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

Attached files

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8-K - FORM 8-K - PRUDENTIAL FINANCIAL INC	d93084d8k.htm
EX-99.1 - EX-99.1 - PRUDENTIAL FINANCIAL INC	d93084dex991.htm

Exhibit 99.2

Prudential Financial, Inc. (PRU)

LOGO

Quarterly Financial Supplement

Third Quarter 2015

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. (PFI), including its Closed Block Business for periods prior to first quarter 2015. All financial information in this document is unaudited.

November 4, 2015

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

CONTENTS


	Page
HIGHLIGHTS
Financial Highlights		1-3
Operations Highlights		4

Combined Statements of Operations		5
Combining Statements of Operations (Quarter)		6
Combining Statements of Operations		7
Consolidated Balance Sheets - PFI		8
Combined Balance Sheets - PFI Excluding Closed Block Business / Division		9
Combining Balance Sheets by Division		10
Short-Term and Long-Term Debt - Unaffiliated		11

U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION
Combined Statements of Operations		12
Combining Statements of Operations		13
Individual Annuities Sales Results and Account Values		14
Individual Annuities Account Value Activity		15
Individual Annuities Living Benefit Features		16
Individual Annuities Death Benefit Features		17
Retirement Segment Sales Results and Account Values		18
Supplementary Revenue and Assets Under Management Information for Asset Management Segment		19
Supplementary Assets Under Management Information for Asset Management Segment		20

U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION
Combined Statements of Operations		21
Combining Statements of Operations		22
Individual Life Annualized New Business Premiums, Account Value Activity, and Face Amount in Force		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
Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		31
Investment Results		32
Investment Results - Japanese Insurance Operations		33
Investment Results - Excluding Japanese Insurance Operations		34

KEY DEFINITIONS AND FORMULAS		35-37

RATINGS AND INVESTOR INFORMATION		38

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

From December 18, 2001, the date of demutualization, through December 31, 2014, the Company organized its principal operations into the Financial Services Businesses and the Closed Block Business, and had two classes of common stock. The Common Stock, which is publicly traded, reflected the performance of the Financial Services Businesses, while the Class B Stock, which was issued through a private placement, reflected the performance of the Closed Block Business. On January 2, 2015, Prudential Financial, Inc. repurchased and cancelled all of the 2.0 million shares of the Class B Stock. As a result, the Company no longer organizes its principal operations into the Financial Services Businesses and the Closed Block Business. The Company’s principal operations are comprised of four divisions, including a Closed Block division, which is accounted for as a divested business that is reported separately from the divested businesses that are included in Corporate and Other operations. The results of the Closed Block division are excluded from adjusted operating income under the Company’s definition of “divested businesses” which includes businesses that have been sold or exited, including businesses that have been placed in wind down and do not qualify for “discontinued operations” accounting treatment under U.S. GAAP.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date						% Change			2014						2015
2015			2014			% Change			3Q			4Q			1Q			2Q			3Q

								Pre-tax adjusted operating income (loss) by division:
	2,731			2,644			3%	U.S. Retirement Solutions and Investment Management Division		823			823			1,018			981			732
	685			359			91%	U.S. Individual Life and Group Insurance Division		24			162			146			312			227
	2,488			2,566			-3%	International Insurance Division		845			686			834			842			812
	(855	)		(1,022	)		16%	Corporate and other operations		(339	)		(326	)		(253	)		(294	)		(308	)

	5,049			4,547			11%	Total pre-tax adjusted operating income		1,353			1,345			1,745			1,841			1,463
	1,291			1,200			8%	Income taxes, applicable to adjusted operating income		319			337			447			491			353

	3,758			3,347			12%	After-tax adjusted operating income (1)		1,034			1,008			1,298			1,350			1,110


								Reconciling items:
	1,775			(1,413	)		226%	Realized investment gains (losses), net, and related charges and adjustments		(1,132	)		(2,717	)		1,051			286			438
	(365	)		195			-287%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		(131	)		144			83			(220	)		(228	)
	295			(139	)		312%	Change in experience-rated contractholder liabilities due to asset value changes		93			(155	)		(197	)		234			258
								Divested businesses:
	138			—			—	Closed Block division		—			—			(22	)		52			108
	(26	)		113			-123%	Other divested businesses		(7	)		54			75			(109	)		8
	60			37			62%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		8			7			13			45			2

	1,877			(1,207	)		256%	Total reconciling items, before income taxes		(1,169	)		(2,667	)		1,003			288			586
	671			(625	)		207%	Income taxes, not applicable to adjusted operating income		(606	)		(457	)		252			188			231

	1,206			(582	)		307%	Total reconciling items, after income taxes		(563	)		(2,210	)		751			100			355

	4,964			2,765			80%	Income (loss) from continuing operations (after-tax) before equity in earnings of operating joint ventures (1)		471			(1,202	)		2,049			1,450			1,465
	(57	)		(34	)		-68%	Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests		(6	)		(7	)		(13	)		(44	)		—

	4,907			2,731			80%	Income (loss) from continuing operations attributable to Prudential Financial, Inc. (1)		465			(1,209	)		2,036			1,406			1,465
	65			45			44%	Earnings attributable to noncontrolling interests		11			12			10			53			2

	4,972			2,776			79%	Income (loss) from continuing operations (after-tax) (1)		476			(1,197	)		2,046			1,459			1,467
	—			8			-100%	Income from discontinued operations, net of taxes		—			3			—			—			—

	4,972			2,784			79%	Net income (loss) (1)		476			(1,194	)		2,046			1,459			1,467
	65			45			44%	Less: Income attributable to noncontrolling interests		11			12			10			53			2

	4,907			2,739			79%	Net income (loss) attributable to Prudential Financial, Inc. (1)		465			(1,206	)		2,036			1,406			1,465

	15.7%			15.3%				Operating Return on Average Equity (based on adjusted operating income) (1)(2)		13.8%			13.2%			16.9%			16.8%			13.5%

								Reconciliation to Consolidated Net Income (Loss) Attributable to Prudential Financial, Inc.:
				2,739				Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above)		465			(1,206	)
				101				Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc.		47			(253	)

				2,840				Consolidated net income (loss) attributable to Prudential Financial, Inc.		512			(1,459	)

(1)	Represents results of Financial Services Businesses for periods prior to first quarter 2015.

(2)	See operating return on average equity definition for further information.

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date							2014						2015
2015			2014				3Q			4Q			1Q			2Q			3Q

						Earnings per share of Common Stock (diluted): (1)
	8.09			7.09		After-tax adjusted operating income (2)		2.20			2.12			2.79			2.91			2.40

						Reconciling items:
	3.85			(3.02	)	Realized investment gains (losses), net, and related charges and adjustments		(2.42	)		(5.84	)		2.27			0.62			0.95
	(0.79	)		0.42		Investment gains (losses) on trading account assets supporting insurance liabilities, net		(0.28	)		0.31			0.18			(0.48	)		(0.50	)
	0.64			(0.30	)	Change in experience-rated contractholder liabilities due to asset value changes		0.20			(0.33	)		(0.43	)		0.51			0.56
						Divested businesses:
	0.30			—		Closed Block division		—			—			(0.05	)		0.11			0.23
	(0.06	)		0.24		Other divested businesses		(0.01	)		0.12			0.16			(0.24	)		0.02
	(0.02	)		0.01		Difference in earnings allocated to participating unvested share-based payment awards		0.01			0.01			(0.02	)		—			(0.01	)

	3.92			(2.65	)	Total reconciling items, before income taxes		(2.50	)		(5.73	)		2.11			0.52			1.25
	1.45			(1.35	)	Income taxes, not applicable to adjusted operating income		(1.29	)		(0.91	)		0.53			0.40			0.49

	2.47			(1.30	)	Total reconciling items, after income taxes		(1.21	)		(4.82	)		1.58			0.12			0.76

	10.56			5.79		Income (loss) from continuing operations (after-tax) attributable to Prudential Financial, Inc. (2)		0.99			(2.70	)		4.37			3.03			3.16
	—			0.01		Income from discontinued operations, net of taxes		—			0.01			—			—			—

	10.56			5.80		Net income (loss) attributable to Prudential Financial, Inc. (2)		0.99			(2.69	)		4.37			3.03			3.16


	452.6			459.4		Weighted average number of outstanding Common shares (basic)		458.0			455.9			454.3			452.6			451.0
	461.4			468.6		Weighted average number of outstanding Common shares (diluted)		467.2			465.0			463.0			461.4			459.7

	—			(8	)	Direct equity adjustments for earnings per share calculation		(3	)		(19	)		—			—			—
	13			13		Earnings related to interest, net of tax, on exchangeable surplus notes		4			4			4			5			4

						*Earnings allocated to participating unvested share-based payment awards for earnings per share calculation*
	37			31		After-tax adjusted operating income (2)		9			8			12			13			12
	48			25		Income from continuing operations (after-tax) (2)		4			2			19			14			15

(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 December 31, 2014, 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)	Represents results of Financial Services Businesses for periods prior to first quarter 2015.

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date					2014						2015
2015		2014			3Q			4Q			1Q			2Q			3Q

				*Capitalization Data (1):*
				Senior Debt:
				Short-term debt		4,354			1,746			3,013			3,621			1,833
				Long-term debt		16,113			14,947			14,819			14,380			14,445
				Junior Subordinated Long-Term Debt		4,884			4,884			4,884			5,884			5,884

				Attributed Equity:
				Including accumulated other comprehensive income		40,203			40,981			45,044			41,723			42,720
				Excluding accumulated other comprehensive income (2)		26,875			25,099			27,292			28,319			29,257
				Amount included above for foreign currency exchange rate remeasurement (3)		(3,193	)		(4,783	)		(4,353	)		(4,211	)		(4,034	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (3)		30,068			29,882			31,645			32,530			33,291


				Book value per share of Common Stock:
				Including accumulated other comprehensive income (4)		86.76			88.80			98.16			91.17			93.87
				Excluding accumulated other comprehensive income (2)		58.00			54.39			59.52			61.89			64.32
				Amount included above for foreign currency exchange rate remeasurement (3)		(6.89	)		(10.36	)		(9.49	)		(9.20	)		(8.87	)

				Excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement (3)		64.89			64.75			69.01			71.09			73.19


				Number of diluted shares at end of period (5)		463.4			461.5			458.5			457.6			454.9

				*Common Stock Price Range (based on closing price):*
	91.68		93.16	High		93.16			91.67			90.11			91.47			91.68
	74.22		77.61	Low		85.75			77.86			75.32			79.13			74.22
	76.21		87.94	Close		87.94			90.46			80.31			87.52			76.21


				*Common Stock market capitalization (1)*		40,197			41,141			36,421			39,550			34,249

(1)	As of end of period. Represents financial position of Financial Services Businesses for periods prior to first quarter 2015.

