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

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EX-99.1 - EX-99.1 - PRUDENTIAL FINANCIAL INC	d614811dex991.htm
8-K - FORM 8-K - PRUDENTIAL FINANCIAL INC	d614811d8k.htm

Exhibit 99.2

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

THIRD 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.

November 6, 2013

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

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

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF THIRD QUARTER 2012 AND 2013 ACTUARIAL UPDATES		35

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2012 AND 2013 ACTUARIAL UPDATES		36

RECLASSIFIED OPERATIONS HIGHLIGHTS		37

KEY DEFINITIONS AND FORMULAS		38-40

RATINGS AND INVESTOR INFORMATION		41

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

								*Financial Services Businesses:*
								Pre-tax adjusted operating income (loss) by division:
	2,884			1,521			90%	U.S. Retirement Solutions and Investment Management Division		506			680			779			847			1,258
	525			313			68%	U.S. Individual Life and Group Insurance Division		147			87			146			163			216
	2,505			2,057			22%	International Insurance Division		782			647			877			850			778
	(973	)		(966	)		-1%	Corporate and other operations		(414	)		(372	)		(314	)		(347	)		(312	)

	4,941			2,925			69%	Total pre-tax adjusted operating income		1,021			1,042			1,488			1,513			1,940
	1,376			759			81%	Income taxes, applicable to adjusted operating income		270			239			406			423			547

	3,565			2,166			65%	Financial Services Businesses after-tax adjusted operating income		751			803			1,082			1,090			1,393


								Reconciling items:
	(5,789	)		(1,111	)		-421%	Realized investment losses, net, and related charges and adjustments		(1,303	)		(1,698	)		(3,003	)		(2,230	)		(556	)
	(273	)		502			-154%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		264			108			95			(471	)		103
	255			(446	)		157%	Change in experience-rated contractholder liabilities due to asset value changes		(254	)		(94	)		(143	)		471			(73	)
	(12	)		(664	)		98%	Divested businesses		(687	)		49			29			(84	)		43
	18			(27	)		167%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(40	)		26			(30	)		31			17

	(5,801	)		(1,746	)		-232%	Total reconciling items, before income taxes		(2,020	)		(1,609	)		(3,052	)		(2,283	)		(466	)
	(2,000	)		(201	)		-895%	Income taxes, not applicable to adjusted operating income		(623	)		(614	)		(1,241	)		(697	)		(62	)

	(3,801	)		(1,545	)		-146%	Total reconciling items, after income taxes		(1,397	)		(995	)		(1,811	)		(1,586	)		(404	)

	(236	)		621			-138%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures		(646	)		(192	)		(729	)		(496	)		989
	(39	)		7			-657%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		20			(25	)		7			(30	)		(16	)

	(275	)		628			-144%	Income (loss) from continuing operations attributable to Prudential Financial, Inc.		(626	)		(217	)		(722	)		(526	)		973
	96			51			88%	Earnings attributable to noncontrolling interests		25			27			42			35			19

	(179	)		679			-126%	Income (loss) from continuing operations (after-tax) of Financial Services Businesses		(601	)		(190	)		(680	)		(491	)		992
	11			14			-21%	Income (loss) from discontinued operations, net of taxes		(1	)		3			1			2			8

	(168	)		693			-124%	Net income (loss) of Financial Services Businesses		(602	)		(187	)		(679	)		(489	)		1,000
	96			51			88%	Less: Income attributable to noncontrolling interests		25			27			42			35			19

	(264	)		642			-141%	Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		(627	)		(214	)		(721	)		(524	)		981

	18.2%			10.5%				Operating Return on Average Equity (based on adjusted operating income)		10.7%			11.7%			16.3%			16.9%			21.6%

								*Reconciliation to Consolidated Net Income (Loss) Attributable to Prudential Financial, Inc:*
	(264	)		642				Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		(627	)		(214	)		(721	)		(524	)		981
	79			59				Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		43			(18	)		15			3			61

	(185	)		701				Consolidated net income (loss) attributable to Prudential Financial, Inc.		(584	)		(232	)		(706	)		(521	)		1,042

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

						Earnings per share of Common Stock (diluted): (1)
	7.52			4.59		Financial Services Businesses after-tax adjusted operating income		1.59			1.70			2.29			2.30			2.94

						Reconciling items:
	(12.26	)		(2.34	)	Realized investment losses, net, and related charges and adjustments		(2.76	)		(3.61	)		(6.37	)		(4.72	)		(1.18	)
	(0.58	)		1.06		Investment gains (losses) on trading account assets supporting insurance liabilities, net		0.56			0.23			0.20			(1.00	)		0.22
	0.54			(0.94	)	Change in experience-rated contractholder liabilities due to asset value changes		(0.54	)		(0.20	)		(0.30	)		1.00			(0.15	)
	(0.03	)		(1.40	)	Divested businesses		(1.45	)		0.10			0.06			(0.18	)		0.09
	0.06			0.03		Difference in earnings allocated to participating unvested share-based payment awards		0.02			—			0.02			0.02			0.01

	(12.27	)		(3.59	)	Total reconciling items, before income taxes		(4.17	)		(3.48	)		(6.39	)		(4.88	)		(1.01	)
	(4.16	)		(0.37	)	Income taxes, not applicable to adjusted operating income		(1.24	)		(1.30	)		(2.55	)		(1.44	)		(0.13	)

	(8.11	)		(3.22	)	Total reconciling items, after income taxes		(2.93	)		(2.18	)		(3.84	)		(3.44	)		(0.88	)

	(0.59	)		1.37		Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc.		(1.34	)		(0.48	)		(1.55	)		(1.14	)		2.06
	0.02			0.03		Income from discontinued operations, net of taxes		—			—			—			0.01			0.01

	(0.57	)		1.40		Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc.		(1.34	)		(0.48	)		(1.55	)		(1.13	)		2.07


	463.7			466.6		Weighted average number of outstanding Common shares (basic)		464.4			462.6			464.3			464.1			462.6

	472.0			474.3		Weighted average number of outstanding Common shares (diluted) (2)		471.8			469.9			471.7			472.2			472.0

	7			20		Direct equity adjustments for earnings per share calculation		4			—			4			1			2

	13			13		Earnings related to interest, net of tax, on exchangeable surplus notes (2)		4			4			4			5			4

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	34			22		Financial Services Businesses after-tax adjusted operating income		8			7			10			11			13
	6			6		Income from continuing operations (after-tax) of Financial Services Businesses		—			7			2			2			9

(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 nine months ended September 30, 2013, as all potential common shares are antidilutive due to the loss from continuing operations available to holders of Common Stock after direct equity adjustment.

(2)

In calculating diluted earnings per share under the if-converted method, the potential shares that would be issued related to the exchangeable surplus notes assuming a hypothetical exchange, weighted for the period the notes are outstanding, is added to the denominator, and interest expense, net of tax, is added to the numerator, if the overall effect is dilutive. For the nine months ended September 30, 2012, the hypothetical impact of these shares was antidilutive and therefore excluded from the diluted earnings per share calculation for GAAP measures. The weighted average number of outstanding common shares used in the diluted earnings per share calculation for the nine months ended September 30, 2012, for GAAP measures is 469.2 million.

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


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

				*Financial Services Businesses Capitalization Data (1):*
				Senior Debt:
				Short-term debt		3,013		2,409			2,153			2,545			3,043
				Long-term debt		19,576		18,460			18,009			17,083			17,083
				Junior Subordinated Long-Term Debt		2,519		4,594			5,804			4,884			4,884

				Attributed Equity:
				Including accumulated other comprehensive income		37,189		37,078			38,478			33,749			32,912
				Excluding accumulated other comprehensive income (3)		27,976		27,088			26,265			25,423			26,128
				Amount included above for foreign currency exchange rate remeasurement (4)		813		(179	)		(1,782	)		(2,796	)		(2,036	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (4)		27,163		27,267			28,047			28,219			28,164


				Book value per share of Common Stock:
				Including accumulated other comprehensive income		79.63		79.19			81.96			71.93			70.25
				Excluding accumulated other comprehensive income (3)		59.91		57.86			55.94			54.18			55.77
				Amount included above for foreign currency exchange rate remeasurement (4)		1.74		(0.38	)		(3.80	)		(5.96	)		(4.35	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (4)		58.17		58.24			59.74			60.14			60.12


				Number of diluted shares at end of period (2)		467.0		468.2			469.5			469.2			468.5

				*Common Stock Price Range (based on closing price):*
	82.62		64.65	High		58.63		59.89			60.41			73.03			82.62
	54.64		44.74	Low		45.46		48.74			54.64			54.91			73.30
	77.98		54.51	Close		54.51		53.33			58.99			73.03			77.98


				*Common Stock market capitalization (1)*		25,184		24,692			27,448			33,813			36,019

(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 antidilutive impact of conversion.

