August 3, 2005 - QUARTERLY FINANCIAL SUPPLEMENT - 8-K: Current report

Exhibit 99.1

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Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

SECOND 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.

August 3, 2005


		i

Prudential Financial, Inc.

Quarterly Financial Supplement

Second 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 (Quarter)		6
Combining Statements of Operations by Division		7
Combining Balance Sheets by Division		8
Short-Term Debt		9
Long-Term Debt		10

INSURANCE DIVISION
Combined Statements of Operations		11
Combining Statements of Operations (Quarter)		12
Combining Statements of Operations		13
Individual Life and Annuities Sales Results and Account Values		14
Individual Life Account Value Activity		15
Annuities Account Value Activity		16
Deferred Policy Acquisition Costs		17
Supplementary Information for Individual Life Insurance		18
Supplementary Information for Group Insurance		19

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

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

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

KEY DEFINITIONS AND FORMULAS		37-39

RATINGS AND INVESTOR INFORMATION		40

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

This Quarterly Financial Supplement reflects the classification of results of operations for the Dryden Wealth Management business, formerly reported as “divested businesses”, as discontinued operations for all periods presented, as a result of the Company entering into a definitive agreement to sell these operations.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date				% Change			2004						2005
2005		2004		% Change			2Q		3Q		4Q		1Q		2Q
						*Financial Services Businesses:*
						Pre-tax adjusted operating income by division:
521		449		16	%	Insurance Division	238		245		297		255		266
454		168		170	%	Investment Division	72		76		111		304		150
658		490		34	%	International Insurance and Investments Division	269		260		253		311		347
76		86		-12	%	Corporate and other operations	64		54		18		16		60

1,709		1,193		43	%	Total pre-tax adjusted operating income	643		635		679		886		823
538		313		72	%	Income taxes, applicable to adjusted operating income	142		168		195		285		253

1,171		880		33	%	Financial Services Businesses after-tax adjusted operating income	501		467		484		601		570

						Items excluded from adjusted operating income:
485		144		237	%	Realized investment gains (losses), net, and related charges and adjustments	143		38		(158	)	236		249
63		(272	)	123	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(322	)	208		21		(130	)	193
(62	)	133		-147	%	Change in experience-rated contractholder liabilities due to asset value changes	183		(100	)	(44	)	86		(148	)
(4	)	(19	)	79	%	Divested businesses	(3	)	(15	)	10		(5	)	1

482		(14	)	3543	%	Total items excluded from adjusted operating income, before income taxes	1		131		(171	)	187		295
88		(20	)	540	%	Income taxes, applicable to items excluded from adjusted operating income	(8	)	36		(70	)	21		67

394		6		6467	%	Total items excluded from adjusted operating income, after income taxes	9		95		(101	)	166		228

1,565		886		77	%	Income from continuing operations (after-tax) of Financial Services Businesses before extraordinary gain on acquisition and cumulative effect of accounting change	510		562		383		767		798
(45	)	(18	)	-150	%	Loss from discontinued operations, net of taxes	(11	)	(15	)	(66	)	(1	)	(44	)
—		20		-100	%	Extraordinary gain on acquisition, net of taxes	20		1		—		—		—
—		(79	)	100	%	Cumulative effect of accounting change, net of taxes	—		—		—		—		—

1,520		809		88	%	Net income of Financial Services Businesses	519		548		317		766		754

						Earnings per share of Common Stock (diluted):
2.30		1.72				Financial Services Businesses after-tax adjusted operating income	0.98		0.93		0.96		1.18		1.13
						Items excluded from adjusted operating income:
0.92		0.27				Realized investment gains (losses), net, and related charges and adjustments	0.27		0.07		(0.30	)	0.45		0.47
0.12		(0.51	)			Investment gains (losses) on trading account assets supporting insurance liabilities, net	(0.60	)	0.40		0.04		(0.25	)	0.37
(0.12	)	0.25				Change in experience-rated contractholder liabilities due to asset value changes	0.34		(0.19	)	(0.08	)	0.16		(0.28	)
(0.01	)	(0.04	)			Divested businesses	(0.01	)	(0.03	)	0.01		(0.01	)	—

0.91		(0.03	)			Total items excluded from adjusted operating income, before income taxes	—		0.25		(0.33	)	0.35		0.56
0.17		(0.04	)			Income taxes, applicable to items excluded from adjusted operating income	(0.02	)	0.07		(0.13	)	0.04		0.13

0.74		0.01				Total items excluded from adjusted operating income, after income taxes	0.02		0.18		(0.20	)	0.31		0.43

3.04		1.73				Income from continuing operations (after-tax) of Financial Services Businesses before extraordinary gain on acquisition and cumulative effect of accounting change	1.00		1.11		0.76		1.49		1.56
(0.08	)	(0.03	)			Loss from discontinued operations, net of taxes	(0.02	)	(0.03	)	(0.12	)	—		(0.08	)
—		0.04				Extraordinary gain on acquisition, net of taxes	0.04		—		—		—		—
—		(0.15	)			Cumulative effect of accounting change, net of taxes	—		—		—		—		—

2.96		1.59				Net income of Financial Services Businesses	1.02		1.08		0.64		1.49		1.48

527.6		536.0				Weighted average number of outstanding Common shares (diluted basis)	532.2		525.7		527.3		530.0		525.2

12.17	%	9.94	%			Operating Return on Average Equity (based on adjusted operating income)	11.26	%	10.38	%	10.46	%	12.60	%	11.75	%

						*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
1,520		809				Net income of Financial Services Businesses (above)	519		548		317		766		754
292		141				Net income of Closed Block Business	30		180		261		163		129

1,812		950				Consolidated net income	549		728		578		929		883

44		42				Direct equity adjustments for earnings per share calculations	23		22		20		22		22

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			2004			2005
2005	2004		2Q	3Q	4Q	1Q	2Q
		*Financial Services Businesses Capitalization Data (1):*
		Short-term debt	4,432	6,135	3,896	6,253	5,856
		Long-term debt	4,437	5,708	5,877	5,981	6,984

		Attributed Equity:
		Including accumulated other comprehensive income	19,619	20,457	21,209	21,244	22,375
		Excluding unrealized gains and losses on investments	18,695	18,987	19,561	20,008	20,311
		Excluding accumulated other comprehensive income	18,755	18,995	19,392	19,907	20,292

		Total Capitalization:
		Including accumulated other comprehensive income	24,056	26,165	27,086	27,225	29,359
		Excluding unrealized gains and losses on investments	23,132	24,695	25,438	25,989	27,295
		Excluding accumulated other comprehensive income	23,192	24,703	25,269	25,888	27,276

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	37.11	39.19	39.90	40.35	42.82
		Excluding unrealized gains and losses on investments	35.36	36.37	36.80	38.00	38.87
		Excluding accumulated other comprehensive income	35.47	36.39	36.49	37.81	38.84

		Number of diluted shares at end of period	528.7	522.0	531.5	526.5	522.5

		*Common Stock Price Range (based on closing price):*
66.30	48.11	High	46.47	48.10	55.09	59.32	66.30
52.62	41.05	Low	41.05	44.30	42.87	52.62	55.23
65.66	46.47	Close	46.47	47.04	54.96	57.40	65.66

		*Common Stock market capitalization (1)*	24,209	24,158	28,983	29,980	33,707

(1)	As of end of period.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

OPERATIONS HIGHLIGHTS


Year-to-date			2004			2005
2005	2004		2Q	3Q	4Q	1Q	2Q
		*Assets Under Management and Administration ($ billions) (1) (2):*

		Assets Under Management :
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Retail customers	74.4	62.3	66.0	64.8	65.7
		Institutional customers	106.3	108.9	119.2	119.0	125.3
		General account	147.6	152.3	152.7	155.3	157.6

		Total Investment Management and Advisory Services	328.3	323.5	337.9	339.1	348.6

		Non-proprietary assets under management	43.6	43.5	44.8	44.0	46.5

		Total managed by Investment Division	371.9	367.0	382.7	383.1	395.1
		Managed by International Insurance and Investments Division	67.0	67.1	77.7	74.0	74.1
		Managed by Insurance Division	35.3	35.9	39.1	38.6	41.8

		Total assets under management	474.2	470.0	499.5	495.7	511.0
		Client assets under administration	64.6	72.9	82.2	85.3	90.0

		Total assets under management and administration	538.8	542.9	581.7	581.0	601.0

		Assets managed or administered for customers outside of the United States at end of period	97.3	96.4	107.0	104.9	107.0

