November 2, 2004 - QUARTERLY FINANCIAL SUPPLEMENT - 8-K: Current report

Exhibit 99.1

Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

THIRD 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.

November 2, 2004


Prudential Financial, Inc.
Quarterly Financial Supplement
Third 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
Third Quarter 2004

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date				% Change			2003				2004
2004		2003		% Change			3Q		4Q		1Q		2Q		3Q
						*Financial Services Businesses:*

						Pre-tax adjusted operating income by division:
694		582		19	%	Insurance Division	183		206		211		238		245
244		233		5	%	Investment Division	83		56		96		72		76
733		618		19	%	International Insurance and Investments Division	223		184		219		262		252
144		49		194	%	Corporate and other operations	32		44		23		66		55

1,815		1,482		22	%	Total pre-tax adjusted operating income	521		490		549		638		628
481		482		—		Income taxes, applicable to adjusted operating income	170		159		170		143		168

1,334		1,000		33	%	Financial Services Businesses after-tax adjusted operating income	351		331		379		495		460

						Items excluded from adjusted operating income:
182		(170	)	207	%	Realized investment gains (losses), net, and related charges and adjustments	(46	)	(29	)	1		143		38
(64	)	—		—		Investment gains (losses) on trading account assets supporting insurance liabilities, net	—		—		50		(322	)	208
33		—		—		Change in experience-rated contractholder liabilities due to asset value changes	—		—		(50	)	183		(100	)
(53	)	(450	)	88	%	Divested businesses	(36	)	265		(21	)	(9	)	(23	)

98		(620	)	116	%	Total items excluded from adjusted operating income, before income taxes	(82	)	236		(20	)	(5	)	123
9		(187	)	105	%	Income taxes, applicable to items excluded from adjusted operating income	24		65		(13	)	(11	)	33

89		(433	)	121	%	Total items excluded from adjusted operating income, after income taxes	(106	)	171		(7	)	6		90

1,423		567		151	%	Income from continuing operations (after-tax) of Financial Services Businesses before extraordinary gain on acquisition and cumulative effect of accounting change	245		502		372		501		550
(8	)	(23	)	65	%	Loss from discontinued operations, net of taxes	(25	)	(21	)	(3	)	(2	)	(3	)
21		—		—		Extraordinary gain on acquisition, net of taxes	—		—		—		20		1
(79	)	—		—		Cumulative effect of accounting change, net of taxes	—		—		(79	)	—		—

1,357		544		149	%	Net income of Financial Services Businesses	220		481		290		519		548

						Earnings per share of Common Stock (diluted):
2.63		1.90				Financial Services Businesses after-tax adjusted operating income	0.68		0.64		0.74		0.97		0.92
						Items excluded from adjusted operating income:
0.34		(0.31	)			Realized investment gains (losses), net, and related charges and adjustments	(0.08	)	(0.06	)	—		0.27		0.07
(0.12	)	—				Investment gains (losses) on trading account assets supporting insurance liabilities, net	—		—		0.09		(0.60	)	0.40
0.06		—				Change in experience-rated contractholder liabilities due to asset value changes	—		—		(0.09	)	0.34		(0.19	)
(0.10	)	(0.82	)			Divested businesses	(0.07	)	0.49		(0.04	)	(0.02	)	(0.05	)

0.18		(1.13	)			Total items excluded from adjusted operating income, before income taxes	(0.15	)	0.43		(0.04	)	(0.01	)	0.23
0.02		(0.34	)			Income taxes, applicable to items excluded from adjusted operating income	0.05		0.12		(0.02	)	(0.02	)	0.06

0.16		(0.79	)			Total items excluded from adjusted operating income, after income taxes	(0.20	)	0.31		(0.02	)	0.01		0.17

2.79		1.11				Income from continuing operations (after-tax) of Financial Services Businesses before extraordinary gain on acquisition and cumulative effect of accounting change	0.48		0.95		0.72		0.98		1.09
(0.01	)	(0.04	)			Income (loss) from discontinued operations, net of taxes	(0.04	)	(0.03	)	—		—		(0.01	)
0.04		—				Extraordinary gain on acquisition, net of taxes	—		—		—		0.04		—
(0.15	)	—				Cumulative effect of accounting change, net of taxes	—		—		(0.15	)	—		—

2.67		1.07				Net income of Financial Services Businesses	0.44		0.92		0.57		1.02		1.08

532.5		550.5				Weighted average number of outstanding Common shares (diluted basis)	545.9		541.9		539.9		532.2		525.7

9.99	%	7.58	%			Operating Return on Average Equity (based on adjusted operating income)	8.06	%	7.51	%	8.61	%	11.14	%	10.23	%

						*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
1,357		544				Net income of Financial Services Businesses (above)	220		481		290		519		548
321		145				Net income of Closed Block Business	77		94		111		30		180

1,678		689				Consolidated net income	297		575		401		549		728

64		45				Direct equity adjustments for earnings per share calculations	19		15		19		23		22

Page 1


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			2003		2004
2004	2003		3Q	4Q	1Q	2Q	3Q
		*Financial Services Businesses Capitalization Data (1):*
		Short-term debt	5,117	4,739	4,603	4,432	6,135
		Long-term debt	4,330	3,860	3,820	4,437	5,708

		Attributed Equity:
		Including accumulated other comprehensive income	20,541	20,340	20,837	19,619	20,457
		Excluding unrealized gains and losses on investments	18,396	18,440	18,520	18,695	18,987
		Excluding accumulated other comprehensive income	18,564	18,563	18,554	18,755	18,995

		Total Capitalization:
		Including accumulated other comprehensive income	24,871	24,200	24,657	24,056	26,165
		Excluding unrealized gains and losses on investments	22,726	22,300	22,340	23,132	24,695
		Excluding accumulated other comprehensive income	22,894	22,423	22,374	23,192	24,703

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	37.81	37.61	38.90	37.11	39.19
		Excluding unrealized gains and losses on investments	33.86	34.10	34.58	35.36	36.37
		Excluding accumulated other comprehensive income	34.17	34.33	34.64	35.47	36.39

		Number of diluted shares at end of period	543.3	540.8	535.6	528.7	522.0

		*Common Stock Price Range (based on closing price):*
48.11	38.06	High	38.06	42.19	48.11	46.47	48.10
41.05	27.56	Low	34.00	36.60	41.62	41.05	44.30
47.04	37.36	Close	37.36	41.77	44.78	46.47	47.04

		*Common Stock market capitalization (1)*	20,202	22,341	23,679	24,209	24,158

(1)	As of end of period.

Page 2


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

OPERATIONS HIGHLIGHTS


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

		Assets Under Management :
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Retail customers	82.1	81.2	78.4	74.4	62.3
		Institutional customers	89.7	94.8	99.9	106.3	108.9
		General account	130.3	127.8	131.2	147.6	152.3

		Total Investment Management and Advisory Services	302.1	303.8	309.5	328.3	323.5

		Non-proprietary assets under management	22.1	22.7	22.3	43.6	43.5

		Total managed by Investment Division	324.2	326.5	331.8	371.9	367.0
		Managed by International Insurance and Investments Division	50.7	53.9	67.6	67.0	67.1
		Managed by Insurance Division	31.4	33.9	35.3	35.3	35.9

		Total assets under management	406.3	414.3	434.7	474.2	470.0
		Client assets under administration	45.2	50.4	52.2	64.6	72.9

		Total assets under management and administration	451.5	464.7	486.9	538.8	542.9

		Assets managed or administered for customers outside of the United States at end of period	81.0	84.9	100.8	97.3	96.4

		*Distribution Representatives (1):*
		Prudential Agents	4,281	4,320	4,147	4,001	3,982
		International Life Planners	4,875	4,989	5,008	5,123	5,234
		Gibraltar Life Advisors	4,848	4,826	4,815	4,888	4,759

38	37	*Prudential Agent productivity ($ thousands)*	38	44	36	40	37

		*Third Party Distribution - Retail Products ($ millions) (3):*
107	62	Individual life insurance (4)	17	49	28	34	45
10	20	Corporate-owned life insurance sales	3	—	6	1	3
3,820	1,882	Individual annuities (5)	1,125	1,166	1,410	1,332	1,078
9,130	3,916	Mutual funds and wrap-fee products (5)	2,517	2,144	2,742	2,386	4,002

(1)	As of end of period.

(2)	At fair market value.

(3)	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.

(4)	Excludes corporate-owned life insurance sales.

(5)

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.

