August 3, 2004 - QUARTERLY FINANCIAL SUPPLEMENT - 8-K: Current report

Exhibit 99.1

LOGO

Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

SECOND QUARTER 2004

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.

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

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		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		13
Individual Life and Annuities Sales Results and Account Values		14
Individual Life Account Value Activity		15
Annuities Account Value Activity		16
Deferred Policy Acquisition Costs		17
Supplementary Information for Individual Life Insurance		18
Supplementary Information for Group Insurance		19

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

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
Combined Statements of Operations		27
Combining Statements of Operations		28
International Insurance Segment - Supplementary Income Statement Information		29
Sales Results and Supplementary Information		30-31

INVESTMENT PORTFOLIO
Investment Portfolio Composition		32
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		33
Financial Services Businesses Investment Results		34
Financial Services Businesses Investment Results - Japanese Insurance Operations		35
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations		36

KEY DEFINITIONS AND FORMULAS		37-39

RATINGS AND INVESTOR INFORMATION		40

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

Effective with reporting of results for the second quarter of 2004, fixed maturity and equity security investments for which fair value changes result in changes in experience-rated contractholder liabilities are classified as “Trading account assets supporting insurance liabilities.” Adjusted operating income excludes net realized and unrealized investment gains and losses on these assets, as well as changes in experience-rated contractholder liabilities due to asset value changes.

Revenues and expenses for the first quarter of 2004, and balance sheet presentations for all historical periods presented, have been reclassified to conform to the current reporting practice. This reclassification had no impact on adjusted operating income of the Financial Services Businesses for previously reported periods, and had no significant impact on revenues and expenses for periods prior to the first quarter of 2004.

Managed account and wrap-fee assets for which Prudential provides recordkeeping and performance measurement services but does not have responsibility for asset management or selection of asset managers are classified as “Assets under administration” commencing as of June 30, 2004. Amounts reported for earlier periods have been reclassified to conform to the current reporting practice. As a result, approximately $20 billion of such assets which were formerly classified as Assets under Management as of March 31, 2004 were reclassified to “Assets under administration”.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			% Change			2003						2004
2004	2003		% Change			2Q		3Q		4Q		1Q		2Q
					*Financial Services Businesses:*
					Pre-tax adjusted operating income by division:
449	399		13	%	Insurance Division	236		183		206		211		238
168	150		12	%	Investment Division	77		83		56		96		72
481	395		22	%	International Insurance and Investments Division	217		223		184		219		262
89	17		424	%	Corporate and other operations	(1	)	32		44		23		66

1,187	961		24	%	Total pre-tax adjusted operating income	529		521		490		549		638
313	312		—		Income taxes, applicable to adjusted operating income	172		170		159		170		143

874	649		35	%	Financial Services Businesses after-tax adjusted operating income	357		351		331		379		495

					Items excluded from adjusted operating income:
144	(124	)	216	%	Realized investment gains (losses), net, and related charges and adjustments	(11	)	(46	)	(29	)	1		143
(272)	—		—		Investment gains (losses) on trading account assets supporting insurance liabilities, net	—		—		—		50		(322	)
133	—		—		Change in experience-rated contractholder liabilities due to asset value changes	—		—		—		(50	)	183
(30)	(414	)	93	%	Divested businesses	(410	)	(36	)	265		(21	)	(9	)

(25)	(538	)	95	%	Total items excluded from adjusted operating income, before income taxes	(421	)	(82	)	236		(20	)	(5	)
(24)	(211	)	89	%	Income taxes, applicable to items excluded from adjusted operating income	(173	)	24		65		(13	)	(11	)

(1)	(327	)	100	%	Total items excluded from adjusted operating income, after income taxes	(248	)	(106	)	171		(7	)	6

873	322		171	%	Income from continuing operations (after-tax) of Financial Services Businesses before extraordinary gain on acquisition and cumulative effect of accounting change	109		245		502		372		501
(5)	2		-350	%	Income (loss) from discontinued operations, net of taxes	18		(25	)	(21	)	(3	)	(2	)
20	—		—		Extraordinary gain on acquisition, net of taxes	—		—		—		—		20
(79)	—		—		Cumulative effect of accounting change, net of taxes	—		—		—		(79	)	—

809	324		150	%	Net income of Financial Services Businesses	127		220		481		290		519

					Earnings per share of Common Stock (diluted):
1.71	1.22				Financial Services Businesses after-tax adjusted operating income	0.66		0.68		0.64		0.74		0.97
					Items excluded from adjusted operating income:
0.27	(0.22	)			Realized investment gains (losses), net, and related charges and adjustments	(0.02	)	(0.08	)	(0.06	)	—		0.27
(0.51)	—				Investment gains (losses) on trading account assets supporting insurance liabilities, net	—		—		—		0.09		(0.60	)
0.25	—				Change in experience-rated contractholder liabilities due to asset value changes	—		—		—		(0.09	)	0.34
(0.06)	(0.75	)			Divested businesses	(0.74	)	(0.07	)	0.49		(0.04	)	(0.02	)

(0.05)	(0.97	)			Total items excluded from adjusted operating income, before income taxes	(0.76	)	(0.15	)	0.43		(0.04	)	(0.01	)
(0.05)	(0.38	)			Income taxes, applicable to items excluded from adjusted operating income	(0.31	)	0.05		0.12		(0.02	)	(0.02	)

—	(0.59	)			Total items excluded from adjusted operating income, after income taxes	(0.45	)	(0.20	)	0.31		(0.02	)	0.01

1.71	0.63				Income from continuing operations (after-tax) of Financial Services Businesses before extraordinary gain on acquisition and cumulative effect of accounting change	0.21		0.48		0.95		0.72		0.98
(0.01)	—				Income (loss) from discontinued operations, net of taxes	0.04		(0.04	)	(0.03	)	—		—
0.04	—				Extraordinary gain on acquisition, net of taxes	—		—		—		—		0.04
(0.15)	—				Cumulative effect of accounting change, net of taxes	—		—		—		(0.15	)	—

1.59	0.63				Net income of Financial Services Businesses	0.25		0.44		0.92		0.57		1.02

536.0	552.9				Weighted average number of outstanding Common shares (diluted basis)	549.4		545.9		541.9		539.9		532.2
9.88%	7.35	%			Operating Return on Average Equity (based on adjusted operating income)	7.96	%	8.06	%	7.51	%	8.61	%	11.14	%
					*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
809	324				Net income of Financial Services Businesses (above)	127		220		481		290		519
141	68				Net income of Closed Block Business	69		77		94		111		30

950	392				Consolidated net income	196		297		575		401		549

42	26				Direct equity adjustments for earnings per share calculations	8		19		15		19		23

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			2003	2004
2004	2003		2Q	3Q	4Q	1Q	2Q
		*Financial Services Businesses Capitalization Data (1):*
		Short-term debt	5,416	5,117	4,739	4,603	4,432
		Long-term debt (2)	2,663	4,330	3,860	3,820	4,437
		Equity Security Units (2)	690	—	—	—	—

		Attributed Equity:
		Including accumulated other comprehensive income	21,768	20,541	20,340	20,837	19,619
		Excluding unrealized gains and losses on investments	18,318	18,396	18,440	18,520	18,695
		Excluding accumulated other comprehensive income	18,523	18,564	18,563	18,554	18,755

		Total Capitalization:
		Including accumulated other comprehensive income	25,121	24,871	24,200	24,657	24,056
		Excluding unrealized gains and losses on investments	21,671	22,726	22,300	22,340	23,132
		Excluding accumulated other comprehensive income	21,876	22,894	22,423	22,374	23,192

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	39.83	37.81	37.61	38.90	37.11
		Excluding unrealized gains and losses on investments	33.52	33.86	34.10	34.58	35.36
		Excluding accumulated other comprehensive income	33.89	34.17	34.33	34.64	35.47

		Number of diluted shares at end of period	546.5	543.3	540.8	535.6	528.7

		*Common Stock Price Range (based on closing price):*
48.11	34.50	High	34.50	38.06	42.19	48.11	46.47
41.05	27.56	Low	29.84	34.00	36.60	41.62	41.05
46.47	33.65	Close	33.65	37.36	41.77	44.78	46.47

		*Common Stock market capitalization (1)*	18,405	20,202	22,341	23,679	24,568

(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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

OPERATIONS HIGHLIGHTS


Year-to-date			2003			2004
2004	2003		2Q	3Q	4Q	1Q	2Q
		*Assets Under Management and Administration ($ billions) (1) (2):*

		Assets Under Management :
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Retail customers	82.5	82.1	81.2	78.4	74.4
		Institutional customers	89.2	89.7	94.8	99.9	106.3
		General account	127.1	130.3	127.8	131.2	147.6

		Total Investment Management and Advisory Services	298.8	302.1	303.8	309.5	328.3
		Non-proprietary assets under management	40.7	22.1	22.7	22.3	43.6

		Total managed by Investment Division	339.5	324.2	326.5	331.8	371.9
		Managed by International Insurance and Investments Division	50.0	50.7	53.9	67.6	67.0
		Managed by Insurance Division	32.9	31.4	33.9	35.3	35.3

		Total assets under management	422.4	406.3	414.3	434.7	474.2
		Client assets under administration (3)	186.5	45.2	50.4	52.2	64.6

		Total assets under management and administration	608.9	451.5	464.7	486.9	538.8

		Assets managed or administered for customers outside of the United States at end of period (3)	89.6	81.0	84.9	100.8	97.3

