February 10, 2004 - QUARTERLY FINANCIAL SUPPLEMENT, QUARTERLY PERIOD ENDED DECEMBER 31, 2003 - 8-K: Current report

Exhibit 99.1

LOGO

Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

FOURTH QUARTER 2003

Reference is made to Prudential Financial, Inc.’s filings with the Securities and Exchange Commission for general information, and consolidated financial information, regarding Prudential Financial, Inc., including its Closed Block Business.


i		February 10, 2004

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

CONTENTS


		Page
HIGHLIGHTS
Financial Highlights		1-2
Operations Highlights		3

FINANCIAL SERVICES BUSINESSES
Combined Statements of Operations		4
Combined Balance Sheets		5
Combining Statements of Operations by Division (Quarter)		6
Combining Statements of Operations by Division (Year-to-Date)		7
Combining Balance Sheets by Division		8
Short-Term Debt		9
Long-Term Debt		10

INSURANCE DIVISION
Combined Statements of Operations		11
Combining Statements of Operations (Quarter)		12
Combining Statements of Operations (Year-to-Date)		13
Individual Life and Annuities Sales Results and Account Values		14
Individual Life and Annuities Segment Account Value Activity		15
Deferred Policy Acquisition Costs		16
Supplementary Information for Individual Life Insurance		17
Supplementary Information for Group Insurance		18

INVESTMENT DIVISION
Combined Statements of Operations		19
Combining Statements of Operations (Quarter)		20
Combining Statements of Operations (Year-to-Date)		21
Supplementary Revenue Information for Investment Management Segment		22
Supplementary Revenue Information for Financial Advisory Segment		23
Assets Under Management for Investment Management and Advisory Services operations		24
Mutual Funds and Wrap-fee Products Sales Results and Assets Under Management		25
Retirement Sales Results and Account Values		26

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
Combined Statements of Operations		27
Combining Statements of Operations		28
Sales Results and Supplementary Information		29-30

INVESTMENT PORTFOLIO
Investment Portfolio Composition		31
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		32
Financial Services Businesses Investment Results		33
Financial Services Businesses Investment Results - Japanese Insurance Operations		34
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations		35

RECLASSIFIED STATEMENTS OF OPERATIONS		36-44

RECLASSIFIED SALES AND DEATH BENEFITS PER $1,000 OF IN FORCE INFORMATION - INDIVIDUAL LIFE		45

KEY DEFINITIONS AND FORMULAS		46-48

RATINGS AND INVESTOR INFORMATION		49

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

This Quarterly Financial Supplement reflects the following, for all periods presented:

As a result of the expected sale of the Company’s Merastar personal lines property and casualty business, its results have been classified as discontinued operations. The results of this unit were formerly classified as “divested businesses.”

Results from certain branches of the Company’s European retail transaction-oriented stockbrokerage operations, formerly reported as discontinued operations, have been classified as “divested businesses” due to timing of the divestiture process.

Results of a small distribution organization, formerly included in adjusted operating income of the Individual Life and Annuities segment, have been classified as discontinued operations, as a result of the decision to sell this unit.

Certain individual life insurance measures have been redefined to provide more meaningful trends and facilitate analysis. Individual life insurance sales, formerly reported based on statutory first year premiums and deposits, now are reported based on scheduled premiums from new sales on an annualized basis and first year excess premiums and deposits on a cash-received basis. Individual life insurance death benefits per $1,000 of in force are now reported on death benefits net of reinsurance recoveries and insurance in force net of face value reinsured.

Revenues, expenses, assets and liabilities as reported herein also reflect certain reclassifications to conform to current reporting practices.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date				% Change			2002		2003
2003		2002		% Change			4Q		1Q		2Q		3Q		4Q
						*Financial Services Businesses:*
						Pre-tax adjusted operating income by division:
788		545		45	%	Insurance Division	137		163		236		183		206
289		282		2	%	Investment Division	35		73		77		83		56
802		751		7	%	International Insurance and Investments Division	176		178		217		223		184
93		160		-42	%	Corporate and other operations	(1	)	18		(1	)	32		44

1,972		1,738		13	%	Total pre-tax adjusted operating income	347		432		529		521		490
641		584		10	%	Income taxes, applicable to adjusted operating income	99		140		172		170		159

1,331		1,154		15	%	Financial Services Businesses after-tax adjusted operating income	248		292		357		351		331


						Items excluded from adjusted operating income:
(199	)	(866	)	77	%	Realized investment losses, net, and related charges and adjustments	(283	)	(113	)	(11	)	(46	)	(29	)
—		(20	)	100	%	Sales practices remedies and costs	(20	)	—		—		—		—
(185	)	(15	)	-1133	%	Divested businesses	(59	)	(4	)	(410	)	(36	)	265

(384	)	(901	)	57	%	Total items excluded from adjusted operating income, before income taxes	(362	)	(117	)	(421	)	(82	)	236
(122	)	(501	)	76	%	Income taxes, applicable to items excluded from adjusted operating income	(120	)	(38	)	(173	)	24		65

(262	)	(400	)	35	%	Total items excluded from adjusted operating income, after income taxes	(242	)	(79	)	(248	)	(106	)	171

1,069		754		42	%	Income from continuing operations (after-tax) of Financial Services Businesses	6		213		109		245		502
(44	)	(75	)	41	%	Income (loss) from discontinued operations, net of taxes	(77	)	(16	)	18		(25	)	(21	)

1,025		679		51	%	Net income (loss) of Financial Services Businesses	(71	)	197		127		220		481


						Earnings per share of Common Stock (diluted):
2.54		2.07				Financial Services Businesses after-tax adjusted operating income	0.46		0.56		0.66		0.68		0.64
						Items excluded from adjusted operating income:
(0.36	)	(1.50	)			Realized investment losses, net, and related charges and adjustments	(0.50	)	(0.20	)	(0.02	)	(0.08	)	(0.06	)
—		(0.03	)			Sales practices remedies and costs	(0.04	)	—		—		—		—
(0.34	)	(0.03	)			Divested businesses	(0.10	)	(0.01	)	(0.74	)	(0.07	)	0.49

(0.70	)	(1.56	)			Total items excluded from adjusted operating income, before income taxes	(0.64	)	(0.21	)	(0.76	)	(0.15	)	0.43
(0.22	)	(0.87	)			Income taxes, applicable to items excluded from adjusted operating income	(0.21	)	(0.07	)	(0.31	)	0.05		0.12

(0.48	)	(0.69	)			Total items excluded from adjusted operating income, after income taxes	(0.43	)	(0.14	)	(0.45	)	(0.20	)	0.31

2.06		1.38				Income from continuing operations (after-tax) of Financial Services Businesses	0.03		0.42		0.21		0.48		0.95
(0.08	)	(0.13	)			Income (loss) from discontinued operations, net of taxes	(0.13	)	(0.03	)	0.04		(0.04	)	(0.03	)

1.98		1.25				Net income (loss) of Financial Services Businesses	(0.10	)	0.39		0.25		0.44		0.92


548.4		578.0				Weighted average number of outstanding Common shares (diluted basis)	565.0		556.5		549.4		545.9		541.9

7.57	%	6.35	%			Operating Return on Average Equity (based on adjusted operating income)	5.59	%	6.74	%	7.96	%	8.06	%	7.51	%

						*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
1,025		679				Net income (loss) of Financial Services Businesses (above)	(71	)	197		127		220		481
239		(485	)			Net income (loss) of Closed Block Business	(122	)	(1	)	69		77		94

1,264		194				Consolidated net income (loss)	(193	)	196		196		297		575

60		43				Direct equity adjustments for earnings per share calculations	13		18		8		19		15

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			2002	2003
2003	2002		4Q	1Q	2Q	3Q	4Q
		*Financial Services Businesses Capitalization Data ⁽¹⁾:*
		Short-term debt	3,469	4,212	5,416	5,117	4,739
		Long-term debt ⁽²⁾	3,007	2,582	2,663	4,330	3,860
		Equity Security Units ⁽²⁾	690	690	690	—	—
		Attributed Equity:
		Including accumulated other comprehensive income	20,562	21,059	21,768	20,541	20,340
		Excluding unrealized gains and losses on investments	18,394	18,388	18,318	18,396	18,440
		Excluding accumulated other comprehensive income	18,621	18,596	18,523	18,564	18,563
		Total Capitalization:
		Including accumulated other comprehensive income	24,259	24,331	25,121	24,871	24,200
		Excluding unrealized gains and losses on investments	22,091	21,660	21,671	22,726	22,300
		Excluding accumulated other comprehensive income	22,318	21,868	21,876	22,894	22,423
		Book value per share of Common Stock:
		Including accumulated other comprehensive income	36.67	38.12	39.83	37.81	37.61
		Excluding unrealized gains and losses on investments	32.80	33.28	33.52	33.86	34.10
		Excluding accumulated other comprehensive income	33.20	33.66	33.89	34.17	34.33
		Number of diluted shares at end of period	560.8	552.5	546.5	543.3	540.8
		*Common Stock Price Range (based on closing price):*
42.19	35.75	High	32.10	33.93	34.50	38.06	42.19
27.56	25.50	Low	25.50	27.56	29.84	34.00	36.60
41.77	31.74	Close	31.74	29.25	33.65	37.36	41.77
		*Common Stock market capitalization ⁽¹⁾*	17,782	16,153	18,405	20,202	22,341

⁽¹⁾	As of end of period.

⁽²⁾

For periods ended on or before June 30, 2003, Equity Security Units represent Guaranteed beneficial interest in Trust holding solely debentures of Parent, as reported in combined balance sheet. Effective for the third quarter of 2003, debt related to the Company’s Equity Security Units is included in Long-term debt.

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

OPERATIONS HIGHLIGHTS


Year-to-date			2002	2003
2003	2002		4Q	1Q	2Q	3Q	4Q
		Assets Under Management and Administration ($ billions) ^(1) (2):
		Assets Under Management :
		Managed by Investment Division:
		Investment Management Segment—Investment Management & Advisory Services
		Retail customers	79.9	78.9	82.5	82.1	81.2
		Institutional customers	85.2	84.2	89.2	89.7	94.8
		General account	122.9	123.6	127.1	130.3	127.8

		Total Investment Management and Advisory Services	288.0	286.7	298.8	302.1	303.8
		Non-proprietary wrap-fee and other assets under management	33.0	32.7	40.7	36.6	40.5

		Total managed by Investment Division	321.0	319.4	339.5	338.7	344.3
		Managed by International Insurance and Investments Division	47.9	47.6	50.0	50.7	53.9
		Managed by Insurance Division	8.8	8.5	32.9	31.4	33.9

		Total assets under management	377.7	375.5	422.4	420.8	432.1
		Client assets under administration ⁽³⁾	177.9	174.4	186.5	30.7	32.6

		Total assets under management and administration	555.6	549.9	608.9	451.5	464.7

		Assets managed or administered for customers outside of the United States at end of period ⁽³⁾	83.6	83.4	89.6	81.0	84.9
		*Distribution Representatives ⁽¹⁾:*
		Prudential Agents	4,389	4,327	4,290	4,281	4,320
		International Life Planners	4,505	4,552	4,689	4,875	4,989
		Gibraltar Life Advisors	5,155	4,993	4,877	4,848	4,826
40	40	*Prudential Agent productivity ($ thousands)*	43	34	39	38	44
		*Third Party Distribution - Retail Products ($ millions) ⁽⁴⁾:*
111	82	Individual life insurance ⁽⁵⁾	26	23	22	17	49
20	120	Corporate-owned life insurance sales	16	4	13	3	—
3,048	132	Individual annuities ⁽⁶⁾	48	58	699	1,125	1,166
6,060	3,652	Mutual funds and wrap-fee products ⁽⁶⁾	1,207	616	783	2,517	2,144

⁽¹⁾	As of end of period.

⁽²⁾	At fair market value.

⁽³⁾

Assets under administration and Assets managed or administered for customers outside of the United States at the end of the period at June 30, 2003 include approximately $155 billion and $8 billion respectively, associated with businesses that were combined into Wachovia Securities, LLC on July 1, 2003. As a result, Prudential Financial, Inc. no longer reports these assets as a component of its assets under management and administration.

⁽⁴⁾	Represents scheduled premiums from new sales on an annualized basis and first year excess premiums and deposits on a cash-received basis for Individual Life Insurance, including corporate-owned life insurance, and gross sales for Individual Annuities, Mutual Funds and Wrap-fee products.

⁽⁵⁾	Excludes corporate-owned life insurance sales.

⁽⁶⁾

Includes, effective July 1, 2003, production through Financial Advisors formerly associated with Prudential Securities, who became associated with Wachovia Securities, LLC as a result of the combination of Prudential's retail securities brokerage operation with Wachovia Securities, LLC as of that date.