(2)	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.

(3)	Represents cumulative impact of net gains and losses resulting from foreign currency exchange rate remeasurement and associated realized investment gains and losses included in net income (loss) and currency translation adjustments corresponding to realized investment gains and losses.

(4)

Book value per share of Common Stock including accumulated other comprehensive income for the first, second and third quarter of 2015 includes a $500 million increase in equity and a 5.5 million increase in diluted shares reflecting the dilutive impact of exchangeable surplus notes. These notes are currently dilutive when book value per share is greater than $90.85.

(5)	The number of diluted shares at end of period excludes the impact of exchangeable surplus notes due to the antidilutive impact of conversion.

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

OPERATIONS HIGHLIGHTS


Year-to-date					2014				2015
2015		2014			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		363.7		370.0		380.9		380.6		380.9
				Retail customers		180.0		186.1		198.4		199.2		188.9
				General account		373.8		377.4		382.4		368.5		376.7

				Total Investment Management and Advisory Services		917.5		933.5		961.7		948.3		946.5
				Non-proprietary assets under management		197.4		197.5		195.8		191.5		178.2

				Total managed by U.S. Retirement Solutions and Investment Management Division		1,114.9		1,131.0		1,157.5		1,139.8		1,124.7
				Managed by U.S. Individual Life and Group Insurance Division		22.3		23.0		23.7		24.1		24.2
				Managed by International Insurance Division		23.0		21.9		22.5		22.9		22.2

				Total assets under management		1,160.2		1,175.9		1,203.7		1,186.8		1,171.1
				Client assets under administration		152.6		154.5		159.3		165.7		163.1

				Total assets under management and administration		1,312.8		1,330.4		1,363.0		1,352.5		1,334.2


				Assets managed or administered for customers outside of the United States at end of period		261.0		248.3		262.4		263.1		263.4

				*Distribution Representatives (1):*
				Prudential Agents		2,822		2,784		2,822		2,866		2,922
				International Life Planners		7,213		7,352		7,469		7,415		7,509
				Gibraltar Life Consultants		8,601		8,707		8,645		8,565		8,593

	52		50	*Prudential Agent productivity ($ thousands)*		53		69		47		53		57

(1)	As of end of period.

(2)	At fair market value.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

COMBINED STATEMENTS OF OPERATIONS

(in millions)


									PFI Excluding Closed Block Business (1)						Consolidated PFI
Year-to-date						%			2014						2015
2015			2014			Change			3Q			4Q			1Q			2Q			3Q

								Revenues (2):
	17,968			16,314			10%	Premiums		5,923			9,890			5,913			6,782			5,273
	4,489			4,544			-1%	Policy charges and fee income		1,512			1,580			1,554			1,383			1,552
	8,994			9,025			0%	Net investment income		3,040			3,021			3,005			2,974			3,015
	3,934			3,932			0%	Asset management fees, commissions and other income		1,291			1,338			1,335			1,361			1,238

	35,385			33,815			5%	Total revenues		11,766			15,829			11,807			12,500			11,078


								Benefits and Expenses (2):
	18,781			17,259			9%	Insurance and annuity benefits		6,423			10,280			6,216			6,925			5,640
	2,706			2,801			-3%	Interest credited to policyholders’ account balances		942			919			884			907			915
	980			980			0%	Interest expense		340			328			317			324			339
	(1,961	)		(2,022	)		3%	Deferral of acquisition costs		(675	)		(672	)		(647	)		(664	)		(650	)
	1,188			1,327			-10%	Amortization of acquisition costs		376			526			428			251			509
	8,642			8,923			-3%	General and administrative expenses		3,007			3,103			2,864			2,916			2,862

	30,336			29,268			4%	Total benefits and expenses		10,413			14,484			10,062			10,659			9,615

	5,049			4,547			11%	Adjusted operating income before income taxes		1,353			1,345			1,745			1,841			1,463


								Reconciling items:
	2,719			(1,314	)		307%	Realized investment gains (losses), net, and related adjustments		(1,161	)		(2,274	)		1,662			(60	)		1,117
	(944	)		(99	)		-854%	Related charges		29			(443	)		(611	)		346			(679	)

	1,775			(1,413	)		226%	Total realized investment gains (losses), net, and related charges and adjustments		(1,132	)		(2,717	)		1,051			286			438

	(365	)		195			-287%	Investment gains (losses) on trading account assets supporting insurance liabilities, net		(131	)		144			83			(220	)		(228	)
	295			(139	)		312%	Change in experience-rated contractholder liabilities due to asset value changes		93			(155	)		(197	)		234			258
								Divested businesses:
	138			—			—	Closed Block division		—			—			(22	)		52			108
	(26	)		113			-123%	Other divested businesses		(7	)		54			75			(109	)		8
	60			37			62%	Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests		8			7			13			45			2

	1,877			(1,207	)		256%	Total reconciling items, before income taxes		(1,169	)		(2,667	)		1,003			288			586


	6,926			3,340			107%	Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures		184			(1,322	)		2,748			2,129			2,049
	1,962			575			241%	Income tax expense (benefit)		(287	)		(120	)		699			679			584

	4,964			2,765			80%	Income (loss) from continuing operations before equity in earnings of operating joint ventures		471			(1,202	)		2,049			1,450			1,465

(1)	Represents results of Financial Services Businesses for periods prior to first quarter 2015.

(2)

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 2015

LOGO

COMBINING STATEMENTS OF OPERATIONS

(in millions)


	Quarter Ended September 30, 2015
	PFI Excluding Closed Block Division			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		5,273			688			1,203			3,385			(3	)
Policy charges and fee income		1,552			718			717			129			(12	)
Net investment income		3,015			1,205			593			1,081			136
Asset management fees, commissions and other income		1,238			1,197			156			155			(270	)

Total revenues		11,078			3,808			2,669			4,750			(149	)


Benefits and Expenses (1):
Insurance and annuity benefits		5,640			1,216			1,507			2,904			13
Interest credited to policyholders’ account balances		915			468			228			219			—
Interest expense		339			25			142			2			170
Deferral of acquisition costs		(650	)		(117	)		(166	)		(382	)		15
Amortization of acquisition costs		509			179			98			249			(17	)
General and administrative expenses		2,862			1,305			633			946			(22	)

Total benefits and expenses		9,615			3,076			2,442			3,938			159


Adjusted operating income (loss) before income taxes		1,463			732			227			812			(308	)


	Quarter Ended September 30, 2014
	PFI Excluding Closed Block Business			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		5,923			1,130			1,243			3,568			(18	)
Policy charges and fee income		1,512			729			637			156			(10	)
Net investment income		3,040			1,229			570			1,138			103
Asset management fees, commissions and other income		1,291			1,221			180			140			(250	)

Total revenues		11,766			4,309			2,630			5,002			(175	)


Benefits and Expenses (1):
Insurance and annuity benefits		6,423			1,637			1,692			3,051			43
Interest credited to policyholders’ account balances		942			472			214			256			—
Interest expense		340			36			149			1			154
Deferral of acquisition costs		(675	)		(147	)		(125	)		(415	)		12
Amortization of acquisition costs		376			153			29			209			(15	)
General and administrative expenses		3,007			1,335			647			1,055			(30	)

Total benefits and expenses		10,413			3,486			2,606			4,157			164


Adjusted operating income (loss) before income taxes		1,353			823			24			845			(339	)

(1)

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

COMBINING STATEMENTS OF OPERATIONS

(in millions)


	Nine Months Ended September 30, 2015
	PFI Excluding Closed Block Division			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		17,968			3,840			3,591			10,537			—
Policy charges and fee income		4,489			2,178			1,938			408			(35	)
Net investment income		8,994			3,608			1,693			3,279			414
Asset management fees, commissions and other income		3,934			3,736			526			469			(797	)

Total revenues		35,385			13,362			7,748			14,693			(418	)


Benefits and Expenses (1):
Insurance and annuity benefits		18,781			5,162			4,576			9,039			4
Interest credited to policyholders’ account balances		2,706			1,364			675			667			—
Interest expense		980			83			418			4			475
Deferral of acquisition costs		(1,961	)		(365	)		(462	)		(1,178	)		44
Amortization of acquisition costs		1,188			410			59			756			(37	)
General and administrative expenses		8,642			3,977			1,797			2,917			(49	)

Total benefits and expenses		30,336			10,631			7,063			12,205			437


Adjusted operating income (loss) before income taxes		5,049			2,731			685			2,488			(855	)


	Nine Months Ended September 30, 2014
	PFI Excluding Closed Block Business			U.S. Retirement Solutions & Investment Management Division			U.S. Individual Life & Group Insurance Division			International Insurance Division			Corporate and Other Operations
Revenues (1):
Premiums		16,314			1,528			3,724			11,086			(24	)
Policy charges and fee income		4,544			2,139			2,006			432			(33	)
Net investment income		9,025			3,698			1,668			3,350			309
Asset management fees, commissions and other income		3,932			3,652			550			461			(731	)

Total revenues		33,815			11,017			7,948			15,329			(479	)


Benefits and Expenses (1):
Insurance and annuity benefits		17,259			2,948			4,863			9,381			67
Interest credited to policyholders’ account balances		2,801			1,429			635			737			—
Interest expense		980			107			402			3			468
Deferral of acquisition costs		(2,022	)		(422	)		(398	)		(1,247	)		45
Amortization of acquisition costs		1,327			424			228			715			(40	)
General and administrative expenses		8,923			3,887			1,859			3,174			3

Total benefits and expenses		29,268			8,373			7,589			12,763			543


Adjusted operating income (loss) before income taxes		4,547			2,644			359			2,566			(1,022	)

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

CONSOLIDATED BALANCE SHEETS - PFI

(in millions)


	Consolidated PFI
	09/30/2014		12/31/2014		03/31/2015		06/30/2015		09/30/2015

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $273,760; $265,116; $263,134; $262,820; $263,281)		301,067		299,090		299,422		290,063		290,778
Fixed maturities, held to maturity, at amortized cost (fair value $3,183; $2,902; $2,817; $2,674; $2,669)		2,880		2,575		2,513		2,396		2,380
Trading account assets supporting insurance liabilities, at fair value		20,507		20,263		20,626		20,267		20,408
Other trading account assets, at fair value		9,321		10,874		11,989		12,749		14,075
Equity securities, available for sale, at fair value (cost $7,099; $6,921; $7,045; $6,870; $6,755)		9,878		9,861		10,206		9,901		9,109
Commercial mortgage and other loans		44,836		46,432		47,478		48,569		50,048
Policy loans		11,857		11,712		11,693		11,652		11,624
Other long-term investments		10,860		10,921		11,001		10,678		10,591
Short-term investments		5,535		8,258		5,947		5,669		7,937