		*Distribution Representatives (1):*
		Prudential Agents	4,290	4,281	4,320	4,147	4,001
		International Life Planners	4,689	4,875	4,989	5,008	5,123
		Gibraltar Life Advisors	4,877	4,848	4,826	4,815	4,888

38	36	*Prudential Agent productivity ($ thousands)*	39	38	44	36	40

		*Third Party Distribution - Retail Products ($ millions) (4):*
62	45	Individual life insurance (5)	22	17	49	28	34
7	17	Corporate-owned life insurance sales	13	3	—	6	1
2,742	757	Individual annuities (6)	699	1,125	1,166	1,410	1,332
5,128	1,399	Mutual funds and wrap-fee products (6)	783	2,517	2,144	2,742	2,386

(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 Financial Holdings, 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 Financial Holdings, LLC as a result of the combination of Prudential’s retail securities brokerage operation with Wachovia Securities Financial Holdings, LLC as of that date.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date			% Change			2003						2004
2004	2003		% Change			2Q		3Q		4Q		1Q		2Q
					Revenues (1):

4,401	3,926		12	%	Premiums	1,953		1,950		2,042		2,191		2,210
1,139	939		21	%	Policy charges and fee income	481		509		553		559		580
2,579	2,502		3	%	Net investment income	1,250		1,215		1,226		1,246		1,333
1,642	1,953		-16	%	Commissions, investment management fees, and other income	1,059		695		714		709		933

9,761	9,320		5	%	Total revenues	4,743		4,369		4,535		4,705		5,056

					Benefits and Expenses (1):

4,479	4,090		10	%	Insurance and annuity benefits	1,983		2,023		2,171		2,262		2,217
986	839		18	%	Interest credited to policyholders’ account balances	421		424		428		427		559
110	84		31	%	Interest expense	42		59		57		53		57
(718)	(605	)	-19	%	Deferral of acquisition costs	(320	)	(312	)	(353	)	(364	)	(354	)
376	302		25	%	Amortization of acquisition costs	142		150		81		187		189
3,341	3,649		-8	%	General and administrative expenses	1,946		1,504		1,661		1,591		1,750

8,574	8,359		3	%	Total benefits and expenses	4,214		3,848		4,045		4,156		4,418

1,187	961		24	%	Adjusted operating income before income taxes	529		521		490		549		638

					Items excluded from adjusted operating income before income taxes:
164	(105	)	256	%	Realized investment gains (losses), net, and related adjustments	9		(40	)	(11	)	9		155
(20)	(19	)	-5	%	Related charges	(20	)	(6	)	(18	)	(8	)	(12	)

144	(124	)	216	%	Total realized investment gains (losses), net, and related charges and adjustments	(11	)	(46	)	(29	)	1		143

(272)	—		—		Investment gains (losses) on trading account assets supporting insurance liabilities, net	—		—		—		50		(322	)
133	—		—		Change in experience-rated contractholder liabilities due to asset value changes	—		—		—		(50	)	183
(30)	(414	)	93	%	Divested businesses	(410	)	(36	)	265		(21	)	(9	)

(25)	(538	)	95	%	Total items excluded from adjusted operating income before income taxes	(421	)	(82	)	236		(20	)	(5	)

1,162	423		175	%	Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change	108		439		726		529		633
289	101		186	%	Income tax expense (benefit)	(1	)	194		224		157		132

873	322		171	%	Income from continuing operations before extraordinary gain on acquisition and cumulative effect of accounting change	109		245		502		372		501

(1)

Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities, and revenues of divested businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; changes in experience-rated contractholder liabilities due to asset value changes, and benefits and expenses of divested businesses.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

COMBINED BALANCE SHEETS - - FINANCIAL SERVICES BUSINESSES

(in millions)


	6/30/2003	9/30/2003	12/31/2003	3/31/2004	6/30/2004
Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $77,995; $79,964; $79,900; $84,853; $87,800)	85,283	84,725	84,353	90,479	90,596
Fixed maturities, held to maturity, at amortized cost (fair value $2,867; $2,954; $3,084; $2,999; $2,704)	2,793	2,954	3,068	2,949	2,724
Trading account assets supporting insurance liabilities, at fair value (1)	77	83	88	807	11,920
Other trading account assets, at fair value (1)	3,754	3,769	3,214	5,245	3,098
Equity securities, available for sale, at fair value (cost $991; $950; $1,045; $1,027; $1,271)	1,044	1,106	1,119	1,164	1,422
Commercial loans	12,210	12,261	12,463	11,508	16,412
Policy loans	2,992	2,732	2,609	2,671	2,608
Securities purchased under agreements to resell	5,424	1,276	1,464	2,086	147
Cash collateral for borrowed securities	5,089	—	—	—	—
Other long-term investments	4,546	4,796	4,568	4,143	4,553
Short-term investments	2,311	3,758	4,052	2,913	3,818

Total investments	125,523	117,460	116,998	123,965	137,298
Cash and cash equivalents	6,743	6,252	5,791	5,893	4,053
Accrued investment income	1,095	1,139	1,046	1,137	1,238
Broker-dealer related receivables	6,425	908	1,098	1,072	1,146
Deferred policy acquisition costs	5,997	6,348	6,605	6,665	7,005
Other assets	16,735	14,558	14,320	17,652	49,607
Separate account assets	99,116	101,841	106,680	106,833	103,961

Total assets	261,634	248,506	252,538	263,217	304,308

Liabilities:
Future policy benefits	43,792	44,608	46,003	47,648	46,736
Policyholders’ account balances	42,345	42,766	44,168	47,012	63,236
Unpaid claims and claim adjustment expenses	3,494	3,201	1,687	1,717	1,740
Securities sold under agreements to repurchase	9,835	5,454	5,196	5,536	5,685
Cash collateral for loaned securities	7,289	3,563	3,571	3,361	3,661
Income taxes payable	2,352	2,019	2,234	2,686	2,015
Broker-dealer related payables	6,099	1,951	2,364	2,555	2,230
Securities sold but not yet purchased	2,220	1,620	1,598	2,386	345
Short-term debt	5,416	5,117	4,739	4,603	4,432
Long-term debt (2)	2,663	4,330	3,860	3,820	4,437
Other liabilities	14,555	11,495	10,098	14,223	46,211
Separate account liabilities	99,116	101,841	106,680	106,833	103,961

Total liabilities	239,176	227,965	232,198	242,380	284,689

Guaranteed beneficial interest in Trust holding solely debentures of Parent (2)	690	—	—	—	—

Attributed Equity:
Accumulated other comprehensive income	3,245	1,977	1,777	2,283	864
Other attributed equity	18,523	18,564	18,563	18,554	18,755

Total attributed equity	21,768	20,541	20,340	20,837	19,619

Total liabilities and attributed equity	261,634	248,506	252,538	263,217	304,308

(1)

(2)	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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended June 30, 2004
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,210		826		27		1,354		3
Policy charges and fee income	580		488		35		61		(4	)
Net investment income	1,333		378		584		236		135
Commissions, investment management fees, and other income	933		156		622		131		24

Total revenues	5,056		1,848		1,268		1,782		158

Benefits and Expenses (1):
Insurance and annuity benefits	2,217		921		208		1,072		16
Interest credited to policyholders’ account balances	559		178		353		29		(1	)
Interest expense	57		2		1		2		52
Deferral of acquisition costs	(354	)	(180	)	(14	)	(175	)	15
Amortization of acquisition costs	189		109		14		79		(13	)
General and administrative expenses	1,750		580		634		513		23

Total benefits and expenses	4,418		1,610		1,196		1,520		92

Adjusted operating income before income taxes	638		238		72		262		66


	Quarter Ended June 30, 2003
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	1,953		822		8		1,129		(6	)
Policy charges and fee income	481		408		19		58		(4	)
Net investment income	1,250		366		553		205		126
Commissions, investment management fees, and other income	1,059		81		906		87		(15	)

Total revenues	4,743		1,677		1,486		1,479		101

Benefits and Expenses (1):
Insurance and annuity benefits	1,983		891		204		865		23
Interest credited to policyholders’ account balances	421		161		233		27		—
Interest expense	42		—		8		1		33
Deferral of acquisition costs	(320	)	(149	)	(8	)	(175	)	12
Amortization of acquisition costs	142		69		17		71		(15	)
General and administrative expenses	1,946		469		955		473		49

Total benefits and expenses	4,214		1,441		1,409		1,262		102

Adjusted operating income before income taxes	529		236		77		217		(1	)

(1)

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Six Months Ended June 30, 2004
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	4,401		1,676		39		2,684		2
Policy charges and fee income	1,139		970		53		124		(8	)
Net investment income	2,579		747		1,107		467		258
Commissions, investment management fees, and other income	1,642		306		1,099		225		12

Total revenues	9,761		3,699		2,298		3,500		264

Benefits and Expenses (1):
Insurance and annuity benefits	4,479		1,891		416		2,136		36
Interest credited to policyholders’ account balances	986		353		579		55		(1	)
Interest expense	110		3		10		3		94
Deferral of acquisition costs	(718	)	(362	)	(22	)	(365	)	31
Amortization of acquisition costs	376		217		29		158		(28	)
General and administrative expenses	3,341		1,148		1,118		1,032		43

Total benefits and expenses	8,574		3,250		2,130		3,019		175

Adjusted operating income before income taxes	1,187		449		168		481		89


	Six Months Ended June 30, 2003
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	3,926		1,646		22		2,270		(12	)
Policy charges and fee income	939		797		37		112		(7	)
Net investment income	2,502		726		1,109		398		269
Commissions, investment management fees, and other income	1,953		134		1,720		161		(62	)