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date				% Change			2002		2003
2003		2002		% Change			4Q		1Q		2Q		3Q		4Q
						Revenues ⁽¹⁾:
7,918		7,334		8	%	Premiums	1,961		1,973		1,953		1,950		2,042
2,001		1,780		12	%	Policy charges and fee income	437		458		481		509		553
4,943		5,056		-2	%	Net investment income	1,258		1,252		1,250		1,215		1,226
3,362		4,049		-17	%	Commissions, investment management fees, and other income	968		894		1,059		695		714

18,224		18,219		—		Total revenues	4,624		4,577		4,743		4,369		4,535

						Benefits and Expenses ⁽¹⁾:
8,284		7,793		6	%	Insurance and annuity benefits	2,130		2,107		1,983		2,023		2,171
1,691		1,707		-1	%	Interest credited to policyholders’ account balances	444		418		421		424		428
200		195		3	%	Interest expense	45		42		42		59		57
(1,270	)	(1,064	)	-19	%	Deferral of acquisition costs	(284	)	(285	)	(320	)	(312	)	(353	)
533		739		-28	%	Amortization of acquisition costs	158		160		142		150		81
6,814		7,111		-4	%	General and administrative expenses	1,784		1,703		1,946		1,504		1,661

16,252		16,481		-1	%	Total benefits and expenses	4,277		4,145		4,214		3,848		4,045

1,972		1,738		13	%	Adjusted operating income before income taxes	347		432		529		521		490

						Items excluded from adjusted operating income before income taxes:
(156	)	(872	)	82	%	Realized investment gains (losses), net, and related adjustments	(289	)	(114	)	9		(40	)	(11	)
(43	)	6		-816	%	Related charges	6		1		(20	)	(6	)	(18	)

(199	)	(866	)	77	%	Total realized investment losses, net, and related charges and adjustments	(283	)	(113	)	(11	)	(46	)	(29	)

—		(20	)	100	%	Sales practices remedies and costs	(20	)	—		—		—		—
(185	)	(15	)	-1133	%	Divested businesses	(59	)	(4	)	(410	)	(36	)	265

(384	)	(901	)	57	%	Total items excluded from adjusted operating income before income taxes	(362	)	(117	)	(421	)	(82	)	236

1,588		837		90	%	Income (loss) from continuing operations before income taxes	(15	)	315		108		439		726
519		83		525	%	Income tax expense (benefit)	(21	)	102		(1	)	194		224

1,069		754		42	%	Income from continuing operations, after-tax	6		213		109		245		502

⁽¹⁾

Revenues exclude realized investment gains, net of losses and related adjustments, and revenues of divested businesses and discontinued operations. Benefits and expenses exclude charges related to realized investment gains, net of losses, life insurance sales practices remedies and costs, and benefits and expenses of divested businesses and discontinued operations.

Page 4

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	12/31/2002	3/31/2003	6/30/2003	9/30/2003	12/31/2003
Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $74,665; $76,766; $77,995; $79,964; $79,900)	79,230	82,311	85,283	84,725	84,353
Fixed maturities, held to maturity, at amortized cost (fair value $2,673; $2,859; $2,867; $2,954; $3,084)	2,612	2,772	2,793	2,954	3,068
Trading account assets, at fair value	3,449	3,359	3,831	3,852	3,302
Equity securities, available for sale, at fair value (cost $1,313; $1,101; $991; $950; $1,045)	1,286	1,038	1,044	1,106	1,119
Commercial loans	12,414	12,407	12,210	12,261	12,463
Policy loans	3,146	2,923	2,992	2,732	2,609
Securities purchased under agreements to resell	4,844	5,990	5,424	1,276	1,464
Cash collateral for borrowed securities	4,660	4,429	5,089	—	—
Other long-term investments	4,333	4,476	4,546	4,796	4,568
Short-term investments	3,158	1,671	2,311	3,758	4,052

Total investments	119,132	121,376	125,523	117,460	116,998
Cash and cash equivalents	7,470	7,339	6,743	6,252	5,791
Accrued investment income	1,021	1,095	1,095	1,139	1,046
Broker-dealer related receivables	5,631	5,126	6,425	908	1,098
Deferred policy acquisition costs	5,875	5,926	5,997	6,348	6,605
Other assets	13,486	14,560	16,735	14,558	14,320
Separate account assets	70,555	70,710	99,116	101,841	106,680

Total assets	223,170	226,132	261,634	248,506	252,538

Liabilities:
Future policy benefits	42,213	43,243	43,792	44,608	46,003
Policyholders’ account balances	40,799	41,487	42,345	42,766	44,168
Unpaid claims and claim adjustment expenses	3,428	3,513	3,494	3,201	1,687
Securities sold under agreements to repurchase	10,250	10,907	9,835	5,454	5,196
Cash collateral for loaned securities	7,517	7,300	7,289	3,563	3,571
Income taxes payable	1,910	2,259	2,352	2,019	2,234
Broker-dealer related payables	4,838	4,915	6,099	1,951	2,364
Securities sold but not yet purchased	1,996	2,076	2,220	1,620	1,598
Short-term debt	3,469	4,212	5,416	5,117	4,739
Long-term debt ⁽¹⁾	3,007	2,582	2,663	4,330	3,860
Other liabilities	11,936	11,179	14,555	11,495	10,098
Separate account liabilities	70,555	70,710	99,116	101,841	106,680

Total liabilities	201,918	204,383	239,176	227,965	232,198

Guaranteed beneficial interest in Trust holding solely debentures of Parent ⁽¹⁾	690	690	690	—	—
Attributed Equity:
Accumulated other comprehensive income	1,941	2,463	3,245	1,977	1,777
Other attributed equity	18,621	18,596	18,523	18,564	18,563

Total attributed equity	20,562	21,059	21,768	20,541	20,340

Total liabilities and attributed equity	223,170	226,132	261,634	248,506	252,538

⁽¹⁾	Effective September 30, 2003, Long-term debt includes the debt related to the Company’s Equity Security Units which was previously included in Guaranteed beneficial interest in Trust holding solely debentures of Parent.

Page 5

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended December 31, 2003
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues ⁽¹⁾ :
Premiums	2,042		797		6		1,236		3
Policy charges and fee income	553		479		18		60		(4	)
Net investment income	1,226		371		526		189		140
Commissions, investment management fees, and other income	714		145		494		64		11

Total revenues	4,535		1,792		1,044		1,549		150

Benefits and Expenses ⁽¹⁾:
Insurance and annuity benefits	2,171		1,033		190		949		(1	)
Interest credited to policyholders’ account balances	428		160		238		30		—
Interest expense	57		(1	)	8		1		49
Deferral of acquisition costs	(353	)	(173	)	(8	)	(186	)	14
Amortization of acquisition costs	81		11		15		70		(15	)
General and administrative expenses	1,661		556		545		501		59

Total benefits and expenses	4,045		1,586		988		1,365		106

Adjusted operating income before income taxes	490		206		56		184		44


	Quarter Ended December 31, 2002
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues ⁽¹⁾:
Premiums	1,961		869		38		1,054		—
Policy charges and fee income	437		377		18		52		(10	)
Net investment income	1,258		367		568		185		138
Commissions, investment management fees, and other income	968		51		863		79		(25	)

Total revenues	4,624		1,664		1,487		1,370		103

Benefits and Expenses ⁽¹⁾:
Insurance and annuity benefits	2,130		989		232		866		43
Interest credited to policyholders’ account balances	444		170		250		24		—
Interest expense	45		2		7		1		35
Deferral of acquisition costs	(284	)	(116	)	(8	)	(170	)	10
Amortization of acquisition costs	158		94		23		60		(19	)
General and administrative expenses	1,784		388		948		413		35

Total benefits and expenses	4,277		1,527		1,452		1,194		104

Adjusted operating income before income taxes	347		137		35		176		(1	)

⁽¹⁾

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Twelve Months Ended December 31, 2003
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues ⁽¹⁾ :
Premiums	7,918		3,222		29		4,676		(9	)
Policy charges and fee income	2,001		1,717		72		226		(14	)
Net investment income	4,943		1,446		2,151		799		547
Commissions, investment management fees, and other income	3,362		387		2,695		310		(30	)

Total revenues	18,224		6,772		4,947		6,011		494

Benefits and Expenses⁽¹⁾:
Insurance and annuity benefits	8,284		3,798		791		3,614		81
Interest credited to policyholders’ account balances	1,691		636		946		109		—
Interest expense	200		—		33		3		164
Deferral of acquisition costs	(1,270	)	(595	)	(29	)	(695	)	49
Amortization of acquisition costs	533		245		66		284		(62	)
General and administrative expenses	6,814		1,900		2,851		1,894		169

Total benefits and expenses	16,252		5,984		4,658		5,209		401

Adjusted operating income before income taxes	1,972		788		289		802		93


	Twelve Months Ended December 31, 2002
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues ⁽¹⁾:
Premiums	7,334		3,123		77		4,137		(3	)
Policy charges and fee income	1,780		1,524		71		204		(19	)
Net investment income	5,056		1,419		2,298		719		620
Commissions, investment management fees, and other income	4,049		216		3,675		338		(180	)

Total revenues	18,219		6,282		6,121		5,398		418

Benefits and Expenses ⁽¹⁾:
Insurance and annuity benefits	7,793		3,534		880		3,278		101
Interest credited to policyholders’ account balances	1,707		633		978		96		—
Interest expense	195		3		30		1		161
Deferral of acquisition costs	(1,064	)	(452	)	(44	)	(630	)	62
Amortization of acquisition costs	739		498		92		234		(85	)
General and administrative expenses	7,111		1,521		3,903		1,668		19

Total benefits and expenses	16,481		5,737		5,839		4,647		258

Adjusted operating income before income taxes	1,738		545		282		751		160

⁽¹⁾

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of December 31, 2003
	Total Financial Services Businesses	Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	116,998	27,048	38,002	41,015	10,933
Broker-dealer related receivables	1,098	—	32	945	121
Deferred policy acquisition costs	6,605	3,918	23	2,769	(105	)
Other assets	21,157	3,211	8,121	5,102	4,723
Separate account assets	106,680	64,034	43,019	649	(1,022	)

Total assets	252,538	98,211	89,197	50,480	14,650

Liabilities:
Future policy benefits	46,003	5,008	12,937	27,613	445
Policyholders’ account balances	44,168	15,863	17,632	10,673	—
Debt ⁽¹⁾	8,599	437	2,645	528	4,989
Other liabilities	26,748	6,539	8,599	7,409	4,201
Separate account liabilities	106,680	64,034	43,019	649	(1,022	)

Total liabilities	232,198	91,881	84,832	46,872	8,613

Guaranteed beneficial interest in Trust holding solely debentures of Parent ⁽¹⁾	—	—	—	—	—

Attributed Equity:
Accumulated other comprehensive income	1,777	632	587	415	143
Other attributed equity	18,563	5,698	3,778	3,193	5,894

Total attributed equity	20,340	6,330	4,365	3,608	6,037

Total liabilities and attributed equity	252,538	98,211	89,197	50,480	14,650


	As of December 31, 2002
	Total Financial Services Businesses	Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	119,132	25,098	43,919	36,358	13,757
Broker-dealer related receivables	5,631	—	4,516	399	716
Deferred policy acquisition costs	5,875	3,640	28	2,158	49
Other assets	21,977	2,988	7,863	4,141	6,985
Separate account assets	70,555	31,175	39,715	499	(834	)

Total assets	223,170	62,901	96,041	43,555	20,673

Liabilities:
Future policy benefits	42,213	4,634	12,835	23,624	1,120
Policyholders’ account balances	40,799	14,947	16,252	9,598	2
Debt ⁽¹⁾	6,476	—	3,222	849	2,405
Other liabilities	41,875	6,656	20,302	5,479	9,438
Separate account liabilities	70,555	31,175	39,715	499	(834	)

Total liabilities	201,918	57,412	92,326	40,049	12,131

Guaranteed beneficial interest in Trust holding solely debentures of Parent ⁽¹⁾	690	—	—	—	690

Attributed Equity:
Accumulated other comprehensive income	1,941	885	587	480	(11	)
Other attributed equity	18,621	4,604	3,128	3,026	7,863

Total attributed equity	20,562	5,489	3,715	3,506	7,852

Total liabilities and attributed equity	223,170	62,901	96,041	43,555	20,673

⁽¹⁾	Effective September 30, 2003, Long-term debt includes the debt related to the Company’s Equity Security Units which was previously included in Guaranteed beneficial interest in Trust holding solely debentures of Parent.

