.1		313.7		323.2		319.1
				Retail customers		131.7		133.9		138.7		143.8		152.4
				General account		331.4		340.7		374.6		373.3		354.5

				Total Investment Management and Advisory Services		752.3		777.7		827.0		840.3		826.0
				Non-proprietary assets under management		176.2		193.0		196.8		180.7		174.4

				Total managed by U.S. Retirement Solutions and Investment Management Division		928.5		970.7		1,023.8		1,021.0		1,000.4
				Managed by U.S. Individual Life and Group Insurance Division		13.6		13.7		16.4		22.6		21.5
				Managed by International Insurance Division		19.0		20.5		20.1		17.8		21.8

				Total assets under management		961.1		1,004.9		1,060.3		1,061.4		1,043.7
				Client assets under administration		67.6		67.8		69.2		105.5		106.2

				Total assets under management and administration		1,028.7		1,072.7		1,129.5		1,166.9		1,149.9


				Assets managed or administered for customers outside of the United States at end of period		223.0		237.3		243.8		241.2		236.7

				*Distribution Representatives (1):*
				Prudential Agents		2,607		2,662		2,615		2,701		2,724
				International Life Planners		6,806		6,929		7,058		7,101		7,113
				Gibraltar Life Consultants		12,031		11,683		11,333		10,252		9,795

	48		50	*Prudential Agent productivity ($ thousands)*		54		58		64		48		49

(1)	As of end of period.

(2)	At fair market value.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date						% Change			2012									2013
2013			2012			% Change			2Q			3Q			4Q			1Q			2Q

								Revenues (1):
	12,444			12,675			-2%	Premiums		6,695			8,263			41,145			6,329			6,115
	2,885			2,163			33%	Policy charges and fee income		1,085			1,251			1,183			1,425			1,460
	5,722			5,026			14%	Net investment income		2,526			2,631			2,713			2,821			2,901
	2,490			1,847			35%	Asset management fees, commissions and other income		925			1,092			1,082			1,243			1,247

	23,541			21,711			8%	Total revenues		11,231			13,237			46,123			11,818			11,723


								Benefits and Expenses (1):
	12,503			11,888			5%	Insurance and annuity benefits		6,404			8,229			40,783			6,332			6,171
	1,895			1,919			-1%	Interest credited to policyholders’ account balances		971			941			944			966			929
	658			619			6%	Interest expense		311			311			313			327			331
	(1,570	)		(1,720	)		9%	Deferral of acquisition costs		(911	)		(882	)		(932	)		(864	)		(706	)
	977			919			6%	Amortization of acquisition costs		513			466			581			475			502
	6,077			6,182			-2%	General and administrative expenses		3,090			3,151			3,392			3,094			2,983

	20,540			19,807			4%	Total benefits and expenses		10,378			12,216			45,081			10,330			10,210

	3,001			1,904			58%	Adjusted operating income before income taxes		853			1,021			1,042			1,488			1,513


								Reconciling items:
	(6,003	)		342			-1855%	Realized investment gains (losses), net, and related adjustments		3,058			(1,951	)		(2,057	)		(3,305	)		(2,698	)
	770			(150	)		613%	Related charges		(1,028	)		648			359			302			468

	(5,233	)		192			-2826%	Total realized investment gains (losses), net, and related charges and adjustments		2,030			(1,303	)		(1,698	)		(3,003	)		(2,230	)

	(376	)		238			-258%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		4			264			108			95			(471	)
	328			(192	)		271%	Change in experience-rated contractholder liabilities due to asset value changes		54			(254	)		(94	)		(143	)		471
	(55	)		23			-339%	Divested businesses		22			(687	)		49			29			(84	)
	1			13			-92%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		8			(40	)		26			(30	)		31

	(5,335	)		274			-2047%	Total reconciling items, before income taxes		2,118			(2,020	)		(1,609	)		(3,052	)		(2,283	)


	(2,334	)		2,178			-207%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		2,971			(999	)		(567	)		(1,564	)		(770	)
	(1,109	)		911			-222%	Income tax expense (benefit)		741			(353	)		(375	)		(835	)		(274	)

	(1,225	)		1,267			-197%	Income (loss) from continuing operations before equity in earnings of operating joint ventures		2,230			(646	)		(192	)		(729	)		(496	)

(1)

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	06/30/2012		09/30/2012		12/31/2012		03/31/2013		06/30/2013

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $202,699; $208,474; $236,517; $232,366; $226,247)		217,232		226,015		254,917		254,222		242,059
Fixed maturities, held to maturity, at amortized cost (fair value $5,041; $5,018; $4,511; $4,186; $3,769)		4,771		4,720		4,268		3,878		3,562
Trading account assets supporting insurance liabilities, at fair value		19,729		20,132		20,590		20,890		20,658
Other trading account assets, at fair value		5,349		5,610		6,053		6,584		5,809
Equity securities, available for sale, at fair value (cost $4,188; $4,253; $4,302; $4,070; $4,102)		4,651		4,821		5,052		5,315		5,289
Commercial mortgage and other loans		26,643		27,057		27,125		28,744		28,320
Policy loans		6,291		6,551		6,455		6,861		6,679
Other long-term investments		5,655		6,133		8,016		7,689		7,847
Short-term investments		8,253		7,825		5,186		4,700		6,344

Total investments		298,574		308,864		337,662		338,883		326,567
Cash and cash equivalents		13,390		13,102		17,546		14,023		12,425
Accrued investment income		2,180		2,230		2,534		2,523		2,528
Deferred policy acquisition costs		12,612		13,250		13,688		13,968		14,547
Value of business acquired		3,510		3,516		3,248		4,167		3,846
Other assets		11,496		11,901		11,376		13,462		13,114
Separate account assets		235,268		247,510		253,254		266,308		264,054

Total assets		577,030		600,373		639,308		653,334		637,081


Liabilities:
Future policy benefits		123,555		132,209		165,212		160,290		153,683
Policyholders’ account balances		128,423		130,227		128,987		132,913		131,222
Securities sold under agreements to repurchase		4,656		4,662		3,436		3,679		3,707
Cash collateral for loaned securities		2,247		2,442		2,864		2,375		4,927
Income taxes		9,081		9,323		9,058		8,501		5,619
Senior short-term debt		3,226		3,013		2,409		2,153		2,545
Senior long-term debt		21,030		19,576		18,460		18,009		17,083
Junior subordinated long-term debt		1,519		2,519		4,594		5,804		4,884
Notes issued by consolidated variable interest entities		537		636		1,577		1,896		2,147
Other liabilities		10,286		10,376		11,663		12,225		12,701
Separate account liabilities		235,268		247,510		253,254		266,308		264,054

Total liabilities		539,828		562,493		601,514		614,153		602,572


Attributed Equity:
Accumulated other comprehensive income		7,906		9,213		9,990		12,213		8,326
Other attributed equity		28,687		27,976		27,088		26,265		25,423

Total attributed equity		36,593		37,189		37,078		38,478		33,749

Noncontrolling Interest		609		691		716		703		760

Total Equity		37,202		37,880		37,794		39,181		34,509

Total liabilities and equity		577,030		600,373		639,308		653,334		637,081

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended June 30, 2013
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		6,115			256			1,294			4,570			(5	)
Policy charges and fee income		1,460			654			654			162			(10	)
Net investment income		2,901			1,236			504			1,067			94
Asset management fees, commissions and other income		1,247			1,159			159			141			(212	)

Total revenues		11,723			3,305			2,611			5,940			(133	)


Benefits and Expenses (1):
Insurance and annuity benefits		6,171			683			1,578			3,904			6
Interest credited to policyholders’ account balances		929			495			201			233			—
Interest expense		331			31			98			—			202
Deferral of acquisition costs		(706	)		(141	)		(186	)		(397	)		18
Amortization of acquisition costs		502			137			102			275			(12	)
General and administrative expenses		2,983			1,253			655			1,075			—

Total benefits and expenses		10,210			2,458			2,448			5,090			214


Adjusted operating income (loss) before income taxes		1,513			847			163			850			(347	)


	Quarter Ended June 30, 2012
	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		6,695			248			1,290			5,164			(7	)
Policy charges and fee income		1,085			556			389			150			(10	)
Net investment income		2,526			983			402			1,030			111
Asset management fees, commissions and other income		925			915			114			62			(166	)

Total revenues		11,231			2,702			2,195			6,406			(72	)


Benefits and Expenses (1):
Insurance and annuity benefits		6,404			611			1,452			4,303			38
Interest credited to policyholders’ account balances		971			568			139			270			(6	)
Interest expense		311			39			80			(1	)		193
Deferral of acquisition costs		(911	)		(288	)		(100	)		(542	)		19
Amortization of acquisition costs		513			168			77			284			(16	)
General and administrative expenses		3,090			1,298			453			1,414			(75	)

Total benefits and expenses		10,378			2,396			2,101			5,728			153


Adjusted operating income (loss) before income taxes		853			306			94			678			(225	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Six Months Ended June 30, 2013
	Total Financial Services Businesses			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		12,444			401			2,573			9,484			(14	)
Policy charges and fee income		2,885			1,273			1,311			321			(20	)
Net investment income		5,722			2,396			977			2,160			189
Asset management fees, commissions and other income		2,490			2,299			307			325			(441	)

Total revenues		23,541			6,369			5,168			12,290			(286	)


Benefits and Expenses (1):
Insurance and annuity benefits		12,503			1,207			3,183			8,107			6
Interest credited to policyholders’ account balances		1,895			1,001			394			500			—
Interest expense		658			64			194			1			399
Deferral of acquisition costs		(1,570	)		(376	)		(406	)		(824	)		36
Amortization of acquisition costs		977			282			175			545			(25	)
General and administrative expenses		6,077			2,565			1,319			2,234			(41	)

Total benefits and expenses		20,540			4,743			4,859			10,563			375


Adjusted operating income (loss) before income taxes		3,001			1,626			309			1,727			(661	)


