Prudential Financial, Inc.
News Release		751 Broad Street Newark, NJ 07102-3777 www.prudential.com
For Immediate Release		Contact:  Bob DeFillippo
After 4 p.m.		973 802-4149
August 5, 2003

Exhibit 99.0

PRUDENTIAL FINANCIAL, INC.

ANNOUNCES SECOND QUARTER 2003 RESULTS

Newark, NJ—Prudential Financial, Inc. (NYSE:PRU) today reported net income for its Financial Services Businesses of $127 million (25 cents per Common share) for the second quarter of 2003, compared to $95 million (19 cents per Common share) for the year-ago quarter. After-tax adjusted operating income for the Financial Services Businesses was $358 million, or 67 cents per Common share, for the second quarter of 2003, compared to $290 million, or 52 cents per Common share, for the second quarter of 2002. Pre-tax adjusted operating income of the Financial Services Businesses was $531 million in the second quarter of 2003, compared to $465 million in the year-ago quarter. Adjusted operating income excludes net realized investment gains and related charges and adjustments, results from divested businesses, and discontinued operations.

For the first half of 2003, net income of the Financial Services Businesses amounted to $324 million (63 cents per Common share) compared to $358 million (65 cents per Common share) for the first half of 2002. First half 2003 after-tax adjusted operating income of the Financial Services Businesses amounted to $651 million ($1.22 per Common share) compared to $606 million ($1.07 per Common share) for the first half of 2002.

The company acquired American Skandia on May 1, 2003, and second quarter 2003 results of the Financial Services Businesses include its results from the date of acquisition. In May 2003, the company announced its agreements to sell its principal property and casualty insurance businesses. The expected losses on these sales and the results of these

businesses, other than retained overhead, are included in divested businesses for all periods presented.

“Second quarter results demonstrate that we are making progress toward our goals. We’ve strengthened our annuity business with the acquisition of American Skandia, whose integration is on track. This business is already making a significant contribution to our results in line with our expectations. The agreements to sell our property and casualty insurance businesses, expected to close by the end of the year, are also milestones in our efforts to use our capital more effectively. In the second quarter, our international operations again produced solid results, while our domestic businesses benefited from the strong equity markets in the quarter, as well as the actions we’ve taken to reduce our cost structure. Our actions to improve Prudential’s efficiency are ongoing,” said Chairman and CEO Arthur F. Ryan.

“The combination of our retail securities brokerage business with Wachovia Securities closed on July 1. Considering the impact we expect from our recent transactions, including related charges of approximately 25 cents per share in 2003 from the combination of the retail securities brokerage operations, of which about 5 cents per share has already been absorbed in second quarter results, we believe that Prudential Financial will achieve Common Stock earnings per share in the range of $2.25 to $2.40 for the year 2003, based on after-tax adjusted operating income. The 2003 expectation assumes appreciation in the S&P 500 index of 2% per quarter,” Ryan said. This expectation is subject to change if these assumptions are not realized and as discussed under “Forward Looking Statements” below.

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Financial Services Businesses

Prudential Financial’s Common Stock (NYSE:PRU) reflects the performance of its Financial Services Businesses, which consist of its Insurance, Investment, and International Insurance and Investments divisions and its Corporate and Other operations.

Income (loss) from continuing operations before income taxes for the second quarter of 2003 was $226 million for the Insurance division, $95 million for the Investment division, $142 million for the International Insurance and Investments division, and $(345) million for Corporate and Other operations. For the year-ago quarter, income (loss) from continuing operations before income taxes was $59 million for the Insurance division, $(32) million for the Investment division, $148 million for the International Insurance and Investments division, and $(24) million for Corporate and Other operations.

Presented below is a discussion of the results of our divisions, based on a non-GAAP financial measure we call adjusted operating income. As discussed below, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of the results of operations of the Financial Services Businesses by highlighting the results from ongoing operations and the underlying profitability of our businesses. The schedules accompanying this release provide a reconciliation of adjusted operating income for the Financial Services Businesses to income from continuing operations in accordance with generally accepted accounting principles.