Total investments		416,741		419,986		420,875		411,944		416,950
Cash and cash equivalents		17,222		14,918		19,119		17,038		20,207
Accrued investment income		3,209		3,130		3,135		3,117		3,156
Deferred policy acquisition costs		16,585		15,971		15,639		16,569		16,206
Value of business acquired		3,394		2,836		2,514		2,994		2,847
Other assets		14,380		13,379		14,624		14,728		14,545
Separate account assets		292,616		296,435		302,706		296,341		280,616

Total assets		764,147		766,655		778,612		762,731		754,527


Liabilities:
Future policy benefits		215,847		217,766		220,840		216,555		222,220
Policyholders’ account balances		139,133		136,150		135,143		135,630		136,620
Securities sold under agreements to repurchase		9,039		9,407		7,766		7,863		8,107
Cash collateral for loaned securities		4,569		4,241		4,437		3,808		4,241
Income taxes		8,634		9,881		11,390		9,239		9,644
Senior short-term debt		4,429		3,839		3,013		3,621		1,833
Senior long-term debt		17,713		14,947		14,819		14,380		14,445
Junior subordinated long-term debt		4,884		4,884		4,884		5,884		5,884
Notes issued by consolidated variable interest entities		5,397		6,058		6,830		7,455		8,370
Other liabilities		19,534		20,698		21,210		19,663		19,777
Separate account liabilities		292,616		296,435		302,706		296,341		280,616

Total liabilities		721,795		724,306		733,038		720,439		711,757


Attributed Equity:
Accumulated other comprehensive income		13,501		16,050		17,752		13,404		13,463
Other attributed equity		28,268		25,720		27,292		28,319		29,257

Total attributed equity		41,769		41,770		45,044		41,723		42,720

Noncontrolling Interest		583		579		530		569		50

Total Equity		42,352		42,349		45,574		42,292		42,770

Total liabilities and equity		764,147		766,655		778,612		762,731		754,527

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

COMBINED BALANCE SHEETS - PFI EXCLUDING CLOSED BLOCK BUSINESS / DIVISION

(in millions)


	PFI Excluding Closed Block Business (1)				PFI Excluding Closed Block Division
	09/30/2014		12/31/2014		03/31/2015		06/30/2015		09/30/2015

Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $232,413; $225,342; $225,741; $225,742; $226,686)		256,119		255,425		258,359		250,739		251,953
Fixed maturities, held to maturity, at amortized cost (fair value $3,183; $2,902; $2,817; $2,674; $2,669)		2,880		2,575		2,513		2,396		2,380
Trading account assets supporting insurance liabilities, at fair value		20,507		20,263		20,626		20,267		20,408
Other trading account assets, at fair value		9,003		10,524		11,671		12,439		13,776
Equity securities, available for sale, at fair value (cost $4,815; $4,732; $4,782; $4,811; $4,848)		6,377		6,339		6,593		6,671		6,385
Commercial mortgage and other loans		34,549		36,957		37,890		38,731		40,206
Policy loans		6,928		6,798		6,813		6,804		6,814
Other long-term investments		8,315		8,155		8,105		7,841		7,621
Short-term investments		4,789		6,221		4,978		4,571		6,143

Total investments		349,467		353,257		357,548		350,459		355,686
Cash and cash equivalents		15,447		13,718		17,709		16,029		19,554
Accrued investment income		2,605		2,579		2,581		2,598		2,618
Deferred policy acquisition costs		16,219		15,561		15,239		16,178		15,824
Value of business acquired		3,394		2,836		2,514		2,994		2,847
Other assets		13,788		11,378		14,026		14,239		14,181
Separate account assets		292,616		296,435		302,706		296,341		280,616

Total assets		693,536		695,764		712,323		698,838		691,326


Liabilities:
Future policy benefits		165,985		167,903		171,057		166,890		172,662
Policyholders’ account balances		133,814		130,840		129,854		130,358		131,359
Securities sold under agreements to repurchase		4,979		5,492		4,308		4,592		5,259
Cash collateral for loaned securities		3,270		3,064		3,024		2,679		2,851
Income taxes		9,078		10,536		12,132		9,985		10,406
Senior short-term debt		4,354		1,746		3,013		3,621		1,833
Senior long-term debt		16,113		14,947		14,819		14,380		14,445
Junior subordinated long-term debt		4,884		4,884		4,884		5,884		5,884
Notes issued by consolidated variable interest entities		5,397		6,058		6,830		7,455		8,370
Other liabilities		12,260		12,299		12,594		12,864		13,451
Separate account liabilities		292,616		296,435		302,706		296,341		280,616

Total liabilities		652,750		654,204		665,221		655,049		647,136


Attributed Equity:
Accumulated other comprehensive income		13,328		15,882		17,739		13,406		13,459
Other attributed equity		26,875		25,099		28,833		29,814		30,681

Total attributed equity		40,203		40,981		46,572		43,220		44,140

Noncontrolling Interest		583		579		530		569		50

Total Equity		40,786		41,560		47,102		43,789		44,190

Total liabilities and equity		693,536		695,764		712,323		698,838		691,326

(1)	Represents financial position of Financial Services Businesses for periods prior to first quarter 2015.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

COMBINING BALANCE SHEETS BY DIVISION

(in millions)


	As of September 30, 2015

	Consolidated PFI		Closed Block Division			PFI Excluding Closed Block Division		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		416,950		61,264			355,686		133,387		51,343		156,412		14,544
Deferred policy acquisition costs		16,206		382			15,824		4,865		4,865		6,400		(306	)
Other assets		40,755		1,555			39,200		17,707		11,424		8,476		1,593
Separate account assets		280,616		—			280,616		237,424		44,121		2,446		(3,375	)

Total assets		754,527		63,201			691,326		393,383		111,753		173,734		12,456


Liabilities:
Future policy benefits		222,220		49,558			172,662		62,644		14,676		91,159		4,183
Policyholders’ account balances		136,620		5,261			131,359		56,760		31,285		43,320		(6	)
Debt		22,162		—			22,162		3,098		8,275		99		10,690
Other liabilities		50,139		9,802			40,337		16,574		6,929		15,061		1,773
Separate account liabilities		280,616		—			280,616		237,424		44,121		2,446		(3,375	)

Total liabilities		711,757		64,621			647,136		376,500		105,286		152,085		13,265


Attributed Equity:
Accumulated other comprehensive income (loss)		13,463		4			13,459		1,131		869		12,839		(1,380	)
Other attributed equity		29,257		(1,424	)		30,681		15,721		5,598		8,764		598

Total attributed equity		42,720		(1,420	)		44,140		16,852		6,467		21,603		(782	)

Noncontrolling Interest		50		—			50		31		—		46		(27	)

Total Equity		42,770		(1,420	)		44,190		16,883		6,467		21,649		(809	)


Total liabilities and equity		754,527		63,201			691,326		393,383		111,753		173,734		12,456



	As of December 31, 2014

	Consolidated PFI		Closed Block Business			PFI Excluding Closed Block Business		U.S. Retirement Solutions & Investment Management Division		U.S. Individual Life & Group Insurance Division		International Insurance Division		Corporate and Other Operations
Assets:
Total investments		419,986		66,729			353,257		132,397		50,134		156,414		14,312
Deferred policy acquisition costs		15,971		410			15,561		5,493		4,233		6,156		(321	)
Other assets		34,263		3,752			30,511		15,909		10,971		6,735		(3,104	)
Separate account assets		296,435		—			296,435		251,040		45,939		2,330		(2,874	)

Total assets		766,655		70,891			695,764		404,839		111,277		171,635		8,013


Liabilities:
Future policy benefits		217,766		49,863			167,903		61,305		14,350		88,287		3,961
Policyholders’ account balances		136,150		5,310			130,840		56,158		29,798		44,866		18
Debt		23,670		2,093			21,577		5,758		8,386		38		7,395
Other liabilities		50,285		12,836			37,449		13,631		6,444		14,741		2,633
Separate account liabilities		296,435		—			296,435		251,040		45,939		2,330		(2,874	)

Total liabilities		724,306		70,102			654,204		387,892		104,917		150,262		11,133


Attributed Equity:
Accumulated other comprehensive income (loss)		16,050		168			15,882		2,421		1,355		13,377		(1,271	)
Other attributed equity		25,720		621			25,099		13,965		5,005		7,942		(1,813	)

Total attributed equity		41,770		789			40,981		16,386		6,360		21,319		(3,084	)

Noncontrolling Interest		579		—			579		561		—		54		(36	)

Total Equity		42,349		789			41,560		16,947		6,360		21,373		(3,120	)


Total liabilities and equity		766,655		70,891			695,764		404,839		111,277		171,635		8,013

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED

(in millions)


	PFI Excluding Closed Block Division								PFI Excluding Closed Block Business
	As of September 30, 2015								As of December 31, 2014
	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
*Borrowings by use of proceeds:*
Capital Debt		194		5,990		5,884		12,068		454		7,997		4,884		13,335
Operating Debt - Investment related		779		7,205		—		7,984		1,754		4,958		—		6,712
Operating Debt - Specified businesses		860		676		—		1,536		1,631		1,489		—		3,120
Limited recourse and non-recourse borrowing		—		574		—		574		—		503		—		503

Total debt		1,833		14,445		5,884		22,162		3,839		14,947		4,884		23,670


	PFI Excluding Closed Block Division								PFI Excluding Closed Block Business
	As of September 30, 2015								As of December 31, 2014
	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
*Borrowings by sources:*
Capital Debt		11,075		941		52		12,068		12,241		1,041		53		13,335
Operating Debt - Investment related		5,365		417		2,202		7,984		4,013		494		2,205		6,712
Operating Debt - Specified businesses		981		555		—		1,536		2,125		995		—		3,120
Limited recourse and non-recourse borrowing		—		574		—		574		—		503		—		503

Total debt		17,421		2,487		2,254		22,162		18,379		3,033		2,258		23,670

(1)	Includes Prudential Funding, LLC.

(2)	Capital debt at Prudential Insurance Co. of America includes $841 million and $941 million of surplus notes as of September 30, 2015 and December 31, 2014, respectively.

