November 2, 2005 - QUARTERLY FINANCIAL SUPPLEMENT - 8-K: Current report

Exhibit 99.1

LOGO

Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

THIRD 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.

November 2, 2005

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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

RECLASSIFIED STATEMENTS OF OPERATIONS AND SUPPLEMENTAL INFORMATION		37-39

KEY DEFINITIONS AND FORMULAS		40-42

RATINGS AND INVESTOR INFORMATION		43

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

Revenues and expenses as reported herein for earlier periods reflect certain reclassifications to conform to current reporting practices. In addition, certain ratios impacted by the reclassification have been updated as well.

iii

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			% Change			2004				2005
2005	2004		% Change			3Q		4Q		1Q		2Q		3Q
					*Financial Services Businesses:*
					Pre-tax adjusted operating income by division:
862	694		24	%	Insurance Division	245		297		255		266		341
711	244		191	%	Investment Division	76		111		304		150		257
1,042	750		39	%	International Insurance and Investments Division	260		253		311		347		384
123	140		-12	%	Corporate and other operations	54		18		16		60		47

2,738	1,828		50	%	Total pre-tax adjusted operating income	635		679		886		823		1,029
830	481		73	%	Income taxes, applicable to adjusted operating income	168		195		285		253		292

1,908	1,347		42	%	Financial Services Businesses after-tax adjusted operating income	467		484		601		570		737

					Items excluded from adjusted operating income:
565	182		210	%	Realized investment gains (losses), net, and related charges and adjustments	38		(158	)	236		249		80
(34)	(64	)	47	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	208		21		(130	)	193		(97	)
(17)	33		-152	%	Change in experience-rated contractholder liabilities due to asset value changes	(100	)	(44	)	86		(148	)	45
(5)	(34	)	85	%	Divested businesses	(15	)	10		(5	)	1		(1	)

509	117		335	%	Total items excluded from adjusted operating income, before income taxes	131		(171	)	187		295		27
(484)	16		-3125	%	Income taxes, not applicable to adjusted operating income	36		(70	)	21		67		(572	)

993	101		883	%	Total items excluded from adjusted operating income, after income taxes	95		(101	)	166		228		599

2,901	1,448		100	%	Income from continuing operations (after-tax) of Financial Services Businesses before extraordinary gain on acquisition and cumulative effect of accounting change	562		383		767		798		1,336
(59)	(33	)	-79	%	Loss from discontinued operations, net of taxes	(15	)	(66	)	(1	)	(44	)	(14	)
—	21		-100	%	Extraordinary gain on acquisition, net of taxes	1		—		—		—		—
—	(79	)	100	%	Cumulative effect of accounting change, net of taxes	—		—		—		—		—

2,842	1,357		109	%	Net income of Financial Services Businesses	548		317		766		754		1,322

					Earnings per share of Common Stock (diluted):
3.76	2.65				Financial Services Businesses after-tax adjusted operating income	0.93		0.96		1.18		1.13		1.46
					Items excluded from adjusted operating income:
1.07	0.34				Realized investment gains (losses), net, and related charges and adjustments	0.07		(0.30	)	0.45		0.47		0.15
(0.06)	(0.12	)			Investment gains (losses) on trading account assets supporting insurance liabilities, net	0.40		0.04		(0.25	)	0.37		(0.19	)
(0.03)	0.06				Change in experience-rated contractholder liabilities due to asset value changes	(0.19	)	(0.08	)	0.16		(0.28	)	0.09
(0.01)	(0.06	)			Divested businesses	(0.03	)	0.01		(0.01	)	—		—

0.97	0.22				Total items excluded from adjusted operating income, before income taxes	0.25		(0.33	)	0.35		0.56		0.05
(0.92)	0.03				Income taxes, not applicable to adjusted operating income	0.07		(0.13	)	0.04		0.13		(1.10	)

1.89	0.19				Total items excluded from adjusted operating income, after income taxes	0.18		(0.20	)	0.31		0.43		1.15

