May 4, 2005 - QUARTERLY FINANCIAL SUPPLEMENT FOR THE FINANCIAL SERVICES BUSINESSES - 8-K: Current report

Exhibit 99.1

Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

FIRST QUARTER 2005

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.

May 4, 2005

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

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		6
Combining Balance Sheets by Division		7
Short-Term Debt		8
Long-Term Debt		9

INSURANCE DIVISION
Combined Statements of Operations		10
Combining Statements of Operations		11
Individual Life and Annuities Sales Results and Account Values		12
Individual Life Account Value Activity		13
Annuities Account Value Activity		14
Deferred Policy Acquisition Costs		15
Supplementary Information for Individual Life Insurance		16
Supplementary Information for Group Insurance		17

INVESTMENT DIVISION
Combined Statements of Operations		18
Combining Statements of Operations		19
Supplementary Revenue Information for Asset Management Segment		20
Supplementary Information for Financial Advisory Segment		21
Assets Under Management for Investment Management and Advisory Services operations		22
Mutual Funds and Wrap-fee Products		23
Retirement Sales Results and Account Values		24

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
Combined Statements of Operations		25
Combining Statements of Operations		26
International Insurance Segment - Supplementary Income Statement Information		27
Sales Results and Supplementary Information		28-29

INVESTMENT PORTFOLIO
Investment Portfolio Composition		30
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		31
Financial Services Businesses Investment Results		32
Financial Services Businesses Investment Results - Japanese Insurance Operations		33
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations		34

RECLASSIFIED STATEMENTS OF OPERATIONS		35-42

KEY DEFINITIONS AND FORMULAS		43-45

RATINGS AND INVESTOR INFORMATION		46

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

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

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date				% Change			2004								2005
2005		2004		% Change			1Q		2Q		3Q		4Q		1Q
						*Financial Services Businesses:*
						Pre-tax adjusted operating income by division:
255		211		21	%	Insurance Division	211		238		245		297		255
304		96		217	%	Investment Division	96		72		76		111		304
311		221		41	%	International Insurance and Investments Division	221		269		260		253		311
16		22		-27	%	Corporate and other operations	22		64		54		18		16

886		550		61	%	Total pre-tax adjusted operating income	550		643		635		679		886
285		171		67	%	Income taxes, applicable to adjusted operating income	171		142		168		195		285

601		379		59	%	Financial Services Businesses after-tax adjusted operating income	379		501		467		484		601

						Items excluded from adjusted operating income:
236		1		23500	%	Realized investment gains (losses), net, and related charges and adjustments	1		143		38		(158	)	236
(130	)	50		-360	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	50		(322	)	208		21		(130	)
86		(50	)	272	%	Change in experience-rated contractholder liabilities due to asset value changes	(50	)	183		(100	)	(44	)	86
(14	)	(17	)	18	%	Divested businesses	(17	)	(9	)	(22	)	(57	)	(14	)

178		(16	)	1213	%	Total items excluded from adjusted operating income, before income taxes	(16	)	(5	)	124		(238	)	178
21		(12	)	275	%	Income taxes, applicable to items excluded from adjusted operating income	(12	)	(8	)	36		(70	)	21

157		(4	)	4025	%	Total items excluded from adjusted operating income, after income taxes	(4	)	3		88		(168	)	157

						Income from continuing operations (after-tax) of Financial Services Businesses
758		375		102	%	before extraordinary gain on acquisition and cumulative effect of accounting change	375		504		555		316		758
8		(6	)	233	%	Income (loss) from discontinued operations, net of taxes	(6	)	(5	)	(8	)	1		8
—		—		—		Extraordinary gain on acquisition, net of taxes	—		20		1		—		—
—		(79	)	100	%	Cumulative effect of accounting change, net of taxes	(79	)	—		—		—		—

766		290		164	%	Net income of Financial Services Businesses	290		519		548		317		766

						Earnings per share of Common Stock (diluted):
1.18		0.74				Financial Services Businesses after-tax adjusted operating income	0.74		0.98		0.93		0.96		1.18
						Items excluded from adjusted operating income:
0.45		—				Realized investment gains (losses), net, and related charges and adjustments	—		0.27		0.07		(0.30	)	0.45
(0.25	)	0.09				Investment gains (losses) on trading account assets supporting insurance liabilities, net	0.09		(0.60	)	0.40		0.04		(0.25	)
0.16		(0.09	)			Change in experience-rated contractholder liabilities due to asset value changes	(0.09	)	0.34		(0.19	)	(0.08	)	0.16
(0.03	)	(0.03	)			Divested businesses	(0.03	)	(0.02	)	(0.04	)	(0.11	)	(0.03	)

0.33		(0.03	)			Total items excluded from adjusted operating income, before income taxes	(0.03	)	(0.01	)	0.24		(0.45	)	0.33
0.04		(0.02	)			Income taxes, applicable to items excluded from adjusted operating income	(0.02	)	(0.02	)	0.07		(0.13	)	0.04

0.29		(0.01	)			Total items excluded from adjusted operating income, after income taxes	(0.01	)	0.01		0.17		(0.32	)	0.29

1.47		0.73				Income from continuing operations (after-tax) of Financial Services Businesses before extraordinary gain on acquisition and cumulative effect of accounting change	0.73		0.99		1.10		0.64		1.47
0.02		(0.01	)			Income (loss) from discontinued operations, net of taxes	(0.01	)	(0.01	)	(0.02	)	—		0.02
—		—				Extraordinary gain on acquisition, net of taxes	—		0.04		—		—		—
—		(0.15	)			Cumulative effect of accounting change, net of taxes	(0.15	)	—		—		—		—

1.49		0.57				Net income of Financial Services Businesses	0.57		1.02		1.08		0.64		1.49

530.0		539.9				Weighted average number of outstanding Common shares (diluted basis)	539.9		532.2		525.7		527.3		530.0
12.60	%	8.61	%			Operating Return on Average Equity (based on adjusted operating income)	8.61	%	11.26	%	10.38	%	10.46	%	12.60	%
						*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
766		290				Net income of Financial Services Businesses (above)	290		519		548		317		766
163		111				Net income of Closed Block Business	111		30		180		261		163

929		401				Consolidated net income	401		549		728		578		929

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

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			2004				2005
2005	2004		1Q	2Q	3Q	4Q	1Q
		*Financial Services Businesses Capitalization Data (1):*
		Short-term debt	4,603	4,432	6,135	3,896	6,253
		Long-term debt	3,820	4,437	5,708	5,877	5,981
		Attributed Equity:
		Including accumulated other comprehensive income	20,837	19,619	20,457	21,209	21,244
		Excluding unrealized gains and losses on investments	18,520	18,695	18,987	19,561	20,008
		Excluding accumulated other comprehensive income	18,554	18,755	18,995	19,392	19,907
		Total Capitalization:
		Including accumulated other comprehensive income	24,657	24,056	26,165	27,086	27,225
		Excluding unrealized gains and losses on investments	22,340	23,132	24,695	25,438	25,989
		Excluding accumulated other comprehensive income	22,374	23,192	24,703	25,269	25,888
		Book value per share of Common Stock:
		Including accumulated other comprehensive income	38.90	37.11	39.19	39.90	40.35
		Excluding unrealized gains and losses on investments	34.58	35.36	36.37	36.80	38.00
		Excluding accumulated other comprehensive income	34.64	35.47	36.39	36.49	37.81
		Number of diluted shares at end of period	535.6	528.7	522.0	531.5	526.5
		*Common Stock Price Range (based on closing price):*
59.32	48.11	High	48.11	46.47	48.10	55.09	59.32
52.62	41.62	Low	41.62	41.05	44.30	42.87	52.62
57.40	44.78	Close	44.78	46.47	47.04	54.96	57.40
		*Common Stock market capitalization (1)*	23,679	24,209	24,158	28,983	29,980

(1)	As of end of period.

Page 2

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

OPERATIONS HIGHLIGHTS


Year-to-date			2004				2005
2005	2004		1Q	2Q	3Q	4Q	1Q
		*Assets Under Management and Administration ($ billions) (1) (2):*
		Assets Under Management :
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Retail customers	78.4	74.4	62.3	66.0	64.8
		Institutional customers	99.9	106.3	108.9	119.2	119.0
		General account	131.2	147.6	152.3	152.7	155.3

		Total Investment Management and Advisory Services	309.5	328.3	323.5	337.9	339.1
		Non-proprietary assets under management	22.3	43.6	43.5	44.8	44.0

		Total managed by Investment Division	331.8	371.9	367.0	382.7	383.1
		Managed by International Insurance and Investments Division	67.6	67.0	67.1	77.7	74.0
		Managed by Insurance Division	35.3	35.3	35.9	39.1	38.6

		Total assets under management	434.7	474.2	470.0	499.5	495.7
		Client assets under administration	52.2	64.6	72.9	82.2	85.3

		Total assets under management and administration	486.9	538.8	542.9	581.7	581.0

		Assets managed or administered for customers outside of the United States at end of period	100.8	97.3	96.4	107.0	104.9
		*Distribution Representatives (1):*
		Prudential Agents	4,147	4,001	3,982	3,682	3,519
		International Life Planners	5,008	5,123	5,234	5,385	5,555
		Gibraltar Life Advisors	4,815	4,888	4,759	4,970	4,902
37	36	*Prudential Agent productivity ($ thousands)*	36	40	37	54	37
		*Third Party Distribution - Retail Products ($ millions) (3):*
39	28	Individual life insurance (4)	28	34	45	48	39
1	6	Corporate-owned life insurance sales	6	1	3	1	1
1,137	1,410	Individual annuities	1,410	1,332	1,078	1,014	1,137
6,261	2,742	Mutual funds and wrap-fee products	2,742	2,386	4,002	4,936	6,261

(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.