		*Distribution Representatives (1):*
		Prudential Agents	4,001	3,982	3,682	3,519	3,340
		International Life Planners	5,123	5,234	5,385	5,555	5,529
		Gibraltar Life Advisors	4,888	4,759	4,970	4,902	4,788

39	38	*Prudential Agent productivity ($ thousands)*	40	37	54	37	42

		*Third Party Distribution - Retail Products ($ millions) (3):*
86	62	Individual life insurance (4)	34	45	48	39	47
2	7	Corporate-owned life insurance sales	1	3	1	1	1
2,777	2,742	Individual annuities	1,332	1,078	1,014	1,137	1,640
12,751	5,128	Mutual funds and wrap-fee products	2,386	4,002	4,936	6,261	6,490


(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

Second Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


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

5,127	4,401		16	%	Premiums	2,210		2,176		2,218		2,529		2,598
1,255	1,167		8	%	Policy charges and fee income	600		615		644		626		629
3,014	2,574		17	%	Net investment income	1,330		1,397		1,413		1,499		1,515
1,959	1,593		23	%	Commissions, investment management fees, and other income	917		841		976		977		982

11,355	9,735		17	%	Total revenues	5,057		5,029		5,251		5,631		5,724

					Benefits and Expenses (1):
5,103	4,532		13	%	Insurance and annuity benefits	2,243		2,246		2,254		2,559		2,544
1,226	1,009		22	%	Interest credited to policyholders’ account balances	582		580		594		603		623
245	110		123	%	Interest expense	57		83		103		111		134
(916)	(761	)	-20	%	Deferral of acquisition costs	(373	)	(360	)	(407	)	(416	)	(500	)
465	382		22	%	Amortization of acquisition costs	190		212		172		229		236
3,523	3,270		8	%	General and administrative expenses	1,715		1,633		1,856		1,659		1,864

9,646	8,542		13	%	Total benefits and expenses	4,414		4,394		4,572		4,745		4,901

1,709	1,193		43	%	Adjusted operating income before income taxes	643		635		679		886		823

					Items excluded from adjusted operating income before income taxes:
579	164		253	%	Realized investment gains (losses), net, and related adjustments	155		50		(132	)	257		322
(94)	(20	)	-370	%	Related charges	(12	)	(12	)	(26	)	(21	)	(73	)

485	144		237	%	Total realized investment gains (losses), net, and related charges and adjustments	143		38		(158	)	236		249

63	(272	)	123	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	(322	)	208		21		(130	)	193
(62)	133		-147	%	Change in experience-rated contractholder liabilities due to asset value changes	183		(100	)	(44	)	86		(148	)
(4)	(19	)	79	%	Divested businesses	(3	)	(15	)	10		(5	)	1

482	(14	)	3543	%	Total items excluded from adjusted operating income before income taxes	1		131		(171	)	187		295

2,191	1,179		86	%	Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change	644		766		508		1,073		1,118
626	293		114	%	Income tax expense	134		204		125		306		320

1,565	886		77	%	Income from continuing operations before extraordinary gain on acquisition and cumulative effect of accounting change	510		562		383		767		798

(1)

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

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Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	6/30/2004	9/30/2004	12/31/2004	3/31/2005	6/30/2005
Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $87,800; $89,640; $97,732; $100,301; $100,719)	90,596	93,889	102,155	103,966	106,151
Fixed maturities, held to maturity, at amortized cost (fair value $2,704; $2,633; $2,765; $3,412; $3,294)	2,724	2,607	2,747	3,389	3,245
Trading account assets supporting insurance liabilities, at fair value	11,920	12,695	12,964	13,239	13,744
Other trading account assets, at fair value	3,098	3,222	1,547	1,488	1,410
Equity securities, available for sale, at fair value (cost $1,271; $1,282; $1,473; $1,634; $1,636)	1,422	1,457	1,663	1,865	1,867
Commercial loans	16,412	16,315	17,092	16,569	16,156
Policy loans	2,608	2,606	2,919	2,943	2,935
Securities purchased under agreements to resell	147	190	127	171	60
Other long-term investments	4,553	4,518	4,934	4,644	4,485
Short-term investments	3,818	2,399	3,405	2,992	2,541

Total investments	137,298	139,898	149,553	151,266	152,594
Cash and cash equivalents	4,053	4,471	6,164	6,291	6,055
Accrued investment income	1,238	1,317	1,307	1,375	1,350
Reinsurance recoverables	35,843	34,825	32,790	3,767	3,648
Deferred policy acquisition costs	7,086	7,022	7,624	7,854	7,891
Other assets	14,910	16,000	16,472	16,644	15,631
Separate account assets	103,961	105,621	115,568	142,568	149,256

Total assets	304,389	309,154	329,478	329,765	336,425

Liabilities:
Future policy benefits	46,817	47,673	52,522	52,370	52,332
Policyholders’ account balances	63,236	63,521	69,940	70,287	70,673
Unpaid claims and claim adjustment expenses	1,740	1,775	1,807	1,839	1,879
Reinsurance payables	35,444	34,469	32,386	3,345	3,203
Securities sold under agreements to repurchase	5,685	4,957	4,657	6,087	5,739
Cash collateral for loaned securities	3,661	2,978	4,248	3,246	3,048
Income taxes payable	2,015	2,427	2,681	2,508	2,832
Securities sold but not yet purchased	345	503	427	466	144
Short-term debt	4,432	6,135	3,896	6,253	5,856
Long-term debt	4,437	5,708	5,877	5,981	6,984
Other liabilities	12,997	12,930	14,260	13,571	12,104
Separate account liabilities	103,961	105,621	115,568	142,568	149,256

Total liabilities	284,770	288,697	308,269	308,521	314,050

Attributed Equity:
Accumulated other comprehensive income	864	1,462	1,817	1,337	2,083
Other attributed equity	18,755	18,995	19,392	19,907	20,292

Total attributed equity	19,619	20,457	21,209	21,244	22,375

Total liabilities and attributed equity	304,389	309,154	329,478	329,765	336,425

Page 5

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended June 30, 2005
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,598		950		103		1,550		(5	)
Policy charges and fee income	629		519		48		66		(4	)
Net investment income	1,515		420		631		318		146
Commissions, investment management fees, and other income	982		164		726		84		8

Total revenues	5,724		2,053		1,508		2,018		145

Benefits and Expenses (1):
Insurance and annuity benefits	2,544		1,054		272		1,200		18
Interest credited to policyholders’ account balances	623		183		397		52		(9	)
Interest expense	134		25		25		6		78
Deferral of acquisition costs	(500	)	(234	)	(16	)	(265	)	15
Amortization of acquisition costs	236		126		14		108		(12	)
General and administrative expenses	1,864		633		666		570		(5	)

Total benefits and expenses	4,901		1,787		1,358		1,671		85

Adjusted operating income before income taxes	823		266		150		347		60


	Quarter Ended June 30, 2004
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,210		826		27		1,354		3
Policy charges and fee income	600		496		47		61		(4	)
Net investment income	1,330		378		584		233		135
Commissions, investment management fees, and other income	917		156		633		104		24

Total revenues	5,057		1,856		1,291		1,752		158

Benefits and Expenses (1):
Insurance and annuity benefits	2,243		929		208		1,090		16
Interest credited to policyholders’ account balances	582		178		376		29		(1	)
Interest expense	57		2		1		2		52
Deferral of acquisition costs	(373	)	(180	)	(14	)	(194	)	15
Amortization of acquisition costs	190		109		14		80		(13	)
General and administrative expenses	1,715		580		634		476		25

Total benefits and expenses	4,414		1,618		1,219		1,483		94

Adjusted operating income before income taxes	643		238		72		269		64

(1)

Page 6

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Six Months Ended June 30, 2005
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	5,127		1,891		144		3,102		(10	)
Policy charges and fee income	1,255		1,032		94		137		(8	)
Net investment income	3,014		853		1,268		627		266
Commissions, investment management fees, and other income	1,959		301		1,475		196		(13	)

Total revenues	11,355		4,077		2,981		4,062		235

Benefits and Expenses (1):
Insurance and annuity benefits	5,103		2,122		487		2,458		36
Interest credited to policyholders’ account balances	1,226		360		781		98		(13	)
Interest expense	245		50		47		12		136
Deferral of acquisition costs	(916	)	(399	)	(33	)	(516	)	32
Amortization of acquisition costs	465		253		28		209		(25	)
General and administrative expenses	3,523		1,170		1,217		1,143		(7	)

Total benefits and expenses	9,646		3,556		2,527		3,404		159

Adjusted operating income before income taxes	1,709		521		454		658		76


	Six Months Ended June 30, 2004
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	4,401		1,676		39		2,684		2
Policy charges and fee income	1,167		986		65		124		(8	)
Net investment income	2,574		747		1,107		462		258
Commissions, investment management fees, and other income	1,593		306		1,110		165		12

