February 8, 2005 - QUARTERLY FINANCIAL SUPPLEMENT - 8-K: Current report

Exhibit 99.1

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Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

FOURTH 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. All financial information in this document is unaudited.

February 8, 2005


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth 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

RECLASSIFIED STATEMENTS OF OPERATIONS		37-44

KEY DEFINITIONS AND FORMULAS		45-47

RATINGS AND INVESTOR INFORMATION		48


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

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

Results from the Company’s Dryden Wealth Management business, previously reflected in the International Investments Segment, have been classified as “divested businesses” as a result of the Company’s decision to exit this business.

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

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

iii


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date				% Change			2003		2004
2004		2003		% Change			4Q		1Q		2Q		3Q		4Q
						*Financial Services Businesses:*
						Pre-tax adjusted operating income by division:
991		788		26	%	Insurance Division	206		211		238		245		297
355		289		23	%	Investment Division	56		96		72		76		111
1,003		809		24	%	International Insurance and Investments Division	191		221		269		260		253
158		88		80	%	Corporate and other operations	42		22		64		54		18

2,507		1,974		27	%	Total pre-tax adjusted operating income	495		550		643		635		679
676		645		5	%	Income taxes, applicable to adjusted operating income	164		171		142		168		195

1,831		1,329		38	%	Financial Services Businesses after-tax adjusted operating income	331		379		501		467		484

						Items excluded from adjusted operating income:
24		(199	)	112	%	Realized investment gains (losses), net, and related charges and adjustments	(29	)	1		143		38		(158	)
(43	)	—		—		Investment gains (losses) on trading account assets supporting insurance liabilities, net	—		50		(322	)	208		21
(11	)	—		—		Change in experience-rated contractholder liabilities due to asset value changes	—		(50	)	183		(100	)	(44	)
(105	)	(166	)	37	%	Divested businesses	260		(17	)	(9	)	(22	)	(57	)

(135	)	(365	)	63	%	Total items excluded from adjusted operating income, before income taxes	231		(16	)	(5	)	124		(238	)
(54	)	(119	)	55	%	Income taxes, applicable to items excluded from adjusted operating income	59		(12	)	(8	)	36		(70	)

(81	)	(246	)	67	%	Total items excluded from adjusted operating income, after income taxes	172		(4	)	3		88		(168	)

1,750		1,083		62	%	Income from continuing operations (after-tax) of Financial Services Businesses before extraordinary gain on acquisition and cumulative effect of accounting change	503		375		504		555		316
(18	)	(58	)	69	%	Income (loss) from discontinued operations, net of taxes	(22	)	(6	)	(5	)	(8	)	1
21		—		—		Extraordinary gain on acquisition, net of taxes	—		—		20		1		—
(79	)	—		—		Cumulative effect of accounting change, net of taxes	—		(79	)	—		—		—

1,674		1,025		63	%	Net income of Financial Services Businesses	481		290		519		548		317

						Earnings per share of Common Stock (diluted):
3.61		2.53				Financial Services Businesses after-tax adjusted operating income	0.64		0.74		0.98		0.93		0.96
						Items excluded from adjusted operating income:
0.04		(0.36	)			Realized investment gains (losses), net, and related charges and adjustments	(0.05	)	—		0.27		0.07		(0.30	)
(0.08	)	—				Investment gains (losses) on trading account assets supporting insurance liabilities, net	—		0.09		(0.60	)	0.40		0.04
(0.02	)	—				Change in experience-rated contractholder liabilities due to asset value changes	—		(0.09	)	0.34		(0.19	)	(0.08	)
(0.20	)	(0.30	)			Divested businesses	0.48		(0.03	)	(0.02	)	(0.04	)	(0.11	)

(0.26	)	(0.66	)			Total items excluded from adjusted operating income, before income taxes	0.43		(0.03	)	(0.01	)	0.24		(0.45	)
(0.10	)	(0.21	)			Income taxes, applicable to items excluded from adjusted operating income	0.11		(0.02	)	(0.02	)	0.07		(0.13	)

(0.16	)	(0.45	)			Total items excluded from adjusted operating income, after income taxes	0.32		(0.01	)	0.01		0.17		(0.32	)

3.45		2.08				Income from continuing operations (after-tax) of Financial Services Businesses before extraordinary gain on acquisition and cumulative effect of accounting change	0.96		0.73		0.99		1.10		0.64
(0.03	)	(0.10	)			Income (loss) from discontinued operations, net of taxes	(0.04	)	(0.01	)	(0.01	)	(0.02	)	—
0.04		—				Extraordinary gain on acquisition, net of taxes	—		—		0.04		—		—
(0.15	)	—				Cumulative effect of accounting change, net of taxes	—		(0.15	)	—		—		—

3.31		1.98				Net income of Financial Services Businesses	0.92		0.57		1.02		1.08		0.64

531.2		548.4				Weighted average number of outstanding Common shares (diluted basis)	541.9		539.9		532.2		525.7		527.3

10.16	%	7.55	%			Operating Return on Average Equity (based on adjusted operating income)	7.51	%	8.61	%	11.26	%	10.38	%	10.46	%

						*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
1,674		1,025				Net income of Financial Services Businesses (above)	481		290		519		548		317
582		239				Net income of Closed Block Business	94		111		30		180		261

2,256		1,264				Consolidated net income	575		401		549		728		578

84		60				Direct equity adjustments for earnings per share calculations	15		19		23		22		20

Page 1


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			2003	2004
2004	2003		4Q	1Q	2Q	3Q	4Q
		*Financial Services Businesses Capitalization Data (1):*
		Short-term debt	4,739	4,603	4,432	6,135	3,896
		Long-term debt	3,860	3,820	4,437	5,708	5,877

		Attributed Equity:
		Including accumulated other comprehensive income	20,340	20,837	19,619	20,457	21,149
		Excluding unrealized gains and losses on investments	18,440	18,520	18,695	18,987	19,561
		Excluding accumulated other comprehensive income	18,563	18,554	18,755	18,995	19,392

		Total Capitalization:
		Including accumulated other comprehensive income	24,200	24,657	24,056	26,165	27,026
		Excluding unrealized gains and losses on investments	22,300	22,340	23,132	24,695	25,438
		Excluding accumulated other comprehensive income	22,423	22,374	23,192	24,703	25,269

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	37.61	38.90	37.11	39.19	39.79
		Excluding unrealized gains and losses on investments	34.10	34.58	35.36	36.37	36.80
		Excluding accumulated other comprehensive income	34.33	34.64	35.47	36.39	36.49

		Number of diluted shares at end of period	540.8	535.6	528.7	522.0	531.5

		*Common Stock Price Range (based on closing price):*
55.09	42.19	High	42.19	48.11	46.47	48.10	55.09
41.05	27.56	Low	36.60	41.62	41.05	44.30	42.87
54.96	41.77	Close	41.77	44.78	46.47	47.04	54.96

		*Common Stock market capitalization (1)*	22,341	23,679	24,209	24,158	28,983

(1)	As of end of period.

Page 2


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

OPERATIONS HIGHLIGHTS


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

		Assets Under Management :
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Retail customers	81.2	78.4	74.4	62.3	66.0
		Institutional customers	94.8	99.9	106.3	108.9	119.2
		General account	127.8	131.2	147.6	152.3	152.7

		Total Investment Management and Advisory Services	303.8	309.5	328.3	323.5	337.9

		Non-proprietary assets under management	22.7	22.3	43.6	43.5	44.8

		Total managed by Investment Division	326.5	331.8	371.9	367.0	382.7
		Managed by International Insurance and Investments Division	53.9	67.6	67.0	67.1	77.7
		Managed by Insurance Division	33.9	35.3	35.3	35.9	39.1

		Total assets under management	414.3	434.7	474.2	470.0	499.5
		Client assets under administration	50.4	52.2	64.6	72.9	82.2

		Total assets under management and administration	464.7	486.9	538.8	542.9	581.7

		Assets managed or administered for customers outside of the United States at end of period	84.9	100.8	97.3	96.4	107.0

		*Distribution Representatives (1):*
		Prudential Agents	4,320	4,147	4,001	3,982	3,682
		International Life Planners	4,989	5,008	5,123	5,234	5,385
		Gibraltar Life Advisors	4,826	4,815	4,888	4,759	4,970

42	40	*Prudential Agent productivity ($ thousands)*	44	36	40	37	54

		*Third Party Distribution - Retail Products ($ millions) (3):*
155	111	Individual life insurance (4)	49	28	34	45	48
11	20	Corporate-owned life insurance sales	—	6	1	3	1
4,834	3,048	Individual annuities (5)	1,166	1,410	1,332	1,078	1,014
14,066	6,060	Mutual funds and wrap-fee products (5)	2,144	2,742	2,386	4,002	4,936

(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
Fourth Quarter 2004

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

8,795		7,918		11	%	Premiums	2,042		2,191		2,210		2,176		2,218
2,360		2,001		18	%	Policy charges and fee income	553		559		580		596		625
5,384		4,935		9	%	Net investment income	1,223		1,244		1,330		1,397		1,413
3,446		3,254		6	%	Commissions, investment management fees, and other income	686		676		929		853		988

19,985		18,108		10	%	Total revenues	4,504		4,670		5,049		5,022		5,244

						Benefits and Expenses (1):

8,935		8,284		8	%	Insurance and annuity benefits	2,171		2,262		2,217		2,220		2,236
2,183		1,691		29	%	Interest credited to policyholders’ account balances	428		427		582		580		594
296		200		48	%	Interest expense	57		53		57		83		103
(1,528	)	(1,270	)	-20	%	Deferral of acquisition costs	(353	)	(388	)	(373	)	(360	)	(407	)
766		533		44	%	Amortization of acquisition costs	81		192		190		212		172
6,826		6,696		2	%	General and administrative expenses	1,625		1,574		1,733		1,652		1,867

17,478		16,134		8	%	Total benefits and expenses	4,009		4,120		4,406		4,387		4,565

2,507		1,974		27	%	Adjusted operating income before income taxes	495		550		643		635		679

						Items excluded from adjusted operating income before income taxes:
82		(156	)	153	%	Realized investment gains (losses), net, and related adjustments	(11	)	9		155		50		(132	)
(58	)	(43	)	-35	%	Related charges	(18	)	(8	)	(12	)	(12	)	(26	)