(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).

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

OPERATIONS HIGHLIGHTS


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

				*Assets Under Management and Administration ($ billions) (1) (2):*
				Assets Under Management:
				Managed by U.S. Retirement Solutions and Investment Management Division:
				Asset Management Segment - Investment Management & Advisory Services
				Institutional customers		303.1		313.7		323.2		319.1		330.3
				Retail customers		133.9		138.7		143.8		152.4		159.1
				General account		340.7		374.6		373.3		354.5		358.7

				Total Investment Management and Advisory Services		777.7		827.0		840.3		826.0		848.1
				Non-proprietary assets under management		193.0		196.8		180.7		174.4		186.9

				Total managed by U.S. Retirement Solutions and Investment Management Division		970.7		1,023.8		1,021.0		1,000.4		1,035.0
				Managed by U.S. Individual Life and Group Insurance Division		13.7		16.4		22.6		21.5		21.9
				Managed by International Insurance Division		20.5		20.1		17.8		21.8		19.3

				Total assets under management		1,004.9		1,060.3		1,061.4		1,043.7		1,076.2
				Client assets under administration		67.8		69.2		105.5		106.2		111.1

				Total assets under management and administration		1,072.7		1,129.5		1,166.9		1,149.9		1,187.3


				Assets managed or administered for customers outside of the United States at end of period		237.3		243.8		241.2		236.7		244.2

				*Distribution Representatives (1):*
				Prudential Agents		2,662		2,615		2,701		2,724		2,780
				International Life Planners		6,929		7,058		7,101		7,113		7,208
				Gibraltar Life Consultants		11,683		11,333		10,252		9,795		9,298

	49		52	*Prudential Agent productivity ($ thousands)*		58		64		48		49		50

(1)	As of end of period.

(2)	At fair market value.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

								Revenues (1):
	17,858			20,938			-15%	Premiums		8,263			41,145			6,329			6,115			5,414
	4,169			3,414			22%	Policy charges and fee income		1,251			1,183			1,425			1,460			1,284
	8,595			7,657			12%	Net investment income		2,631			2,713			2,821			2,901			2,873
	3,735			2,939			27%	Asset management fees, commissions and other income		1,092			1,082			1,243			1,247			1,245

	34,357			34,948			-2%	Total revenues		13,237			46,123			11,818			11,723			10,816


								Benefits and Expenses (1):
	17,923			20,117			-11%	Insurance and annuity benefits		8,229			40,783			6,332			6,171			5,420
	2,781			2,860			-3%	Interest credited to policyholders’ account balances		941			944			966			929			886
	954			930			3%	Interest expense		311			313			327			331			296
	(2,216	)		(2,602	)		15%	Deferral of acquisition costs		(882	)		(932	)		(864	)		(706	)		(646	)
	1,008			1,385			-27%	Amortization of acquisition costs		466			581			475			502			31
	8,966			9,333			-4%	General and administrative expenses		3,151			3,392			3,094			2,983			2,889

	29,416			32,023			-8%	Total benefits and expenses		12,216			45,081			10,330			10,210			8,876

	4,941			2,925			69%	Adjusted operating income before income taxes		1,021			1,042			1,488			1,513			1,940


								Reconciling items:
	(7,322	)		(1,609	)		-355%	Realized investment losses, net, and related adjustments		(1,951	)		(2,057	)		(3,305	)		(2,698	)		(1,319	)
	1,533			498			208%	Related charges		648			359			302			468			763

	(5,789	)		(1,111	)		-421%	Total realized investment losses, net, and related charges and adjustments		(1,303	)		(1,698	)		(3,003	)		(2,230	)		(556	)

	(273	)		502			-154%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		264			108			95			(471	)		103
	255			(446	)		157%	Change in experience-rated contractholder liabilities due to asset value changes		(254	)		(94	)		(143	)		471			(73	)
	(12	)		(664	)		98%	Divested businesses		(687	)		49			29			(84	)		43
	18			(27	)		167%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		(40	)		26			(30	)		31			17

	(5,801	)		(1,746	)		-232%	Total reconciling items, before income taxes		(2,020	)		(1,609	)		(3,052	)		(2,283	)		(466	)


	(860	)		1,179			-173%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		(999	)		(567	)		(1,564	)		(770	)		1,474
	(624	)		558			-212%	Income tax expense (benefit)		(353	)		(375	)		(835	)		(274	)		485

	(236	)		621			-138%	Income (loss) from continuing operations before equity in earnings of operating joint ventures		(646	)		(192	)		(729	)		(496	)		989

(1)

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

Page 5

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $208,474; $236,517; $232,366; $226,247; $231,616)		226,015		254,917		254,222		242,059		245,032
Fixed maturities, held to maturity, at amortized cost (fair value $5,018; $4,511; $4,186; $3,769; $3,872)		4,720		4,268		3,878		3,562		3,629
Trading account assets supporting insurance liabilities, at fair value		20,132		20,590		20,890		20,658		21,131
Other trading account assets, at fair value		5,610		6,053		6,584		5,809		6,121
Equity securities, available for sale, at fair value (cost $4,253; $4,302; $4,070; $4,102; $4,279)		4,821		5,052		5,315		5,289		5,488
Commercial mortgage and other loans		27,057		27,125		28,744		28,320		29,709
Policy loans		6,551		6,455		6,861		6,679		6,827
Other long-term investments		6,133		8,016		7,689		7,847		7,904
Short-term investments		7,825		5,186		4,700		6,344		6,404

Total investments		308,864		337,662		338,883		326,567		332,245
Cash and cash equivalents		13,102		17,546		14,023		12,425		11,950
Accrued investment income		2,230		2,534		2,523		2,528		2,533
Deferred policy acquisition costs		13,250		13,688		13,968		14,547		15,812
Value of business acquired		3,516		3,248		4,167		3,846		3,837
Other assets		11,901		11,376		13,462		13,114		12,766
Separate account assets		247,510		253,254		266,308		264,054		275,091

Total assets		600,373		639,308		653,334		637,081		654,234


Liabilities:
Future policy benefits		132,209		165,212		160,290		153,683		158,857
Policyholders’ account balances		130,227		128,987		132,913		131,222		132,202
Securities sold under agreements to repurchase		4,662		3,436		3,679		3,707		3,530
Cash collateral for loaned securities		2,442		2,864		2,375		4,927		4,988
Income taxes		9,323		9,058		8,501		5,619		5,417
Senior short-term debt		3,013		2,409		2,153		2,545		3,043
Senior long-term debt		19,576		18,460		18,009		17,083		17,083
Junior subordinated long-term debt		2,519		4,594		5,804		4,884		4,884
Notes issued by consolidated variable interest entities		636		1,577		1,896		2,147		2,423
Other liabilities		10,376		11,663		12,225		12,701		13,046
Separate account liabilities		247,510		253,254		266,308		264,054		275,091

Total liabilities		562,493		601,514		614,153		602,572		620,564


Attributed Equity:
Accumulated other comprehensive income		9,213		9,990		12,213		8,326		6,784
Other attributed equity		27,976		27,088		26,265		25,423		26,128

Total attributed equity		37,189		37,078		38,478		33,749		32,912

Noncontrolling Interest		691		716		703		760		758

Total Equity		37,880		37,794		39,181		34,509		33,670

Total liabilities and equity		600,373		639,308		653,334		637,081		654,234

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended September 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		5,414			276			1,256			3,889			(7	)
Policy charges and fee income		1,284			665			487			142			(10	)
Net investment income		2,873			1,196			497			1,086			94
Asset management fees, commissions and other income		1,245			1,190			143			142			(230	)

Total revenues		10,816			3,327			2,383			5,259			(153	)


Benefits and Expenses (1):
Insurance and annuity benefits		5,420			598			1,496			3,349			(23	)
Interest credited to policyholders’ account balances		886			433			208			245			—
Interest expense		296			31			108			—			157
Deferral of acquisition costs		(646	)		(136	)		(177	)		(347	)		14
Amortization of acquisition costs		31			(92	)		(111	)		234			—
General and administrative expenses		2,889			1,235			643			1,000			11

Total benefits and expenses		8,876			2,069			2,167			4,481			159


Adjusted operating income (loss) before income taxes		1,940			1,258			216			778			(312	)


	Quarter Ended September 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		8,263			161			1,295			6,814			(7	)
Policy charges and fee income		1,251			584			537			139			(9	)
Net investment income		2,631			1,002			409			1,119			101
Asset management fees, commissions and other income		1,092			1,074			127			82			(191	)

Total revenues		13,237			2,821			2,368			8,154			(106	)