Total revenues	9,735		3,715		2,321		3,435		264

Benefits and Expenses (1):
Insurance and annuity benefits	4,532		1,907		416		2,173		36
Interest credited to policyholders’ account balances	1,009		353		602		55		(1	)
Interest expense	110		3		10		3		94
Deferral of acquisition costs	(761	)	(362	)	(22	)	(408	)	31
Amortization of acquisition costs	382		217		29		164		(28	)
General and administrative expenses	3,270		1,148		1,118		958		46

Total benefits and expenses	8,542		3,266		2,153		2,945		178

Adjusted operating income before income taxes	1,193		449		168		490		86

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of June 30, 2005
	Total Financial Services Businesses	Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	152,594	32,600	57,773	50,300	11,921
Deferred policy acquisition costs	7,891	4,366	91	3,588	(154	)
Other assets	26,684	3,288	10,021	6,747	6,628
Separate account assets	149,256	72,846	77,481	40	(1,111	)

Total assets	336,425	113,100	145,366	60,675	17,284

Liabilities:
Future policy benefits	52,332	5,403	13,972	32,361	596
Policyholders’ account balances	70,673	18,843	38,082	14,551	(803	)
Debt	12,840	1,716	1,226	1,018	8,880
Other liabilities	28,949	8,157	8,728	7,455	4,609
Separate account liabilities	149,256	72,846	77,481	40	(1,111	)

Total liabilities	314,050	106,965	139,489	55,425	12,171

Attributed Equity:
Accumulated other comprehensive income	2,083	650	207	1,049	177
Other attributed equity	20,292	5,485	5,670	4,201	4,936

Total attributed equity	22,375	6,135	5,877	5,250	5,113

Total liabilities and attributed equity	336,425	113,100	145,366	60,675	17,284


	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 8

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

SHORT TERM DEBT

(in millions)


	As of June 30, 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	—	5	—	5	97	5	—	102
Investment related	2	3,284	—	3,286	158	521	—	679
Securities business related	95	766	789	1,650	86	906	1,330	2,322
Specified other businesses	107	666	141	914	105	548	139	792
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1

Total short-term debt - Financial Services Businesses	204	4,721	931	5,856	446	1,980	1,470	3,896

*Borrowings by type:*

Long-term debt due within one year	2	59	—	61	—	57	—	57
Commercial paper	202	4,646	—	4,848	446	1,853	—	2,299
Bank borrowings	—	—	329	329	—	—	754	754
Other short-term debt	—	16	601	617	—	70	715	785

Total general obligations	204	4,721	930	5,855	446	1,980	1,469	3,895
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1

Total short-term debt - Financial Services Businesses	204	4,721	931	5,856	446	1,980	1,470	3,896

Closed Block Business:

Investment related commercial paper borrowings	—	378	—	378	—	148	—	148

(1)	Includes Prudential Funding, LLC.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

LONG TERM DEBT

(in millions)


	As of June 30, 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	2,430		1,877	965	10	5,282	—	5,282
Hybrid notes	—		—	—	—	—	—	—

Total	2,430		1,877	965	10	5,282	—	5,282

The Prudential Insurance Company of America (1):
Surplus notes	692		—	—	—	692	—	692
Long-term fixed and floating rate notes	600		355	—	—	955	—	955
Commercial paper backed by long-term credit agreements	—		—	—	—	—	—	—

Total	1,292		355	—	—	1,647	—	1,647

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

Total long-term debt of Financial Services Businesses	3,722		2,232	965	10	6,929	55	6,984

Ratio of long-term and short-term capital debt to capitalization	15.5	%

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 10

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


Year-to-date			% Change			2004						2005
2005	2004		% Change			2Q		3Q		4Q		1Q		2Q
					Revenues (1):
1,891	1,676		13	%	Premiums	826		845		842		941		950
1,032	986		5	%	Policy charges and fee income	496		519		541		513		519
853	747		14	%	Net investment income	378		402		422		433		420
301	306		-2	%	Commissions, investment management fees, and other income	156		162		152		137		164

4,077	3,715		10	%	Total revenues	1,856		1,928		1,957		2,024		2,053

					Benefits and Expenses (1):
2,122	1,907		11	%	Insurance and annuity benefits	929		966		949		1,068		1,054
360	353		2	%	Interest credited to policyholders’ account balances	178		179		176		177		183
50	3		1567	%	Interest expense	2		10		19		25		25
(399)	(362	)	-10	%	Deferral of acquisition costs	(180	)	(161	)	(168	)	(165	)	(234	)
253	217		17	%	Amortization of acquisition costs	109		120		66		127		126
1,170	1,148		2	%	General and administrative expenses	580		569		618		537		633

3,556	3,266		9	%	Total benefits and expenses	1,618		1,683		1,660		1,769		1,787

521	449		16	%	Adjusted operating income before income taxes	238		245		297		255		266

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

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Quarter Ended June 30, 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	950		117		833		105		12
Policy charges and fee income	519		450		69		265		185
Net investment income	420		272		148		119		153
Commissions, investment management fees, and other income	164		154		10		77		77

Total revenues	2,053		993		1,060		566		427

Benefits and Expenses (1):
Insurance and annuity benefits	1,054		236		818		178		58
Interest credited to policyholders’ account balances	183		131		52		44		87
Interest expense	25		21		4		15		6
Deferral of acquisition costs	(234	)	(196	)	(38	)	(79	)	(117	)
Amortization of acquisition costs	126		125		1		70		55
General and administrative expenses (2)	633		456		177		219		237

Total benefits and expenses	1,787		773		1,014		447		326

Adjusted operating income before income taxes	266		220		46		119		101

	Quarter Ended June 30, 2004
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life		Individual Annuities
Revenues (1):
Premiums	826		103		723		86		17
Policy charges and fee income	496		420		76		256		164
Net investment income	378		240		138		97		143
Commissions, investment management fees, and other income	156		147		9		76		71

Total revenues	1,856		910		946		515		395

Benefits and Expenses (1):
Insurance and annuity benefits	929		213		716		155		58
Interest credited to policyholders’ account balances	178		131		47		41		90
Interest expense	2		1		1		—		1
Deferral of acquisition costs	(180	)	(172	)	(8	)	(75	)	(97	)
Amortization of acquisition costs	109		108		1		68		40
General and administrative expenses (2)	580		437		143		228		209

Total benefits and expenses	1,618		718		900		417		301

Adjusted operating income before income taxes	238		192		46		98		94

(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 $7 million for the quarter ended June 30, 2005 and $8 million for the quarter ended June 30, 2004 for the amortization, net of interest, of value of business acquired (VOBA) associated with the May 1, 2003 acquisition of American Skandia.

Page 12

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Six Months Ended June 30, 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	1,891		240		1,651		203		37
Policy charges and fee income	1,032		889		143		527		362
Net investment income	853		554		299		244		310
Commissions, investment management fees, and other income	301		282		19		132		150

Total revenues	4,077		1,965		2,112		1,106		859

Benefits and Expenses (1):
Insurance and annuity benefits	2,122		477		1,645		349		128
Interest credited to policyholders’ account balances	360		257		103		86		171
Interest expense	50		41		9		30		11
Deferral of acquisition costs	(399	)	(353	)	(46	)	(153	)	(200	)
Amortization of acquisition costs	253		251		2		142		109
General and administrative expenses (2)	1,170		855		315		416		439

Total benefits and expenses	3,556		1,528		2,028		870		658

Adjusted operating income before income taxes	521		437		84		236		201

	Six Months Ended June 30, 2004
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life		Individual Annuities
Revenues (1):
Premiums	1,676		204		1,472		173		31
Policy charges and fee income	986		839		147		512		327
Net investment income	747		474		273		194		280
Commissions, investment management fees, and other income	306		286		20		143		143

Total revenues	3,715		1,803		1,912		1,022		781

Benefits and Expenses (1):
Insurance and annuity benefits	1,907		430		1,477		321		109
Interest credited to policyholders’ account balances	353		259		94		80		179
Interest expense	3		2		1		—		2
Deferral of acquisition costs	(362	)	(347	)	(15	)	(152	)	(195	)
Amortization of acquisition costs	217		215		2		138		77
General and administrative expenses (2)	1,148		867		281		450		417

Total benefits and expenses	3,266		1,426		1,840		837		589

Adjusted operating income before income taxes	449		377		72		185		192

(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 $15 million for the six months ended June 30, 2005 and $16 million for the six months ended June 30, 2004 for the amortization, net of interest, of value of business acquired (VOBA) associated with the May 1, 2003 acquisition of American Skandia.