Page 3

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date				% Change			2004								2005
2005		2004		% Change			1Q		2Q		3Q		4Q		1Q
						Revenues (1):

2,529		2,191		15	%	Premiums	2,191		2,210		2,176		2,218		2,529
626		567		10	%	Policy charges and fee income	567		600		615		644		626
1,499		1,244		20	%	Net investment income	1,244		1,330		1,397		1,413		1,499
977		676		45	%	Commissions, investment management fees, and other income	676		917		841		976		977

5,631		4,678		20	%	Total revenues	4,678		5,057		5,029		5,251		5,631

						Benefits and Expenses (1):

2,559		2,289		12	%	Insurance and annuity benefits	2,289		2,243		2,246		2,254		2,559
603		427		41	%	Interest credited to policyholders’ account balances	427		582		580		594		603
111		53		109	%	Interest expense	53		57		83		103		111
(416	)	(388	)	-7	%	Deferral of acquisition costs	(388	)	(373	)	(360	)	(407	)	(416	)
229		192		19	%	Amortization of acquisition costs	192		190		212		172		229
1,659		1,555		7	%	General and administrative expenses	1,555		1,715		1,633		1,856		1,659

4,745		4,128		15	%	Total benefits and expenses	4,128		4,414		4,394		4,572		4,745

886		550		61	%	Adjusted operating income before income taxes	550		643		635		679		886

						Items excluded from adjusted operating income before income taxes:
257		9		2756	%	Realized investment gains (losses), net, and related adjustments	9		155		50		(132	)	257
(21	)	(8	)	-163	%	Related charges	(8	)	(12	)	(12	)	(26	)	(21	)

236		1		23500	%	Total realized investment gains (losses), net, and related charges and adjustments	1		143		38		(158	)	236

(130	)	50		-360	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	50		(322	)	208		21		(130	)
86		(50	)	272	%	Change in experience-rated contractholder liabilities due to asset value changes	(50	)	183		(100	)	(44	)	86
(14	)	(17	)	18	%	Divested businesses	(17	)	(9	)	(22	)	(57	)	(14	)

178		(16	)	1213	%	Total items excluded from adjusted operating income before income taxes	(16	)	(5	)	124		(238	)	178

1,064		534		99	%	Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change	534		638		759		441		1,064
306		159		92	%	Income tax expense	159		134		204		125		306

758		375		102	%	Income from continuing operations before extraordinary gain on acquisition and cumulative effect of accounting change	375		504		555		316		758

(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

First Quarter 2005

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	3/31/2004	6/30/2004	9/30/2004	12/31/2004	3/31/2005
Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $84,853; $87,800; $89,640; $97,732; $100,301)	90,479	90,596	93,889	102,155	103,966
Fixed maturities, held to maturity, at amortized cost (fair value $2,999; $2,704; $2,633; $2,765; $3,412)	2,949	2,724	2,607	2,747	3,389
Trading account assets supporting insurance liabilities, at fair value	807	11,920	12,695	12,964	13,239
Other trading account assets, at fair value	5,245	3,098	3,222	1,547	1,488
Equity securities, available for sale, at fair value (cost $1,027; $1,271; $1,282; $1,473; $1,634)	1,164	1,422	1,457	1,663	1,865
Commercial loans	11,508	16,412	16,315	17,092	16,569
Policy loans	2,671	2,608	2,606	2,919	2,943
Securities purchased under agreements to resell	2,086	147	190	127	171
Other long-term investments	4,143	4,553	4,518	4,934	4,644
Short-term investments	2,913	3,818	2,399	3,405	2,992

Total investments	123,965	137,298	139,898	149,553	151,266
Cash and cash equivalents	5,893	4,053	4,471	6,164	6,291
Accrued investment income	1,137	1,238	1,317	1,307	1,375
Reinsurance recoverables	599	35,843	34,825	32,790	3,767
Deferred policy acquisition costs	6,731	7,086	7,022	7,624	7,854
Other assets	18,125	14,910	16,000	16,472	16,644
Separate account assets	106,833	103,961	105,621	115,568	142,568

Total assets	263,283	304,389	309,154	329,478	329,765

Liabilities:
Future policy benefits	47,714	46,817	47,673	52,522	52,370
Policyholders’ account balances	47,012	63,236	63,521	69,940	70,287
Unpaid claims and claim adjustment expenses	1,717	1,740	1,775	1,807	1,839
Reinsurance payables	180	35,444	34,469	32,386	3,345
Securities sold under agreements to repurchase	5,536	5,685	4,957	4,657	6,087
Cash collateral for loaned securities	3,361	3,661	2,978	4,248	3,246
Income taxes payable	2,686	2,015	2,427	2,681	2,508
Securities sold but not yet purchased	2,386	345	503	427	466
Short-term debt	4,603	4,432	6,135	3,896	6,253
Long-term debt	3,820	4,437	5,708	5,877	5,981
Other liabilities	16,598	12,997	12,930	14,260	13,571
Separate account liabilities	106,833	103,961	105,621	115,568	142,568

Total liabilities	242,446	284,770	288,697	308,269	308,521

Attributed Equity:
Accumulated other comprehensive income	2,283	864	1,462	1,817	1,337
Other attributed equity	18,554	18,755	18,995	19,392	19,907

Total attributed equity	20,837	19,619	20,457	21,209	21,244

Total liabilities and attributed equity	263,283	304,389	309,154	329,478	329,765

Page 5

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Three Months Ended March 31, 2005
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,529		941		41		1,552		(5	)
Policy charges and fee income	626		513		46		71		(4	)
Net investment income	1,499		433		637		309		120
Commissions, investment management fees, and other income	977		137		749		112		(21	)

Total revenues	5,631		2,024		1,473		2,044		90

Benefits and Expenses (1):
Insurance and annuity benefits	2,559		1,068		215		1,258		18
Interest credited to policyholders’ account balances	603		177		384		46		(4	)
Interest expense	111		25		22		6		58
Deferral of acquisition costs	(416	)	(165	)	(17	)	(251	)	17
Amortization of acquisition costs	229		127		14		101		(13	)
General and administrative expenses	1,659		537		551		573		(2	)

Total benefits and expenses	4,745		1,769		1,169		1,733		74

Adjusted operating income before income taxes	886		255		304		311		16


	Three Months Ended March 31, 2004
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,191		850		12		1,330		(1	)
Policy charges and fee income	567		490		18		63		(4	)
Net investment income	1,244		369		523		229		123
Commissions, investment management fees, and other income	676		150		477		61		(12	)

Total revenues	4,678		1,859		1,030		1,683		106

Benefits and Expenses (1):
Insurance and annuity benefits	2,289		978		208		1,083		20
Interest credited to policyholders’ account balances	427		175		226		26		—
Interest expense	53		1		9		1		42
Deferral of acquisition costs	(388	)	(182	)	(8	)	(214	)	16
Amortization of acquisition costs	192		108		15		84		(15	)
General and administrative expenses	1,555		568		484		482		21

Total benefits and expenses	4,128		1,648		934		1,462		84

Adjusted operating income before income taxes	550		211		96		221		22

(1)

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Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of March 31, 2005
	Total Financial Services Businesses	Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	151,266	32,090	56,518	50,016	12,642
Deferred policy acquisition costs	7,854	4,340	95	3,567	(148	)
Other assets	28,077	3,586	10,095	7,205	7,191
Separate account assets	142,568	68,346	75,276	33	(1,087	)

Total assets	329,765	108,362	141,984	60,821	18,598

Liabilities:
Future policy benefits	52,370	5,314	13,467	32,979	610
Policyholders’ account balances	70,287	18,655	37,199	15,077	(644	)
Debt	12,234	1,640	1,151	768	8,675
Other liabilities	31,062	8,593	9,090	7,284	6,095
Separate account liabilities	142,568	68,346	75,276	33	(1,087	)

Total liabilities	308,521	102,548	136,183	56,141	13,649

Attributed Equity:
Accumulated other comprehensive income	1,337	452	65	764	56
Other attributed equity	19,907	5,362	5,736	3,916	4,893

Total attributed equity	21,244	5,814	5,801	4,680	4,949

Total liabilities and attributed equity	329,765	108,362	141,984	60,821	18,598


	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	38,949	8,098	6,069
Separate account assets	115,568	69,348	47,301	25	(1,106	)

Total assets	329,478	108,748	142,542	62,186	16,002

Liabilities:
Future policy benefits	52,522	5,166	13,571	33,163	622
Policyholders’ account balances	69,940	18,518	36,490	15,418	(486	)
Debt	9,773	1,161	1,484	407	6,721
Other liabilities	60,466	8,443	37,638	8,739	5,646
Separate account liabilities	115,568	69,348	47,301	25	(1,106	)

Total liabilities	308,269	102,636	136,484	57,752	11,397

Attributed Equity:
Accumulated other comprehensive income	1,817	680	370	754	13
Other attributed equity	19,392	5,432	5,688	3,680	4,592

Total attributed equity	21,209	6,112	6,058	4,434	4,605

Total liabilities and attributed equity	329,478	108,748	142,542	62,186	16,002

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

SHORT TERM DEBT

(in millions)


	As of March 31, 2005				As of December 31, 2004
	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:*
Capital Debt	420	6	—	426	97	5	—	102
Investment related	1	2,367	—	2,368	158	521	—	679
Securities business related	404	1,067	1,102	2,573	86	906	1,330	2,322
Specified other businesses	125	624	136	885	105	548	139	792
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1

Total short-term debt - Financial Services Businesses	950	4,064	1,239	6,253	446	1,980	1,470	3,896

*Borrowings by type:*
Long-term debt due within one year	—	59	—	59	—	57	—	57
Commercial paper	950	3,989	—	4,939	446	1,853	—	2,299
Bank borrowings	—	—	637	637	—	—	754	754
Other short-term debt	—	16	601	617	—	70	715	785

Total general obligations	950	4,064	1,238	6,252	446	1,980	1,469	3,895
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1

Total short-term debt - Financial Services Businesses	950	4,064	1,239	6,253	446	1,980	1,470	3,896

Closed Block Business:
Investment related commercial paper borrowings	—	757	—	757	—	148	—	148

(1)	Includes Prudential Funding, LLC.