	Six Months Ended June 30, 2012
	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		12,675			364			2,559			9,769			(17	)
Policy charges and fee income		2,163			1,100			780			302			(19	)
Net investment income		5,026			1,982			802			2,044			198
Asset management fees, commissions and other income		1,847			1,875			221			108			(357	)

Total revenues		21,711			5,321			4,362			12,223			(195	)


Benefits and Expenses (1):
Insurance and annuity benefits		11,888			862			2,925			8,055			46
Interest credited to policyholders’ account balances		1,919			1,112			272			548			(13	)
Interest expense		619			74			157			—			388
Deferral of acquisition costs		(1,720	)		(553	)		(189	)		(1,012	)		34
Amortization of acquisition costs		919			265			134			544			(24	)
General and administrative expenses		6,182			2,546			897			2,813			(74	)

Total benefits and expenses		19,807			4,306			4,196			10,948			357


Adjusted operating income (loss) before income taxes		1,904			1,015			166			1,275			(552	)

(1)

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

LOGO

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of June 30, 2013
	Total Financial Services Businesses		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		326,567		118,693		44,186		148,996		14,692
Deferred policy acquisition costs		14,547		4,788		3,821		6,206		(268	)
Other assets		31,913		10,881		10,061		9,310		1,661
Separate account assets		264,054		223,864		41,046		1,620		(2,476	)

Total assets		637,081		358,226		99,114		166,132		13,609


Liabilities:
Future policy benefits		153,683		50,179		12,127		88,061		3,316
Policyholders’ account balances		131,222		55,656		27,496		48,066		4
Debt		24,512		4,949		9,259		52		10,252
Other liabilities		29,101		8,810		5,567		11,460		3,264
Separate account liabilities		264,054		223,864		41,046		1,620		(2,476	)

Total liabilities		602,572		343,458		95,495		149,259		14,360


Attributed Equity:
Accumulated other comprehensive income (loss)		8,326		507		614		8,542		(1,337	)
Other attributed equity		25,423		13,500		3,005		8,321		597

Total attributed equity		33,749		14,007		3,619		16,863		(740	)

Noncontrolling Interest		760		761		—		10		(11	)

Total Equity		34,509		14,768		3,619		16,873		(751	)


Total liabilities and equity		637,081		358,226		99,114		166,132		13,609


	As of December 31, 2012
	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		337,662		124,654		36,648		164,144		12,216
Deferred policy acquisition costs		13,688		4,036		3,298		6,589		(235	)
Other assets		34,704		13,958		6,422		11,506		2,818
Separate account assets		253,254		214,416		39,757		1,555		(2,474	)

Total assets		639,308		357,064		86,125		183,794		12,325


Liabilities:
Future policy benefits		165,212		54,799		10,252		96,874		3,287
Policyholders’ account balances		128,987		56,282		18,518		54,172		15
Debt		25,463		4,969		8,428		38		12,028
Other liabilities		28,598		9,308		5,172		13,016		1,102
Separate account liabilities		253,254		214,416		39,757		1,555		(2,474	)

Total liabilities		601,514		339,774		82,127		165,655		13,958


Attributed Equity:
Accumulated other comprehensive income (loss)		9,990		2,541		1,728		7,359		(1,638	)
Other attributed equity		27,088		14,023		2,270		10,776		19

Total attributed equity		37,078		16,564		3,998		18,135		(1,619	)

Noncontrolling Interest		716		726		—		4		(14	)

Total Equity		37,794		17,290		3,998		18,139		(1,633	)


Total liabilities and equity		639,308		357,064		86,125		183,794		12,325

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

LOGO

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of June 30, 2013								As of December 31, 2012
	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		573		5,375		4,884		10,832		668		5,381		4,594		10,643
Operating Debt - Investment related		1,275		8,153		—		9,428		1,258		9,203		—		10,461
Operating Debt - Specified businesses		697		3,555		—		4,252		483		3,876		—		4,359
Limited recourse and non-recourse borrowing		—		—		—		—		—		—		—		—

Total debt - Financial Services Businesses		2,545		17,083		4,884		24,512		2,409		18,460		4,594		25,463

Closed Block Business
Investment related		—		—		—		—		—		—		—		—
Limited recourse and non-recourse borrowing		75		1,675		—		1,750		75		1,675		—		1,750

Total debt		75		1,675		—		1,750		75		1,675		—		1,750


	As of June 30, 2013								As of December 31, 2012
	Prudential Financial, Inc.		The Prudential Insurance Co. of America (1)(2)		Other Affiliates		Total		Prudential Financial, Inc.		The Prudential Insurance Co. of America (1)(2)		Other Affiliates		Total
Financial Services Businesses
*Borrowings by sources:*
Capital Debt		9,401		1,042		389		10,832		9,149		1,042		452		10,643
Operating Debt - Investment related		5,499		718		3,211		9,428		6,955		293		3,213		10,461
Operating Debt - Specified businesses		2,623		1,426		203		4,252		2,740		1,468		151		4,359
Limited recourse and non-recourse borrowing		—		—		—		—		—		—		—		—

Total debt - Financial Services Businesses		17,523		3,186		3,803		24,512		18,844		2,803		3,816		25,463

(1)	Includes Prudential Funding, LLC.

(2)	Capital debt at Prudential Insurance Co. of America includes $940 million of Surplus Notes for June 30, 2013 and December 31, 2012, respectively.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

LOGO

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

(in millions)


Year-to-date						% Change			2012									2013
2013			2012			% Change			2Q			3Q			4Q			1Q			2Q

								Revenues (1):
	401			364			10%	Premiums		248			161			31,979			145			256
	1,273			1,100			16%	Policy charges and fee income		556			584			598			619			654
	2,396			1,982			21%	Net investment income		983			1,002			1,096			1,160			1,236
	2,299			1,875			23%	Asset management fees, commissions and other income		915			1,074			1,107			1,140			1,159

	6,369			5,321			20%	Total revenues		2,702			2,821			34,780			3,064			3,305


								Benefits and Expenses (1):
	1,207			862			40%	Insurance and annuity benefits		611			736			32,292			524			683
	1,001			1,112			-10%	Interest credited to policyholders’ account balances		568			504			531			506			495
	64			74			-14%	Interest expense		39			37			33			33			31
	(376	)		(553	)		32%	Deferral of acquisition costs		(288	)		(305	)		(233	)		(235	)		(141	)
	282			265			6%	Amortization of acquisition costs		168			(20	)		166			145			137
	2,565			2,546			1%	General and administrative expenses		1,298			1,363			1,311			1,312			1,253

	4,743			4,306			10%	Total benefits and expenses		2,396			2,315			34,100			2,285			2,458

	1,626			1,015			60%	Adjusted operating income before income taxes		306			506			680			779			847

(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

Second Quarter 2013

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

(in millions)


	Six Months Ended June 30, 2013												Quarter Ended June 30, 2013
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management			Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		401			53			348			—			256			29			227			—
Policy charges and fee income		1,273			1,171			102			—			654			600			54			—
Net investment income		2,396			357			2,001			38			1,236			181			1,035			20
Asset management fees, commissions and other income		2,299			606			406			1,287			1,159			309			205			645

Total revenues		6,369			2,187			2,857			1,325			3,305			1,119			1,521			665


Benefits and Expenses (1):
Insurance and annuity benefits		1,207			115			1,092			—			683			73			610			—
Interest credited to policyholders’ account balances		1,001			231			770			—			495			113			382			—
Interest expense		64			45			13			6			31			22			6			3
Deferral of acquisition costs		(376	)		(350	)		(13	)		(13	)		(141	)		(127	)		(8	)		(6	)
Amortization of acquisition costs		282			258			11			13			137			124			6			7
General and administrative expenses		2,565			1,116			477			972			1,253			514			246			493

Total benefits and expenses		4,743			1,415			2,350			978			2,458			719			1,242			497

Adjusted operating income before income taxes		1,626			772			507			347			847			400			279			168


	Six Months Ended June 30, 2012												Quarter Ended June 30, 2012
	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		364			54			310			—			248			27			221			—
Policy charges and fee income		1,100			1,000			100			—			556			506			50			—
Net investment income		1,982			388			1,556			38			983			191			777			15
Asset management fees, commissions and other income		1,875			484			383			1,008			915			244			194			477

Total revenues		5,321			1,926			2,349			1,046			2,702			968			1,242			492


Benefits and Expenses (1):
Insurance and annuity benefits		862			133			729			—			611			178			433			—
Interest credited to policyholders’ account balances		1,112			259			853			—			568			142			426			—
Interest expense		74			56			10			8			39			28			6			5
Deferral of acquisition costs		(553	)		(528	)		(12	)		(13	)		(288	)		(274	)		(8	)		(6	)
Amortization of acquisition costs		265			243			10			12			168			157			5			6
General and administrative expenses		2,546			1,235			456			855			1,298			630			233			435

Total benefits and expenses		4,306			1,398			2,046			862			2,396			861			1,095			440

Adjusted operating income before income taxes		1,015			528			303			184			306			107			147			52

(1)

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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

(in millions)


Year-to-date							2012									2013
2013			2012				2Q			3Q			4Q			1Q			2Q

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	131,608			109,743		Beginning total account value		120,276			120,326			128,949			131,608			139,034
	6,647			10,287		Sales		5,344			5,912			3,778			4,208			2,439
	(3,674	)		(3,302	)	Surrenders and withdrawals		(1,626	)		(1,579	)		(1,765	)		(1,776	)		(1,898	)

	2,973			6,985		Net sales		3,718			4,333			2,013			2,432			541
	(636	)		(573	)	Benefit payments		(288	)		(283	)		(313	)		(310	)		(326	)

	2,337			6,412		Net flows		3,430			4,050			1,700			2,122			215
	5,373			5,429		Change in market value, interest credited, and other		(2,742	)		5,264			1,687			6,039			(666	)
	(1,543	)		(1,258	)	Policy charges		(638	)		(691	)		(728	)		(735	)		(808	)