Page 3


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

6,577		5,876		12	%	Premiums	1,950		2,042		2,191		2,210		2,176
1,735		1,448		20	%	Policy charges and fee income	509		553		559		580		596
3,979		3,717		7	%	Net investment income	1,215		1,226		1,246		1,333		1,400
2,497		2,648		-6	%	Commissions, investment management fees, and other income	695		714		709		933		855

14,788		13,689		8	%	Total revenues	4,369		4,535		4,705		5,056		5,027

						Benefits and Expenses (1):

6,699		6,113		10	%	Insurance and annuity benefits	2,023		2,171		2,262		2,217		2,220
1,543		1,263		22	%	Interest credited to policyholders’ account balances	424		428		427		559		557
193		143		35	%	Interest expense	59		57		53		57		83
(1,056	)	(917	)	-15	%	Deferral of acquisition costs	(312	)	(353	)	(364	)	(354	)	(338	)
585		452		29	%	Amortization of acquisition costs	150		81		187		189		209
5,009		5,153		-3	%	General and administrative expenses	1,504		1,661		1,591		1,750		1,668

12,973		12,207		6	%	Total benefits and expenses	3,848		4,045		4,156		4,418		4,399

1,815		1,482		22	%	Adjusted operating income before income taxes	521		490		549		638		628

						Items excluded from adjusted operating income before income taxes:
214		(145	)	248	%	Realized investment gains (losses), net, and related adjustments	(40	)	(11	)	9		155		50
(32	)	(25	)	-28	%	Related charges	(6	)	(18	)	(8	)	(12	)	(12	)

182		(170	)	207	%	Total realized investment gains (losses), net, and related charges and adjustments	(46	)	(29	)	1		143		38

(64	)	—		—		Investment gains (losses) on trading account assets supporting insurance liabilities, net	—		—		50		(322	)	208
33		—		—		Change in experience-rated contractholder liabilities due to asset value changes	—		—		(50	)	183		(100	)
(53	)	(450	)	88	%	Divested businesses	(36	)	265		(21	)	(9	)	(23	)

98		(620	)	116	%	Total items excluded from adjusted operating income before income taxes	(82	)	236		(20	)	(5	)	123

1,913		862		122	%	Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change	439		726		529		633		751
490		295		66	%	Income tax expense (benefit)	194		224		157		132		201

1,423		567		151	%	Income from continuing operations before extraordinary gain on acquisition and cumulative effect of accounting change	245		502		372		501		550

(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.

Page 4


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

COMBINED BALANCE SHEETS - - FINANCIAL SERVICES BUSINESSES

(in millions)


	9/30/2003	12/31/2003	3/31/2004	6/30/2004	9/30/2004
Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $79,964; $79,900; $84,853; $87,800; $89,640)	84,725	84,353	90,479	90,596	93,889
Fixed maturities, held to maturity, at amortized cost (fair value $2,954; $3,084; $2,999; $2,704; $2,633)	2,954	3,068	2,949	2,724	2,607
Trading account assets supporting insurance liabilities, at fair value (1)	83	88	807	11,920	12,695
Other trading account assets, at fair value (1)	3,769	3,214	5,245	3,098	3,222
Equity securities, available for sale, at fair value (cost $950; $1,045; $1,027; $1,271; $1,282)	1,106	1,119	1,164	1,422	1,457
Commercial loans	12,261	12,463	11,508	16,412	16,315
Policy loans	2,732	2,609	2,671	2,608	2,606
Securities purchased under agreements to resell	1,276	1,464	2,086	147	190
Other long-term investments	4,796	4,568	4,143	4,553	4,518
Short-term investments	3,758	4,052	2,913	3,818	2,399

Total investments	117,460	116,998	123,965	137,298	139,898
Cash and cash equivalents	6,252	5,791	5,893	4,053	4,471
Accrued investment income	1,139	1,046	1,137	1,238	1,317
Broker-dealer related receivables	908	1,098	1,072	1,146	1,252
Deferred policy acquisition costs	6,348	6,605	6,665	7,005	6,923
Other assets	14,558	14,320	17,652	49,607	49,573
Separate account assets	101,841	106,680	106,833	103,961	105,621

Total assets	248,506	252,538	263,217	304,308	309,055

Liabilities:
Future policy benefits	44,608	46,003	47,648	46,736	47,574
Policyholders’ account balances	42,766	44,168	47,012	63,236	63,521
Unpaid claims and claim adjustment expenses	3,201	1,687	1,717	1,740	1,775
Securities sold under agreements to repurchase	5,454	5,196	5,536	5,685	4,957
Cash collateral for loaned securities	3,563	3,571	3,361	3,661	2,978
Income taxes payable	2,019	2,234	2,686	2,015	2,427
Broker-dealer related payables	1,951	2,364	2,555	2,230	2,408
Securities sold but not yet purchased	1,620	1,598	2,386	345	503
Short-term debt	5,117	4,739	4,603	4,432	6,135
Long-term debt	4,330	3,860	3,820	4,437	5,708
Other liabilities	11,495	10,098	14,223	46,211	44,991
Separate account liabilities	101,841	106,680	106,833	103,961	105,621

Total liabilities	227,965	232,198	242,380	284,689	288,598

Attributed Equity:
Accumulated other comprehensive income	1,977	1,777	2,283	864	1,462
Other attributed equity	18,564	18,563	18,554	18,755	18,995

Total attributed equity	20,541	20,340	20,837	19,619	20,457

Total liabilities and attributed equity	248,506	252,538	263,217	304,308	309,055

(1)

Page 5


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended September 30, 2004
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,176		845		43		1,292		(4	)
Policy charges and fee income	596		512		31		55		(2	)
Net investment income	1,400		402		619		245		134
Commissions, investment management fees, and other income	855		162		561		121		11

Total revenues	5,027		1,921		1,254		1,713		139

Benefits and Expenses (1):
Insurance and annuity benefits	2,220		959		237		996		28
Interest credited to policyholders’ account balances	557		179		349		29		—
Interest expense	83		10		17		1		55
Deferral of acquisition costs	(338	)	(161	)	(10	)	(184	)	17
Amortization of acquisition costs	209		120		15		89		(15	)
General and administrative expenses	1,668		569		570		530		(1	)

Total benefits and expenses	4,399		1,676		1,178		1,461		84

Adjusted operating income before income taxes	628		245		76		252		55


	Quarter Ended September 30, 2003
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	1,950		779		1		1,170		—
Policy charges and fee income	509		441		17		54		(3	)
Net investment income	1,215		349		516		212		138
Commissions, investment management fees, and other income	695		108		481		85		21

Total revenues	4,369		1,677		1,015		1,521		156

Benefits and Expenses (1):
Insurance and annuity benefits	2,023		918		187		894		24
Interest credited to policyholders’ account balances	424		158		239		27		—
Interest expense	59		1		9		1		48
Deferral of acquisition costs	(312	)	(161	)	(6	)	(157	)	12
Amortization of acquisition costs	150		80		15		69		(14	)
General and administrative expenses	1,504		498		488		464		54

Total benefits and expenses	3,848		1,494		932		1,298		124

Adjusted operating income before income taxes	521		183		83		223		32

(1)

Page 6


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Nine Months Ended September 30, 2004
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	6,577		2,521		82		3,976		(2	)
Policy charges and fee income	1,735		1,482		84		179		(10	)
Net investment income	3,979		1,149		1,726		712		392
Commissions, investment management fees, and other income	2,497		468		1,660		346		23

Total revenues	14,788		5,620		3,552		5,213		403

Benefits and Expenses (1):
Insurance and annuity benefits	6,699		2,850		653		3,132		64
Interest credited to policyholders’ account balances	1,543		532		928		84		(1	)
Interest expense	193		13		27		4		149
Deferral of acquisition costs	(1,056	)	(523	)	(32	)	(549	)	48
Amortization of acquisition costs	585		337		44		247		(43	)
General and administrative expenses	5,009		1,717		1,688		1,562		42

Total benefits and expenses	12,973		4,926		3,308		4,480		259

Adjusted operating income before income taxes	1,815		694		244		733		144


	Nine Months Ended September 30, 2003
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	5,876		2,425		23		3,440		(12	)
Policy charges and fee income	1,448		1,238		54		166		(10	)
Net investment income	3,717		1,075		1,625		610		407
Commissions, investment management fees, and other income	2,648		242		2,201		246		(41	)

Total revenues	13,689		4,980		3,903		4,462		344

Benefits and Expenses (1):
Insurance and annuity benefits	6,113		2,765		601		2,665		82
Interest credited to policyholders’ account balances	1,263		476		708		79		—
Interest expense	143		1		25		2		115
Deferral of acquisition costs	(917	)	(422	)	(21	)	(509	)	35
Amortization of acquisition costs	452		234		51		214		(47	)
General and administrative expenses	5,153		1,344		2,306		1,393		110

Total benefits and expenses	12,207		4,398		3,670		3,844		295

Adjusted operating income before income taxes	1,482		582		233		618		49

(1)