24		(199	)	112	%	Total realized investment gains (losses), net, and related charges and adjustments	(29	)	1		143		38		(158	)

(43	)	—		—		Investment gains (losses) on trading account assets supporting insurance liabilities, net	—		50		(322	)	208		21
(11	)	—		—		Change in experience-rated contractholder liabilities due to asset value changes	—		(50	)	183		(100	)	(44	)
(105	)	(166	)	37	%	Divested businesses	260		(17	)	(9	)	(22	)	(57	)

(135	)	(365	)	63	%	Total items excluded from adjusted operating income before income taxes	231		(16	)	(5	)	124		(238	)

2,372		1,609		47	%	Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change	726		534		638		759		441
622		526		18	%	Income tax expense	223		159		134		204		125

1,750		1,083		62	%	Income from continuing operations before extraordinary gain on acquisition and cumulative effect of accounting change	503		375		504		555		316

(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
Fourth Quarter 2004

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	12/31/2003	3/31/2004	6/30/2004	9/30/2004	12/31/2004
Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $79,900; $84,853; $87,800; $89,640; $97,732)	84,353	90,479	90,596	93,889	102,155
Fixed maturities, held to maturity, at amortized cost (fair value $3,084; $2,999; $2,704; $2,633; $2,765)	3,068	2,949	2,724	2,607	2,747
Trading account assets supporting insurance liabilities, at fair value	88	807	11,920	12,695	12,964
Other trading account assets, at fair value	3,214	5,245	3,098	3,222	1,547
Equity securities, available for sale, at fair value (cost $1,045; $1,027; $1,271; $1,282; $1,473)	1,119	1,164	1,422	1,457	1,663
Commercial loans	12,463	11,508	16,412	16,315	17,092
Policy loans	2,609	2,671	2,608	2,606	2,919
Securities purchased under agreements to resell	1,464	2,086	147	190	127
Other long-term investments	4,568	4,143	4,553	4,518	4,934
Short-term investments	4,052	2,913	3,818	2,399	3,405

Total investments	116,998	123,965	137,298	139,898	149,553
Cash and cash equivalents	5,791	5,893	4,053	4,471	6,164
Accrued investment income	1,046	1,137	1,238	1,317	1,307
Reinsurance recoverable	633	599	35,843	34,825	32,790
Deferred policy acquisition costs	6,605	6,731	7,086	7,022	7,624
Other assets	14,785	18,125	14,910	16,000	16,472
Separate account assets	106,680	106,833	103,961	105,621	115,568

Total assets	252,538	263,283	304,389	309,154	329,478

Liabilities:
Future policy benefits	46,003	47,714	46,817	47,673	52,794
Policyholders’ account balances	44,168	47,012	63,236	63,521	69,668
Unpaid claims and claim adjustment expenses	1,687	1,717	1,740	1,775	1,807
Reinsurance payables	180	180	35,444	34,469	32,386
Securities sold under agreements to repurchase	5,196	5,536	5,685	4,957	4,657
Cash collateral for loaned securities	3,571	3,361	3,661	2,978	4,248
Income taxes payable	2,234	2,686	2,015	2,427	2,741
Securities sold but not yet purchased	1,598	2,386	345	503	427
Short-term debt	4,739	4,603	4,432	6,135	3,896
Long-term debt	3,860	3,820	4,437	5,708	5,877
Other liabilities	12,282	16,598	12,997	12,930	14,260
Separate account liabilities	106,680	106,833	103,961	105,621	115,568

Total liabilities	232,198	242,446	284,770	288,697	308,329

Attributed Equity:
Accumulated other comprehensive income	1,777	2,283	864	1,462	1,757
Other attributed equity	18,563	18,554	18,755	18,995	19,392

Total attributed equity	20,340	20,837	19,619	20,457	21,149

Total liabilities and attributed equity	252,538	263,283	304,389	309,154	329,478

Page 5


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended December 31, 2004
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,218		842		11		1,366		(1	)
Policy charges and fee income	625		534		35		61		(5	)
Net investment income	1,413		422		617		234		140
Commissions, investment management fees, and other income	988		152		746		101		(11	)

Total revenues	5,244		1,950		1,409		1,762		123

Benefits and Expenses (1):
Insurance and annuity benefits	2,236		942		209		1,050		35
Interest credited to policyholders’ account balances	594		176		388		33		(3	)
Interest expense	103		19		21		3		60
Deferral of acquisition costs	(407	)	(168	)	(19	)	(235	)	15
Amortization of acquisition costs	172		66		9		109		(12	)
General and administrative expenses	1,867		618		690		549		10

Total benefits and expenses	4,565		1,653		1,298		1,509		105

Adjusted operating income before income taxes	679		297		111		253		18


	Quarter Ended December 31, 2003
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,042		797		6		1,236		3
Policy charges and fee income	553		479		18		60		(4	)
Net investment income	1,223		371		526		186		140
Commissions, investment management fees, and other income	686		145		494		36		11

Total revenues	4,504		1,792		1,044		1,518		150

Benefits and Expenses (1):
Insurance and annuity benefits	2,171		1,033		190		949		(1	)
Interest credited to policyholders’ account balances	428		160		238		30		—
Interest expense	57		(1	)	8		1		49
Deferral of acquisition costs	(353	)	(173	)	(8	)	(186	)	14
Amortization of acquisition costs	81		11		15		70		(15	)
General and administrative expenses	1,625		556		545		463		61

Total benefits and expenses	4,009		1,586		988		1,327		108

Adjusted operating income before income taxes	495		206		56		191		42

(1)

Page 6


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Twelve Months Ended December 31, 2004
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	8,795		3,363		93		5,342		(3	)
Policy charges and fee income	2,360		2,016		119		240		(15	)
Net investment income	5,384		1,571		2,343		938		532
Commissions, investment management fees, and other income	3,446		620		2,452		362		12

Total revenues	19,985		7,570		5,007		6,882		526

Benefits and Expenses (1):
Insurance and annuity benefits	8,935		3,792		862		4,182		99
Interest credited to policyholders’ account balances	2,183		708		1,362		117		(4	)
Interest expense	296		32		48		7		209
Deferral of acquisition costs	(1,528	)	(691	)	(51	)	(849	)	63
Amortization of acquisition costs	766		403		53		365		(55	)
General and administrative expenses	6,826		2,335		2,378		2,057		56

Total benefits and expenses	17,478		6,579		4,652		5,879		368

Adjusted operating income before income taxes	2,507		991		355		1,003		158


	Twelve Months Ended December 31, 2003
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	7,918		3,222		29		4,676		(9	)
Policy charges and fee income	2,001		1,717		72		226		(14	)
Net investment income	4,935		1,446		2,151		791		547
Commissions, investment management fees, and other income	3,254		387		2,695		202		(30	)

Total revenues	18,108		6,772		4,947		5,895		494

Benefits and Expenses (1):
Insurance and annuity benefits	8,284		3,798		791		3,614		81
Interest credited to policyholders’ account balances	1,691		636		946		109		—
Interest expense	200		—		33		3		164
Deferral of acquisition costs	(1,270	)	(595	)	(29	)	(695	)	49
Amortization of acquisition costs	533		245		66		284		(62	)
General and administrative expenses	6,696		1,900		2,851		1,771		174

Total benefits and expenses	16,134		5,984		4,658		5,086		406

Adjusted operating income before income taxes	1,974		788		289		809		88

(1)

Page 7


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of December 31, 2004
	Total Financial Services Businesses	Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	149,553	31,614	56,219	50,543	11,177
Deferred policy acquisition costs	7,624	4,169	73	3,520	(138	)
Other assets	56,733	3,617	39,135	8,098	5,883
Separate account assets	115,568	69,348	47,301	25	(1,106	)

Total assets	329,478	108,748	142,728	62,186	15,816

Liabilities:
Future policy benefits	52,794	5,166	13,571	33,435	622
Policyholders’ account balances	69,668	18,518	36,490	15,146	(486	)
Debt	9,773	1,161	1,484	407	6,721
Other liabilities	60,526	8,443	37,824	8,739	5,520
Separate account liabilities	115,568	69,348	47,301	25	(1,106	)

Total liabilities	308,329	102,636	136,670	57,752	11,271

Attributed Equity:
Accumulated other comprehensive income (loss)	1,757	680	370	754	(47	)
Other attributed equity	19,392	5,432	5,688	3,680	4,592

Total attributed equity	21,149	6,112	6,058	4,434	4,545

Total liabilities and attributed equity	329,478	108,748	142,728	62,186	15,816


	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	41,039	10,909
Deferred policy acquisition costs	6,605	3,918	23	2,769	(105	)
Other assets	22,255	3,211	8,153	5,416	5,475
Separate account assets	106,680	64,034	43,019	649	(1,022	)

Total assets	252,538	98,211	89,197	49,873	15,257

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	211	5,306
Other liabilities	26,748	6,539	8,599	7,179	4,431
Separate account liabilities	106,680	64,034	43,019	649	(1,022	)

Total liabilities	232,198	91,881	84,832	46,325	9,160

Attributed Equity:
Accumulated other comprehensive income	1,777	632	587	465	93
Other attributed equity	18,563	5,698	3,778	3,083	6,004

Total attributed equity	20,340	6,330	4,365	3,548	6,097

Total liabilities and attributed equity	252,538	98,211	89,197	49,873	15,257

Page 8


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004


SHORT TERM DEBT
(in millions)
	As of December 31, 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	97	5	—	102	—	5	—	5
Investment related	158	521	—	679	167	386	—	553
Securities business related	86	906	1,330	2,322	155	1,872	882	2,909
Specified other businesses	105	548	139	792	90	1,052	129	1,271
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1

Total short-term debt - Financial Services Businesses	446	1,980	1,470	3,896	412	3,315	1,012	4,739

*Borrowings by type:*
Long-term debt due within one year	—	57	—	57	—	453	—	453
Commercial paper	446	1,853	—	2,299	412	2,846	—	3,258
Bank borrowings	—	—	754	754	—	—	535	535
Other short-term debt	—	70	715	785	—	16	476	492

Total general obligations	446	1,980	1,469	3,895	412	3,315	1,011	4,738
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1

Total short-term debt - Financial Services Businesses	446	1,980	1,470	3,896	412	3,315	1,012	4,739

Closed Block Business:
Investment related commercial paper borrowings	—	148	—	148	—	—	—	—

(1)	Includes Prudential Funding, LLC.