Page 8

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

LONG TERM DEBT

(in millions)


	As of March 31, 2005
	Capital Debt		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	2,077		1,541	670	—	4,288	—	4,288
Hybrid notes	—		—	—	—	—	—	—

Total	2,077		1,541	670	—	4,288	—	4,288

The Prudential Insurance Company of America (1):
Surplus notes	692		—	—	—	692	—	692
Long-term fixed and floating rate notes	600		346	—	—	946	—	946
Commercial paper backed by long-term credit agreements	—		—	—	—	—	—	—

Total	1,292		346	—	—	1,638	—	1,638

Long-term debt of other affiliated companies	—		—	—	—	—	55	55

Total long-term debt of Financial Services Businesses	3,369		1,887	670	—	5,926	55	5,981

Ratio of long-term and short-term capital debt to capitalization	15.9	%

Closed Block Business:

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


	As of December 31, 2004
	Capital Debt		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 (1):
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 capital debt to capitalization	15.1	%

Closed Block Business:

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

(1) Includes Prudential Funding, LLC.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


Year-to-date			% Change			2004								2005
2005	2004		% Change			1Q		2Q		3Q		4Q		1Q
					Revenues (1):
941	850		11	%	Premiums	850		826		845		842		941
513	490		5	%	Policy charges and fee income	490		496		519		541		513
433	369		17	%	Net investment income	369		378		402		422		433
137	150		-9	%	Commissions, investment management fees, and other income	150		156		162		152		137

2,024	1,859		9	%	Total revenues	1,859		1,856		1,928		1,957		2,024

					Benefits and Expenses (1):
1,068	978		9	%	Insurance and annuity benefits	978		929		966		949		1,068
177	175		1	%	Interest credited to policyholders’ account balances	175		178		179		176		177
25	1		2400	%	Interest expense	1		2		10		19		25
(165)	(182	)	9	%	Deferral of acquisition costs	(182	)	(180	)	(161	)	(168	)	(165	)
127	108		18	%	Amortization of acquisition costs	108		109		120		66		127
537	568		-5	%	General and administrative expenses	568		580		569		618		537

1,769	1,648		7	%	Total benefits and expenses	1,648		1,618		1,683		1,660		1,769

255	211		21	%	Adjusted operating income before income taxes	211		238		245		297		255

(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 10

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Three Months Ended March 31, 2005
	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	941		123		818		98		25
Policy charges and fee income	513		439		74		262		177
Net investment income	433		282		151		125		157
Commissions, investment management fees, and other income	137		128		9		55		73

Total revenues	2,024		972		1,052		540		432

Benefits and Expenses (1):
Insurance and annuity benefits	1,068		241		827		171		70
Interest credited to policyholders’ account balances	177		126		51		42		84
Interest expense	25		20		5		15		5
Deferral of acquisition costs	(165	)	(157	)	(8	)	(74	)	(83	)
Amortization of acquisition costs	127		126		1		72		54
General and administrative expenses (2)	537		399		138		197		202

Total benefits and expenses	1,769		755		1,014		423		332

Adjusted operating income before income taxes	255		217		38		117		100


	Three Months Ended March 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	850		101		749		87		14
Policy charges and fee income	490		419		71		256		163
Net investment income	369		234		135		97		137
Commissions, investment management fees, and other income	150		139		11		67		72

Total revenues	1,859		893		966		507		386

Benefits and Expenses (1):
Insurance and annuity benefits	978		217		761		166		51
Interest credited to policyholders’ account balances	175		128		47		39		89
Interest expense	1		1		—		—		1
Deferral of acquisition costs	(182	)	(175	)	(7	)	(77	)	(98	)
Amortization of acquisition costs	108		107		1		70		37
General and administrative expenses (2)	568		430		138		222		208

Total benefits and expenses	1,648		708		940		420		288

Adjusted operating income before income taxes	211		185		26		87		98

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

(2)

General and administrative expenses for Individual Annuities include $8 million for the three months ended March 31, 2005 and $8 million for the three months ended March 31, 2004 for the amortization, net of interest, of value of business acquired (VOBA) associated with the May 1, 2003 acquisition of American Skandia.

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

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

(in millions)


Year-to-date				2004								2005
2005	2004			1Q		2Q		3Q		4Q		1Q
			INDIVIDUAL LIFE INSURANCE SALES:

			Excluding corporate-owned life insurance:
19	26		Variable life	26		27		25		19		19
51	32		Universal life	32		39		48		59		51
29	32		Term life	32		28		28		28		29

99	90		Total excluding corporate-owned life insurance	90		94		101		106		99
1	6		Corporate-owned life insurance	6		1		4		3		1

100	96		Total	96		95		105		109		100

			ANNUITY SALES AND ACCOUNT VALUES

			Variable Annuities:
47,418	43,949		Beginning total account value	43,949		44,858		44,927		44,474		47,418
1,433	1,723		Sales	1,723		1,536		1,259		1,288		1,433
(1,251)	(1,352	)	Surrenders and withdrawals	(1,352	)	(1,263	)	(1,266	)	(1,343	)	(1,251	)

182	371		Net sales (redemptions)	371		273		(7	)	(55	)	182
(145)	(161	)	Benefit payments	(161	)	(143	)	(154	)	(155	)	(145	)

37	210		Net flows	210		130		(161	)	(210	)	37
(911)	843		Change in market value, interest credited, and other	843		84		(146	)	3,310		(911	)
(158)	(144	)	Policy charges	(144	)	(145	)	(146	)	(156	)	(158	)

46,386	44,858		Ending total account value	44,858		44,927		44,474		47,418		46,386

			Fixed Annuities:
3,879	3,514		Beginning total account value	3,514		3,574		3,722		3,860		3,879
52	92		Sales	92		196		175		69		52
(51)	(51	)	Surrenders and withdrawals	(51	)	(51	)	(44	)	(45	)	(51	)

1	41		Net sales	41		145		131		24		1
(41)	(45	)	Benefit payments	(45	)	(38	)	(41	)	(39	)	(41	)

(40)	(4	)	Net flows	(4	)	107		90		(15	)	(40	)
41	65		Interest credited and other	65		42		49		35		41
(1)	(1	)	Policy charges	(1	)	(1	)	(1	)	(1	)	(1	)

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

			SALES BY DISTRIBUTION CHANNEL
			Life Insurance:
			Excluding corporate-owned life insurance:
60	62		Prudential Agents	62		60		56		58		60
39	28		Third party distribution	28		34		45		48		39
1	6		Corporate-owned life insurance	6		1		4		3		1

100	96		Total	96		95		105		109		100

			Variable and Fixed Annuities (1):
348	405		Prudential Agents	405		400		356		343		348
122	108		Wirehouses	108		96		87		121		122
1,015	1,302		Independent Financial Planners (2)	1,302		1,236		991		893		1,015

1,485	1,815		Total	1,815		1,732		1,434		1,357		1,485

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

INSURANCE DIVISION - INDIVIDUAL LIFE ACCOUNT VALUE ACTIVITY

(in millions)


Year-to-date					2004								2005
2005		2004			1Q		2Q		3Q		4Q		1Q
				INDIVIDUAL LIFE INSURANCE:

				Policyholders’ Account Balances (1):
4,998		4,520		Beginning balance	4,520		4,567		4,742		4,809		4,998
310		293		Premiums and deposits	293		295		307		293		310
(165	)	(158	)	Surrenders and withdrawals	(158	)	(161	)	(159	)	(157	)	(165	)

145		135		Net sales	135		134		148		136		145
(31	)	(25	)	Benefit payments	(25	)	(22	)	(25	)	(24	)	(31	)

114		110		Net flows	110		112		123		112		114
53		(49	)	Interest credited and other	(49	)	82		(31	)	103		53
16		18		Net transfers from separate account	18		15		10		14		16
(39	)	(32	)	Policy charges	(32	)	(34	)	(36	)	(40	)	(39	)

5,142		4,567		Ending balance	4,567		4,742		4,809		4,998		5,142

				Separate Account Liabilities:
15,180		13,981		Beginning balance	13,981		14,246		14,303		14,209		15,180
310		331		Premiums and deposits	331		355		329		318		310
(141	)	(145	)	Surrenders and withdrawals	(145	)	(140	)	(158	)	(144	)	(141	)