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

SHORT TERM DEBT - FINANCIAL SERVICES BUSINESSES

(in millions)


	As of December 31, 2003				As of December 31, 2002
	Prudential Financial, Inc.	The Prudential Insurance Co. of America ⁽¹⁾	Other Affiliates	Total	Prudential Financial, Inc.	The Prudential Insurance Co. of America ⁽¹⁾	Other Affiliates	Total
Borrowings by use of proceeds:
General corporate purposes	—	5	—	5	—	306	—	306
Investment related	167	386	—	553	—	154	—	154
Securities business related	155	1,872	882	2,909	—	959	1,256	2,215
Specified other businesses	90	1,052	129	1,271	—	514	279	793
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1

Total short-term debt	412	3,315	1,012	4,739	—	1,933	1,536	3,469

Borrowings by type:
Long-term debt due within one year	—	453	—	453	—	637	—	637
Commercial paper	412	2,846	—	3,258	—	1,265	—	1,265
Bank borrowings	—	—	535	535	—	—	913	913
Other short-term debt	—	16	476	492	—	31	622	653

Total general obligations	412	3,315	1,011	4,738	—	1,933	1,535	3,468
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1

Total short-term debt	412	3,315	1,012	4,739	—	1,933	1,536	3,469

⁽¹⁾	Includes Prudential Funding, LLC.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

LONG TERM DEBT

(in millions)


	As of December 31, 2003
	General Corporate Purposes		Investment Related	Securities Business Related	Specified Other Businesses	Total General Obligations	Limited Recourse and non- Recourse	Total Borrowing
Financial Services Businesses:
Prudential Financial, Inc. ⁽¹⁾:
Long-term fixed and floating rate notes	670		681	—	141	1,492	—	1,492
Hybrid notes	—		—	—	—	—	—	—

Total	670		681	—	141	1,492	—	1,492

The Prudential Insurance Company of America ⁽²⁾:
Surplus notes	691		—	—	—	691	—	691
Long-term fixed and floating rate notes	600		291	—	—	891	—	891
Commercial paper backed by long-term credit agreements	—		—	—	—	—	—	—

Total	1,291		291	—	—	1,582	—	1,582

Long-term debt of other affiliated companies	—		17	—	—	17	58	75

Total long-term debt of Financial Services Businesses, excluding debt related to Equity Security Units	1,961		989	—	141	3,091	58	3,149
Debt related to Equity Security Units ⁽³⁾	711		—	—	—	711	—	711

Total long-term debt of Financial Services Businesses	2,672		989	—	141	3,802	58	3,860

Ratio of long-term and short-term corporate debt to capitalization	10.0	%

Closed Block Business:
Limited recourse notes of Prudential Holdings, LLC	—		—	—	—	—	1,750	1,750


	As of December 31, 2002
	General Corporate Purposes		Investment Related	Securities Business Related	Specified Other Businesses	Total General Obligations	Limited Recourse and non- Recourse	Total Borrowing
Financial Services Businesses:
Prudential Financial, Inc.:
Long-term fixed and floating rate notes	—		—	—	—	—	—	—
Hybrid notes	—		—	—	—	—	—	—

Total	—		—	—	—	—	—	—

The Prudential Insurance Company of America ⁽²⁾:
Surplus notes	690		—	—	—	690	—	690
Long-term fixed and floating rate notes	600		745	399	—	1,744	—	1,744
Commercial paper backed by long-term credit agreements	—		—	—	—	—	—	—

Total	1,290		745	399	—	2,434	—	2,434

Long-term debt of other affiliated companies	—		—	—	—	—	573	573

Total long-term debt of Financial Services Businesses	1,290		745	399	—	2,434	573	3,007

Ratio of long-term and short-term corporate debt to capitalization	8.4	%

Closed Block Business:
Limited recourse notes of Prudential Holdings, LLC	—		—	—	—	—	1,750	1,750

⁽¹⁾	Excluding obligations related to Equity Security Units.

⁽²⁾	Includes Prudential Funding, LLC.

⁽³⁾

Effective September 30, 2003, Long-term debt includes the debt related to the Company’s Equity Security Units which was previously included in “Guaranteed beneficial interest in Trust holding solely debentures of Parent”. Includes $690 million corresponding to contractual obligation of holders of Equity Security Units for purchase of Prudential Financial, Inc. Common Stock in November 2004.

Page 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


Year-to-Date			% Change			2002		2003
2003	2002		% Change			4Q		1Q		2Q		3Q		4Q
					Revenues ⁽¹⁾:
3,222	3,123		3	%	Premiums	869		824		822		779		797
1,717	1,524		13	%	Policy charges and fee income	377		389		408		441		479
1,446	1,419		2	%	Net investment income	367		360		366		349		371
387	216		79	%	Commissions, investment management fees, and other income	51		53		81		108		145

6,772	6,282		8	%	Total revenues	1,664		1,626		1,677		1,677		1,792

					Benefits and Expenses⁽¹⁾:
3,798	3,534		7	%	Insurance and annuity benefits	989		956		891		918		1,033
636	633		—		Interest credited to policyholders’ account balances	170		157		161		158		160
—	3		-100	%	Interest expense	2		—		—		1		(1	)
(595)	(452	)	-32	%	Deferral of acquisition costs	(116	)	(112	)	(149	)	(161	)	(173	)
245	498		-51	%	Amortization of acquisition costs	94		85		69		80		11
1,900	1,521		25	%	General and administrative expenses	388		377		469		498		556

5,984	5,737		4	%	Total benefits and expenses	1,527		1,463		1,441		1,494		1,586

788	545		45	%	Adjusted operating income before income taxes	137		163		236		183		206

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

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Quarter Ended December 31, 2003
							Individual Life and Annuities
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life		Individual Annuities
Revenues ⁽¹⁾:
Premiums	797		98		699		85		13
Policy charges and fee income	479		401		78		258		143
Net investment income	371		227		144		106		121
Commissions, investment management fees, and other income	145		131		14		59		72

Total revenues	1,792		857		935		508		349

Benefits and Expenses⁽¹⁾:
Insurance and annuity benefits	1,033		323		710		246		77
Interest credited to policyholders’ account balances	160		111		49		39		72
Interest expense	(1	)	(1	)	—		(1	)	—
Deferral of acquisition costs	(173	)	(165	)	(8	)	(75	)	(90	)
Amortization of acquisition costs	11		10		1		23		(13	)
General and administrative expenses ⁽²⁾	556		420		136		213		207

Total benefits and expenses	1,586		698		888		445		253

Adjusted operating income before income taxes	206		159		47		63		96


	Quarter Ended December 31, 2002
							Individual Life and Annuities
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life		Individual Annuities
Revenues ⁽¹⁾:
Premiums	869		180		689		165		15
Policy charges and fee income	377		310		67		264		46
Net investment income	367		217		150		109		108
Commissions, investment management fees, and other income	51		44		7		30		14

Total revenues	1,664		751		913		568		183

Benefits and Expenses ⁽¹⁾:
Insurance and annuity benefits	989		320		669		283		37
Interest credited to policyholders' account balances	170		106		64		37		69
Interest expense	2		1		1		—		1
Deferral of acquisition costs	(116	)	(104	)	(12	)	(79	)	(25	)
Amortization of acquisition costs	94		94		—		71		23
General and administrative expenses	388		249		139		186		63

Total benefits and expenses	1,527		666		861		498		168

Adjusted operating income before income taxes	137		85		52		70		15

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

⁽²⁾	General and administrative expenses for Individual Annuities include $14 million for the quarter ended December 31, 2003 for the amortization, net of interest, of value of business acquired (VOBA) associated with the May 1, 2003 acquisition of American Skandia.

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Twelve Months Ended December 31, 2003
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life		Individual Annuities
Revenues ⁽¹⁾:
Premiums	3,222		416		2,806		352		64
Policy charges and fee income	1,717		1,455		262		1,025		430
Net investment income	1,446		861		585		408		453
Commissions, investment management fees, and other income	387		350		37		151		199

Total revenues	6,772		3,082		3,690		1,936		1,146

Benefits and Expenses ⁽¹⁾:
Insurance and annuity benefits	3,798		1,001		2,797		790		211
Interest credited to policyholders’ account balances	636		420		216		152		268
Interest expense	—		(2	)	2		(3	)	1
Deferral of acquisition costs	(595	)	(561	)	(34	)	(294	)	(267	)
Amortization of acquisition costs	245		242		3		195		47
General and administrative expenses ⁽²⁾	1,900		1,363		537		739		624

Total benefits and expenses	5,984		2,463		3,521		1,579		884

Adjusted operating income before income taxes	788		619		169		357		262


	Twelve Months Ended December 31, 2002
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life		Individual Annuities
Revenues ⁽¹⁾:
Premiums	3,123		454		2,669		395		59
Policy charges and fee income	1,524		1,220		304		1,014		206
Net investment income	1,419		837		582		419		418
Commissions, investment management fees, and other income	216		185		31		124		61

Total revenues	6,282		2,696		3,586		1,952		744

Benefits and Expenses ⁽¹⁾:
Insurance and annuity benefits	3,534		831		2,703		692		139
Interest credited to policyholders’’ account balances	633		398		235		143		255
Interest expense	3		1		2		(1	)	2
Deferral of acquisition costs	(452	)	(423	)	(29	)	(301	)	(122	)
Amortization of acquisition costs	498		500		(2	)	279		221
General and administrative expenses	1,521		999		522		708		291

Total benefits and expenses	5,737		2,306		3,431		1,520		786

Adjusted operating income before income taxes	545		390		155		432		(42	)

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

⁽²⁾	General and administrative expenses for Individual Annuities include $38 million for the twelve months ended December 31, 2003 for the amortization, net of interest, of value of business acquired (VOBA) associated with the May 1, 2003 acquisition of American Skandia.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

INSURANCE DIVISION - INDIVIDUAL LIFE AND ANNUITIES SALES RESULTS AND ACCOUNT VALUES

(in millions)


Year-to-date				2002		2003
2003	2002			4Q		1Q		2Q		3Q		4Q
			INDIVIDUAL LIFE INSURANCE SALES ⁽¹⁾:
			Excluding corporate-owned life insurance:
99	145		Variable life	31		26		26		20		27
132	86		Universal life	30		29		25		24		54
110	89		Term life	26		26		29		26		29

341	320		Total excluding corporate-owned life insurance	87		81		80		70		110
21	122		Corporate-owned life insurance	16		4		13		3		1

362	442		Total	103		85		93		73		111

			ANNUITY SALES AND ACCOUNT VALUES
			Variable Annuities:
15,338	18,689		Beginning total account value	14,961		15,338		14,965		39,780		40,815
4,418	1,395		Sales	276		331		1,070		1,469		1,548
(3,939)	(2,267	)	Surrenders and withdrawals	(497	)	(473	)	(987	)	(1,208	)	(1,271	)
5,701	(2,479	)	Change in market value, interest credited, and other activity	598		(231	)	2,301		774		2,857
22,431	—		Acquisition	—		—		22,431		—		—

43,949	15,338		Ending total account value	15,338		14,965		39,780		40,815		43,949

479	(872	)	Net sales (redemptions)	(221	)	(142	)	83		261		277

			Fixed Annuities:
3,396	2,975		Beginning total account value	3,260		3,396		3,473		3,498		3,523
247	605		Sales	163		110		57		47		33
(200)	(184	)	Surrenders and withdrawals	(47	)	(49	)	(51	)	(46	)	(54	)
71	—		Interest credited and other activity	20		16		19		24		12

3,514	3,396		Ending account value	3,396		3,473		3,498		3,523		3,514

47	421		Net sales (redemptions)	116		61		6		1		(21	)

			SALES BY DISTRIBUTION CHANNEL
			Life Insurance ⁽¹⁾:
			Excluding corporate-owned life insurance:
230	238		Prudential Agents	61		58		58		53		61
111	82		Third party distribution	26		23		22		17		49
21	122		Corporate-owned life insurance	16		4		13		3		1

362	442		Total	103		85		93		73		111

			Variable and Fixed Annuities ⁽²⁾:
1,512	1,449		Prudential Agents	315		326		380		391		415
392	472		Wirehouses	101		79		109		115		89
2,761	79		Independent Financial Planners ⁽³⁾	23		36		638		1,010		1,077

4,665	2,000		Total	439		441		1,127		1,516		1,581

⁽¹⁾	See definition of Individual Life Insurance Sales on Page 47.

⁽²⁾	Amounts represent gross sales.