5.65	2.84				Income from continuing operations (after-tax) of Financial Services Businesses before extraordinary gain on acquisition and cumulative effect of accounting change	1.11		0.76		1.49		1.56		2.61
(0.11)	(0.06	)			Income (loss) from discontinued operations, net of taxes	(0.03	)	(0.12	)	—		(0.08	)	(0.02	)
—	0.04				Extraordinary gain on acquisition, net of taxes	—		—		—		—		—
—	(0.15	)			Cumulative effect of accounting change, net of taxes	—		—		—		—		—

5.54	2.67				Net income of Financial Services Businesses	1.08		0.64		1.49		1.48		2.59

524.5	532.5				Weighted average number of outstanding Common shares (diluted basis)	525.7		527.3		530.0		525.2		518.3
12.99%	10.08	%			Operating Return on Average Equity (based on adjusted operating income)	10.38	%	10.46	%	12.60	%	11.75	%	14.63	%
					*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
2,842	1,357				Net income of Financial Services Businesses (above)	548		317		766		754		1,322
334	321				Net income of Closed Block Business	180		261		163		129		42

3,176	1,678				Consolidated net income	728		578		929		883		1,364

63	64				Direct equity adjustments for earnings per share calculations	22		20		22		22		19

Page 1

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			2004		2005
2005	2004		3Q	4Q	1Q	2Q	3Q
		*Financial Services Businesses Capitalization Data (1):*
		Short-term debt	6,135	3,896	6,253	5,856	5,572
		Long-term debt	5,708	5,877	5,981	6,984	7,053
		Attributed Equity:
		Including accumulated other comprehensive income	20,457	21,209	21,244	22,375	22,493
		Excluding unrealized gains and losses on investments	18,987	19,561	20,008	20,311	21,025
		Excluding accumulated other comprehensive income	18,995	19,392	19,907	20,292	21,083
		Total Capitalization:
		Including accumulated other comprehensive income	26,165	27,086	27,225	29,359	29,546
		Excluding unrealized gains and losses on investments	24,695	25,438	25,989	27,295	28,078
		Excluding accumulated other comprehensive income	24,703	25,269	25,888	27,276	28,136
		Book value per share of Common Stock:
		Including accumulated other comprehensive income	39.19	39.90	40.35	42.82	43.79
		Excluding unrealized gains and losses on investments	36.37	36.80	38.00	38.87	40.94
		Excluding accumulated other comprehensive income	36.39	36.49	37.81	38.84	41.05
		Number of diluted shares at end of period	522.0	531.5	526.5	522.5	513.6
		*Common Stock Price Range (based on closing price):*
68.30	48.11	High	48.10	55.09	59.32	66.30	68.30
52.62	41.05	Low	44.30	42.87	52.62	55.23	63.09
67.56	47.04	Close	47.04	54.96	57.40	65.66	67.56
		*Common Stock market capitalization (1)*	24,158	28,983	29,980	33,707	34,118

(1)	As of end of period.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

OPERATIONS HIGHLIGHTS


Year-to-date			2004		2005
2005	2004		3Q	4Q	1Q	2Q	3Q
		*Assets Under Management and Administration ($ billions) (1) (2):*
		Assets Under Management :
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Retail customers	62.3	66.0	64.8	65.7	70.5
		Institutional customers	108.9	119.2	119.0	125.3	129.8
		General account	152.3	152.7	155.3	157.6	156.3

		Total Investment Management and Advisory Services	323.5	337.9	339.1	348.6	356.6
		Non-proprietary assets under management	43.5	44.8	44.0	46.5	48.0

		Total managed by Investment Division	367.0	382.7	383.1	395.1	404.6
		Managed by International Insurance and Investments Division	67.1	77.7	74.0	74.1	73.0
		Managed by Insurance Division	35.9	39.1	38.6	41.8	44.0