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

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The Insurance division reported pre-tax adjusted operating income of $236 million for the second quarter of 2003, an increase of $87 million from $149 million in the year-ago quarter. Our Individual Life and Annuities segment reported adjusted operating income of $178 million for the current quarter, representing a $65 million increase from the year-ago quarter, including a $43 million contribution from the initial two months of operations of the American Skandia business we acquired on May 1. The segment’s individual life insurance business reported adjusted operating income of $113 million in the current quarter, compared to $130 million in the year-ago quarter. Current quarter mortality experience was within our expected range but less favorable than that of the strong year-ago quarter. The segment’s existing individual annuity business reported adjusted operating income of $22 million in the current quarter, compared to a loss, on an adjusted operating income basis, of $17 million in the year-ago quarter which included a $48 million charge for additional amortization of deferred policy acquisition costs to reflect our lower estimate of profitability from annuities due to equity market conditions at that time. Asset-based fees in the current quarter were negatively affected by lower asset values in comparison to the year-ago quarter. Our Group Insurance segment reported adjusted operating income of $58 million in the current quarter, compared to $36 million in the year-ago quarter. Current quarter results benefited from unusually favorable group life mortality experience, reflecting claims incidence at less than our expected level.

The Investment division reported pre-tax adjusted operating income of $78 million in the second quarter of 2003, a decrease of $14 million from $92 million in the year-ago quarter. Our Financial Advisory segment reported losses, on an adjusted operating income basis, of $20 million for the current quarter and $6 million in the year-ago quarter. The current quarter loss included a $37 million retirement plan charge related to the combination of our retail securities brokerage business with Wachovia Securities, which was among the expected charges associated with this transaction. Absent this charge, the Financial Advisory

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segment’s operations resulted in adjusted operating income of $17 million for the current quarter, as a lower expense level reflecting our cost reduction measures more than offset declines in individual investor transaction volume and asset values on which our fees are based, in comparison to the year-ago quarter. Adjusted operating income from our Retirement segment amounted to $45 million for the current quarter, compared to $50 million in the year-ago quarter. The segment’s guaranteed products business benefited from income of $30 million from a mortgage prepayment in the year-ago quarter, and by about half that amount from investment market value changes and mortgage prepayments in the current quarter. Adjusted operating income from the Investment Management and Other Asset Management segments amounted to $53 million in the current quarter, compared to $48 million in the year-ago quarter.

The International Insurance and Investments division reported pre-tax adjusted operating income for the second quarter of 2003 of $217 million, an increase of $34 million from $183 million in the year-ago quarter. The International Insurance segment reported adjusted operating income of $207 million for the quarter, compared to $187 million for the year-ago quarter. The segment’s Gibraltar Life operations reported adjusted operating income of $98 million for the current quarter, compared to $101 million for the year-ago quarter. Although Gibraltar Life’s adjusted operating income for the year-ago quarter reflected a net negative impact of about $20 million from charges from refinements of estimates, primarily of amounts due policyholders, and gains from policy surrenders, the net effect of these items was largely offset by favorable benefits experience during that quarter. Gibraltar Life’s level of policyholder benefits and expenses during the current quarter was within our expected range, but less favorable than that of the year-ago quarter. Adjusted operating income from our international insurance operations other than Gibraltar Life was $109 million in the current quarter, an increase of $23 million from the year-ago quarter, reflecting continued business growth in Japan and Korea and a more favorable level of policy benefits and expenses in the current quarter.

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Corporate and Other operations reported break-even pre-tax adjusted operating income results in the second quarter of 2003, compared to pre-tax adjusted operating income of $41 million in the year-ago quarter. The current quarter included costs of $37 million related to a structured financing transaction we entered into before our demutualization involving a future payment of a preferred stock dividend that the company believes is probable.

Assets under management amounted to $422 billion at June 30, 2003, compared to $368 billion a year earlier and $378 billion at December 31, 2002. During the second quarter of 2003, the American Skandia acquisition added $22 billion of variable annuity assets and $4 billion of mutual fund assets.

Net income of the Financial Services Businesses for the second quarter of 2003 amounted to $127 million, compared to $95 million in the year-ago quarter. Current quarter net income included a loss from divested businesses, before applicable taxes, of $402 million. The current quarter loss from divested businesses includes a $455 million pre-tax charge related to the company’s agreements to sell its National and New Jersey property and casualty insurance businesses and represents the expected losses on those sales as well as certain related employee termination costs. Current quarter net income also included $11 million of net realized investment losses and related charges and adjustments, and income of $13 million (net of related taxes) from discontinued operations. The realized losses in the current quarter included losses of $80 million from impairments and sales of credit-impaired securities, which were largely offset by realized gains from fixed maturities, including private bond prepayments, and other investments. At June 30, 2003, gross unrealized losses on fixed maturity investments of the Financial Services Businesses amounted to $164 million.