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

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

(in millions)


Year-to-date						%			2014						2015
2015			2014			Change			3Q			4Q			1Q			2Q			3Q

								Revenues (1):
	3,840			1,528			151%	Premiums		1,130			5,373			1,213			1,939			688
	2,178			2,139			2%	Policy charges and fee income		729			727			720			740			718
	3,608			3,698			-2%	Net investment income		1,229			1,261			1,217			1,186			1,205
	3,736			3,652			2%	Asset management fees, commissions and other income		1,221			1,249			1,248			1,291			1,197

	13,362			11,017			21%	Total revenues		4,309			8,610			4,398			5,156			3,808


								Benefits and Expenses (1):
	5,162			2,948			75%	Insurance and annuity benefits		1,637			5,869			1,616			2,330			1,216
	1,364			1,429			-5%	Interest credited to policyholders’ account balances		472			476			450			446			468
	83			107			-22%	Interest expense		36			35			34			24			25
	(365	)		(422	)		14%	Deferral of acquisition costs		(147	)		(142	)		(120	)		(128	)		(117	)
	410			424			-3%	Amortization of acquisition costs		153			170			99			132			179
	3,977			3,887			2%	General and administrative expenses		1,335			1,379			1,301			1,371			1,305

	10,631			8,373			27%	Total benefits and expenses		3,486			7,787			3,380			4,175			3,076

	2,731			2,644			3%	Adjusted operating income before income taxes		823			823			1,018			981			732

(1)

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

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

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

(in millions)


	Nine Months Ended September 30, 2015												Quarter Ended September 30, 2015
	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		3,840			88			3,752			—			688			28			660			—
Policy charges and fee income		2,178			2,015			163			—			718			664			54			—
Net investment income		3,608			450			3,077			81			1,205			156			1,029			20
Asset management fees, commissions and other income		3,736			1,001			603			2,132			1,197			319			194			684

Total revenues		13,362			3,554			7,595			2,213			3,808			1,167			1,937			704


Benefits and Expenses (1):
Insurance and annuity benefits		5,162			235			4,927			—			1,216			154			1,062			—
Interest credited to policyholders’ account balances		1,364			268			1,096			—			468			106			362			—
Interest expense		83			55			21			7			25			15			7			3
Deferral of acquisition costs		(365	)		(325	)		(32	)		(8	)		(117	)		(104	)		(11	)		(2	)
Amortization of acquisition costs		410			344			52			14			179			163			12			4
General and administrative expenses		3,977			1,590			768			1,619			1,305			523			263			519

Total benefits and expenses		10,631			2,167			6,832			1,632			3,076			857			1,695			524

Adjusted operating income before income taxes		2,731			1,387			763			581			732			310			242			180


	Nine Months Ended September 30, 2014												Quarter Ended September 30, 2014
	Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management			Total U.S. Retirement Solutions & Investment Management Division			Individual Annuities			Retirement			Asset Management
Revenues (1):
Premiums		1,528			77			1,451			—			1,130			20			1,110			—
Policy charges and fee income		2,139			1,978			161			—			729			676			53			—
Net investment income		3,698			472			3,138			88			1,229			154			1,032			43
Asset management fees, commissions and other income		3,652			992			647			2,013			1,221			341			202			678

Total revenues		11,017			3,519			5,397			2,101			4,309			1,191			2,397			721


Benefits and Expenses (1):
Insurance and annuity benefits		2,948			337			2,611			—			1,637			123			1,514			—
Interest credited to policyholders’ account balances		1,429			319			1,110			—			472			107			365			—
Interest expense		107			80			19			8			36			27			7			2
Deferral of acquisition costs		(422	)		(375	)		(34	)		(13	)		(147	)		(127	)		(17	)		(3	)
Amortization of acquisition costs		424			392			17			15			153			141			7			5
General and administrative expenses		3,887			1,621			768			1,498			1,335			553			265			517

Total benefits and expenses		8,373			2,374			4,491			1,508			3,486			824			2,141			521

Adjusted operating income before income taxes		2,644			1,145			906			593			823			367			256			200

(1)

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

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

(in millions)


Year-to-date							2014						2015
2015			2014				3Q			4Q			1Q			2Q			3Q

						SALES AND ACCOUNT VALUES:

						Variable Annuities:
	155,083			150,467		Beginning total account value		155,890			153,172			155,083			157,552			155,424
	3,002			5,299		Sales: Highest Daily Suite - risk retained by Prudential (1)		1,828			1,688			1,421			846			735
	1,059			—		Highest Daily Suite - externally reinsured living benefits		—			—			—			559			500
	2,595			2,217		Other variable annuities (2)		733			753			794			921			880

	6,656			7,516		Total sales		2,561			2,441			2,215			2,326			2,115
	(6,302	)		(6,497	)	Surrenders and withdrawals		(2,152	)		(2,217	)		(2,167	)		(2,170	)		(1,965	)

	354			1,019		Net sales		409			224			48			156			150
	(1,190	)		(1,091	)	Benefit payments		(345	)		(368	)		(400	)		(390	)		(400	)

	(836	)		(72	)	Net flows		64			(144	)		(352	)		(234	)		(250	)
	(4,864	)		5,384		Change in market value, interest credited, and other		(1,891	)		2,945			3,713			(983	)		(7,594	)
	(2,698	)		(2,607	)	Policy charges		(891	)		(890	)		(892	)		(911	)		(895	)

	146,685			153,172		Ending total account value		153,172			155,083			157,552			155,424			146,685


						Variable Annuities Account Value by Product:
	110,390			115,853		Highest Daily Suite - risk retained by Prudential (1)		115,853			117,627			119,801			117,723			110,390
	1,011			—		Highest Daily Suite - externally reinsured living benefits		—			—			—			553			1,011
	35,284			37,319		Other variable annuities (2)		37,319			37,456			37,751			37,148			35,284

	146,685			153,172		Ending total account value		153,172			155,083			157,552			155,424			146,685


						Fixed Annuities and other products (3):
	3,581			3,673		Beginning total account value		3,638			3,611			3,581			3,575			3,552
	35			43		Sales		13			8			12			15			8
	(92	)		(99	)	Surrenders and withdrawals		(30	)		(39	)		(29	)		(33	)		(30	)

	(57	)		(56	)	Net redemptions		(17	)		(31	)		(17	)		(18	)		(22	)
	(278	)		(255	)	Benefit payments		(109	)		(85	)		(88	)		(99	)		(91	)

	(335	)		(311	)	Net flows		(126	)		(116	)		(105	)		(117	)		(113	)
	287			251		Interest credited and other		100			86			99			94			94
	(1	)		(2	)	Policy charges		(1	)		—			—			—			(1	)

	3,532			3,611		Ending total account value		3,611			3,581			3,575			3,552			3,532


						SALES BY DISTRIBUTION CHANNEL:

						Variable and Fixed Annuities (4):
	1,922			1,876		Insurance Agents		624			633			638			673			611
	1,266			1,526		Wirehouses		561			482			394			443			429
	2,524			3,074		Independent Financial Planners		1,036			993			855			881			788
	979			1,083		Bank Distribution		353			341			340			344			295

	6,691			7,559		Total		2,574			2,449			2,227			2,341			2,123

(1)	Includes variable annuities with “Highest Daily” optional living benefits retained by Prudential and predecessor “Lifetime Five” feature.

(2)	Includes Prudential Defined Income (PDI), and products without guaranteed minimum income and withdrawal benefits.

(3)	Includes single premium immediate annuities.

(4)	Amounts represent gross sales.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

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

(in millions)


Year-to-date							2014						2015
2015			2014				3Q			4Q			1Q			2Q			3Q

						INDIVIDUAL ANNUITIES:

						Account Values in General Account (1):
	9,852			10,054		Beginning balance		9,811			9,816			9,852			9,728			9,724
	886			995		Premiums and deposits		374			336			308			302			276
	(558	)		(657	)	Surrenders and withdrawals		(215	)		(218	)		(198	)		(184	)		(176	)

	328			338		Net sales		159			118			110			118			100
	(337	)		(312	)	Benefit payments		(127	)		(103	)		(105	)		(123	)		(109	)

	(9	)		26		Net flows		32			15			5			(5	)		(9	)
	193			269		Interest credited and other		68			68			64			63			66
	(5	)		(531	)	Net transfers (to) from separate account		(94	)		(47	)		(193	)		(61	)		249
	(1	)		(2	)	Policy charges		(1	)		—			—			(1	)		—

	10,030			9,816		Ending balance		9,816			9,852			9,728			9,724			10,030


						Account Values in Separate Account (1):
	148,812			144,086		Beginning balance		149,717			146,967			148,812			151,399			149,252
	5,805			6,564		Premiums and deposits		2,200			2,113			1,919			2,039			1,847
	(5,836	)		(5,939	)	Surrenders and withdrawals		(1,967	)		(2,038	)		(1,998	)		(2,019	)		(1,819	)

	(31	)		625		Net sales (redemptions)		233			75			(79	)		20			28
	(1,131	)		(1,034	)	Benefit payments		(327	)		(350	)		(383	)		(366	)		(382	)

	(1,162	)		(409	)	Net flows		(94	)		(275	)		(462	)		(346	)		(354	)
	(4,770	)		5,366		Change in market value, interest credited and other		(1,859	)		2,963			3,748			(952	)		(7,566	)
	5			531		Net transfers (to) from general account		94			47			193			61			(249	)
	(2,698	)		(2,607	)	Policy charges		(891	)		(890	)		(892	)		(910	)		(896	)

	140,187			146,967		Ending balance		146,967			148,812			151,399			149,252			140,187

(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 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

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

(in millions)


	2014				2015
	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		5,947		5,756		5,594		5,276		4,933
Guaranteed minimum withdrawal benefits		767		736		707		666		588
Guaranteed minimum income benefits		3,382		3,324		3,271		3,151		2,861
Guaranteed minimum withdrawal & income benefits - risk retained by Prudential		118,124		120,404		123,093		121,358		114,539
Guaranteed minimum withdrawal & income benefits - externally reinsured		—		—		—		553		1,011

Total		128,220		130,220		132,665		131,004		123,932


Living Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature - risk retained by Prudential		111,033		112,724		114,797		112,770		105,926
Account Values with Auto-Rebalancing Feature - externally reinsured		—		—		—		553		1,011
Account Values without Auto-Rebalancing Feature		17,187		17,496		17,868		17,681		16,995

Total		128,220		130,220		132,665		131,004		123,932


Living Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature - risk retained by Prudential		2,017		2,034		1,880		2,350		4,259
Net Amount at Risk with Auto-Rebalancing Feature - externally reinsured		—		—		—		—		—
Net Amount at Risk without Auto-Rebalancing Feature		911		871		816		905		1,296

Total		2,928		2,905		2,696		3,255		5,555

(1)	At end of period.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

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

(in millions)


	2014				2015
	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		115,725		117,592		119,854		118,425		112,070
Net amount at risk		437		403		377		470		894
Minimum return, anniversary contract value, or maximum contract value:
Account value		34,299		34,298		34,432		33,665		31,366
Net amount at risk		2,987		2,855		2,709		3,058		4,711

Death Benefit Features Account Values by Product Design Type
Account Values with Auto-Rebalancing Feature		111,033		112,724		114,797		113,323		106,937
Account Values without Auto-Rebalancing Feature		38,991		39,166		39,489		38,767		36,499

Total		150,024		151,890		154,286		152,090		143,436


Death Benefit Features Net Amount at Risk by Product Design Type
Net Amount at Risk with Auto-Rebalancing Feature		823		765		699		980		2,305
Net Amount at Risk without Auto-Rebalancing Feature		2,601		2,493		2,387		2,548		3,300

Total		3,424		3,258		3,086		3,528		5,605

(1)	At end of period.