Page 7


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of September 30, 2004
	Total Financial Services Businesses	Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	139,898	31,880	54,323	43,251	10,444
Deferred policy acquisition costs	6,923	3,955	50	3,049	(131	)
Other assets	56,613	3,239	41,481	6,320	5,573
Separate account assets	105,621	63,715	42,954	18	(1,066	)

Total assets	309,055	102,789	138,808	52,638	14,820

Liabilities:
Future policy benefits	47,574	4,920	13,591	28,440	623
Policyholders’ account balances	63,521	18,585	34,350	10,879	(293	)
Debt	11,843	1,366	1,785	831	7,861
Other liabilities	60,039	8,125	39,931	8,401	3,582
Separate account liabilities	105,621	63,715	42,954	18	(1,066	)

Total liabilities	288,598	96,711	132,611	48,569	10,707

Attributed Equity:
Accumulated other comprehensive income	1,462	652	367	404	39
Other attributed equity	18,995	5,426	5,830	3,665	4,074

Total attributed equity	20,457	6,078	6,197	4,069	4,113

Total liabilities and attributed equity	309,055	102,789	138,808	52,638	14,820


	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
Third Quarter 2004

SHORT TERM DEBT

(in millions)


	As of September 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	95	2,418	—	2,513	167	386	—	553
Securities business related	411	1,675	873	2,959	155	1,872	882	2,909
Specified other businesses	—	516	141	657	90	1,052	129	1,271
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1

Total short-term debt - Financial Services Businesses	506	4,614	1,015	6,135	412	3,315	1,012	4,739

*Borrowings by type:*
Long-term debt due within one year	—	57	—	57	—	453	—	453
Commercial paper	506	4,541	—	5,047	412	2,846	—	3,258
Bank borrowings	—	—	538	538	—	—	535	535
Other short-term debt	—	16	476	492	—	16	476	492

Total general obligations	506	4,614	1,014	6,134	412	3,315	1,011	4,738
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1

Total short-term debt - Financial Services Businesses	506	4,614	1,015	6,135	412	3,315	1,012	4,739

Closed Block Business:
Investment related commercial paper borrowings	—	477	—	477	—	—	—	—

(1)	Includes Prudential Funding, LLC.

Page 9


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

LONG TERM DEBT

(in millions)


	As of September 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	1,783		1,356	—	132	3,271	—	3,271
Hybrid notes	—		—	—	—	—	—	—

Total	1,783		1,356	—	132	3,271	—	3,271

The Prudential Insurance Company of America (2):
Surplus notes	692		—	—	—	692	—	692
Long-term fixed and floating rate notes	600		408	—	—	1,008	—	1,008
Commercial paper backed by long-term credit agreements	—		—	—	—	—	—	—

Total	1,292		408	—	—	1,700	—	1,700

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

Total long-term debt of Financial Services Businesses, excluding debt related to Equity Security Units	3,075		1,764	—	132	4,971	57	5,028
Debt related to Equity Security Units (3)	680		—	—	—	680	—	680

Total long-term debt of Financial Services Businesses	3,755		1,764	—	132	5,651	57	5,708

Ratio of long-term and short-term corporate debt to capitalization	14.1	%

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. (1):
Long-term fixed and floating rate notes	670		681	—	141	1,492	—	1,492
Hybrid notes	—		—	—	—	—	—	—

Total	670		681	—	141	1,492	—	1,492

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

Total	1,291		291	—	—	1,582	—	1,582

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

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

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

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

Closed Block Business:

Limited recourse notes of Prudential Holdings, LLC	—		—	—	—	—	1,750	1,750

(1)	Excluding obligations related to Equity Security Units.

(2)	Includes Prudential Funding, LLC.

(3)	The $680 million and $711 million represent the carrying value of the debt associated with the Equity Security Units issued at the time of demutualization.

Page 10


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


Year-to-date				% Change			2003				2004
2004		2003		% Change			3Q		4Q		1Q		2Q		3Q
						Revenues (1):
2,521		2,425		4	%	Premiums	779		797		850		826		845
1,482		1,238		20	%	Policy charges and fee income	441		479		482		488		512
1,149		1,075		7	%	Net investment income	349		371		369		378		402
468		242		93	%	Commissions, investment management fees, and other income	108		145		150		156		162

5,620		4,980		13	%	Total revenues	1,677		1,792		1,851		1,848		1,921

						Benefits and Expenses (1):
2,850		2,765		3	%	Insurance and annuity benefits	918		1,033		970		921		959
532		476		12	%	Interest credited to policyholders’ account balances	158		160		175		178		179
13		1		1200	%	Interest expense	1		(1	)	1		2		10
(523	)	(422	)	-24	%	Deferral of acquisition costs	(161	)	(173	)	(182	)	(180	)	(161	)
337		234		44	%	Amortization of acquisition costs	80		11		108		109		120
1,717		1,344		28	%	General and administrative expenses	498		556		568		580		569

4,926		4,398		12	%	Total benefits and expenses	1,494		1,586		1,640		1,610		1,676

694		582		19	%	Adjusted operating income before income taxes	183		206		211		238		245

(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
Third Quarter 2004

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Quarter Ended September 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	845		111		734		95		16
Policy charges and fee income	512		418		94		261		157
Net investment income	402		259		143		104		155
Commissions, investment management fees, and other income	162		153		9		83		70

Total revenues	1,921		941		980		543		398

Benefits and Expenses (1):
Insurance and annuity benefits	959		214		745		159		55
Interest credited to policyholders’ account balances	179		133		46		42		91
Interest expense	10		7		3		3		4
Deferral of acquisition costs	(161	)	(155	)	(6	)	(72	)	(83	)
Amortization of acquisition costs	120		119		1		75		44
General and administrative expenses (2)	569		426		143		235		191

Total benefits and expenses	1,676		744		932		442		302

Adjusted operating income before income taxes	245		197		48		101		96


	Quarter Ended September 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	779		94		685		77		17
Policy charges and fee income	441		390		51		255		135
Net investment income	349		210		139		100		110
Commissions, investment management fees, and other income	108		100		8		32		68

Total revenues	1,677		794		883		464		330

Benefits and Expenses (1):
Insurance and annuity benefits	918		243		675		193		50
Interest credited to policyholders’ account balances	158		108		50		39		69
Interest expense	1		—		1		—		—
Deferral of acquisition costs	(161	)	(153	)	(8	)	(68	)	(85	)
Amortization of acquisition costs	80		79		1		56		23
General and administrative expenses (2)	498		364		134		169		195

Total benefits and expenses	1,494		641		853		389		252

Adjusted operating income before income taxes	183		153		30		75		78

(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 $4 million for the quarter ended September 30, 2004 and $13 million for the quarter ended September 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
Third Quarter 2004

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Nine Months Ended September 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	2,521		315		2,206		268		47
Policy charges and fee income	1,482		1,241		241		773		468
Net investment income	1,149		733		416		298		435
Commissions, investment management fees, and other income	468		439		29		226		213

Total revenues	5,620		2,728		2,892		1,565		1,163

Benefits and Expenses (1):
Insurance and annuity benefits	2,850		628		2,222		480		148
Interest credited to policyholders’ account balances	532		392		140		122		270
Interest expense	13		9		4		3		6
Deferral of acquisition costs	(523	)	(502	)	(21	)	(224	)	(278	)
Amortization of acquisition costs	337		334		3		213		121
General and administrative expenses (2)	1,717		1,293		424		685		608

Total benefits and expenses	4,926		2,154		2,772		1,279		875

Adjusted operating income before income taxes	694		574		120		286		288


	Nine Months Ended September 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	2,425		318		2,107		267		51
Policy charges and fee income	1,238		1,054		184		767		287
Net investment income	1,075		634		441		302		332
Commissions, investment management fees, and other income	242		219		23		92		127

Total revenues	4,980		2,225		2,755		1,428		797

Benefits and Expenses (1):
Insurance and annuity benefits	2,765		678		2,087		544		134
Interest credited to policyholders’ account balances	476		309		167		113		196
Interest expense	1		(1	)	2		(2	)	1
Deferral of acquisition costs	(422	)	(396	)	(26	)	(219	)	(177	)
Amortization of acquisition costs	234		232		2		172		60
General and administrative expenses (2)	1,344		943		401		526		417

Total benefits and expenses	4,398		1,765		2,633		1,134		631

Adjusted operating income before income taxes	582		460		122		294		166

(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 $20 million for the nine months ended September 30, 2004 and $24 million for the nine months ended September 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
Third Quarter 2004

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

(in millions)


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

				Excluding corporate-owned life insurance:
78		72		Variable life	20		27		26		27		25
119		78		Universal life	24		54		32		39		48
88		81		Term life	26		29		32		28		28

285		231		Total excluding corporate-owned life insurance	70		110		90		94		101
11		20		Corporate-owned life insurance	3		1		6		1		4