	137,775			120,326		Ending total account value		120,326			128,949			131,608			139,034			137,775


						Fixed Annuities:
	3,734			3,792		Beginning total account value		3,778			3,768			3,756			3,734			3,714
	30			30		Sales		14			14			11			16			14
	(79	)		(77	)	Surrenders and withdrawals		(34	)		(35	)		(48	)		(41	)		(38	)

	(49	)		(47	)	Net redemptions		(20	)		(21	)		(37	)		(25	)		(24	)
	(167	)		(145	)	Benefit payments		(62	)		(68	)		(68	)		(71	)		(96	)

	(216	)		(192	)	Net flows		(82	)		(89	)		(105	)		(96	)		(120	)
	182			169		Interest credited and other		73			78			83			77			105
	(1	)		(1	)	Policy charges		(1	)		(1	)		—			(1	)		—

	3,699			3,768		Ending total account value		3,768			3,756			3,734			3,714			3,699


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (1):
	1,250			1,563		Insurance Agents		799			903			557			703			547
	1,387			2,532		Wirehouses		1,299			1,471			929			923			464
	2,944			4,441		Independent Financial Planners		2,338			2,706			1,661			1,935			1,009
	1,096			1,781		Bank Distribution		922			846			642			663			433

	6,677			10,317		Total		5,358			5,926			3,789			4,224			2,453

(1)	Amounts represent gross sales.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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

(in millions)


Year-to-date							2012									2013
2013			2012				2Q			3Q			4Q			1Q			2Q

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	11,564			12,830		Beginning balance		12,277			12,355			11,929			11,564			11,148
	746			1,210		Premiums and deposits		662			674			476			488			258
	(513	)		(531	)	Surrenders and withdrawals		(253	)		(239	)		(288	)		(268	)		(245	)

	233			679		Net sales		409			435			188			220			13
	(205	)		(185	)	Benefit payments		(84	)		(86	)		(86	)		(89	)		(116	)

	28			494		Net flows		325			349			102			131			(103	)
	178			207		Interest credited and other		111			97			70			86			92
	(866	)		(1,175	)	Net transfers to separate account		(357	)		(871	)		(537	)		(632	)		(234	)
	(1	)		(1	)	Policy charges		(1	)		(1	)		—			(1	)		—

	10,903			12,355		Ending balance		12,355			11,929			11,564			11,148			10,903


						Account Values in Separate Account:
	123,778			100,705		Beginning balance		111,777			111,739			120,776			123,778			131,600
	5,931			9,107		Premiums and deposits		4,696			5,252			3,313			3,736			2,195
	(3,240	)		(2,848	)	Surrenders and withdrawals		(1,407	)		(1,375	)		(1,525	)		(1,549	)		(1,691	)

	2,691			6,259		Net sales		3,289			3,877			1,788			2,187			504
	(598	)		(533	)	Benefit payments		(266	)		(265	)		(295	)		(292	)		(306	)

	2,093			5,726		Net flows		3,023			3,612			1,493			1,895			198
	5,377			5,391		Change in market value, interest credited and other		(2,780	)		5,245			1,700			6,030			(653	)
	866			1,175		Net transfers from general account		357			871			537			632			234
	(1,543	)		(1,258	)	Policy charges		(638	)		(691	)		(728	)		(735	)		(808	)

	130,571			111,739		Ending balance		111,739			120,776			123,778			131,600			130,571

(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

Second Quarter 2013

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

(in millions)


	2012						2013
	2Q		3Q		4Q		1Q		2Q

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

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		8,368		8,224		7,947		7,764		7,290
Guaranteed minimum withdrawal benefits		984		980		947		945		895
Guaranteed minimum income benefits		3,603		3,631		3,556		3,639		3,519
Guaranteed minimum withdrawal & income benefits		83,110		91,366		94,804		101,688		101,686

Total		96,065		104,201		107,254		114,036		113,390


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		80,811		88,672		91,954		98,362		98,119
Account Values without Auto-Rebalancing Feature		15,254		15,529		15,300		15,674		15,271

Total		96,065		104,201		107,254		114,036		113,390


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		3,938		3,013		3,145		2,435		3,134
Net Amount at Risk without Auto-Rebalancing Feature		2,008		1,701		1,663		1,346		1,434

Total		5,946		4,714		4,808		3,781		4,568

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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

(in millions)


	2012						2013
	2Q		3Q		4Q		1Q		2Q

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

Variable Annuity Account Values by Death Benefit Features
Return of net deposits:
Account value		87,311		94,401		96,951		102,944		102,277
Net amount at risk		1,390		850		769		584		677
Minimum return, anniversary contract value, or maximum contract value:
Account value		30,037		31,510		31,687		33,046		32,511
Net amount at risk		4,975		4,268		4,207		3,574		3,931

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		80,811		88,672		91,954		98,362		98,119
Account Values without Auto-Rebalancing Feature		36,537		37,239		36,684		37,628		36,669

Total		117,348		125,911		128,638		135,990		134,788


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		1,596		983		958		715		1,064
Net Amount at Risk without Auto-Rebalancing Feature		4,769		4,135		4,018		3,443		3,544

Total		6,365		5,118		4,976		4,158		4,608

(1)	At end of period.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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

(in millions)


Year-to-date							2012									2013
2013			2012				2Q			3Q			4Q			1Q			2Q

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	148,405			139,430		Beginning total account value		145,991			142,405			146,934			148,405			156,380
	9,376			9,009		Deposits and sales		4,363			3,478			3,903			5,679			3,697
	(8,298	)		(10,774	)	Withdrawals and benefits		(3,671	)		(4,063	)		(4,386	)		(4,676	)		(3,622	)
	8,255			4,740		Change in market value, interest credited, interest income and other activity (1)		(4,278	)		5,114			1,954			6,972			1,283

	157,738			142,405		Ending total account value		142,405			146,934			148,405			156,380			157,738


	1,078			(1,765	)	Net additions (withdrawals)		692			(585	)		(483	)		1,003			75


						Stable value account values included above		41,634			42,044			42,836			43,065			43,365

						Institutional Investment Products:
	141,435			90,089		Beginning total account value		93,853			102,443			104,646			141,435			143,011
	8,205			12,856		Additions (2)		8,457			2,957			39,192			3,845			4,360
	(4,781	)		(4,370	)	Withdrawals and benefits (3)		(2,832	)		(1,539	)		(2,586	)		(2,319	)		(2,462	)
	(460	)		2,490		Change in market value, interest credited and interest income		1,562			1,509			788			202			(662	)
	(298	)		1,378		Other (4)		1,403			(724	)		(605	)		(152	)		(146	)

	144,101			102,443		Ending total account value (5)		102,443			104,646			141,435			143,011			144,101


	3,424			8,486		Net additions		5,625			1,418			36,606			1,526			1,898

(1)	Includes $(1.4) billion for the three months ended June 30, 2012, representing the divestiture of bank deposits previously held by Prudential Bank & Trust, as a result of the Company’s decision to limit its operations to trust services.

(2)

Includes $1,008 million for the three months ended December 31, 2012, representing transfers of client balances from externally managed accounts to accounts managed by Prudential. These additions are offset within the “Other” category and there are no net impacts on ending account values for these transfers.

(3)

Includes $(886) million, and $(9) million, $(4) million, and $(6) million for the three months ended June 30, 2012, September 30, 2012, March 31, 2013, and June 30, 2013, 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.

(4)

“Other” activity includes transfers to externally/(internally) managed accounts of $886 million, $9 million, $(1,008) million, $4 million, and $6 million for the three months ended June 30, 2012, September 30, 2012, December 31, 2012, March 31, 2013, and June 30, 2013, respectively. These transfers are offset in withdrawals/(additions) discussed above in notes 2 & 3. The remainder of “Other” activity primarily represents changes in asset balances for externally managed accounts.

(5)

Ending total account values for Institutional Investment Products business includes $1.5 billion as of June 30, 2012 and September 30, 2012, and $1.9 billion as of December 31, 2012, March 31, 2013, and June 30, 2013, respectively, related to collateralized funding agreements issued to the Federal Home Loan Bank of New York (FHLBNY).

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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			2012							2013
2013		2012		% Change			2Q			3Q		4Q		1Q		2Q

						Analysis of revenues by type:
	918		810		13%	Asset management fees		407			424		433		451		467
	125		5		2400%	Other related revenues		(25	)		113		89		65		60
	282		231		22%	Service, distribution and other revenues		110			103		135		144		138

	1,325		1,046		27%	Total Asset Management segment revenues		492			640		657		660		665


						Analysis of asset management fees by source:
	410		380		8%	Institutional customers		190			194		201		203		207
	299		245		22%	Retail customers		124			132		132		145		154
	209		185		13%	General account		93			98		100		103		106

	918		810		13%	Total asset management fees		407			424		433		451		467


Supplementary Assets Under Management Information (in billions):
	June 30, 2013
	Equity		Fixed Income		Real Estate		Total
Institutional customers		57.1		229.3		32.7		319.1
Retail customers		98.9		51.3		2.2		152.4
General account		7.9		345.2		1.4		354.5

Total		163.9		625.8		36.3		826.0


	June 30, 2012
	Equity		Fixed Income		Real Estate		Total
Institutional customers		48.0		211.1		30.1		289.2
Retail customers		80.9		49.5		1.3		131.7
General account		8.5		321.4		1.5		331.4

Total		137.4		582.0		32.9		752.3

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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

(in billions)


Year-to-date							2012									2013
2013			2012				2Q			3Q			4Q			1Q			2Q

						Institutional Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	274.6			234.2		Beginning assets under management		247.5			251.4			263.8			274.6			282.9
	29.2			25.3		Additions		11.2			12.7			20.8			14.4			14.8
	(19.2	)		(19.9	)	Withdrawals		(11.2	)		(9.3	)		(12.4	)		(7.5	)		(11.7	)
	(4.2	)		11.4		Change in market value		3.7			8.9			2.8			1.9			(6.1	)
	(0.2	)		0.2		Net money market flows		0.1			0.1			(0.1	)		(0.2	)		—
	(0.6	)		0.2		Other (1)		0.1			—			(0.3	)		(0.3	)		(0.3	)