Page 13

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

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

(in millions)


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

			Excluding corporate-owned life insurance:
37	53		Variable life	27		25		19		19		18
104	71		Universal life	39		48		59		51		53
59	60		Term life	28		28		28		29		30

200	184		Total excluding corporate-owned life insurance	94		101		106		99		101
2	7		Corporate-owned life insurance	1		4		3		1		1

202	191		Total	95		105		109		100		102

			ANNUITY SALES AND ACCOUNT VALUES
			Variable Annuities:
47,418	43,949		Beginning total account value	44,858		44,927		44,474		47,418		46,386
3,212	3,259		Sales	1,536		1,259		1,288		1,433		1,779
(2,858)	(2,615	)	Surrenders and withdrawals (1)	(1,263	)	(1,266	)	(1,343	)	(1,388	)	(1,470	)

354	644		Net sales (redemptions)	273		(7	)	(55	)	45		309
(293)	(304	)	Benefit payments	(143	)	(154	)	(155	)	(145	)	(148	)

61	340		Net flows	130		(161	)	(210	)	(100	)	161
241	927		Change in market value, interest credited, and other (1)	84		(146	)	3,310		(774	)	1,015
(318)	(289	)	Policy charges	(145	)	(146	)	(156	)	(158	)	(160	)

47,402	44,927		Ending total account value	44,927		44,474		47,418		46,386		47,402

			Fixed Annuities:
3,879	3,514		Beginning total account value	3,574		3,722		3,860		3,879		3,879
295	288		Sales	196		175		69		52		243
(109)	(102	)	Surrenders and withdrawals (1)	(51	)	(44	)	(45	)	(56	)	(53	)

186	186		Net sales	145		131		24		(4	)	190
(84)	(83	)	Benefit payments	(38	)	(41	)	(39	)	(41	)	(43	)

102	103		Net flows	107		90		(15	)	(45	)	147
86	107		Interest credited and other (1)	42		49		35		46		40
(3)	(2	)	Policy charges	(1	)	(1	)	(1	)	(1	)	(2	)

4,064	3,722		Ending total account value	3,722		3,860		3,879		3,879		4,064

			SALES BY DISTRIBUTION CHANNEL
			Life Insurance:
			Excluding corporate-owned life insurance:
114	122		Prudential Agents	60		56		58		60		54
86	62		Third party distribution	34		45		48		39		47
2	7		Corporate-owned life insurance	1		4		3		1		1

202	191		Total	95		105		109		100		102

			Variable and Fixed Annuities (2):
730	805		Prudential Agents	400		356		343		348		382
280	204		Wirehouses	96		87		121		122		158
2,497	2,538		Independent Financial Planners (3)	1,236		991		893		1,015		1,482

3,507	3,547		Total	1,732		1,434		1,357		1,485		2,022

(1)	Activity for Q1 2005 reflects a change in previously reported amounts within “Change in market value, interest credited, and other activity,” and “Surrenders and withdrawals”.

(2)	Amounts represent gross sales.

(3)	Including bank distribution.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

INSURANCE DIVISION - INDIVIDUAL LIFE ACCOUNT VALUE ACTIVITY

(in millions)


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

			Policyholders’ Account Balances (1):
4,998	4,520		Beginning balance	4,567		4,742		4,809		4,998		5,142
666	588		Premiums and deposits	295		307		293		310		356
(371)	(319	)	Surrenders and withdrawals	(161	)	(159	)	(157	)	(165	)	(206	)

295	269		Net sales	134		148		136		145		150
(58)	(47	)	Benefit payments	(22	)	(25	)	(24	)	(31	)	(27	)

237	222		Net flows	112		123		112		114		123
61	33		Interest credited and other	82		(31	)	103		53		8
34	33		Net transfers from separate account	15		10		14		16		18
(81)	(66	)	Policy charges	(34	)	(36	)	(40	)	(39	)	(42	)

5,249	4,742		Ending balance	4,742		4,809		4,998		5,142		5,249

			Separate Account Liabilities:
15,180	13,981		Beginning balance	14,246		14,303		14,209		15,180		14,912
641	686		Premiums and deposits	355		329		318		310		331
(298)	(285	)	Surrenders and withdrawals	(140	)	(158	)	(144	)	(141	)	(157	)

343	401		Net sales	215		171		174		169		174
(8)	(14	)	Benefit payments	(6	)	(7	)	(3	)	(8	)	—

335	387		Net flows	209		164		171		161		174
182	415		Change in market value, interest credited and other	87		(5	)	1,037		(182	)	364
(90)	(76	)	Net transfers to general account	(37	)	(50	)	(34	)	(47	)	(43	)
(400)	(404	)	Policy charges	(202	)	(203	)	(203	)	(200	)	(200	)

15,207	14,303		Ending balance	14,303		14,209		15,180		14,912		15,207

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

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

INSURANCE DIVISION - ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


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

				Account Values in General Account (1):
9,613		7,660		Beginning balance	9,675		10,101		10,026		9,613		9,662
493		587		Premiums and deposits	338		273		182		185		308
(483	)	(460	)	Surrenders and withdrawals (2)	(209	)	(187	)	(163	)	(239	)	(244	)

10		127		Net sales (redemptions)	129		86		19		(54	)	64
(164)		(163	)	Benefit payments	(81	)	(77	)	(78	)	(82	)	(82	)

(154)		(36	)	Net flows	48		9		(59	)	(136	)	(18	)
182		140		Interest credited and other	118		99		96		90		92
145		2,340		Net transfers (to) from separate account (2)(3)	261		(182	)	(449	)	97		48
(4	)	(3	)	Policy charges	(1	)	(1	)	(1	)	(2	)	(2	)

9,782		10,101		Ending balance	10,101		10,026		9,613		9,662		9,782

				Account Values in Separate Account:
41,684		39,803		Beginning balance	38,757		38,548		38,308		41,684		40,602
3,014		2,960		Premiums and deposits	1,394		1,161		1,175		1,300		1,714
(2,485	)	(2,257	)	Surrenders and withdrawals (2)	(1,105	)	(1,123	)	(1,225	)	(1,206	)	(1,279	)

529		703		Net sales (redemptions)	289		38		(50	)	94		435
(213)		(224	)	Benefit payments	(100	)	(118	)	(116	)	(104	)	(109	)

316		479		Net flows	189		(80	)	(166	)	(10	)	326
146		894		Change in market value, interest credited and other (2)	8		(196	)	3,249		(818	)	964
(145	)	(2,340	)	Net transfers (to) from general account (2)(3)	(261	)	182		449		(97	)	(48	)
(317	)	(288	)	Policy charges	(145	)	(146	)	(156	)	(157	)	(160	)

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

(1)

Premiums and deposits, and surrenders and withdrawals, are classified within the general account and separate account for purposes of this presentation based on the allocation of customer funds. For example, premiums allocated by customers to separate account investments at the time of sale, while remitted through the company’s general account, are shown as separate account premium in this display, rather than as general account premium and transfers to the separate account.

(2)

Activity for Q1 2005 reflects a change in previously reported amounts for Account Values in General Account within “Net transfer (to) from separate account,” and “Surrenders and withdrawals” and for Account Values in Separate Account within “Net transfer (to) from general account,” “Surrenders and withdrawals” and “Change in market value, interest credited and other”.