Benefits and Expenses (1):
Insurance and annuity benefits		8,229			736			1,433			5,982			78
Interest credited to policyholders’ account balances		941			504			139			303			(5	)
Interest expense		311			37			83			1			190
Deferral of acquisition costs		(882	)		(305	)		(103	)		(494	)		20
Amortization of acquisition costs		466			(20	)		210			279			(3	)
General and administrative expenses		3,151			1,363			459			1,301			28

Total benefits and expenses		12,216			2,315			2,221			7,372			308


Adjusted operating income (loss) before income taxes		1,021			506			147			782			(414	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Nine Months Ended September 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		17,858			677			3,829			13,373			(21	)
Policy charges and fee income		4,169			1,938			1,798			463			(30	)
Net investment income		8,595			3,592			1,474			3,246			283
Asset management fees, commissions and other income		3,735			3,489			450			467			(671	)

Total revenues		34,357			9,696			7,551			17,549			(439	)


Benefits and Expenses (1):
Insurance and annuity benefits		17,923			1,805			4,679			11,456			(17	)
Interest credited to policyholders’ account balances		2,781			1,434			602			745			—
Interest expense		954			95			302			1			556
Deferral of acquisition costs		(2,216	)		(512	)		(583	)		(1,171	)		50
Amortization of acquisition costs		1,008			190			64			779			(25	)
General and administrative expenses		8,966			3,800			1,962			3,234			(30	)

Total benefits and expenses		29,416			6,812			7,026			15,044			534


Adjusted operating income (loss) before income taxes		4,941			2,884			525			2,505			(973	)


	Nine Months Ended September 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		20,938			525			3,854			16,583			(24	)
Policy charges and fee income		3,414			1,684			1,317			441			(28	)
Net investment income		7,657			2,984			1,211			3,163			299
Asset management fees, commissions and other income		2,939			2,949			348			190			(548	)

Total revenues		34,948			8,142			6,730			20,377			(301	)


Benefits and Expenses (1):
Insurance and annuity benefits		20,117			1,598			4,358			14,037			124
Interest credited to policyholders’ account balances		2,860			1,616			411			851			(18	)
Interest expense		930			111			240			1			578
Deferral of acquisition costs		(2,602	)		(858	)		(292	)		(1,506	)		54
Amortization of acquisition costs		1,385			245			344			823			(27	)
General and administrative expenses		9,333			3,909			1,356			4,114			(46	)

Total benefits and expenses		32,023			6,621			6,417			18,320			665


Adjusted operating income (loss) before income taxes		2,925			1,521			313			2,057			(966	)

(1)

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of September 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		332,245		119,501		44,701		152,625		15,418
Deferred policy acquisition costs		15,812		5,533		4,129		6,456		(306	)
Other assets		31,086		10,786		9,860		10,040		400
Separate account assets		275,091		234,208		41,573		1,831		(2,521	)

Total assets		654,234		370,028		100,263		170,952		12,991


Liabilities:
Future policy benefits		158,857		51,399		12,003		92,080		3,375
Policyholders’ account balances		132,202		55,614		28,308		48,273		7
Debt		25,010		4,854		9,240		46		10,870
Other liabilities		29,404		8,955		5,257		12,025		3,167
Separate account liabilities		275,091		234,208		41,573		1,831		(2,521	)

Total liabilities		620,564		355,030		96,381		154,255		14,898


Attributed Equity:
Accumulated other comprehensive income (loss)		6,784		352		559		7,247		(1,374	)
Other attributed equity		26,128		13,888		3,323		9,440		(523	)

Total attributed equity		32,912		14,240		3,882		16,687		(1,897	)

Noncontrolling Interest		758		758		—		10		(10	)

Total Equity		33,670		14,998		3,882		16,697		(1,907	)


Total liabilities and equity		654,234		370,028		100,263		170,952		12,991


	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

Third Quarter 2013

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of September 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		331		5,839		4,884		11,054		668		5,381		4,594		10,643
Operating Debt - Investment related		2,069		7,762		—		9,831		1,258		9,203		—		10,461
Operating Debt - Specified businesses		643		3,482		—		4,125		483		3,876		—		4,359
Limited recourse and non-recourse borrowing		—		—		—		—		—		—		—		—

Total debt - Financial Services Businesses		3,043		17,083		4,884		25,010		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 September 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		9,617		1,042		395		11,054		9,149		1,042		452		10,643
Operating Debt - Investment related		6,046		575		3,210		9,831		6,955		293		3,213		10,461
Operating Debt - Specified businesses		2,400		1,531		194		4,125		2,740		1,468		151		4,359
Limited recourse and non-recourse borrowing		—		—		—		—		—		—		—		—

Total debt - Financial Services Businesses		18,063		3,148		3,799		25,010		18,844		2,803		3,816		25,463

(1)	Includes Prudential Funding, LLC.

(2)	Capital debt at Prudential Insurance Co. of America includes $941 million of surplus notes at both September 30, 2013 and December 31, 2012.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

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

(in millions)


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

								Revenues (1):
	677			525			29%	Premiums		161			31,979			145			256			276
	1,938			1,684			15%	Policy charges and fee income		584			598			619			654			665
	3,592			2,984			20%	Net investment income		1,002			1,096			1,160			1,236			1,196
	3,489			2,949			18%	Asset management fees, commissions and other income		1,074			1,107			1,140			1,159			1,190

	9,696			8,142			19%	Total revenues		2,821			34,780			3,064			3,305			3,327


								Benefits and Expenses (1):
	1,805			1,598			13%	Insurance and annuity benefits		736			32,292			524			683			598
	1,434			1,616			-11%	Interest credited to policyholders’ account balances		504			531			506			495			433
	95			111			-14%	Interest expense		37			33			33			31			31
	(512	)		(858	)		40%	Deferral of acquisition costs		(305	)		(233	)		(235	)		(141	)		(136	)
	190			245			-22%	Amortization of acquisition costs		(20	)		166			145			137			(92	)
	3,800			3,909			-3%	General and administrative expenses		1,363			1,311			1,312			1,253			1,235

	6,812			6,621			3%	Total benefits and expenses		2,315			34,100			2,285			2,458			2,069

	2,884			1,521			90%	Adjusted operating income before income taxes		506			680			779			847			1,258

(1)

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

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

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

(in millions)


	Nine Months Ended September 30, 2013												Quarter Ended September 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		677			79			598			—			276			26			250			—
Policy charges and fee income		1,938			1,784			154			—			665			613			52			—
Net investment income		3,592			526			3,006			60			1,196			169			1,005			22
Asset management fees, commissions and other income		3,489			918			624			1,947			1,190			312			218			660

Total revenues		9,696			3,307			4,382			2,007			3,327			1,120			1,525			682


Benefits and Expenses (1):
Insurance and annuity benefits		1,805			47			1,758			—			598			(68	)		666			—
Interest credited to policyholders’ account balances		1,434			285			1,149			—			433			54			379			—
Interest expense		95			67			20			8			31			22			7			2
Deferral of acquisition costs		(512	)		(474	)		(20	)		(18	)		(136	)		(124	)		(7	)		(5	)
Amortization of acquisition costs		190			159			12			19			(92	)		(99	)		1			6
General and administrative expenses		3,800			1,630			719			1,451			1,235			514			242			479

Total benefits and expenses		6,812			1,714			3,638			1,460			2,069			299			1,288			482

Adjusted operating income before income taxes		2,884			1,593			744			547			1,258			821			237			200


	Nine Months Ended September 30, 2012												Quarter Ended September 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		525			78			447			—			161			24			137			—
Policy charges and fee income		1,684			1,531			153			—			584			531			53			—
Net investment income		2,984			585			2,323			76			1,002			197			767			38
Asset management fees, commissions and other income		2,949			750			588			1,611			1,074			266			205			603

Total revenues		8,142			2,944			3,511			1,687			2,821			1,018			1,162			641


Benefits and Expenses (1):
Insurance and annuity benefits		1,598			518			1,080			—			736			385			351			—
Interest credited to policyholders’ account balances		1,616			331			1,285			—			504			72			432			—
Interest expense		111			85			15			11			37			29			5			3
Deferral of acquisition costs		(858	)		(816	)		(22	)		(20	)		(305	)		(288	)		(10	)		(7	)
Amortization of acquisition costs		245			207			20			18			(20	)		(36	)		10			6
General and administrative expenses		3,909			1,884			720			1,305			1,363			649			264			450

Total benefits and expenses		6,621			2,209			3,098			1,314			2,315			811			1,052			452

Adjusted operating income before income taxes		1,521			735			413			373			506			207			110			189

(1)

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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				3Q			4Q			1Q			2Q			3Q

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	131,608			109,743		Beginning total account value		120,326			128,949			131,608			139,034			137,775
	9,035			16,199		Sales		5,912			3,778			4,208			2,439			2,388
	(5,498	)		(4,881	)	Surrenders and withdrawals		(1,579	)		(1,765	)		(1,776	)		(1,898	)		(1,824	)