	279.6			251.4		Ending assets under management		251.4			263.8			274.6			282.9			279.6
	39.5			37.8		Affiliated institutional assets under management		37.8			39.3			39.1			40.3			39.5

	319.1			289.2		Total assets managed for institutional customers at end of period		289.2			303.1			313.7			323.2			319.1


	10.0			5.4		Net institutional additions, excluding money market activity		—			3.4			8.4			6.9			3.1


						Retail Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	91.1			69.6		Beginning assets under management		81.1			81.1			87.8			91.1			97.9
	23.3			18.9		Additions		9.5			8.0			10.1			10.9			12.4
	(19.0	)		(12.0	)	Withdrawals		(5.9	)		(5.5	)		(6.7	)		(9.1	)		(9.9	)
	5.0			4.6		Change in market value		(3.6	)		4.3			(0.1	)		5.0			—
	—			—		Net money market flows		—			(0.1	)		—			—			—
	—			—		Other		—			—			—			—			—

	100.4			81.1		Ending assets under management		81.1			87.8			91.1			97.9			100.4
	52.0			50.6		Affiliated retail assets under management		50.6			46.1			47.6			45.9			52.0

	152.4			131.7		Total assets managed for retail customers at end of period		131.7			133.9			138.7			143.8			152.4


	4.3			6.9		Net retail additions, excluding money market activity		3.6			2.5			3.4			1.8			2.5

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

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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

(in millions)


Year-to-date						% Change			2012									2013
2013			2012			% Change			2Q			3Q			4Q			1Q			2Q

								Revenues (1):
	2,573			2,559			1%	Premiums		1,290			1,295			1,274			1,279			1,294
	1,311			780			68%	Policy charges and fee income		389			537			439			657			654
	977			802			22%	Net investment income		402			409			408			473			504
	307			221			39%	Asset management fees, commissions and other income		114			127			117			148			159

	5,168			4,362			18%	Total revenues		2,195			2,368			2,238			2,557			2,611


								Benefits and Expenses (1):
	3,183			2,925			9%	Insurance and annuity benefits		1,452			1,433			1,411			1,605			1,578
	394			272			45%	Interest credited to policyholders’ account balances		139			139			146			193			201
	194			157			24%	Interest expense		80			83			83			96			98
	(406	)		(189	)		-115%	Deferral of acquisition costs		(100	)		(103	)		(199	)		(220	)		(186	)
	175			134			31%	Amortization of acquisition costs		77			210			80			73			102
	1,319			897			47%	General and administrative expenses		453			459			630			664			655

	4,859			4,196			16%	Total benefits and expenses		2,101			2,221			2,151			2,411			2,448


	309			166			86%	Adjusted operating income before income taxes		94			147			87			146			163

(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

Second Quarter 2013

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

(in millions)


	Six Months Ended June 30, 2013									Quarter Ended June 30, 2013
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance			Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		2,573			397			2,176			1,294			204			1,090
Policy charges and fee income		1,311			1,038			273			654			523			131
Net investment income		977			684			293			504			354			150
Asset management fees, commissions and other income		307			248			59			159			131			28

Total revenues		5,168			2,367			2,801			2,611			1,212			1,399


Benefits and Expenses (1):
Insurance and annuity benefits		3,183			934			2,249			1,578			466			1,112
Interest credited to policyholders’ account balances		394			281			113			201			145			56
Interest expense		194			189			5			98			95			3
Deferral of acquisition costs		(406	)		(408	)		2			(186	)		(188	)		2
Amortization of acquisition costs		175			170			5			102			99			3
General and administrative expenses		1,319			923			396			655			454			201

Total benefits and expenses		4,859			2,089			2,770			2,448			1,071			1,377


Adjusted operating income before income taxes		309			278			31			163			141			22


	Six Months Ended June 30, 2012									Quarter Ended June 30, 2012
	Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance			Total U.S. Individual Life & Group Insurance Division			Individual Life			Group Insurance
Revenues (1):
Premiums		2,559			358			2,201			1,290			183			1,107
Policy charges and fee income		780			540			240			389			275			114
Net investment income		802			510			292			402			256			146
Asset management fees, commissions and other income		221			171			50			114			89			25

Total revenues		4,362			1,579			2,783			2,195			803			1,392


Benefits and Expenses (1):
Insurance and annuity benefits		2,925			644			2,281			1,452			350			1,102
Interest credited to policyholders’ account balances		272			158			114			139			81			58
Interest expense		157			155			2			80			78			2
Deferral of acquisition costs		(189	)		(189	)		—			(100	)		(100	)		—
Amortization of acquisition costs		134			132			2			77			76			1
General and administrative expenses		897			506			391			453			257			196

Total benefits and expenses		4,196			1,406			2,790			2,101			742			1,359


Adjusted operating income (loss) before income taxes		166			173			(7	)		94			61			33

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

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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							2012									2013
2013			2012				2Q			3Q			4Q			1Q			2Q

						ANNUALIZED NEW BUSINESS PREMIUMS (1):

	16			9		Variable life		5			4			8			9			7
	281			76		Universal life		42			52			90			157			124
	103			85		Term life		44			42			46			50			53

	400			170		Total		91			98			144			216			184


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	50			44		Prudential Agents		24			22			24			25			25
	350			126		Third party distribution		67			76			120			191			159

	400			170		Total		91			98			144			216			184


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2)(3):*
	10,583			9,500		Beginning balance		9,792			10,021			10,058			10,583			20,026
	2,073			982		Premiums and deposits		502			506			709			1,108			965
	(545	)		(416	)	Surrenders and withdrawals		(220	)		(209	)		(213	)		(240	)		(305	)

	1,528			566		Net sales		282			297			496			868			660
	(219	)		(122	)	Benefit payments		(65	)		(53	)		(59	)		(133	)		(86	)

	1,309			444		Net flows		217			244			437			735			574
	575			116		Interest credited and other		28			(195	)		111			276			299
	186			148		Net transfers from separate account		78			68			84			88			98
	(627	)		(187	)	Policy charges		(94	)		(80	)		(107	)		(340	)		(287	)
	8,684			—		Acquisition		—			—			—			8,684			—

	20,710			10,021		Ending balance		10,021			10,058			10,583			20,026			20,710


						*Separate Account Liabilities (3):*
	17,817			16,491		Beginning balance		17,842			17,113			17,835			17,817			24,611
	689			419		Premiums and deposits		211			212			218			305			384
	(548	)		(275	)	Surrenders and withdrawals		(130	)		(148	)		(154	)		(233	)		(315	)

	141			144		Net sales		81			64			64			72			69
	(93	)		(15	)	Benefit payments		(8	)		(8	)		(7	)		(41	)		(52	)

	48			129		Net flows		73			56			57			31			17
	1,840			968		Change in market value, interest credited and other		(562	)		895			173			1,487			353
	(186	)		(148	)	Net transfers to general account		(78	)		(68	)		(84	)		(88	)		(98	)
	(571	)		(327	)	Policy charges		(162	)		(161	)		(164	)		(243	)		(328	)
	5,607			—		Acquisition		—			—			—			5,607			—

	24,555			17,113		Ending balance		17,113			17,835			17,817			24,611			24,555


						FACE AMOUNT IN FORCE (4):

						Variable life		111,530			111,159			110,218			175,851			173,991
						Universal life		45,161			47,943			53,092			130,182			135,686
						Term life		491,724			499,051			506,868			597,272			606,212

						Total		648,415			658,153			670,178			903,305			915,889

(1)	Excludes corporate-owned life insurance.

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

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

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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

(dollar amounts in millions)


Year-to-date					2012						2013
2013		2012			2Q		3Q		4Q		1Q		2Q

				Individual Life Insurance:

				Policy Surrender Experience:
	598		325	Cash value of surrenders		155		165		169		303		295
	3.0%		2.7%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		2.5%		2.6%		2.6%		3.1%		2.9%

				Death benefits per $1,000 of in force (1):
	4.27		5.16	Variable and universal life		5.90		4.38		4.17		4.35		4.19
	1.31		1.75	Term life		2.08		1.00		1.36		1.29		1.34
	3.07		3.39	Total, Individual Life Insurance		3.89		2.60		2.69		3.10		3.05

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

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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

(dollar amounts in millions)


Year-to-date					2012									2013
2013		2012			2Q			3Q			4Q			1Q			2Q

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	163		235	Group life		24			18			51			148			15
	52		100	Group disability		19			28			7			45			7

	215		335	Total		43			46			58			193			22


				Future Policy Benefits (1):
				Group life		2,300			2,231			2,385			2,297			2,292
				Group disability		28			17			4			34			23

				Total		2,328			2,248			2,389			2,331			2,315


				Policyholders’ Account Balances (1):
				Group life		7,310			7,522			7,726			7,657			7,696
				Group disability		182			193			209			212			214

				Total		7,492			7,715			7,935			7,869			7,910


				Separate Account Liabilities (1):
				Group life		19,506			20,110			21,940			23,076			22,352
				Group disability		—			—			—			—			—

				Total		19,506			20,110			21,940			23,076			22,352


				Group Life Insurance:
	2,126		2,079	Gross premiums, policy charges and fee income (2)		1,015			1,019			1,079			1,074			1,052
	1,998		1,979	Earned premiums, policy charges and fee income		989			1,010			994			997			1,001
	91.4%		92.0%	Benefits ratio		88.6	%		90.7	%		89.0	%		92.2	%		90.6	%
	9.4%		9.5%	Administrative operating expense ratio		9.9	%		9.2	%		11.8	%		9.2	%		9.6	%
				Persistency ratio		95.0	%		94.5	%		94.0	%		95.0	%		94.7	%

				Group Disability Insurance:
	482		477	Gross premiums, policy charges and fee income (2)		245			239			243			240			242
	451		462	Earned premiums, policy charges and fee income		232			231			232			231			220
	93.8%		99.8%	Benefits ratio		97.4	%		93.9	%		98.7	%		94.4	%		93.2	%
	26.1%		24.5%	Administrative operating expense ratio		23.3	%		23.8	%		28.4	%		26.7	%		25.6	%
				Persistency ratio		91.6	%		90.5	%		89.3	%		91.7	%		89.7	%

(1)	As of end of period.