The net income of the Financial Services Businesses for the year-ago quarter included realized investment losses, net, and related charges and adjustments, of

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$345 million, including losses of $254 million representing fluctuations in value of hedging instruments covering our foreign currency and interest rate risks. Realized losses in the year-ago quarter also included losses of $83 million on the disposal of substantially all remaining WorldCom holdings, and $137 million of additional realized losses from impairments and sales of credit-impaired securities, partially offset by realized gains from fixed maturities. Net income for the year-ago quarter also included income from divested businesses, before applicable taxes, of $31 million, primarily from operations of the National and New Jersey property and casualty businesses.

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 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 second quarter 2003 net income of $69 million, compared to a net loss of $163 million for the year-ago quarter.

The Closed Block Business reported income from operations before income taxes of $108 million for the second quarter of 2003 and a loss from operations before income taxes of $254 million for the year-ago quarter. Closed Block Business results included net realized investment gains of $114 million in the current quarter and realized investment losses of $177 million in the year-ago quarter.

For the first half of 2003, the Closed Block Business reported net income of $68 million, compared to a net loss of $273 million for the first half of 2002.

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The Closed Block Business reported income from operations before income taxes of $107 million for the first half of 2003 and a loss from operations before income taxes of $429 million for the first half of 2002.

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 $196 million for the second quarter of 2003 and a net loss of $68 million for the year-ago quarter, and reported net income of $392 million for the first half of 2003 and $85 million for the first half of 2002.

Share Repurchase Program

During the second quarter of 2003, the company acquired 7.4 million shares of its Common Stock, at a total cost of approximately $238 million. From the commencement of share repurchases in May 2002, through June 30, 2003, the company acquired 41.5 million shares of its Common Stock at a total cost of approximately $1.288 billion. This included 1.7 million shares repurchased and reissued directly to a company deferred compensation plan during 2002.

Forward-Looking Statements

Certain of the statements included in this release, including (but not limited to) those in the fifth 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,” “includes,” “plans,” “assumes,” “estimates,” “projects,” “intends,” or variations of such words are generally part of forward-looking statements. Forward-looking statements are

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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 current economic environment; various domestic or international military or terrorist activities or conflicts; volatility in the securities markets; reestimates of our reserves for future policy benefits and claims; changes in our assumptions related to deferred policy acquisition costs; 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 accounting practices; Prudential Financial, Inc.’s primary reliance, as a holding company, on dividends from its subsidiaries to meet debt payment obligations and the applicable regulatory restrictions on the ability of the subsidiaries to pay such dividends; 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.

As indicated above, our expectation of earnings per Common share is based on after-tax adjusted operating income. Adjusted operating income, which is not measured in accordance with generally accepted accounting principles (GAAP), excludes net realized investment gains and losses. A significant element of realized losses is impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles and can vary considerably across periods. The timing of other sales that would result in gains

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or losses is largely subject to our discretion and influenced by market opportunities. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of these transactions. Adjusted operating income also excludes the results of divested businesses, which are not relevant to our ongoing operations. Because we do not predict future realized investment gains (losses), we cannot provide a measure of our Common Stock earnings per share expectation based on income from continuing operations of the Financial Services Businesses, which is the GAAP measure most comparable to adjusted operating income.

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, 2002, 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, August 6, 2003, at 11 a.m. ET, to discuss with the investment community the company’s second 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 August 20. 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) 428-4473 (domestic callers) or (651) 291-0561 (international callers). All others are encouraged to dial into the conference call in listen-only mode, using the same numbers. To listen to a replay of the conference call starting at 4:15 p.m. on August 6, dial (800) 475-6701 (domestic callers) or (320) 365-3844 (international callers). The access code for the replay is 681465.

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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.

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Financial Highlights

(in millions, except per share data)

See footnotes on page 4.

Page 1

Financial Services Businesses Division Highlights

(in millions, except as otherwise noted)

See footnotes on page 4.

Page 2

Financial Services Businesses Division Highlights

(in millions, except per share data or as otherwise noted)