296		251		Total	73		111		96		95		105

				ANNUITY SALES AND ACCOUNT VALUES

				Variable Annuities:
43,949		15,338		Beginning total account value	39,780		40,815		43,949		44,858		44,927
4,518		2,870		Sales	1,469		1,548		1,723		1,536		1,259
(3,881	)	(2,501	)	Surrenders and withdrawals	(1,159	)	(1,215	)	(1,352	)	(1,263	)	(1,266	)

637		369		Net sales (redemptions)	310		333		371		273		(7	)
(458	)	(316	)	Benefit payments	(136	)	(133	)	(161	)	(143	)	(154	)

179		53		Net flows	174		200		210		130		(161	)
781		3,257		Change in market value, interest credited, and other	990		3,072		843		84		(146	)
(435	)	(264	)	Policy charges	(129	)	(138	)	(144	)	(145	)	(146	)
—		22,431		Acquisition	—		—		—		—		—

44,474		40,815		Ending total account value	40,815		43,949		44,858		44,927		44,474

				Fixed Annuities:
3,514		3,396		Beginning total account value	3,498		3,523		3,514		3,574		3,722
463		214		Sales	47		33		92		196		175
(146	)	(99	)	Surrenders and withdrawals	(33	)	(42	)	(51	)	(51	)	(44	)

317		115		Net sales (redemptions)	14		(9	)	41		145		131
(124	)	(126	)	Benefit payments	(39	)	(36	)	(45	)	(38	)	(41	)

193		(11	)	Net flows	(25	)	(45	)	(4	)	107		90
156		141		Interest credited and other	51		37		65		42		49
(3	)	(3	)	Policy charges	(1	)	(1	)	(1	)	(1	)	(1	)

3,860		3,523		Ending total account value	3,523		3,514		3,574		3,722		3,860

				SALES BY DISTRIBUTION CHANNEL

				Life Insurance:
				Excluding corporate-owned life insurance:
178		169		Prudential Agents	53		61		62		60		56
107		62		Third party distribution	17		49		28		34		45
11		20		Corporate-owned life insurance	3		1		6		1		4

296		251		Total	73		111		96		95		105

				Variable and Fixed Annuities (1):
1,161		1,097		Prudential Agents	391		415		405		400		356
291		303		Wirehouses	115		89		108		96		87
3,529		1,684		Independent Financial Planners (2)	1,010		1,077		1,302		1,236		991

4,981		3,084		Total	1,516		1,581		1,815		1,732		1,434

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

Page 14


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

INSURANCE DIVISION - INDIVIDUAL LIFE ACCOUNT VALUE ACTIVITY

(in millions)


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

				Policyholders’ Account Balances (1):
4,520		4,112		Beginning balance	4,275		4,373		4,520		4,567		4,742
895		734		Premiums and deposits	248		281		293		295		307
(478	)	(402	)	Surrenders and withdrawals	(137	)	(147	)	(158	)	(161	)	(159	)

417		332		Net sales	111		134		135		134		148
(72	)	(67	)	Benefit payments	(25	)	(20	)	(25	)	(22	)	(25	)

345		265		Net flows	86		114		110		112		123
2		86		Interest credited and other	39		55		(49	)	82		(31	)
43		(10	)	Net transfers (to) from separate account	(1	)	10		18		15		10
(102	)	(80	)	Policy charges	(26	)	(32	)	(32	)	(34	)	(36	)

4,809		4,373		Ending balance	4,373		4,520		4,567		4,742		4,809

				Separate Account Liabilities:
13,981		11,412		Beginning balance	12,511		12,843		13,981		14,246		14,303
1,015		1,106		Premiums and deposits	354		328		331		355		329
(443	)	(466	)	Surrenders and withdrawals	(132	)	(134	)	(145	)	(140	)	(158	)

572		640		Net sales	222		194		186		215		171
(21	)	(18	)	Benefit payments	(5	)	(4	)	(8	)	(6	)	(7	)

551		622		Net flows	217		190		178		209		164
410		1,497		Change in market value, interest credited and other	340		1,181		328		87		(5	)
(126	)	(73	)	Net transfers to general account	(21	)	(29	)	(39	)	(37	)	(50	)
(607	)	(615	)	Policy charges	(204	)	(204	)	(202	)	(202	)	(203	)

14,209		12,843		Ending balance	12,843		13,981		14,246		14,303		14,209

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

Page 15


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

INSURANCE DIVISION - ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


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

				Account Values in General Account (1):
7,660		6,795		Beginning balance	7,457		7,614		7,660		9,675		10,101
860		860		Premiums and deposits	263		209		249		338		273
(647	)	(309	)	Surrenders and withdrawals	(102	)	(120	)	(251	)	(209	)	(187	)

213		551		Net sales (redemptions)	161		89		(2	)	129		86
(240	)	(222	)	Benefit payments	(71	)	(69	)	(82	)	(81	)	(77	)

(27)		329		Net flows	90		20		(84	)	48		9
239		252		Interest credited and other	105		62		22		118		99
2,158		86		Net transfers (to) from separate account (2)	(36	)	(34	)	2,079		261		(182	)
(4	)	(6	)	Policy charges	(2	)	(2	)	(2	)	(1	)	(1	)
—		158		Acquisition	—		—		—		—		—

10,026		7,614		Ending balance	7,614		7,660		9,675		10,101		10,026

				Account Values in Separate Account:
39,803		11,939		Beginning balance	35,821		36,724		39,803		38,757		38,548
4,121		2,224		Premiums and deposits	1,253		1,372		1,566		1,394		1,161
(3,380	)	(2,291	)	Surrenders and withdrawals	(1,090	)	(1,137	)	(1,152	)	(1,105	)	(1,123	)

741		(67	)	Net sales (redemptions)	163		235		414		289		38
(342	)	(220	)	Benefit payments	(104	)	(100	)	(124	)	(100	)	(118	)

399		(287	)	Net flows	59		135		290		189		(80	)
698		3,146		Change in market value, interest credited and other	936		3,047		886		8		(196	)
(2,158	)	(86	)	Net transfers (to) from general account (2)	36		34		(2,079	)	(261	)	182
(434	)	(261	)	Policy charges	(128	)	(137	)	(143	)	(145	)	(146	)
—		22,273		Acquisition	—		—		—		—		—

38,308		36,724		Ending balance	36,724		39,803		38,757		38,548		38,308

(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
Third Quarter 2004

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)


Year-to-date					2003				2004
2004		2003			3Q		4Q		1Q		2Q		3Q
				INDIVIDUAL LIFE INSURANCE:
3,194		3,110		Beginning balance	3,102		3,131		3,194		3,032		3,141
224		219		Capitalization	68		75		77		75		72
(213	)	(172	)	Amortization - operating results	(56	)	(23	)	(70	)	(68	)	(75	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
(193)		(26	)	Impact of unrealized (gains) or losses on AFS securities	17		11		(169	)	103		(127	)

3,012		3,131		Ending balance	3,131		3,194		3,032		3,141		3,012

				INDIVIDUAL ANNUITIES:
636		473		Beginning balance	471		522		636		697		851
278		177		Capitalization	85		90		98		97		83
(121	)	(60	)	Amortization - operating results	(23	)	13		(37	)	(40	)	(44	)
—		(6	)	Amortization - realized investment gains and losses	(3	)	(5	)	1		(3	)	2
40		(62	)	Impact of unrealized (gains) or losses on AFS securities	(8	)	16		(5	)	100		(55	)
4		—		Other (1)	—		—		4		—		—

837		522		Ending balance	522		636		697		851		837

				GROUP INSURANCE (2):
88		57		Beginning balance	74		81		88		94		101
21		26		Capitalization	8		8		7		8		6
(3	)	(2	)	Amortization - operating results	(1	)	(1	)	(1	)	(1	)	(1	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

106		81		Ending balance	81		88		94		101		106

				TOTAL INSURANCE DIVISION:
3,918		3,640		Beginning balance	3,647		3,734		3,918		3,823		4,093
523		422		Capitalization	161		173		182		180		161
(337	)	(234	)	Amortization - operating results	(80	)	(11	)	(108	)	(109	)	(120	)
—		(6	)	Amortization - realized investment gains and losses	(3	)	(5	)	1		(3	)	2
(153	)	(88	)	Impact of unrealized (gains) or losses on AFS securities	9		27		(174	)	203		(182	)
4		—		Other (1)	—		—		4		—		—

3,955		3,734		Ending balance	3,734		3,918		3,823		4,093		3,955

(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
Third Quarter 2004

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


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

				Policy Surrender Experience:

483		506		Cash value of surrenders	154		147		164		152		167

3.5	%	4.0	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.5	%	3.2	%	3.5	%	3.2	%	3.6	%