Total revenues	9,320		3,303		2,888		2,941		188

Benefits and Expenses (1):
Insurance and annuity benefits	4,090		1,847		414		1,771		58
Interest credited to policyholders’ account balances	839		318		469		52		—
Interest expense	84		—		16		1		67
Deferral of acquisition costs	(605	)	(261	)	(15	)	(352	)	23
Amortization of acquisition costs	302		154		36		145		(33	)
General and administrative expenses	3,649		846		1,818		929		56

Total benefits and expenses	8,359		2,904		2,738		2,546		171

Adjusted operating income before income taxes	961		399		150		395		17

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of June 30, 2004
	Total Financial Services Businesses	Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	137,298	30,886	52,396	43,175	10,841
Deferred policy acquisition costs	7,005	4,093	54	2,982	(124	)
Other assets	56,044	3,237	42,000	5,569	5,238
Separate account assets	103,961	63,661	41,310	16	(1,026	)

Total assets	304,308	101,877	135,760	51,742	14,929

Liabilities:
Future policy benefits	46,736	4,912	13,150	28,055	619
Policyholders’ account balances	63,236	18,596	33,915	10,871	(146	)
Debt	8,869	372	1,048	541	6,908
Other liabilities	61,887	8,268	40,321	8,552	4,746
Separate account liabilities	103,961	63,661	41,310	16	(1,026	)

Total liabilities	284,689	95,809	129,744	48,035	11,101

Attributed Equity:
Accumulated other comprehensive income (loss)	864	445	229	193	(3	)
Other attributed equity	18,755	5,623	5,787	3,514	3,831

Total attributed equity	19,619	6,068	6,016	3,707	3,828

Total liabilities and attributed equity	304,308	101,877	135,760	51,742	14,929


	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
Deferred policy acquisition costs	6,605	3,918	23	2,769	(105	)
Other assets	22,255	3,211	8,153	6,047	4,844
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	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

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

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

SHORT TERM DEBT

(in millions)


	As of June 30, 2004				As of December 31, 2003
	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
Financial Services Businesses:
*Borrowings by use of proceeds:*
General corporate purposes	—	5	—	5	—	5	—	5
Investment related	49	1,239	—	1,288	167	386	—	553
Securities business related	319	1,305	883	2,507	155	1,872	882	2,909
Specified other businesses	—	495	136	631	90	1,052	129	1,271
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1

Total short-term debt - Financial Services Businesses	368	3,044	1,020	4,432	412	3,315	1,012	4,739

*Borrowings by type:*
Long-term debt due within one year	—	55	—	55	—	453	—	453
Commercial paper	368	2,973	—	3,341	412	2,846	—	3,258
Bank borrowings	—	—	543	543	—	—	535	535
Other short-term debt	—	16	476	492	—	16	476	492

Total general obligations	368	3,044	1,019	4,431	412	3,315	1,011	4,738
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1

Total short-term debt - Financial Services Businesses	368	3,044	1,020	4,432	412	3,315	1,012	4,739

Closed Block Business:
Investment related commercial paper borrowings	—	591	—	591	—	—	—	—

(1)	Includes Prudential Funding, LLC.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

LONG TERM DEBT

(in millions)


	As of June 30, 2004
	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	1,312		680	—	132	2,124	—	2,124
Hybrid notes	—		—	—	—	—	—	—

Total	1,312		680	—	132	2,124	—	2,124

The Prudential Insurance Company of America (2):
Surplus notes	691		—	—	—	691	—	691
Long-term fixed and floating rate notes	600		263	—	—	863	—	863
Commercial paper backed by long-term credit agreements	—		—	—	—	—	—	—

Total	1,291		263	—	—	1,554	—	1,554

Long-term debt of other affiliated companies	—		—	—	—	—	57	57

Total long-term debt of Financial Services Businesses, excluding debt related to Equity Security Units	2,603		943	—	132	3,678	57	3,735
Debt related to Equity Security Units (3)	702		—	—	—	702	—	702

Total long-term debt of Financial Services Businesses	3,305		943	—	132	4,380	57	4,437

Ratio of long-term and short-term corporate debt to capitalization	12.5	%

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


	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.:
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

(1)	Excluding obligations related to Equity Security Units.

(2)	Includes Prudential Funding, LLC.

(3)	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

Second Quarter 2004

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


Year-to-date			% Change			2003						2004
2004	2003		% Change			2Q		3Q		4Q		1Q		2Q
					Revenues (1):
1,676	1,646		2	%	Premiums	822		779		797		850		826
970	797		22	%	Policy charges and fee income	408		441		479		482		488
747	726		3	%	Net investment income	366		349		371		369		378
306	134		128	%	Commissions, investment management fees, and other income	81		108		145		150		156

3,699	3,303		12	%	Total revenues	1,677		1,677		1,792		1,851		1,848

					Benefits and Expenses (1):
1,891	1,847		2	%	Insurance and annuity benefits	891		918		1,033		970		921
353	318		11	%	Interest credited to policyholders’ account balances	161		158		160		175		178
3	—		—		Interest expense	—		1		(1	)	1		2
(362)	(261	)	-39	%	Deferral of acquisition costs	(149	)	(161	)	(173	)	(182	)	(180	)
217	154		41	%	Amortization of acquisition costs	69		80		11		108		109
1,148	846		36	%	General and administrative expenses	469		498		556		568		580

3,250	2,904		12	%	Total benefits and expenses	1,441		1,494		1,586		1,640		1,610

449	399		13	%	Adjusted operating income before income taxes	236		183		206		211		238

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

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Quarter Ended June 30, 2004
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
							Individual Life		Individual Annuities
							Individual Life		Individual Annuities
Revenues (1):
Premiums	826		103		723		86		17
Policy charges and fee income	488		412		76		256		156
Net investment income	378		240		138		97		143
Commissions, investment management fees, and other income	156		147		9		76		71

Total revenues	1,848		902		946		515		387

Benefits and Expenses (1):
Insurance and annuity benefits	921		205		716		155		50
Interest credited to policyholders’ account balances	178		131		47		41		90
Interest expense	2		1		1		—		1
Deferral of acquisition costs	(180	)	(172	)	(8	)	(75	)	(97	)
Amortization of acquisition costs	109		108		1		68		40
General and administrative expenses (2)	580		437		143		228		209

Total benefits and expenses	1,610		710		900		417		293

Adjusted operating income before income taxes	238		192		46		98		94


	Quarter Ended June 30, 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	822		111		711		96		15
Policy charges and fee income	408		366		42		258		108
Net investment income	366		216		150		101		115
Commissions, investment management fees, and other income	81		74		7		28		46

Total revenues	1,677		767		910		483		284

Benefits and Expenses (1):
Insurance and annuity benefits	891		219		672		178		41
Interest credited to policyholders’ account balances	161		104		57		38		66
Interest expense	—		—		—		(1	)	1
Deferral of acquisition costs	(149	)	(139	)	(10	)	(74	)	(65	)
Amortization of acquisition costs	69		69		—		49		20
General and administrative expenses (2)	469		336		133		180		156

Total benefits and expenses	1,441		589		852		370		219

Adjusted operating income before income taxes	236		178		58		113		65

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

(2)

General and administrative expenses for Individual Annuities include $8 million for the quarter ended June 30, 2004 and $11 million for the quarter ended June 30, 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

Second Quarter 2004

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Six Months Ended June 30, 2004
	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	1,676		204		1,472		173		31
Policy charges and fee income	970		823		147		512		311
Net investment income	747		474		273		194		280
Commissions, investment management fees, and other income	306		286		20		143		143

Total revenues	3,699		1,787		1,912		1,022		765

Benefits and Expenses (1):
Insurance and annuity benefits	1,891		414		1,477		321		93
Interest credited to policyholders’ account balances	353		259		94		80		179
Interest expense	3		2		1		—		2
Deferral of acquisition costs	(362	)	(347	)	(15	)	(152	)	(195	)
Amortization of acquisition costs	217		215		2		138		77
General and administrative expenses (2)	1,148		867		281		450		417

Total benefits and expenses	3,250		1,410		1,840		837		573

Adjusted operating income before income taxes	449		377		72		185		192


	Six Months Ended June 30, 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	1,646		224		1,422		190		34
Policy charges and fee income	797		664		133		512		152
Net investment income	726		424		302		202		222
Commissions, investment management fees, and other income	134		119		15		60		59

Total revenues	3,303		1,431		1,872		964		467

Benefits and Expenses (1):
Insurance and annuity benefits	1,847		435		1,412		351		84
Interest credited to policyholders’ account balances	318		201		117		74		127
Interest expense	—		(1	)	1		(2	)	1
Deferral of acquisition costs	(261	)	(243	)	(18	)	(151	)	(92	)
Amortization of acquisition costs	154		153		1		116		37
General and administrative expenses (2)	846		579		267		357		222

Total benefits and expenses	2,904		1,124		1,780		745		379

Adjusted operating income before income taxes	399		307		92		219		88

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

(2)

General and administrative expenses for Individual Annuities include $16 million for the six months ended June 30, 2004 and $11 million for the six months ended June 30, 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

Second Quarter 2004

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

(in millions)


Year-to-date					2003						2004
2004		2003			2Q		3Q		4Q		1Q		2Q
				INDIVIDUAL LIFE INSURANCE SALES:

				Excluding corporate-owned life insurance:
53		52		Variable life	26		20		27		26		27
71		54		Universal life	25		24		54		32		39
60		55		Term life	29		26		29		32		28

184		161		Total excluding corporate-owned life insurance	80		70		110		90		94
7		17		Corporate-owned life insurance	13		3		1		6		1

191		178		Total	93		73		111		96		95

				ANNUITY SALES AND ACCOUNT VALUES

				Variable Annuities:
43,949		15,338		Beginning total account value	14,965		39,780		40,815		43,949		44,858
3,259		1,401		Sales	1,070		1,469		1,548		1,723		1,536
(2,615	)	(1,342	)	Surrenders and withdrawals	(924	)	(1,159	)	(1,215	)	(1,352	)	(1,263	)

644		59		Net sales	146		310		333		371		273
(304	)	(180	)	Benefit payments	(114	)	(136	)	(133	)	(161	)	(143	)

340		(121	)	Net flows	32		174		200		210		130
927		2,267		Change in market value, interest credited, and other	2,447		990		3,072		843		84
(289	)	(135	)	Policy charges	(95	)	(129	)	(138	)	(144	)	(145	)
—		22,431		Acquisition	22,431		—		—		—		—

44,927		39,780		Ending total account value	39,780		40,815		43,949		44,858		44,927

				Fixed Annuities:
3,514		3,396		Beginning total account value	3,473		3,498		3,523		3,514		3,574
288		167		Sales	57		47		33		92		196
(102	)	(66	)	Surrenders and withdrawals	(32	)	(33	)	(42	)	(51	)	(51	)

186		101		Net sales (redemptions)	25		14		(9	)	41		145
(83	)	(87	)	Benefit payments	(46	)	(39	)	(36	)	(45	)	(38	)

103		14		Net flows	(21	)	(25	)	(45	)	(4	)	107
107		90		Interest credited and other	47		51		37		65		42
(2	)	(2	)	Policy charges	(1	)	(1	)	(1	)	(1	)	(1	)

3,722		3,498		Ending total account value	3,498		3,523		3,514		3,574		3,722

				SALES BY DISTRIBUTION CHANNEL

				Life Insurance:
				Excluding corporate-owned life insurance:
122		116		Prudential Agents	58		53		61		62		60
62		45		Third party distribution	22		17		49		28		34
7		17		Corporate-owned life insurance	13		3		1		6		1

191		178		Total	93		73		111		96		95

				Variable and Fixed Annuities (1):
805		706		Prudential Agents	380		391		415		405		400
204		188		Wirehouses	109		115		89		108		96
2,538		674		Independent Financial Planners (2)	638		1,010		1,077		1,302		1,236

3,547		1,568		Total	1,127		1,516		1,581		1,815		1,732

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

INSURANCE DIVISION - INDIVIDUAL LIFE ACCOUNT VALUE ACTIVITY

(in millions)


Year-to-date					2003						2004
2004		2003			2Q		3Q		4Q		1Q		2Q
				INDIVIDUAL LIFE INSURANCE:

				Policyholders’ Account Balances (1):
4,520		4,112		Beginning balance	4,205		4,275		4,373		4,520		4,567
588		486		Premiums and deposits	237		248		281		293		295
(319	)	(265	)	Surrenders and withdrawals	(143	)	(137	)	(147	)	(158	)	(161	)

269		221		Net sales	94		111		134		135		134
(47	)	(42	)	Benefit payments	(20	)	(25	)	(20	)	(25	)	(22	)

222		179		Net flows	74		86		114		110		112
33		47		Interest credited and other	27		39		55		(49	)	82
33		(9	)	Net transfers (to) from separate account	(2	)	(1	)	10		18		15
(66	)	(54	)	Policy charges	(29	)	(26	)	(32	)	(32	)	(34	)

4,742		4,275		Ending balance	4,275		4,373		4,520		4,567		4,742

				Separate Account Liabilities:
13,981		11,412		Beginning balance	11,235		12,511		12,843		13,981		14,246
686		752		Premiums and deposits	379		354		328		331		355
(285	)	(334	)	Surrenders and withdrawals	(177	)	(132	)	(134	)	(145	)	(140	)

401		418		Net sales	202		222		194		186		215
(14	)	(13	)	Benefit payments	(8	)	(5	)	(4	)	(8	)	(6	)

387		405		Net flows	194		217		190		178		209
415		1,157		Change in market value, interest credited and other	1,311		340		1,181		328		87
(76	)	(52	)	Net transfers to general account	(23	)	(21	)	(29	)	(39	)	(37	)
(404	)	(411	)	Policy charges	(206	)	(204	)	(204	)	(202	)	(202	)

14,303		12,511		Ending balance	12,511		12,843		13,981		14,246		14,303

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

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

INSURANCE DIVISION - ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


Year-to-date					2003						2004
2004		2003			2Q		3Q		4Q		1Q		2Q
				INDIVIDUAL ANNUITIES:

				Account Values in General Account (1):
7,660		6,795		Beginning balance	7,073		7,457		7,614		7,660		9,675
587		597		Premiums and deposits	327		263		209		249		338
(460	)	(207	)	Surrenders and withdrawals	(100	)	(102	)	(120	)	(251	)	(209	)

127		390		Net sales (redemptions)	227		161		89		(2	)	129
(163)		(151	)	Benefit payments	(78	)	(71	)	(69	)	(82	)	(81	)

(36	)	239		Net flows	149		90		20		(84	)	48
140		147		Interest credited and other	71		105		62		22		118
2,340		122		Net transfers (to) from separate account (2)	8		(36	)	(34	)	2,079		261
(3	)	(4	)	Policy charges	(2	)	(2	)	(2	)	(2	)	(1	)
—		158		Acquisition	158		—		—		—		—

10,101		7,457		Ending balance	7,457		7,614		7,660		9,675		10,101

				Account Values in Separate Account:
39,803		11,939		Beginning balance	11,365		35,821		36,724		39,803		38,757
2,960		971		Premiums and deposits	800		1,253		1,372		1,566		1,394
(2,257	)	(1,201	)	Surrenders and withdrawals	(856	)	(1,090	)	(1,137	)	(1,152	)	(1,105	)

703		(230	)	Net sales (redemptions)	(56	)	163		235		414		289
(224	)	(116	)	Benefit payments	(82	)	(104	)	(100	)	(124	)	(100	)

479		(346	)	Net flows	(138	)	59		135		290		189
894		2,210		Change in market value, interest credited and other	2,423		936		3,047		886		8
(2,340	)	(122	)	Net transfers (to) from general account (2)	(8	)	36		34		(2,079	)	(261	)
(288	)	(133	)	Policy charges	(94	)	(128	)	(137	)	(143	)	(145	)
—		22,273		Acquisition	22,273		—		—		—		—

38,548		35,821		Ending balance	35,821		36,724		39,803		38,757		38,548

(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.

(2)

Includes the transfer in classification, as of January 1, 2004, of $2,168 million of assets from separate account to general account, reflecting the adoption of Statement of Position 03-1, “Accounting and Reporting by Insurance Enterprises for Certain Non-Traditional Long-Duration Contracts and for Separate Accounts” (SOP 03-1).

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)


Year-to-date					2003						2004
2004		2003			2Q		3Q		4Q		1Q		2Q
				INDIVIDUAL LIFE INSURANCE:
3,194		3,110		Beginning balance	3,104		3,102		3,131		3,194		3,032
152		151		Capitalization	74		68		75		77		75
(138	)	(116	)	Amortization - operating results	(49	)	(56	)	(23	)	(70	)	(68	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
(66	)	(43	)	Impact of unrealized (gains) or losses on AFS securities	(27	)	17		11		(169	)	103

3,141		3,102		Ending balance	3,102		3,131		3,194		3,032		3,141

				INDIVIDUAL ANNUITIES:
636		473		Beginning balance	471		471		522		636		697
195		92		Capitalization	65		85		90		98		97
(77	)	(37	)	Amortization - operating results	(20	)	(23	)	13		(37	)	(40	)
(2	)	(3	)	Amortization - realized investment gains and losses	(1	)	(3	)	(5	)	1		(3	)
95		(54	)	Impact of unrealized (gains) or losses on AFS securities	(44	)	(8	)	16		(5	)	100
4		—		Other (1)	—		—		—		4		—

851		471		Ending balance	471		522		636		697		851

				GROUP INSURANCE (2):
88		57		Beginning balance	64		74		81		88		94
15		18		Capitalization	10		8		8		7		8
(2	)	(1	)	Amortization - operating results	—		(1	)	(1	)	(1	)	(1	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

101		74		Ending balance	74		81		88		94		101

				TOTAL INSURANCE DIVISION:
3,918		3,640		Beginning balance	3,639		3,647		3,734		3,918		3,823
362		261		Capitalization	149		161		173		182		180
(217	)	(154	)	Amortization - operating results	(69	)	(80	)	(11	)	(108	)	(109	)
(2	)	(3	)	Amortization - realized investment gains and losses	(1	)	(3	)	(5	)	1		(3	)
29		(97	)	Impact of unrealized (gains) or losses on AFS securities	(71	)	9		27		(174	)	203
4		—		Other (1)	—		—		—		4		—

4,093		3,647		Ending balance	3,647		3,734		3,918		3,823		4,093

(1)	Reflects the impact of adoption of SOP 03-1 on January 1, 2004.

(2)	Represents long-term care products.