⁽³⁾	Including bank distribution.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

INSURANCE DIVISION - INDIVIDUAL LIFE AND ANNUITIES SEGMENT ACCOUNT VALUE ACTIVITY

(in millions)


Year-to-date					2002		2003
2003		2002			4Q		1Q		2Q		3Q		4Q
				INDIVIDUAL LIFE INSURANCE:
				Policyholders’ Account Balances:
4,112		3,826		Beginning balance	4,033		4,112		4,205		4,275		4,373
1,015		902		Premiums and deposits	226		249		237		248		281
100		92		Interest credited	24		23		26		25		26
(549	)	(567	)	Surrenders and withdrawals	(137	)	(122	)	(143	)	(137	)	(147	)
—		29		Net transfers (to) from separate account	(4	)	(7	)	(2	)	(1	)	10
(112	)	(78	)	Policy charges	(19	)	(25	)	(29	)	(26	)	(32	)
(46	)	(92	)	Benefits and other	(11	)	(25	)	(19	)	(11	)	9

4,520		4,112		Ending balance	4,112		4,205		4,275		4,373		4,520

				Separate Account Liabilities:
11,412		13,010		Beginning balance	10,702		11,412		11,235		12,511		12,843
1,434		1,857		Premiums and deposits	563		373		379		354		328
2,678		(1,747	)	Change in market value and interest credited	624		(154	)	1,311		340		1,181
(600	)	(710	)	Surrenders and withdrawals	(245	)	(157	)	(177	)	(132	)	(134	)
(102	)	(133	)	Net transfers to general account	(14	)	(29	)	(23	)	(21	)	(29	)
(819	)	(830	)	Policy charges	(209	)	(205	)	(206	)	(204	)	(204	)
(22	)	(35	)	Benefits and other	(9	)	(5	)	(8	)	(5	)	(4	)

13,981		11,412		Ending balance	11,412		11,235		12,511		12,843		13,981

				INDIVIDUAL ANNUITIES:
				Account Values in General Account ⁽¹⁾:
6,795		6,152		Beginning balance	6,533		6,795		7,073		7,457		7,614
1,088		1,295		Premiums and deposits	292		270		330		268		220
307		300		Interest credited	80		72		77		80		78
(521	)	(508	)	Surrenders and withdrawals	(127	)	(129	)	(123	)	(130	)	(139	)
(20	)	(188	)	Net transfers (to) from separate account	52		100		(15	)	(52	)	(53	)
(8	)	(7	)	Policy charges	(2	)	(2	)	(2	)	(2	)	(2	)
(139	)	(249	)	Benefits and other	(33	)	(33	)	(41	)	(7	)	(58	)
158		—		Acquisition	—		—		158		—		—

7,660		6,795		Ending balance	6,795		7,073		7,457		7,614		7,660

				Account Values in Separate Account:
11,939		15,512		Beginning balance	11,688		11,939		11,365		35,821		36,724
3,577		705		Premiums and deposits	147		171		797		1,248		1,361
6,216		(2,340	)	Change in market value and interest credited	614		(213	)	2,434		934		3,061
(3,618	)	(1,943	)	Surrenders and withdrawals	(417	)	(393	)	(915	)	(1,124	)	(1,186	)
20		188		Net transfers (to) from general account	(52	)	(100	)	15		52		53
(398	)	(183	)	Policy charges	(41	)	(39	)	(94	)	(128	)	(137	)
(206	)	—		Benefits and other	—		—		(54	)	(79	)	(73	)
22,273		—		Acquisition	—		—		22,273		—		—

39,803		11,939		Ending balance	11,939		11,365		35,821		36,724		39,803

⁽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

Fourth Quarter 2003

INSURANCE DIVISION – DEFERRED POLICY ACQUISITION COSTS

(in millions)


Year-to-date					2002		2003
2003		2002			4Q		1Q		2Q		3Q		4Q
				INDIVIDUAL LIFE INSURANCE:
3,110		3,133		Beginning balance	3,111		3,110		3,104		3,102		3,131
294		301		Capitalization	79		77		74		68		75
(195	)	(279	)	Amortization – operating results	(71	)	(67	)	(49	)	(56	)	(23	)
—		—		Amortization – realized investment gains and losses	—		—		—		—		—
(15	)	(45	)	Impact of unrealized (gains) or losses on AFS securities	(9	)	(16	)	(27	)	17		11

3,194		3,110		Ending balance	3,110		3,104		3,102		3,131		3,194

				INDIVIDUAL ANNUITIES:
473		628		Beginning balance	485		473		471		471		522
267		122		Capitalization	25		27		65		85		90
(47	)	(221	)	Amortization – operating results	(23	)	(17	)	(20	)	(23	)	13
(11	)	15		Amortization – realized investment gains and losses	10		(2	)	(1	)	(3	)	(5	)
(46	)	(71	)	Impact of unrealized (gains) or losses on AFS securities	(24	)	(10	)	(44	)	(8	)	16

636		473		Ending balance	473		471		471		522		636

				GROUP INSURANCE ⁽¹⁾:
57		26		Beginning balance	45		57		64		74		81
34		29		Capitalization	12		8		10		8		8
(3	)	2		Amortization – operating results	—		(1	)	—		(1	)	(1	)
—		—		Amortization – realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

88		57		Ending balance	57		64		74		81		88

				TOTAL INSURANCE DIVISION:
3,640		3,787		Beginning balance	3,641		3,640		3,639		3,647		3,734
595		452		Capitalization	116		112		149		161		173
(245	)	(498	)	Amortization – operating results	(94	)	(85	)	(69	)	(80	)	(11	)
(11	)	15		Amortization – realized investment gains and losses	10		(2	)	(1	)	(3	)	(5	)
(61	)	(116	)	Impact of unrealized (gains) or losses on AFS securities	(33	)	(26	)	(71	)	9		27

3,918		3,640		Ending balance	3,640		3,639		3,647		3,734		3,918


⁽¹⁾Represents long-term care products.

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

INSURANCE DIVISION- SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


Year-to-date					2002		2003
2003		2002			4Q		1Q		2Q		3Q		4Q
				Individual Life Insurance:
				Policy Surrender Experience:
653		692		Cash value of surrenders	197		170		182		154		147
3.8	%	4.2	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	5.0	%	4.2	%	4.4	%	3.5	%	3.2	%
				Death benefits per $1,000 of in force⁽¹⁾:
3.02		2.41		Variable and universal life	3.63		2.43		2.74		2.40		4.57
2.49		1.63		Term life	2.65		1.80		0.90		4.16		1.65
3.01		2.33		Total, Individual Life Insurance	3.50		2.40		2.53		3.10		3.94

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

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


Year-to-date					2002		2003
2003		2002			4Q		1Q		2Q		3Q		4Q
				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
225		269		Group life	44		88		35		30		72
144		160		Group disability ⁽¹⁾	49		67		29		24		24

369		429		Total	93		155		64		54		96

				Future Policy Benefits ⁽²⁾:
				Group life	1,742		1,754		1,730		1,656		1,832
				Group disability ⁽¹⁾	151		191		201		217		224

				Total	1,893		1,945		1,931		1,873		2,056

				Policyholders’ Account Balances ⁽²⁾:
				Group life	4,684		4,471		4,729		4,499		4,341
				Group disability ⁽¹⁾	67		61		60		61		66

				Total	4,751		4,532		4,789		4,560		4,407

				Separate Account Liabilities ⁽²⁾:
				Group life	7,824		8,977		9,994		9,970		10,253
				Group disability ⁽¹⁾	—		—		—		—		—

				Total	7,824		8,977		9,994		9,970		10,253

				Group Life Insurance:
2,542		2,662		Gross premiums, policy charges and fee income ⁽³⁾	677		691		636		603		612
2,426		2,388		Earned premiums, policy charges and fee income	607		638		591		577		620
90.9	%	91.7	%	Benefits ratio	88.8	%	91.9	%	89.9	%	91.2	%	90.5	%
9.7	%	10.0	%	Administrative operating expense ratio	9.9	%	9.1	%	9.1	%	10.0	%	10.6	%
				Persistency ratio	94.5	%	96.4	%	95.6	%	93.7	%	92.8	%
				Group Disability Insurance ⁽¹⁾:
662		604		Gross premiums, policy charges and fee income ⁽³⁾	152		171		161		165		165
642		585		Earned premiums, policy charges and fee income	149		164		162		159		157
92.4	%	87.9	%	Benefits ratio	87.3	%	93.9	%	87.0	%	93.1	%	95.5	%
22.5	%	22.0	%	Administrative operating expense ratio	21.1	%	20.5	%	23.0	%	22.4	%	24.2	%
				Persistency ratio	86.8	%	92.1	%	89.2	%	87.5	%	85.0	%

⁽¹⁾	Group disability amounts include long-term care products.

⁽²⁾	As of end of period.

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

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year-to-date				% Change			2002		2003
2003		2002		% Change			4Q		1Q		2Q		3Q		4Q
						Revenues ⁽¹⁾:
29		77		-62	%	Premiums	38		14		8		1		6
72		71		1	%	Policy charges and fee income	18		18		19		17		18
2,151		2,298		-6	%	Net investment income	568		556		553		516		526
2,695		3,675		-27	%	Commissions, investment management fees, and other income	863		814		906		481		494

4,947		6,121		-19	%	Total revenues	1,487		1,402		1,486		1,015		1,044

						Benefits and Expenses ⁽¹⁾:
791		880		-10	%	Insurance and annuity benefits	232		210		204		187		190
946		978		-3	%	Interest credited to policyholders’ account balances	250		236		233		239		238
33		30		10	%	Interest expense	7		8		8		9		8
(29	)	(44	)	34	%	Deferral of acquisition costs	(8	)	(7	)	(8	)	(6	)	(8	)
66		92		-28	%	Amortization of acquisition costs	23		19		17		15		15
2,851		3,903		-27	%	General and administrative expenses	948		863		955		488		545

4,658		5,839		-20	%	Total benefits and expenses	1,452		1,329		1,409		932		988

289		282		2	%	Adjusted operating income before income taxes	35		73		77		83		56

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

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Quarter Ended December 31, 2003
	Total Investment Division		Investment Management		Financial Advisory		Retirement		Other Asset Management
Revenues ⁽¹⁾:
Premiums	6		—		—		6		—
Policy charges and fee income	18		—		—		18		—
Net investment income	526		6		—		513		7
Commissions, investment management fees, and other income	494		342		89		39		24

Total revenues	1,044		348		89		576		31

Benefits and Expenses ⁽¹⁾:
Insurance and annuity benefits	190		—		—		190		—
Interest credited to policyholders' account balances	238		—		—		238		—
Interest expense	8		1		—		5		2
Deferral of acquisition costs	(8	)	(4	)	—		(4	)	—
Amortization of acquisition costs	15		12		—		3		—
General and administrative expenses	545		286		156		89		14

Total benefits and expenses	988		295		156		521		16

Adjusted operating income before income taxes	56		53		(67	)	55		15


	Quarter Ended December 31, 2002
	Total Investment Division		Investment Management		Financial Advisory		Retirement		Other Asset Management
Revenues ⁽¹⁾:
Premiums	38		—		—		38		—
Policy charges and fee income	18		—		—		18		—
Net investment income	568		10		33		520		5
Commissions, investment management fees, and other income	863		299		521		32		11

Total revenues	1,487		309		554		608		16

Benefits and Expenses⁽¹⁾:
Insurance and annuity benefits	232		—		—		232		—
Interest credited to policyholders’ account balances	250		—		—		250		—
Interest expense	7		—		—		4		3
Deferral of acquisition costs	(8	)	(5	)	—		(3	)	—
Amortization of acquisition costs	23		16		—		7		—
General and administrative expenses	948		271		583		85		9

Total benefits and expenses	1,452		282		583		575		12

Adjusted operating income before income taxes	35		27		(29	)	33		4

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Twelve Months Ended December 31, 2003
	Total Investment Division		Investment Management		Financial Advisory		Retirement		Other Asset Management
Revenues ⁽¹⁾:
Premiums	29		—		—		29		—
Policy charges and fee income	72		—		—		72		—
Net investment income	2,151		29		53		2,043		26
Commissions, investment management fees, and other income	2,695		1,230		1,253		137		75

Total revenues	4,947		1,259		1,306		2,281		101

Benefits and Expenses ⁽¹⁾:
Insurance and annuity benefits	791		—		—		791		—
Interest credited to policyholders’ account balances	946		—		—		946		—
Interest expense	33		4		—		17		12
Deferral of acquisition costs	(29	)	(18	)	—		(11	)	—
Amortization of acquisition costs	66		54		—		12		—
General and administrative expenses	2,851		1,057		1,417		334		43

Total benefits and expenses	4,658		1,097		1,417		2,089		55

Adjusted operating income before income taxes	289		162		(111	)	192		46


	Twelve Months Ended December 31, 2002
	Total Investment Division		Investment Management		Financial Advisory		Retirement		Other Asset Management
Revenues ⁽¹⁾:
Premiums	77		—		—		77		—
Policy charges and fee income	71		—		—		71		—
Net investment income	2,298		30		148		2,090		30
Commissions, investment management fees, and other income	3,675		1,205		2,273		137		60

Total revenues	6,121		1,235		2,421		2,375		90

Benefits and Expenses ⁽¹⁾:
Insurance and annuity benefits	880		—		—		880		—
Interest credited to policyholders’ account balances	978		—		—		978		—
Interest expense	30		4		—		18		8
Deferral of acquisition costs	(44	)	(32	)	—		(12	)	—
Amortization of acquisition costs	92		72		—		20		—
General and administrative expenses	3,903		1,052		2,464		350		37

Total benefits and expenses	5,839		1,096		2,464		2,234		45

Adjusted operating income before income taxes	282		139		(43	)	141		45

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

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

INVESTMENT DIVISION - SUPPLEMENTARY REVENUE INFORMATION FOR INVESTMENT MANAGEMENT SEGMENT

(dollar amounts in millions unless otherwise noted)


Year-to-date		% Change			2002	2003
2003	2002	% Change			4Q	1Q	2Q	3Q	4Q
				Investment Management Segment:
				Analysis of revenues by source:
				Investment Management and Advisory Services:
187	184	2	%	Retail customers	44	43	45	50	49
372	335	11	%	Institutional customers	85	79	87	92	114
219	221	-1	%	General account	59	55	50	56	58

778	740	5	%	Subtotal	188	177	182	198	221
481	495	-3	%	Mutual Fund revenues ⁽¹⁾	121	108	121	125	127

1,259	1,235	2	%	Total Investment Management segment revenues	309	285	303	323	348

				Analysis of commissions, investment management fees and other revenues by type:
				Investment Management and Advisory Services:
682	681	—		Asset-based fees	167	165	162	173	182
68	31	119	%	Transaction-based and other revenues	11	5	14	16	33

750	712	5	%	Subtotal	178	170	176	189	215
480	493	-3	%	Mutual Fund revenues ⁽¹⁾	121	108	120	125	127

1,230	1,205	2	%	Total	299	278	296	314	342

⁽¹⁾	Represents mutual fund revenues other than asset management fees paid to affiliates, which are included in appropriate categories above.