				Death benefits per $1,000 of in force (1):
2.80		2.56		Variable and universal life	2.40		4.57		2.90		2.86		2.64
1.26		2.60		Term life	4.16		1.65		1.75		0.76		1.43
2.58		2.69		Total, Individual Life Insurance	3.10		3.94		2.75		2.58		2.49

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

Page 18


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


Year-to-date					2003				2004
2004		2003			3Q		4Q		1Q		2Q		3Q
				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
195		153		Group life	30		72		127		34		34
143		120		Group disability (1)	24		24		90		15		38

338		273		Total	54		96		217		49		72

				Future Policy Benefits (2):
				Group life	1,656		1,832		1,780		1,760		1,734
				Group disability (1)	217		224		277		279		291

				Total	1,873		2,056		2,057		2,039		2,025

				Policyholders’ Account Balances (2):
				Group life	4,499		4,341		4,353		4,420		4,412
				Group disability (1)	61		66		59		61		66

				Total	4,560		4,407		4,412		4,481		4,478

				Separate Account Liabilities (2):
				Group life	9,970		10,253		10,476		10,810		11,198
				Group disability (1)	—		—		—		—		—

				Total	9,970		10,253		10,476		10,810		11,198

				Group Life Insurance:
1,924		1,930		Gross premiums, policy charges and fee income (3)	603		612		674		613		637
1,933		1,806		Earned premiums, policy charges and fee income	577		620		647		634		652
89.7	%	91.0	%	Benefits ratio	91.2	%	90.5	%	92.1	%	88.2	%	88.7	%
10.5	%	9.4	%	Administrative operating expense ratio	10.0	%	10.6	%	9.5	%	11.1	%	10.8	%
				Persistency ratio	93.7	%	92.8	%	95.7	%	94.7	%	94.3	%

				Group Disability Insurance (1):
532		497		Gross premiums, policy charges and fee income (3)	165		165		176		174		182
514		485		Earned premiums, policy charges and fee income	159		157		173		165		176
95.3	%	91.3	%	Benefits ratio	93.1	%	95.5	%	95.4	%	95.2	%	95.5	%
21.6	%	21.9	%	Administrative operating expense ratio	22.4	%	24.2	%	21.0	%	21.8	%	22.0	%
				Persistency ratio	87.5	%	85.0	%	90.8	%	89.3	%	87.4	%

(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
Third Quarter 2004

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year-to-date				% Change			2003				2004
2004		2003		% Change			3Q		4Q		1Q		2Q		3Q
						Revenues (1):
82		23		257	%	Premiums	1		6		12		27		43
84		54		56	%	Policy charges and fee income	17		18		18		35		31
1,726		1,625		6	%	Net investment income	516		526		523		584		619
1,660		2,201		-25	%	Commissions, investment management fees, and other income	481		494		477		622		561

3,552		3,903		-9	%	Total revenues	1,015		1,044		1,030		1,268		1,254

						Benefits and Expenses (1):
653		601		9	%	Insurance and annuity benefits	187		190		208		208		237
928		708		31	%	Interest credited to policyholders’ account balances	239		238		226		353		349
27		25		8	%	Interest expense	9		8		9		1		17
(32	)	(21	)	-52	%	Deferral of acquisition costs	(6	)	(8	)	(8	)	(14	)	(10	)
44		51		-14	%	Amortization of acquisition costs	15		15		15		14		15
1,688		2,306		-27	%	General and administrative expenses	488		545		484		634		570

3,308		3,670		-10	%	Total benefits and expenses	932		988		934		1,196		1,178

244		233		5	%	Adjusted operating income before income taxes	83		56		96		72		76

(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
Third Quarter 2004

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Nine Months Ended September 30, 2004								Quarter Ended September 30, 2004
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	82		—		—		82		43		—		—		43
Policy charges and fee income	84		—		—		84		31		—		—		31
Net investment income	1,726		51		1		1,674		619		16		—		603
Commissions, investment management fees, and other income	1,660		995		221		444		561		317		44		200

Total revenues	3,552		1,046		222		2,284		1,254		333		44		877

Benefits and Expenses (1):
Insurance and annuity benefits	653		—		—		653		237		—		—		237
Interest credited to policyholders’ account balances	928		—		—		928		349		—		—		349
Interest expense	27		8		—		19		17		3		—		14
Deferral of acquisition costs	(32	)	(15	)	—		(17	)	(10	)	(4	)	—		(6	)
Amortization of acquisition costs	44		34		—		10		15		11		—		4
General and administrative expenses	1,688		843		392		453		570		265		120		185

Total benefits and expenses	3,308		870		392		2,046		1,178		275		120		783

Adjusted operating income before income taxes	244		176		(170	)	238		76		58		(76	)	94


	Nine Months Ended September 30, 2003								Quarter Ended September 30, 2003
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	23		—		—		23		1		—		—		1
Policy charges and fee income	54		—		—		54		17		—		—		17
Net investment income	1,625		42		53		1,530		516		18		—		498
Commissions, investment management fees, and other income	2,201		939		1,164		98		481		324		122		35

Total revenues	3,903		981		1,217		1,705		1,015		342		122		551

Benefits and Expenses (1):
Insurance and annuity benefits	601		—		—		601		187		—		—		187
Interest credited to policyholders’ account balances	708		—		—		708		239		—		—		239
Interest expense	25		13		—		12		9		6		—		3
Deferral of acquisition costs	(21	)	(14	)	—		(7	)	(6	)	(4	)	—		(2	)
Amortization of acquisition costs	51		42		—		9		15		12		—		3
General and administrative expenses	2,306		800		1,261		245		488		286		120		82

Total benefits and expenses	3,670		841		1,261		1,568		932		300		120		512

Adjusted operating income before income taxes	233		140		(44	)	137		83		42		2		39

(1)

Page 21


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

INVESTMENT DIVISION - SUPPLEMENTARY REVENUE INFORMATION FOR ASSET MANAGEMENT SEGMENT

(dollar amounts in millions unless otherwise noted)


Year-to-date		% Change			2003		2004
2004	2003	% Change			3Q	4Q	1Q	2Q	3Q
				Asset Management Segment:
				Analysis of revenues by source:
				Investment Management and Advisory Services:
161	138	17	%	Retail customers	50	49	54	54	53
318	258	23	%	Institutional customers	92	114	95	117	106
170	161	6	%	General account	56	58	53	59	58

649	557	17	%	Subtotal	198	221	202	230	217
397	424	-6	%	Mutual Fund and other segment revenues (1)	144	158	145	136	116

1,046	981	7	%	Total Asset Management segment revenues	342	379	347	366	333

				Analysis of commissions, investment management fees and other revenues by type:
				Investment Management and Advisory Services:
597	500	19	%	Asset-based fees	173	182	186	209	202
29	35	-17	%	Transaction-based and other revenues	16	33	9	12	8

626	535	17	%	Subtotal	189	215	195	221	210
369	404	-9	%	Mutual Fund and other segment revenues (1)	135	151	136	126	107

995	939	6	%	Total	324	366	331	347	317

(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
Third 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
2004			3Q		4Q		1Q		2Q		3Q
		Information pertaining to Wachovia Securities Financial Holdings, LLC:

		Revenues:
165		Net investment income	53		55		56		55		54
1,680		Commissions	620		626		665		551		464
1,192		Fees	347		360		388		396		408
93		Other non-interest revenues	55		40		41		25		27

3,130		Total revenues	1,075		1,081		1,150		1,027		953
		Expenses:
2,805		Expenses before transition costs	939		948		1,001		929		875
222		Transition costs	41		43		57		66		99

3,027		Total expenses	980		991		1,058		995		974

103		Income (loss) before income taxes	95		90		92		32		(21	)

39		Prudential Financial, Inc., 38% share of Wachovia Securities Financial Holdings, LLC	36		34		35		12		(8	)
(5	)	Purchase accounting and related adjustments	(5	)	(9	)	(3	)	(1	)	(1	)

34		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	31		25		32		11		(9	)

		Recurring revenue as a percentage of total non-interest revenue (1)	38.2	%	38.0	%	39.1	%	41.3	%	47.9	%

		Total client assets ($ in billions) (2)	568.5		603.1		614.9		618.9		615.9

		Distribution representatives (2):
		Series 7 Financial Advisors	8,309		8,192		8,133		8,009		7,964
		Series 6 Financial Representatives	3,316		3,270		3,081		2,871		2,594

		Customer debit balances ($ in billions) (2)	5.6		6.1		6.1		6.3		6.0

(166	)	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	)	(70	)

(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
Third Quarter 2004

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

(in billions)


	September 30, 2004
	Equity	Fixed Income	Real Estate	Total
Retail customers	42.0	19.3	1.0	62.3
Institutional customers	37.8	57.8	13.3	108.9
General account	2.7	148.3	1.3	152.3