	3,537			11,318		Net sales		4,333			2,013			2,432			541			564
	(946	)		(856	)	Benefit payments		(283	)		(313	)		(310	)		(326	)		(310	)

	2,591			10,462		Net flows		4,050			1,700			2,122			215			254
	11,852			10,693		Change in market value, interest credited, and other		5,264			1,687			6,039			(666	)		6,479
	(2,354	)		(1,949	)	Policy charges		(691	)		(728	)		(735	)		(808	)		(811	)

	143,697			128,949		Ending total account value		128,949			131,608			139,034			137,775			143,697


						Fixed Annuities:
	3,734			3,792		Beginning total account value		3,768			3,756			3,734			3,714			3,699
	46			44		Sales		14			11			16			14			16
	(119	)		(112	)	Surrenders and withdrawals		(35	)		(48	)		(41	)		(38	)		(40	)

	(73	)		(68	)	Net redemptions		(21	)		(37	)		(25	)		(24	)		(24	)
	(250	)		(213	)	Benefit payments		(68	)		(68	)		(71	)		(96	)		(83	)

	(323	)		(281	)	Net flows		(89	)		(105	)		(96	)		(120	)		(107	)
	273			247		Interest credited and other		78			83			77			105			91
	(3	)		(2	)	Policy charges		(1	)		—			(1	)		—			(2	)

	3,681			3,756		Ending total account value		3,756			3,734			3,714			3,699			3,681


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (1):
	1,825			2,466		Insurance Agents		903			557			703			547			575
	1,820			4,003		Wirehouses		1,471			929			923			464			433
	3,945			7,147		Independent Financial Planners		2,706			1,661			1,935			1,009			1,001
	1,491			2,627		Bank Distribution		846			642			663			433			395

	9,081			16,243		Total		5,926			3,789			4,224			2,453			2,404

(1)	Amounts represent gross sales.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

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

(in millions)


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

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	11,564			12,830		Beginning balance		12,355			11,929			11,564			11,148			10,903
	976			1,884		Premiums and deposits		674			476			488			258			230
	(730	)		(770	)	Surrenders and withdrawals		(239	)		(288	)		(268	)		(245	)		(217	)

	246			1,114		Net sales		435			188			220			13			13
	(307	)		(271	)	Benefit payments		(86	)		(86	)		(89	)		(116	)		(102	)

	(61	)		843		Net flows		349			102			131			(103	)		(89	)
	259			304		Interest credited and other		97			70			86			92			81
	(1,350	)		(2,046	)	Net transfers to separate account		(871	)		(537	)		(632	)		(234	)		(484	)
	(3	)		(2	)	Policy charges		(1	)		—			(1	)		—			(2	)

	10,409			11,929		Ending balance		11,929			11,564			11,148			10,903			10,409


						Account Values in Separate Account (1):
	123,778			100,705		Beginning balance		111,739			120,776			123,778			131,600			130,571
	8,105			14,359		Premiums and deposits		5,252			3,313			3,736			2,195			2,174
	(4,887	)		(4,223	)	Surrenders and withdrawals		(1,375	)		(1,525	)		(1,549	)		(1,691	)		(1,647	)

	3,218			10,136		Net sales		3,877			1,788			2,187			504			527
	(889	)		(798	)	Benefit payments		(265	)		(295	)		(292	)		(306	)		(291	)

	2,329			9,338		Net flows		3,612			1,493			1,895			198			236
	11,866			10,636		Change in market value, interest credited and other		5,245			1,700			6,030			(653	)		6,489
	1,350			2,046		Net transfers from general account		871			537			632			234			484
	(2,354	)		(1,949	)	Policy charges		(691	)		(728	)		(735	)		(808	)		(811	)

	136,969			120,776		Ending balance		120,776			123,778			131,600			130,571			136,969

(1)

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

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

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

(in millions)


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

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

Variable Annuity Account Values with Living Benefit Features
Guaranteed minimum accumulation benefits		8,224		7,947		7,764		7,290		7,037
Guaranteed minimum withdrawal benefits		980		947		945		895		889
Guaranteed minimum income benefits		3,631		3,556		3,639		3,519		3,583
Guaranteed minimum withdrawal & income benefits		91,366		94,804		101,688		101,686		107,109

Total		104,201		107,254		114,036		113,390		118,618


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		88,672		91,954		98,362		98,119		102,783
Account Values without Auto-Rebalancing Feature		15,529		15,300		15,674		15,271		15,835

Total		104,201		107,254		114,036		113,390		118,618


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		3,013		3,145		2,435		3,134		2,378
Net Amount at Risk without Auto-Rebalancing Feature		1,701		1,663		1,346		1,434		1,176

Total		4,714		4,808		3,781		4,568		3,554

(1)	At end of period.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

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

(in millions)


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

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

Variable Annuity Account Values by Death Benefit Features
Return of net deposits:
Account value		94,401		96,951		102,944		102,277		107,025
Net amount at risk		850		769		584		677		532
Minimum return, anniversary contract value, or maximum contract value:
Account value		31,510		31,687		33,046		32,511		33,592
Net amount at risk		4,268		4,207		3,574		3,931		3,330

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		88,672		91,954		98,362		98,119		102,783
Account Values without Auto-Rebalancing Feature		37,239		36,684		37,628		36,669		37,834

Total		125,911		128,638		135,990		134,788		140,617


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		983		958		715		1,064		774
Net Amount at Risk without Auto-Rebalancing Feature		4,135		4,018		3,443		3,544		3,088

Total		5,118		4,976		4,158		4,608		3,862

(1)	At end of period.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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				3Q			4Q			1Q			2Q			3Q

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	148,405			139,430		Beginning total account value		142,405			146,934			148,405			156,380			157,738
	14,831			12,487		Deposits and sales		3,478			3,903			5,679			3,697			5,455
	(12,925	)		(14,837	)	Withdrawals and benefits		(4,063	)		(4,386	)		(4,676	)		(3,622	)		(4,627	)
	15,053			9,854		Change in market value, interest credited, interest income and other activity		5,114			1,954			6,972			1,283			6,798

	165,364			146,934		Ending total account value		146,934			148,405			156,380			157,738			165,364


	1,906			(2,350	)	Net additions (withdrawals)		(585	)		(483	)		1,003			75			828


						Stable value account values included above		42,044			42,836			43,065			43,365			44,186

						Institutional Investment Products:
	141,435			90,089		Beginning total account value		102,443			104,646			141,435			143,011			144,101
	13,239			15,813		Additions (1)		2,957			39,192			3,845			4,360			5,034
	(7,268	)		(5,909	)	Withdrawals and benefits		(1,539	)		(2,586	)		(2,319	)		(2,462	)		(2,487	)
	87			3,999		Change in market value, interest credited and interest income		1,509			788			202			(662	)		547
	(393	)		654		Other (2)		(724	)		(605	)		(152	)		(146	)		(95	)

	147,100			104,646		Ending total account value (3)		104,646			141,435			143,011			144,101			147,100


	5,971			9,904		Net additions		1,418			36,606			1,526			1,898			2,547

(1)

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.

(2)

“Other” activity includes transfers to internally managed accounts of $(1,008) million for the three months ended December 31, 2012. These transfers are offset in additions discussed above in note 1. The remainder of “Other” activity primarily represents changes in asset balances for externally managed accounts.