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

INVESTMENT DIVISION – SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)


	2003		2003
	3Q		4Q
Information pertaining to Wachovia Securities, LLC:
Revenues:
Net investment income	53		67
Commissions	612		618
Fees	351		364
Other non-interest revenues	59		32

Total revenues	1,075		1,081
Expenses:
Expenses before transition costs	939		948
Transition costs	41		43

Total expenses	980		991

Income before income taxes	95		90

Prudential Financial, Inc., 38% share of Wachovia Securities, LLC	36		34
Wachovia Securities, LLC adjustments to Prudential Financial, Inc. minority interest	2		8

Prudential Financial, Inc., minority interest as reported by Wachovia Securities, LLC	38		42
Prudential Financial, Inc., purchase accounting adjustments	(7	)	(17	)

Prudential Financial, Inc., equity income from Wachovia Securities, LLC	31		25

Recurring revenue as a percentage of total non-interest revenue (1)	38.2	%	38.0	%
Total client assets ($ in billions) (2)	568.5		603.1
Distribution representatives (2):
Series 7 Financial Advisors	8,309		8,192
Series 6 Financial Representatives	3,316		3,270
Average customer debit balances ($ in billions)	5.8		6.1
Prudential Financial, Inc. income (loss) from investment in Wachovia Securities, LLC, including 38% interest in results, costs incurred at Prudential level, and purchase accounting adjustments	4		(64	)

(1)	Calculated on year-to-date basis for July through the reporting date.

(2)	As of end of period.

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

INVESTMENT DIVISION –ASSETS UNDER MANAGEMENT FOR INVESTMENT MANAGEMENT AND ADVISORY SERVICES OPERATIONS

(in billions)


					December 31, 2003
							Fixed		Real
					Equity		Income		Estate		Total

				Retail customers	42.5		37.7		1.0		81.2
				Institutional customers	31.2		50.8		12.8		94.8
				General account	2.9		123.8		1.1		127.8

				Total	76.6		212.3		14.9		303.8


					December 31, 2002
							Fixed		Real
					Equity		Income		Estate		Total

				Retail customers	33.2		46.5		0.2		79.9
				Institutional customers	24.4		47.2		13.6		85.2
				General account	2.7		118.8		1.4		122.9

				Total	60.3		212.5		15.2		288.0


Year-to-date					2002		2003
2003		2002			4Q		1Q		2Q		3Q		4Q
				Institutional Assets Under Management (1):
				Assets gathered by Investment Management & Advisory Services sales force (2):
62.0		67.9		Beginning assets under management	56.9		62.0		60.8		64.4		65.6
13.2		16.0		Additions to managed portfolio	7.2		2.6		2.1		3.1		5.4
(12.7	)	(18.3	)	Withdrawals	(4.3	)	(3.1	)	(2.6	)	(3.1	)	(3.9	)
8.1		(2.6	)	Change in market value	1.7		—		4.2		1.3		2.6
(1.3	)	3.0		Net money market flows	0.5		(0.7	)	(0.1	)	(0.1	)	(0.4	)
—		(4.0	)	Other (2)	—		—		—		—		—

69.3		62.0		Ending assets under management	62.0		60.8		64.4		65.6		69.3
25.5		23.2		Other institutional assets under management (2)	23.2		23.4		24.8		24.1		25.5

94.8		85.2		Total assets managed for institutional customers at end of period	85.2		84.2		89.2		89.7		94.8

(1)	Reflects reclassification of amounts by client category as of January 1, 2002, based on internal management criteria which increased the amounts attributable to institutional customers by $2.8 billion.

(2)

Reflects reclassification of amounts by asset gatherer category as of January 1, 2002, based on internal management criteria, which reduced the amount attributed to assets gathered by Investment Management & Advisory Services sales force and increased the amount attributed to other institutional assets under management by $4.0 billion.

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

INVESTMENT DIVISION - MUTUAL FUNDS AND WRAP-FEE PRODUCTS SALES RESULTS AND ASSETS UNDER MANAGEMENT

(in millions)


Year-to-date					2002		2003
2003		2002			4Q		1Q		2Q		3Q		4Q

				MUTUAL FUNDS AND WRAP-FEE PRODUCTS SALES AND ASSETS UNDER MANAGEMENT
				Mutual Funds:
49,756		57,809		Beginning total mutual funds assets	48,639		49,756		48,170		51,835		51,016
3,907		4,876		Sales (other than money market)	1,356		1,086		1,100		963		758
(5,454	)	(5,135	)	Redemptions (other than money market)	(1,421	)	(962	)	(1,358	)	(1,749	)	(1,385	)
5,890		(3,850	)	Reinvestment of distributions and change in market value	1,188		103		2,583		757		2,447
(11,447	)	(3,944	)	Net money market sales	(6	)	(1,813	)	(2,792	)	(790	)	(6,052	)
4,132		—		Acquisition	—		—		4,132		—		—

46,784		49,756		Ending total mutual funds assets	49,756		48,170		51,835		51,016		46,784

(1,547	)	(259	)	Net Mutual Funds sales (redemptions) other than money market	(65	)	124		(258	)	(786	)	(627	)

				Wrap-fee Products ⁽¹⁾:
15,153		17,955		Beginning total wrap-fee product assets	14,383		15,153		14,860		16,702		17,960
6,115		6,127		Sales ⁽²⁾	1,361		1,287		1,462		1,754		1,612
(5,254	)	(5,694	)	Redemptions	(1,275	)	(1,178	)	(1,345	)	(1,370	)	(1,361	)
3,819		(3,235	)	Reinvestment of distributions and change in market value ⁽²⁾	684		(402	)	1,725		874		1,622

19,833		15,153		Ending total wrap-fee product assets	15,153		14,860		16,702		17,960		19,833
807		16,394		Other managed accounts at end of period ⁽³⁾	16,394		16,712		18,089		804		807

20,640		31,547		Total wrap-fee products and other managed accounts at end of period	31,547		31,572		34,791		18,764		20,640

861		433		Net wrap-fee product sales ⁽¹⁾	86		109		117		384		251

				MUTUAL FUNDS AND WRAP-FEE PRODUCTS GROSS SALES BY DISTRIBUTION CHANNEL
				Mutual funds, excluding wrap-fee products⁽⁴⁾:
416		519		Prudential Agents	98		99		119		93		105
826		1,076		Financial Advisors	162		469		357		—		—
2,631		3,233		Third party distributors ⁽⁵⁾	1,090		501		616		865		649
34		48		Other	6		17		8		5		4

3,907		4,876		Total	1,356		1,086		1,100		963		758

				Wrap-fee products ⁽¹⁾:
417		441		Prudential Agents	90		118		80		102		117
2,269		5,267		Financial Advisors	1,154		1,054		1,215		—		—
3,429		419		Third party distributors ⁽⁵⁾	117		115		167		1,652		1,495

6,115		6,127		Total	1,361		1,287		1,462		1,754		1,612

⁽¹)	Excludes other managed accounts.

⁽²⁾

As a result of the combination of the company's retail securities brokerage business with Wachovia Securities, LLC, the Investment Management segment assumed responsibility for management of Latin American wrap-fee assets amounting to $383 million as of July 1, 2003 which were formerly managed within the International Investments segment. This balance is included in "Reinvestment of distributions and change in market value". New sales related to this business are included in the Investment Management segment's wrap-fee sales data commencing with the third quarter of 2003.

⁽³⁾

Other managed accounts which were associated with businesses that were combined into Wachovia Securities, LLC on July 1, 2003 are no longer reported by Prudential Financial, Inc. as a component of its wrap-fee products and other managed accounts, commencing as of that date. These managed accounts amounted to $17.3 billion as of June 30, 2003.

⁽⁴⁾	Other than money market.

⁽⁵⁾

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


Year-to-date					2002		2003
2003		2002			4Q		1Q		2Q		3Q		4Q
				RETIREMENT SALES AND ACCOUNT VALUES

				Defined Contribution:
22,914		24,640		Beginning total account value	21,911		22,914		22,757		24,315		26,766
5,179		3,858		Sales	1,085		1,028		876		2,484		791
(3,381	)	(3,248	)	Withdrawals	(906	)	(638	)	(1,270	)	(613	)	(860	)
3,946		(2,336	)	Change in market value and interest credited ⁽¹⁾	824		(547	)	1,952		580		1,961

28,658		22,914		Ending total account value	22,914		22,757		24,315		26,766		28,658

1,798		610		Net sales (withdrawals)	179		390		(394	)	1,871		(69	)

				Asset management of ending total account value:
				Proprietary	16,152		15,927		17,023		17,331		18,085
				Non-proprietary	6,762		6,830		7,292		9,435		10,573

				Total	22,914		22,757		24,315		26,766		28,658

				Guaranteed Products:
39,058		39,825		Beginning total account value	38,647		39,058		38,925		40,372		40,727
3,256		1,467		Sales	411		554		648		966		1,088
(4,013	)	(3,590	)	Withdrawals and benefits	(958	)	(1,045	)	(1,020	)	(1,045	)	(903	)
3,281		2,166		Change in market value and interest income	863		481		1,520		381		899
373		(810	)	Other ⁽²⁾	95		(123	)	299		53		144

41,955		39,058		Ending total account value	39,058		38,925		40,372		40,727		41,955

(757	)	(2,123	)	Net sales (withdrawals)	(547	)	(491	)	(372	)	(79	)	185

				Product composition of ending total account value:
				Spread-based products	18,729		18,791		18,994		18,853		19,606
				Fee-based products	20,329		20,134		21,378		21,874		22,349

				Total	39,058		38,925		40,372		40,727		41,955

⁽¹⁾

Includes increases to account values of $8 million in the quarter ended December 31, 2002, and $360 million in the twelve months ended December 31, 2002, added to customer accounts due to Common Stock received as demutualization consideration. Year-to-date 2002 results also includes $448 million added to customer accounts from inclusion of amounts not previously reflected in this segment.

⁽²⁾	Represents changes in asset balances for externally managed accounts.