Total	82.5	225.4	15.6	323.5


	September 30, 2003
	Equity	Fixed Income	Real Estate	Total
Retail customers	37.9	43.0	1.2	82.1
Institutional customers	27.6	49.3	12.8	89.7
General account	3.0	126.1	1.2	130.3

Total	68.5	218.4	15.2	302.1



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

				Assets gathered by Investment Management & Advisory Services sales force:
69.3		62.0		Beginning assets under management	64.4		65.6		69.3		74.2		74.0
13.6		7.8		Additions to managed portfolio	3.1		5.4		5.6		4.5		3.5
(8.9	)	(8.8	)	Withdrawals	(3.1	)	(3.9	)	(2.8	)	(4.6	)	(1.5	)
2.3		5.5		Change in market value	1.3		2.6		1.6		—		0.7
0.2		(0.9	)	Net money market flows	(0.1	)	(0.4	)	0.5		(0.1	)	(0.2	)

76.5		65.6		Ending assets under management	65.6		69.3		74.2		74.0		76.5
32.4		24.1		Other institutional assets under management	24.1		25.5		25.7		32.3		32.4

108.9		89.7		Total assets managed for institutional customers at end of period	89.7		94.8		99.9		106.3		108.9

Page 24


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

INVESTMENT DIVISION - MUTUAL FUNDS AND WRAP-FEE PRODUCTS

(in millions)


Year-to-date					2003				2004
2004		2003			3Q		4Q		1Q		2Q		3Q
				Mutual Funds Assets Under Management:
46,784		49,756		Beginning total mutual funds assets	51,835		51,016		46,784		44,027		39,774
2,176		3,149		Sales (other than money market)	963		758		873		672		631
(4,070	)	(4,069	)	Redemptions (other than money market)	(1,749	)	(1,385	)	(1,296	)	(1,557	)	(1,217	)
578		3,443		Reinvestment of distributions and change in market value	757		2,447		566		319		(307	)
(15,794	)	(5,395	)	Net money market sales	(790	)	(6,052	)	(2,900	)	(3,687	)	(9,207	)
—		4,132		Acquisition	—		—		—		—		—

29,674		51,016		Ending total mutual funds assets	51,016		46,784		44,027		39,774		29,674

(1,894	)	(920	)	Net mutual funds redemptions other than money market	(786	)	(627	)	(423	)	(885	)	(586	)

				Wrap-fee Products Assets Under Administration (1):
19,833		15,153		Beginning total wrap-fee product assets	16,702		17,960		19,833		21,084		27,728
7,764		4,503		Sales (2)	1,754		1,612		2,154		2,022		3,588
(4,886	)	(3,893	)	Redemptions	(1,370	)	(1,361	)	(1,423	)	(1,578	)	(1,885	)
(187	)	2,197		Reinvestment of distributions and change in market value (2)	874		1,622		520		186		(893	)
13,884		—		Other (3)	—		—		—		6,014		7,870

36,408		17,960		Ending total wrap-fee product assets	17,960		19,833		21,084		27,728		36,408
—		804		Other managed accounts at end of period	804		807		—		—		—

36,408		18,764		Total wrap-fee products and other managed accounts at end of period	18,764		20,640		21,084		27,728		36,408

2,878		610		Net wrap-fee product sales (1)	384		251		731		444		1,703

				MUTUAL FUNDS AND WRAP-FEE PRODUCTS GROSS SALES BY DISTRIBUTION CHANNEL

				Mutual funds, excluding wrap-fee products (4):
300		311		Prudential Agents	93		105		121		107		72
—		826		Financial Advisors	—		—		—		—		—
1,799		1,982		Third party distributors (5)	865		649		727		538		534
77		30		Other	5		4		25		27		25

2,176		3,149		Total	963		758		873		672		631

				Wrap-fee products (1):
433		300		Prudential Agents	102		117		139		174		120
—		2,269		Financial Advisors	—		—		—		—		—
7,331		1,934		Third party distributors (5)	1,652		1,495		2,015		1,848		3,468

7,764		4,503		Total	1,754		1,612		2,154		2,022		3,588

(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 than money market.

(5)

Page 25


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


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

				Defined Contribution:

28,658		22,914		Beginning total account value	24,315		26,766		28,658		28,844		63,841
6,154		4,388		Sales	2,484		791		1,124		2,239		2,791
(7,096	)	(2,521	)	Withdrawals	(613	)	(860	)	(1,535	)	(2,520	)	(3,041	)
1,108		1,985		Change in market value and interest credited	580		1,961		597		621		(110	)
34,657		—		Acquisition (1)	—		—		—		34,657		—

63,481		26,766		Ending total account value	26,766		28,658		28,844		63,841		63,481

(942	)	1,867		Net sales (withdrawals)	1,871		(69	)	(411	)	(281	)	(250	)

				Asset management of ending total account value:
				Proprietary	17,331		18,085		17,797		43,166		42,604
				Non-proprietary	9,435		10,573		11,047		20,675		20,877

				Total	26,766		28,658		28,844		63,841		63,481

				Guaranteed Products:

41,955		39,058		Beginning total account value	40,372		40,727		41,955		42,260		60,365
3,881		2,168		Sales	966		1,088		501		1,704		1,676
(5,276	)	(3,110	)	Withdrawals and benefits	(1,045	)	(903	)	(842	)	(2,321	)	(2,113	)
1,845		2,382		Change in market value and interest income	381		899		1,033		(133	)	945
(704	)	229		Other (2)	53		144		(387	)	(288	)	(29	)
19,143		—		Acquisition	—		—		—		19,143		—

60,844		40,727		Ending total account value	40,727		41,955		42,260		60,365		60,844

(1,395	)	(942	)	Net sales (withdrawals)	(79	)	185		(341	)	(617	)	(437	)

				Product composition of ending total account value (3):
				Spread-based products	18,853		19,606		20,256		23,407		23,396
				Fee-based products	21,874		22,349		22,004		36,958		37,448

				Total	40,727		41,955		42,260		60,365		60,844

(1)	The amount originally reported for the second quarter of 2004 has been adjusted to reflect refinements in the calculation of the acquired account values.

(2)	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.

(3)	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
Third Quarter 2004

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date				% Change			2003				2004
2004		2003		% Change			3Q		4Q		1Q		2Q		3Q
						Revenues (1):
3,976		3,440		16	%	Premiums	1,170		1,236		1,330		1,354		1,292
179		166		8	%	Policy charges and fee income	54		60		63		61		55
712		610		17	%	Net investment income	212		189		231		236		245
346		246		41	%	Commissions, investment management fees, and other income	85		64		94		131		121

5,213		4,462		17	%	Total revenues	1,521		1,549		1,718		1,782		1,713

						Benefits and Expenses (1):
3,132		2,665		18	%	Insurance and annuity benefits	894		949		1,064		1,072		996
84		79		6	%	Interest credited to policyholders’ account balances	27		30		26		29		29
4		2		100	%	Interest expense	1		1		1		2		1
(549	)	(509	)	-8	%	Deferral of acquisition costs	(157	)	(186	)	(190	)	(175	)	(184	)
247		214		15	%	Amortization of acquisition costs	69		70		79		79		89
1,562		1,393		12	%	General and administrative expenses	464		501		519		513		530

4,480		3,844		17	%	Total benefits and expenses	1,298		1,365		1,499		1,520		1,461

733		618		19	%	Adjusted operating income before income taxes	223		184		219		262		252

(1)

Page 27


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Nine Months Ended September 30, 2004							Quarter Ended September 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	3,976		2,191		1,785		—	1,292		742		550		—
Policy charges and fee income	179		120		59		—	55		38		17		—
Net investment income	712		232		450		30	245		82		152		11
Commissions, investment management fees, and other income	346		(18	)	(19	)	383	121		(8	)	(6	)	135

Total revenues	5,213		2,525		2,275		413	1,713		854		713		146

Benefits and Expenses (1):
Insurance and annuity benefits	3,132		1,641		1,491		—	996		539		457		—
Interest credited to policyholders’ account balances	84		12		72		—	29		4		25		—
Interest expense	4		8		(6	)	2	1		2		(2	)	1
Deferral of acquisition costs	(549	)	(382	)	(167	)	—	(184	)	(128	)	(56	)	—
Amortization of acquisition costs	247		190		57		—	89		70		19		—
General and administrative expenses	1,562		667		519		376	530		228		170		132

Total benefits and expenses	4,480		2,136		1,966		378	1,461		715		613		133

Adjusted operating income before income taxes	733		389		309		35	252		139		100		13


	Nine Months Ended September 30, 2003							Quarter Ended September 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	3,440		1,892		1,548		—	1,170		663		507		—
Policy charges and fee income	166		99		67		—	54		34		20		—
Net investment income	610		163		415		32	212		60		143		9
Commissions, investment management fees, and other income	246		(8	)	(3	)	257	85		(7	)	(1	)	93