Page 9


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

LONG TERM DEBT

(in millions)


	As of December 31, 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.:
Long-term fixed and floating rate notes	2,086		1,366	676	—	4,128	—	4,128
Hybrid notes	—		—	—	—	—	—	—

Total	2,086		1,366	676	—	4,128	—	4,128

The Prudential Insurance Company of America (2):
Surplus notes	692		—	—	—	692	—	692
Long-term fixed and floating rate notes	600		400	—	—	1,000	—	1,000
Commercial paper backed by long-term credit agreements	—		—	—	—	—	—	—

Total	1,292		400	—	—	1,692	—	1,692

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

Total long-term debt of Financial Services Businesses	3,378		1,766	676	—	5,820	57	5,877

Ratio of long-term and short-term corporate debt to capitalization	15.1	%

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 $711 million as of December 31, 2003 represents the carrying value of the debt associated with the Equity Security Units issued at the time of demutualization. As of December 31, 2004 the debt formerly associated with the Equity Security Units is included in “Long-term fixed and floating rate notes” as a result of remarketing this debt.

Page 10


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


Year-to-date				% Change			2003		2004
2004		2003		% Change			4Q		1Q		2Q		3Q		4Q
						Revenues (1):
3,363		3,222		4	%	Premiums	797		850		826		845		842
2,016		1,717		17	%	Policy charges and fee income	479		482		488		512		534
1,571		1,446		9	%	Net investment income	371		369		378		402		422
620		387		60	%	Commissions, investment management fees, and other income	145		150		156		162		152

7,570		6,772		12	%	Total revenues	1,792		1,851		1,848		1,921		1,950

						Benefits and Expenses (1):
3,792		3,798		—		Insurance and annuity benefits	1,033		970		921		959		942
708		636		11	%	Interest credited to policyholders’ account balances	160		175		178		179		176
32		—		—		Interest expense	(1	)	1		2		10		19
(691	)	(595	)	-16	%	Deferral of acquisition costs	(173	)	(182	)	(180	)	(161	)	(168	)
403		245		64	%	Amortization of acquisition costs	11		108		109		120		66
2,335		1,900		23	%	General and administrative expenses	556		568		580		569		618

6,579		5,984		10	%	Total benefits and expenses	1,586		1,640		1,610		1,676		1,653

991		788		26	%	Adjusted operating income before income taxes	206		211		238		245		297

(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
Fourth Quarter 2004

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Quarter Ended December 31, 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	842		123		719		107		16
Policy charges and fee income	534		433		101		265		168
Net investment income	422		277		145		123		154
Commissions, investment management fees, and other income	152		142		10		65		77

Total revenues	1,950		975		975		560		415

Benefits and Expenses (1):
Insurance and annuity benefits	942		234		708		181		53
Interest credited to policyholders’ account balances	176		131		45		43		88
Interest expense	19		15		4		12		3
Deferral of acquisition costs	(168	)	(162	)	(6	)	(87	)	(75	)
Amortization of acquisition costs	66		65		1		61		4
General and administrative expenses (2)	618		449		169		246		203

Total benefits and expenses	1,653		732		921		456		276

Adjusted operating income before income taxes	297		243		54		104		139


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

Total revenues	1,792		857		935		508		349

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

Total benefits and expenses	1,586		698		888		445		253

Adjusted operating income before income taxes	206		159		47		63		96

(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 $10 million for the quarter ended December 31, 2004 and $14 million for the quarter ended December 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
Fourth Quarter 2004

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Twelve Months Ended December 31, 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	3,363		438		2,925		375		63
Policy charges and fee income	2,016		1,674		342		1,038		636
Net investment income	1,571		1,010		561		421		589
Commissions, investment management fees, and other income	620		581		39		291		290

Total revenues	7,570		3,703		3,867		2,125		1,578

Benefits and Expenses (1):
Insurance and annuity benefits	3,792		862		2,930		661		201
Interest credited to policyholders’ account balances	708		523		185		165		358
Interest expense	32		24		8		15		9
Deferral of acquisition costs	(691	)	(664	)	(27	)	(311	)	(353	)
Amortization of acquisition costs	403		399		4		274		125
General and administrative expenses (2)	2,335		1,742		593		931		811

Total benefits and expenses	6,579		2,886		3,693		1,735		1,151

Adjusted operating income before income taxes	991		817		174		390		427


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

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

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

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

Adjusted operating income before income taxes	788		619		169		357		262

(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 $30 million for the twelve months ended December 31, 2004 and $38 million for the twelve months ended December 31, 2003 for the amortization, net of interest, of value of business acquired (VOBA) associated with the May 1, 2003 acquisition of American Skandia.

Page 13


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

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

(in millions)


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

				Excluding corporate-owned life insurance:
97		99		Variable life	27		26		27		25		19
178		132		Universal life	54		32		39		48		59
116		110		Term life	29		32		28		28		28

391		341		Total excluding corporate-owned life insurance	110		90		94		101		106
14		21		Corporate-owned life insurance	1		6		1		4		3

405		362		Total	111		96		95		105		109

				ANNUITY SALES AND ACCOUNT VALUES

				Variable Annuities:
43,949		15,338		Beginning total account value	40,815		43,949		44,858		44,927		44,474
5,806		4,418		Sales	1,548		1,723		1,536		1,259		1,288
(5,224	)	(3,716	)	Surrenders and withdrawals	(1,215	)	(1,352	)	(1,263	)	(1,266	)	(1,343	)

582		702		Net sales (redemptions)	333		371		273		(7	)	(55	)
(613	)	(449	)	Benefit payments	(133	)	(161	)	(143	)	(154	)	(155	)

(31	)	253		Net flows	200		210		130		(161	)	(210	)
4,091		6,329		Change in market value, interest credited, and other	3,072		843		84		(146	)	3,310
(591	)	(402	)	Policy charges	(138	)	(144	)	(145	)	(146	)	(156	)
—		22,431		Acquisition	—		—		—		—		—

47,418		43,949		Ending total account value	43,949		44,858		44,927		44,474		47,418

				Fixed Annuities:
3,514		3,396		Beginning total account value	3,523		3,514		3,574		3,722		3,860
532		247		Sales	33		92		196		175		69
(191	)	(141	)	Surrenders and withdrawals	(42	)	(51	)	(51	)	(44	)	(45	)

341		106		Net sales (redemptions)	(9	)	41		145		131		24
(163	)	(162	)	Benefit payments	(36	)	(45	)	(38	)	(41	)	(39	)

178		(56	)	Net flows	(45	)	(4	)	107		90		(15	)
191		178		Interest credited and other	37		65		42		49		35
(4	)	(4	)	Policy charges	(1	)	(1	)	(1	)	(1	)	(1	)

3,879		3,514		Ending total account value	3,514		3,574		3,722		3,860		3,879

				SALES BY DISTRIBUTION CHANNEL

				Life Insurance:
				Excluding corporate-owned life insurance:
236		230		Prudential Agents	61		62		60		56		58
155		111		Third party distribution	49		28		34		45		48
14		21		Corporate-owned life insurance	1		6		1		4		3

405		362		Total	111		96		95		105		109

				Variable and Fixed Annuities (1):
1,504		1,512		Prudential Agents	415		405		400		356		343
412		392		Wirehouses	89		108		96		87		121
4,422		2,761		Independent Financial Planners (2)	1,077		1,302		1,236		991		893

6,338		4,665		Total	1,581		1,815		1,732		1,434		1,357

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

Page 14


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

INSURANCE DIVISION - INDIVIDUAL LIFE ACCOUNT VALUE ACTIVITY

(in millions)


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

				Policyholders’ Account Balances (1):
4,520		4,112		Beginning balance	4,373		4,520		4,567		4,742		4,809
1,188		1,015		Premiums and deposits	281		293		295		307		293
(635	)	(549	)	Surrenders and withdrawals	(147	)	(158	)	(161	)	(159	)	(157	)

553		466		Net sales	134		135		134		148		136
(96	)	(87	)	Benefit payments	(20	)	(25	)	(22	)	(25	)	(24	)

457		379		Net flows	114		110		112		123		112
105		141		Interest credited and other	55		(49	)	82		(31	)	103
57		—		Net transfers from separate account	10		18		15		10		14
(141	)	(112	)	Policy charges	(32	)	(32	)	(34	)	(36	)	(40	)

4,998		4,520		Ending balance	4,520		4,567		4,742		4,809		4,998

				Separate Account Liabilities:
13,981		11,412		Beginning balance	12,843		13,981		14,246		14,303		14,209
1,333		1,434		Premiums and deposits	328		331		355		329		318
(587	)	(600	)	Surrenders and withdrawals	(134	)	(145	)	(140	)	(158	)	(144	)

746		834		Net sales	194		186		215		171		174
(24	)	(22	)	Benefit payments	(4	)	(8	)	(6	)	(7	)	(3	)

722		812		Net flows	190		178		209		164		171
1,447		2,678		Change in market value, interest credited and other	1,181		328		87		(5	)	1,037
(160	)	(102	)	Net transfers to general account	(29	)	(39	)	(37	)	(50	)	(34	)
(810	)	(819	)	Policy charges	(204	)	(202	)	(202	)	(203	)	(203	)

15,180		13,981		Ending balance	13,981		14,246		14,303		14,209		15,180

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

Page 15


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

INSURANCE DIVISION - ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


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

				Account Values in General Account (1):
7,660		6,795		Beginning balance	7,614		7,660		9,675		10,101		10,026
1,042		1,069		Premiums and deposits	209		249		338		273		182
(810	)	(429	)	Surrenders and withdrawals	(120	)	(251	)	(209	)	(187	)	(163	)

232		640		Net sales (redemptions)	89		(2	)	129		86		19
(318	)	(291	)	Benefit payments	(69	)	(82	)	(81	)	(77	)	(78	)

(86)		349		Net flows	20		(84	)	48		9		(59	)
335		314		Interest credited and other	62		22		118		99		96
1,709		52		Net transfers (to) from separate account (2)	(34	)	2,079		261		(182	)	(449	)
(5	)	(8	)	Policy charges	(2	)	(2	)	(1	)	(1	)	(1	)
—		158		Acquisition	—		—		—		—		—