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

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

(in millions)


Year-to-date							2014						2015
2015			2014				3Q			4Q			1Q			2Q			3Q

						RETIREMENT SEGMENT SALES AND ACCOUNT VALUES

						Full Service:
	184,196			173,502		Beginning total account value		181,577			180,535			184,196			188,145			188,807
	20,776			18,305		Deposits and sales		5,190			5,629			6,314			5,040			9,422
	(15,984	)		(16,290	)	Withdrawals and benefits		(4,221	)		(6,311	)		(6,229	)		(4,683	)		(5,072	)
	(4,473	)		5,018		Change in market value, interest credited, interest income and other activity		(2,011	)		4,343			3,864			305			(8,642	)

	184,515			180,535		Ending total account value		180,535			184,196			188,145			188,807			184,515


	4,792			2,015		Net additions (withdrawals)		969			(682	)		85			357			4,350


						Stable value account values included above		44,464			44,671			44,733			45,007			45,731

						Institutional Investment Products:
	179,641			149,402		Beginning total account value		148,971			175,526			179,641			177,120			183,798
	12,147			34,770		Additions		30,962			8,523			969			9,147			2,031
	(11,243	)		(11,253	)	Withdrawals and benefits		(3,634	)		(4,783	)		(3,495	)		(3,808	)		(3,940	)
	2,818			4,134		Change in market value, interest credited and interest income		940			1,699			1,629			83			1,106
	(1,701	)		(1,527	)	Other (1)		(1,713	)		(1,324	)		(1,624	)		1,256			(1,333	)

	181,662			175,526		Ending total account value		175,526			179,641			177,120			183,798			181,662


	904			23,517		Net additions (withdrawals)		27,328			3,740			(2,526	)		5,339			(1,909	)


						Amounts included in ending total account value above:
	68,097			71,323		Investment-only stable value wraps		71,323			69,814			69,113			67,958			68,097
	34,628			29,509		Longevity reinsurance (2)		29,509			30,839			29,176			36,252			34,628
	78,937			74,694		Group annuities and other products		74,694			78,988			78,831			79,588			78,937

	181,662			175,526		Ending total account value		175,526			179,641			177,120			183,798			181,662

(1)	“Other” activity includes the effect of foreign exchange rate changes, as well as changes in asset balances for externally managed accounts.

(2)	Represents notional amounts based on present value of future benefits under longevity reinsurance contracts which have not been significantly pre-funded.

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

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


						Supplementary Revenue Information (in millions):
Year-to-date				%			2014				2015
2015		2014		Change			3Q		4Q		1Q		2Q		3Q

						Analysis of revenues by type:
	1,606		1,506		7%	Asset management fees		510		515		530		540		536
	173		195		-11%	Other related revenues		62		67		72		52		49
	434		400		9%	Service, distribution and other revenues		149		157		131		184		119

	2,213		2,101		5%	Total Asset Management segment revenues		721		739		733		776		704


						Analysis of asset management fees by source:
	692		655		6%	Institutional customers		216		222		228		230		234
	577		536		8%	Retail customers		186		184		189		197		191
	337		315		7%	General account		108		109		113		113		111

	1,606		1,506		7%	Total asset management fees		510		515		530		540		536


Supplementary Assets Under Management Information (in billions):
	September 30, 2015
	Equity		Fixed Income		Real Estate		Total
Institutional customers		57.4		285.1		38.4		380.9
Retail customers		115.0		71.8		2.1		188.9
General account		7.0		367.9		1.8		376.7

Total		179.4		724.8		42.3		946.5


	September 30, 2014
	Equity		Fixed Income		Real Estate		Total
Institutional customers		64.0		263.9		35.8		363.7
Retail customers		121.3		56.3		2.4		180.0
General account		7.8		364.4		1.6		373.8

Total		193.1		684.6		39.8		917.5

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

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

(in billions)


Year-to-date							2014						2015
2015			2014				3Q			4Q			1Q			2Q			3Q

						Institutional Customers - Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	323.6			300.5		Beginning assets under management		323.5			320.7			323.6			334.1			335.9
	50.6			31.4		Additions		10.0			10.9			16.8			18.3			15.5
	(35.4	)		(28.2	)	Withdrawals		(11.4	)		(13.4	)		(13.1	)		(11.5	)		(10.8	)
	(0.1	)		17.3		Change in market value		(1.0	)		5.8			6.6			(5.0	)		(1.7	)
	—			—		Net money market flows		—			—			0.2			—			(0.2	)
	(0.1	)		(0.3	)	Other (1)		(0.4	)		(0.4	)		—			—			(0.1	)

	338.6			320.7		Ending assets under management		320.7			323.6			334.1			335.9			338.6
	42.3			43.0		Affiliated institutional assets under management		43.0			46.4			46.8			44.7			42.3

	380.9			363.7		Total assets managed for institutional customers at end of period		363.7			370.0			380.9			380.6			380.9


	15.2			3.2		Net institutional additions (withdrawals), excluding money market activity		(1.4	)		(2.5	)		3.7			6.8			4.7


						Retail Customers - Assets Under Management:

						Assets gathered by Investment Management & Advisory Services sales force:
	126.8			115.0		Beginning assets under management		122.5			122.7			126.8			135.1			135.2
	31.6			24.9		Additions		8.5			11.9			13.1			10.3			8.2
	(29.6	)		(22.8	)	Withdrawals		(7.3	)		(9.3	)		(9.1	)		(10.7	)		(9.8	)
	(2.8	)		5.6		Change in market value		(1.0	)		1.6			4.3			0.5			(7.6	)
	—			—		Net money market flows		—			—			—			—			—
	(0.1	)		—		Other		—			(0.1	)		—			—			(0.1	)

	125.9			122.7		Ending assets under management		122.7			126.8			135.1			135.2			125.9
	63.0			57.3		Affiliated retail assets under management		57.3			59.3			63.3			64.0			63.0

	188.9			180.0		Total assets managed for retail customers at end of period		180.0			186.1			198.4			199.2			188.9


	2.0			2.1		Net retail additions (withdrawals), excluding money market activity		1.2			2.6			4.0			(0.4	)		(1.6	)

(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 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

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

(in millions)


Year-to-date						%			2014						2015
2015			2014			Change			3Q			4Q			1Q			2Q			3Q

								Revenues (1):
	3,591			3,724			-4%	Premiums		1,243			1,183			1,188			1,200			1,203
	1,938			2,006			-3%	Policy charges and fee income		637			704			705			516			717
	1,693			1,668			1%	Net investment income		570			565			549			551			593
	526			550			-4%	Asset management fees, commissions and other income		180			183			186			184			156

	7,748			7,948			-3%	Total revenues		2,630			2,635			2,628			2,451			2,669


								Benefits and Expenses (1):
	4,576			4,863			-6%	Insurance and annuity benefits		1,692			1,492			1,598			1,471			1,507
	675			635			6%	Interest credited to policyholders’ account balances		214			219			210			237			228
	418			402			4%	Interest expense		149			140			136			140			142
	(462	)		(398	)		-16%	Deferral of acquisition costs		(125	)		(151	)		(139	)		(157	)		(166	)
	59			228			-74%	Amortization of acquisition costs		29			125			88			(127	)		98
	1,797			1,859			-3%	General and administrative expenses		647			648			589			575			633

	7,063			7,589			-7%	Total benefits and expenses		2,606			2,473			2,482			2,139			2,442


	685			359			91%	Adjusted operating income before income taxes		24			162			146			312			227

(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 2015

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

(in millions)


	Nine Months Ended September 30, 2015									Quarter Ended September 30, 2015
	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		3,591			680			2,911			1,203			219			984
Policy charges and fee income		1,938			1,501			437			717			578			139
Net investment income		1,693			1,248			445			593			436			157
Asset management fees, commissions and other income		526			457			69			156			142			14

Total revenues		7,748			3,886			3,862			2,669			1,375			1,294


Benefits and Expenses (1):
Insurance and annuity benefits		4,576			1,680			2,896			1,507			525			982
Interest credited to policyholders’ account balances		675			480			195			228			165			63
Interest expense		418			411			7			142			140			2
Deferral of acquisition costs		(462	)		(453	)		(9	)		(166	)		(166	)		—
Amortization of acquisition costs		59			55			4			98			97			1
General and administrative expenses		1,797			1,177			620			633			431			202

Total benefits and expenses		7,063			3,350			3,713			2,442			1,192			1,250


Adjusted operating income before income taxes		685			536			149			227			183			44


	Nine Months Ended September 30, 2014									Quarter Ended September 30, 2014
	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		3,724			643			3,081			1,243			210			1,033
Policy charges and fee income		2,006			1,581			425			637			502			135
Net investment income		1,668			1,209			459			570			415			155
Asset management fees, commissions and other income		550			462			88			180			154			26

Total revenues		7,948			3,895			4,053			2,630			1,281			1,349


Benefits and Expenses (1):
Insurance and annuity benefits		4,863			1,616			3,247			1,692			548			1,144
Interest credited to policyholders’ account balances		635			452			183			214			152			62
Interest expense		402			395			7			149			146			3
Deferral of acquisition costs		(398	)		(398	)		—			(125	)		(125	)		—
Amortization of acquisition costs		228			221			7			29			27			2
General and administrative expenses		1,859			1,229			630			647			436			211

Total benefits and expenses		7,589			3,515			4,074			2,606			1,184			1,422


Adjusted operating income (loss) before income taxes		359			380			(21	)		24			97			(73	)

(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 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

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

(in millions)


Year-to-date							2014						2015
2015			2014				3Q			4Q			1Q			2Q			3Q

						ANNUALIZED NEW BUSINESS PREMIUMS (1):

	56			30		Variable life		10			22			18			13			25
	204			160		Universal life		43			59			57			65			82
	152			132		Term life		44			49			49			52			51