(3)

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

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)


Year-to-date					2004						2005
2005		2004			2Q		3Q		4Q		1Q		2Q
				INDIVIDUAL LIFE INSURANCE:
3,151		3,194		Beginning balance	3,032		3,141		3,012		3,151		3,210
153		152		Capitalization	75		72		87		74		79
(142	)	(138	)	Amortization - operating results	(68	)	(75	)	(61	)	(72	)	(70	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		(66	)	Impact of unrealized (gains) or losses on AFS securities	103		(127	)	113		57		(57	)

3,162		3,141		Ending balance	3,141		3,012		3,151		3,210		3,162

				INDIVIDUAL ANNUITIES:
907		636		Beginning balance	697		851		837		907		1,012
200		195		Capitalization	97		83		75		83		117
(109)		(77	)	Amortization - operating results	(40	)	(44	)	(4	)	(54	)	(55	)
1		(2	)	Amortization - realized investment gains and losses	(3	)	2		(2	)	(1	)	2
50		95		Impact of unrealized (gains) or losses on AFS securities	100		(55	)	1		77		(27	)
—		4		Other (1)	—		—		—		—		—

1,049		851		Ending balance	851		837		907		1,012		1,049

				GROUP INSURANCE:
111		88		Beginning balance	94		101		106		111		118
46		15		Capitalization	8		6		6		8		38
(2)		(2	)	Amortization - operating results	(1	)	(1	)	(1	)	(1	)	(1	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

155		101		Ending balance	101		106		111		118		155

				TOTAL INSURANCE DIVISION:
4,169		3,918		Beginning balance	3,823		4,093		3,955		4,169		4,340
399		362		Capitalization	180		161		168		165		234
(253)		(217	)	Amortization - operating results	(109	)	(120	)	(66	)	(127	)	(126	)
1		(2	)	Amortization - realized investment gains and losses	(3	)	2		(2	)	(1	)	2
50		29		Impact of unrealized (gains) or losses on AFS securities	203		(182	)	114		134		(84	)
—		4		Other (1)	—		—		—		—		—

4,366		4,093		Ending balance	4,093		3,955		4,169		4,340		4,366

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

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


Year-to-date					2004						2005
2005		2004			2Q		3Q		4Q		1Q		2Q
				Individual Life Insurance:

				Policy Surrender Experience:

321		316		Cash value of surrenders	152		167		150		155		166

3.3	%	3.4	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.2	%	3.6	%	3.1	%	3.2	%	3.4	%

				Death benefits per $1,000 of in force (1):
2.98		2.91		Variable and universal life	2.86		2.64		2.46		3.10		2.88
1.33		1.22		Term life	0.76		1.43		1.67		1.37		1.32
2.69		2.67		Total, Individual Life Insurance	2.58		2.49		2.40		2.74		2.67

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

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


Year-to-date					2004						2005
2005		2004			2Q		3Q		4Q		1Q		2Q
				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
304		161		Group life	34		34		42		274		30
122		105		Group disability (1)	15		38		18		76		46

426		266		Total	49		72		60		350		76

				Future Policy Benefits (2):
				Group life	1,760		1,734		1,881		1,891		1,948
				Group disability (1)	279		291		302		362		375

				Total	2,039		2,025		2,183		2,253		2,323

				Policyholders’ Account Balances (2):
				Group life	4,420		4,412		4,566		4,516		4,462
				Group disability (1)	61		66		71		74		85

				Total	4,481		4,478		4,637		4,590		4,547

				Separate Account Liabilities (2):
				Group life	10,810		11,198		12,483		12,832		15,954
				Group disability (1)	—		—		—		—		—

				Total	10,810		11,198		12,483		12,832		15,954

				Group Life Insurance:
1,377		1,287		Gross premiums, policy charges and fee income (3)	613		637		762		694		683
1,421		1,281		Earned premiums, policy charges and fee income	634		652		644		714		707
89.9	%	90.2	%	Benefits ratio	88.2	%	88.7	%	84.5	%	90.1	%	89.7	%
9.3	%	10.3	%	Administrative operating expense ratio	11.1	%	10.8	%	12.1	%	8.9	%	9.7	%
				Persistency ratio	94.7	%	94.3	%	93.9	%	96.8	%	96.4	%

				Group Disability Insurance (1):
398		350		Gross premiums, policy charges and fee income (3)	174		182		179		188		210
373		338		Earned premiums, policy charges and fee income	165		176		176		178		195
98.7	%	95.3	%	Benefits ratio	95.2	%	95.5	%	92.6	%	102.8	%	94.9	%
20.6	%	21.4	%	Administrative operating expense ratio	21.8	%	22.0	%	23.5	%	22.3	%	19.1	%
				Persistency ratio	89.3	%	87.4	%	85.8	%	91.6	%	90.2	%

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

(2)	As of end of period.

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

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year-to-date			% Change			2004						2005
2005	2004		% Change			2Q		3Q		4Q		1Q		2Q
					Revenues (1):
144	39		269	%	Premiums	27		43		11		41		103
94	65		45	%	Policy charges and fee income	47		43		47		46		48
1,268	1,107		15	%	Net investment income	584		619		617		637		631
1,475	1,110		33	%	Commissions, investment management fees, and other income	633		572		734		749		726

2,981	2,321		28	%	Total revenues	1,291		1,277		1,409		1,473		1,508

					Benefits and Expenses (1):
487	416		17	%	Insurance and annuity benefits	208		237		209		215		272
781	602		30	%	Interest credited to policyholders’ account balances	376		372		388		384		397
47	10		370	%	Interest expense	1		17		21		22		25
(33)	(22	)	-50	%	Deferral of acquisition costs	(14	)	(10	)	(19	)	(17	)	(16	)
28	29		-3	%	Amortization of acquisition costs	14		15		9		14		14
1,217	1,118		9	%	General and administrative expenses	634		570		690		551		666

2,527	2,153		17	%	Total benefits and expenses	1,219		1,201		1,298		1,169		1,358

454	168		170	%	Adjusted operating income before income taxes	72		76		111		304		150

(1)

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Six Months Ended June 30, 2005								Quarter Ended June 30, 2005
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	144		—		—		144		103		—		—		103
Policy charges and fee income	94		—		—		94		48		—		—		48
Net investment income	1,268		33		4		1,231		631		15		3		613
Commissions, investment management fees, and other income	1,475		786		203		486		726		386		92		248

Total revenues	2,981		819		207		1,955		1,508		401		95		1,012

Benefits and Expenses (1):
Insurance and annuity benefits	487		—		—		487		272		—		—		272
Interest credited to policyholders’ account balances	781		—		—		781		397		—		—		397
Interest expense	47		7		—		40		25		4		—		21
Deferral of acquisition costs	(33	)	(9	)	—		(24	)	(16	)	(5	)	—		(11	)
Amortization of acquisition costs	28		18		—		10		14		9		—		5
General and administrative expenses	1,217		564		289		364		666		288		192		186

Total benefits and expenses	2,527		580		289		1,658		1,358		296		192		870

Adjusted operating income before income taxes	454		239		(82	)	297		150		105		(97	)	142


	Six Months Ended June 30, 2004								Quarter Ended June 30, 2004
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	39		—		—		39		27		—		—		27
Policy charges and fee income	65		—		—		65		47		—		—		47
Net investment income	1,107		35		1		1,071		584		19		—		565
Commissions, investment management fees, and other income	1,110		678		177		255		633		347		72		214

Total revenues	2,321		713		178		1,430		1,291		366		72		853

Benefits and Expenses (1):
Insurance and annuity benefits	416		—		—		416		208		—		—		208
Interest credited to policyholders’ account balances	602		—		—		602		376		—		—		376
Interest expense	10		5		—		5		1		2		(4	)	3
Deferral of acquisition costs	(22	)	(11	)	—		(11	)	(14	)	(5	)	—		(9	)
Amortization of acquisition costs	29		23		—		6		14		11		—		3
General and administrative expenses	1,118		578		272		268		634		298		156		180

Total benefits and expenses	2,153		595		272		1,286		1,219		306		152		761

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

(1)

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

INVESTMENT DIVISION - SUPPLEMENTARY REVENUE INFORMATION FOR ASSET MANAGEMENT SEGMENT

(in millions)


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

				Analysis of revenues by source:
				Investment Management and Advisory Services:
115	108	6	%	Retail customers	54	53	58	58	57
283	212	33	%	Institutional customers	117	106	124	134	149
130	112	16	%	General account	59	58	64	65	65

528	432	22	%	Subtotal	230	217	246	257	271
291	281	4	%	Mutual Fund, managed account and other revenues (1)	136	116	172	161	130

819	713	15	%	Total Asset Management segment revenues	366	333	418	418	401

				Analysis of commissions, investment management fees and other revenues by type:
				Investment Management and Advisory Services:
473	395	20	%	Asset-based fees	209	202	215	226	247
40	21	90	%	Transaction-based and other revenues	12	8	23	21	19

513	416	23	%	Subtotal	221	210	238	247	266
273	262	4	%	Mutual Fund, managed account and other revenues (1)	126	107	162	153	120

786	678	16	%	Total	347	317	400	400	386

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

Page 22

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

INVESTMENT DIVISION - SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)


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

				Revenues:
117		111		Net investment income	55		55		59		56		61
939		1,216		Commissions	551		454		526		482		457
898		795		Fees	402		413		429		444		454
70		55		Other non-interest revenues	19		31		21		29		41

2,024		2,177		Total revenues	1,027		953		1,035		1,010		1,014
				Expenses:
1,756		1,930		Expenses before transition costs	929		875		902		870		885
65		123		Transition costs	66		99		78		29		37

1,821		2,053		Total expenses	995		974		980		899		922

203		124		Income (loss) before income taxes	32		(21	)	55		111		92

77		47		Prudential Financial, Inc., 38% share of Wachovia Securities Financial Holdings, LLC	12		(8	)	21		42		35
(6	)	(4	)	Purchase accounting and related adjustments	(1	)	(1	)	3		(3	)	(2	)

71		43		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	11		(9	)	24		39		33

				Recurring revenue as a percentage of total non-interest revenue (1)	41.3	%	47.9	%	43.9	%	47.1	%	47.6	%

				Total client assets ($ in billions) (2)	618.9		615.9		652.6		644.7		655.6

				Distribution representatives (2):
				Series 7 Financial Advisors	8,009		7,964		8,017		7,883		7,833
				Series 6 Financial Representatives	2,871		2,594		2,502		2,451		2,456

				Customer debit balances ($ in billions) (2)	6.3		6.0		6.1		5.8		5.7

(86	)	(96	)	Prudential Financial, Inc. income (loss) from investment in Wachovia Securities Financial Holdings, LLC, including 38% interest in results, costs incurred at Prudential level, and purchase accounting adjustments	(79	)	(70	)	(83	)	12		(98	)

(1)	Calculated on a YTD annualized basis.