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


Year-to-date					2003						2004
2004		2003			2Q		3Q		4Q		1Q		2Q
				Individual Life Insurance:

				Policy Surrender Experience:

316		352		Cash value of surrenders	182		154		147		164		152

3.4	%	4.2	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	4.4	%	3.5	%	3.2	%	3.5	%	3.2	%

				Death benefits per $1,000 of in force (1):
2.91		2.59		Variable and universal life	2.74		2.40		4.57		2.90		2.86
1.22		1.50		Term life	0.90		4.16		1.65		1.75		0.76
2.67		2.46		Total, Individual Life Insurance	2.53		3.10		3.94		2.75		2.58

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

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


Year-to-date					2003						2004
2004		2003			2Q		3Q		4Q		1Q		2Q
				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
161		123		Group life	35		30		72		127		34
105		96		Group disability (1)	29		24		24		90		15

266		219		Total	64		54		96		217		49

				Future Policy Benefits (2):
				Group life	1,730		1,656		1,832		1,780		1,760
				Group disability (1)	201		217		224		277		279

				Total	1,931		1,873		2,056		2,057		2,039

				Policyholders’ Account Balances (2):
				Group life	4,729		4,499		4,341		4,353		4,420
				Group disability (1)	60		61		66		59		61

				Total	4,789		4,560		4,407		4,412		4,481

				Separate Account Liabilities (2):
				Group life	9,994		9,970		10,253		10,476		10,810
				Group disability (1)	—		—		—		—		—

				Total	9,994		9,970		10,253		10,476		10,810

				Group Life Insurance:
1,287		1,327		Gross premiums, policy charges and fee income (3)	636		603		612		674		613
1,281		1,229		Earned premiums, policy charges and fee income	591		577		620		647		634
90.2	%	90.9	%	Benefits ratio	89.9	%	91.2	%	90.5	%	92.1	%	88.2	%
10.3	%	9.1	%	Administrative operating expense ratio	9.1	%	10.0	%	10.6	%	9.5	%	11.1	%
				Persistency ratio	95.6	%	93.7	%	92.8	%	95.7	%	94.7	%

				Group Disability Insurance (1):
350		332		Gross premiums, policy charges and fee income (3)	161		165		165		176		174
338		326		Earned premiums, policy charges and fee income	162		159		157		173		165
95.3	%	90.5	%	Benefits ratio	87.0	%	93.1	%	95.5	%	95.4	%	95.2	%
21.4	%	21.7	%	Administrative operating expense ratio	23.0	%	22.4	%	24.2	%	21.0	%	21.8	%
				Persistency ratio	89.2	%	87.5	%	85.0	%	90.8	%	89.3	%

(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 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year-to-date			% Change			2003						2004
2004	2003		% Change			2Q		3Q		4Q		1Q		2Q
					Revenues (1):
39	22		77	%	Premiums	8		1		6		12		27
53	37		43	%	Policy charges and fee income	19		17		18		18		35
1,107	1,109		—		Net investment income	553		516		526		523		584
1,099	1,720		-36	%	Commissions, investment management fees, and other income	906		481		494		477		622

2,298	2,888		-20	%	Total revenues	1,486		1,015		1,044		1,030		1,268

					Benefits and Expenses (1):
416	414		—		Insurance and annuity benefits	204		187		190		208		208
579	469		23	%	Interest credited to policyholders’ account balances	233		239		238		226		353
10	16		-38	%	Interest expense	8		9		8		9		1
(22)	(15	)	-47	%	Deferral of acquisition costs	(8	)	(6	)	(8	)	(8	)	(14	)
29	36		-19	%	Amortization of acquisition costs	17		15		15		15		14
1,118	1,818		-39	%	General and administrative expenses	955		488		545		484		634

2,130	2,738		-22	%	Total benefits and expenses	1,409		932		988		934		1,196

168	150		12	%	Adjusted operating income before income taxes	77		83		56		96		72

(1)

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Six Months Ended June 30, 2004								Quarter Ended June 30, 2004
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	39		—		—		39		27		—		—		27
Policy charges and fee income	53		—		—		53		35		—		—		35
Net investment income	1,107		35		1		1,071		584		19		—		565
Commissions, investment management fees, and other income	1,099		678		177		244		622		347		72		203

Total revenues	2,298		713		178		1,407		1,268		366		72		830

Benefits and Expenses (1):
Insurance and annuity benefits	416		—		—		416		208		—		—		208
Interest credited to policyholders’ account balances	579		—		—		579		353		—		—		353
Interest expense	10		5		—		5		1		2		(4	)	3
Deferral of acquisition costs	(22	)	(11	)	—		(11	)	(14	)	(5	)	—		(9	)
Amortization of acquisition costs	29		23		—		6		14		11		—		3
General and administrative expenses	1,118		578		272		268		634		298		156		180

Total benefits and expenses	2,130		595		272		1,263		1,196		306		152		738

Adjusted operating income before income taxes	168		118		(94	)	144		72		60		(80	)	92


	Six Months Ended June 30, 2003								Quarter Ended June 30, 2003
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	22		—		—		22		8		—		—		8
Policy charges and fee income	37		—		—		37		19		—		—		19
Net investment income	1,109		24		53		1,032		553		12		26		515
Commissions, investment management fees, and other income	1,720		615		1,042		63		906		322		553		31

Total revenues	2,888		639		1,095		1,154		1,486		334		579		573

Benefits and Expenses (1):
Insurance and annuity benefits	414		—		—		414		204		—		—		204
Interest credited to policyholders’ account balances	469		—		—		469		233		—		—		233
Interest expense	16		7		—		9		8		4		—		4
Deferral of acquisition costs	(15	)	(10	)	—		(5	)	(8	)	(5	)	—		(3	)
Amortization of acquisition costs	36		30		—		6		17		14		—		3
General and administrative expenses	1,818		514		1,141		163		955		268		600		87

Total benefits and expenses	2,738		541		1,141		1,056		1,409		281		600		528

Adjusted operating income before income taxes	150		98		(46	)	98		77		53		(21	)	45

(1)

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

INVESTMENT DIVISION - SUPPLEMENTARY REVENUE INFORMATION FOR ASSET MANAGEMENT SEGMENT

(dollar amounts in millions unless otherwise noted)


Year-to-date					2003			2004
2004	2003	% Change			2Q	3Q	4Q	1Q	2Q
				Asset Management Segment:

				Analysis of revenues by source:
				Investment Management and Advisory Services:
108	88	23	%	Retail customers	45	50	49	54	54
212	166	28	%	Institutional customers	87	92	114	95	117
112	105	7	%	General account	50	56	58	53	59

432	359	20	%	Subtotal	182	198	221	202	230
281	280	—		Mutual Fund and other segment revenues (1)	152	144	158	145	136

713	639	12	%	Total Asset Management segment revenues	334	342	379	347	366

				Analysis of commissions, investment management fees and other revenues by type:
				Investment Management and Advisory Services:
395	327	21	%	Asset-based fees	162	173	182	186	209
21	19	11	%	Transaction-based and other revenues	14	16	33	9	12

416	346	20	%	Subtotal	176	189	215	195	221
262	269	-3	%	Mutual Fund and other segment revenues (1)	146	135	151	136	126

678	615	10	%	Total	322	324	366	331	347

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

INVESTMENT DIVISION - SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)


Year-to-date			2003		2003		2004		2004
2004			3Q		4Q		1Q		2Q
		Information pertaining to Wachovia Securities Financial Holdings, LLC:

		Revenues:
111		Net investment income	53		55		56		55
1,216		Commissions	620		626		665		551
795		Fees	351		364		393		402
55		Other non-interest revenues	51		36		36		19

2,177		Total revenues	1,075		1,081		1,150		1,027
		Expenses:
1,930		Expenses before transition costs	939		948		1,001		929
123		Transition costs	41		43		57		66

2,053		Total expenses	980		991		1,058		995

124		Income before income taxes	95		90		92		32

47		Prudential Financial, Inc., 38% share of Wachovia Securities Financial Holdings, LLC	36		34		35		12
(4	)	Purchase accounting and related adjustments	(5	)	(9	)	(3	)	(1	)

43		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	31		25		32		11

41.3%		Recurring revenue as a percentage of total non-interest revenue (1)	38.2	%	38.0	%	39.1	%	41.3	%

		Total client assets ($ in billions) (2)	568.5		603.1		614.9		618.9

		Distribution representatives (2):

		Series 7 Financial Advisors	8,309		8,192		8,133		8,009

		Series 6 Financial Representatives	3,316		3,270		3,081		2,871

		Customer debit balances ($ in billions) (2)	5.6		6.1		6.1		6.3

(96	)	Prudential Financial, Inc. income (loss) from investment in Wachovia Securities Financial Holdings, LLC, including 38% interest in results, costs incurred at Prudential level, and purchase accounting adjustments	4		(64	)	(17	)	(79	)

(1)	Calculated on a YTD annualized basis. 2003 amounts are calculated from July 1, 2003.

(2)	As of end of period.