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date				% Change			2002		2003
2003		2002		% Change			4Q		1Q		2Q		3Q		4Q
						Revenues ⁽¹⁾:
4,676		4,137		13	%	Premiums	1,054		1,141		1,129		1,170		1,236
226		204		11	%	Policy charges and fee income	52		54		58		54		60
799		719		11	%	Net investment income	185		193		205		212		189
310		338		-8	%	Commissions, investment management fees, and other income	79		74		87		85		64

6,011		5,398		11	%	Total revenues	1,370		1,462		1,479		1,521		1,549

						Benefits and Expenses ⁽¹⁾:
3,614		3,278		10	%	Insurance and annuity benefits	866		906		865		894		949
109		96		14	%	Interest credited to policyholders’ account balances	24		25		27		27		30
3		1		201	%	Interest expense	1		—		1		1		1
(695	)	(630	)	-10	%	Deferral of acquisition costs	(170	)	(177	)	(175	)	(157	)	(186	)
284		234		21	%	Amortization of acquisition costs	60		74		71		69		70
1,894		1,668		14	%	General and administrative expenses	413		456		473		464		501

5,209		4,647		12	%	Total benefits and expenses	1,194		1,284		1,262		1,298		1,365

802		751		7	%	Adjusted operating income before income taxes	176		178		217		223		184

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

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Twelve Months Ended December 31, 2003								Quarter Ended December 31, 2003
	Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments		Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments
Revenues ⁽¹⁾:
Premiums	4,676		2,581		2,095		—		1,236		689		547		—
Policy charges and fee income	226		140		86		—		60		41		19		—
Net investment income	799		233		554		12		189		70		139		(20	)
Commissions, investment management fees, and other income	310		(19	)	(15	)	344		64		(11	)	(12	)	87

Total revenues	6,011		2,935		2,720		356		1,549		789		693		67

Benefits and Expenses ⁽¹⁾:
Insurance and annuity benefits	3,614		1,919		1,695		—		949		514		435		—
Interest credited to policyholders’ account balances	109		13		96		—		30		4		26		—
Interest expense	3		12		(9	)	—		1		3		(2	)	—
Deferral of acquisition costs	(695	)	(498	)	(197	)	—		(186	)	(134	)	(52	)	—
Amortization of acquisition costs	284		233		51		—		70		53		17		—
General and administrative expenses	1,894		807		714		373		501		220		176		105

Total benefits and expenses	5,209		2,486		2,350		373		1,365		660		600		105

Adjusted operating income before income taxes	802		449		370		(17	)	184		129		93		(38	)


	Twelve Months Ended December 31, 2002								Quarter Ended December 31, 2002
	Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments		Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments
Revenues ⁽¹⁾:
Premiums	4,137		2,083		2,054		—		1,054		551		503		—
Policy charges and fee income	204		108		96		—		52		30		22		—
Net investment income	719		182		500		37		185		48		127		10
Commissions, investment management fees, and other income	338		6		44		288		79		(3	)	11		71

Total revenues	5,398		2,379		2,694		325		1,370		626		663		81

Benefits and Expenses ⁽¹⁾:
Insurance and annuity benefits	3,278		1,548		1,730		—		866		410		456		—
Interest credited to policyholders’ account balances	96		7		89		—		24		2		22		—
Interest expense	1		4		(3	)	—		1		1		—		—
Deferral of acquisition costs	(630	)	(468	)	(162	)	—		(170	)	(129	)	(41	)	—
Amortization of acquisition costs	234		210		23		1		60		52		8		—
General and administrative expenses	1,668		699		639		330		413		181		147		85

Total benefits and expenses	4,647		2,000		2,316		331		1,194		517		592		85

Adjusted operating income before income taxes	751		379		378		(6	)	176		109		71		(4	)

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

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(dollar amounts in millions unless otherwise noted)


Year-to-date			2002	2003
2003	2002		4Q	1Q	2Q	3Q	4Q
		INTERNATIONAL INSURANCE OPERATING DATA:
		Actual exchange rate basis ⁽¹⁾:
		Net premiums, policy charges and fee income:
1,943	1,606	Japan, excluding Gibraltar Life	413	484	451	499	509
2,181	2,150	Gibraltar Life	525	536	552	527	566
778	585	All other countries	168	175	184	198	221

4,902	4,341	Total	1,106	1,195	1,187	1,224	1,296

		Annualized new business premiums:
398	307	Japan, excluding Gibraltar Life	84	106	85	95	112
296	233	Gibraltar Life	63	64	89	75	68
210	203	All other countries	55	50	46	53	61

904	743	Total	202	220	220	223	241

		Constant exchange rate basis ⁽²⁾:
		Net premiums, policy charges and fee income:
1,944	1,734	Japan, excluding Gibraltar Life	436	497	463	505	479
2,205	2,337	Gibraltar Life	555	555	567	540	543
772	609	All other countries	174	178	184	191	219

4,921	4,680	Total	1,165	1,230	1,214	1,236	1,241

		Annualized new business premiums:
398	332	Japan, excluding Gibraltar Life	90	109	87	97	105
299	253	Gibraltar Life	67	67	91	77	64
210	208	All other countries	54	51	48	51	61

907	793	Total	211	227	226	225	230

⁽¹⁾	Translated based on applicable average exchange rates for the period shown.

⁽²⁾	Translated based on average exchange rates for the year ended December 31, 2003.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2002		2003
	4Q		1Q		2Q		3Q		4Q
Face amount of individual policies in force at end of period (in billions) ⁽¹⁾:
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	156		160		163		167		171
Gibraltar Life	236		230		226		222		218
All other countries	50		53		56		58		61

Total	442		443		445		447		450

Number of individual policies in force at end of period (in thousands):
Japan, excluding Gibraltar Life	1,037		1,069		1,099		1,137		1,180
Gibraltar Life	4,537		4,461		4,380		4,334		4,288
All other countries	682		716		745		786		830

Total	6,256		6,246		6,224		6,257		6,298

International insurance policy persistency ⁽²⁾:
13 months	93.0	%	93.3	%	93.1	%	92.9	%	92.8	%
25 months	86.3	%	86.9	%	87.1	%	87.1	%	87.0	%
Number of Life Planners at end of period ⁽³⁾:
Japan	2,119		2,159		2,175		2,293		2,347
All other countries	2,386		2,393		2,514		2,582		2,642

Total	4,505		4,552		4,689		4,875		4,989

⁽¹⁾	Translated based on exchange rates as of December 31, 2003.

⁽²⁾	Excluding Gibraltar Life.

⁽³⁾	Excluding Gibraltar Life Advisors.

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


		December 31, 2003							December 31, 2002 ⁽⁵⁾
		Consolidated Portfolio	Closed Block Business	Financial Services Businesses					Consolidated Portfolio	Closed Block Business	Financial Services Businesses
		Consolidated Portfolio	Closed Block Business	Amount	% of Total				Consolidated Portfolio	Closed Block Business	Amount	% of Total
Fixed maturities:
Public, available for sale, at fair value		95,968	29,538	66,430	59.8	%			92,966	30,991	61,975	59.0	%
Public, held to maturity, at amortized cost		3,010	—	3,010	2.7	%			2,563	—	2,563	2.4	%
Private, available for sale, at fair value		32,973	15,052	17,921	16.1	%			32,490	15,242	17,248	16.4	%
Private, held to maturity, at amortized cost		58	—	58	0.1	%			46	—	46	0.0	%
Trading account assets, at fair value		226	—	226	0.2	%			96	—	96	0.1	%
Equity securities, available for sale, at fair value		3,383	2,282	1,101	1.0	%			2,788	1,521	1,267	1.2	%
Commercial loans		18,780	7,006	11,774	10.6	%			18,707	6,987	11,720	11.2	%
Policy loans		8,152	5,543	2,609	2.4	%			8,827	5,681	3,146	3.0	%
Other long-term investments ⁽²⁾		4,941	1,041	3,900	3.5	%			4,952	1,075	3,877	3.7	%
Short-term investments		7,633	3,581	4,052	3.6	%			5,737	2,579	3,158	3.0	%

Subtotal ⁽¹⁾		175,124	64,043	111,081	100.0	%			169,172	64,076	105,096	100.0	%

Invested assets of other entities and operations ⁽³⁾		5,917	—	5,917					14,036	—	14,036

Total investments		181,041	64,043	116,998					183,208	64,076	119,132


Fixed Maturities by Credit Quality ⁽¹⁾:		December 31, 2003							December 31, 2002 ⁽⁵⁾
		Financial Services Businesses							Financial Services Businesses
		Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value		% of Total		Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value		% of Total
Public Fixed Maturities:
NAIC Rating ⁽⁴⁾	Rating Agency Equivalent
1	Aaa, Aa, A	50,133	2,247	210	52,170		75.1	%	47,430	2,968	35	50,363		78.0	%
2	Baa	13,767	900	91	14,576		21.0	%	11,281	671	110	11,842		18.3	%

	Subtotal Investment Grade	63,900	3,147	301	66,746		96.1	%	58,711	3,639	145	62,205		96.3	%

3	Ba	1,580	167	11	1,736		2.5	%	1,730	68	56	1,742		2.7	%
4	B	757	89	3	843		1.2	%	519	20	23	516		0.8	%
5	C and lower	67	30	2	95		0.1	%	94	5	17	82		0.1	%
6	In or near default	34	3	1	36		0.1	%	50	3	1	52		0.1	%

	Subtotal Below Investment Grade	2,438	289	17	2,710		3.9	%	2,393	96	97	2,392		3.7	%

Total		66,338	3,436	318	69,456		100.0	%	61,104	3,735	242	64,597		100.0	%

Private Fixed Maturities:
NAIC Rating ⁽⁴⁾	Rating Agency Equivalent
1	Aaa, Aa, A	4,647	400	7	5,040		28.0	%	4,945	457	5	5,397		31.2	%
2	Baa	8,749	749	13	9,485		52.6	%	7,519	632	23	8,128		47.0	%

	Subtotal Investment Grade	13,396	1,149	20	14,525		80.6	%	12,464	1,089	28	13,525		78.2	%

3	Ba	2,004	146	13	2,137		12.1	%	2,275	99	41	2,333		13.5	%
4	B	508	38	3	543		3.0	%	597	21	13	605		3.5	%
5	C and lower	552	62	12	602		3.3	%	700	20	24	696		4.0	%
6	In or near default	168	7	3	172		1.0	%	135	4	3	136		0.8	%

	Subtotal Below Investment Grade	3,232	253	31	3,454		19.4	%	3,707	144	81	3,770		21.8	%

Total		16,628	1,402	51	17,979		100.0	%	16,171	1,233	109	17,295		100.0	%

⁽¹⁾	Excludes investments of securities brokerage operations, securities trading operations, banking operations, assets of our asset management operations managed for third parties, and separate account assets for which the customer assumes risks of ownership.

⁽²⁾

Other long-term investments consist of real estate and non-real estate related investments in joint ventures (other than our investment in Wachovia Securities, LLC) and partnerships, investment real estate held through direct ownership, our interest in separate account investments and other miscellaneous investments.

⁽³⁾

Includes invested assets of securities brokerage operations, securities trading operations, and banking operations. Excludes assets of our asset management operations managed for third parties, and separate account assets for which the customer assumes risks of ownership. Our investment in Wachovia Securities, LLC is included in “Other assets”.

⁽⁴⁾

Reflects equivalent ratings for investments of international insurance operations that are not rated by United States insurance regulatory authorities. Includes, as of December 31, 2003 and December 31, 2002, respectively, 223 securities with amortized cost of $2,952 million (fair value $3,027 million) and 345 securities with amortized cost of $2,683 million (fair value, $2,727 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

⁽⁵⁾	December 31, 2002 balances are presented on a basis consistent with current reporting practices.

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 31, 2003			December 31, 2002 ⁽³⁾
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	28,488	74.3	%	25,288	73.2	%
Public, held to maturity, at amortized cost	3,010	7.8	%	2,563	7.4	%
Private, available for sale, at fair value	280	0.7	%	387	1.1	%
Private, held to maturity, at amortized cost	58	0.2	%	46	0.1	%
Trading account assets, at fair value	88	0.2	%	75	0.2	%
Equity securities, available for sale, at fair value	934	2.4	%	901	2.6	%
Commercial loans	2,922	7.6	%	3,158	9.1	%
Policy loans	862	2.3	%	685	2.0	%
Other long-term investments ⁽²⁾	1,291	3.4	%	1,125	3.3	%
Short-term investments	440	1.1	%	324	1.0	%

Total	38,373	100.0	%	34,552	100.0	%


	December 31, 2003			December 31, 2002 ⁽³⁾
	Amount	% of Total		Amount	% of Total
Financial Services Businesses excluding Japanese Insurance Operations ⁽¹⁾:
Fixed maturities:
Public, available for sale, at fair value	37,942	52.2	%	36,687	52.0	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	17,641	24.2	%	16,861	23.9	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets, at fair value	138	0.2	%	21	0.0	%
Equity securities, available for sale, at fair value	167	0.2	%	366	0.5	%
Commercial loans	8,852	12.2	%	8,562	12.2	%
Policy loans	1,747	2.4	%	2,461	3.5	%
Other long-term investments ⁽²⁾	2,609	3.6	%	2,752	3.9	%
Short-term investments	3,612	5.0	%	2,834	4.0	%

Total	72,708	100.0	%	70,544	100.0	%

⁽¹⁾	Excludes investments of securities brokerage operations, securities trading operations, banking operations, assets of our asset management operations managed for third parties, and separate account assets for which the customer assumes risks of ownership.

⁽²⁾

Other long-term investments consist of real estate and non-real estate related investments in joint ventures and partnerships, investment real estate held through direct ownership, our interest in separate account investments and other miscellaneous investments. Our investment in Wachovia Securities, LLC is included in “Other assets”.

⁽³⁾	December 31, 2002 balances are presented on a basis consistent with current reporting practices.