(2)	As of end of period.

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

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

(in billions)


	June 30, 2005
	Equity	Fixed Income	Real Estate	Total
Retail customers	46.0	18.2	1.5	65.7
Institutional customers	42.9	66.6	15.8	125.3
General account	3.1	153.4	1.1	157.6

Total	92.0	238.2	18.4	348.6


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

Total	84.8	228.2	15.3	328.3


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

				Assets gathered by Investment Management & Advisory Services sales force:
84.8		69.3		Beginning assets under management	74.2		74.0		76.5		84.8		85.7
8.1		10.1		Additions to managed portfolio	4.5		3.5		8.6		3.1		5.0
(3.9	)	(7.4	)	Withdrawals	(4.6	)	(1.5	)	(3.5	)	(1.8	)	(2.1	)
2.1		1.6		Change in market value	—		0.7		3.8		(0.6	)	2.7
—		0.4		Net money market flows	(0.1	)	(0.2	)	(0.6	)	0.2		(0.2	)

91.1		74.0		Ending assets under management	74.0		76.5		84.8		85.7		91.1
34.2		32.3		Other institutional assets under management	32.3		32.4		34.4		33.3		34.2

125.3		106.3		Total assets managed for institutional customers at end of period	106.3		108.9		119.2		119.0		125.3

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

INVESTMENT DIVISION - MUTUAL FUNDS AND WRAP-FEE PRODUCTS

(in millions)


Year-to-date				2004						2005
2005	2004			2Q		3Q		4Q		1Q		2Q
			Mutual Funds Assets Under Management:
30,686	46,784		Beginning total mutual funds assets	44,027		39,774		29,674		30,686		29,894
2,162	1,545		Sales (other than money market)	672		631		827		874		1,288
(3,174)	(2,853	)	Redemptions (other than money market)	(1,557	)	(1,217	)	(1,692	)	(1,592	)	(1,582	)
674	885		Reinvestment of distributions and change in market value	319		(307	)	2,507		(500	)	1,174
98	(6,587	)	Net money market sales	(3,687	)	(9,207	)	(630	)	426		(328	)

30,446	39,774		Ending total mutual funds assets	39,774		29,674		30,686		29,894		30,446

(1,012)	(1,308	)	Net mutual funds redemptions other than money market	(885	)	(586	)	(865	)	(718	)	(294	)

			Wrap-fee Products Assets Under Administration:

41,254	19,833		Beginning total wrap-fee product assets	21,084		27,728		36,408		41,254		43,054
11,295	4,176		Sales	2,022		3,588		4,345		5,672		5,623
(5,572)	(3,001	)	Redemptions	(1,578	)	(1,885	)	(2,766	)	(2,837	)	(2,735	)
(356)	706		Reinvestment of distributions and change in market value	186		(893	)	3,267		(1,035	)	679
—	6,014		Other (1)	6,014		7,870		—		—		—

46,621	27,728		Ending total wrap-fee product assets	27,728		36,408		41,254		43,054		46,621

5,723	1,175		Net wrap-fee product sales	444		1,703		1,579		2,835		2,888

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

			Mutual funds, excluding wrap-fee products (2):
197	228		Prudential Agents	107		72		76		104		93
1,805	1,265		Third party distributors	538		534		727		764		1,041
160	52		Other	27		25		24		6		154

2,162	1,545		Total	672		631		827		874		1,288

			Wrap-fee products:
349	313		Prudential Agents	174		120		136		175		174
10,946	3,863		Third party distributors	1,848		3,468		4,209		5,497		5,449

11,295	4,176		Total	2,022		3,588		4,345		5,672		5,623

(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 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


Year-to-date					2004						2005
2005		2004			2Q		3Q		4Q		1Q		2Q
				RETIREMENT SALES AND ACCOUNT VALUES

				Defined Contribution:

66,660		28,658		Beginning total account value	28,844		63,841		63,481		66,660		66,739
5,376		3,363		Sales	2,239		2,791		2,736		3,196		2,180
(4,963	)	(4,055	)	Withdrawals	(2,520	)	(3,041	)	(3,325	)	(2,729	)	(2,234	)
962		1,218		Change in market value and interest credited	621		(110	)	3,768		(388	)	1,350
—		34,657		Acquisition	34,657		—		—		—		—

68,035		63,841		Ending total account value	63,841		63,481		66,660		66,739		68,035

413		(692	)	Net sales (withdrawals)	(281	)	(250	)	(589	)	467		(54	)

				Asset management of ending total account value:
				Proprietary	43,166		42,604		44,069		43,853		45,512
				Non-proprietary	20,675		20,877		22,591		22,886		22,523

				Total	63,841		63,481		66,660		66,739		68,035

				Guaranteed Products:

63,146		41,955		Beginning total account value	42,260		60,365		60,844		63,146		63,146
3,753		2,205		Sales	1,704		1,676		2,233		1,933		1,820
(3,826	)	(3,163	)	Withdrawals and benefits	(2,321	)	(2,113	)	(1,945	)	(1,903	)	(1,923	)
1,712		900		Change in market value and interest income	(133	)	945		1,849		333		1,379
(590	)	(675	)	Other (1)	(288	)	(29	)	165		(363	)	(227	)
—		19,143		Acquisition	19,143		—		—		—		—

64,195		60,365		Ending total account value	60,365		60,844		63,146		63,146		64,195

(73	)	(958	)	Net sales (withdrawals)	(617	)	(437	)	288		30		(103	)

				Product composition of ending total account value (2):
				Spread-based products	23,407		23,396		24,244		24,878		25,428
				Fee-based products	36,958		37,448		38,902		38,268		38,767

				Total	60,365		60,844		63,146		63,146		64,195

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

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

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date				% Change			2004						2005
2005		2004		% Change			2Q		3Q		4Q		1Q		2Q
						Revenues (1):
3,102		2,684		16	%	Premiums	1,354		1,292		1,366		1,552		1,550
137		124		10	%	Policy charges and fee income	61		55		61		71		66
627		462		36	%	Net investment income	233		242		234		309		318
196		165		19	%	Commissions, investment management fees, and other income	104		96		101		112		84

4,062		3,435		18	%	Total revenues	1,752		1,685		1,762		2,044		2,018

						Benefits and Expenses (1):
2,458		2,173		13	%	Insurance and annuity benefits	1,090		1,015		1,061		1,258		1,200
98		55		78	%	Interest credited to policyholders’ account balances	29		29		33		46		52
12		3		300	%	Interest expense	2		1		3		6		6
(516	)	(408	)	-26	%	Deferral of acquisition costs	(194	)	(206	)	(235	)	(251	)	(265	)
209		164		27	%	Amortization of acquisition costs	80		92		109		101		108
1,143		958		19	%	General and administrative expenses	476		494		538		573		570

3,404		2,945		16	%	Total benefits and expenses	1,483		1,425		1,509		1,733		1,671

658		490		34	%	Adjusted operating income before income taxes	269		260		253		311		347

(1)

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Six Months Ended June 30, 2005							Quarter Ended June 30, 2005
	Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments	Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	3,102		1,905		1,197		—	1,550		925		625		—
Policy charges and fee income	137		99		38		—	66		46		20		—
Net investment income	627		280		326		21	318		138		170		10
Commissions, investment management fees, and other income	196		(15	)	(2	)	213	84		(13	)	(1	)	98