		Total assets under management	470.0	499.5	495.7	511.0	521.6
		Client assets under administration	72.9	82.2	85.3	90.0	96.9

		Total assets under management and administration	542.9	581.7	581.0	601.0	618.5

		Assets managed or administered for customers outside of the United States at end of period	96.4	107.0	104.9	107.0	108.8
		*Distribution Representatives (1):*
		Prudential Agents	3,982	3,682	3,519	3,340	3,212
		International Life Planners	5,234	5,385	5,555	5,529	5,702
		Gibraltar Life Advisors	4,759	4,970	4,902	4,788	5,349
40	38	*Prudential Agent productivity ($ thousands)*	37	54	37	42	43

		*Third Party Distribution - Retail Products ($ millions) (3):*
141	107	Individual life insurance (4)	45	48	39	47	55
5	10	Corporate-owned life insurance sales	3	1	1	1	3
4,373	3,820	Individual annuities	1,078	1,014	1,137	1,640	1,596
18,915	9,130	Mutual funds and wrap-fee products	4,002	4,936	6,261	6,490	6,164

(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.

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date			% Change			2004				2005
2005	2004		% Change			3Q		4Q		1Q		2Q		3Q
					Revenues (1):
7,720	6,596		17	%	Premiums	2,183		2,224		2,529		2,598		2,593
1,901	1,782		7	%	Policy charges and fee income	615		644		626		629		646
4,601	3,971		16	%	Net investment income	1,397		1,413		1,499		1,515		1,587
3,063	2,434		26	%	Commissions, investment management fees, and other income	841		976		977		982		1,104

17,285	14,783		17	%	Total revenues	5,036		5,257		5,631		5,724		5,930

					Benefits and Expenses (1):
7,596	6,778		12	%	Insurance and annuity benefits	2,246		2,254		2,559		2,544		2,493
1,877	1,608		17	%	Interest credited to policyholders’ account balances	587		600		603		623		651
388	193		101	%	Interest expense	83		103		111		134		143
(1,358)	(1,121	)	-21	%	Deferral of acquisition costs	(360	)	(407	)	(416	)	(500	)	(442	)
734	594		24	%	Amortization of acquisition costs	212		172		229		236		269
5,310	4,903		8	%	General and administrative expenses	1,633		1,856		1,659		1,864		1,787

14,547	12,955		12	%	Total benefits and expenses	4,401		4,578		4,745		4,901		4,901

2,738	1,828		50	%	Adjusted operating income before income taxes	635		679		886		823		1,029

					Items excluded from adjusted operating income before income taxes:
669	214		213	%	Realized investment gains (losses), net, and related adjustments	50		(132	)	257		322		90
(104)	(32	)	-225	%	Related charges	(12	)	(26	)	(21	)	(73	)	(10	)

565	182		210	%	Total realized investment gains (losses), net, and related charges and adjustments	38		(158	)	236		249		80

(34)	(64	)	47	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	208		21		(130	)	193		(97	)
(17)	33		-152	%	Change in experience-rated contractholder liabilities due to asset value changes	(100	)	(44	)	86		(148	)	45
(5)	(34	)	85	%	Divested businesses	(15	)	10		(5	)	1		(1	)

509	117		335	%	Total items excluded from adjusted operating income before income taxes	131		(171	)	187		295		27

3,247	1,945		67	%	Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change	766		508		1,073		1,118		1,056
346	497		-30	%	Income tax expense (benefit)	204		125		306		320		(280	)

2,901	1,448		100	%	Income from continuing operations before extraordinary gain on acquisition and cumulative effect of accounting change	562		383		767		798		1,336