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

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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

(in millions)


Year-to-date							2012									2013
2013			2012				2Q			3Q			4Q			1Q			2Q

						DEFERRED POLICY ACQUISITION COSTS

						INDIVIDUAL ANNUITIES:
	3,829			2,390		Beginning balance		3,252			2,619			3,457			3,829			4,223
	350			528		Capitalization		274			288			200			223			127
	(258	)		(243	)	Amortization - operating results		(157	)		36			(131	)		(134	)		(124	)
	562			(72	)	Amortization - realized investment gains and losses		(747	)		518			288			271			291
	94			16		Impact of unrealized (gains) or losses on AFS securities		(3	)		(4	)		15			34			60
	—			—		Other		—			—			—			—			—

	4,577			2,619		Ending balance		2,619			3,457			3,829			4,223			4,577


						INDIVIDUAL LIFE INSURANCE:
	3,116			3,192		Beginning balance		3,242			3,238			2,994			3,116			3,317
	408			189		Capitalization		100			103			144			220			188
	(170	)		(132	)	Amortization - operating results		(76	)		(209	)		(78	)		(71	)		(99	)
	7			—		Amortization - realized investment gains and losses		—			—			—			2			5
	285			(11	)	Impact of unrealized (gains) or losses on AFS securities		(28	)		(138	)		56			50			235

	3,646			3,238		Ending balance		3,238			2,994			3,116			3,317			3,646


						GROUP INSURANCE:
	182			132		Beginning balance		131			130			129			182			180
	(2	)		—		Capitalization		—			—			55			—			(2	)
	(5	)		(2	)	Amortization - operating results		(1	)		(1	)		(2	)		(2	)		(3	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	175			130		Ending balance		130			129			182			180			175


						DEFERRED SALES INDUCEMENTS

						INDIVIDUAL ANNUITIES:
	1,357			1,000		Beginning balance		1,306			1,032			1,275			1,357			1,425
	31			170		Capitalization		88			70			18			16			15
	(106	)		(113	)	Amortization - operating results		(68	)		(2	)		(50	)		(54	)		(52	)
	193			(33	)	Amortization - realized investment gains and losses		(295	)		172			107			92			101
	31			8		Impact of unrealized losses on AFS securities		1			3			7			14			17
	—			—		Other		—			—			—			—			—

	1,506			1,032		Ending balance		1,032			1,275			1,357			1,425			1,506

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


Year-to-date						% Change			2012									2013
2013			2012			% Change			2Q			3Q			4Q			1Q			2Q

								Revenues (1):
	9,484			9,769			-3%	Premiums		5,164			6,814			7,901			4,914			4,570
	321			302			6%	Policy charges and fee income		150			139			156			159			162
	2,160			2,044			6%	Net investment income		1,030			1,119			1,105			1,093			1,067
	325			108			201%	Asset management fees, commissions and other income		62			82			47			184			141

	12,290			12,223			1%	Total revenues		6,406			8,154			9,209			6,350			5,940


								Benefits and Expenses (1):
	8,107			8,055			1%	Insurance and annuity benefits		4,303			5,982			7,068			4,203			3,904
	500			548			-9%	Interest credited to policyholders’ account balances		270			303			271			267			233
	1			—			—	Interest expense		(1	)		1			2			1			—
	(824	)		(1,012	)		19%	Deferral of acquisition costs		(542	)		(494	)		(518	)		(427	)		(397	)
	545			544			0%	Amortization of acquisition costs		284			279			350			270			275
	2,234			2,813			-21%	General and administrative expenses		1,414			1,301			1,389			1,159			1,075

	10,563			10,948			-4%	Total benefits and expenses		5,728			7,372			8,562			5,473			5,090


	1,727			1,275			35%	Adjusted operating income before income taxes		678			782			647			877			850

(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

Second Quarter 2013

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	Six Months Ended June 30, 2013									Quarter Ended June 30, 2013
	Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations			Total International Insurance Division			International Insurance - Life Planner Operations			International Insurance - Gibraltar Life & Other Operations
Revenues (1):
Premiums		9,484			3,513			5,971			4,570			1,623			2,947
Policy charges and fee income		321			175			146			162			85			77
Net investment income		2,160			793			1,367			1,067			390			677
Asset management fees, commissions and other income		325			120			205			141			60			81

Total revenues		12,290			4,601			7,689			5,940			2,158			3,782


Benefits and Expenses (1):
Insurance and annuity benefits		8,107			2,972			5,135			3,904			1,381			2,523
Interest credited to policyholders’ account balances		500			124			376			233			55			178
Interest expense		1			1			—			—			—			—
Deferral of acquisition costs		(824	)		(376	)		(448	)		(397	)		(166	)		(231	)
Amortization of acquisition costs		545			237			308			275			117			158
General and administrative expenses		2,234			853			1,381			1,075			403			672

Total benefits and expenses		10,563			3,811			6,752			5,090			1,790			3,300


Adjusted operating income before income taxes		1,727			790			937			850			368			482


	Six Months Ended June 30, 2012									Quarter Ended June 30, 2012
	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		9,769			3,516			6,253			5,164			1,690			3,474
Policy charges and fee income		302			188			114			150			94			56
Net investment income		2,044			767			1,277			1,030			381			649
Asset management fees, commissions and other income		108			38			70			62			27			35

Total revenues		12,223			4,509			7,714			6,406			2,192			4,214


Benefits and Expenses (1):
Insurance and annuity benefits		8,055			2,892			5,163			4,303			1,402			2,901
Interest credited to policyholders’ account balances		548			129			419			270			61			209
Interest expense		—			—			—			(1	)		—			(1	)
Deferral of acquisition costs		(1,012	)		(438	)		(574	)		(542	)		(226	)		(316	)
Amortization of acquisition costs		544			250			294			284			124			160
General and administrative expenses		2,813			920			1,893			1,414			457			957

Total benefits and expenses		10,948			3,753			7,195			5,728			1,818			3,910


Adjusted operating income before income taxes		1,275			756			519			678			374			304

(1)

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

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date					2012						2013
2013		2012			2Q		3Q		4Q		1Q		2Q

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	2,851		2,924	Japan, excluding Gibraltar Life		1,393		1,416		1,389		1,559		1,292
	6,117		6,367	Gibraltar Life		3,530		5,143		6,229		3,093		3,024
	837		780	All other countries		391		394		439		421		416

	9,805		10,071	Total		5,314		6,953		8,057		5,073		4,732


				Annualized new business premiums:
	428		621	Japan, excluding Gibraltar Life		316		181		190		249		179
	957		1,231	Gibraltar Life		762		680		813		459		498
	172		175	All other countries		86		93		94		96		76

	1,557		2,027	Total		1,164		954		1,097		804		753


				Annualized new business premiums by distribution channel:
	600		796	Life Planners		402		274		284		345		255
	436		509	Gibraltar Life Consultants		316		208		213		204		232
	406		454	Banks		261		433		547		209		197
	115		268	Independent Agency		185		39		53		46		69

	1,557		2,027	Total		1,164		954		1,097		804		753


				Constant exchange rate basis (2):

				Net premiums, policy charges and fee income:
	3,229		2,920	Japan, excluding Gibraltar Life		1,394		1,398		1,405		1,736		1,493
	6,951		6,330	Gibraltar Life		3,559		5,076		6,252		3,395		3,556
	814		767	All other countries		390		388		421		402		412

	10,994		10,017	Total		5,343		6,862		8,078		5,533		5,461


				Annualized new business premiums:
	490		622	Japan, excluding Gibraltar Life		316		178		192		280		210
	1,053		1,228	Gibraltar Life		769		670		806		488		565
	167		171	All other countries		86		93		91		92		75

	1,710		2,021	Total		1,171		941		1,089		860		850


				Annualized new business premiums by distribution channel:
	657		793	Life Planners		402		271		283		372		285
	482		507	Gibraltar Life Consultants		318		203		212		217		265
	445		451	Banks		261		429		542		223		222
	126		270	Independent Agency		190		38		52		48		78

	1,710		2,021	Total		1,171		941		1,089		860		850

(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 80 per U.S. dollar; Korean won 1160 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2012									2013
	2Q			3Q			4Q			1Q			2Q

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		354			356			359			364			367
Gibraltar Life		400			406			411			414			414
All other countries		105			106			107			108			109

Total		859			868			877			886			890


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		2,773			2,794			2,825			2,880			2,911
Gibraltar Life		7,417			7,432			7,449			7,417			7,340
All other countries		1,624			1,643			1,662			1,680			1,697

Total		11,814			11,869			11,936			11,977			11,948


International life insurance policy persistency:

Excluding Gibraltar Life:
13 months		93.0	%		93.0	%		93.0	%		93.0	%		93.2	%
25 months		85.4	%		85.7	%		86.1	%		86.3	%		86.3	%

Gibraltar Life:
13 months		90.6	%		90.4	%		89.7	%		89.4	%		89.6	%
25 months		81.6	%		82.0	%		82.4	%		82.2	%		81.9	%

Number of Life Planners at end of period:
Japan		3,116			3,169			3,216			3,284			3,243
All other countries		3,690			3,760			3,842			3,817			3,870

Total life planners		6,806			6,929			7,058			7,101			7,113


Gibraltar Life Consultants		12,031			11,683			11,333			10,252			9,795

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 80 per U.S. dollar; Korean won 1160 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars.