Total revenues	4,062		2,269		1,559		234	2,018		1,096		814		108

Benefits and Expenses (1):
Insurance and annuity benefits	2,458		1,486		972		—	1,200		699		501		—
Interest credited to policyholders’ account balances	98		50		48		—	52		27		25		—
Interest expense	12		11		(1	)	2	6		5		—		1
Deferral of acquisition costs	(516	)	(383	)	(133	)	—	(265	)	(194	)	(71	)	—
Amortization of acquisition costs	209		150		59		—	108		80		28		—
General and administrative expenses	1,143		593		364		186	570		296		187		87

Total benefits and expenses	3,404		1,907		1,309		188	1,671		913		670		88

Adjusted operating income before income taxes	658		362		250		46	347		183		144		20


	Six Months Ended June 30, 2004							Quarter Ended June 30, 2004
	Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments	Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	2,684		1,449		1,235		—	1,354		697		657		—
Policy charges and fee income	124		82		42		—	61		38		23		—
Net investment income	462		150		298		14	233		78		148		7
Commissions, investment management fees, and other income	165		(10	)	(13	)	188	104		—		(4	)	108

Total revenues	3,435		1,671		1,562		202	1,752		813		824		115

Benefits and Expenses (1):
Insurance and annuity benefits	2,173		1,139		1,034		—	1,090		547		543		—
Interest credited to policyholders’ account balances	55		8		47		—	29		4		25		—
Interest expense	3		6		(4	)	1	2		3		(1	)	—
Deferral of acquisition costs	(408	)	(297	)	(111	)	—	(194	)	(138	)	(56	)	—
Amortization of acquisition costs	164		126		38		—	80		57		23		—
General and administrative expenses	958		439		349		170	476		211		175		90

Total benefits and expenses	2,945		1,421		1,353		171	1,483		684		709		90

Adjusted operating income before income taxes	490		250		209		31	269		129		115		25

(1)

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2004						2005
2005		2004			2Q		3Q		4Q		1Q		2Q
				Japanese Yen Basis Results:
				Revenues (1):
¥	174,652	¥	128,947	Japanese insurance operations excluding Gibraltar Life	¥	61,706	¥	65,655	¥	66,171	¥	91,001	¥	83,651
	165,119		170,771	Gibraltar Life		90,954		78,986		78,006		78,294		86,825

	339,771		299,718	Total revenues, Japan, yen basis		152,660		144,641		144,177		169,295		170,476

				Benefits and Expenses (1):
	140,233		105,309	Japanese insurance operations excluding Gibraltar Life		50,044		52,373		53,252		74,269		65,964
	137,858		146,262	Gibraltar Life		77,443		67,358		67,174		66,826		71,032

	278,091		251,571	Total benefits and expenses, Japan, yen basis		127,487		119,731		120,426		141,095		136,996

				Adjusted operating income (2):
	34,419		23,638	Japanese insurance operations excluding Gibraltar Life		11,662		13,282		12,919		16,732		17,687
	27,261		24,509	Gibraltar Life		13,511		11,628		10,832		11,468		15,793

¥	61,680	¥	48,147	Total adjusted operating income, Japan, yen basis	¥	25,173	¥	24,910	¥	23,751	¥	28,200	¥	33,480

				U.S. Dollar adjusted operating income (3):
$	313	$	202	Japanese insurance operations excluding Gibraltar Life	$	99	$	113	$	111	$	154	$	159
	250		209	Gibraltar Life		115		100		93		106		144

	563		411	Total adjusted operating income, Japan, U.S. dollar basis		214		213		204		260		303
	49		48	All other countries		30		26		15		25		24

$	612	$	459	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	244	$	239	$	219	$	285	$	327

(1)

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

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

Page 29

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 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		2Q	3Q	4Q	1Q	2Q
		INTERNATIONAL INSURANCE OPERATING DATA:

		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
1,430	1,086	Japan, excluding Gibraltar Life	506	542	579	752	678
1,235	1,277	Gibraltar Life	680	567	567	590	645
574	445	All other countries	229	238	281	281	293

3,239	2,808	Total	1,415	1,347	1,427	1,623	1,616

		Annualized new business premiums:
350	221	Japan, excluding Gibraltar Life	93	103	127	171	179
167	143	Gibraltar Life	81	68	66	71	96
134	100	All other countries	50	50	67	66	68

651	464	Total	224	221	260	308	343

		Constant exchange rate basis (2):

		Net premiums, policy charges and fee income:
1,404	1,092	Japan, excluding Gibraltar Life	517	553	565	730	674
1,203	1,278	Gibraltar Life	688	575	565	568	635
514	453	All other countries	233	241	269	252	262

3,121	2,823	Total	1,438	1,369	1,399	1,550	1,571

		Annualized new business premiums:
346	221	Japan, excluding Gibraltar Life	94	104	125	168	178
163	144	Gibraltar Life	82	68	66	69	94
121	102	All other countries	51	49	66	60	61

630	467	Total	227	221	257	297	333

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

(2)	Translated based on average exchange rates for the year ended December 31, 2004.

Page 30

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2004						2005
	2Q		3Q		4Q		1Q		2Q
Face amount of individual policies in force at end of period (in billions) (1):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	188		192		207		211		216
Gibraltar Life	219		217		214		212		209
All other countries	74		76		79		82		83

Total	481		485		500		505		508

Number of individual policies in force at end of period (in thousands):
Japan, excluding Gibraltar Life	1,266		1,304		1,696		1,737		1,780
Gibraltar Life	4,149		4,109		4,070		4,025		3,961
All other countries	894		925		965		1,001		1,036

Total	6,309		6,338		6,731		6,763		6,777

International insurance policy persistency (2):
13 months	92.6	%	92.8	%	93.0	%	92.9	%	93.1	%
25 months	86.7	%	86.5	%	86.3	%	86.2	%	86.2	%

Number of Life Planners at end of period (3):
Japan	2,447		2,509		2,550		2,665		2,603
All other countries	2,676		2,725		2,835		2,890		2,926

Total	5,123		5,234		5,385		5,555		5,529

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

(2)	Excluding Gibraltar Life.

(3)	Excluding Gibraltar Life Advisors.

Page 31

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 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)	123,687	36,303	87,384	58.2	%	118,400	34,683	83,717	57.1	%
Public, held to maturity, at amortized cost	3,088	—	3,088	2.0	%	2,624	—	2,624	1.8	%
Private, available for sale, at fair value (1)	32,247	13,977	18,270	12.2	%	32,336	14,130	18,206	12.4	%
Private, held to maturity, at amortized cost	157	—	157	0.1	%	123	—	123	0.1	%
Trading account assets supporting insurance liabilities, at fair value	13,744	—	13,744	9.1	%	12,964	—	12,964	8.8	%
Other trading account assets, at fair value	115	—	115	0.1	%	130	—	130	0.1	%
Equity securities, available for sale, at fair value	4,476	2,622	1,854	1.2	%	4,271	2,620	1,651	1.1	%
Commercial loans	23,316	7,160	16,156	10.8	%	24,389	7,297	17,092	11.6	%
Policy loans	8,364	5,429	2,935	2.0	%	8,373	5,454	2,919	2.0	%
Other long-term investments (2)	4,927	954	3,973	2.6	%	4,978	1,047	3,931	2.7	%
Short-term investments	4,272	1,731	2,541	1.7	%	5,245	1,840	3,405	2.3	%

Subtotal (3)	218,393	68,176	150,217	100.0	%	213,833	67,071	146,762	100.0	%

Invested assets of other entities and operations (4)	2,377	—	2,377			2,791	—	2,791

Total investments	220,770	68,176	152,594			216,624	67,071	149,553

Fixed Maturities by Credit Quality (3):


		June 30, 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	66,659	3,382	128	69,913	77.3	%	63,553	2,500	276	65,777	76.2	%
2	Baa	15,653	1,051	117	16,587	18.3	%	16,463	980	123	17,320	20.1	%

Subtotal Investment Grade		82,312	4,433	245	86,500	95.6	%	80,016	3,480	399	83,097	96.3	%

3	Ba	2,707	127	17	2,817	3.1	%	2,096	176	72	2,200	2.5	%
4	B	1,015	77	15	1,077	1.2	%	839	93	1	931	1.1	%
5	C and lower	86	8	2	92	0.1	%	85	13	2	96	0.1	%
6	In or near default	26	7	1	32	0.0	%	25	9	—	34	0.0	%

Subtotal Below Investment Grade		3,834	219	35	4,018	4.4	%	3,045	291	75	3,261	3.7	%

Total		86,146	4,652	280	90,518	100.0	%	83,061	3,771	474	86,358	100.0	%

Private Fixed Maturities:

NAIC Rating (5)	Rating Agency Equivalent

1	Aaa, Aa, A	6,167	344	19	6,492	35.2	%	4,917	321	19	5,219	28.5	%
2	Baa	9,227	668	24	9,871	53.5	%	9,831	695	25	10,501	57.3	%

Subtotal Investment Grade		15,394	1,012	43	16,363	88.7	%	14,748	1,016	44	15,720	85.8	%

3	Ba	1,190	80	3	1,267	6.9	%	1,520	102	1	1,621	8.8	%
4	B	413	35	3	445	2.4	%	399	42	3	438	2.4	%
5	C and lower	255	34	1	288	1.6	%	293	32	1	324	1.8	%
6	In or near default	67	4	4	67	0.4	%	224	9	6	227	1.2	%

Subtotal Below Investment Grade		1,925	153	11	2,067	11.3	%	2,436	185	11	2,610	14.2	%

Total		17,319	1,165	54	18,430	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 June 30, 2005 and December 31, 2004, respectively, 252 securities with amortized cost of $2,803 million (fair value $2,882 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 32

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2005			December 31, 2004
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value (1)	33,006	70.6	%	33,090	69.8	%
Public, held to maturity, at amortized cost	3,088	6.6	%	2,624	5.5	%
Private, available for sale, at fair value (1)	2,472	5.3	%	2,309	4.9	%
Private, held to maturity, at amortized cost	157	0.3	%	123	0.3	%
Trading account assets supporting insurance liabilities, at fair value	887	1.9	%	885	1.9	%
Other trading account assets, at fair value	29	0.1	%	71	0.1	%
Equity securities, available for sale, at fair value	1,638	3.5	%	1,470	3.1	%
Commercial loans	2,900	6.2	%	3,371	7.1	%
Policy loans	990	2.1	%	1,037	2.2	%
Other long-term investments (2)	1,255	2.7	%	1,375	2.9	%
Short-term investments	319	0.7	%	1,031	2.2	%

Total	46,741	100.0	%	47,386	100.0	%


	June 30, 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)	54,378	52.6	%	50,627	51.0	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value (1)	15,798	15.3	%	15,897	16.0	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	12,857	12.4	%	12,079	12.2	%
Other trading account assets, at fair value	86	0.1	%	59	0.0	%
Equity securities, available for sale, at fair value	216	0.2	%	181	0.2	%
Commercial loans	13,256	12.8	%	13,721	13.8	%
Policy loans	1,945	1.9	%	1,882	1.9	%
Other long-term investments (2)	2,718	2.6	%	2,556	2.5	%
Short-term investments	2,222	2.1	%	2,374	2.4	%

Total	103,476	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 33

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended June 30
	2005						2004
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount		Realized Gains / (Losses)		Yield (3)		Amount		Realized Gains / (Losses)
Financial Services Businesses (1) (4):
Fixed maturities	4.50	%	1,156		(7	)	4.54	%	980		8
Equity securities	3.17	%	12		12		1.85	%	6		54
Commercial loans	7.02	%	207		121		6.59	%	189		(2	)
Policy loans	4.79	%	35		—		4.52	%	30		—
Short-term investments and cash equivalents	3.06	%	51		(5	)	1.56	%	24		—
Other investments	7.02	%	84		175		7.75	%	102		70

Gross investment income before investment expenses	4.78	%	1,545		296		4.73	%	1,331		130
Investment expenses	-0.14	%	(92	)	—		-0.14	%	(51	)	—

Subtotal	4.64	%	1,453		296		4.59	%	1,280		130

Investment results of other entities and operations (2)			66		4				52		—
Less, investment income relating to divested businesses			(4	)					(2	)

Total			1,515		300				1,330		130


	Six Months Ended June 30
	2005						2004
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount		Realized Gains / (Losses)		Yield (3)		Amount		Realized Gains / (Losses)
Financial Services Businesses (1)(4):
Fixed maturities	4.57	%	2,306		42		4.61	%	1,934		39
Equity securities	3.29	%	25		14		1.93	%	11		79
Commercial loans	6.84	%	405		118		6.71	%	383		14
Policy loans	4.75	%	69		—		4.61	%	60		—
Short-term investments and cash equivalents	2.54	%	91		—		1.51	%	47		—
Other investments	6.73	%	161		350		8.19	%	175		47

Gross investment income before investment expenses	4.78	%	3,057		524		4.81	%	2,610		179
Investment expenses	-0.16	%	(178	)	—		-0.17	%	(115	)	—

Subtotal	4.62	%	2,879		524		4.64	%	2,495		179

Investment results of other entities and operations (2)			143		3				80		(57	)
Less, investment income relating to divested businesses			(8	)					(1	)

Total			3,014		527				2,574		122

(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 34

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2005						2004
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount		Realized Gains / (Losses)		Yield (1)		Amount		Realized Gains / (Losses)
Japanese Insurance Operations (2):
Fixed maturities	2.27	%	215		(27	)	1.93	%	154		(18	)
Equity securities	2.52	%	9		10		1.76	%	4		8
Commercial loans	3.96	%	29		118		4.18	%	29		12
Policy loans	3.31	%	9		—		2.69	%	6		—
Short-term investments and cash equivalents	0.55	%	—		(5	)	8.26	%	1		—
Other investments	9.14	%	27		39		7.87	%	22		10

Gross investment income before investment expenses	2.58	%	289		135		2.30	%	216		12
Investment expenses	-0.19	%	(21	)	—		-0.20	%	(20	)	—

Total	2.39	%	268		135		2.10	%	196		12


	Six Months Ended June 30
	2005						2004
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount		Realized Gains / (Losses)		Yield (1)		Amount		Realized Gains / (Losses)
Japanese Insurance Operations(2):
Fixed maturities	2.22	%	418		(67	)	1.92	%	304		(8	)
Equity securities	2.40	%	17		12		1.49	%	7		31
Commercial loans	4.03	%	62		116		4.24	%	60		15
Policy loans	3.33	%	17		—		3.00	%	13		—
Short-term investments and cash equivalents	0.35	%	1		—		8.22	%	1		—
Other investments	8.60	%	56		116		7.79	%	47		10

Gross investment income before investment expenses	2.52	%	571		177		2.31	%	432		48
Investment expenses	-0.19	%	(43	)	—		-0.21	%	(40	)	—

Total	2.33	%	528		177		2.10	%	392		48

(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 35

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2005					2004
	Investment Income				Realized Gains / (Losses)	Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount		Realized Gains / (Losses)	Yield (2)		Amount		Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1) (3):
Fixed maturities	5.88	%	941		20	6.07	%	826		26
Equity securities	8.76	%	3		2	2.45	%	2		46
Commercial loans	8.04	%	178		3	7.38	%	160		(14	)
Policy loans	5.56	%	26		—	5.40	%	24		—
Short-term investments and cash equivalents	3.43	%	51		—	1.52	%	23		—
Other investments	7.11	%	57		136	7.70	%	80		60

Gross investment income before investment expenses	6.05	%	1,256		161	6.00	%	1,115		118
Investment expenses	-0.12	%	(71	)	—	-0.11	%	(31	)	—

Total	5.93	%	1,185		161	5.89	%	1,084		118


	Six Months Ended June 30
	2005					2004
	Investment Income				Realized Gains / (Losses)	Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount		Realized Gains / (Losses)	Yield (2)		Amount		Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1)(3):
Fixed maturities	6.05	%	1,888		109	6.23	%	1,630		47
Equity securities	11.62	%	8		2	4.97	%	4		48
Commercial loans	7.82	%	343		2	7.52	%	323		(1	)
Policy loans	5.51	%	52		—	5.40	%	47		—
Short-term investments and cash equivalents	3.03	%	90		—	1.48	%	46		—
Other investments	6.04	%	105		234	8.35	%	128		37

Gross investment income before investment expenses	6.10	%	2,486		347	6.16	%	2,178		131
Investment expenses	-0.14	%	(135	)	—	-0.15	%	(75	)	—

Total	5.96	%	2,351		347	6.01	%	2,103		131

(1)

(2)

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

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Second 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 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Second 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 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Second 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 14.89% for the six months ended June 30, 2005, 9.16% for the six months ended June 30, 2004, 15.04% for the three months ended June 30, 2005, 10.54% for the three months ended June 30, 2004, 14.87% for the three months ended March 31, 2005, 7.74% for the three months ended December 31, 2004 and 11.66% for the three months ended September 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 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Second Quarter 2005

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of August 3, 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 August 3, 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. 751 Broad Street Newark, New Jersey 07102		Dial 877-998-ROCK for additional printed information or inquiries.

		Web Site:

		www.prudential.com

Publicly Traded Securities:

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

Page 40

Form: 8-K

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