9,613		7,660		Ending balance	7,660		9,675		10,101		10,026		9,613

				Account Values in Separate Account:
39,803		11,939		Beginning balance	36,724		39,803		38,757		38,548		38,308
5,296		3,596		Premiums and deposits	1,372		1,566		1,394		1,161		1,175
(4,605	)	(3,428	)	Surrenders and withdrawals	(1,137	)	(1,152	)	(1,105	)	(1,123	)	(1,225	)

691		168		Net sales (redemptions)	235		414		289		38		(50	)
(458	)	(320	)	Benefit payments	(100	)	(124	)	(100	)	(118	)	(116	)

233		(152	)	Net flows	135		290		189		(80	)	(166	)
3,947		6,193		Change in market value, interest credited and other	3,047		886		8		(196	)	3,249
(1,709	)	(52	)	Net transfers (to) from general account (2)	34		(2,079	)	(261	)	182		449
(590	)	(398	)	Policy charges	(137	)	(143	)	(145	)	(146	)	(156	)
—		22,273		Acquisition	—		—		—		—		—

41,684		39,803		Ending balance	39,803		38,757		38,548		38,308		41,684

(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
Fourth Quarter 2004

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)


Year-to-date					2003		2004
2004		2003			4Q		1Q		2Q		3Q		4Q
				INDIVIDUAL LIFE INSURANCE:
3,194		3,110		Beginning balance	3,131		3,194		3,032		3,141		3,012
311		294		Capitalization	75		77		75		72		87
(274	)	(195	)	Amortization - operating results	(23	)	(70	)	(68	)	(75	)	(61	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
(80	)	(15	)	Impact of unrealized (gains) or losses on AFS securities	11		(169	)	103		(127	)	113

3,151		3,194		Ending balance	3,194		3,032		3,141		3,012		3,151

				INDIVIDUAL ANNUITIES:
636		473		Beginning balance	522		636		697		851		837
353		267		Capitalization	90		98		97		83		75
(125	)	(47	)	Amortization - operating results	13		(37	)	(40	)	(44	)	(4	)
(2	)	(11	)	Amortization - realized investment gains and losses	(5	)	1		(3	)	2		(2	)
41		(46	)	Impact of unrealized (gains) or losses on AFS securities	16		(5	)	100		(55	)	1
4		—		Other (1)	—		4		—		—		—

907		636		Ending balance	636		697		851		837		907

				GROUP INSURANCE (2):
88		57		Beginning balance	81		88		94		101		106
27		34		Capitalization	8		7		8		6		6
(4	)	(3	)	Amortization - operating results	(1	)	(1	)	(1	)	(1	)	(1	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

111		88		Ending balance	88		94		101		106		111

				TOTAL INSURANCE DIVISION:
3,918		3,640		Beginning balance	3,734		3,918		3,823		4,093		3,955
691		595		Capitalization	173		182		180		161		168
(403	)	(245	)	Amortization - operating results	(11	)	(108	)	(109	)	(120	)	(66	)
(2	)	(11	)	Amortization - realized investment gains and losses	(5	)	1		(3	)	2		(2	)
(39	)	(61	)	Impact of unrealized (gains) or losses on AFS securities	27		(174	)	203		(182	)	114
4		—		Other (1)	—		4		—		—		—

4,169		3,918		Ending balance	3,918		3,823		4,093		3,955		4,169

(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
Fourth Quarter 2004

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


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

				Policy Surrender Experience:

633		653		Cash value of surrenders	147		164		152		167		150

3.3	%	3.8	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.2	%	3.5	%	3.2	%	3.6	%	3.1	%

				Death benefits per $1,000 of in force (1):
2.69		3.02		Variable and universal life	4.57		2.90		2.86		2.64		2.46
1.38		2.49		Term life	1.65		1.75		0.76		1.43		1.67
2.52		3.01		Total, Individual Life Insurance	3.94		2.75		2.58		2.49		2.40

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

Page 18


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


Year-to-date					2003		2004
2004		2003			4Q		1Q		2Q		3Q		4Q
				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
237		225		Group life	72		127		34		34		42
161		144		Group disability (1)	24		90		15		38		18

398		369		Total	96		217		49		72		60

				Future Policy Benefits (2):
				Group life	1,832		1,780		1,760		1,734		1,881
				Group disability (1)	224		277		279		291		302

				Total	2,056		2,057		2,039		2,025		2,183

				Policyholders’ Account Balances (2):
				Group life	4,341		4,353		4,420		4,412		4,566
				Group disability (1)	66		59		61		66		71

				Total	4,407		4,412		4,481		4,478		4,637

				Separate Account Liabilities (2):
				Group life	10,253		10,476		10,810		11,198		12,483
				Group disability (1)	—		—		—		—		—

				Total	10,253		10,476		10,810		11,198		12,483

				Group Life Insurance:
2,686		2,542		Gross premiums, policy charges and fee income (3)	612		674		613		637		762
2,577		2,426		Earned premiums, policy charges and fee income	620		647		634		652		644
88.4	%	90.9	%	Benefits ratio	90.5	%	92.1	%	88.2	%	88.7	%	84.5	%
10.9	%	9.7	%	Administrative operating expense ratio	10.6	%	9.5	%	11.1	%	10.8	%	12.1	%
				Persistency ratio	92.8	%	95.7	%	94.7	%	94.3	%	93.9	%

				Group Disability Insurance (1):
711		662		Gross premiums, policy charges and fee income (3)	165		176		174		182		179
690		642		Earned premiums, policy charges and fee income	157		173		165		176		176
94.6	%	92.4	%	Benefits ratio	95.5	%	95.4	%	95.2	%	95.5	%	92.6	%
22.1	%	22.5	%	Administrative operating expense ratio	24.2	%	21.0	%	21.8	%	22.0	%	23.5	%
				Persistency ratio	85.0	%	90.8	%	89.3	%	87.4	%	85.8	%

(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
Fourth Quarter 2004

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year-to-date				% Change			2003		2004
2004		2003		% Change			4Q		1Q		2Q		3Q		4Q
						Revenues (1):
93		29		221	%	Premiums	6		12		27		43		11
119		72		65	%	Policy charges and fee income	18		18		35		31		35
2,343		2,151		9	%	Net investment income	526		523		584		619		617
2,452		2,695		-9	%	Commissions, investment management fees, and other income	494		477		645		584		746

5,007		4,947		1	%	Total revenues	1,044		1,030		1,291		1,277		1,409

						Benefits and Expenses (1):
862		791		9	%	Insurance and annuity benefits	190		208		208		237		209
1,362		946		44	%	Interest credited to policyholders’ account balances	238		226		376		372		388
48		33		45	%	Interest expense	8		9		1		17		21
(51	)	(29	)	-76	%	Deferral of acquisition costs	(8	)	(8	)	(14	)	(10	)	(19	)
53		66		-20	%	Amortization of acquisition costs	15		15		14		15		9
2,378		2,851		-17	%	General and administrative expenses	545		484		634		570		690

4,652		4,658		—		Total benefits and expenses	988		934		1,219		1,201		1,298

355		289		23	%	Adjusted operating income before income taxes	56		96		72		76		111

(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
Fourth Quarter 2004

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Twelve Months Ended December 31, 2004								Quarter Ended December 31, 2004
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	93		—		—		93		11		—		—		11
Policy charges and fee income	119		—		—		119		35		—		—		35
Net investment income	2,343		69		2		2,272		617		18		1		598
Commissions, investment management fees, and other income	2,452		1,395		316		741		746		400		95		251

Total revenues	5,007		1,464		318		3,225		1,409		418		96		895

Benefits and Expenses (1):
Insurance and annuity benefits	862		—		—		862		209		—		—		209
Interest credited to policyholders’ account balances	1,362		—		—		1,362		388		—		—		388
Interest expense	48		11		—		37		21		3		—		18
Deferral of acquisition costs	(51	)	(19	)	—		(32	)	(19	)	(4	)	—		(15	)
Amortization of acquisition costs	53		43		—		10		9		9		—		—
General and administrative expenses	2,378		1,163		563		652		690		320		171		199

Total benefits and expenses	4,652		1,198		563		2,891		1,298		328		171		799

Adjusted operating income before income taxes	355		266		(245	)	334		111		90		(75	)	96


	Twelve Months Ended December 31, 2003								Quarter Ended December 31, 2003
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	29		—		—		29		6		—		—		6
Policy charges and fee income	72		—		—		72		18		—		—		18
Net investment income	2,151		55		53		2,043		526		13		—		513
Commissions, investment management fees, and other income	2,695		1,305		1,253		137		494		366		89		39

Total revenues	4,947		1,360		1,306		2,281		1,044		379		89		576

Benefits and Expenses (1):
Insurance and annuity benefits	791		—		—		791		190		—		—		190
Interest credited to policyholders’ account balances	946		—		—		946		238		—		—		238
Interest expense	33		16		—		17		8		3		—		5
Deferral of acquisition costs	(29	)	(18	)	—		(11	)	(8	)	(4	)	—		(4	)
Amortization of acquisition costs	66		54		—		12		15		12		—		3
General and administrative expenses	2,851		1,100		1,417		334		545		300		156		89

Total benefits and expenses	4,658		1,152		1,417		2,089		988		311		156		521

Adjusted operating income before income taxes	289		208		(111	)	192		56		68		(67	)	55

(1)

Page 21


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

INVESTMENT DIVISION - SUPPLEMENTARY REVENUE INFORMATION FOR ASSET MANAGEMENT SEGMENT

(in millions)


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

				Analysis of revenues by source:
				Investment Management and Advisory Services:
219	187	17	%	Retail customers	49	54	54	53	58
442	372	19	%	Institutional customers	114	95	117	106	124
234	219	7	%	General account	58	53	59	58	64

895	778	15	%	Subtotal	221	202	230	217	246
569	582	-2	%	Mutual Fund and other segment revenues (1)	158	145	136	116	172