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

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2013									December 31, 2012
	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		239,907		27,489		212,418		66.4	%		254,096		28,790		225,306		68.2	%
Public, held-to-maturity, at amortized cost		2,693		—		2,693		0.8	%		3,116		—		3,116		0.9	%
Private, available-for-sale, at fair value		45,846		16,559		29,287		9.2	%		46,875		17,629		29,246		8.8	%
Private, held-to-maturity, at amortized cost		869		—		869		0.3	%		1,152		—		1,152		0.3	%
Trading account assets supporting insurance liabilities, at fair value		20,658		—		20,658		6.5	%		20,590		—		20,590		6.2	%
Other trading account assets, at fair value		1,675		274		1,401		0.4	%		1,701		275		1,426		0.4	%
Equity securities, available-for-sale, at fair value		8,754		3,465		5,289		1.7	%		8,256		3,225		5,031		1.5	%
Commercial mortgage and other loans, at book value		37,579		9,749		27,830		8.7	%		36,231		9,608		26,623		8.1	%
Policy loans, at outstanding balance		11,740		5,061		6,679		2.1	%		11,575		5,120		6,455		2.0	%
Other long-term investments (1)		8,664		2,102		6,562		2.0	%		8,677		2,012		6,665		2.0	%
Short-term investments		7,915		1,731		6,184		1.9	%		6,385		1,261		5,124		1.6	%

Subtotal (2)		386,300		66,430		319,870		100.0	%		398,654		67,920		330,734		100.0	%

Invested assets of other entities and operations (3)		6,697		—		6,697					6,928		—		6,928

Total investments		392,997		66,430		326,567					405,582		67,920		337,662

Fixed Maturities by Credit Quality (2):


	June 30, 2013											December 31, 2012
	Financial Services Businesses											Financial Services Businesses
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total
Public Fixed Maturities:

NAIC Rating (4)
1		168,844		15,490		2,944		181,390		84.3	%		181,892		15,753		985		196,660		86.0	%
2		26,614		2,091		962		27,743		12.9	%		25,074		2,029		439		26,664		11.7	%

Subtotal - High or Highest Quality Securities		195,458		17,581		3,906		209,133		97.2	%		206,966		17,782		1,424		223,324		97.7	%

3		4,045		246		128		4,163		1.9	%		3,670		128		204		3,594		1.6	%
4		1,541		144		76		1,609		0.8	%		1,351		100		122		1,329		0.6	%
5		295		32		23		304		0.1	%		340		20		58		302		0.1	%
6		54		16		3		67		0.0	%		55		10		17		48		0.0	%

Subtotal - Other Securities		5,935		438		230		6,143		2.8	%		5,416		258		401		5,273		2.3	%

Total		201,393		18,019		4,136		215,276		100.0	%		212,382		18,040		1,825		228,597		100.0	%


Private Fixed Maturities:
NAIC Rating (4)
1		7,202		722		73		7,851		26.0	%		7,237		811		52		7,996		26.2	%
2		17,432		1,498		175		18,755		62.1	%		17,350		1,659		217		18,792		61.7	%

Subtotal - High or Highest Quality Securities		24,634		2,220		248		26,606		88.1	%		24,587		2,470		269		26,788		87.9	%

3		2,493		138		30		2,601		8.6	%		2,416		173		29		2,560		8.4	%
4		628		37		11		654		2.2	%		631		33		7		657		2.2	%
5		227		11		16		222		0.7	%		310		7		16		301		1.0	%
6		105		14		5		114		0.4	%		131		29		—		160		0.5	%

Subtotal - Other Securities		3,453		200		62		3,591		11.9	%		3,488		242		52		3,678		12.1	%

Total		28,087		2,420		310		30,197		100.0	%		28,075		2,712		321		30,466		100.0	%

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

(2)	Excludes (i) assets of our asset management operations, including assets managed for third parties, (ii) derivative trading operations and (iii) those assets classified as “Separate account assets” on our balance sheet.

(3)

Includes invested assets of our asset management and derivative trading operations. Excludes assets within our asset management operations managed for third parties and those assets classified as “Separate account assets” on our balance sheet. Our derivative trading operation acts on behalf of affiliates and not in a dealer capacity.

(4)

Reflects equivalent ratings for investments of the international insurance operations. Includes, as of June 30, 2013 and December 31, 2012, respectively, 134 securities with amortized cost of $1,032 million (fair value $1,040 million) and 104 securities with amortized cost of $793 million (fair value, $847 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2013					December 31, 2012
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		111,802		81.7	%		124,710		82.2	%
Public, held-to-maturity, at amortized cost		2,693		2.0	%		3,116		2.0	%
Private, available-for-sale, at fair value		6,306		4.6	%		6,252		4.1	%
Private, held-to-maturity, at amortized cost		869		0.6	%		1,152		0.8	%
Trading account assets supporting insurance liabilities, at fair value		1,798		1.3	%		1,838		1.2	%
Other trading account assets, at fair value		915		0.7	%		1,195		0.8	%
Equity securities, available-for-sale, at fair value		2,363		1.7	%		2,126		1.4	%
Commercial mortgage and other loans, at book value		5,950		4.3	%		6,156		4.1	%
Policy loans, at outstanding balance		2,314		1.7	%		2,665		1.7	%
Other long-term investments (2)		1,576		1.2	%		2,215		1.5	%
Short-term investments		330		0.2	%		318		0.2	%

Total		136,916		100.0	%		151,743		100.0	%


	June 30, 2013					December 31, 2012
	Amount		% of Total			Amount		% of Total
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		100,616		55.0	%		100,596		56.2	%
Public, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available-for-sale, at fair value		22,981		12.6	%		22,994		12.9	%
Private, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		18,860		10.3	%		18,752		10.5	%
Other trading account assets, at fair value		486		0.3	%		231		0.1	%
Equity securities, available-for-sale, at fair value		2,926		1.6	%		2,905		1.6	%
Commercial mortgage and other loans, at book value		21,880		11.9	%		20,467		11.4	%
Policy loans, at outstanding balance		4,365		2.4	%		3,790		2.1	%
Other long-term investments (2)		4,986		2.7	%		4,450		2.5	%
Short-term investments		5,854		3.2	%		4,806		2.7	%

Total		182,954		100.0	%		178,991		100.0	%

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

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

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended June 30
	2013									2012
	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		3.74	%		2,136			265			3.76	%		1,872			(118	)
Equity securities		6.82	%		69			31			6.07	%		62			(14	)
Commercial mortgage and other loans		4.99	%		291			6			5.17	%		271			—
Policy loans		4.65	%		78			—			4.61	%		71			—
Short-term investments and cash equivalents		0.22	%		8			—			0.27	%		9			—
Other investments		8.39	%		165			(1,327	)		4.25	%		65			1,737

Gross investment income before investment expenses		3.88	%		2,747			(1,025	)		3.78	%		2,350			1,605
Investment expenses		-0.13	%		(77	)		—			-0.13	%		(64	)		—

Subtotal		3.75	%		2,670			(1,025	)		3.65	%		2,286			1,605

Investment results of other entities and operations (2)					271			23						277			4
Less, investment income related to adjusted operating income reconciling items					(40	)								(37	)

Total					2,901			(1,002	)					2,526			1,609


	Six Months Ended June 30
	2013									2012
	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		3.73	%		4,283			319			3.75	%		3,713			(132	)
Equity securities		6.27	%		128			64			5.82	%		118			(69	)
Commercial mortgage and other loans		5.04	%		573			(5	)		5.22	%		541			3
Policy loans		4.68	%		154			—			4.60	%		142			—
Short-term investments and cash equivalents		0.20	%		16			1			0.27	%		17			—
Other investments		6.41	%		253			(2,263	)		3.51	%		111			424

Gross investment income before investment expenses		3.79	%		5,407			(1,884	)		3.75	%		4,642			226
Investment expenses		-0.13	%		(157	)		—			-0.13	%		(125	)		—

Subtotal		3.66	%		5,250			(1,884	)		3.62	%		4,517			226

Investment results of other entities and operations (2)					566			62						575			9
Less, investment income related to adjusted operating income reconciling items					(94	)								(66	)

Total					5,722			(1,822	)					5,026			235

(1)

Excludes assets of commercial loans, trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders, derivative trading operations, assets of our asset management operations, including assets managed for third parties, and those assets classified as “Separate account assets” on our balance sheet. Realized gains / (losses) for Other investments includes changes in fair value of product-related and other derivatives and embedded derivatives.

(2)

Includes invested income of commercial loans, trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and our asset management and derivative trading operations. Our derivative trading operation acts on behalf of affiliates and not in a dealer capacity.

(3)

Yields are based on net investment income as reported under U.S. GAAP and do not include adjustments, such as settlements of duration management swaps that are included in adjusted operating income. Yields are annualized, for interim periods, and are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income and assets related to commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets. Prior period’s yields are presented on a basis consistent with the current presentation.