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

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

(in billions)


	June 30, 2004
	Equity	Fixed Income	Real Estate	Total
Retail customers	43.5	29.9	1.0	74.4
Institutional customers	38.3	55.1	12.9	106.3
General account	3.0	143.2	1.4	147.6

Total	84.8	228.2	15.3	328.3

	June 30, 2003
	Equity	Fixed Income	Real Estate	Total
Retail customers	36.7	44.4	1.4	82.5
Institutional customers	26.7	49.7	12.8	89.2
General account	2.9	123.0	1.2	127.1

Total	66.3	217.1	15.4	298.8


Year-to-date					2003						2004
2004		2003			2Q		3Q		4Q		1Q		2Q
				Institutional Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
69.3		62.0		Beginning assets under management	60.8		64.4		65.6		69.3		74.2
10.1		4.7		Additions to managed portfolio	2.1		3.1		5.4		5.6		4.5
(7.4	)	(5.7	)	Withdrawals	(2.6	)	(3.1	)	(3.9	)	(2.8	)	(4.6	)
1.6		4.2		Change in market value	4.2		1.3		2.6		1.6		—
0.4		(0.8	)	Net money market flows	(0.1	)	(0.1	)	(0.4	)	0.5		(0.1	)

74.0		64.4		Ending assets under management	64.4		65.6		69.3		74.2		74.0
32.3		24.8		Other institutional assets under management	24.8		24.1		25.5		25.7		32.3

106.3		89.2		Total assets managed for institutional customers at end of period	89.2		89.7		94.8		99.9		106.3

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

INVESTMENT DIVISION - MUTUAL FUNDS AND WRAP-FEE PRODUCTS

(in millions)


Year-to-date				2003						2004
2004	2003			2Q		3Q		4Q		1Q		2Q
			Mutual Funds Assets Under Management:
46,784	49,756		Beginning total mutual funds assets	48,170		51,835		51,016		46,784		44,027
1,545	2,186		Sales (other than money market)	1,100		963		758		873		672
(2,853)	(2,320	)	Redemptions (other than money market)	(1,358	)	(1,749	)	(1,385	)	(1,296	)	(1,557	)
885	2,686		Reinvestment of distributions and change in market value	2,583		757		2,447		566		319
(6,587)	(4,605	)	Net money market sales	(2,792	)	(790	)	(6,052	)	(2,900	)	(3,687	)
—	4,132		Acquisition	4,132		—		—		—		—

39,774	51,835		Ending total mutual funds assets	51,835		51,016		46,784		44,027		39,774

(1,308)	(134	)	Net Mutual Funds redemptions other than money market	(258	)	(786	)	(627	)	(423	)	(885	)


			Wrap-fee Products Assets Under Administration (1):
19,833	15,153		Beginning total wrap-fee product assets	14,860		16,702		17,960		19,833		21,084
4,176	2,749		Sales (2)	1,462		1,754		1,612		2,154		2,022
(3,001)	(2,523	)	Redemptions	(1,345	)	(1,370	)	(1,361	)	(1,423	)	(1,578	)
706	1,323		Reinvestment of distributions and change in market value (2)	1,725		874		1,622		520		186
6,014	—		Other (3)	—		—		—		—		6,014

27,728	16,702		Ending total wrap-fee product assets	16,702		17,960		19,833		21,084		27,728
—	18,089		Other managed accounts at end of period (4)	18,089		804		807		—		—

27,728	34,791		Total wrap-fee products and other managed accounts at end of period	34,791		18,764		20,640		21,084		27,728

1,175	226		Net wrap-fee product sales (1)	117		384		251		731		444


			MUTUAL FUNDS AND WRAP-FEE PRODUCTS GROSS SALES BY DISTRIBUTION CHANNEL
			Mutual funds, excluding wrap-fee products (5):
228	218		Prudential Agents	119		93		105		121		107
—	826		Financial Advisors	357		—		—		—		—
1,265	1,117		Third party distributors (6)	616		865		649		727		538
52	25		Other	8		5		4		25		27

1,545	2,186		Total	1,100		963		758		873		672

			Wrap-fee products (1):
313	198		Prudential Agents	80		102		117		139		174
—	2,269		Financial Advisors	1,215		—		—		—		—
3,863	282		Third party distributors (6)	167		1,652		1,495		2,015		1,848

4,176	2,749		Total	1,462		1,754		1,612		2,154		2,022

(1)	Excludes other managed accounts.

(2)

As a result of the combination of the company’s retail securities brokerage business with Wachovia Securities Financial Holdings, LLC, the Asset 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 Asset Management segment’s wrap-fee sales data commencing with the third quarter of 2003.

(3)	As a result of agreements in connection with the formation of the retail securities brokerage joint venture with Wachovia, the Asset Management segment assumed administrative responsibilities for Wachovia Securities customer assets under wrap-fee and managed account programs.

(4)

Other managed accounts which were associated with businesses that were combined into Wachovia Securities Financial Holdings, 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.

(5)	Other than money market.

(6)

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


Year-to-date					2003						2004
2004		2003			2Q		3Q		4Q		1Q		2Q
				RETIREMENT SALES AND ACCOUNT VALUES

				Defined Contribution:
28,658		22,914		Beginning total account value	22,757		24,315		26,766		28,658		28,844
3,363		1,904		Sales	876		2,484		791		1,124		2,239
(4,055	)	(1,908	)	Withdrawals	(1,270	)	(613	)	(860	)	(1,535	)	(2,520	)
1,218		1,405		Change in market value and interest credited	1,952		580		1,961		597		621
35,920		—		Acquisition	—		—		—		—		35,920

65,104		24,315		Ending total account value	24,315		26,766		28,658		28,844		65,104

(692	)	(4	)	Net sales (withdrawals)	(394	)	1,871		(69	)	(411	)	(281	)

				Asset management of ending total account value:
				Proprietary	17,023		17,331		18,085		17,797		43,166
				Non-proprietary	7,292		9,435		10,573		11,047		21,938

				Total	24,315		26,766		28,658		28,844		65,104

				Guaranteed Products:
41,955		39,058		Beginning total account value	38,925		40,372		40,727		41,955		42,260
2,205		1,202		Sales	648		966		1,088		501		1,704
(3,163	)	(2,065	)	Withdrawals and benefits	(1,020	)	(1,045	)	(903	)	(842	)	(2,321	)
900		2,001		Change in market value and interest income	1,520		381		899		1,033		(133	)
(675	)	176		Other (1)	299		53		144		(387	)	(288	)
19,143		—		Acquisition	—		—		—		—		19,143

60,365		40,372		Ending total account value	40,372		40,727		41,955		42,260		60,365

(958	)	(863	)	Net sales (withdrawals)	(372	)	(79	)	185		(341	)	(617	)

				Product composition of ending total account value (2):
				Spread-based products	18,994		18,853		19,606		20,256		23,407
				Fee-based products	21,378		21,874		22,349		22,004		36,958

				Total	40,372		40,727		41,955		42,260		60,365

(1)	Represents changes in asset balances for externally managed accounts. Includes a $152 million reduction in account value as of January 1, 2004 reflecting the adoption of SOP 03-1.

(2)	Fee and spread based product account values reflect the reclassification of $471 million of account values from fee based to spread based as of January 1, 2004, upon the adoption of SOP 03-1.

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date				% Change			2003						2004
2004		2003		% Change			2Q		3Q		4Q		1Q		2Q
						Revenues (1):
2,684		2,270		18	%	Premiums	1,129		1,170		1,236		1,330		1,354
124		112		11	%	Policy charges and fee income	58		54		60		63		61
467		398		17	%	Net investment income	205		212		189		231		236
225		161		40	%	Commissions, investment management fees, and other income	87		85		64		94		131

3,500		2,941		19	%	Total revenues	1,479		1,521		1,549		1,718		1,782

						Benefits and Expenses (1):
2,136		1,771		21	%	Insurance and annuity benefits	865		894		949		1,064		1,072
55		52		6	%	Interest credited to policyholders’ account balances	27		27		30		26		29
3		1		200	%	Interest expense	1		1		1		1		2
(365	)	(352	)	-4	%	Deferral of acquisition costs	(175	)	(157	)	(186	)	(190	)	(175	)
158		145		9	%	Amortization of acquisition costs	71		69		70		79		79
1,032		929		11	%	General and administrative expenses	473		464		501		519		513

3,019		2,546		19	%	Total benefits and expenses	1,262		1,298		1,365		1,499		1,520

481		395		22	%	Adjusted operating income before income taxes	217		223		184		219		262

(1)

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Six Months Ended June 30, 2004							Quarter Ended June 30, 2004
	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	2,684		1,449		1,235		—	1,354		697		657		—
Policy charges and fee income	124		82		42		—	61		38		23		—
Net investment income	467		150		298		19	236		78		148		10
Commissions, investment management fees, and other income	225		(10	)	(13	)	248	131		—		(4	)	135

Total revenues	3,500		1,671		1,562		267	1,782		813		824		145

Benefits and Expenses (1):
Insurance and annuity benefits	2,136		1,102		1,034		—	1,072		529		543		—
Interest credited to policyholders’ account balances	55		8		47		—	29		4		25		—
Interest expense	3		6		(4	)	1	2		3		(1	)	—
Deferral of acquisition costs	(365	)	(254	)	(111	)	—	(175	)	(119	)	(56	)	—
Amortization of acquisition costs	158		120		38		—	79		56		23		—
General and administrative expenses	1,032		439		349		244	513		211		175		127

Total benefits and expenses	3,019		1,421		1,353		245	1,520		684		709		127

Adjusted operating income before income taxes	481		250		209		22	262		129		115		18


	Six Months Ended June 30, 2003							Quarter Ended June 30, 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	2,270		1,229		1,041		—	1,129		603		526		—
Policy charges and fee income	112		65		47		—	58		32		26		—
Net investment income	398		103		272		23	205		54		140		11
Commissions, investment management fees, and other income	161		(1	)	(2	)	164	87		—		—		87

