PRESS RELEASE

For Immediate Release Contact: Bob DeFillippo
May 7, 2002 (973) 802-4149
After 4 p.m.



PRUDENTIAL FINANCIAL, INC. ANNOUNCES FIRST QUARTER 2002 RESULTS

Newark, NJ - Prudential Financial, Inc. (NYSE:PRU) today reported first
quarter 2002 after-tax adjusted operating income for its Financial Services
Businesses of $332 million, compared to $296 million for the first quarter of
2001. Adjusted operating income was 58 cents per share of Common Stock for the
first quarter of 2002, compared to 51 cents per Common share in the first
quarter of 2001 on an equivalent share basis, which assumes that shares issued
in the Company's demutualization on December 18, 2001 and its initial public
offering of Common Stock were outstanding for the entire 2001 period. First
quarter 2002 results include the contribution of Gibraltar Life, which the
Company acquired in April 2001.

"Prudential Financial is off to a good start as a public company," said
Chairman and CEO Arthur F. Ryan. "First quarter earnings per share, based on
adjusted operating income, were on track. Our International division continues
to produce strong growth, including the contribution of Gibraltar Life. In
addition, while difficult equity market conditions have continued to hurt some
of our businesses, our U.S. operations are beginning to reflect the benefits of
expense reductions for which we absorbed the costs in our 2001 results. For that
reason, we continue to expect that Prudential will achieve Common Stock earnings
per share in the range of $2.10 to $2.30 for the year 2002, based on after-tax
adjusted operating income, assuming that equity market conditions stabilize over
the balance of the year, including essentially no change in the S&P 500 index,"
Ryan said. This expectation is subject to change if actual equity market
conditions differ from this assumption and as discussed under "Forward-Looking
Statements" below.

After-tax adjusted operating income excludes realized investment gains,
net of losses and related charges, and results from divested businesses, as well
as demutualization costs and expenses for the year-ago quarter. Net income of
the Financial Services Businesses, which includes the foregoing items, amounted
to $263 million for the first quarter of 2002 compared to $403 million for the
year-ago quarter. Net income was 46 cents per Common share for the first quarter
of 2002, compared to 69 cents per equivalent Common share in the year-ago
quarter.

In the following business-level discussion, adjusted operating income
refers to pre-tax results.



Financial Services Businesses
- -----------------------------

Prudential Financial's Common Stock (NYSE:PRU) reflects the performance of its
Financial Services Businesses, which consist of its U.S. Consumer, Employee
Benefits, International and Asset Management divisions and its Corporate and
Other operations.

U.S. Consumer division reported pre-tax adjusted operating income of $171
million for the first quarter of 2002, a decrease of $23 million from $194
million in the year-ago quarter. Our Individual Life Insurance segment reported
adjusted operating income of $117 million for the current quarter, a $38 million
increase over the year-ago quarter, as we realized savings from our field
management and agency restructuring program and benefited from more favorable
mortality experience. Our Private Client Group segment reported a loss, on an
adjusted operating income basis, of $19 million for the current quarter,
compared to a $6 million loss in the year-ago quarter. We estimate that the
continued decline in individual investor transaction volume and customer margin
balances had a negative impact of about $60 million on the quarterly comparison
for this segment. However, this impact was largely mitigated by our cost
reduction measures. Our Retail Investments segment reported adjusted operating
income of $51 million in the current quarter, a $10 million decline from the
year-ago quarter, as results were negatively affected by lower asset values. Our
Property and Casualty Insurance segment reported adjusted operating income of
$22 million in the current quarter, a $38 million decline from the year-ago
quarter. During the current quarter, that segment realized $22 million in
stop-loss reinsurance recoveries and prior year reserve releases, while the
benefit from these items in the year-ago quarter was $71 million. The $49
million net effect of these items was partially offset by expense savings we
realized as a result of our cost reduction measures.

International division pre-tax adjusted operating income for the first quarter
of 2002 increased $102 million, to $200 million from $98 million in the year-ago
quarter. The International Insurance segment reported $204 million of adjusted
operating income for the quarter, representing a $109 million increase over the
year-ago quarter, including a $104 million contribution from Gibraltar Life,
which we acquired in April 2001. Gibraltar Life's results reflect favorable
mortality experience in the current quarter. Adjusted operating income from our
international insurance operations other than Gibraltar Life reflected business
growth in Japan and Korea, partly offset by the negative impact of currency
fluctuations.

Employee Benefits division pre-tax adjusted operating income amounted to $66
million in the first quarter of 2002, a decrease of $38 million from $104
million in the year-ago quarter. Adjusted operating income from our Other
Employee Benefits segment declined $28 million, to $29 million from $57 million
in the year-ago quarter, primarily from our guaranteed products business, which
had lower investment income margins during the current quarter. Our Group
Insurance segment reported adjusted operating income of $37 million in the
current quarter and $47 million in the year-ago quarter, which benefited from
our favorable estimates of life claims development at that time. During 2002, we




expect to implement rate increases on group life insurance business representing
about half of our year 2001 premiums in force, and these rate increases were
implemented with respect to about one-quarter of the overall group life business
during the first quarter of 2002.

Asset Management division pre-tax adjusted operating income amounted to $63
million in the first quarter of 2002, a decrease of $15 million from $78 million
in the year-ago quarter. Despite market value declines in our equity assets
under management, adjusted operating income of our Investment Management and
Advisory Services segment increased to $39 million in the current quarter from
$34 million in the year-ago quarter, reflecting lower expense levels. Assets
managed by the Asset Management division were $290 billion at March 31, 2002, a
decrease of $8 billion from a year earlier. The decrease reflects our sale,
during the first quarter of 2002, of a portion of our quantitative-style equity
asset management to a third party. Adjusted operating income from our Other
Asset Management segment decreased $20 million, to $24 million in the current
quarter from $44 million in the year-ago quarter, as the segment's equity
securities operations were negatively affected by reduced trading spreads and
transaction volume.