	412			322		Total		97			130			124			130			158


						ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1):

	82			71		Prudential Agents		24			27			25			27			30
	330			251		Third party distribution		73			103			99			103			128

	412			322		Total		97			130			124			130			158


						ACCOUNT VALUE ACTIVITY:

						*Policyholders’ Account Balances (2):*
	22,526			21,842		Beginning balance		22,239			22,570			22,526			22,617			23,734
	2,329			2,146		Premiums and deposits		696			734			737			830			762
	(790	)		(822	)	Surrenders and withdrawals		(274	)		(308	)		(267	)		(277	)		(246	)

	1,539			1,324		Net sales		422			426			470			553			516
	(383	)		(326	)	Benefit payments		(111	)		(104	)		(137	)		(128	)		(118	)

	1,156			998		Net flows		311			322			333			425			398
	897			362		Interest credited and other		231			(137	)		(29	)		895			31
	345			325		Net transfers from separate account		110			107			115			124			106
	(1,002	)		(957	)	Policy charges		(321	)		(336	)		(328	)		(324	)		(350	)
	—			—		Acquisition		—			—			—			(3	)		3

	23,922			22,570		Ending balance		22,570			22,526			22,617			23,734			23,922


						*Separate Account Liabilities:*
	27,888			26,916		Beginning balance		27,968			27,455			27,888			28,246			28,055
	989			930		Premiums and deposits		278			420			391			307			291
	(643	)		(661	)	Surrenders and withdrawals		(219	)		(212	)		(214	)		(225	)		(204	)

	346			269		Net sales		59			208			177			82			87
	(102	)		(80	)	Benefit payments		(20	)		(24	)		(34	)		(42	)		(26	)

	244			189		Net flows		39			184			143			40			61
	(911	)		1,393		Change in market value, interest credited and other		(201	)		594			563			124			(1,598	)
	(345	)		(325	)	Net transfers to general account		(110	)		(107	)		(115	)		(124	)		(106	)
	(693	)		(718	)	Policy charges		(241	)		(238	)		(233	)		(231	)		(229	)
	—			—		Acquisition		—			—			—			—			—

	26,183			27,455		Ending balance		27,455			27,888			28,246			28,055			26,183


						FACE AMOUNT IN FORCE (3):

						Variable life		169,493			168,852			168,000			166,490			164,363
						Universal life		150,697			152,706			154,921			157,425			160,829
						Term life		640,758			650,233			659,900			670,043			679,979

						Total		960,948			971,791			982,820			993,958			1,005,171

(1)	Excludes corporate-owned life insurance.

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

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

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

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

(dollar amounts in millions)


Year-to-date					2014						2015
2015		2014			3Q			4Q			1Q			2Q			3Q

				GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS:
	179		161	Group life		14			28			131			10			38
	64		58	Group disability		13			9			31			14			19

	243		219	Total		27			37			162			24			57


				Future Policy Benefits (1) (2):
				Group life		2,074			2,219			2,156			2,083			1,994
				Group disability		11			3			30			21			11

				Total		2,085			2,222			2,186			2,104			2,005


				Policyholders’ Account Balances (1):
				Group life		7,953			8,106			8,025			8,120			8,234
				Group disability		223			236			231			264			200

				Total		8,176			8,342			8,256			8,384			8,434


				Separate Account Liabilities (1):
				Group life		24,515			24,305			26,764			24,550			23,646
				Group disability		—			—			—			—			—

				Total		24,515			24,305			26,764			24,550			23,646


				Group Life Insurance:
	2,958		2,959	Gross premiums, policy charges and fee income (3)		953			1,018			978			1,006			974
	2,799		2,894	Earned premiums, policy charges and fee income		955			914			918			955			926
	89.2%		89.6%	Benefits ratio		89.9	%		88.1	%		92.8	%		86.5	%		88.6	%
	10.7%		10.8%	Administrative operating expense ratio		11.5	%		12.0	%		10.6	%		10.5	%		10.8	%
				Persistency ratio		93.5	%		93.2	%		92.8	%		92.6	%		92.0	%

				Group Disability Insurance:
	617		662	Gross premiums, policy charges and fee income (3)		220			220			199			205			213
	549		612	Earned premiums, policy charges and fee income		213			206			180			172			197
	72.5%		106.7%	Benefits ratio		133.8	%		79.1	%		72.2	%		61.6	%		81.8	%
	33.2%		29.9%	Administrative operating expense ratio		31.4	%		30.9	%		32.7	%		34.1	%		32.7	%
				Persistency ratio		84.6	%		83.9	%		89.5	%		88.6	%		87.7	%

(1)	As of end of period.

(2)	The amounts shown exclude liabilities for unpaid claims and claim adjustment expenses.

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

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

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

(in millions)


Year-to-date							2014						2015
2015			2014				3Q			4Q			1Q			2Q			3Q

						DEFERRED POLICY ACQUISITION COSTS

						INDIVIDUAL ANNUITIES:
	5,376			5,490		Beginning balance		5,521			5,554			5,376			5,046			5,186
	325			375		Capitalization		127			123			109			112			104
	(344	)		(392	)	Amortization - operating results		(141	)		(151	)		(89	)		(92	)		(163	)
	(653	)		84		Amortization - realized investment gains and losses		34			(144	)		(343	)		89			(399	)
	31			(3	)	Impact of unrealized (gains) or losses on AFS securities		13			(6	)		(7	)		31			7
	—			—		Other		—			—			—			—			—

	4,735			5,554		Ending balance		5,554			5,376			5,046			5,186			4,735


						INDIVIDUAL LIFE INSURANCE:
	4,056			4,112		Beginning balance		4,057			4,185			4,056			3,985			4,652
	453			398		Capitalization		125			149			139			148			166
	(55	)		(221	)	Amortization - operating results		(27	)		(124	)		(86	)		128			(97	)
	(8	)		8		Amortization - realized investment gains and losses		5			(31	)		(23	)		37			(22	)
	237			(112	)	Impact of unrealized (gains) or losses on AFS securities		25			(123	)		(101	)		354			(16	)

	4,683			4,185		Ending balance		4,185			4,056			3,985			4,652			4,683


						GROUP INSURANCE:
	177			183		Beginning balance		178			176			177			175			183
	9			—		Capitalization		—			2			—			9			—
	(4	)		(7	)	Amortization - operating results		(2	)		(1	)		(2	)		(1	)		(1	)
	—			—		Amortization - realized investment gains and losses		—			—			—			—			—
	—			—		Impact of unrealized losses on AFS securities		—			—			—			—			—

	182			176		Ending balance		176			177			175			183			182


						DEFERRED SALES INDUCEMENTS
						INDIVIDUAL ANNUITIES:
	1,513			1,813		Beginning balance		1,687			1,645			1,513			1,367			1,377
	6			18		Capitalization		4			3			3			2			1
	(117	)		(158	)	Amortization - operating results		(56	)		(57	)		(31	)		(30	)		(56	)
	(237	)		(29	)	Amortization - realized investment gains and losses		3			(78	)		(118	)		29			(148	)
	11			1		Impact of unrealized losses on AFS securities		7			—			—			9			2
	—			—		Other		—			—			—			—			—

	1,176			1,645		Ending balance		1,645			1,513			1,367			1,377			1,176

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

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COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


Year-to-date						% Change			2014						2015
2015			2014			% Change			3Q			4Q			1Q			2Q			3Q

								Revenues (1):
	10,537			11,086			-5%	Premiums		3,568			3,338			3,519			3,633			3,385
	408			432			-6%	Policy charges and fee income		156			164			140			139			129
	3,279			3,350			-2%	Net investment income		1,138			1,084			1,099			1,099			1,081
	469			461			2%	Asset management fees, commissions and other income		140			151			148			166			155

	14,693			15,329			-4%	Total revenues		5,002			4,737			4,906			5,037			4,750


								Benefits and Expenses (1):
	9,039			9,381			-4%	Insurance and annuity benefits		3,051			2,903			3,002			3,133			2,904
	667			737			-9%	Interest credited to policyholders’ account balances		256			224			224			224			219
	4			3			33%	Interest expense		1			1			1			1			2
	(1,178	)		(1,247	)		6%	Deferral of acquisition costs		(415	)		(394	)		(401	)		(395	)		(382	)
	756			715			6%	Amortization of acquisition costs		209			246			252			255			249
	2,917			3,174			-8%	General and administrative expenses		1,055			1,071			994			977			946

	12,205			12,763			-4%	Total benefits and expenses		4,157			4,051			4,072			4,195			3,938


	2,488			2,566			-3%	Adjusted operating income before income taxes		845			686			834			842			812

(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 2015

LOGO

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION

(in millions)


	Nine Months Ended September 30, 2015									Quarter Ended September 30, 2015
	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		10,537			5,100			5,437			3,385			1,643			1,742
Policy charges and fee income		408			257			151			129			85			44
Net investment income		3,279			1,303			1,976			1,081			434			647
Asset management fees, commissions and other income		469			263			206			155			88			67

Total revenues		14,693			6,923			7,770			4,750			2,250			2,500


Benefits and Expenses (1):
Insurance and annuity benefits		9,039			4,485			4,554			2,904			1,444			1,460
Interest credited to policyholders’ account balances		667			157			510			219			54			165
Interest expense		4			2			2			2			1			1
Deferral of acquisition costs		(1,178	)		(566	)		(612	)		(382	)		(178	)		(204	)
Amortization of acquisition costs		756			361			395			249			120			129
General and administrative expenses		2,917			1,266			1,651			946			411			535

Total benefits and expenses		12,205			5,705			6,500			3,938			1,852			2,086


Adjusted operating income before income taxes		2,488			1,218			1,270			812			398			414


	Nine Months Ended September 30, 2014									Quarter Ended September 30, 2014
	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		11,086			5,263			5,823			3,568			1,693			1,875
Policy charges and fee income		432			267			165			156			87			69
Net investment income		3,350			1,298			2,052			1,138			436			702
Asset management fees, commissions and other income		461			196			265			140			68			72

Total revenues		15,329			7,024			8,305			5,002			2,284			2,718


Benefits and Expenses (1):
Insurance and annuity benefits		9,381			4,580			4,801			3,051			1,486			1,565
Interest credited to policyholders’ account balances		737			172			565			256			59			197
Interest expense		3			2			1			1			1			—
Deferral of acquisition costs		(1,247	)		(585	)		(662	)		(415	)		(185	)		(230	)
Amortization of acquisition costs		715			337			378			209			84			125
General and administrative expenses		3,174			1,303			1,871			1,055			425			630