Total revenues	2,941		1,396		1,358		187	1,479		689		692		98

Benefits and Expenses (1):
Insurance and annuity benefits	1,771		925		846		—	865		451		414		—
Interest credited to policyholders’ account balances	52		6		46		—	27		3		24		—
Interest expense	1		6		(5	)	—	1		3		(2	)	—
Deferral of acquisition costs	(352	)	(253	)	(99	)	—	(175	)	(123	)	(52	)	—
Amortization of acquisition costs	145		126		19		—	71		62		9		—
General and administrative expenses	929		377		378		174	473		184		201		88

Total benefits and expenses	2,546		1,187		1,185		174	1,262		580		594		88

Adjusted operating income before income taxes	395		209		173		13	217		109		98		10

(1)

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2003						2004
2004		2003			2Q		3Q		4Q		1Q		2Q
				Japanese Yen Basis Results:
				Revenues (1):
¥	134,675	¥	122,255	Japanese insurance operations excluding Gibraltar Life	¥	59,351	¥	64,695	¥	62,352	¥	69,312	¥	65,363
	172,451		163,895	Gibraltar Life		83,420		80,309		78,638		80,506		91,945

	307,126		286,150	Total revenues, Japan, yen basis		142,771		145,004		140,990		149,818		157,308

				Benefits and Expenses (1):
	111,036		101,540	Japanese insurance operations excluding Gibraltar Life		48,803		53,806		50,148		57,341		53,695
	147,951		142,627	Gibraltar Life		71,206		67,489		67,094		69,495		78,456

	258,987		244,167	Total benefits and expenses, Japan, yen basis		120,009		121,295		117,242		126,836		132,151

				Adjusted operating income (2):
	23,639		20,715	Japanese insurance operations excluding Gibraltar Life		10,548		10,889		12,204		11,971		11,668
	24,500		21,268	Gibraltar Life		12,214		12,820		11,544		11,011		13,489

¥	48,139	¥	41,983	Total adjusted operating income, Japan, yen basis	¥	22,762	¥	23,709	¥	23,748	¥	22,982	¥	25,157

				U.S. Dollar adjusted operating income (3):
$	202	$	169	Japanese insurance operations excluding Gibraltar Life	$	84	$	88	$	100	$	103	$	99
	209		173	Gibraltar Life		98		104		93		94		115

	411		342	Total adjusted operating income, Japan, U.S. dollar basis		182		192		193		197		214
	48		40	All other countries		25		23		29		18		30

$	459	$	382	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	207	$	215	$	222	$	215	$	244

(1)

(2)	Adjusted operating income on yen basis excludes impact of currency hedging.

(3)	U.S. dollar adjusted operating income includes impact of currency hedging.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(dollar amounts in millions unless otherwise noted)


Year-to-date			2003			2004
2004	2003		2Q	3Q	4Q	1Q	2Q
		INTERNATIONAL INSURANCE OPERATING DATA:

		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
1,086	935	Japan, excluding Gibraltar Life	451	499	509	580	506
1,277	1,088	Gibraltar Life	552	527	566	597	680
445	359	All other countries	184	198	221	216	229

2,808	2,382	Total	1,187	1,224	1,296	1,393	1,415

		Annualized new business premiums:
221	191	Japan, excluding Gibraltar Life	85	95	112	128	93
143	153	Gibraltar Life	89	75	68	62	81
100	96	All other countries	46	53	61	50	50

464	440	Total	220	223	241	240	224

		Constant exchange rate basis (2):

		Net premiums, policy charges and fee income:
1,019	960	Japan, excluding Gibraltar Life	463	505	479	537	482
1,193	1,122	Gibraltar Life	567	540	543	551	642
435	362	All other countries	184	191	219	212	223

2,647	2,444	Total	1,214	1,236	1,241	1,300	1,347

		Annualized new business premiums:
207	196	Japan, excluding Gibraltar Life	87	97	105	119	88
134	158	Gibraltar Life	91	77	64	58	76
97	99	All other countries	48	51	61	49	48

438	453	Total	226	225	230	226	212

(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 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2003						2004
	2Q		3Q		4Q		1Q		2Q
Face amount of individual policies in force at end of period (in billions) (1):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	163		167		171		176		179
Gibraltar Life	226		222		218		215		210
All other countries	56		58		61		63		66

Total	445		447		450		454		455

Number of individual policies in force at end of period (in thousands):
Japan, excluding Gibraltar Life	1,099		1,137		1,180		1,231		1,266
Gibraltar Life	4,380		4,334		4,288		4,226		4,149
All other countries	745		786		830		863		894

Total	6,224		6,257		6,298		6,320		6,309

International insurance policy persistency (2):
13 months	93.1	%	92.9	%	92.8	%	92.7	%	92.6	%
25 months	87.1	%	87.1	%	87.0	%	86.7	%	86.7	%

Number of Life Planners at end of period (3):
Japan	2,175		2,293		2,347		2,422		2,447
All other countries	2,514		2,582		2,642		2,586		2,676

Total	4,689		4,875		4,989		5,008		5,123

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

(2)	Excluding Gibraltar Life.

(3)	Excluding Gibraltar Life Advisors.

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2004					December 31, 2003
	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	106,468	32,984	73,484	55.2	%	95,968	29,538	66,430	59.9	%
Public, held to maturity, at amortized cost	2,673	—	2,673	2.0	%	3,010	—	3,010	2.7	%
Private, available for sale, at fair value	31,453	14,531	16,922	12.7	%	32,973	15,052	17,921	16.2	%
Private, held to maturity, at amortized cost	51	—	51	0.0	%	58	—	58	0.1	%
Trading account assets supporting insurance liabilities, at fair value (1)	11,920	—	11,920	8.9	%	88	—	88	0.0	%
Other trading account assets, at fair value (1)	174	—	174	0.1	%	138	—	138	0.2	%
Equity securities, available for sale, at fair value	3,793	2,390	1,403	1.1	%	3,383	2,282	1,101	1.0	%
Commercial loans	23,529	7,117	16,412	12.3	%	18,780	7,006	11,774	10.6	%
Policy loans	8,075	5,467	2,608	2.0	%	8,152	5,543	2,609	2.4	%
Other long-term investments (2)	4,721	1,064	3,657	2.8	%	4,743	1,041	3,702	3.3	%
Short-term investments	6,076	2,258	3,818	2.9	%	7,633	3,581	4,052	3.6	%

Subtotal (3)	198,933	65,811	133,122	100.0	%	174,926	64,043	110,883	100.0	%

Invested assets of other entities and operations (4)	4,176	—	4,176			6,115	—	6,115

Total investments	203,109	65,811	137,298			181,041	64,043	116,998

Fixed Maturities by Credit Quality (3):


		June 30, 2004						December 31, 2003
		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 (5)	Rating Agency Equivalent
1	Aaa, Aa, A	55,454	1,588	535	56,507	74.2	%	50,133	2,247	210	52,170	75.1	%
2	Baa	16,315	678	160	16,833	22.1	%	13,767	900	91	14,576	21.0	%

Subtotal Investment Grade		71,769	2,266	695	73,340	96.3	%	63,900	3,147	301	66,746	96.1	%

3	Ba	1,782	117	19	1,880	2.5	%	1,580	167	11	1,736	2.5	%
4	B	732	61	9	784	1.0	%	757	89	3	843	1.2	%
5	C and lower	79	17	1	95	0.1	%	67	30	2	95	0.1	%
6	In or near default	33	5	—	38	0.1	%	34	3	1	36	0.1	%

Subtotal Below Investment Grade		2,626	200	29	2,797	3.7	%	2,438	289	17	2,710	3.9	%

Total		74,395	2,466	724	76,137	100.0	%	66,338	3,436	318	69,456	100.0	%

Private Fixed Maturities:

NAIC Rating (5)	Rating Agency Equivalent
1	Aaa, Aa, A	4,506	289	26	4,769	28.1	%	4,647	400	7	5,040	28.0	%
2	Baa	8,712	617	32	9,297	54.8	%	8,749	749	13	9,485	52.6	%

Subtotal Investment Grade		13,218	906	58	14,066	82.9	%	13,396	1,149	20	14,525	80.6	%

3	Ba	1,755	112	8	1,859	10.9	%	2,004	146	13	2,137	12.1	%
4	B	468	29	7	490	2.9	%	508	38	3	543	3.0	%
5	C and lower	369	63	5	427	2.5	%	552	62	12	602	3.3	%
6	In or near default	127	5	1	131	0.8	%	168	7	3	172	1.0	%

Subtotal Below Investment Grade		2,719	209	21	2,907	17.1	%	3,232	253	31	3,454	19.4	%

Total		15,937	1,115	79	16,973	100.0	%	16,628	1,402	51	17,979	100.0	%

(1)

Commencing June 30, 2004, fixed maturity and equity security investments for which fair value changes result in changes in experience-rated contractholder liabilities are classified as “Trading account assets supporting insurance liabilities.” Classification for earlier periods presented has been conformed to the current presentation. Trading account assets supporting insurance liabilities as of June 30, 2004, reflect the reclassification of $627 million of assets from separate account assets on January 1, 2004, upon adoption of SOP 03-1.

(2)

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

(3)

Excludes investments of securities brokerage operations, securities trading operations, banking operations, assets related to special purpose entities consolidated in accordance with FIN 46, assets of our asset management operations managed for third parties, and separate account assets for which the customer assumes risks of ownership.