169		186		Net sales	186		215		171		174		169
(8	)	(8	)	Benefit payments	(8	)	(6	)	(7	)	(3	)	(8	)

161		178		Net flows	178		209		164		171		161
(182	)	328		Change in market value, interest credited and other	328		87		(5	)	1,037		(182	)
(47	)	(39	)	Net transfers to general account	(39	)	(37	)	(50	)	(34	)	(47	)
(200	)	(202	)	Policy charges	(202	)	(202	)	(203	)	(203	)	(200	)

14,912		14,246		Ending balance	14,246		14,303		14,209		15,180		14,912

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

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

INSURANCE DIVISION - ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


Year-to-date					2004								2005
2005		2004			1Q		2Q		3Q		4Q		1Q
				INDIVIDUAL ANNUITIES:

				Account Values in General Account (1):
9,613		7,660		Beginning balance	7,660		9,675		10,101		10,026		9,613
185		249		Premiums and deposits	249		338		273		182		185
(191	)	(251	)	Surrenders and withdrawals	(251	)	(209	)	(187	)	(163	)	(191	)

(6	)	(2	)	Net sales (redemptions)	(2	)	129		86		19		(6	)
(82	)	(82	)	Benefit payments	(82	)	(81	)	(77	)	(78	)	(82	)

(88	)	(84	)	Net flows	(84	)	48		9		(59	)	(88	)
90		22		Interest credited and other	22		118		99		96		90
49		2,079		Net transfers (to) from separate account (2)	2,079		261		(182	)	(449	)	49
(2	)	(2	)	Policy charges	(2	)	(1	)	(1	)	(1	)	(2	)

9,662		9,675		Ending balance	9,675		10,101		10,026		9,613		9,662

				Account Values in Separate Account:
41,684		39,803		Beginning balance	39,803		38,757		38,548		38,308		41,684
1,300		1,566		Premiums and deposits	1,566		1,394		1,161		1,175		1,300
(1,112	)	(1,152	)	Surrenders and withdrawals	(1,152	)	(1,105	)	(1,123	)	(1,225	)	(1,112	)

188		414		Net sales (redemptions)	414		289		38		(50	)	188
(104	)	(124	)	Benefit payments	(124	)	(100	)	(118	)	(116	)	(104	)

84		290		Net flows	290		189		(80	)	(166	)	84
(960	)	886		Change in market value, interest credited and other	886		8		(196	)	3,249		(960	)
(49	)	(2,079	)	Net transfers (to) from general account (2)	(2,079	)	(261	)	182		449		(49	)
(157	)	(143	)	Policy charges	(143	)	(145	)	(146	)	(156	)	(157	)

40,602		38,757		Ending balance	38,757		38,548		38,308		41,684		40,602

(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 14

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)


Year-to-date					2004								2005
2005		2004			1Q		2Q		3Q		4Q		1Q
				INDIVIDUAL LIFE INSURANCE:
3,151		3,194		Beginning balance	3,194		3,032		3,141		3,012		3,151
74		77		Capitalization	77		75		72		87		74
(72	)	(70	)	Amortization - operating results	(70	)	(68	)	(75	)	(61	)	(72	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
57		(169	)	Impact of unrealized (gains) or losses on AFS securities	(169	)	103		(127	)	113		57

3,210		3,032		Ending balance	3,032		3,141		3,012		3,151		3,210

				INDIVIDUAL ANNUITIES:
907		636		Beginning balance	636		697		851		837		907
83		98		Capitalization	98		97		83		75		83
(54	)	(37	)	Amortization - operating results	(37	)	(40	)	(44	)	(4	)	(54	)
(1	)	1		Amortization - realized investment gains and losses	1		(3	)	2		(2	)	(1	)
77		(5	)	Impact of unrealized (gains) or losses on AFS securities	(5	)	100		(55	)	1		77
—		4		Other (1)	4		—		—		—		—

1,012		697		Ending balance	697		851		837		907		1,012

				GROUP INSURANCE (2):
111		88		Beginning balance	88		94		101		106		111
8		7		Capitalization	7		8		6		6		8
(1	)	(1	)	Amortization - operating results	(1	)	(1	)	(1	)	(1	)	(1	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

118		94		Ending balance	94		101		106		111		118

				TOTAL INSURANCE DIVISION:
4,169		3,918		Beginning balance	3,918		3,823		4,093		3,955		4,169
165		182		Capitalization	182		180		161		168		165
(127	)	(108	)	Amortization - operating results	(108	)	(109	)	(120	)	(66	)	(127	)
(1	)	1		Amortization - realized investment gains and losses	1		(3	)	2		(2	)	(1	)
134		(174	)	Impact of unrealized (gains) or losses on AFS securities	(174	)	203		(182	)	114		134
—		4		Other (1)	4		—		—		—		—

4,340		3,823		Ending balance	3,823		4,093		3,955		4,169		4,340

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

(2)	Represents long-term care products.

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


Year-to-date					2004								2005
2005		2004			1Q		2Q		3Q		4Q		1Q
				Individual Life Insurance:
				Policy Surrender Experience:
155		164		Cash value of surrenders	164		152		167		150		155
3.2	%	3.5	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.5	%	3.2	%	3.6	%	3.1	%	3.2	%
				Death benefits per $1,000 of in force (1):
3.10		2.90		Variable and universal life	2.90		2.86		2.64		2.46		3.10
1.37		1.75		Term life	1.75		0.76		1.43		1.67		1.37
2.74		2.75		Total, Individual Life Insurance	2.75		2.58		2.49		2.40		2.74

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

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


Year-to-date					2004								2005
2005		2004			1Q		2Q		3Q		4Q		1Q
				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
274		127		Group life	127		34		34		42		274
76		90		Group disability (1)	90		15		38		18		76

350		217		Total	217		49		72		60		350

				Future Policy Benefits (2):
				Group life	1,780		1,760		1,734		1,881		1,891
				Group disability (1)	277		279		291		302		362

				Total	2,057		2,039		2,025		2,183		2,253

				Policyholders’ Account Balances (2):
				Group life	4,353		4,420		4,412		4,566		4,516
				Group disability (1)	59		61		66		71		74

				Total	4,412		4,481		4,478		4,637		4,590

				Separate Account Liabilities (2):
				Group life	10,476		10,810		11,198		12,483		12,832
				Group disability (1)	—		—		—		—		—

				Total	10,476		10,810		11,198		12,483		12,832

				Group Life Insurance:
694		674		Gross premiums, policy charges and fee income (3)	674		613		637		762		694
714		647		Earned premiums, policy charges and fee income	647		634		652		644		714
90.1	%	92.1	%	Benefits ratio	92.1	%	88.2	%	88.7	%	84.5	%	90.1	%
8.9	%	9.5	%	Administrative operating expense ratio	9.5	%	11.1	%	10.8	%	12.1	%	8.9	%
				Persistency ratio	95.7	%	94.7	%	94.3	%	93.9	%	96.8	%
				Group Disability Insurance (1):
188		176		Gross premiums, policy charges and fee income (3)	176		174		182		179		188
178		173		Earned premiums, policy charges and fee income	173		165		176		176		178
102.8	%	95.4	%	Benefits ratio	95.4	%	95.2	%	95.5	%	92.6	%	102.8	%
22.3	%	21.0	%	Administrative operating expense ratio	21.0	%	21.8	%	22.0	%	23.5	%	22.3	%
				Persistency ratio	90.8	%	89.3	%	87.4	%	85.8	%	91.6	%

(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 17

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year-to-date			% Change			2004								2005
2005	2004		% Change			1Q		2Q		3Q		4Q		1Q
					Revenues (1):
41	12		242	%	Premiums	12		27		43		11		41
46	18		156	%	Policy charges and fee income	18		47		43		47		46
637	523		22	%	Net investment income	523		584		619		617		637
749	477		57	%	Commissions, investment management fees, and other income	477		633		572		734		749

1,473	1,030		43	%	Total revenues	1,030		1,291		1,277		1,409		1,473

					Benefits and Expenses (1):
215	208		3	%	Insurance and annuity benefits	208		208		237		209		215
384	226		70	%	Interest credited to policyholders’ account balances	226		376		372		388		384
22	9		144	%	Interest expense	9		1		17		21		22
(17)	(8	)	-113	%	Deferral of acquisition costs	(8	)	(14	)	(10	)	(19	)	(17	)
14	15		-7	%	Amortization of acquisition costs	15		14		15		9		14
551	484		14	%	General and administrative expenses	484		634		570		690		551

1,169	934		25	%	Total benefits and expenses	934		1,219		1,201		1,298		1,169

304	96		217	%	Adjusted operating income before income taxes	96		72		76		111		304

(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 18

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Three Months Ended March 31, 2005
	Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	41		—		—		41
Policy charges and fee income	46		—		—		46
Net investment income	637		18		1		618
Commissions, investment management fees, and other income	749		400		111		238

Total revenues	1,473		418		112		943

Benefits and Expenses (1):
Insurance and annuity benefits	215		—		—		215
Interest credited to policyholders’ account balances	384		—		—		384
Interest expense	22		3		—		19
Deferral of acquisition costs	(17	)	(4	)	—		(13	)
Amortization of acquisition costs	14		9		—		5
General and administrative expenses	551		276		97		178