1,464	1,360	8	%	Total Asset Management segment revenues	379	347	366	333	418

				Analysis of commissions, investment management fees and other revenues by type:
				Investment Management and Advisory Services:
812	682	19	%	Asset-based fees	182	186	209	202	215
52	68	-24	%	Transaction-based and other revenues	33	9	12	8	23

864	750	15	%	Subtotal	215	195	221	210	238
531	555	-4	%	Mutual Fund and other segment revenues (1)	151	136	126	107	162

1,395	1,305	7	%	Total	366	331	347	317	400

(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
Fourth Quarter 2004

INVESTMENT DIVISION - SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)


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

		Revenues:
225		Net investment income	55		56		55		55		59
2,196		Commissions	626		665		551		454		526
1,637		Fees	364		393		402		413		429
107		Other non-interest revenues	36		36		19		31		21

4,165		Total revenues	1,081		1,150		1,027		953		1,035
		Expenses:
3,707		Expenses before transition costs	948		1,001		929		875		902
300		Transition costs	43		57		66		99		78

4,007		Total expenses	991		1,058		995		974		980

158		Income (loss) before income taxes	90		92		32		(21	)	55

60		Prudential Financial, Inc., 38% share of Wachovia Securities Financial Holdings, LLC	34		35		12		(8	)	21
(2	)	Purchase accounting and related adjustments	(9	)	(3	)	(1	)	(1	)	3

58		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	25		32		11		(9	)	24

		Recurring revenue as a percentage of total non-interest revenue (1)	38.0	%	39.1	%	41.3	%	47.9	%	43.9	%

		Total client assets ($ in billions) (2)	603.1		614.9		618.9		615.9		652.6

		Distribution representatives (2):
		Series 7 Financial Advisors	8,192		8,133		8,009		7,964		8,017
		Series 6 Financial Representatives	3,270		3,081		2,871		2,594		2,502

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

(249	)	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	(64	)	(17	)	(79	)	(70	)	(83	)

(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
Fourth Quarter 2004

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

(in billions)


	December 31, 2004
	Equity	Fixed Income	Real Estate	Total
Retail customers	45.7	19.3	1.0	66.0
Institutional customers	42.4	62.6	14.2	119.2
General account	3.1	148.4	1.2	152.7

Total	91.2	230.3	16.4	337.9


	December 31, 2003
	Equity	Fixed Income	Real Estate	Total
Retail customers	42.5	37.7	1.0	81.2
Institutional customers	31.2	50.8	12.8	94.8
General account	2.9	123.8	1.1	127.8

Total	76.6	212.3	14.9	303.8


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

				Assets gathered by Investment Management & Advisory Services sales force:
69.3		62.0		Beginning assets under management	65.6		69.3		74.2		74.0		76.5
22.2		13.2		Additions to managed portfolio	5.4		5.6		4.5		3.5		8.6
(12.4	)	(12.7	)	Withdrawals	(3.9	)	(2.8	)	(4.6	)	(1.5	)	(3.5	)
6.1		8.1		Change in market value	2.6		1.6		—		0.7		3.8
(0.4	)	(1.3	)	Net money market flows	(0.4	)	0.5		(0.1	)	(0.2	)	(0.6	)

84.8		69.3		Ending assets under management	69.3		74.2		74.0		76.5		84.8
34.4		25.5		Other institutional assets under management	25.5		25.7		32.3		32.4		34.4

119.2		94.8		Total assets managed for institutional customers at end of period	94.8		99.9		106.3		108.9		119.2

Page 24


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

INVESTMENT DIVISION - MUTUAL FUNDS AND WRAP-FEE PRODUCTS

(in millions)


Year-to-date					2003		2004
2004		2003			4Q		1Q		2Q		3Q		4Q
				Mutual Funds Assets Under Management:
46,784		49,756		Beginning total mutual funds assets	51,016		46,784		44,027		39,774		29,674
3,003		3,907		Sales (other than money market)	758		873		672		631		827
(5,762	)	(5,454	)	Redemptions (other than money market)	(1,385	)	(1,296	)	(1,557	)	(1,217	)	(1,692	)
3,085		5,890		Reinvestment of distributions and change in market value	2,447		566		319		(307	)	2,507
(16,424	)	(11,447	)	Net money market sales	(6,052	)	(2,900	)	(3,687	)	(9,207	)	(630	)
—		4,132		Acquisition	—		—		—		—		—

30,686		46,784		Ending total mutual funds assets	46,784		44,027		39,774		29,674		30,686

(2,759	)	(1,547	)	Net mutual funds redemptions other than money market	(627	)	(423	)	(885	)	(586	)	(865	)

				Wrap-fee Products Assets Under Administration (1):
19,833		15,153		Beginning total wrap-fee product assets	17,960		19,833		21,084		27,728		36,408
12,109		6,115		Sales (2)	1,612		2,154		2,022		3,588		4,345
(7,652	)	(5,254	)	Redemptions	(1,361	)	(1,423	)	(1,578	)	(1,885	)	(2,766	)
3,080		3,819		Reinvestment of distributions and change in market value (2)	1,622		520		186		(893	)	3,267
13,884		—		Other (3)	—		—		6,014		7,870		—

41,254		19,833		Ending total wrap-fee product assets	19,833		21,084		27,728		36,408		41,254
—		807		Other managed accounts at end of period	807		—		—		—		—

41,254		20,640		Total wrap-fee products and other managed accounts at end of period	20,640		21,084		27,728		36,408		41,254

4,457		861		Net wrap-fee product sales (1)	251		731		444		1,703		1,579

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

				Mutual funds, excluding wrap-fee products (4):
376		416		Prudential Agents	105		121		107		72		76
—		826		Financial Advisors	—		—		—		—		—
2,526		2,631		Third party distributors (5)	649		727		538		534		727
101		34		Other	4		25		27		25		24

3,003		3,907		Total	758		873		672		631		827

				Wrap-fee products (1):
569		417		Prudential Agents	117		139		174		120		136
—		2,269		Financial Advisors	—		—		—		—		—
11,540		3,429		Third party distributors (5)	1,495		2,015		1,848		3,468		4,209

12,109		6,115		Total	1,612		2,154		2,022		3,588		4,345

(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
Fourth Quarter 2004

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


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

				Defined Contribution:

28,658		22,914		Beginning total account value	26,766		28,658		28,844		63,841		63,481
8,890		5,179		Sales	791		1,124		2,239		2,791		2,736
(10,421	)	(3,381	)	Withdrawals	(860	)	(1,535	)	(2,520	)	(3,041	)	(3,325	)
4,876		3,946		Change in market value and interest credited	1,961		597		621		(110	)	3,768
34,657		—		Acquisition	—		—		34,657		—		—

66,660		28,658		Ending total account value	28,658		28,844		63,841		63,481		66,660

(1,531	)	1,798		Net sales (withdrawals)	(69	)	(411	)	(281	)	(250	)	(589	)

				Asset management of ending total account value:
				Proprietary	18,085		17,797		43,166		42,604		44,069
				Non-proprietary	10,573		11,047		20,675		20,877		22,591

				Total	28,658		28,844		63,841		63,481		66,660

				Guaranteed Products:

41,955		39,058		Beginning total account value	40,727		41,955		42,260		60,365		60,844
6,114		3,256		Sales	1,088		501		1,704		1,676		2,233
(7,221	)	(4,013	)	Withdrawals and benefits	(903	)	(842	)	(2,321	)	(2,113	)	(1,945	)
3,694		3,281		Change in market value and interest income	899		1,033		(133	)	945		1,849
(539	)	373		Other (1)	144		(387	)	(288	)	(29	)	165
19,143		—		Acquisition	—		—		19,143		—		—

63,146		41,955		Ending total account value	41,955		42,260		60,365		60,844		63,146

(1,107	)	(757	)	Net sales (withdrawals)	185		(341	)	(617	)	(437	)	288

				Product composition of ending total account value (2):
				Spread-based products	19,606		20,256		23,407		23,396		24,244
				Fee-based products	22,349		22,004		36,958		37,448		38,902

				Total	41,955		42,260		60,365		60,844		63,146

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

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

Page 26


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date				% Change			2003		2004
2004		2003		% Change			4Q		1Q		2Q		3Q		4Q
						Revenues (1):
5,342		4,676		14	%	Premiums	1,236		1,330		1,354		1,292		1,366
240		226		6	%	Policy charges and fee income	60		63		61		55		61
938		791		19	%	Net investment income	186		229		233		242		234
362		202		79	%	Commissions, investment management fees, and other income	36		61		104		96		101

6,882		5,895		17	%	Total revenues	1,518		1,683		1,752		1,685		1,762

						Benefits and Expenses (1):
4,182		3,614		16	%	Insurance and annuity benefits	949		1,064		1,072		996		1,050
117		109		7	%	Interest credited to policyholders’ account balances	30		26		29		29		33
7		3		133	%	Interest expense	1		1		2		1		3
(849	)	(695	)	-22	%	Deferral of acquisition costs	(186	)	(214	)	(194	)	(206	)	(235	)
365		284		29	%	Amortization of acquisition costs	70		84		80		92		109
2,057		1,771		16	%	General and administrative expenses	463		501		494		513		549

5,879		5,086		16	%	Total benefits and expenses	1,327		1,462		1,483		1,425		1,509

1,003		809		24	%	Adjusted operating income before income taxes	191		221		269		260		253

(1)

Page 27


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004


COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
(in millions)
	Twelve Months Ended December 31, 2004								Quarter Ended December 31, 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	5,342		3,007		2,335		—		1,366		816		550		—
Policy charges and fee income	240		164		76		—		61		44		17		—
Net investment income	938		309		599		30		234		77		149		8
Commissions, investment management fees, and other income	362		(27	)	(28	)	417		101		(9	)	(9	)	119

Total revenues	6,882		3,453		2,982		447		1,762		928		707		127

Benefits and Expenses (1):
Insurance and annuity benefits	4,182		2,249		1,933		—		1,050		608		442		—
Interest credited to policyholders’ account balances	117		18		99		—		33		6		27		—
Interest expense	7		12		(7	)	2		3		4		(1	)	—
Deferral of acquisition costs	(849	)	(625	)	(224	)	—		(235	)	(178	)	(57	)	—
Amortization of acquisition costs	365		286		79		—		109		87		22		—
General and administrative expenses	2,057		998		700		359		549		275		181		93