(3)

Ending total account values for Institutional Investment Products business includes $1.5 billion as of September 30, 2012, and $1.9 billion as of December 31, 2012, March 31, 2013, June 30, 2013, and September 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

Third 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			3Q		4Q		1Q		2Q		3Q

						Analysis of revenues by type:
	1,390		1,234		13%	Asset management fees		424		433		451		467		472
	209		118		77%	Other related revenues		113		89		65		60		84
	408		335		22%	Service, distribution and other revenues		104		134		144		138		126

	2,007		1,687		19%	Total Asset Management segment revenues		641		656		660		665		682


						Analysis of asset management fees by source:
	620		574		8%	Institutional customers		194		201		203		207		210
	460		377		22%	Retail customers		132		132		145		154		161
	310		283		10%	General account		98		100		103		106		101

	1,390		1,234		13%	Total asset management fees		424		433		451		467		472


Supplementary Assets Under Management Information (in billions):
	September 30, 2013
	Equity		Fixed Income		Real Estate		Total
Institutional customers		60.3		236.0		34.0		330.3
Retail customers		107.6		49.3		2.2		159.1
General account		8.3		349.2		1.2		358.7

Total		176.2		634.5		37.4		848.1


	September 30, 2012
	Equity		Fixed Income		Real Estate		Total
Institutional customers		51.5		221.0		30.6		303.1
Retail customers		86.3		46.2		1.4		133.9
General account		9.0		330.3		1.4		340.7

Total		146.8		597.5		33.4		777.7

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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				3Q			4Q			1Q			2Q			3Q

					Institutional Assets Under Management:

					Assets gathered by Investment Management & Advisory Services sales force:
	274.6		234.2		Beginning assets under management		251.4			263.8			274.6			282.9			279.6
	43.3		38.0		Additions		12.7			20.8			14.4			14.8			14.1
	(29.2)		(29.2	)	Withdrawals		(9.3	)		(12.4	)		(7.5	)		(11.7	)		(10.0	)
	1.8		20.3		Change in market value		8.9			2.8			1.9			(6.1	)		6.0
	—		0.3		Net money market flows		0.1			(0.1	)		(0.2	)		—			0.2
	(0.5)		0.2		Other (1)		—			(0.3	)		(0.3	)		(0.3	)		0.1

	290.0		263.8		Ending assets under management		263.8			274.6			282.9			279.6			290.0
	40.3		39.3		Affiliated institutional assets under management		39.3			39.1			40.3			39.5			40.3

	330.3		303.1		Total assets managed for institutional customers at end of period		303.1			313.7			323.2			319.1			330.3


	14.1		8.8		Net institutional additions, excluding money market activity		3.4			8.4			6.9			3.1			4.1


					Retail Assets Under Management:

					Assets gathered by Investment Management & Advisory Services sales force:
	91.1		69.6		Beginning assets under management		81.1			87.8			91.1			97.9			100.4
	30.4		26.9		Additions		8.0			10.1			10.9			12.4			7.1
	(27.5)		(17.5	)	Withdrawals		(5.5	)		(6.7	)		(9.1	)		(9.9	)		(8.5	)
	12.5		8.9		Change in market value		4.3			(0.1	)		5.0			—			7.5
	—		(0.1	)	Net money market flows		(0.1	)		—			—			—			—
	—		—		Other		—			—			—			—			—

	106.5		87.8		Ending assets under management		87.8			91.1			97.9			100.4			106.5
	52.6		46.1		Affiliated retail assets under management		46.1			47.6			45.9			52.0			52.6

	159.1		133.9		Total assets managed for retail customers at end of period		133.9			138.7			143.8			152.4			159.1


	2.9		9.4		Net retail additions (withdrawals), excluding money market activity		2.5			3.4			1.8			2.5			(1.4	)

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

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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			3Q			4Q			1Q			2Q			3Q

								Revenues (1):
	3,829			3,854			-1%	Premiums		1,295			1,274			1,279			1,294			1,256
	1,798			1,317			37%	Policy charges and fee income		537			439			657			654			487
	1,474			1,211			22%	Net investment income		409			408			473			504			497
	450			348			29%	Asset management fees, commissions and other income		127			117			148			159			143

	7,551			6,730			12%	Total revenues		2,368			2,238			2,557			2,611			2,383


								Benefits and Expenses (1):
	4,679			4,358			7%	Insurance and annuity benefits		1,433			1,411			1,605			1,578			1,496
	602			411			46%	Interest credited to policyholders’ account balances		139			146			193			201			208
	302			240			26%	Interest expense		83			83			96			98			108
	(583	)		(292	)		-100%	Deferral of acquisition costs		(103	)		(199	)		(220	)		(186	)		(177	)
	64			344			-81%	Amortization of acquisition costs		210			80			73			102			(111	)
	1,962			1,356			45%	General and administrative expenses		459			630			664			655			643

	7,026			6,417			9%	Total benefits and expenses		2,221			2,151			2,411			2,448			2,167


	525			313			68%	Adjusted operating income before income taxes		147			87			146			163			216

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

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

(in millions)


	Nine Months Ended September 30, 2013									Quarter Ended September 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		3,829			595			3,234			1,256			198			1,058
Policy charges and fee income		1,798			1,412			386			487			374			113
Net investment income		1,474			1,037			437			497			353			144
Asset management fees, commissions and other income		450			364			86			143			116			27

Total revenues		7,551			3,408			4,143			2,383			1,041			1,342


Benefits and Expenses (1):
Insurance and annuity benefits		4,679			1,421			3,258			1,496			487			1,009
Interest credited to policyholders’ account balances		602			430			172			208			149			59
Interest expense		302			297			5			108			108			—
Deferral of acquisition costs		(583	)		(581	)		(2	)		(177	)		(173	)		(4	)
Amortization of acquisition costs		64			57			7			(111	)		(113	)		2
General and administrative expenses		1,962			1,358			604			643			435			208

Total benefits and expenses		7,026			2,982			4,044			2,167			893			1,274


Adjusted operating income before income taxes		525			426			99			216			148			68


	Nine Months Ended September 30, 2012									Quarter Ended September 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		3,854			542			3,312			1,295			184			1,111
Policy charges and fee income		1,317			947			370			537			407			130
Net investment income		1,211			771			440			409			261			148
Asset management fees, commissions and other income		348			267			81			127			96			31

Total revenues		6,730			2,527			4,203			2,368			948			1,420


Benefits and Expenses (1):
Insurance and annuity benefits		4,358			943			3,415			1,433			299			1,134
Interest credited to policyholders’ account balances		411			241			170			139			83			56
Interest expense		240			235			5			83			80			3
Deferral of acquisition costs		(292	)		(292	)		—			(103	)		(103	)		—
Amortization of acquisition costs		344			341			3			210			209			1
General and administrative expenses		1,356			774			582			459			268			191

Total benefits and expenses		6,417			2,242			4,175			2,221			836			1,385


Adjusted operating income before income taxes		313			285			28			147			112			35

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

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 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				3Q			4Q			1Q			2Q			3Q

						ANNUALIZED NEW BUSINESS PREMIUMS (1) :

	25			13		Variable life		4			8			9			7			9
	388			128		Universal life		52			90			157			124			107
	152			127		Term life		42			46			50			53			49

	565			268		Total		98			144			216			184			165


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	72			66		Prudential Agents		22			24			25			25			22
	493			202		Third party distribution		76			120			191			159			143

	565			268		Total		98			144			216			184			165


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2)(3):*
	10,583			9,500		Beginning balance		10,021			10,058			10,583			20,026			20,710
	2,965			1,488		Premiums and deposits		506			709			1,108			965			892
	(811	)		(625	)	Surrenders and withdrawals		(209	)		(213	)		(240	)		(305	)		(266	)

	2,154			863		Net sales		297			496			868			660			626
	(310	)		(175	)	Benefit payments		(53	)		(59	)		(133	)		(86	)		(91	)

	1,844			688		Net flows		244			437			735			574			535
	935			(79	)	Interest credited and other		(195	)		111			276			299			360
	270			216		Net transfers from separate account		68			84			88			98			84
	(949	)		(267	)	Policy charges		(80	)		(107	)		(340	)		(287	)		(322	)
	8,684			—		Acquisition		—			—			8,684			—			—

	21,367			10,058		Ending balance		10,058			10,583			20,026			20,710			21,367


						*Separate Account Liabilities (3):*
	17,817			16,491		Beginning balance		17,113			17,835			17,817			24,611			24,555
	885			631		Premiums and deposits		212			218			305			384			196
	(670	)		(423	)	Surrenders and withdrawals		(148	)		(154	)		(233	)		(315	)		(122	)

	215			208		Net sales		64			64			72			69			74
	(92	)		(23	)	Benefit payments		(8	)		(7	)		(41	)		(52	)		1

	123			185		Net flows		56			57			31			17			75
	2,831			1,863		Change in market value, interest credited and other		895			173			1,487			353			991
	(270	)		(216	)	Net transfers to general account		(68	)		(84	)		(88	)		(98	)		(84	)
	(728	)		(488	)	Policy charges		(161	)		(164	)		(243	)		(328	)		(157	)
	5,607			—		Acquisition		—			—			5,607			—			—

	25,380			17,835		Ending balance		17,835			17,817			24,611			24,555			25,380


						FACE AMOUNT IN FORCE (4):

						Variable life		111,159			110,218			175,851			173,991			173,142
						Universal life		47,943			53,092			130,182			135,686			139,808
						Term life		499,051			506,868			597,272			606,212			614,032

						Total		658,153			670,178			903,305			915,889			926,982

(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

Third 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			3Q		4Q		1Q		2Q		3Q

				Individual Life Insurance:

				Policy Surrender Experience:
	882		489	Cash value of surrenders		165		169		303		295		284
	2.9%		2.7%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances		2.6%		2.6%		3.1%		2.9%		2.7%

				Death benefits per $1,000 of in force (1):
	4.60		4.89	Variable and universal life		4.38		4.17		4.35		4.19		5.31
	1.21		1.50	Term life		1.00		1.36		1.29		1.34		1.01
	3.22		3.12	Total, Individual Life Insurance		2.60		2.69		3.10		3.05		3.53