Total benefits and expenses	1,169		284		97		788

Adjusted operating income before income taxes	304		134		15		155


	Three Months Ended March 31, 2004
	Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	12		—		—		12
Policy charges and fee income	18		—		—		18
Net investment income	523		16		1		506
Commissions, investment management fees, and other income	477		331		105		41

Total revenues	1,030		347		106		577

Benefits and Expenses (1):
Insurance and annuity benefits	208		—		—		208
Interest credited to policyholders’ account balances	226		—		—		226
Interest expense	9		3		4		2
Deferral of acquisition costs	(8	)	(6	)	—		(2	)
Amortization of acquisition costs	15		12		—		3
General and administrative expenses	484		280		116		88

Total benefits and expenses	934		289		120		525

Adjusted operating income before income taxes	96		58		(14	)	52

(1)

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

INVESTMENT DIVISION - SUPPLEMENTARY REVENUE INFORMATION FOR ASSET MANAGEMENT SEGMENT

(in millions)


Year-to-date		% Change			2004				2005
2005	2004	% Change			1Q	2Q	3Q	4Q	1Q
				Asset Management Segment:

				Analysis of revenues by source:
				Investment Management and Advisory Services:
58	54	7	%	Retail customers	54	54	53	58	58
134	95	41	%	Institutional customers	95	117	106	124	134
65	53	23	%	General account	53	59	58	64	65

257	202	27	%	Subtotal	202	230	217	246	257
161	145	11	%	Mutual Fund, managed account and other revenues (1)	145	136	116	172	161

418	347	20	%	Total Asset Management segment revenues	347	366	333	418	418

				Analysis of commissions, investment management fees and other revenues by type:
				Investment Management and Advisory Services:
226	186	22	%	Asset-based fees	186	209	202	215	226
21	9	133	%	Transaction-based and other revenues	9	12	8	23	21

247	195	27	%	Subtotal	195	221	210	238	247
153	136	13	%	Mutual Fund, managed account and other revenues (1)	136	126	107	162	153

400	331	21	%	Total	331	347	317	400	400

(1)	Represents mutual fund, managed account and other revenues other than asset management fees, which are included in appropriate categories above.

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

INVESTMENT DIVISION - SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)


Year-to-date				2004								2005
2005	2004			1Q		2Q		3Q		4Q		1Q
			Information pertaining to Wachovia Securities Financial Holdings, LLC:

			Revenues:
56	56		Net investment income	56		55		55		59		56
482	665		Commissions	665		551		454		526		482
444	393		Fees	393		402		413		429		444
29	36		Other non-interest revenues	36		19		31		21		29

1,010	1,150		Total revenues	1,150		1,027		953		1,035		1,010
			Expenses:
870	1,001		Expenses before transition costs	1,001		929		875		902		870
29	57		Transition costs	57		66		99		78		29

899	1,058		Total expenses	1,058		995		974		980		899

111	92		Income (loss) before income taxes	92		32		(21	)	55		111

42	35		Prudential Financial, Inc., 38% share of Wachovia Securities Financial Holdings, LLC	35		12		(8	)	21		42
(3)	(3	)	Purchase accounting and related adjustments	(3	)	(1	)	(1	)	3		(3	)

39	32		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	32		11		(9	)	24		39

			Recurring revenue as a percentage of total non-interest revenue (1)	39.1	%	41.3	%	47.9	%	43.9	%	47.1	%

			Total client assets ($ in billions) (2)	614.9		618.9		615.9		652.6		644.7

			Distribution representatives (2):
			Series 7 Financial Advisors	8,133		8,009		7,964		8,017		7,883
			Series 6 Financial Representatives	3,081		2,871		2,594		2,502		2,451

			Customer debit balances ($ in billions) (2)	6.1		6.3		6.0		6.1		5.8

12	(17	)	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	(17	)	(79	)	(70	)	(83	)	12

(1)	Calculated on a YTD annualized basis.

(2)	As of end of period.

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

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

(in billions)


				March 31, 2005
				Equity		Fixed Income		Real Estate		Total
			Retail customers	45.1		18.6		1.1		64.8
			Institutional customers	40.7		63.7		14.6		119.0
			General account	3.0		151.1		1.2		155.3

			Total	88.8		233.4		16.9		339.1


				March 31, 2004
				Equity		Fixed Income		Real Estate		Total
			Retail customers	43.4		34.0		1.0		78.4
			Institutional customers	31.8		54.9		13.2		99.9
			General account	2.9		127.2		1.1		131.2

			Total	78.1		216.1		15.3		309.5


Year-to-date				2004								2005
2005	2004			1Q		2Q		3Q		4Q		1Q
			Institutional Assets Under Management:

			Assets gathered by Investment Management & Advisory Services sales force:
84.8	69.3		Beginning assets under management	69.3		74.2		74.0		76.5		84.8
3.1	5.6		Additions to managed portfolio	5.6		4.5		3.5		8.6		3.1
(1.8)	(2.8	)	Withdrawals	(2.8	)	(4.6	)	(1.5	)	(3.5	)	(1.8	)
(0.6)	1.6		Change in market value	1.6		—		0.7		3.8		(0.6	)
0.2	0.5		Net money market flows	0.5		(0.1	)	(0.2	)	(0.6	)	0.2

85.7	74.2		Ending assets under management	74.2		74.0		76.5		84.8		85.7
33.3	25.7		Other institutional assets under management	25.7		32.3		32.4		34.4		33.3

119.0	99.9		Total assets managed for institutional customers at end of period	99.9		106.3		108.9		119.2		119.0

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

INVESTMENT DIVISION - MUTUAL FUNDS AND WRAP-FEE PRODUCTS

(in millions)


Year-to-date					2004								2005
2005		2004			1Q		2Q		3Q		4Q		1Q
				Mutual Funds Assets Under Management:
30,686		46,784		Beginning total mutual funds assets	46,784		44,027		39,774		29,674		30,686
874		873		Sales (other than money market)	873		672		631		827		874
(1,592	)	(1,296	)	Redemptions (other than money market)	(1,296	)	(1,557	)	(1,217	)	(1,692	)	(1,592	)
(500	)	566		Reinvestment of distributions and change in market value	566		319		(307	)	2,507		(500	)
426		(2,900	)	Net money market sales	(2,900	)	(3,687	)	(9,207	)	(630	)	426

29,894		44,027		Ending total mutual funds assets	44,027		39,774		29,674		30,686		29,894

(718	)	(423	)	Net mutual funds redemptions other than money market	(423	)	(885	)	(586	)	(865	)	(718	)

				Wrap-fee Products Assets Under Administration:
41,254		19,833		Beginning total wrap-fee product assets	19,833		21,084		27,728		36,408		41,254
5,672		2,154		Sales	2,154		2,022		3,588		4,345		5,672
(2,837	)	(1,423	)	Redemptions	(1,423	)	(1,578	)	(1,885	)	(2,766	)	(2,837	)
(1,035	)	520		Reinvestment of distributions and change in market value	520		186		(893	)	3,267		(1,035	)
—		—		Other (1)	—		6,014		7,870		—		—

43,054		21,084		Ending total wrap-fee product assets	21,084		27,728		36,408		41,254		43,054

2,835		731		Net wrap-fee product sales	731		444		1,703		1,579		2,835

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

				Mutual funds, excluding wrap-fee products (2):
104		121		Prudential Agents	121		107		72		76		104
764		727		Third party distributors	727		538		534		727		764
6		25		Other	25		27		25		24		6

874		873		Total	873		672		631		827		874

				Wrap-fee products:
175		139		Prudential Agents	139		174		120		136		175
5,497		2,015		Third party distributors	2,015		1,848		3,468		4,209		5,497

5,672		2,154		Total	2,154		2,022		3,588		4,345		5,672

(1)	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.

(2)	Other than money market.

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


Year-to-date					2004								2005
2005		2004			1Q		2Q		3Q		4Q		1Q
				RETIREMENT SALES AND ACCOUNT VALUES
				Defined Contribution:
66,660		28,658		Beginning total account value	28,658		28,844		63,841		63,481		66,660
3,196		1,124		Sales	1,124		2,239		2,791		2,736		3,196
(2,729	)	(1,535	)	Withdrawals	(1,535	)	(2,520	)	(3,041	)	(3,325	)	(2,729	)
(388	)	597		Change in market value and interest credited	597		621		(110	)	3,768		(388	)
—		—		Acquisition	—		34,657		—		—		—

66,739		28,844		Ending total account value	28,844		63,841		63,481		66,660		66,739

467		(411	)	Net sales (withdrawals)	(411	)	(281	)	(250	)	(589	)	467

				Asset management of ending total account value:
				Proprietary	17,797		43,166		42,604		44,069		43,853
				Non-proprietary	11,047		20,675		20,877		22,591		22,886

				Total	28,844		63,841		63,481		66,660		66,739

				Guaranteed Products:

63,146		41,955		Beginning total account value	41,955		42,260		60,365		60,844		63,146
1,933		501		Sales	501		1,704		1,676		2,233		1,933
(1,903	)	(842	)	Withdrawals and benefits	(842	)	(2,321	)	(2,113	)	(1,945	)	(1,903	)
333		1,033		Change in market value and interest income	1,033		(133	)	945		1,849		333
(363	)	(387	)	Other (1)	(387	)	(288	)	(29	)	165		(363	)
—		—		Acquisition	—		19,143		—		—		—