(4)

Includes invested assets of securities brokerage operations, securities trading operations, banking operations and assets related to special purpose entities consolidated in accordance with FIN 46. 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 Financial Holdings, LLC is included in “Other assets”.

(5)

Reflects equivalent ratings for investments of international insurance operations that are not rated by United States insurance regulatory authorities. Includes, as of June 30, 2004 and December 31, 2003, respectively, 123 securities with amortized cost of $1,864 million (fair value $1,875 million) and 223 securities with amortized cost of $2,952 million (fair value, $3,027 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2004			December 31, 2003
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	28,138	72.5	%	28,488	74.3	%
Public, held to maturity, at amortized cost	2,673	6.9	%	3,010	7.8	%
Private, available for sale, at fair value	600	1.6	%	280	0.7	%
Private, held to maturity, at amortized cost	51	0.1	%	58	0.2	%
Trading account assets supporting insurance liabilities, at fair value (1)(2)	785	2.0	%	88	0.2	%
Other trading account assets, at fair value (1)	27	0.1	%	—	0.0	%
Equity securities, available for sale, at fair value	1,219	3.1	%	934	2.4	%
Commercial loans	2,810	7.2	%	2,922	7.6	%
Policy loans	817	2.1	%	862	2.3	%
Other long-term investments (3)	1,056	2.7	%	1,291	3.4	%
Short-term investments	661	1.7	%	440	1.1	%

Total	38,837	100.0	%	38,373	100.0	%


	June 30, 2004			December 31, 2003
	Amount	% of Total		Amount	% of Total
Financial Services Businesses excluding Japanese Insurance Operations (4):
Fixed maturities:
Public, available for sale, at fair value	45,346	48.1	%	37,942	52.4	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	16,322	17.3	%	17,641	24.3	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value (1)	11,135	11.8	%	—	0.0	%
Other trading account assets, at fair value (1)	147	0.2	%	138	0.2	%
Equity securities, available for sale, at fair value	184	0.2	%	167	0.2	%
Commercial loans	13,602	14.4	%	8,852	12.2	%
Policy loans	1,791	1.9	%	1,747	2.4	%
Other long-term investments (3)	2,601	2.8	%	2,411	3.3	%
Short-term investments	3,157	3.3	%	3,612	5.0	%

Total	94,285	100.0	%	72,510	100.0	%

(1)

(2)	Trading account assets supporting insurance liabilities as of June 30, 2004, reflect the reclassification of $627 million of assets from separate account assets on January 1, 2004, upon adoption of SOP 03-1.

(3)

(4)

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended June 30
	2004						2003
	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	4.54	%	980		8		4.85	%	941		17
Equity securities	1.85	%	6		54		1.63	%	4		(52	)
Commercial loans	6.59	%	189		(2	)	6.95	%	199		12
Policy loans	4.52	%	30		—		5.40	%	40		—
Short-term investments and cash equivalents	1.57	%	24		—		1.70	%	25		—
Other investments	12.58	%	102		70		8.11	%	92		31

Gross investment income before investment expenses	4.92	%	1,331		130		5.10	%	1,301		8
Investment expenses	-0.16	%	(51	)	—		-0.21	%	(63	)	—

Subtotal	4.76	%	1,280		130		4.89	%	1,238		8

Investment results of other entities and operations (2)			55		—				48		—
Less, investment income relating to divested businesses			(2	)					(36	)

Total			1,333		130				1,250		8


	Six Months Ended June 30
	2004						2003
	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	4.61	%	1,934		39		4.90	%	1,867		(63	)
Equity securities	1.93	%	11		79		1.33	%	7		(96	)
Commercial loans	6.71	%	383		14		7.01	%	400		18
Policy loans	4.61	%	60		—		5.63	%	84		—
Short-term investments and cash equivalents	1.51	%	47		—		1.79	%	53		—
Other investments	9.03	%	175		47		8.22	%	185		41

Gross investment income before investment expenses	4.85	%	2,610		179		5.14	%	2,596		(100	)
Investment expenses	-0.18	%	(115	)	—		-0.19	%	(120	)	—

Subtotal	4.67	%	2,495		179		4.95	%	2,476		(100	)

Investment results of other entities and operations (2)			85		(57	)			92		—
Less, investment income relating to divested businesses			(1	)					(66	)

Total			2,579		122				2,502		(100	)

(1)

Excludes investments of securities brokerage operations, securities trading operations, banking operations, commercial loans and trading account assets supporting insurance liabilities where the investment results generally inure to contractholders, 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, securities trading, banking operations, and commercial loans supporting insurance liabilities where the investment results generally inure to contractholders.

(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. Yields exclude investment income and assets related to Commercial loans and Trading account assets supporting insurance liabilities where the investment results generally inure to contractholders.

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

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2004						2003
	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	1.93	%	154		(18	)	1.83	%	127		1
Equity securities	1.76	%	4		8		1.07	%	2		(54	)
Commercial loans	4.18	%	29		12		4.70	%	36		12
Policy loans	2.69	%	6		—		2.81	%	5		—
Short-term investments and cash equivalents	8.26	%	1		—		3.54	%	1		—
Other investments	7.87	%	22		10		6.76	%	23		(6	)

Gross investment income before investment expenses	2.30	%	216		12		2.30	%	194		(47	)
Investment expenses	-0.20	%	(20	)	—		-0.25	%	(21	)	—

Total	2.10	%	196		12		2.05	%	173		(47	)


	Six Months Ended June 30
	2004						2003
	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	1.92	%	304		(8	)	1.76	%	243		9
Equity securities	1.49	%	7		31		0.94	%	4		(96	)
Commercial loans	4.24	%	60		15		4.78	%	73		20
Policy loans	3.00	%	13		—		2.87	%	10		—
Short-term investments and cash equivalents	8.22	%	1		—		1.13	%	1		—
Other investments	7.79	%	47		10		6.49	%	46		(8	)

Gross investment income before investment expenses	2.31	%	432		48		2.24	%	377		(75	)
Investment expenses	-0.21	%	(40	)	—		-0.26	%	(44	)	—

Total	2.10	%	392		48		1.98	%	333		(75	)

(1)

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. Yields exclude investment income and assets related to Trading account assets supporting insurance liabilities where the investment results generally inure to contractholders.

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

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING

JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2004						2003
	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	6.08	%	826		26		6.55	%	814		16
Equity securities	1.66	%	2		46		4.80	%	2		2
Commercial loans	7.40	%	160		(14	)	7.77	%	163		—
Policy loans	5.47	%	24		—		6.25	%	35		—
Short-term investments and cash equivalents	1.53	%	23		—		1.66	%	24		—
Other investments	14.65	%	80		60		8.74	%	69		37

Gross investment income before investment expenses	6.30	%	1,115		118		6.53	%	1,107		55
Investment expenses	-0.13	%	(31	)	—		-0.18	%	(42	)	—

Total	6.17	%	1,084		118		6.35	%	1,065		55


	Six Months Ended June 30
	2004						2003
	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	6.24	%	1,630		47		6.68	%	1,624		(72	)
Equity securities	3.68	%	4		48		2.82	%	3		—
Commercial loans	7.54	%	323		(1	)	7.84	%	327		(2	)
Policy loans	5.44	%	47		—		6.47	%	74		—
Short-term investments and cash equivalents	1.47	%	46		—		1.81	%	52		—
Other investments	9.59	%	128		37		9.06	%	139		49

Gross investment income before investment expenses	6.21	%	2,178		131		6.64	%	2,219		(25	)
Investment expenses	-0.16	%	(75	)	—		-0.16	%	(76	)	—

Total	6.05	%	2,103		131		6.48	%	2,143		(25	)

(1)

(2)

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

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

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; investment gains and losses on trading account assets supporting insurance liabilities; change in experience-rated contractholder liabilities due to asset value changes; results of divested businesses and discontinued operations; cumulative effect of accounting change; extraordinary gain on acquisition; 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 Financial Holdings, LLC.

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

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. Group insurance new annualized premiums include premiums from the takeover of claim liabilities.

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 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

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 9.03% for the six months ended June 30, 2004, 3.29% for the six months ended June 30, 2003, 10.36% for the three months ended June 30, 2004, 2.19% for the three months ended June 30, 2003, 4.99% for the three months ended September 30, 2003, 10.12% for the three months ended December 31, 2003, and 7.60% for the three months ended March 31, 2004.

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 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2004

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of August 3, 2004


	A.M. Best		Standard & Poor’s	Moody’s	Fitch Ratings
The Prudential Insurance Company of America	A+		A+	A1	AA-
PRICOA Global Funding I	NR	*	A+	A1	NR
PRUCO Life Insurance Company	A+		A+	A1	AA-
PRUCO Life Insurance Company of New Jersey	A+		A+	NR	NR
American Skandia Life Assurance Corporation	A+		A+	NR	AA-
Prudential Retirement Insurance and Annuity Company (PRIAC) **	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

CREDIT RATINGS:
as of August 3, 2004

Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1		A-2	P-2	F1
Long-Term Senior Debt	a-		A-	A3	A
Retail Notes	NR		A-	A3	NR
Redeemable Capital Securities	a-		A-	A3	A

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

Prudential Funding, LLC:
Short-Term Debt	AMB-1		A-1	P-1	F1
Long-Term Senior Debt	a+		A+	A2	A+

*	NR indicates not rated.

**	Formerly known as CIGNA Life Insurance Company.


INVESTOR INFORMATION:

Corporate Offices:		Investor Information Hotline:

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

		www.prudential.com

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 40

Form: 8-K

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