Total revenues	4,462		2,146		2,027		289	1,521		750		669		102

Benefits and Expenses (1):
Insurance and annuity benefits	2,665		1,405		1,260		—	894		480		414		—
Interest credited to policyholders’ account balances	79		9		70		—	27		3		24		—
Interest expense	2		9		(7	)	—	1		3		(2	)	—
Deferral of acquisition costs	(509	)	(364	)	(145	)	—	(157	)	(111	)	(46	)	—
Amortization of acquisition costs	214		180		34		—	69		54		15		—
General and administrative expenses	1,393		587		538		268	464		210		160		94

Total benefits and expenses	3,844		1,826		1,750		268	1,298		639		565		94

Adjusted operating income before income taxes	618		320		277		21	223		111		104		8

(1)

Page 28


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year ended December 31			2003								2004
2002			1Q		2Q		3Q		4Q		1Q		2Q		3Q
		Japanese Yen Basis Results (1):
		Revenues (2):
¥	216,432	Japanese insurance operations excluding Gibraltar Life	¥	61,138	¥	57,741	¥	62,756	¥	60,461	¥	67,241	¥	61,706	¥	65,655
	336,211	Gibraltar Life		80,020		82,691		79,860		78,142		79,817		90,954		78,986

	552,643	Total revenues, Japan, yen basis		141,158		140,432		142,616		138,603		147,058		152,660		144,641

		Benefits and Expenses (2):
	176,369	Japanese insurance operations excluding Gibraltar Life		50,683		47,465		51,871		48,263		55,265		50,044		52,373
	292,123	Gibraltar Life		70,934		70,468		66,978		66,627		68,819		77,443		67,358

	468,492	Total benefits and expenses, Japan, yen basis		121,617		117,933		118,849		114,890		124,084		127,487		119,731

		Adjusted operating income (3):
	40,063	Japanese insurance operations excluding Gibraltar Life		10,455		10,276		10,885		12,198		11,976		11,662		13,282
	44,088	Gibraltar Life		9,086		12,223		12,882		11,515		10,998		13,511		11,628

¥	84,151	Total adjusted operating income, Japan, yen basis	¥	19,541	¥	22,499	¥	23,767	¥	23,713	¥	22,974	¥	25,173	¥	24,910

		U.S. Dollar adjusted operating income (4):
$	342	Japanese insurance operations excluding Gibraltar Life	$	85	$	84	$	88	$	100	$	103	$	99	$	113
	378	Gibraltar Life		75		98		104		93		94		115		100

	720	Total adjusted operating income, Japan, U.S. dollar basis		160		182		192		193		197		214		213
	37	All other countries		15		25		23		29		18		30		26

$	757	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	175	$	207	$	215	$	222	$	215	$	244	$	239

(1)

Refinements were introduced in the third quarter of 2004 in the reporting, on a yen basis, of revenues and expenses associated with certain intercompany transactions and with trading assets supporting insurance liabilities. Yen-based amounts shown for earlier periods have been reclassified to conform to the current presentation. The reclassification has no impact on U.S. Dollar adjusted operating income.

(2)

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

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

Page 29


Prudential Financial, Inc.
Quarterly Financial Supplement
Third 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		3Q	4Q	1Q	2Q	3Q
		INTERNATIONAL INSURANCE OPERATING DATA:

		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
1,628	1,434	Japan, excluding Gibraltar Life	499	509	580	506	542
1,844	1,615	Gibraltar Life	527	566	597	680	567
683	557	All other countries	198	221	216	229	238

4,155	3,606	Total	1,224	1,296	1,393	1,415	1,347

		Annualized new business premiums:
324	286	Japan, excluding Gibraltar Life	95	112	128	93	103
211	228	Gibraltar Life	75	68	62	81	68
150	149	All other countries	53	61	50	50	50

685	663	Total	223	241	240	224	221

		Constant exchange rate basis (2):

		Net premiums, policy charges and fee income:
1,535	1,465	Japan, excluding Gibraltar Life	505	479	537	482	516
1,730	1,662	Gibraltar Life	540	543	551	642	537
668	553	All other countries	191	219	212	223	233

3,933	3,680	Total	1,236	1,241	1,300	1,347	1,286

		Annualized new business premiums:
309	293	Japan, excluding Gibraltar Life	97	105	119	88	102
198	235	Gibraltar Life	77	64	58	76	64
145	150	All other countries	51	61	49	48	48

652	678	Total	225	230	226	212	214

(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
Third Quarter 2004

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2003				2004
	3Q		4Q		1Q		2Q		3Q
Face amount of individual policies in force at end of period (in billions) (1): (Constant exchange rate basis)
Japan, excluding Gibraltar Life	167		171		176		179		184
Gibraltar Life	222		218		215		210		208
All other countries	58		61		63		66		67

Total	447		450		454		455		459

Number of individual policies in force at end of period (in thousands):
Japan, excluding Gibraltar Life	1,137		1,180		1,231		1,266		1,304
Gibraltar Life	4,334		4,288		4,226		4,149		4,109
All other countries	786		830		863		894		925

Total	6,257		6,298		6,320		6,309		6,338

International insurance policy persistency (2):
13 months	92.9	%	92.8	%	92.7	%	92.6	%	92.8	%
25 months	87.1	%	87.0	%	86.7	%	86.7	%	86.5	%

Number of Life Planners at end of period (3):
Japan	2,293		2,347		2,422		2,447		2,509
All other countries	2,582		2,642		2,586		2,676		2,725

Total	4,875		4,989		5,008		5,123		5,234

(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
Third Quarter 2004

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 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	111,879	35,136	76,743	56.6	%	95,968	29,538	66,430	59.9	%
Public, held to maturity, at amortized cost	2,510	—	2,510	1.8	%	3,010	—	3,010	2.7	%
Private, available for sale, at fair value	31,302	14,431	16,871	12.5	%	32,973	15,052	17,921	16.2	%
Private, held to maturity, at amortized cost	97	—	97	0.1	%	58	—	58	0.1	%
Trading account assets supporting insurance liabilities, at fair value (1)	12,695	—	12,695	9.4	%	88	—	88	0.0	%
Other trading account assets, at fair value (1)	153	—	153	0.1	%	138	—	138	0.2	%
Equity securities, available for sale, at fair value	3,779	2,345	1,434	1.1	%	3,383	2,282	1,101	1.0	%
Commercial loans	23,469	7,154	16,315	12.0	%	18,780	7,006	11,774	10.6	%
Policy loans	8,063	5,457	2,606	1.9	%	8,152	5,543	2,609	2.4	%
Other long-term investments (2)	4,774	1,067	3,707	2.7	%	4,743	1,041	3,702	3.3	%
Short-term investments	4,653	2,254	2,399	1.8	%	7,633	3,581	4,052	3.6	%

Subtotal (3)	203,374	67,844	135,530	100.0	%	174,926	64,043	110,883	100.0	%

Invested assets of other entities and operations (4)	4,368	—	4,368			6,115	—	6,115

Total investments	207,742	67,844	139,898			181,041	64,043	116,998

Fixed Maturities by Credit Quality (3):


		September 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	57,135	2,259	307	59,087	74.5	%	50,133	2,247	210	52,170	75.1	%
2	Baa	16,478	989	66	17,401	22.0	%	13,767	900	91	14,576	21.0	%

	Subtotal Investment Grade	73,613	3,248	373	76,488	96.5	%	63,900	3,147	301	66,746	96.1	%

3	Ba	1,763	163	7	1,919	2.4	%	1,580	167	11	1,736	2.5	%
4	B	696	69	4	761	1.0	%	757	89	3	843	1.2	%
5	C and lower	61	20	1	80	0.1	%	67	30	2	95	0.1	%
6	In or near default	26	5	—	31	0.0	%	34	3	1	36	0.1	%

	Subtotal Below Investment Grade	2,546	257	12	2,791	3.5	%	2,438	289	17	2,710	3.9	%

	Total	76,159	3,505	385	79,279	100.0	%	66,338	3,436	318	69,456	100.0	%


Private Fixed Maturities:

NAIC Rating (5)	Rating Agency Equivalent
1	Aaa, Aa, A	4,490	316	13	4,793	28.2	%	4,647	400	7	5,040	28.0	%
2	Baa	8,714	672	16	9,370	55.2	%	8,749	749	13	9,485	52.6	%

	Subtotal Investment Grade	13,204	988	29	14,163	83.4	%	13,396	1,149	20	14,525	80.6	%

3	Ba	1,688	128	2	1,814	10.7	%	2,004	146	13	2,137	12.1	%
4	B	351	28	5	374	2.2	%	508	38	3	543	3.0	%
5	C and lower	355	51	4	402	2.4	%	552	62	12	602	3.3	%
6	In or near default	214	5	4	215	1.3	%	168	7	3	172	1.0	%