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

30		(341	)	Net sales (withdrawals)	(341	)	(617	)	(437	)	288		30

				Product composition of ending total account value (2):
				Spread-based products	20,256		23,407		23,396		24,244		24,878
				Fee-based products	22,004		36,958		37,448		38,902		38,268

				Total	42,260		60,365		60,844		63,146		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 24

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date			% Change			2004								2005
2005	2004		% Change			1Q		2Q		3Q		4Q		1Q
					Revenues (1):
1,552	1,330		17	%	Premiums	1,330		1,354		1,292		1,366		1,552
71	63		13	%	Policy charges and fee income	63		61		55		61		71
309	229		35	%	Net investment income	229		233		242		234		309
112	61		84	%	Commissions, investment management fees, and other income	61		104		96		101		112

2,044	1,683		21	%	Total revenues	1,683		1,752		1,685		1,762		2,044


					Benefits and Expenses (1):
1,258	1,083		16	%	Insurance and annuity benefits	1,083		1,090		1,015		1,061		1,258
46	26		77	%	Interest credited to policyholders’ account balances	26		29		29		33		46
6	1		500	%	Interest expense	1		2		1		3		6
(251)	(214	)	-17	%	Deferral of acquisition costs	(214	)	(194	)	(206	)	(235	)	(251	)
101	84		20	%	Amortization of acquisition costs	84		80		92		109		101
573	482		19	%	General and administrative expenses	482		476		494		538		573

1,733	1,462		19	%	Total benefits and expenses	1,462		1,483		1,425		1,509		1,733

311	221		41	%	Adjusted operating income before income taxes	221		269		260		253		311

(1)

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Three Months Ended March 31, 2005
	Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	1,552		980		572		—
Policy charges and fee income	71		53		18		—
Net investment income	309		142		156		11
Commissions, investment management fees, and other income	112		(2	)	(1	)	115

Total revenues	2,044		1,173		745		126


Benefits and Expenses (1):
Insurance and annuity benefits	1,258		787		471		—
Interest credited to policyholders’ account balances	46		23		23		—
Interest expense	6		6		(1	)	1
Deferral of acquisition costs	(251	)	(189	)	(62	)	—
Amortization of acquisition costs	101		70		31		—
General and administrative expenses	573		297		177		99

Total benefits and expenses	1,733		994		639		100

Adjusted operating income before income taxes	311		179		106		26


	Three Months Ended March 31, 2004
	Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	1,330		752		578		—
Policy charges and fee income	63		44		19		—
Net investment income	229		72		150		7
Commissions, investment management fees, and other income	61		(10	)	(9	)	80

Total revenues	1,683		858		738		87


Benefits and Expenses (1):
Insurance and annuity benefits	1,083		592		491		—
Interest credited to policyholders’ account balances	26		4		22		—
Interest expense	1		3		(3	)	1
Deferral of acquisition costs	(214	)	(159	)	(55	)	—
Amortization of acquisition costs	84		69		15		—
General and administrative expenses	482		228		174		80

Total benefits and expenses	1,462		737		644		81

Adjusted operating income before income taxes	221		121		94		6

(1)

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2004								2005
2005		2004			1Q		2Q		3Q		4Q		1Q
				Japanese Yen Basis Results:
				Revenues (1):
¥	91,001	¥	67,241	Japanese insurance operations excluding Gibraltar Life	¥	67,241	¥	61,706	¥	65,655	¥	66,171	¥	91,001
	78,294		79,817	Gibraltar Life		79,817		90,954		78,986		78,006		78,294

	169,295		147,058	Total revenues, Japan, yen basis		147,058		152,660		144,641		144,177		169,295

				Benefits and Expenses (1):
	74,269		55,265	Japanese insurance operations excluding Gibraltar Life		55,265		50,044		52,373		53,252		74,269
	66,826		68,819	Gibraltar Life		68,819		77,443		67,358		67,174		66,826

	141,095		124,084	Total benefits and expenses, Japan, yen basis		124,084		127,487		119,731		120,426		141,095

				Adjusted operating income (2):
	16,732		11,976	Japanese insurance operations excluding Gibraltar Life		11,976		11,662		13,282		12,919		16,732
	11,468		10,998	Gibraltar Life		10,998		13,511		11,628		10,832		11,468

¥	28,200	¥	22,974	Total adjusted operating income, Japan, yen basis	¥	22,974	¥	25,173	¥	24,910	¥	23,751	¥	28,200

				U.S. Dollar adjusted operating income (3):
$	154	$	103	Japanese insurance operations excluding Gibraltar Life	$	103	$	99	$	113	$	111	$	154
	106		94	Gibraltar Life		94		115		100		93		106

	260		197	Total adjusted operating income, Japan, U.S. dollar basis		197		214		213		204		260
	25		18	All other countries		18		30		26		15		25

$	285	$	215	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	215	$	244	$	239	$	219	$	285

(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 27

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(dollar amounts in millions unless otherwise noted)


Year-to-date			2004				2005
2005	2004		1Q	2Q	3Q	4Q	1Q
		INTERNATIONAL INSURANCE OPERATING DATA:
		Actual exchange rate basis (1):
		Net premiums, policy charges and fee income:
752	580	Japan, excluding Gibraltar Life	580	506	542	579	752
590	597	Gibraltar Life	597	680	567	567	590
281	216	All other countries	216	229	238	281	281

1,623	1,393	Total	1,393	1,415	1,347	1,427	1,623

		Annualized new business premiums:
171	128	Japan, excluding Gibraltar Life	128	93	103	127	171
71	62	Gibraltar Life	62	81	68	66	71
66	50	All other countries	50	50	50	67	66

308	240	Total	240	224	221	260	308

		Constant exchange rate basis (2):
		Net premiums, policy charges and fee income:
730	575	Japan, excluding Gibraltar Life	575	517	553	565	730
568	590	Gibraltar Life	590	688	575	565	568
252	220	All other countries	220	233	241	269	252

1,550	1,385	Total	1,385	1,438	1,369	1,399	1,550

		Annualized new business premiums:
168	127	Japan, excluding Gibraltar Life	127	94	104	125	168
69	62	Gibraltar Life	62	82	68	66	69
60	51	All other countries	51	51	49	66	60

297	240	Total	240	227	221	257	297

(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 28

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2004								2005
	1Q		2Q		3Q		4Q		1Q
Face amount of individual policies in force at end of period (in billions) (1):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	184		188		192		207		211
Gibraltar Life	224		219		217		214		212
All other countries	71		74		76		79		82

Total	479		481		485		500		505

Number of individual policies in force at end of period (in thousands):
Japan, excluding Gibraltar Life	1,231		1,266		1,304		1,696		1,737
Gibraltar Life	4,226		4,149		4,109		4,070		4,025
All other countries	863		894		925		965		1,001

Total	6,320		6,309		6,338		6,731		6,763

International insurance policy persistency (2):
13 months	92.7	%	92.6	%	92.8	%	93.0	%	92.9	%
25 months	86.7	%	86.7	%	86.5	%	86.3	%	86.2	%
Number of Life Planners at end of period (3):
Japan	2,422		2,447		2,509		2,550		2,665
All other countries	2,586		2,676		2,725		2,835		2,890

Total	5,008		5,123		5,234		5,385		5,555

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

(2)	Excluding Gibraltar Life.

(3)	Excluding Gibraltar Life Advisors.

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	March 31, 2005					December 31, 2004
	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 (1)	122,491	36,420	86,071	58.0	%	118,400	34,683	83,717	57.1	%
Public, held to maturity, at amortized cost	3,252	—	3,252	2.2	%	2,624	—	2,624	1.8	%
Private, available for sale, at fair value (1)	31,048	13,648	17,400	11.7	%	32,336	14,130	18,206	12.4	%
Private, held to maturity, at amortized cost	137	—	137	0.1	%	123	—	123	0.1	%
Trading account assets supporting insurance liabilities, at fair value	13,239	—	13,239	8.9	%	12,964	—	12,964	8.8	%
Other trading account assets, at fair value	125	—	125	0.1	%	130	—	130	0.1	%
Equity securities, available for sale, at fair value	4,442	2,591	1,851	1.2	%	4,271	2,620	1,651	1.1	%
Commercial loans	23,814	7,245	16,569	11.2	%	24,389	7,297	17,092	11.6	%
Policy loans	8,372	5,429	2,943	2.0	%	8,373	5,454	2,919	2.0	%
Other long-term investments (2)	4,779	995	3,784	2.6	%	4,978	1,047	3,931	2.7	%
Short-term investments	4,852	1,860	2,992	2.0	%	5,245	1,840	3,405	2.3	%

Subtotal (3)	216,551	68,188	148,363	100.0	%	213,833	67,071	146,762	100.0	%

Invested assets of other entities and operations (4)	2,903	—	2,903			2,791	—	2,791

Total investments	219,454	68,188	151,266			216,624	67,071	149,553

Fixed Maturities by Credit Quality (3):


		March 31, 2005						December 31, 2004
		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	66,899	2,302	334	68,867	77.1	%	63,553	2,500	276	65,777	76.2	%
2	Baa	16,197	786	182	16,801	18.8	%	16,463	980	123	17,320	20.1	%

Subtotal Investment Grade		83,096	3,088	516	85,668	95.9	%	80,016	3,480	399	83,097	96.3	%