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

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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			3Q			4Q			1Q			2Q			3Q

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	196		253	Group life		18			51			148			15			33
	65		128	Group disability		28			7			45			7			13

	261		381	Total		46			58			193			22			46


				Future Policy Benefits (1):
				Group life		2,231			2,385			2,297			2,292			2,123
				Group disability		17			4			34			23			13

				Total		2,248			2,389			2,331			2,315			2,136


				Policyholders’ Account Balances (1):
				Group life		7,522			7,726			7,657			7,696			7,822
				Group disability		193			209			212			214			233

				Total		7,715			7,935			7,869			7,910			8,055


				Separate Account Liabilities (1):
				Group life		20,110			21,940			23,076			22,352			22,017
				Group disability		—			—			—			—			—

				Total		20,110			21,940			23,076			22,352			22,017


				Group Life Insurance:
	3,086		3,098	Gross premiums, policy charges and fee income (2)		1,019			1,079			1,074			1,052			960
	2,946		2,989	Earned premiums, policy charges and fee income		1,010			994			997			1,001			948
	89.3%		91.5%	Benefits ratio		90.7	%		89.0	%		92.2	%		90.6	%		84.8	%
	9.9%		9.4%	Administrative operating expense ratio		9.2	%		11.8	%		9.2	%		9.6	%		11.1	%
				Persistency ratio		94.5	%		94.0	%		95.0	%		94.7	%		93.8	%

				Group Disability Insurance:
	725		716	Gross premiums, policy charges and fee income (2)		239			243			240			242			243
	674		693	Earned premiums, policy charges and fee income		231			232			231			220			223
	93.2%		97.8%	Benefits ratio		93.9	%		98.7	%		94.4	%		93.2	%		91.9	%
	26.1%		24.3%	Administrative operating expense ratio		23.8	%		28.4	%		26.7	%		25.6	%		25.9	%
				Persistency ratio		90.5	%		89.3	%		91.7	%		89.7	%		88.1	%

(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

Third 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				3Q			4Q			1Q			2Q			3Q

						DEFERRED POLICY ACQUISITION COSTS

						INDIVIDUAL ANNUITIES:
	3,829			2,390		Beginning balance		2,619			3,457			3,829			4,223			4,577
	474			816		Capitalization		288			200			223			127			124
	(159	)		(207	)	Amortization - operating results		36			(131	)		(134	)		(124	)		99
	1,072			446		Amortization - realized investment gains and losses		518			288			271			291			510
	98			12		Impact of unrealized (gains) or losses on AFS securities		(4	)		15			34			60			4
	—			—		Other		—			—			—			—			—

	5,314			3,457		Ending balance		3,457			3,829			4,223			4,577			5,314


						INDIVIDUAL LIFE INSURANCE:
	3,116			3,192		Beginning balance		3,238			2,994			3,116			3,317			3,646
	581			292		Capitalization		103			144			220			188			173
	(57	)		(341	)	Amortization - operating results		(209	)		(78	)		(71	)		(99	)		113
	11			—		Amortization - realized investment gains and losses		—			—			2			5			4
	301			(149	)	Impact of unrealized (gains) or losses on AFS securities		(138	)		56			50			235			16

	3,952			2,994		Ending balance		2,994			3,116			3,317			3,646			3,952


						GROUP INSURANCE:
	182			132		Beginning balance		130			129			182			180			175
	2			—		Capitalization		—			55			—			(2	)		4
	(7	)		(3	)	Amortization - operating results		(1	)		(2	)		(2	)		(3	)		(2	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	177			129		Ending balance		129			182			180			175			177


						DEFERRED SALES INDUCEMENTS

						INDIVIDUAL ANNUITIES:
	1,357			1,000		Beginning balance		1,032			1,275			1,357			1,425			1,506
	44			240		Capitalization		70			18			16			15			13
	(98	)		(115	)	Amortization - operating results		(2	)		(50	)		(54	)		(52	)		8
	428			139		Amortization - realized investment gains and losses		172			107			92			101			235
	33			11		Impact of unrealized losses on AFS securities		3			7			14			17			2
	—			—		Other		—			—			—			—			—

	1,764			1,275		Ending balance		1,275			1,357			1,425			1,506			1,764

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


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

									Revenues (1):
	13,373			16,583			-19	%	Premiums		6,814			7,901			4,914			4,570			3,889
	463			441			5	%	Policy charges and fee income		139			156			159			162			142
	3,246			3,163			3	%	Net investment income		1,119			1,105			1,093			1,067			1,086
	467			190			146	%	Asset management fees, commissions and other income		82			47			184			141			142

	17,549			20,377			-14	%	Total revenues		8,154			9,209			6,350			5,940			5,259


									Benefits and Expenses (1):
	11,456			14,037			-18	%	Insurance and annuity benefits		5,982			7,068			4,203			3,904			3,349
	745			851			-12	%	Interest credited to policyholders’ account balances		303			271			267			233			245
	1			1			0	%	Interest expense		1			2			1			—			—
	(1,171	)		(1,506	)		22	%	Deferral of acquisition costs		(494	)		(518	)		(427	)		(397	)		(347	)
	779			823			-5	%	Amortization of acquisition costs		279			350			270			275			234
	3,234			4,114			-21	%	General and administrative expenses		1,301			1,389			1,159			1,075			1,000

	15,044			18,320			-18	%	Total benefits and expenses		7,372			8,562			5,473			5,090			4,481


	2,505			2,057			22	%	Adjusted operating income before income taxes		782			647			877			850			778

(1)

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

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	Nine Months Ended September 30, 2013									Quarter Ended September 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		13,373			5,119			8,254			3,889			1,606			2,283
Policy charges and fee income		463			263			200			142			88			54
Net investment income		3,246			1,198			2,048			1,086			405			681
Asset management fees, commissions and other income		467			194			273			142			74			68

Total revenues		17,549			6,774			10,775			5,259			2,173			3,086


Benefits and Expenses (1):
Insurance and annuity benefits		11,456			4,336			7,120			3,349			1,364			1,985
Interest credited to policyholders’ account balances		745			187			558			245			63			182
Interest expense		1			1			—			—			—			—
Deferral of acquisition costs		(1,171	)		(529	)		(642	)		(347	)		(153	)		(194	)
Amortization of acquisition costs		779			333			446			234			96			138
General and administrative expenses		3,234			1,232			2,002			1,000			379			621

Total benefits and expenses		15,044			5,560			9,484			4,481			1,749			2,732


Adjusted operating income before income taxes		2,505			1,214			1,291			778			424			354


	Nine Months Ended September 30, 2012									Quarter Ended September 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		16,583			5,243			11,340			6,814			1,727			5,087
Policy charges and fee income		441			271			170			139			83			56
Net investment income		3,163			1,185			1,978			1,119			418			701
Asset management fees, commissions and other income		190			47			143			82			9			73

Total revenues		20,377			6,746			13,631			8,154			2,237			5,917


Benefits and Expenses (1):
Insurance and annuity benefits		14,037			4,328			9,709			5,982			1,436			4,546
Interest credited to policyholders’ account balances		851			209			642			303			80			223
Interest expense		1			—			1			1			—			1
Deferral of acquisition costs		(1,506	)		(628	)		(878	)		(494	)		(190	)		(304	)
Amortization of acquisition costs		823			326			497			279			76			203
General and administrative expenses		4,114			1,362			2,752			1,301			442			859

Total benefits and expenses		18,320			5,597			12,723			7,372			1,844			5,528


Adjusted operating income before income taxes		2,057			1,149			908			782			393			389

(1)

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

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


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

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	4,122		4,340	Japan, excluding Gibraltar Life		1,416		1,389		1,559		1,292		1,271
	8,454		11,510	Gibraltar Life		5,143		6,229		3,093		3,024		2,337
	1,260		1,174	All other countries		394		439		421		416		423

	13,836		17,024	Total		6,953		8,057		5,073		4,732		4,031


				Annualized new business premiums:
	580		802	Japan, excluding Gibraltar Life		181		190		249		179		152
	1,364		1,911	Gibraltar Life		680		813		459		498		407
	257		268	All other countries		93		94		96		76		85

	2,201		2,981	Total		954		1,097		804		753		644


				Annualized new business premiums by distribution channel:
	837		1,070	Life Planners		274		284		345		255		237
	612		717	Gibraltar Life Consultants		208		213		204		232		176
	588		887	Banks		433		547		209		197		182
	164		307	Independent Agency		39		53		46		69		49

	2,201		2,981	Total		954		1,097		804		753		644


				Constant exchange rate basis (2):