	Subtotal Below Investment Grade	2,608	212	15	2,805	16.6	%	3,232	253	31	3,454	19.4	%

	Total	15,812	1,200	44	16,968	100.0	%	16,628	1,402	51	17,979	100.0	%

(1)

Commencing June 30, 2004, 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 September 30, 2004 and December 31, 2003, respectively, 460 securities with amortized cost of $2,864 million (fair value $2,917 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
Third Quarter 2004

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2004			December 31, 2003
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	28,658	74.6	%	28,488	74.3	%
Public, held to maturity, at amortized cost	2,510	6.5	%	3,010	7.8	%
Private, available for sale, at fair value	722	1.9	%	280	0.7	%
Private, held to maturity, at amortized cost	97	0.2	%	58	0.2	%
Trading account assets supporting insurance liabilities, at fair value (1) (2)	784	2.0	%	88	0.2	%
Other trading account assets, at fair value (1)	28	0.1	%	—	0.0	%
Equity securities, available for sale, at fair value	1,260	3.3	%	934	2.4	%
Commercial loans	2,609	6.8	%	2,922	7.6	%
Policy loans	795	2.1	%	862	2.3	%
Other long-term investments (3)	962	2.5	%	1,291	3.4	%
Short-term investments	14	0.0	%	440	1.1	%

Total	38,439	100.0	%	38,373	100.0	%


	September 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	48,085	49.5	%	37,942	52.4	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	16,149	16.6	%	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)	11,911	12.3	%	—	0.0	%
Other trading account assets, at fair value (1)	125	0.1	%	138	0.2	%
Equity securities, available for sale, at fair value	174	0.2	%	167	0.2	%
Commercial loans	13,706	14.1	%	8,852	12.2	%
Policy loans	1,811	1.9	%	1,747	2.4	%
Other long-term investments (3)	2,745	2.8	%	2,411	3.3	%
Short-term investments	2,385	2.5	%	3,612	5.0	%

Total	97,091	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
Third Quarter 2004

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended September 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	4.52	%	1,012		79		4.69	%	931		25
Equity securities	3.70	%	11		15		2.16	%	5		17
Commercial loans	6.50	%	185		(16	)	6.95	%	198		29
Policy loans	4.99	%	32		—		4.70	%	33		—
Short-term investments and cash equivalents	1.59	%	24		(1	)	2.18	%	31		2
Other investments	8.64	%	126		(40	)	7.95	%	79		(110	)

Gross investment income before investment expenses	4.78	%	1,390		37		4.98	%	1,277		(37	)
Investment expenses	-0.15	%	(70	)	—		-0.12	%	(48	)	—

Subtotal	4.63	%	1,320		37		4.86	%	1,229		(37	)

Investment results of other entities and operations (2)			81		(1	)			17		—
Less, investment income relating to divested businesses			(1	)					(31	)

Total			1,400		36				1,215		(37	)


	Nine Months Ended September 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	%	2,946		118		4.87	%	2,798		(38	)
Equity securities	2.62	%	22		94		1.56	%	12		(79	)
Commercial loans	6.70	%	568		(2	)	7.06	%	598		47
Policy loans	4.77	%	92		—		5.40	%	117		—
Short-term investments and cash equivalents	1.54	%	71		(1	)	2.04	%	84		2
Other investments	8.51	%	301		7		8.21	%	264		(69	)

Gross investment income before investment expenses	4.85	%	4,000		216		5.14	%	3,873		(137	)
Investment expenses	-0.16	%	(185	)	—		-0.16	%	(168	)	—

Subtotal	4.69	%	3,815		216		4.98	%	3,705		(137	)

Investment results of other entities and operations (2)			166		(58	)			109		—
Less, investment income relating to divested businesses			(2	)					(97	)

Total			3,979		158				3,717		(137	)

(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 insure 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 insure 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 insure to contractholders and investment income on assets other than those included in invested assets of the Financial Services Businesses.

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

Page 34


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 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	1.96	%	154		(4	)	1.79	%	128		3
Equity securities	3.49	%	10		2		1.72	%	4		—
Commercial loans	4.18	%	28		5		5.26	%	37		2
Policy loans	3.78	%	7		—		3.13	%	6		—
Short-term investments and cash equivalents	8.36	%	1		(1	)	4.93	%	—		1
Other investments	8.08	%	23		(1	)	5.78	%	22		8

Gross investment income before investment expenses	2.39	%	223		1		2.25	%	197		14
Investment expenses	-0.21	%	(19	)	—		-0.20	%	(19	)	—

Total	2.18	%	204		1		2.05	%	178		14


	Nine Months Ended September 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	1.94	%	458		(12	)	1.77	%	371		12
Equity securities	2.24	%	17		33		1.18	%	8		(96	)
Commercial loans	4.27	%	88		20		4.97	%	110		22
Policy loans	3.26	%	20		—		2.96	%	16		—
Short-term investments and cash equivalents	8.51	%	2		(1	)	1.37	%	1		1
Other investments	8.01	%	70		9		7.64	%	68		—

Gross investment income before investment expenses	2.34	%	655		49		2.27	%	574		(61	)
Investment expenses	-0.21	%	(59	)	—		-0.25	%	(63	)	—

Total	2.13	%	596		49		2.02	%	511		(61	)

(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 insure to contractholders and investment income on assets other than those included in invested assets of the Financial Services Businesses.

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

Page 35


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 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	5.96	%	858		83		6.36	%	803		22
Equity securities	5.27	%	1		13		5.53	%	1		17
Commercial loans	7.22	%	157		(21	)	7.52	%	161		27
Policy loans	5.54	%	25		—		5.29	%	27		—
Short-term investments and cash equivalents	1.55	%	23		—		2.16	%	31		1
Other investments	8.82	%	103		(39	)	7.73	%	57		(118	)

Gross investment income before investment expenses	5.98	%	1,167		36		6.33	%	1,080		(51	)
Investment expenses	-0.12	%	(51	)	—		-0.07	%	(29	)	—

Total	5.86	%	1,116		36		6.26	%	1,051		(51	)


	Nine Months Ended September 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	6.22	%	2,488		130		6.64	%	2,427		(50	)
Equity securities	5.23	%	5		61		2.85	%	4		17
Commercial loans	7.49	%	480		(22	)	7.80	%	488		25
Policy loans	5.50	%	72		—		6.21	%	101		—
Short-term investments and cash equivalents	1.50	%	69		—		2.04	%	83		1
Other investments	8.70	%	231		(2	)	8.80	%	196		(69	)

Gross investment income before investment expenses	6.17	%	3,345		167		6.63	%	3,299		(76	)
Investment expenses	-0.13	%	(126	)	—		-0.11	%	(105	)	—

Total	6.04	%	3,219		167		6.52	%	3,194		(76	)

(1)

(2)

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

Page 36


Prudential Financial, Inc.
Quarterly Financial Supplement
Third 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
Third 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
Third 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 9.76% for the nine months ended September 30, 2004, 3.89% for the nine months ended September 30, 2003, 11.42% for the three months ended September 30, 2004, 4.99% for the three months ended September 30, 2003, 10.36% for the three months ended June 30, 2004, 7.60% for the three months ended March 31, 2004, and 10.12% for the three months ended December 31, 2003.

23. Policy Persistency - Group Insurance:

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

24. Policy Persistency - International Insurance:

13 month persistency represents the percentage of policies issued that are still in force at the beginning of their second policy year. 25 month persistency represents the percentage of policies issued that are still in force at the beginning of their third policy year.

25. Prudential Agents:

Insurance agents in our insurance operations in the United States.

26. Prudential Agent productivity:

Commissions on new sales of all products by Prudential Agents under contract for the entire period, divided by the number of those Prudential Agents. Excludes commissions on new sales by Prudential Agents hired or departed during the period. For interim reporting periods, the productivity measures are annualized.

27. Ratio of corporate debt to total capitalization:

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

28. Redeemable Capital Securities:

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

29. Separate Accounts:

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

30. Wrap-Fee Products:

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

Page 39


Prudential Financial, Inc.
Quarterly Financial Supplement
Third Quarter 2004

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of November 2, 2004


	A.M. Best	Standard & Poor’s	Moody’s	Fitch Ratings
The Prudential Insurance Company of America	A+	A+	Aa3	AA-
PRICOA Global Funding I	NR *	A+	Aa3	NR
PRUCO Life Insurance Company	A+	A+	Aa3	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	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 November 2, 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-	A2	A
Prudential Funding, LLC:
Short-Term Debt	AMB-1	A-1	P-1	F1
Long-Term Senior Debt	a+	A+	A1	A+

*	NR indicates not rated.


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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