3	Ba	2,419	135	23	2,531	2.8	%	2,096	176	72	2,200	2.5	%
4	B	955	73	12	1,016	1.1	%	839	93	1	931	1.1	%
5	C and lower	78	9	2	85	0.1	%	85	13	2	96	0.1	%
6	In or near default	33	13	1	45	0.1	%	25	9	—	34	0.0	%

Subtotal Below Investment Grade		3,485	230	38	3,677	4.1	%	3,045	291	75	3,261	3.7	%

Total		86,581	3,318	554	89,345	100.0	%	83,061	3,771	474	86,358	100.0	%

Private Fixed Maturities:
NAIC Rating (5)	Rating Agency Equivalent
1	Aaa, Aa, A	5,506	276	34	5,748	32.8	%	4,917	321	19	5,219	28.5	%
2	Baa	9,064	593	50	9,607	54.8	%	9,831	695	25	10,501	57.3	%

Subtotal Investment Grade		14,570	869	84	15,355	87.6	%	14,748	1,016	44	15,720	85.8	%

3	Ba	1,309	85	3	1,391	7.9	%	1,520	102	1	1,621	8.8	%
4	B	378	35	4	409	2.3	%	399	42	3	438	2.4	%
5	C and lower	278	31	1	308	1.8	%	293	32	1	324	1.8	%
6	In or near default	73	5	3	75	0.4	%	224	9	6	227	1.2	%

Subtotal Below Investment Grade		2,038	156	11	2,183	12.4	%	2,436	185	11	2,610	14.2	%

Total		16,608	1,025	95	17,538	100.0	%	17,184	1,201	55	18,330	100.0	%

(1)	Classification for the earlier period presented has been conformed to the current presentation.

(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) those assets classified as “separate account assets” on our balance sheet.

(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 those assets classified as “separate account assets” on our balance sheet. 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 March 31, 2005 and December 31, 2004, respectively, 199 securities with amortized cost of $2,738 million (fair value $2,792 million) and 206 securities with amortized cost of $2,910 million (fair value, $2,972 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	March 31, 2005			December 31, 2004
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value (1)	33,072	70.9	%	33,090	69.8	%
Public, held to maturity, at amortized cost	3,252	7.0	%	2,624	5.5	%
Private, available for sale, at fair value (1)	2,308	5.0	%	2,309	4.9	%
Private, held to maturity, at amortized cost	137	0.3	%	123	0.3	%
Trading account assets supporting insurance liabilities, at fair value	891	1.9	%	885	1.9	%
Other trading account assets, at fair value	29	0.0	%	71	0.1	%
Equity securities, available for sale, at fair value	1,658	3.6	%	1,470	3.1	%
Commercial loans	3,002	6.4	%	3,371	7.1	%
Policy loans	1,026	2.2	%	1,037	2.2	%
Other long-term investments (2)	1,210	2.6	%	1,375	2.9	%
Short-term investments	37	0.1	%	1,031	2.2	%

Total	46,622	100.0	%	47,386	100.0	%


	March 31, 2005			December 31, 2004
	Amount	% of Total		Amount	% of Total
Financial Services Businesses excluding Japanese Insurance Operations (3):
Fixed maturities:
Public, available for sale, at fair value (1)	52,999	52.1	%	50,627	51.0	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value (1)	15,092	14.8	%	15,897	16.0	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	12,348	12.1	%	12,079	12.2	%
Other trading account assets, at fair value	96	0.1	%	59	0.0	%
Equity securities, available for sale, at fair value	193	0.2	%	181	0.2	%
Commercial loans	13,567	13.3	%	13,721	13.8	%
Policy loans	1,917	1.9	%	1,882	1.9	%
Other long-term investments (2)	2,574	2.6	%	2,556	2.5	%
Short-term investments	2,955	2.9	%	2,374	2.4	%

Total	101,741	100.0	%	99,376	100.0	%

(1)	Classification for the earlier period presented has been conformed to the current presentation.

(2)

(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) those assets classified as “separate account assets” on our balance sheet.

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Three Months Ended March 31
	2005						2004
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount		Realized Gains / (Losses)		Yield (3)(4)		Amount		Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities	4.55	%	1,150		39		4.61	%	954		31
Equity securities	3.33	%	13		2		2.09	%	5		25
Commercial loans	6.57	%	198		(3	)	6.74	%	194		16
Policy loans	4.65	%	34		—		4.62	%	30		—
Short-term investments and cash equivalents	2.19	%	40		5		1.43	%	23		—
Other investments	6.39	%	77		185		6.88	%	73		(23	)

Gross investment income before investment expenses	4.71	%	1,512		228		4.77	%	1,279		49
Investment expenses	-0.17	%	(86	)	—		-0.19	%	(64	)	—

Subtotal	4.54	%	1,426		228		4.58	%	1,215		49

Investment results of other entities and operations (2)			80		(1	)			30		(57	)
Less, investment income relating to divested businesses			(7	)					(1	)

Total			1,499		227				1,244		(8	)

(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 those assets classified as “separate account assets” on our balance sheet.

(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)	Classification for the earlier period presented has been conformed to the current presentation.

Page 32

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Three Months Ended March 31
	2005						2004
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount		Realized Gains / (Losses)		Yield (1)(2)		Amount		Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities	2.14	%	203		(40	)	1.89	%	150		10
Equity securities	2.23	%	8		2		1.24	%	3		23
Commercial loans	4.12	%	33		(2	)	4.27	%	31		3
Policy loans	3.30	%	8		—		3.22	%	7		—
Short-term investments and cash equivalents	0.32	%	1		5		8.51	%	—		—
Other investments	8.01	%	29		77		7.70	%	25		—

Gross investment income before investment expenses	2.45	%	282		42		2.29	%	216		36
Investment expenses	-0.19	%	(22	)	—		-0.22	%	(20	)	—

Total	2.26	%	260		42		2.07	%	196		36

(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)	Classification for the earlier period presented has been conformed to the current presentation.

Page 33

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Three Months Ended March 31
	2005						2004
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount		Realized Gains / (Losses)		Yield (2)(3)		Amount		Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	6.08	%	947		79		6.32	%	804		21
Equity securities	14.20	%	5		—		8.12	%	2		2
Commercial loans	7.44	%	165		(1	)	7.56	%	163		13
Policy loans	5.38	%	26		—		5.32	%	23		—
Short-term investments and cash equivalents	2.61	%	39		—		1.39	%	23		—
Other investments	5.71	%	48		108		6.50	%	48		(23	)

Gross investment income before investment expenses	6.04	%	1,230		186		6.13	%	1,063		13
Investment expenses	-0.15	%	(64	)	—		-0.17	%	(44	)	—

Total	5.89	%	1,166		186		5.96	%	1,019		13

(1)

(2)

(3)	Classification for the earlier period presented has been conformed to the current presentation.

Page 34

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


	2003								2004
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
Revenues (1):
Premiums	1,973		1,953		1,950		2,042		2,191		2,210		2,176		2,218
Policy charges and fee income	458		486		518		562		567		600		615		644
Net investment income	1,250		1,249		1,213		1,223		1,244		1,330		1,397		1,413
Commissions, investment management fees, and other income	872		1,031		665		686		676		917		841		976

Total revenues	4,553		4,719		4,346		4,513		4,678		5,057		5,029		5,251

Benefits and Expenses (1):
Insurance and annuity benefits	2,107		1,988		2,032		2,180		2,289		2,243		2,246		2,254
Interest credited to policyholders’ account balances	418		421		424		428		427		582		580		594
Interest expense	42		42		59		57		53		57		83		103
Deferral of acquisition costs	(285	)	(320	)	(312	)	(353	)	(388	)	(373	)	(360	)	(407	)
Amortization of acquisition costs	160		142		150		81		192		190		212		172
General and administrative expenses	1,682		1,919		1,470		1,625		1,555		1,715		1,633		1,856

Total benefits and expenses	4,124		4,192		3,823		4,018		4,128		4,414		4,394		4,572

Adjusted operating income before income taxes	429		527		523		495		550		643		635		679

(1)

Page 35

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	2003								2004
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
Revenues (1):
Premiums	824		822		779		797		850		826		845		842
Policy charges and fee income	389		413		450		488		490		496		519		541
Net investment income	360		366		349		371		369		378		402		422
Commissions, investment management fees, and other income	53		81		108		145		150		156		162		152

Total revenues	1,626		1,682		1,686		1,801		1,859		1,856		1,928		1,957

Benefits and Expenses (1):
Insurance and annuity benefits	956		896		927		1,042		978		929		966		949
Interest credited to policyholders’ account balances	157		161		158		160		175		178		179		176
Interest expense	—		—		1		(1	)	1		2		10		19
Deferral of acquisition costs	(112	)	(149	)	(161	)	(173	)	(182	)	(180	)	(161	)	(168	)
Amortization of acquisition costs	85		69		80		11		108		109		120		66
General and administrative expenses	377		469		498		556		568		580		569		618

Total benefits and expenses	1,463		1,446		1,503		1,595		1,648		1,618		1,683		1,660

Adjusted operating income before income taxes	163		236		183		206		211		238		245		297

(1)

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE AND ANNUITIES SEGMENT

(in millions)


	2003								2004
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
Revenues (1):
Premiums	113		111		94		98		101		103		111		123
Policy charges and fee income	298		371		399		410		419		420		425		440
Net investment income	208		216		210		227		234		240		259		277
Commissions, investment management fees, and other income	45		74		100		131		139		147		153		142