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2013									2012
	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		2.95	%		820			248			2.75	%		818			(101	)
Equity securities		5.42	%		23			20			2.46	%		12			(18	)
Commercial mortgage and other loans		4.20	%		64			3			4.08	%		57			2
Policy loans		3.66	%		21			—			3.53	%		25			—
Short-term investments and cash equivalents		0.17	%		1			—			0.16	%		2			—
Other investments (2)		4.93	%		35			(483	)		4.44	%		43			264

Gross investment income before investment expenses		3.06	%		964			(212	)		2.81	%		957			147
Investment expenses		-0.11	%		(36	)		—			-0.14	%		(49	)		—

Total		2.95	%		928			(212	)		2.67	%		908			147


	Six Months Ended June 30
	2013									2012
	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		2.87	%		1,653			375			2.72	%		1,612			(113	)
Equity securities		4.72	%		42			49			2.79	%		28			(79	)
Commercial mortgage and other loans		4.26	%		129			4			4.03	%		112			6
Policy loans		3.52	%		43			—			3.44	%		48			—
Short-term investments and cash equivalents		0.15	%		2			—			0.17	%		3			—
Other investments (2)		5.46	%		82			(778	)		3.60	%		74			61

Gross investment income before investment expenses		2.98	%		1,951			(350	)		2.76	%		1,877			(125	)
Investment expenses		-0.12	%		(78	)		—			-0.14	%		(93	)		—

Total		2.86	%		1,873			(350	)		2.62	%		1,784			(125	)

(1)

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

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2013									2012
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (2)			Amount			Realized Gains / (Losses)			Yield (2)			Amount			Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		4.49	%		1,316			17			5.25	%		1,054			(17	)
Equity securities		7.83	%		46			11			9.27	%		50			4
Commercial mortgage and other loans		5.27	%		227			3			5.57	%		214			(2	)
Policy loans		5.18	%		57			—			5.47	%		46			—
Short-term investments and cash equivalents		0.24	%		7			—			0.31	%		7			—
Other investments		10.30	%		130			(844	)		3.92	%		22			1,473

Gross investment income before investment expenses		4.55	%		1,783			(813	)		4.96	%		1,393			1,458
Investment expenses		0.13	%		(41	)		—			-0.11	%		(15	)		—

Total		4.42	%		1,742			(813	)		4.85	%		1,378			1,458


	Six Months Ended June 30
	2013									2012
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (2)			Amount			Realized Gains / (Losses)			Yield (2)			Amount			Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		4.60	%		2,630			(56	)		5.27	%		2,101			(19	)
Equity securities		7.46	%		86			15			8.67	%		90			10
Commercial mortgage and other loans		5.33	%		444			(9	)		5.65	%		429			(3	)
Policy loans		5.37	%		111			—			5.55	%		94			—
Short-term investments and cash equivalents		0.21	%		14			1			0.30	%		14			—
Other investments		6.98	%		171			(1,485	)		3.34	%		37			363

Gross investment income before investment expenses		4.48	%		3,456			(1,534	)		4.95	%		2,765			351
Investment expenses		-0.14	%		(79	)		—			-0.11	%		(32	)		—

Total		4.34	%		3,377			(1,534	)		4.84	%		2,733			351

(1)

(2)

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Years ended December 31							2012												2013
2011			2010				1Q			2Q			3Q			4Q			1Q

						*Financial Services Businesses:*
						Pre-tax adjusted operating income (loss) by division:
	2,051			2,040		U.S. Retirement Solutions and Investment Management Division		709			306			506			680			779
	645			656		U.S. Individual Life and Group Insurance Division		72			94			147			87			146
	2,263			1,887		International Insurance Division		597			678			782			647			877
	(1,112	)		(938	)	Corporate and other operations		(327	)		(225	)		(414	)		(372	)		(314	)

	3,847			3,645		Total pre-tax adjusted operating income		1,051			853			1,021			1,042			1,488
	995			956		Income taxes, applicable to adjusted operating income		284			205			270			239			406

	2,852			2,689		Financial Services Businesses after-tax adjusted operating income		767			648			751			803			1,082


						Reconciling items:
	847			(27	)	Realized investment gains (losses), net, and related charges and adjustments		(1,838	)		2,030			(1,303	)		(1,698	)		(3,003	)
	223			501		Investment gains on trading account assets supporting insurance liabilities, net		234			4			264			108			95
	(123	)		(631	)	Change in experience-rated contractholder liabilities due to asset value changes		(246	)		54			(254	)		(94	)		(143	)
	90			1		Divested businesses		1			22			(687	)		49			29
	(189	)		(95	)	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		5			8			(40	)		26			(30	)

	848			(251	)	Total reconciling items, before income taxes		(1,844	)		2,118			(2,020	)		(1,609	)		(3,052	)
	425			35		Income taxes, not applicable to adjusted operating income		(114	)		536			(623	)		(614	)		(1,241	)

	423			(286	)	Total reconciling items, after income taxes		(1,730	)		1,582			(1,397	)		(995	)		(1,811	)

	3,275			2,403		Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		(963	)		2,230			(646	)		(192	)		(729	)
	110			71		Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(4	)		(9	)		20			(25	)		7

	3,385			2,474		Income (loss) from continuing operations attributable to Prudential Financial, Inc.		(967	)		2,221			(626	)		(217	)		(722	)
	72			11		Earnings attributable to noncontrolling interests		11			15			25			27			42

	3,457			2,485		Income (loss) from continuing operations (after-tax) of Financial Services Businesses		(956	)		2,236			(601	)		(190	)		(680	)
	35			32		Income (loss) from discontinued operations, net of taxes		7			8			(1	)		3			1

	3,492			2,517		Net income (loss) of Financial Services Businesses		(949	)		2,244			(602	)		(187	)		(679	)
	72			11		Less: Income attributable to noncontrolling interests		11			15			25			27			42

	3,420			2,506		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		(960	)		2,229			(627	)		(214	)		(721	)


	10.6%			11.3%		Operating Return on Average Equity (based on adjusted operating income)		11.4%			9.5%			10.7%			11.7%			16.3%

						*Reconciliation to Consolidated Net Income (Loss) Attributable to Prudential Financial, Inc:*
	3,420			2,506		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		(960	)		2,229			(627	)		(214	)		(721	)
	146			495		Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		21			(5	)		43			(18	)		15

	3,566			3,001		Consolidated net income (loss) attributable to Prudential Financial, Inc.		(939	)		2,224			(584	)		(232	)		(706	)

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

RECLASSIFIED FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Years ended December 31							2012												2013
2011			2010				1Q			2Q			3Q			4Q			1Q
						*Earnings per share of Common Stock (diluted): (1)*
	5.84			5.69		Financial Services Businesses after-tax adjusted operating income		1.61			1.38			1.59			1.70			2.29

						Reconciling items:
	1.73			(0.06	)	Realized investment gains (losses), net, and related charges and adjustments		(3.85	)		4.29			(2.76	)		(3.61	)		(6.37	)
	0.46			1.05		Investment gains on trading account assets supporting insurance liabilities, net		0.49			0.01			0.56			0.23			0.20
	(0.25	)		(1.33	)	Change in experience-rated contractholder liabilities due to asset value changes		(0.52	)		0.11			(0.54	)		(0.20	)		(0.30	)
	0.18			—		Divested businesses		0.01			0.05			(1.46	)		0.10			0.06
	(0.01	)		0.01		Difference in earnings allocated to participating unvested share-based payment awards		0.02			(0.03	)		0.02			—			0.02

	2.11			(0.33	)	Total reconciling items, before income taxes		(3.85	)		4.43			(4.17	)		(3.48	)		(6.39	)
	1.03			0.11		Income taxes, not applicable to adjusted operating income		(0.20	)		1.14			(1.24	)		(1.30	)		(2.55	)

	1.08			(0.44	)	Total reconciling items, after income taxes		(3.65	)		3.29			(2.93	)		(2.18	)		(3.84	)

	6.92			5.25		Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		(2.04	)		4.67			(1.34	)		(0.48	)		(1.55	)
	0.07			0.07		Income from discontinued operations, net of taxes		0.01			0.02			—			—			—

	6.99			5.32		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		(2.03	)		4.69			(1.34	)		(0.48	)		(1.55	)


	480.2			466.8		Weighted average number of outstanding Common shares (basic)		469.2			466.1			464.4			462.6			464.3
	488.7			475.4		Weighted average number of outstanding Common shares (diluted)		477.5			473.5			471.8			469.9			471.7

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

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	38			35		Financial Services Businesses after-tax adjusted operating income		8			6			8			7			10
	45			32		Income from continuing operations (after-tax) of Financial Services Businesses		—			21			—			7			2

(1)

Diluted share count used in the diluted earnings per share calculation for GAAP measures is equal to weighted average basic common shares for the three months ended March 31, 2012, September 30, 2012, December 31, 2012, and March 31, 2013 as all potential common shares are anti-dilutive due to the loss from continuing operations available to holders of Common Stock after direct equity adjustment.

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

RECLASSIFIED OPERATIONS HIGHLIGHTS


Years ended December 31					2012								2013
2011		2010			1Q		2Q		3Q		4Q		1Q

				*Assets Under Management and Administration ($ billions) (1) (2):*
				Assets Under Management:
				Managed by U.S. Retirement Solutions and Investment Management Division:
				Asset Management Segment - Investment Management & Advisory Services
	1,040.8		237.8	Institutional customers		286.1		289.2		303.1		313.7		323.2
	477.2		110.6	Retail customers		125.1		131.7		133.9		138.7		143.8
	1,254.3		257.4	General account		321.3		331.4		340.7		374.6		373.3

	2,772.3		605.8	Total Investment Management and Advisory Services		732.5		752.3		777.7		827.0		840.3
	617.3		149.8	Non-proprietary assets under management		176.8		176.2		193.0		196.8		180.7

	3,389.6		755.6	Total managed by U.S. Retirement Solutions and Investment Management Division		909.3		928.5		970.7		1,023.8		1,021.0
	54.2		13.1	Managed by U.S. Individual Life and Group Insurance Division		14.8		13.6		13.7		16.4		22.6
	69.9		15.3	Managed by International Insurance Division		18.8		19.0		20.5		20.1		17.8

	3,513.7		784.0	Total assets under management		942.9		961.1		1,004.9		1,060.3		1,061.4
	66.9		64.5	Client assets under administration		69.0		67.6		67.8		69.2		105.5

	3,580.6		848.5	Total assets under management and administration		1,011.9		1,028.7		1,072.7		1,129.5		1,166.9


	208.9		151.1	Assets managed or administered for customers outside of the United States at end of period		214.6		223.0		237.3		243.8		241.2

(1)	As of end of period.

(2)	At fair market value.