Total benefits and expenses	5,879		2,938		2,580		361		1,509		802		614		93

Adjusted operating income before income taxes	1,003		515		402		86		253		126		93		34


	Twelve Months Ended December 31, 2003								Quarter Ended December 31, 2003
	Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments		Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	4,676		2,581		2,095		—		1,236		689		547		—
Policy charges and fee income	226		140		86		—		60		41		19		—
Net investment income	791		233		554		4		186		70		139		(23	)
Commissions, investment management fees, and other income	202		(19	)	(15	)	236		36		(11	)	(12	)	59

Total revenues	5,895		2,935		2,720		240		1,518		789		693		36

Benefits and Expenses (1):
Insurance and annuity benefits	3,614		1,919		1,695		—		949		514		435		—
Interest credited to policyholders’ account balances	109		13		96		—		30		4		26		—
Interest expense	3		12		(9	)	—		1		3		(2	)	—
Deferral of acquisition costs	(695	)	(498	)	(197	)	—		(186	)	(134	)	(52	)	—
Amortization of acquisition costs	284		233		51		—		70		53		17		—
General and administrative expenses	1,771		807		714		250		463		220		176		67

Total benefits and expenses	5,086		2,486		2,350		250		1,327		660		600		67

Adjusted operating income before income taxes	809		449		370		(10	)	191		129		93		(31	)

(1)

Page 28


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2003		2004
2004		2003			4Q		1Q		2Q		3Q		4Q
				Japanese Yen Basis Results:
				Revenues (1):
¥	260,773	¥	242,096	Japanese insurance operations excluding Gibraltar Life	¥	60,461	¥	67,241	¥	61,706	¥	65,655	¥	66,171
	327,763		320,713	Gibraltar Life		78,142		79,817		90,954		78,986		78,006

	588,536		562,809	Total revenues, Japan, yen basis		138,603		147,058		152,660		144,641		144,177

				Benefits and Expenses (1):
	210,934		198,282	Japanese insurance operations excluding Gibraltar Life		48,263		55,265		50,044		52,373		53,252
	280,794		275,007	Gibraltar Life		66,627		68,819		77,443		67,358		67,174

	491,728		473,289	Total benefits and expenses, Japan, yen basis		114,890		124,084		127,487		119,731		120,426

				Adjusted operating income (2):
	49,839		43,814	Japanese insurance operations excluding Gibraltar Life		12,198		11,976		11,662		13,282		12,919
	46,969		45,706	Gibraltar Life		11,515		10,998		13,511		11,628		10,832

¥	96,808	¥	89,520	Total adjusted operating income, Japan, yen basis	¥	23,713	¥	22,974	¥	25,173	¥	24,910	¥	23,751

				U.S. Dollar adjusted operating income (3):
$	426	$	357	Japanese insurance operations excluding Gibraltar Life	$	100	$	103	$	99	$	113	$	111
	402		370	Gibraltar Life		93		94		115		100		93

	828		727	Total adjusted operating income, Japan, U.S. dollar basis		193		197		214		213		204
	89		92	All other countries		29		18		30		26		15

$	917	$	819	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	222	$	215	$	244	$	239	$	219

(1)

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

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

Page 29


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

		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
2,207	1,943	Japan, excluding Gibraltar Life	509	580	506	542	579
2,411	2,181	Gibraltar Life	566	597	680	567	567
964	778	All other countries	221	216	229	238	281

5,582	4,902	Total	1,296	1,393	1,415	1,347	1,427

		Annualized new business premiums:
451	398	Japan, excluding Gibraltar Life	112	128	93	103	127
277	296	Gibraltar Life	68	62	81	68	66
217	210	All other countries	61	50	50	50	67

945	904	Total	241	240	224	221	260

		Constant exchange rate basis (2):

		Net premiums, policy charges and fee income:
2,210	2,081	Japan, excluding Gibraltar Life	512	575	517	553	565
2,418	2,362	Gibraltar Life	582	590	688	575	565
963	808	All other countries	227	220	233	241	269

5,591	5,251	Total	1,321	1,385	1,438	1,369	1,399

		Annualized new business premiums:
450	422	Japan, excluding Gibraltar Life	112	127	94	104	125
278	321	Gibraltar Life	70	62	82	68	66
217	219	All other countries	64	51	51	49	66

945	962	Total	246	240	227	221	257

(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, 2004.

Page 30


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2003		2004
	4Q		1Q		2Q		3Q		4Q
Face amount of individual policies in force at end of period (in billions) (1):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	178		184		188		192		207
Gibraltar Life	228		224		219		217		214
All other countries	70		71		74		76		79

Total	476		479		481		485		500

Number of individual policies in force at end of period (in thousands):
Japan, excluding Gibraltar Life	1,180		1,231		1,266		1,304		1,696
Gibraltar Life	4,288		4,226		4,149		4,109		4,070
All other countries	830		863		894		925		965

Total	6,298		6,320		6,309		6,338		6,731

International insurance policy persistency (2):
13 months	92.8	%	92.7	%	92.6	%	92.8	%	93.0	%
25 months	87.0	%	86.7	%	86.7	%	86.5	%	86.3	%

Number of Life Planners at end of period (3):
Japan	2,347		2,422		2,447		2,509		2,550
All other countries	2,642		2,586		2,676		2,725		2,835

Total	4,989		5,008		5,123		5,234		5,385

(1)	Translated based on exchange rates as of December 31, 2004.

(2)	Excluding Gibraltar Life.

(3)	Excluding Gibraltar Life Advisors.

Page 31


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 31, 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	119,931	34,683	85,248	58.1	%	95,968	29,538	66,430	59.9	%
Public, held to maturity, at amortized cost	2,624	—	2,624	1.8	%	3,010	—	3,010	2.7	%
Private, available for sale, at fair value	30,805	14,130	16,675	11.4	%	32,973	15,052	17,921	16.2	%
Private, held to maturity, at amortized cost	123	—	123	0.1	%	58	—	58	0.1	%
Trading account assets supporting insurance liabilities, at fair value (1)	12,964	—	12,964	8.8	%	88	—	88	0.0	%
Other trading account assets, at fair value (1)	130	—	130	0.1	%	138	—	138	0.2	%
Equity securities, available for sale, at fair value	4,271	2,620	1,651	1.1	%	3,383	2,282	1,101	1.0	%
Commercial loans	24,389	7,297	17,092	11.6	%	18,780	7,006	11,774	10.6	%
Policy loans	8,373	5,454	2,919	2.0	%	8,152	5,543	2,609	2.4	%
Other long-term investments (2)	4,978	1,047	3,931	2.7	%	4,528	1,041	3,487	3.3	%
Short-term investments	5,245	1,840	3,405	2.3	%	7,633	3,581	4,052	3.6	%

Subtotal (3)	213,833	67,071	146,762	100.0	%	174,711	64,043	110,668	100.0	%

Invested assets of other entities and operations (4)	2,791	—	2,791			6,330	—	6,330

Total investments	216,624	67,071	149,553			181,041	64,043	116,998


Fixed Maturities by Credit Quality (3):


	December 31, 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	63,883	2,500	277	66,106	75.2	%	50,133	2,247	210	52,170	75.1	%
2 Baa	17,642	988	123	18,507	21.1	%	13,767	900	91	14,576	21.0	%

Subtotal Investment Grade	81,525	3,488	400	84,613	96.3	%	63,900	3,147	301	66,746	96.1	%

3 Ba	2,110	176	72	2,214	2.5	%	1,580	167	11	1,736	2.5	%
4 B	839	94	2	931	1.1	%	757	89	3	843	1.2	%
5 C and lower	86	13	2	97	0.1	%	67	30	2	95	0.1	%
6 In or near default	25	9	—	34	0.0	%	34	3	1	36	0.1	%

Subtotal Below Investment Grade	3,060	292	76	3,276	3.7	%	2,438	289	17	2,710	3.9	%

Total	84,585	3,780	476	87,889	100.0	%	66,338	3,436	318	69,456	100.0	%

Private Fixed Maturities:
NAIC Rating (5) Rating Agency Equivalent

1 Aaa, Aa, A	4,587	321	19	4,889	29.1	%	4,647	400	7	5,040	28.0	%
2 Baa	8,652	687	25	9,314	55.4	%	8,749	749	13	9,485	52.6	%

Subtotal Investment Grade	13,239	1,008	44	14,203	84.5	%	13,396	1,149	20	14,525	80.6	%

3 Ba	1,506	102	2	1,606	9.6	%	2,004	146	13	2,137	12.1	%
4 B	400	42	3	439	2.6	%	508	38	3	543	3.0	%
5 C and lower	293	32	1	324	1.9	%	552	62	12	602	3.3	%
6 In or near default	224	9	6	227	1.4	%	168	7	3	172	1.0	%

Subtotal Below Investment Grade	2,423	185	12	2,596	15.5	%	3,232	253	31	3,454	19.4	%

Total	15,662	1,193	56	16,799	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 (i) assets of our securities brokerage, securities trading, and banking operations, (ii) assets of our asset management operations, including assets managed for third parties, and (iii) separate account assets for which the customer assumes risks of ownership.

(4)

Includes assets of our securities brokerage, securities trading, banking and asset management operations. Excludes assets of our asset management operations managed for third parties and separate account assets for which the customer assumes risks of ownership. Our investment in Wachovia Securities 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 December 31, 2004 and December 31, 2003, respectively, 206 securities with amortized cost of $2,910 million (fair value $2,972 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
Fourth Quarter 2004

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	December 31, 2004			December 31, 2003
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	34,621	73.1	%	28,488	74.3	%
Public, held to maturity, at amortized cost	2,624	5.5	%	3,010	7.8	%
Private, available for sale, at fair value	778	1.6	%	280	0.7	%
Private, held to maturity, at amortized cost	123	0.3	%	58	0.2	%
Trading account assets supporting insurance liabilities, at fair value (1) (2)	885	1.9	%	88	0.2	%
Other trading account assets, at fair value (1)	71	0.1	%	—	0.0	%
Equity securities, available for sale, at fair value	1,470	3.1	%	934	2.4	%
Commercial loans	3,371	7.1	%	2,922	7.6	%
Policy loans	1,037	2.2	%	862	2.3	%
Other long-term investments (3)	1,375	2.9	%	1,291	3.4	%
Short-term investments	1,031	2.2	%	440	1.1	%

Total	47,386	100.0	%	38,373	100.0	%


	December 31, 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	50,627	51.0	%	37,942	52.2	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	15,897	16.0	%	17,641	24.2	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value (1)	12,079	12.2	%	—	0.0	%
Other trading account assets, at fair value (1)	59	0.0	%	138	0.2	%
Equity securities, available for sale, at fair value	181	0.2	%	167	0.2	%
Commercial loans	13,721	13.8	%	8,852	12.2	%
Policy loans	1,882	1.9	%	1,747	2.4	%
Other long-term investments (3)	2,556	2.5	%	2,196	3.6	%
Short-term investments	2,374	2.4	%	3,612	5.0	%

Total	99,376	100.0	%	72,295	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)	Excludes (i) assets of our securities brokerage, securities trading, and banking operations, (ii) assets of our asset management operations, including assets managed for third parties, and (iii) separate account assets for which the customer assumes risks of ownership.