				Net premiums, policy charges and fee income:
	4,718		4,318	Japan, excluding Gibraltar Life		1,398		1,405		1,736		1,493		1,489
	9,700		11,406	Gibraltar Life		5,076		6,252		3,395		3,556		2,749
	1,233		1,155	All other countries		388		421		402		412		419

	15,651		16,879	Total		6,862		8,078		5,533		5,461		4,657


				Annualized new business premiums:
	669		800	Japan, excluding Gibraltar Life		178		192		280		210		179
	1,514		1,898	Gibraltar Life		670		806		488		565		461
	253		264	All other countries		93		91		92		75		86

	2,436		2,962	Total		941		1,089		860		850		726


				Annualized new business premiums by distribution channel:
	922		1,064	Life Planners		271		283		372		285		265
	684		710	Gibraltar Life Consultants		203		212		217		265		202
	649		880	Banks		429		542		223		222		204
	181		308	Independent Agency		38		52		48		78		55

	2,436		2,962	Total		941		1,089		860		850		726

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

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


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

Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life		356			359			364			367			369
Gibraltar Life		406			411			414			414			415
All other countries		106			107			108			109			110

Total		868			877			886			890			894


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		2,794			2,825			2,880			2,911			2,936
Gibraltar Life		7,432			7,449			7,417			7,340			7,307
All other countries		1,643			1,662			1,680			1,697			1,715

Total		11,869			11,936			11,977			11,948			11,958


International life insurance policy persistency:

Excluding Gibraltar Life:
13 months		93.0	%		93.0	%		93.0	%		93.2	%		93.1	%
25 months		85.7	%		86.1	%		86.3	%		86.3	%		85.9	%

Gibraltar Life:
13 months		90.4	%		89.7	%		89.4	%		89.6	%		90.8	%
25 months		82.0	%		82.4	%		82.2	%		81.9	%		83.0	%

Number of Life Planners at end of period:
Japan		3,169			3,216			3,284			3,243			3,274
All other countries		3,760			3,842			3,817			3,870			3,934

Total life planners		6,929			7,058			7,101			7,113			7,208


Gibraltar Life Consultants		11,683			11,333			10,252			9,795			9,298

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

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

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 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		241,651		26,993		214,658		66.0	%		254,096		28,790		225,306		68.2	%
Public, held-to-maturity, at amortized cost		2,677		—		2,677		0.8	%		3,116		—		3,116		0.9	%
Private, available-for-sale, at fair value		46,767		16,741		30,026		9.2	%		46,875		17,629		29,246		8.8	%
Private, held-to-maturity, at amortized cost		952		—		952		0.3	%		1,152		—		1,152		0.3	%
Trading account assets supporting insurance liabilities, at fair value		21,131		—		21,131		6.5	%		20,590		—		20,590		6.2	%
Other trading account assets, at fair value		1,641		282		1,359		0.4	%		1,701		275		1,426		0.4	%
Equity securities, available-for-sale, at fair value		8,982		3,496		5,486		1.7	%		8,256		3,225		5,031		1.5	%
Commercial mortgage and other loans, at book value		39,299		9,788		29,511		9.1	%		36,231		9,608		26,623		8.1	%
Policy loans, at outstanding balance		11,863		5,036		6,827		2.1	%		11,575		5,120		6,455		2.0	%
Other long-term investments (1)		8,643		1,965		6,678		2.0	%		8,677		2,012		6,665		2.0	%
Short-term investments		8,235		2,093		6,142		1.9	%		6,385		1,261		5,124		1.6	%

Subtotal (2)		391,841		66,394		325,447		100.0	%		398,654		67,920		330,734		100.0	%

Invested assets of other entities and operations (3)		6,798		—		6,798					6,928		—		6,928

Total investments		398,639		66,394		332,245					405,582		67,920		337,662

Fixed Maturities by Credit Quality (2):


	September 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		172,817		13,803		3,310		183,310		84.3	%		181,892		15,753		985		196,660		86.0	%
2		27,024		1,879		1,066		27,837		12.8	%		25,074		2,029		439		26,664		11.7	%

Subtotal - High or Highest Quality Securities		199,841		15,682		4,376		211,147		97.1	%		206,966		17,782		1,424		223,324		97.7	%

3		4,309		189		176		4,322		2.0	%		3,670		128		204		3,594		1.6	%
4		1,641		138		71		1,708		0.8	%		1,351		100		122		1,329		0.6	%
5		284		32		22		294		0.1	%		340		20		58		302		0.1	%
6		47		15		3		59		0.0	%		55		10		17		48		0.0	%

Subtotal - Other Securities		6,281		374		272		6,383		2.9	%		5,416		258		401		5,273		2.3	%

Total		206,122		16,056		4,648		217,530		100.0	%		212,382		18,040		1,825		228,597		100.0	%


Private Fixed Maturities:
NAIC Rating (4)
1		7,707		729		67		8,369		27.0	%		7,237		811		52		7,996		26.2	%
2		17,835		1,552		144		19,243		62.0	%		17,350		1,659		217		18,792		61.7	%

Subtotal - High or Highest Quality Securities		25,542		2,281		211		27,612		89.0	%		24,587		2,470		269		26,788		87.9	%

3		2,266		156		18		2,404		7.7	%		2,416		173		29		2,560		8.4	%
4		690		27		12		705		2.3	%		631		33		7		657		2.2	%
5		222		5		13		214		0.7	%		310		7		16		301		1.0	%
6		77		16		2		91		0.3	%		131		29		—		160		0.5	%

Subtotal - Other Securities		3,255		204		45		3,414		11.0	%		3,488		242		52		3,678		12.1	%

Total		28,797		2,485		256		31,026		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 operations and (iii) those assets classified as “Separate account assets” on our balance sheet.

(3)	Includes invested assets of our asset management and derivative operations. Excludes assets of our asset management operations managed for third parties and those assets classified as “Separate account assets” on our balance sheet.

(4)

Reflects equivalent ratings for investments of the international insurance operations. Includes, as of September 30, 2013 and December 31, 2012, respectively, 308 securities with amortized cost of $765 million (fair value $794 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

Third Quarter 2013

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2013					December 31, 2012
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (1):
Fixed maturities:
Public, available-for-sale, at fair value		113,609		81.3	%		124,710		82.2	%
Public, held-to-maturity, at amortized cost		2,677		1.9	%		3,116		2.0	%
Private, available-for-sale, at fair value		6,504		4.6	%		6,252		4.1	%
Private, held-to-maturity, at amortized cost		952		0.7	%		1,152		0.8	%
Trading account assets supporting insurance liabilities, at fair value		1,897		1.4	%		1,838		1.2	%
Other trading account assets, at fair value		907		0.6	%		1,195		0.8	%
Equity securities, available-for-sale, at fair value		2,474		1.8	%		2,126		1.4	%
Commercial mortgage and other loans, at book value		6,380		4.6	%		6,156		4.1	%
Policy loans, at outstanding balance		2,376		1.7	%		2,665		1.7	%
Other long-term investments (2)		1,741		1.2	%		2,215		1.5	%
Short-term investments		281		0.2	%		318		0.2	%

Total		139,798		100.0	%		151,743		100.0	%


	September 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		101,049		54.4	%		100,596		56.2	%
Public, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available-for-sale, at fair value		23,522		12.7	%		22,994		12.9	%
Private, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		19,234		10.4	%		18,752		10.5	%
Other trading account assets, at fair value		452		0.2	%		231		0.1	%
Equity securities, available-for-sale, at fair value		3,012		1.6	%		2,905		1.6	%
Commercial mortgage and other loans, at book value		23,131		12.4	%		20,467		11.4	%
Policy loans, at outstanding balance		4,451		2.4	%		3,790		2.1	%
Other long-term investments (2)		4,937		2.7	%		4,450		2.5	%
Short-term investments		5,861		3.2	%		4,806		2.7	%

Total		185,649		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

Third Quarter 2013

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended September 30
	2013									2012
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (3)			Amount			(Losses)			Yield (3)			Amount			(Losses)
Financial Services Businesses (1):
Fixed maturities		3.76	%		2,133			296			3.69	%		1,897			(92	)
Equity securities		6.92	%		72			18			6.47	%		68			10
Commercial mortgage and other loans		4.91	%		295			1			5.27	%		283			8
Policy loans		4.82	%		81			—			4.60	%		73			—
Short-term investments and cash equivalents		0.24	%		7			—			0.21	%		7			—
Other investments		6.34	%		126			(2,684	)		5.26	%		83			(1,473	)

Gross investment income before investment expenses		3.86	%		2,714			(2,369	)		3.77	%		2,411			(1,547	)
Investment expenses		-0.13	%		(65	)		—			-0.12	%		(61	)		—

Subtotal		3.73	%		2,649			(2,369	)		3.65	%		2,350			(1,547	)