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Years ended December 31							2012												2013
2011			2010				1Q			2Q			3Q			4Q			1Q
						Revenues (1):
	21,038			14,912		Premiums		5,980			6,695			8,263			41,145			6,329
	4,032			3,482		Policy charges and fee income		1,078			1,085			1,251			1,183			1,425
	9,803			8,501		Net investment income		2,500			2,526			2,631			2,713			2,821
	3,998			3,150		Asset management fees, commissions and other income		922			925			1,092			1,082			1,243

	38,871			30,045		Total revenues		10,480			11,231			13,237			46,123			11,818


						Benefits and Expenses (1):
	19,919			14,557		Insurance and annuity benefits		5,484			6,404			8,229			40,783			6,332
	3,756			3,418		Interest credited to policyholders’ account balances		948			971			941			944			966
	1,163			1,049		Interest expense		308			311			311			313			327
	(3,027	)		(2,432	)	Deferral of acquisition costs		(809	)		(911	)		(882	)		(932	)		(864	)
	1,565			1,027		Amortization of acquisition costs		406			513			466			581			475
	11,648			8,781		General and administrative expenses		3,092			3,090			3,151			3,392			3,094

	35,024			26,400		Total benefits and expenses		9,429			10,378			12,216			45,081			10,330


	3,847			3,645		Adjusted operating income before income taxes		1,051			853			1,021			1,042			1,488


						Reconciling items:
	2,503			152		Realized investment gains (losses), net, and related adjustments		(2,716	)		3,058			(1,951	)		(2,057	)		(3,305	)
	(1,656	)		(179	)	Related charges		878			(1,028	)		648			359			302

	847			(27	)	Total realized investment gains (losses), net, and related charges and adjustments		(1,838	)		2,030			(1,303	)		(1,698	)		(3,003	)


	223			501		Investment gains on trading account assets supporting insurance liabilities, net		234			4			264			108			95
	(123	)		(631	)	Change in experience-rated contractholder liabilities due to asset value changes		(246	)		54			(254	)		(94	)		(143	)
	90			1		Divested businesses		1			22			(687	)		49			29
	(189	)		(95	)	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		5			8			(40	)		26			(30	)

	848			(251	)	Total reconciling items, before income taxes		(1,844	)		2,118			(2,020	)		(1,609	)		(3,052	)


	4,695			3,394		Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		(793	)		2,971			(999	)		(567	)		(1,564	)
	1,420			991		Income tax expense (benefit)		170			741			(353	)		(375	)		(835	)

	3,275			2,403		Income (loss) from continuing operations before equity in earnings of operating joint ventures		(963	)		2,230			(646	)		(192	)		(729	)

(1)

Page 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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

(in millions)


Years ended December 31							2012												2013
2011			2010				1Q			2Q			3Q			4Q			1Q
						Revenues (1):
	901			1,232		Premiums		116			248			161			31,979			145
	2,043			1,662		Policy charges and fee income		544			556			584			598			619
	4,086			4,237		Net investment income		999			983			1,002			1,096			1,160
	3,955			3,214		Asset management fees, commissions and other income		960			915			1,074			1,107			1,140

	10,985			10,345		Total revenues		2,619			2,702			2,821			34,780			3,064


						Benefits and Expenses (1):
	2,070			2,139		Insurance and annuity benefits		251			611			736			32,292			524
	2,285			2,415		Interest credited to policyholders’ account balances		544			568			504			531			506
	139			96		Interest expense		35			39			37			33			33
	(1,093	)		(1,154	)	Deferral of acquisition costs		(265	)		(288	)		(305	)		(233	)		(235	)
	602			272		Amortization of acquisition costs		97			168			(20	)		166			145
	4,931			4,537		General and administrative expenses		1,248			1,298			1,363			1,311			1,312

	8,934			8,305		Total benefits and expenses		1,910			2,396			2,315			34,100			2,285


	2,051			2,040		Adjusted operating income before income taxes		709			306			506			680			779

(1)

Page 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - ASSET MANAGEMENT SEGMENT

(in millions)


Years ended December 31							2012												2013
2011			2010				1Q			2Q			3Q			4Q			1Q
						Revenues (1):
	—			—		Premiums		—			—			—			—			—
	—			—		Policy charges and fee income		—			—			—			—			—
	118			121		Net investment income		23			15			38			31			18
	2,358			1,846		Asset management fees, commissions and other income		531			477			603			626			642

	2,476			1,967		Total revenues		554			492			641			657			660


						Benefits and Expenses (1):
	—			—		Insurance and annuity benefits		—			—			—			—			—
	—			—		Interest credited to policyholders’ account balances		—			—			—			—			—
	13			13		Interest expense		3			5			3			4			3
	(23	)		(24	)	Deferral of acquisition costs		(7	)		(6	)		(7	)		(6	)		(7	)
	25			25		Amortization of acquisition costs		6			6			6			6			6
	1,666			1,428		General and administrative expenses		420			435			450			502			479

	1,681			1,442		Total benefits and expenses		422			440			452			506			481


	795			525		Adjusted operating income before income taxes		132			52			189			151			179

(1)

Page 40

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS

(in millions)


Years ended December 31							2012												2013
2011			2010				1Q			2Q			3Q			4Q			1Q
						Revenues (1):
	(22	)		(27	)	Premiums		(10	)		(7	)		(7	)		(9	)		(9	)
	(35	)		(42	)	Policy charges and fee income		(9	)		(10	)		(9	)		(10	)		(10	)
	410			330		Net investment income		87			111			101			104			95
	(540	)		(489	)	Asset management fees, commissions and other income		(191	)		(166	)		(191	)		(189	)		(229	)

	(187	)		(228	)	Total revenues		(123	)		(72	)		(106	)		(104	)		(153	)


						Benefits and Expenses (1):
	146			45		Insurance and annuity benefits		8			38			78			12			—
	(34	)		(70	)	Interest credited to policyholders’ account balances		(7	)		(6	)		(5	)		(4	)		—
	809			788		Interest expense		195			193			190			195			197
	67			63		Deferral of acquisition costs		15			19			20			18			18
	(58	)		(40	)	Amortization of acquisition costs		(8	)		(16	)		(3	)		(15	)		(13	)
	(5	)		(76	)	General and administrative expenses		1			(75	)		28			62			(41	)

	925			710		Total benefits and expenses		204			153			308			268			161


	(1,112	)		(938	)	Adjusted operating income before income taxes		(327	)		(225	)		(414	)		(372	)		(314	)

(1)

Page 41

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

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

Supplementary Revenue Information (in millions):


Years ended December 31				% Change			2012									2013
2011		2010		% Change			1Q		2Q			3Q		4Q		1Q

						Analysis of revenues by type:
	1,541		1,326		16%	Asset management fees		403		407			424		433		451
	339		210		61%	Other related revenues		30		(25	)		113		89		65
	596		431		38%	Service, distribution and other revenues		121		110			103		135		144

	2,476		1,967		26%	Total Asset Management segment revenues		554		492			640		657		660


						Analysis of asset management fees by source:
	729		639		14%	Institutional customers		190		190			194		201		203
	452		372		22%	Retail customers		121		124			132		132		145
	360		315		14%	General account		92		93			98		100		103

	1,541		1,326		16%	Total asset management fees		403		407			424		433		451

Page 42

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

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

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

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

2. After-tax adjusted operating income:

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

3. Annualized New Business Premiums:

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

4. Assets Under Management:

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

5. Attributed Equity:

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

6. Book value per share of Common Stock:

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

7. Borrowings - Capital Debt:

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

8. Borrowings - Operating Debt - Investment Related:

Debt issued to finance specific investment assets or portfolios of investment assets, including institutional spread lending investment portfolios as well as institutional and insurance company portfolio cash flow timing differences.

9. Borrowings - Operating Debt - Specified Businesses:

Borrowings primarily associated with the individual annuity and asset management businesses.

Page 43

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

KEY DEFINITIONS AND FORMULAS

10. Client Assets:

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

11. Earned Premiums:

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

12. Earnings Per Share of Common Stock:

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

13. Full Service:

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

14. Full Service Stable Value:

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

15. General Account:

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

16. Gibraltar Life Consultants:

Insurance representatives for Gibraltar Life, previously identified as Life Advisors.

17. 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.

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

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

19. 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.

20. 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 44

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

KEY DEFINITIONS AND FORMULAS

21. 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.

22. International Life Planners:

Insurance agents in our insurance operations outside the United States, excluding Gibraltar Life Advisors.

23. 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.

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

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

An alternative measure to operating return on average equity (based on adjusted operating income) is return on average equity (based on income from continuing operations). Return on average equity (based on income from continuing operations) represents income from continuing operations after-tax, for the Financial Services Businesses, attributable to Prudential Financial, Inc. as determined in accordance with GAAP (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average total attributed equity for the Financial Services Businesses. Return on average equity (based on income from continuing operations) is 2.2% for the three months ended June 30, 2013, (7.6%) for the three months ended March 31, 2013, (2.3)% for the three months ended December 31, 2012, (6.7)% for the three months ended September 30, 2012, and 25.4% for the three months ended June 30, 2012.

25. 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).

26. 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.

27. Prudential Agents:

Insurance agents in our insurance operations in the United States.

28. 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.

29. 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.

30. 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 45

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2013

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of August 7, 2013


	A.M. Best	Standard & Poor’s	Moody’s	Fitch Ratings
The Prudential Insurance Company of America	A+	AA-	A1	A+
PRUCO Life Insurance Company	A+	AA-	A1	A+
PRUCO Life Insurance Company of New Jersey	A+	AA-	NR*	A+
Prudential Annuities Life Assurance Corporation	A+	AA-	NR	A+
Prudential Retirement Insurance and Annuity Company	A+	AA-	A1	A+
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)	NR	AA-	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	AA-	NR	NR
The Prudential Gibraltar Financial Life Insurance Co. Ltd.	NR	AA-	NR	NR

CREDIT RATINGS:
as of August 7, 2013

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

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

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

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

*	NR indicates not rated.

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 46

PRUDENTIAL FINANCIAL INC - FORM 8-K - EX-99.2 - August 7, 2013

Attached files