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended December 31
	2003						2002
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield ⁽³⁾		Amount		Realized Gains / (Losses)		Yield ⁽³⁾		Amount		Realized Gains / (Losses)
Financial Services Businesses ^{(1) (4)}:
Fixed maturities	4.50	%	910		(55	)	4.86	%	900		(193	)
Equity securities	1.58	%	4		101		2.35	%	9		(84	)
Commercial loans	7.10	%	205		2		6.98	%	206		10
Policy loans	5.02	%	33		—		5.82	%	45		—
Short-term investments and cash equivalents	1.39	%	20		1		2.55	%	37		—
Other investments	10.14	%	108		(68	)	9.02	%	95		(8	)

Gross investment income before investment expenses	4.87	%	1,280		(19	)	5.18	%	1,292		(275	)
Investment expenses	-0.16	%	(56	)	—		-0.17	%	(59	)	—

Subtotal	4.71	%	1,224		(19	)	5.01	%	1,233		(275	)

Investment results of other entities and operations ⁽²⁾			11		—				57		—
Less, investment income relating to divested businesses			(9	)					(32	)

Total			1,226		(19	)			1,258		(275	)


	Twelve Months Ended December 31
	2003						2002
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield ⁽³⁾		Amount		Realized Gains / (Losses)		Yield ⁽³⁾		Amount		Realized Gains / (Losses)
Financial Services Businesses ^{(1) (4)}:
Fixed maturities	4.82	%	3,708		(93	)	5.20	%	3,596		(507	)
Equity securities	1.50	%	16		22		2.54	%	42		(149	)
Commercial loans	7.15	%	803		49		7.44	%	888		44
Policy loans	5.35	%	150		—		5.85	%	169		—
Short-term investments and cash equivalents	1.82	%	104		3		2.18	%	200		10
Other investments	8.97	%	372		(137	)	7.01	%	310		(176	)

Gross investment income before investment expenses	5.12	%	5,153		(156	)	5.31	%	5,205		(778	)
Investment expenses	-0.16	%	(224	)	—		-0.15	%	(225	)	—

Subtotal	4.96	%	4,929		(156	)	5.16	%	4,980		(778	)

Investment results of other entities and operations ⁽²⁾			120		—				221		—
Less, investment income relating to divested businesses			(106	)					(145	)

Total			4,943		(156	)			5,056		(778	)

⁽¹⁾	Excludes investments of securities brokerage operations, securities trading operations, assets of our asset management operations managed for third parties, and separate account assets for which the customer assumes risks of ownership.

⁽²⁾	Investment income of securities brokerage and securities trading operations.

⁽³⁾

Yields are annualized, for interim periods, and 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 securities lending activity are calculated net of corresponding liabilities and rebate expenses.

⁽⁴⁾	Prior period amounts are presented on a basis consistent with current reporting practices.

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	2003						2002
	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⁽²⁾:
Fixed maturities	1.83	%	139		8		1.65	%	112		7
Equity securities	1.04	%	2		80		0.41	%	1		(50	)
Commercial loans	4.42	%	32		2		4.53	%	37		7
Policy loans	3.16	%	6		—		2.49	%	4		—
Short-term investments and cash equivalents	8.02	%	1		2		0.32	%	—		—
Other investments	6.87	%	23		(12	)	6.40	%	20		(43	)

Gross investment income before investment expenses	2.24	%	203		80		2.06	%	174		(79	)
Investment expenses	-0.23	%	(20	)	—		-0.17	%	(14	)	—

Total	2.01	%	183		80		1.89	%	160		(79	)


	Twelve Months Ended December 31
	2003						2002
	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 ⁽²⁾:
Fixed maturities	1.79	%	510		20		1.62	%	402		(1	)
Equity securities	1.13	%	10		(16	)	0.79	%	8		(165	)
Commercial loans	4.85	%	142		24		4.62	%	163		25
Policy loans	3.03	%	22		—		2.68	%	17		—
Short-term investments and cash equivalents	1.79	%	2		3		0.47	%	6		10
Other investments	7.45	%	91		(12	)	6.62	%	73		(84	)

Gross investment income before investment expenses	2.26	%	777		19		2.07	%	669		(215	)
Investment expenses	-0.24	%	(83	)	—		-0.14	%	(46	)	—

Total	2.02	%	694		19		1.93	%	623		(215	)

⁽¹⁾

⁽²⁾	Prior period amounts are presented on a basis consistent with current reporting practices.

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	2003						2002
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield ⁽²⁾		Amount		Realized Gains / (Losses)		Yield ⁽²⁾		Amount		Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations^(1) (3):
Fixed maturities	6.12	%	771		(63	)	6.75	%	788		(200	)
Equity securities	5.57	%	2		21		5.86	%	8		(34	)
Commercial loans	7.98	%	173		—		7.93	%	169		3
Policy loans	5.86	%	27		—		6.77	%	41		—
Short-term investments and cash equivalents	1.35	%	19		(1	)	2.78	%	37		—
Other investments	12.25	%	85		(56	)	10.06	%	75		35

Gross investment income before investment expenses	6.31	%	1,077		(99	)	6.82	%	1,118		(196	)
Investment expenses	-0.12	%	(36	)	—		-0.17	%	(45	)	—

Total	6.19	%	1,041		(99	)	6.65	%	1,073		(196	)


	Twelve Months Ended December 31
	2003						2002
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield ⁽²⁾		Amount		Realized Gains / (Losses)		Yield ⁽²⁾		Amount		Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations ^(1) (3):
Fixed maturities	6.62	%	3,198		(113	)	7.23	%	3,194		(506	)
Equity securities	3.23	%	6		38		5.52	%	34		16
Commercial loans	7.96	%	661		25		8.64	%	725		19
Policy loans	6.20	%	128		—		6.74	%	152		—
Short-term investments and cash equivalents	1.82	%	102		—		2.55	%	194		—
Other investments	9.74	%	281		(125	)	7.16	%	237		(92	)

Gross investment income before investment expenses	6.65	%	4,376		(175	)	6.96	%	4,536		(563	)
Investment expenses	-0.12	%	(141	)	—		-0.16	%	(179	)	—

Total	6.53	%	4,235		(175	)	6.80	%	4,357		(563	)

⁽¹⁾	Excludes investments of securities brokerage operations, securities trading operations, assets of our asset management operations managed for third parties, and separate account assets for which the customer assumes risks of ownership.

⁽²⁾

⁽³⁾	Prior period amounts are presented on a basis consistent with current reporting practices.

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

RECLASSIFIED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year ended December 31					2002								2003
2000		2001			1Q		2Q		3Q		4Q		1Q		2Q		3Q
				Revenues ⁽¹⁾:
4,227		6,119		Premiums	1,748		1,788		1,837		1,961		1,973		1,953		1,950
1,639		2,027		Policy charges and fee income	471		439		433		437		458		481		509
4,942		5,004		Net investment income	1,202		1,313		1,283		1,258		1,252		1,250		1,215
4,973		4,226		Commissions, investment management fees, and other income	1,071		1,024		986		968		894		1,059		695

15,781		17,376		Total revenues	4,492		4,564		4,539		4,624		4,577		4,743		4,369

				Benefits and Expenses ⁽¹⁾:
5,058		6,925		Insurance and annuity benefits	1,838		1,912		1,913		2,130		2,107		1,983		2,023
1,618		1,670		Interest credited to policyholders’ account balances	414		415		434		444		418		421		424
448		326		Interest expense	53		48		49		45		42		42		59
(821	)	(935	)	Deferral of acquisition costs	(242	)	(263	)	(275	)	(284	)	(285	)	(320	)	(312	)
469		538		Amortization of acquisition costs	139		179		263		158		160		142		150
7,561		7,685		General and administrative expenses	1,789		1,810		1,728		1,784		1,703		1,946		1,504

14,333		16,209		Total benefits and expenses	3,991		4,101		4,112		4,277		4,145		4,214		3,848

1,448		1,167		Adjusted operating income before income taxes	501		463		427		347		432		529		521

				Items excluded from adjusted operating income before income taxes:
(378	)	(165	)	Realized investment gains (losses), net, and related adjustments	(100	)	(341	)	(142	)	(289	)	(114	)	9		(40	)
(29	)	26		Related charges	5		(4	)	(1	)	6		1		(20	)	(6	)

(407	)	(139	)	Total realized investment losses, net, and related charges and adjustments	(95	)	(345	)	(143	)	(283	)	(113	)	(11	)	(46	)

—		—		Sales practices remedies and costs	—		—		—		(20	)	—		—		—
(398	)	58		Divested businesses	23		35		(14	)	(59	)	(4	)	(410	)	(36	)
(143	)	(588	)	Demutualization costs and expenses	—		—		—		—		—		—		—

(948	)	(669	)	Total items excluded from adjusted operating income before income taxes	(72	)	(310	)	(157	)	(362	)	(117	)	(421	)	(82	)

500		498		Income (loss) from continuing operations before income taxes	429		153		270		(15	)	315		108		439
280		131		Income tax expense (benefit)	159		53		(108	)	(21	)	102		(1	)	194

220		367		Income from continuing operations, after-tax	270		100		378		6		213		109		245

⁽¹⁾

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

RECLASSIFIED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


Year ended December 31				2002								2003
2000	2001			1Q		2Q		3Q		4Q		1Q		2Q		3Q
			Revenues ⁽¹⁾:

2,461	2,721		Premiums	722		763		769		869		824		822		779
1,479	1,647		Policy charges and fee income	395		377		375		377		389		408		441
1,330	1,378		Net investment income	342		350		360		367		360		366		349
256	210		Commissions, investment management fees, and other income	54		56		55		51		53		81		108

5,526	5,956		Total revenues	1,513		1,546		1,559		1,664		1,626		1,677		1,677


			Benefits and Expenses ⁽¹⁾:

2,835	3,299		Insurance and annuity benefits	831		851		863		989		956		891		918
595	620		Interest credited to policyholders’ account balances	147		153		163		170		157		161		158
7	1		Interest expense	1		1		(1	)	2		—		—		1
(430)	(418	)	Deferral of acquisition costs	(96	)	(123	)	(117	)	(116	)	(112	)	(149	)	(161	)
306	370		Amortization of acquisition costs	73		133		198		94		85		69		80
1,795	1,625		General and administrative expenses	374		382		377		388		377		469		498

5,108	5,497		Total benefits and expenses	1,330		1,397		1,483		1,527		1,463		1,441		1,494

418	459		Adjusted operating income before income taxes	183		149		76		137		163		236		183

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

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

RECLASSIFIED STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE

(in millions)


Year ended December 31				2002								2003
2000	2001			1Q		2Q		3Q		4Q		1Q		2Q		3Q
			Revenues ⁽¹⁾:

270	387		Premiums	56		65		109		165		94		96		77
1,023	1,017		Policy charges and fee income	250		252		248		264		254		258		255
374	391		Net investment income	105		101		104		109		101		101		100
145	112		Commissions, investment management fees, and other income	29		34		31		30		32		28		32

1,812	1,907		Total revenues	440		452		492		568		481		483		464


			Benefits and Expenses ⁽¹⁾:

640	699		Insurance and annuity benefits	129		128		152		283		173		178		193
131	137		Interest credited to policyholders’ account balances	33		36		37		37		36		38		39
10	—		Interest expense	—		—		(1	)	—		(1	)	(1	)	—
(277)	(301	)	Deferral of acquisition costs	(66	)	(80	)	(76	)	(79	)	(77	)	(74	)	(68	)
172	232		Amortization of acquisition costs	53		63		92		71		67		49		56
1,023	858		General and administrative expenses	174		175		173		186		177		180		169

1,699	1,625		Total benefits and expenses	323		322		377		498		375		370		389

113	282		Adjusted operating income before income taxes	117		130		115		70		106		113		75

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

Page 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

RECLASSIFIED STATEMENTS OF OPERATIONS - INDIVIDUAL ANNUITIES

(in millions)


Year ended December 31					2002								2003
2000		2001			1Q		2Q		3Q		4Q		1Q		2Q		3Q
				Revenues ⁽¹⁾:
72		46		Premiums	9		21		14		15		19		15		17
284		242		Policy charges and fee income	56		56		48		46		44		108		135
471		440		Net investment income	100		102		108		108		107		115		110
86		73		Commissions, investment management fees, and other income	17		16		14		14		13		46		68

913		801		Total revenues	182		195		184		183		183		284		330

				Benefits and Expenses ⁽¹⁾:
153		110		Insurance and annuity benefits	28		37		37		37		43		41		50
264		259		Interest credited to policyholders’ account balances	60		60		66		69		61		66		69
(2	)	3		Interest expense	—		2		(1	)	1		—		1		—
(142	)	(99	)	Deferral of acquisition costs	(28	)	(35	)	(34	)	(25	)	(27	)	(65	)	(85	)
133		134		Amortization of acquisition costs	23		70		105		23		17		20		23
360		287		General and administrative expenses	70		78		80		63		66		156		195

766		694		Total benefits and expenses	153		212		253		168		160		219		252

147		107		Adjusted operating income before income taxes	29		(17	)	(69	)	15		23		65		78

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

Page 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

RECLASSIFIED STATEMENTS OF OPERATIONS - GROUP INSURANCE

(in millions)


Year ended December 31					2002								2003
2000		2001			1Q		2Q		3Q		4Q		1Q		2Q		3Q
				Revenues ⁽¹⁾:
2,119		2,288		Premiums	657		677		646		689		711		711		685
172		388		Policy charges and fee income	89		69		79		67		91		42		51
485		547		Net investment income	137		147		148		150		152		150		139
25		25		Commissions, investment management fees, and other income	8		6		10		7		8		7		8