Page 33


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended December 31
	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	4.46	%	1,030		(4	)	4.50	%	910		(55	)
Equity securities	5.32	%	18		17		1.58	%	4		101
Commercial loans	6.52	%	200		2		7.10	%	205		2
Policy loans	4.63	%	33		—		5.02	%	33		—
Short-term investments and cash equivalents	2.21	%	35		2		1.39	%	20		1
Other investments	8.29	%	98		(142	)	10.39	%	107		(68	)

Gross investment income before investment expenses	4.76	%	1,414		(124	)	4.88	%	1,279		(19	)
Investment expenses	-0.19	%	(81	)	—		-0.16	%	(56	)	—

Subtotal	4.57	%	1,333		(124	)	4.72	%	1,223		(19	)

Investment results of other entities and operations (2)			85		(23	)			12		—
Less, investment income relating to divested businesses			(5	)					(12	)

Total			1,413		(147	)			1,223		(19	)


	Twelve Months Ended December 31
	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	%	3,976		115		4.82	%	3,708		(93	)
Equity securities	3.39	%	40		111		1.54	%	16		22
Commercial loans	6.67	%	768		—		7.15	%	803		49
Policy loans	4.71	%	125		—		5.36	%	150		—
Short-term investments and cash equivalents	1.70	%	106		1		1.84	%	104		3
Other investments	8.60	%	398		(135	)	8.87	%	371		(137	)

Gross investment income before investment expenses	4.85	%	5,413		92		5.12	%	5,152		(156	)
Investment expenses	-0.18	%	(266	)	—		-0.16	%	(224	)	—

Subtotal	4.67	%	5,147		92		4.96	%	4,928		(156	)

Investment results of other entities and operations (2)			251		(81	)			120		—
Less, investment income relating to divested businesses			(14	)					(113	)

Total			5,384		11				4,935		(156	)

(1)

Excludes assets of our securities brokerage operations, securities trading operations, banking operations, commercial loans and trading account assets supporting insurance liabilities where the investment results generally inure to contractholders, assets of our asset management operations, including assets managed for third parties, and separate account assets for which the customer assumes risks of ownership.

(2)	Investment income of securities brokerage, securities trading, banking operations, and commercial loans supporting insurance liabilities where the investment results generally inure to contractholders.

(3)

Yields are annualized, for interim periods, and based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for securities lending activity are calculated net of corresponding liabilities and rebate expenses. Yields exclude investment income and assets related to commercial loans and trading account assets supporting insurance liabilities where the investment results generally inure to contractholders 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
Fourth Quarter 2004

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	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	1.78	%	147		(50	)	1.83	%	139		(98	)
Equity securities	2.30	%	7		7		1.04	%	2		80
Commercial loans	4.14	%	27		2		4.42	%	32		2
Policy loans	3.80	%	8		—		3.16	%	6		—
Short-term investments and cash equivalents	1.42	%	—		2		8.02	%	1		2
Other investments	7.31	%	22		(4	)	7.09	%	23		95

Gross investment income before investment expenses	2.15	%	211		(43	)	2.24	%	203		81
Investment expenses	-0.22	%	(21	)	—		-0.23	%	(20	)	—

Total	1.93	%	190		(43	)	2.01	%	183		81


	Twelve Months Ended December 31
	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	1.89	%	605		(62	)	1.79	%	510		(21	)
Equity securities	2.26	%	24		40		1.13	%	10		(16	)
Commercial loans	4.27	%	115		22		4.85	%	142		24
Policy loans	3.38	%	28		—		3.03	%	22		—
Short-term investments and cash equivalents	2.49	%	2		1		1.79	%	2		3
Other investments	7.71	%	92		5		7.56	%	91		29

Gross investment income before investment expenses	2.29	%	866		6		2.26	%	777		19
Investment expenses	-0.21	%	(80	)	—		-0.24	%	(83	)	—

Total	2.08	%	786		6		2.02	%	694		19

(1)

Yields are annualized, for interim periods, and based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for securities lending activity are calculated net of corresponding liabilities and rebate expenses. Yields exclude investment income and assets related to trading account assets supporting insurance liabilities where the investment results generally inure to contractholders 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
Fourth Quarter 2004

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended December 31
	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	5.99	%	883		47		6.12	%	771		43
Equity securities	35.31	%	11		10		5.57	%	2		21
Commercial loans	7.15	%	173		—		7.98	%	173		—
Policy loans	4.97	%	25		—		5.86	%	27		—
Short-term investments and cash equivalents	2.24	%	35		—		1.34	%	19		(1	)
Other investments	8.63	%	76		(138	)	12.05	%	84		(163	)

Gross investment income before investment expenses	6.07	%	1,203		(81	)	6.30	%	1,076		(100	)
Investment expenses	-0.17	%	(60	)	—		-0.12	%	(36	)	—

Total	5.90	%	1,143		(81	)	6.18	%	1,040		(100	)


	Twelve Months Ended December 31
	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	6.23	%	3,371		177		6.63	%	3,198		(72	)
Equity securities	12.64	%	16		71		3.46	%	6		38
Commercial loans	7.41	%	653		(22	)	7.96	%	661		25
Policy loans	5.32	%	97		—		6.21	%	128		—
Short-term investments and cash equivalents	1.68	%	104		—		1.84	%	102		—
Other investments	8.94	%	306		(140	)	9.42	%	280		(166	)

Gross investment income before investment expenses	6.21	%	4,547		86		6.64	%	4,375		(175	)
Investment expenses	-0.16	%	(186	)	—		-0.12	%	(141	)	—

Total	6.05	%	4,361		86		6.52	%	4,234		(175	)

(1)

(2)

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

Page 36


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date					2003								2004
2001		2002			1Q		2Q		3Q		4Q		1Q		2Q		3Q
				Revenues (1):

6,119		7,334		Premiums	1,973		1,953		1,950		2,042		2,191		2,210		2,176
2,027		1,780		Policy charges and fee income	458		481		509		553		559		580		596
4,998		5,052		Net investment income	1,250		1,249		1,213		1,223		1,244		1,330		1,397
4,156		3,975		Commissions, investment management fees, and other income	872		1,031		665		686		676		929		853

17,300		18,141		Total revenues	4,553		4,714		4,337		4,504		4,670		5,049		5,022

				Benefits and Expenses (1):

6,925		7,793		Insurance and annuity benefits	2,107		1,983		2,023		2,171		2,262		2,217		2,220
1,670		1,707		Interest credited to policyholders’ account balances	418		421		424		428		427		582		580
326		195		Interest expense	42		42		59		57		53		57		83
(935	)	(1,064	)	Deferral of acquisition costs	(285	)	(320	)	(312	)	(353	)	(388	)	(373	)	(360	)
538		739		Amortization of acquisition costs	160		142		150		81		192		190		212
7,609		7,031		General and administrative expenses	1,682		1,919		1,470		1,625		1,574		1,733		1,652

16,133		16,401		Total benefits and expenses	4,124		4,187		3,814		4,009		4,120		4,406		4,387

1,167		1,740		Adjusted operating income before income taxes	429		527		523		495		550		643		635

				Items excluded from adjusted operating income before income taxes:
(165	)	(872	)	Realized investment gains (losses), net, and related adjustments	(114	)	9		(40	)	(11	)	9		155		50
26		6		Related charges	1		(20	)	(6	)	(18	)	(8	)	(12	)	(12	)

(139	)	(866	)	Total realized investment gains (losses), net, and related charges and adjustments	(113	)	(11	)	(46	)	(29	)	1		143		38

—		—		Investment gains (losses) on trading account assets supporting insurance liabilities, net	—		—		—		—		50		(322	)	208
—		—		Change in experience-rated contractholder liabilities due to asset value changes	—		—		—		—		(50	)	183		(100	)
—		(20	)	Sales practices remedies and costs	—		—		—		—		—		—		—
54		(15	)	Divested businesses	(2	)	(403	)	(21	)	260		(17	)	(9	)	(22	)
(588	)	—		Demutualization costs and expenses	—		—		—		—		—		—		—

(673	)	(901	)	Total items excluded from adjusted operating income before income taxes	(115	)	(414	)	(67	)	231		(16	)	(5	)	124

494		839		Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change	314		113		456		726		534		638		759
130		84		Income tax expense	102		1		200		223		159		134		204

364		755		Income from continuing operations before extraordinary gain on acquisition and cumulative effect of accounting change	212		112		256		503		375		504		555

(1)

Page 37


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year-to-date				2003								2004
2001	2002			1Q		2Q		3Q		4Q		1Q		2Q		3Q
			Revenues (1) :
20	77		Premiums	14		8		1		6		12		27		43
80	71		Policy charges and fee income	18		19		17		18		18		35		31
2,460	2,298		Net investment income	556		553		516		526		523		584		619
4,008	3,675		Commissions, investment management fees, and other income	814		906		481		494		477		645		584

6,568	6,121		Total revenues	1,402		1,486		1,015		1,044		1,030		1,291		1,277

			Benefits and Expenses (1):
913	880		Insurance and annuity benefits	210		204		187		190		208		208		237
977	978		Interest credited to policyholders’ account balances	236		233		239		238		226		376		372
32	30		Interest expense	8		8		9		8		9		1		17
(60)	(44	)	Deferral of acquisition costs	(7	)	(8	)	(6	)	(8	)	(8	)	(14	)	(10	)
86	92		Amortization of acquisition costs	19		17		15		15		15		14		15
4,454	3,903		General and administrative expenses	863		955		488		545		484		634		570