Total benefits and expenses		12,763			5,809			6,954			4,157			1,870			2,287


Adjusted operating income before income taxes		2,566			1,215			1,351			845			414			431

(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 2015

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date					2014				2015
2015		2014			3Q		4Q		1Q		2Q		3Q

				INTERNATIONAL INSURANCE OPERATING DATA:

				Actual exchange rate basis (1):

				Net premiums, policy charges and fee income:
	4,012		4,143	Japan, excluding Gibraltar Life		1,302		1,230		1,470		1,257		1,285
	5,588		5,988	Gibraltar Life		1,944		1,776		1,742		2,060		1,786
	1,345		1,387	All other countries		478		496		447		455		443

	10,945		11,518	Total		3,724		3,502		3,659		3,772		3,514


				Annualized new business premiums:
	505		545	Japan, excluding Gibraltar Life		161		161		199		146		160
	1,178		1,207	Gibraltar Life		409		377		357		413		408
	332		332	All other countries		113		123		117		112		103

	2,015		2,084	Total		683		661		673		671		671


				Annualized new business premiums by distribution channel:
	837		877	Life Planner Operations		274		284		316		258		263
	480		542	Gibraltar Life Consultants		174		159		146		172		162
	513		470	Banks		170		156		153		174		186
	185		195	Independent Agency		65		62		58		67		60

	2,015		2,084	Total		683		661		673		671		671


				Constant exchange rate basis (2):

				Net premiums, policy charges and fee income:
	4,937		4,528	Japan, excluding Gibraltar Life		1,437		1,454		1,795		1,542		1,600
	6,788		6,531	Gibraltar Life		2,111		2,036		2,099		2,501		2,188
	1,429		1,300	All other countries		446		495		464		470		495

	13,154		12,359	Total		3,994		3,985		4,358		4,513		4,283


				Annualized new business premiums:
	627		598	Japan, excluding Gibraltar Life		178		189		245		183		199
	1,369		1,268	Gibraltar Life		427		413		414		476		479
	359		309	All other countries		105		122		121		118		120

	2,355		2,175	Total		710		724		780		777		798


				Annualized new business premiums by distribution channel:
	986		907	Life Planner Operations		283		311		366		301		319
	578		577	Gibraltar Life Consultants		186		179		175		204		199
	570		484	Banks		173		166		171		191		208
	221		207	Independent Agency		68		68		68		81		72

	2,355		2,175	Total		710		724		780		777		798

(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 91 per U.S. dollar and Korean won 1120 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 2015

LOGO

INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2014						2015
	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		342			345			350			353			357
Gibraltar Life		373			374			374			374			376
All other countries		116			118			120			122			124

Total		831			837			844			849			857


Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life		3,077			3,111			3,162			3,194			3,234
Gibraltar Life		7,137			7,224			7,189			7,149			7,146
All other countries		1,821			1,855			1,880			1,911			1,944

Total		12,035			12,190			12,231			12,254			12,324


International life insurance policy persistency:

Life Planner Operations:
13 months		92.5	%		92.3	%		92.3	%		92.0	%		92.6	%
25 months		86.2	%		86.0	%		85.9	%		85.7	%		85.5	%

Gibraltar Life (3):
13 months		91.2	%		91.5	%		92.0	%		92.4	%		92.6	%
25 months		82.2	%		82.2	%		82.7	%		82.8	%		83.4	%

Number of Life Planners at end of period:
Japan		3,275			3,328			3,436			3,385			3,478
All other countries		3,938			4,024			4,033			4,030			4,031

Total Life Planners		7,213			7,352			7,469			7,415			7,509


Gibraltar Life Consultants		8,601			8,707			8,645			8,565			8,593

(1)	Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 91 per U.S. dollar and Korean won 1120 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.

(3)	Reflects business sold by Life Consultants and Independent Agents.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2015									December 31, 2014
	Total Portfolio		Closed Block Division		PFI Excluding Closed Block Division					Total Portfolio		Closed Block Business		PFI Excluding Closed Block Business
	Total Portfolio		Closed Block Division		Amount		% of Total			Total Portfolio		Closed Block Business		Amount		% of Total
Fixed maturities:
Public, available-for-sale, at fair value		240,228		24,161		216,067		63.1	%		249,165		28,626		220,539		64.5	%
Public, held-to-maturity, at amortized cost		1,882		—		1,882		0.5	%		2,000		—		2,000		0.6	%
Private, available-for-sale, at fair value		50,406		14,664		35,742		10.4	%		49,777		15,039		34,738		10.1	%
Private, held-to-maturity, at amortized cost		498		—		498		0.1	%		575		—		575		0.2	%
Trading account assets supporting insurance liabilities, at fair value		20,408		—		20,408		6.0	%		20,263		—		20,263		5.9	%
Other trading account assets, at fair value		1,823		299		1,524		0.4	%		1,806		350		1,456		0.4	%
Equity securities, available-for-sale, at fair value		9,106		2,724		6,382		1.9	%		9,853		3,522		6,331		1.8	%
Commercial mortgage and other loans, at book value		49,855		9,842		40,013		11.7	%		46,013		9,475		36,538		10.7	%
Policy loans, at outstanding balance		11,624		4,810		6,814		2.0	%		11,712		4,914		6,798		2.0	%
Other long-term investments (1)		10,113		2,970		7,143		2.2	%		9,935		2,766		7,169		2.1	%
Short-term investments		7,688		1,794		5,894		1.7	%		7,911		2,037		5,874		1.7	%

Subtotal (2)		403,631		61,264		342,367		100.0	%		409,010		66,729		342,281		100.0	%

Invested assets of other entities and operations (3)		13,319		—		13,319					10,976		—		10,976

Total investments		416,950		61,264		355,686					419,986		66,729		353,257

Fixed Maturities by Credit Quality (2):


	September 30, 2015											December 31, 2014
	PFI Excluding Closed Block Division											PFI Excluding Closed Block Business
	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		165,289		22,461		1,069		186,681		85.6	%		167,392		24,613		549		191,456		85.9	%
2		23,439		2,542		817		25,164		11.5	%		22,321		3,054		279		25,096		11.3	%

Subtotal - High or Highest Quality Securities		188,728		25,003		1,886		211,845		97.1	%		189,713		27,667		828		216,552		97.2	%

3		3,913		324		137		4,100		1.9	%		3,661		359		32		3,988		1.8	%
4		1,727		146		66		1,807		0.8	%		1,684		188		32		1,840		0.8	%
5		169		91		3		257		0.1	%		171		73		6		238		0.1	%
6		197		8		12		193		0.1	%		196		11		1		206		0.1	%

Subtotal - Other Securities		6,006		569		218		6,357		2.9	%		5,712		631		71		6,272		2.8	%

Total		194,734		25,572		2,104		218,202		100.0	%		195,425		28,298		899		222,824		100.0	%


Private Fixed Maturities:
NAIC Rating (4)
1		9,998		897		85		10,810		29.8	%		8,730		1,102		15		9,817		27.8	%
2		19,513		1,645		368		20,790		57.3	%		19,790		1,880		123		21,547		60.9	%

Subtotal - High or Highest Quality Securities		29,511		2,542		453		31,600		87.1	%		28,520		2,982		138		31,364		88.7	%

3		3,721		111		131		3,701		10.2	%		2,958		178		26		3,110		8.8	%
4		597		11		21		587		1.6	%		544		16		18		542		1.5	%
5		318		10		8		320		0.9	%		270		10		18		262		0.8	%
6		55		15		2		68		0.2	%		68		11		2		77		0.2	%

Subtotal - Other Securities		4,691		147		162		4,676		12.9	%		3,840		215		64		3,991		11.3	%

Total		34,202		2,689		615		36,276		100.0	%		32,360		3,197		202		35,355		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, 2015 and December 31, 2014, 771 securities with amortized cost of $3,455 million (fair value $3,494 million) and 1,330 securities with amortized cost of $6,864 million (fair value $7,342 million), respectively, that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

INVESTMENT PORTFOLIO COMPOSITION (1)

(in millions)


	September 30, 2015					December 31, 2014
	Amount		% of Total			Amount		% of Total
Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value		108,389		77.2	%		111,991		79.5	%
Public, held-to-maturity, at amortized cost		1,882		1.3	%		2,000		1.4	%
Private, available-for-sale, at fair value		9,564		6.8	%		8,835		6.3	%
Private, held-to-maturity, at amortized cost		498		0.4	%		575		0.4	%
Trading account assets supporting insurance liabilities, at fair value		1,913		1.4	%		1,910		1.4	%
Other trading account assets, at fair value		662		0.5	%		672		0.5	%
Equity securities, available-for-sale, at fair value		2,615		1.9	%		2,504		1.8	%
Commercial mortgage and other loans, at book value		9,435		6.7	%		8,215		5.8	%
Policy loans, at outstanding balance		2,189		1.6	%		2,146		1.5	%
Other long-term investments (3)		2,435		1.7	%		1,606		1.1	%
Short-term investments		747		0.5	%		406		0.3	%

Total		140,329		100.0	%		140,860		100.0	%


	September 30, 2015					December 31, 2014
	Amount		% of Total			Amount		% of Total
Excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available-for-sale, at fair value		107,678		53.3	%		108,548		53.9	%
Public, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Private, available-for-sale, at fair value		26,178		13.0	%		25,903		12.9	%
Private, held-to-maturity, at amortized cost		—		0.0	%		—		0.0	%
Trading account assets supporting insurance liabilities, at fair value		18,495		9.2	%		18,353		9.1	%
Other trading account assets, at fair value		862		0.4	%		784		0.4	%
Equity securities, available-for-sale, at fair value		3,767		1.9	%		3,827		1.9	%
Commercial mortgage and other loans, at book value		30,578		15.1	%		28,323		14.0	%
Policy loans, at outstanding balance		4,625		2.3	%		4,652		2.3	%
Other long-term investments (3)		4,708		2.3	%		5,563		2.8	%
Short-term investments		5,147		2.5	%		5,468		2.7	%

Total		202,038		100.0	%		201,421		100.0	%

(1)	For the Financial Services Businesses for periods prior to first quarter 2015 and excluding Closed Block Division for periods ended after December 31, 2014.