Total revenues	664		772		803		866		893		910		948		982

Benefits and Expenses (1):
Insurance and annuity benefits	216		224		252		332		217		213		221		241
Interest credited to policyholders’ account balances	97		104		108		111		128		131		133		131
Interest expense	(1	)	—		—		(1	)	1		1		7		15
Deferral of acquisition costs	(104	)	(139	)	(153	)	(165	)	(175	)	(172	)	(155	)	(162	)
Amortization of acquisition costs	84		69		79		10		107		108		119		65
General and administrative expenses	243		336		364		420		430		437		426		449

Total benefits and expenses	535		594		650		707		708		718		751		739

Adjusted operating income before income taxes	129		178		153		159		185		192		197		243

(1)

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INDIVIDUAL ANNUITIES

(in millions)


	2003								2004
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
Revenues (1):
Premiums	19		15		17		13		14		17		16		16
Policy charges and fee income	44		113		144		152		163		164		165		175
Net investment income	107		115		110		121		137		143		154		154
Commissions, investment management fees, and other income	13		46		68		72		72		71		70		77

Total revenues	183		289		339		358		386		395		405		422

Benefits and Expenses (1):
Insurance and annuity benefits	43		46		59		86		51		58		62		60
Interest credited to policyholders’ account balances	61		66		69		72		89		90		91		88
Interest expense	—		1		—		—		1		1		4		3
Deferral of acquisition costs	(27	)	(65	)	(85	)	(90	)	(98	)	(97	)	(83	)	(75	)
Amortization of acquisition costs	17		20		23		(13	)	37		40		44		4
General and administrative expenses	66		156		195		207		208		209		191		203

Total benefits and expenses	160		224		261		262		288		301		309		283

Adjusted operating income before income taxes	23		65		78		96		98		94		96		139

(1)

Page 38

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	2003								2004
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
Revenues (1):
Premiums	14		8		1		6		12		27		43		11
Policy charges and fee income	18		19		17		18		18		47		43		47
Net investment income	556		553		516		526		523		584		619		617
Commissions, investment management fees, and other income	814		906		481		494		477		633		572		734

Total revenues	1,402		1,486		1,015		1,044		1,030		1,291		1,277		1,409

Benefits and Expenses (1):
Insurance and annuity benefits	210		204		187		190		208		208		237		209
Interest credited to policyholders’ account balances	236		233		239		238		226		376		372		388
Interest expense	8		8		9		8		9		1		17		21
Deferral of acquisition costs	(7	)	(8	)	(6	)	(8	)	(8	)	(14	)	(10	)	(19	)
Amortization of acquisition costs	19		17		15		15		15		14		15		9
General and administrative expenses	863		955		488		545		484		634		570		690

Total benefits and expenses	1,329		1,409		932		988		934		1,219		1,201		1,298

Adjusted operating income before income taxes	73		77		83		56		96		72		76		111

(1)

Page 39

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - RETIREMENT SEGMENT

(in millions)


	2003								2004
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
Revenues (1):
Premiums	14		8		1		6		12		27		43		11
Policy charges and fee income	18		19		17		18		18		47		43		47
Net investment income	517		515		498		513		506		565		603		598
Commissions, investment management fees, and other income	32		31		35		39		41		214		211		239

Total revenues	581		573		551		576		577		853		900		895


Benefits and Expenses (1):
Insurance and annuity benefits	210		204		187		190		208		208		237		209
Interest credited to policyholders’ account balances	236		233		239		238		226		376		372		388
Interest expense	5		4		3		5		2		3		14		18
Deferral of acquisition costs	(2	)	(3	)	(2	)	(4	)	(2	)	(9	)	(6	)	(15	)
Amortization of acquisition costs	3		3		3		3		3		3		4		—
General and administrative expenses	76		87		82		89		88		180		185		199

Total benefits and expenses	528		528		512		521		525		761		806		799

Adjusted operating income before income taxes	53		45		39		55		52		92		94		96

(1)

Page 40

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	2003								2004
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
Revenues (1):
Premiums	1,141		1,129		1,170		1,236		1,330		1,354		1,292		1,366
Policy charges and fee income	54		58		54		60		63		61		55		61
Net investment income	191		204		210		186		229		233		242		234
Commissions, investment management fees, and other income	52		59		55		36		61		104		96		101

Total revenues	1,438		1,450		1,489		1,518		1,683		1,752		1,685		1,762


Benefits and Expenses (1):
Insurance and annuity benefits	906		865		894		949		1,083		1,090		1,015		1,061
Interest credited to policyholders’ account balances	25		27		27		30		26		29		29		33
Interest expense	—		1		1		1		1		2		1		3
Deferral of acquisition costs	(177	)	(175	)	(157	)	(186	)	(214	)	(194	)	(206	)	(235	)
Amortization of acquisition costs	74		71		69		70		84		80		92		109
General and administrative expenses	433		445		430		463		482		476		494		538

Total benefits and expenses	1,261		1,234		1,264		1,327		1,462		1,483		1,425		1,509

Adjusted operating income before income taxes	177		216		225		191		221		269		260		253

(1)

Page 41

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE excl. Gibraltar Life

(in millions)


	2003								2004
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q
Revenues (1):
Premiums	626		603		663		689		752		697		742		816
Policy charges and fee income	33		32		34		41		44		38		38		44
Net investment income	49		54		60		70		72		78		82		77
Commissions, investment management fees, and other income	(1	)	—		(7	)	(11	)	(10	)	—		(8	)	(9	)

Total revenues	707		689		750		789		858		813		854		928

Benefits and Expenses (1):
Insurance and annuity benefits	474		451		480		514		592		547		558		619
Interest credited to policyholders’ account balances	3		3		3		4		4		4		4		6
Interest expense	3		3		3		3		3		3		2		4
Deferral of acquisition costs	(130	)	(123	)	(111	)	(134	)	(159	)	(138	)	(150	)	(178	)
Amortization of acquisition costs	64		62		54		53		69		57		73		87
General and administrative expenses	193		184		210		220		228		211		228		264

Total benefits and expenses	607		580		639		660		737		684		715		802

Adjusted operating income before income taxes	100		109		111		129		121		129		139		126

(1)

Page 42

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

KEY DEFINITIONS AND FORMULAS

1. Adjusted operating income before income taxes:

Adjusted operating income is a non-GAAP measure that excludes Realized investment gains (losses), net (other than those associated with terminating hedges of foreign currency earnings and current period yield adjustments), 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 - Capital Debt:

Borrowings that are or will be used for capital requirements at Prudential Financial, Inc as well as borrowings invested in equity or debt securities of direct or indirect subsidiaries of Prudential Financial, Inc., and subsidiary borrowings, utilized for capital requirements.

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.

Page 43

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

KEY DEFINITIONS AND FORMULAS

11. Earned Premiums:

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

12. Earnings Per Share of Common Stock:

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

13. General Account:

Invested assets and policyholder liabilities and reserves for which the Company bears the investment risk. Excludes assets recognized for statutory purposes that are specifically allocated to a separate account. General account assets also include assets of the parent company, Prudential Financial, Inc.

14. Gibraltar Life Advisors:

Insurance representatives for Gibraltar Life.

15. Group Life Insurance and Group Disability Insurance Administrative Operating Expense Ratios:

Ratio of administrative operating expenses (excluding commissions) to gross premiums, policy charges and fee income.

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

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

17. Individual Life Insurance Sales:

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

18. Insurance and Annuity Benefits:

Total death benefits, annuity benefits, disability benefits, other policy benefits, and losses paid or incurred, under insurance and annuity contracts, plus the change in reserves for future policy benefits, losses and loss adjustment expenses.

19. International Life Planners:

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

20. New annualized premiums:

Premiums from new sales that are expected to be collected over a one year period. Group insurance new annualized premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers’ Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance new annualized premiums include premiums from the takeover of claim liabilities.

21. Non-recourse and Limited-recourse Debt:

Limited and non-recourse borrowing is where the holder is entitled to collect only against the assets pledged to the debt as collateral or has only very limited rights to collect against other assets.

Page 44

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

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 14.70% for the three months ended March 31, 2005, 7.65% for the three months ended March 31, 2004, 6.45% for the three months ended December 31, 2004, 11.52% for the three months ended September 30, 2004 and 10.42% for the three months ended June 30, 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 capital debt to total capitalization:

For purposes of this ratio, we measure “debt” as borrowings for capital debt, and we measure “total capitalization” as the sum of equity, excluding unrealized gains and losses on investments, and capital debt.

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.

Page 45

Prudential Financial, Inc.

Quarterly Financial Supplement

First Quarter 2005

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of May 4, 2005


	A.M. Best	Standard & Poor’s	Moody’s	Fitch Ratings
The Prudential Insurance Company of America	A+	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-	Aa3	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 May 4, 2005
Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-2	P-2	F1
Long-Term Senior Debt	a-	A-	A3	A
Retail Notes	a-	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+
PRICOA Global Funding I
Long-Term Senior Debt	aa-	AA-	Aa3	AA-

* NR indicates not rated.

INVESTOR INFORMATION:

Corporate Offices:	Investor Information Hotline:

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

	Web Site:

	www.prudential.com

Publicly Traded Securities:

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

Page 46

Form: 8-K

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