6,402	5,839		Total benefits and expenses	1,329		1,409		932		988		934		1,219		1,201

166	282		Adjusted operating income before income taxes	73		77		83		56		96		72		76

(1)

Page 38


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - RETIREMENT SEGMENT

(in millions)


Year-to-date				2003								2004
2001	2002			1Q		2Q		3Q		4Q		1Q		2Q		3Q
			Revenues (1) :
20	77		Premiums	14		8		1		6		12		27		43
80	71		Policy charges and fee income	18		19		17		18		18		35		31
2,148	2,090		Net investment income	517		515		498		513		506		565		603
146	137		Commissions, investment management fees and other income	32		31		35		39		41		226		223

2,394	2,375		Total revenues	581		573		551		576		577		853		900

			Benefits and Expenses (1):
913	880		Insurance and annuity benefits	210		204		187		190		208		208		237
977	978		Interest created to policyholders’ account balances	236		233		239		238		226		376		372
13	18		Interest expense	5		4		3		5		2		3		14
(12)	(12	)	Deferral of acquisition costs	(2	)	(3	)	(2	)	(4	)	(2	)	(9	)	(6	)
10	20		Amortization of acquisition costs	3		3		3		3		3		3		4
383	350		General and administrative expenses	76		87		82		89		88		180		185

2,284	2,234		Total benefits and expenses	528		528		512		521		525		761		806

110	141		Adjusted operating income before income taxes	53		45		39		55		52		92		94

(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 39


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date					2003								2004
2001		2002			1Q		2Q		3Q		4Q		1Q		2Q		3Q
				Revenues (1):
3,337		4,137		Premiums	1,141		1,129		1,170		1,236		1,330		1,354		1,292
307		204		Policy charges and fee income	54		58		54		60		63		61		55
474		713		Net investment income	191		204		210		186		229		233		242
245		264		Commissions, investment management fees, and other income	52		59		55		36		61		104		96

4,363		5,318		Total revenues	1,438		1,450		1,489		1,518		1,683		1,752		1,685

				Benefits and Expenses (1):
2,674		3,278		Insurance and annuity benefits	906		865		894		949		1,064		1,072		996
72		96		Interest credited to policyholders’ account balances	25		27		27		30		26		29		29
4		1		Interest expense	—		1		1		1		1		2		1
(539	)	(630	)	Deferral of acquisition costs	(177	)	(175	)	(157	)	(186	)	(214	)	(194	)	(206	)
164		234		Amortization of acquisition costs	74		71		69		70		84		80		92
1,419		1,582		General and administrative expenses	433		445		430		463		501		494		513

3,794		4,561		Total benefits and expenses	1,261		1,234		1,264		1,327		1,462		1,483		1,425

569		757		Adjusted operating income before income taxes	177		216		225		191		221		269		260

(1)

Page 40


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE SEGMENT

(in millions)


Year-to-date					2003								2004
2001		2002			1Q		2Q		3Q		4Q		1Q		2Q		3Q
				Revenues (1):
3,337		4,137		Premiums	1,141		1,129		1,170		1,236		1,330		1,354		1,292
307		204		Policy charges and fee income	54		58		54		60		63		61		55
450		682		Net investment income	181		194		203		209		222		226		234
52		50		Commissions, investment management fees, and other income	(3	)	—		(8	)	(23	)	(19	)	(4	)	(14	)

4,146		5,073		Total revenues	1,373		1,381		1,419		1,482		1,596		1,637		1,567

				Benefits and Expenses (1):
2,674		3,278		Insurance and annuity benefits	906		865		894		949		1,064		1,072		996
72		96		Interest credited to policyholders’ account balances	25		27		27		30		26		29		29
4		1		Interest expense	—		1		1		1		—		2		—
(539	)	(630	)	Deferral of acquisition costs	(177	)	(175	)	(157	)	(186	)	(214	)	(194	)	(206	)
163		233		Amortization of acquisition costs	74		71		69		70		84		80		92
1,161		1,338		General and administrative expenses	370		385		370		396		421		404		417

3,535		4,316		Total benefits and expenses	1,198		1,174		1,204		1,260		1,381		1,393		1,328

611		757		Adjusted operating income before income taxes	175		207		215		222		215		244		239

(1)

Page 41


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE excluding GIBRALTAR LIFE

(in millions)


Year-to-date					2003								2004
2001		2002			1Q		2Q		3Q		4Q		1Q		2Q		3Q
				Revenues (1):
1,832		2,083		Premiums	626		603		663		689		752		697		742
102		108		Policy charges and fee income	33		32		34		41		44		38		38
146		182		Net investment income	49		54		60		70		72		78		82
40		6		Commissions, investment management fees, and other income	(1	)	—		(7	)	(11	)	(10	)	—		(8	)

2,120		2,379		Total revenues	707		689		750		789		858		813		854

				Benefits and Expenses (1):
1,383		1,548		Insurance and annuity benefits	474		451		480		514		573		529		539
5		7		Interest credited to policyholders’ account balances	3		3		3		4		4		4		4
5		4		Interest expense	3		3		3		3		3		3		2
(458	)	(468	)	Deferral of acquisition costs	(130	)	(123	)	(111	)	(134	)	(159	)	(138	)	(150	)
154		210		Amortization of acquisition costs	64		62		54		53		69		57		73
682		699		General and administrative expenses	193		184		210		220		247		229		247

1,771		2,000		Total benefits and expenses	607		580		639		660		737		684		715

349		379		Adjusted operating income before income taxes	100		109		111		129		121		129		139

(1)

Page 42


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INVESTMENTS SEGMENT

(in millions)


Year-to-date				2003					2004
2001		2002		1Q	2Q	3Q	4Q		1Q	2Q	3Q
			Revenues (1):
—		—	Premiums	—	—	—	—		—	—	—
—		—	Policy charges and fee income	—	—	—	—		—	—	—
24		31	Net investment income	10	10	7	(23	)	7	7	8
193		214	Commissions, investment management fees, and other income	55	59	63	59		80	108	110

217		245	Total revenues	65	69	70	36		87	115	118

			Benefits and Expenses (1):
—		—	Insurance and annuity benefits	—	—	—	—		—	—	—
—		—	Interest credited to policyholders’ account balances	—	—	—	—		—	—	—
—		—	Interest expense	—	—	—	—		1	—	1
—		—	Deferral of acquisition costs	—	—	—	—		—	—	—
1		1	Amortization of acquisition costs	—	—	—	—		—	—	—
258		244	General and administrative expenses	63	60	60	67		80	90	96

259		245	Total benefits and expenses	63	60	60	67		81	90	97

(42	)	—	Adjusted operating income before income taxes	2	9	10	(31	)	6	25	21

(1)

Page 43


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS

(in millions)


Year-to-date					2003								2004
2001		2002			1Q		2Q		3Q		4Q		1Q		2Q		3Q
				Revenues (1):
41		(3	)	Premiums	(6	)	(6	)	—		3		(1	)	3		(4	)
(7	)	(19	)	Policy charges and fee income	(3	)	(4	)	(3	)	(4	)	(4	)	(4	)	(2	)
686		622		Net investment income	143		126		138		140		123		135		134
(307	)	(180	)	Commissions, investment management fees, and other income	(47	)	(15	)	21		11		(12	)	24		11

413		420		Total revenues	87		101		156		150		106		158		139

				Benefits and Expenses (1):
39		101		Insurance and annuity benefits	35		23		24		(1	)	20		16		28
1		—		Interest credited to policyholders’ account balances	—		—		—		—		—		(1	)	—
289		161		Interest expense	34		33		48		49		42		52		55
82		62		Deferral of acquisition costs	11		12		12		14		16		15		17
(82	)	(85	)	Amortization of acquisition costs	(18	)	(15	)	(14	)	(15	)	(15	)	(13	)	(15	)
111		25		General and administrative expenses	9		50		54		61		21		25		—

440		264		Total benefits and expenses	71		103		124		108		84		94		85

(27	)	156		Adjusted operating income before income taxes	16		(2	)	32		42		22		64		54

(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 44


Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth 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; net 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 does not equate to “Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change” as determined in accordance with GAAP but is the measure of profit or loss we use to evaluate segment performance. Adjusted operating income should not be viewed as a substitute for 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.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth 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.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth 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 8.95% for the twelve months ended December 31, 2004, 5.48% for the twelve months ended December 31, 2003, 6.46% for the three months ended December 31, 2004, 10.14% for the three months ended December 31, 2003, 11.52% for the three months ended September 30, 2004, 10.42% for the three months ended June 30, 2004, and 7.65% for the three months ended March 31, 2004.

23. Policy Persistency - Group Insurance:

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

24. Policy Persistency - International Insurance:

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

25. Prudential Agents:

Insurance agents in our insurance operations in the United States.

26. Prudential Agent productivity:

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

27. Ratio of corporate debt to total capitalization:

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

28. 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.

29. 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.

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Prudential Financial, Inc.
Quarterly Financial Supplement
Fourth Quarter 2004

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of February 8, 2005


	A.M. Best	Standard & Poor’s	Moody’s	Fitch Ratings
The Prudential Insurance Company of America	A+	AA-	Aa3	AA-
PRICOA Global Funding I	NR *	AA-	Aa3	AA-
PRUCO Life Insurance Company	A+	AA-	Aa3	AA-
PRUCO Life Insurance Company of New Jersey	A+	AA-	NR	NR
American Skandia Life Assurance Corporation	A+	AA-	NR	AA-
Prudential Retirement Insurance and Annuity Company	A+	AA-	NR	NR
The Prudential Life Insurance Co., Ltd. (Prudential of Japan)	A+	AA-	NR	NR
Gibraltar Life Insurance Company, Ltd.	NR	AA-	A1	NR

CREDIT RATINGS:
as of February 8, 2005

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

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+	AA-	A1	A+

*	NR indicates not rated.


INVESTOR INFORMATION:

Corporate Offices:		Investor Information Hotline:

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

Publicly Traded Securities:

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

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

Page 48

Form: 8-K

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