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

(3)	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 2015

LOGO

INVESTMENT RESULTS (1)

(in millions)


	Quarter Ended September 30
	2015									2014
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (4)			Amount			Realized Gains / (Losses)			Yield (4)			Amount			Realized Gains / (Losses)
General Account (2)
Fixed maturities		3.96	%		2,214			293			3.83	%		2,211			72
Equity securities		5.94	%		72			(36	)		6.24	%		75			7
Commercial mortgage and other loans		4.47	%		378			(14	)		4.55	%		326			54
Policy loans		4.97	%		84			—			5.11	%		89			—
Short-term investments and cash equivalents		0.22	%		10			—			0.22	%		7			—
Other investments		7.10	%		150			1,313			8.71	%		185			(496	)

Gross investment income before investment expenses		3.96	%		2,908			1,556			3.97	%		2,893			(363	)
Investment expenses		-0.15	%		(98	)		—			-0.15	%		(82	)		—

Subtotal		3.81	%		2,810			1,556			3.82	%		2,811			(363	)

Investment results of other entities and operations (3)					259			49						282			38
Less, investment income related to adjusted operating income reconciling items					(54	)								(53	)

Total					3,015			1,605						3,040			(325	)


	Nine Months Ended September 30
	2015									2014
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (4)			Amount			Realized Gains / (Losses)			Yield (4)			Amount			Realized Gains / (Losses)
General Account (2)
Fixed maturities		4.02	%		6,648			956			3.86	%		6,578			445
Equity securities		5.91	%		208			42			6.25	%		218			72
Commercial mortgage and other loans		4.48	%		1,094			(3	)		4.70	%		964			47
Policy loans		4.98	%		250			—			5.04	%		256			—
Short-term investments and cash equivalents		0.21	%		27			1			0.22	%		19			—
Other investments		6.47	%		408			2,446			9.00	%		564			(656	)

Gross investment income before investment expenses		3.98	%		8,635			3,442			4.02	%		8,599			(92	)
Investment expenses		-0.15	%		(288	)		—			-0.14	%		(255	)		—

Subtotal		3.83	%		8,347			3,442			3.88	%		8,344			(92	)

Investment results of other entities and operations (3)					814			115						831			79
Less, investment income related to adjusted operating income reconciling items					(167	)								(150	)

Total					8,994			3,557						9,025			(13	)

(1)	For the Financial Services Businesses for periods prior to first quarter 2015 and excluding Closed Block Division for periods ended after December 31, 2014.

(2)

Excludes commercial loans and 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.

(3)	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.

(4)

Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest related items, such as settlements of duration management swaps which are reported in realized investment gains and losses and 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 period presentation.

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 30
	2015									2014
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (1)			Amount			Realized Gains / (Losses)			Yield (1)			Amount			Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities		3.22	%		797			257			3.00	%		847			95
Equity securities		5.33	%		19			13			5.36	%		23			5
Commercial mortgage and other loans		4.38	%		99			(3	)		4.03	%		71			7
Policy loans		3.89	%		21			—			3.87	%		23			—
Short-term investments and cash equivalents		0.28	%		1			—			0.21	%		1			—
Other investments (2)		3.56	%		24			249			7.84	%		46			66

Gross investment income before investment expenses		3.33	%		961			516			3.16	%		1,011			173
Investment expenses		-0.14	%		(40	)		—			-0.12	%		(40	)		—

Total		3.19	%		921			516			3.04	%		971			173


	Nine Months Ended September 30
	2015									2014
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (1)			Amount			Realized Gains / (Losses)			Yield (1)			Amount			Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities		3.24	%		2,397			854			3.00	%		2,481			500
Equity securities		4.90	%		53			46			5.39	%		69			41
Commercial mortgage and other loans		4.49	%		290			3			4.29	%		218			9
Policy loans		3.89	%		62			—			3.87	%		67			—
Short-term investments and cash equivalents		0.25	%		3			—			0.24	%		3			—
Other investments (2)		5.87	%		112			29			7.08	%		125			294

Gross investment income before investment expenses		3.39	%		2,917			932			3.16	%		2,963			844
Investment expenses		-0.14	%		(121	)		—			-0.12	%		(114	)		—

Total		3.25	%		2,796			932			3.04	%		2,849			844

(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 2015

LOGO

INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS (1)

(in millions)


	Quarter Ended September 30
	2015									2014
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)			Amount			Realized Gains / (Losses)			Yield (3)			Amount			Realized Gains / (Losses)
Excluding Japanese Insurance Operations (2):
Fixed maturities		4.56	%		1,417			36			4.62	%		1,364			(23	)
Equity securities		6.21	%		53			(49	)		6.74	%		52			2
Commercial mortgage and other loans		4.51	%		279			(11	)		4.73	%		255			47
Policy loans		5.48	%		63			—			5.75	%		66			—
Short-term investments and cash equivalents		0.22	%		9			—			0.22	%		6			—
Other investments		8.74	%		126			1,064			9.03	%		139			(562	)

Gross investment income before investment expenses		4.38	%		1,947			1,040			4.61	%		1,882			(536	)
Investment expenses		-0.16	%		(58	)		—			-0.16	%		(42	)		—

Total		4.22	%		1,889			1,040			4.45	%		1,840			(536	)


	Nine Months Ended September 30
	2015									2014
	Investment Income						Realized Gains / (Losses)			Investment Income						Realized Gains / (Losses)
	Yield (3)			Amount			Realized Gains / (Losses)			Yield (3)			Amount			Realized Gains / (Losses)
Excluding Japanese Insurance Operations (2):
Fixed maturities		4.65	%		4,251			102			4.69	%		4,097			(55	)
Equity securities		6.36	%		155			(4	)		6.76	%		149			31
Commercial mortgage and other loans		4.48	%		804			(6	)		4.83	%		746			38
Policy loans		5.50	%		188			—			5.65	%		189			—
Short-term investments and cash equivalents		0.21	%		24			1			0.22	%		16			—
Other investments		6.73	%		296			2,417			9.73	%		439			(950	)

Gross investment income before investment expenses		4.37	%		5,718			2,510			4.70	%		5,636			(936	)
Investment expenses		-0.16	%		(167	)		—			-0.16	%		(141	)		—

Total		4.21	%		5,551			2,510			4.54	%		5,495			(936	)

(1)	For the Financial Services Businesses for periods prior to first quarter 2015 and excluding Closed Block Division for periods ended after December 31, 2014.

(2)

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.

(3)

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

Adjusted operating income is a non-GAAP measure of performance 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, discontinued operations, and results of the Closed Block Business for periods prior to first quarter 2015; 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. 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. Amounts ascribed to Gibraltar Life Consultants include production by captive agents associated with consolidated joint venture of Gibraltar Life and Other Operations.

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. For periods prior to first quarter 2015, 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. For periods subsequent to December 31, 2014, attributed equity represents all of Prudential Financial, Inc. equity that is not attributable to noncontrolling interests.

6. Book value per share of Common Stock:

Equity attributed to Prudential Financial, Inc. for periods subsequent to December 31, 2014 and Financial Services Businesses for periods prior to first quarter 2015 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 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

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. Divested Businesses:

Businesses that have been sold or exited, including businesses that have been placed in wind down, but that did not qualify for “discontinued operations” accounting treatment under U.S. GAAP.

12. Earned Premiums:

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

13. Earnings Per Share of Common Stock:

From December 18, 2001, the date of demutualization, through December 31, 2014, the Company had two separate classes of common stock. The Common Stock reflected the performance of the Financial Services Businesses and the Class B Stock reflected the performance of the Closed Block Business. Earnings per share were calculated separately for each of these two classes of common stock and included a direct equity adjustment to modify the earnings available to each of the classes of common stock for the difference between the allocation of general and administrative expenses to each of the businesses and the cash flows between the businesses related to these expenses. Accordingly, earnings per share of Common Stock for periods through December 31, 2014 reflect earnings attributable to the Financial Services Businesses. On January 2, 2015, Prudential Financial Inc. repurchased and cancelled all of the 2.0 million shares of the Class B Stock. Accordingly, earnings per share of Common Stock for periods subsequent to December 31, 2014 reflect the consolidated earnings of Prudential Financial Inc. In addition, the Class B Repurchase resulted in the elimination of the separation of the Financial Services Businesses and the Closed Block Business. As a result, there is no direct equity adjustment recorded for periods subsequent to December 31, 2014. Earnings per share of the Class B Stock for periods through December 31, 2014 are not presented herein, as they are not meaningful due to the Class B Repurchase.

14. Full Service Retirement:

The Full Service Retirement 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.

15. Full Service Stable Value:

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

16. General Account:

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

17. Gibraltar Life:

Includes results from consolidated joint venture operation of Gibraltar Life and Other Operations.

18. Gibraltar Life Consultants:

Captive insurance agents for Gibraltar Life. Count and policy persistency do not include captive agents associated with consolidated joint venture of Gibraltar Life and Other Operations.

19. 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.

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

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

21. 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.

22. Individual Annuities - Net Amounts at Risk:

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

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

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KEY DEFINITIONS AND FORMULAS

23. 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.

24. International Life Planners:

Captive insurance agents in our Life Planner Operations.

25. 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.

26. 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 for periods prior to March 31, 2015) , annualized for interim periods, divided by average attributed equity excluding accumulated other comprehensive income and adjusted to remove amount included for foreign currency exchange rate remeasurement on page 3.

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). For periods subsequent to December 31, 2014, return on average equity (based on income from continuing operations) represents income from continuing operations after-tax, attributable to consolidated Prudential Financial, Inc., as determined in accordance with GAAP, annualized for interim periods, divided by average total attributed equity. For periods prior to first quarter 2015, return on average equity represents income from continuing operations after-tax, for the Financial Services Businesses, attributable to Prudential Financial, Inc. (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 13.9%,13.0%, 18.9%, (12.1)%, and 4.6% for the three months ended September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014, and September 30, 2014, respectively.

27. Policy Persistency - Group Insurance:

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

28. 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.

29. Prudential Agents:

Captive insurance agents in our insurance operations in the United States.

30. 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.

31. Separate Accounts:

Assets of our insurance companies allocated under certain policies and contracts that are segregated from the general account and other separate accounts. The policyholder or contractholder predominantly bears the risk of investments held in a separate account.

32. Wrap-Fee Products:

Investment products generating asset-based fees in which the funds of the customer are generally invested in other investment products such as mutual funds.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2015

LOGO

RATINGS AND INVESTOR INFORMATION

FINANCIAL STRENGTH RATINGS

as of November 4, 2015


	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	A+	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	A+	NR	NR
The Prudential Gibraltar Financial Life Insurance Co. Ltd.	NR	A+	NR	NR
Prudential Life Insurance Co. of Taiwan, Inc.	NR	twAA+	NR	NR

CREDIT RATINGS:
as of November 4, 2015

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.

(1)	Prudential Life Insurance Co. of Taiwan was assigned a financial strength rating by Taiwan Ratings Corporation, a partner of Standard and Poor’s.

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.

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PRUDENTIAL FINANCIAL INC - FORM 8-K - EX-99.2 - November 4, 2015

Attached files