2,801		3,248		Total revenues	891		899		883		913		962		910		883

				Benefits and Expenses ⁽¹⁾:
2,042		2,490		Insurance and annuity benefits	674		686		674		669		740		672		675
200		224		Interest credited to policyholders’ account balances	54		57		60		64		60		57		50
(1	)	(2	)	Interest expense	1		(1	)	1		1		1		—		1
(11	)	(18	)	Deferral of acquisition costs	(2	)	(8	)	(7	)	(12	)	(8	)	(10	)	(8	)
1		4		Amortization of acquisition costs	(3	)	—		1		—		1		—		1
412		480		General and administrative expenses	130		129		124		139		134		133		134

2,643		3,178		Total benefits and expenses	854		863		853		861		928		852		853

158		70		Adjusted operating income before income taxes	37		36		30		52		34		58		30

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

Page 40

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

RECLASSIFIED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year ended December 31				2002								2003
2000	2001			1Q		2Q		3Q		4Q		1Q		2Q		3Q
			Revenues ⁽¹⁾:
71	20		Premiums	8		21		10		38		14		8		1
78	80		Policy charges and fee income	19		19		15		18		18		19		17
2,627	2,460		Net investment income	563		600		567		568		556		553		516
4,689	4,008		Commissions, investment management fees, and other income	966		956		890		863		814		906		481

7,465	6,568		Total revenues	1,556		1,596		1,482		1,487		1,402		1,486		1,015

			Benefits and Expenses ⁽¹⁾:
930	913		Insurance and annuity benefits	197		231		220		232		210		204		187
1,024	977		Interest credited to policyholders’ account balances	243		238		247		250		236		233		239
52	32		Interest expense	7		8		8		7		8		8		9
(92)	(60	)	Deferral of acquisition costs	(14	)	(14	)	(8	)	(8	)	(7	)	(8	)	(6	)
101	86		Amortization of acquisition costs	21		27		21		23		19		17		15
4,664	4,454		General and administrative expenses	998		1,014		943		948		863		955		488

6,679	6,402		Total benefits and expenses	1,452		1,504		1,431		1,452		1,329		1,409		932

786	166		Adjusted operating income before income taxes	104		92		51		35		73		77		83

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

Page 41

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

RECLASSIFIED STATEMENTS OF OPERATIONS - FINANCIAL ADVISORY SEGMENT

(in millions)


Year ended December 31				2002							2003
2000	2001			1Q	2Q		3Q		4Q		1Q		2Q		3Q
			Revenues ⁽¹⁾:
—	—		Premiums	—	—		—		—		—		—		—
—	—		Policy charges and fee income	—	—		—		—		—		—		—
262	225		Net investment income	42	42		31		33		27		26		—
3,046	2,487		Commissions, investment management fees, and other income	600	597		555		521		489		553		122

3,308	2,712		Total revenues	642	639		586		554		516		579		122

			Benefits and Expenses ⁽¹⁾:
—	—		Insurance and annuity benefits	—	—		—		—		—		—		—
—	—		Interest credited to policyholders’ account balances	—	—		—		—		—		—		—
—	—		Interest expense	—	—		—		—		—		—		—
—	—		Deferral of acquisition costs	—	—		—		—		—		—		—
—	—		Amortization of acquisition costs	—	—		—		—		—		—		—
2,956	2,852		General and administrative expenses	635	645		601		583		541		600		120

2,956	2,852		Total benefits and expenses	635	645		601		583		541		600		120

352	(140	)	Adjusted operating income before income taxes	7	(6	)	(15	)	(29	)	(25	)	(21	)	2

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

Page 42

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

RECLASSIFIED STATEMENTS OF OPERATIONS - RETIREMENT SEGMENT

(in millions)


Year ended December 31					2002								2003
2000		2001			1Q		2Q		3Q		4Q		1Q		2Q		3Q
				Revenues ⁽¹⁾:
71		20		Premiums	8		21		10		38		14		8		1
78		80		Policy charges and fee income	19		19		15		18		18		19		17
2,307		2,148		Net investment income	506		545		519		520		517		515		498
168		146		Commissions, investment management fees, and other income	35		35		35		32		32		31		35

2,624		2,394		Total revenues	568		620		579		608		581		573		551

				Benefits and Expenses ⁽¹⁾:
930		913		Insurance and annuity benefits	197		231		220		232		210		204		187
1,024		977		Interest credited to policyholders’ account balances	243		238		247		250		236		233		239
44		13		Interest expense	5		5		4		4		5		4		3
(15	)	(12	)	Deferral of acquisition costs	(4	)	(2	)	(3	)	(3	)	(2	)	(3	)	(2	)
22		10		Amortization of acquisition costs	3		8		2		7		3		3		3
432		383		General and administrative expenses	90		90		85		85		76		87		82

2,437		2,284		Total benefits and expenses	534		570		555		575		528		528		512

187		110		Adjusted operating income before income taxes	34		50		24		33		53		45		39

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

Page 43

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

RECLASSIFIED STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS

(in millions)


Year ended December 31					2002								2003
2000		2001			1Q		2Q		3Q		4Q		1Q		2Q		3Q
				Revenues ⁽¹⁾:
15		41		Premiums	2		(2	)	(3	)	—		(6	)	(6	)	—
(10	)	(7	)	Policy charges and fee income	—		(6	)	(3	)	(10	)	(3	)	(4	)	(3	)
824		683		Net investment income	139		182		161		138		143		126		138
(314	)	(307	)	Commissions, investment management fees, and other income	(47	)	(81	)	(27	)	(25	)	(47	)	(15	)	21

515		410		Total revenues	94		93		128		103		87		101		156

				Benefits and Expenses ⁽¹⁾:
27		39		Insurance and annuity benefits	27		31		—		43		35		23		24
(3	)	1		Interest credited to policyholders’ account balances	—		—		—		—		—		—		—
385		289		Interest expense	45		39		42		35		34		33		48
105		82		Deferral of acquisition costs	19		21		12		10		11		12		12
(84	)	(82	)	Amortization of acquisition costs	(20	)	(25	)	(21	)	(19	)	(18	)	(15	)	(14	)
113		106		General and administrative expenses	13		(12	)	(17	)	35		7		49		54

543		435		Total benefits and expenses	84		54		16		104		69		102		124

(28	)	(25	)	Adjusted operating income before income taxes	10		39		112		(1	)	18		(1	)	32

⁽¹⁾

Page 44

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

RECLASSIFIED SALES AND DEATH BENEFITS PER $1,000 OF IN FORCE INFORMATION - INDIVIDUAL LIFE

(in millions)


Year ended December 31		2002				2003
2001		1Q	2Q	3Q	4Q	1Q	2Q	3Q
	INDIVIDUAL LIFE INSURANCE SALES ⁽¹⁾:

	Excluding corporate-owned life insurance:
208	Variable life	43	39	32	31	26	26	20
21	Universal life	16	20	20	30	29	25	24
46	Term life	16	24	23	26	26	29	26

275	Total excluding corporate-owned life insurance	75	83	75	87	81	80	70
199	Corporate-owned life insurance	10	75	21	16	4	13	3

474	Total	85	158	96	103	85	93	73

	SALES BY DISTRIBUTION CHANNEL
	Life Insurance ⁽¹⁾:
	Excluding corporate-owned life insurance:
213	Prudential Agents	56	64	57	61	58	58	53
62	Third party distribution	19	19	18	26	23	22	17
199	Corporate-owned life insurance	10	75	21	16	4	13	3

474	Total	85	158	96	103	85	93	73

	Death benefits per $1,000 of in force ⁽²⁾:
2.21	Variable and universal life	2.33	2.33	2.09	3.63	2.43	2.74	2.40
1.52	Term life	0.45	0.90	2.59	2.65	1.80	0.90	4.16
2.28	Total, Individual Life Insurance	2.01	2.12	2.32	3.50	2.40	2.53	3.10

⁽¹⁾	See definition of Individual Life Insurance Sales on Page 47.

⁽²⁾	Annualized, for interim reporting periods. Amounts are stated net of reinsurance.

Page 45

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

Adjusted operating income is a non-GAAP measure that excludes realized investment gains, net of losses, and related charges and adjustments; and results of divested businesses and discontinued operations and life insurance sales practices remedies and costs 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 exclude these items as well. Adjusted operating income should not be viewed as a substitute for net income determined in accordance with GAAP, and our definition of adjusted operating income may differ from that used by other companies. The excluded items 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. 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).

4. Attributed Equity:

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

5. Book value per share of Common Stock:

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

6. Borrowings - General Corporate Purposes:

Amounts used for general corporate purposes include those used for cash flow timing mismatches at Prudential Financial, Prudential Financial’s investments in equity and debt securities of subsidiaries, and amounts utilized for regulatory capital purposes.

7. Borrowings - Investment Related:

Debt issued to finance specific investment assets or portfolios of investment assets, including institutional spread lending investment portfolios, real estate, and real estate related investments held in consolidated joint ventures, as well as institutional and insurance company portfolio cash flow timing differences.

8. Borrowings - Securities Business Related:

Debt issued to finance primarily the liquidity of our broker-dealers, and our capital markets and other securities business related operations.

9. Borrowings - Specified Other Businesses:

Borrowings associated with consumer banking activities, the individual annuity business, real estate franchises, and relocation services.

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. For periods prior to July 1, 2003, also includes fair market value of assets in client accounts of Prudential Securities businesses combined into Wachovia Securities, LLC.

Page 46

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

KEY DEFINITIONS AND FORMULAS

11. Earned Premiums:

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

12. Earnings Per Share of Common Stock:

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

13. 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.

14. Gibraltar Life Advisors:

Insurance representatives for Gibraltar Life.

15. 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.

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

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

17. Individual Life Insurance Sales:

Scheduled premiums from new sales on an annualized basis and first year excess premiums and deposits on a cash-received basis.

18. 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.

19. International Life Planners:

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

20. New annualized premiums:

Premiums from new sales that are expected to be collected over a one year period. Group insurance new annualized 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.

21. 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.

Page 47

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

KEY DEFINITIONS AND FORMULAS

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

Adjusted operating income after-tax (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average attributed equity for the Financial Services Businesses excluding unrealized gains and losses on investments.

An alternative measure to operating return on average equity (based on adjusted operating income) is return on average equity (based on income from continuing operations). Return on average equity (based on income from continuing operations) represents income from continuing operations after-tax as determined in accordance with GAAP (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average total attributed equity for the Financial Services Businesses. Return on average equity (based on income from continuing operations) is 5.41% for the twelve months ended December 31, 2003, 3.95% for the twelve months ended December 31, 2002, 10.12% for the three months ended December 31, 2003, 0.37% for the three months ended December 31, 2002. 4.99% for the three months ended September 30, 2003, 2.19% for the three months ended June 30, 2003 and 4.44% for the three months ended March 31, 2003.

23. 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).

24. 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.

25. Prudential Agents:

Insurance agents in our insurance operations in the United States.

26. 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.

27. Ratio of corporate debt to total capitalization:

For purposes of this ratio, we measure “debt” as the sum of borrowings for general corporate purposes, excluding debt related to Equity Security Units, and 20% of the amount corresponding to contractual obligation of holders of Equity Security Units for purchase of Prudential Financial, Inc. Common Stock, and we measure “total capitalization” as the sum of equity excluding unrealized gains and losses on investments, corporate debt excluding Equity Security Units and the amount corresponding to contractual obligation of holders of Equity Security Units for purchase of Prudential Financial, Inc. Common Stock.

28. Redeemable Capital Securities:

Capital Trust Certificates of Prudential Financial Capital Trust I (element of Equity Security Units).

29. Separate Accounts:

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

30. Wrap-Fee Products:

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

Page 48

Prudential Financial, Inc.

Quarterly Financial Supplement

Fourth Quarter 2003

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of February 10, 2004


	A.M. Best	Standard & Poor’s	Moody’s	Fitch Ratings
The Prudential Insurance Company of America	A	A+	A1	AA-
PRUCO Life Insurance Company	A	A+	A1	NR*
PRUCO Life Insurance Company of New Jersey	A	A+	NR	NR
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)	A+	AA-	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	A	A2	NR
American Skandia Life Assurance Corporation	A	A+	NR	A+

CREDIT RATINGS: as of February 10, 2004
Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-2	P-2	F1
Long-Term Senior Debt	a-	A-	A3	A
Redeemable Capital Securities	a-	A-	A3	A

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

Prudential Funding, LLC:
Commercial Paper	AMB-1	A-1	P-1	NR
Long-Term Senior Debt	a	A+	A2	NR

*	NR indicates not rated.



INVESTOR INFORMATION:

Corporate Offices:		Investor Information Hotline:

Prudential Financial, Inc. 751 Broad Street Newark, New Jersey 07102		Dial 877-998-ROCK for additional printed information or inquiries.

		Web Site:

		www.prudential.com

Publicly Traded Securities:

Common Stock of Prudential Financial, Inc. is traded on the New York Stock Exchange under the symbol PRU.

Equity Security Units of Prudential Financial, Inc. are traded on the New York Stock Exchange under the symbol PFA.

Page 49

Form: 8-K

Documents