Corporate and Other operations resulted in pre-tax adjusted operating income of
$23 million in the first quarter of 2002 compared to a loss, on an adjusted
operating income basis, of $1 million in the year-ago quarter. First quarter
2002 results include investment income from assets transferred to the Financial
Services Businesses in connection with the formation of the Closed Block
Business in the fourth quarter of 2001.

Assets under management and administration amounted to $580 billion at March 31,
2002, including approximately $26 billion relating to Gibraltar Life, compared
to $560 billion a year earlier, before the Gibraltar Life acquisition, and $590
billion at December 31, 2001.

Net income of the Financial Services Businesses for the first quarter of 2002
was $263 million and included $96 million of realized investment losses, net of
related charges, compared to realized investment gains, net of related charges,
of $243 million in the year-ago quarter. Net income of the Financial Services
Businesses for the year-ago quarter was $403 million and also included
demutualization costs and expenses of $45 million.

Closed Block Business
- ---------------------

Prudential's Class B Stock, which is not traded on any exchange, reflects the
performance of its Closed Block Business.

The Closed Block Business, which represents results of our Traditional
Participating Products segment prior to the demutualization, includes our
in-force participating life insurance and annuity policies, and assets that are
being used for the payment of benefits




and policyholder dividends on these policies, as well as other assets and equity
that support these policies. We have ceased offering these participating
policies.

The Closed Block Business reported a $175 million loss from operations before
income taxes for the first quarter of 2002, a $249 million decline from income
from operations before income taxes of $74 million for the year-ago
quarter, primarily due to declines in realized investment gains and losses and
net investment income. Closed Block Business results included net realized
investment losses of $74 million in the current quarter, compared to net
realized investment gains of $89 million in the year-ago quarter.

The Closed Block Business reported a first quarter 2002 net loss of $110
million, compared to net income of $34 million for the year-ago quarter.

Consolidated Results
- --------------------

There is no legal separation of the Financial Services Businesses and the Closed
Block Business, and holders of the Common Stock and the Class B Stock are both
common stockholders of Prudential Financial, Inc.

On a consolidated basis, which includes the results of both the Financial
Services Businesses and the Closed Block Business, Prudential Financial, Inc.
reported net income of $153 million for the first quarter of 2002 and $437
million for the year-ago quarter.

Forward-Looking Statements
- --------------------------

Certain of the statements included in this release, including (but not limited
to) those in the second paragraph hereof, constitute forward-looking statements
within the meaning of the U. S. Private Securities Litigation Reform Act of
1995. Words such as "expects," "believes," "anticipates," "intends," "plans,"
"assumes," "estimates," "projects," or variations of such words are generally
part of forward-looking statements. Forward-looking statements are made based on
management's current expectations and beliefs concerning future developments and
their potential effects upon Prudential Financial, Inc. and its subsidiaries.
There can be no assurance that future developments affecting Prudential
Financial, Inc. and its subsidiaries will be those anticipated by management.
These forward-looking statements are not a guarantee of future performance and
involve risks and uncertainties, and there are certain important factors that
could cause actual results to differ, possibly materially, from expectations or
estimates reflected in such forward-looking statements, including without
limitation: general economic, market and political conditions, including the
performance of financial markets, interest rate fluctuations and the continuing
impact of the events of September 11, 2001; volatility in the securities
markets; reestimates of our reserves for future policy benefits and claims; our
exposure to contingent liabilities; catastrophe losses; investment losses and
defaults; changes in our claims-paying or credit ratings; competition in our
product lines and for



personnel; fluctuations in foreign currency exchange rates and foreign
securities markets; risks to our international operations; the impact of
changing regulation or adverse litigation results; and changes in tax law.
Prudential Financial, Inc. does not intend, and is under no obligation to,
update any particular forward-looking statement included in this document. The
information referred to above, as well as the risks of our businesses described
in our Annual Report on Form 10-K for the year ended December 31, 2001, should
be considered by readers when reviewing forward-looking statements contained in
this release.

Earnings Conference Call
- ------------------------

Members of Prudential's senior management will host a conference call on
Wednesday, May 8, 2002, at 4 p.m. ET, to discuss with the investment community
the Company's first quarter results. The conference call will be broadcast live
over the Company's Investor Relations Web site at:
http://www.investor.prudential.com. Please log on fifteen minutes early in the
event necessary software needs to be downloaded. The call will remain on the
Investor Relations Web site for replay through May 22. Institutional investors,
analysts, and other members of the professional financial community are invited
to listen to the call and participate in Q&A by dialing (888) 276-9996 (domestic
callers) or (612) 288-0337 (international callers). All others are encouraged to
dial into the conference call in listen-only mode, by dialing (800) 230-1085
(domestic callers) or (612) 332-0923 (international callers). To listen to a
replay of the conference call from 9:15 p.m. on May 8 through 11:59 p.m. on May
16, dial (800) 475-6701 (domestic callers) or (320) 365-3844 (international
callers). The access code for the replay is 634373.

Prudential Financial companies serve individual and institutional customers
worldwide and include The Prudential Insurance Company of America, one of the
largest life insurance companies in the U.S. These companies offer a variety of
products and services, including life insurance, property and casualty
insurance, mutual funds, annuities, pension and retirement related services and
administration, asset management, securities brokerage, banking and trust
services, real estate brokerage franchises and relocation services. For more
information, visit www.prudential.com.

-Prudential-






Financial Highlights
(in millions, except per share data)