Investment results of other entities and operations (2)					268			50						315			28
Less, investment income related to adjusted operating income reconciling items					(44	)								(34	)

Total					2,873			(2,319	)					2,631			(1,519	)


	Nine Months Ended September 30
	2013									2012
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (3)			Amount			(Losses)			Yield (3)			Amount			(Losses)
Financial Services Businesses (1):
Fixed maturities		3.75	%		6,416			615			3.75	%		5,610			(224	)
Equity securities		6.53	%		200			82			6.10	%		186			(59	)
Commercial mortgage and other loans		5.02	%		868			(4	)		5.27	%		824			11
Policy loans		4.76	%		235			—			4.62	%		215			—
Short-term investments and cash equivalents		0.21	%		23			1			0.25	%		24			—
Other investments		6.45	%		379			(4,947	)		4.10	%		194			(1,049	)

Gross investment income before investment expenses		3.82	%		8,121			(4,253	)		3.78	%		7,053			(1,321	)
Investment expenses		-0.13	%		(222	)		—			-0.13	%		(186	)		—

Subtotal		3.69	%		7,899			(4,253	)		3.65	%		6,867			(1,321	)

Investment results of other entities and operations (2)					834			112						890			37
Less, investment income related to adjusted operating income reconciling items					(138	)								(100	)

Total					8,595			(4,141	)					7,657			(1,284	)

(1)

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

(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 operations.

(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

Third Quarter 2013

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 30
	2013									2012
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (1)			Amount			(Losses)			Yield (1)			Amount			(Losses)
Japanese Insurance Operations:
Fixed maturities		2.95	%		806			335			2.71	%		844			(97	)
Equity securities		5.62	%		25			16			4.58	%		22			(10	)
Commercial mortgage and other loans		4.12	%		63			2			4.18	%		62			4
Policy loans		3.80	%		23			—			3.57	%		25			—
Short-term investments and cash equivalents		0.21	%		1			—			0.14	%		1			—
Other investments (2)		9.15	%		59			15			6.00	%		59			18

Gross investment income before investment expenses		3.14	%		977			368			2.84	%		1,013			(85	)
Investment expenses		-0.13	%		(40	)		—			-0.12	%		(44	)		—

Total		3.01	%		937			368			2.72	%		969			(85	)


	Nine Months Ended September 30
	2013									2012
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (1)			Amount			(Losses)			Yield (1)			Amount			(Losses)
Japanese Insurance Operations:
Fixed maturities		2.88	%		2,459			710			2.73	%		2,456			(209	)
Equity securities		5.01	%		67			66			3.40	%		50			(89	)
Commercial mortgage and other loans		4.21	%		192			6			4.09	%		174			9
Policy loans		3.61	%		66			—			3.50	%		73			—
Short-term investments and cash equivalents		0.18	%		3			—			0.16	%		4			—
Other investments (2)		6.51	%		141			(763	)		4.45	%		133			78

Gross investment income before investment expenses		3.02	%		2,928			19			2.80	%		2,890			(211	)
Investment expenses		-0.12	%		(118	)		—			-0.13	%		(137	)		—

Total		2.90	%		2,810			19			2.67	%		2,753			(211	)

(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

Third Quarter 2013

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 30
	2013									2012
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (2)			Amount			(Losses)			Yield (2)			Amount			(Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		4.52	%		1,327			(39	)		5.21	%		1,053			5
Equity securities		7.88	%		47			2			8.15	%		46			20
Commercial mortgage and other loans		5.18	%		232			(1	)		5.69	%		221			4
Policy loans		5.37	%		58			—			5.41	%		48			—
Short-term investments and cash equivalents		0.24	%		6			—			0.24	%		6			—
Other investments		5.01	%		67			(2,699	)		4.08	%		24			(1,491	)

Gross investment income before investment expenses		4.42	%		1,737			(2,737	)		4.95	%		1,398			(1,462	)
Investment expenses		0.13	%		(25	)		—			-0.12	%		(17	)		—

Total		4.29	%		1,712			(2,737	)		4.83	%		1,381			(1,462	)


	Nine Months Ended September 30
	2013									2012
	Investment Income						Realized Gains /			Investment Income						Realized Gains /
	Yield (2)			Amount			(Losses)			Yield (2)			Amount			(Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities		4.61	%		3,957			(95	)		5.30	%		3,154			(15	)
Equity securities		7.70	%		133			16			8.63	%		136			30
Commercial mortgage and other loans		5.31	%		676			(10	)		5.72	%		650			2
Policy loans		5.43	%		169			—			5.53	%		142			—
Short-term investments and cash equivalents		0.22	%		20			1			0.28	%		20			—
Other investments		6.41	%		238			(4,184	)		3.50	%		61			(1,127	)

Gross investment income before investment expenses		4.49	%		5,193			(4,272	)		4.99	%		4,163			(1,110	)
Investment expenses		-0.13	%		(104	)		—			-0.12	%		(49	)		—

Total		4.36	%		5,089			(4,272	)		4.87	%		4,114			(1,110	)

(1)

(2)

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

INDIVIDUAL ANNUITIES - LINE ITEM IMPACT OF THIRD QUARTER 2012 AND 2013 ACTUARIAL UPDATES

(in millions)


	Insurance and Annuity Benefits						Interest Credited to Policyholders’ Account Balances						Amortization of Deferred Policy Acquisition Costs						General and Administrative Expenses						Pre-Tax Adjusted Operating Income
	Third Quarter 2012			Third Quarter 2013			Third Quarter 2012			Third Quarter 2013			Third Quarter 2012			Third Quarter 2013			Third Quarter 2012			Third Quarter 2013			Third Quarter 2012			Third Quarter 2013
Actuarial Item:

Annual review of assumptions including: persistency, investment margins, costs associated with guaranteed benefits, and other elements of gross profits		327			(69	)		(49	)		(46	)		(156	)		(187	)		(16	)		1			(106	)		301

Quarterly adjustments for market performance and current quarter experience		(31	)		(94	)		(6	)		(13	)		(20	)		(42	)		(1	)		(1	)		58			150


Total of above items		296			(163	)		(55	)		(59	)		(176	)		(229	)		(17	)		0			(48	)		451


Reported amount		385			(68	)		72			54			(36	)		(99	)		649			514


Amount excluding impact of items indicated above		89			95			127			113			140			130			666			514

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

INDIVIDUAL LIFE - LINE ITEM IMPACT OF THIRD QUARTER 2012 AND 2013 ACTUARIAL UPDATES

(in millions)


	Policy Charges and Fee Income (1)					Insurance and Annuity Benefits (2)					Amortization of Deferred Policy Acquisition Costs					General and Administrative Expenses				Pre-Tax Adjusted Operating Income
	Third Quarter 2012		Third Quarter 2013			Third Quarter 2012		Third Quarter 2013			Third Quarter 2012		Third Quarter 2013			Third Quarter 2012		Third Quarter 2013		Third Quarter 2012			Third Quarter 2013
Actuarial Item:

Annual review of assumptions for mortality, persistency, premium payment pattern, and other elements of expected gross profits, and guaranteed minimum death benefits		121		(145	)		11		(11	)		137		(176	)		0		15		(27	)		27


Reported amount		407		374			299		487			209		(113	)		268		435


Amount excluding impact of items indicated above		286		519			288		498			72		63			268		420

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

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

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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) (3):*
				Assets Under Management :
				Managed by U.S. Retirement Solutions and Investment Management Division:
				Asset Management Segment - Investment Management & Advisory Services
	271.8		237.8	Institutional customers		286.1		289.2		303.1		313.7		323.2
	119.3		110.6	Retail customers		125.1		131.7		133.9		138.7		143.8
	326.7		257.4	General account		321.3		331.4		340.7		374.6		373.3

	717.8		605.8	Total Investment Management and Advisory Services		732.5		752.3		777.7		827.0		840.3
	152.2		149.8	Non-proprietary assets under management		176.8		176.2		193.0		196.8		180.7

	870.0		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
	13.8		13.1	Managed by U.S. Individual Life and Group Insurance Division		14.8		13.6		13.7		16.4		22.6
	16.9		15.3	Managed by International Insurance Division		18.8		19.0		20.5		20.1		17.8

	900.7		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

	967.6		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)	Reflects corrected reclassification of assets under management previously reported in the second quarter 2013 for the year ended December 31, 2011.

(2)	As of end of period.

(3)	At fair market value.

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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.

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 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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 11.8% for the three months ended September 30, 2013, (5.8)% 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, and (6.7)% for the three months ended September 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 Service members’ 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 40

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2013

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of November 6, 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 November 6, 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 41

PRUDENTIAL FINANCIAL INC - FORM 8-K - EX-99.2 - November 6, 2013

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