(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

Third Quarter 2005

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	9/30/2004	12/31/2004	3/31/2005	6/30/2005	9/30/2005
Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $89,640; $97,732; $100,301; $100,719; $99,852)	93,889	102,155	103,966	106,151	103,748
Fixed maturities, held to maturity, at amortized cost (fair value $2,633; $2,765; $3,412; $3,294; $3,172)	2,607	2,747	3,389	3,245	3,170
Trading account assets supporting insurance liabilities, at fair value	12,695	12,964	13,239	13,744	14,208
Other trading account assets, at fair value	3,222	1,547	1,488	1,410	1,409
Equity securities, available for sale, at fair value (cost $1,282; $1,473; $1,634; $1,636; $1,633)	1,457	1,663	1,865	1,867	1,954
Commercial loans	16,315	17,092	16,569	16,156	16,107
Policy loans	2,606	2,919	2,943	2,935	2,959
Securities purchased under agreements to resell	190	127	171	60	146
Other long-term investments	4,518	4,934	4,644	4,485	4,475
Short-term investments	2,399	3,405	2,992	2,541	2,160

Total investments	139,898	149,553	151,266	152,594	150,336
Cash and cash equivalents	4,471	6,164	6,291	6,055	6,124
Accrued investment income	1,317	1,307	1,375	1,350	1,402
Reinsurance recoverables	34,825	32,790	3,767	3,648	3,673
Deferred policy acquisition costs	7,022	7,624	7,854	7,891	8,131
Other assets	16,000	16,472	16,644	15,631	16,194
Separate account assets	105,621	115,568	142,568	149,256	155,400

Total assets	309,154	329,478	329,765	336,425	341,260

Liabilities:
Future policy benefits	47,673	52,522	52,370	52,332	51,446
Policyholders’ account balances	63,521	69,940	70,287	70,673	70,799
Unpaid claims and claim adjustment expenses	1,775	1,807	1,839	1,879	1,896
Reinsurance payables	34,469	32,386	3,345	3,203	3,210
Securities sold under agreements to repurchase	4,957	4,657	6,087	5,739	5,682
Cash collateral for loaned securities	2,978	4,248	3,246	3,048	2,995
Income taxes payable	2,427	2,681	2,508	2,832	2,314
Securities sold but not yet purchased	503	427	466	144	207
Short-term debt	6,135	3,896	6,253	5,856	5,572
Long-term debt	5,708	5,877	5,981	6,984	7,053
Other liabilities	12,930	14,260	13,571	12,104	12,193
Separate account liabilities	105,621	115,568	142,568	149,256	155,400

Total liabilities	288,697	308,269	308,521	314,050	318,767

Attributed Equity:
Accumulated other comprehensive income	1,462	1,817	1,337	2,083	1,410
Other attributed equity	18,995	19,392	19,907	20,292	21,083

Total attributed equity	20,457	21,209	21,244	22,375	22,493

Total liabilities and attributed equity	309,154	329,478	329,765	336,425	341,260

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended September 30, 2005
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,593		925		106		1,568		(6	)
Policy charges and fee income	646		537		46		67		(4	)
Net investment income	1,587		428		656		337		166
Commissions, investment management fees, and other income	1,104		181		802		106		15

Total revenues	5,930		2,071		1,610		2,078		171

Benefits and Expenses (1):
Insurance and annuity benefits	2,493		928		296		1,255		14
Interest credited to policyholders’ account balances	651		180		431		52		(12	)
Interest expense	143		31		23		7		82
Deferral of acquisition costs	(442	)	(202	)	(13	)	(241	)	14
Amortization of acquisition costs	269		180		13		88		(12	)
General and administrative expenses	1,787		613		603		533		38

Total benefits and expenses	4,901		1,730		1,353		1,694		124

Adjusted operating income before income taxes	1,029		341		257		384		47


	Quarter Ended September 30, 2004
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,183		852		43		1,292		(4	)
Policy charges and fee income	615		519		43		55		(2	)
Net investment income	1,397		402		619		242		134
Commissions, investment management fees, and other income	841		162		572		96		11

Total revenues	5,036		1,935		1,277		1,685		139

Benefits and Expenses (1):
Insurance and annuity benefits	2,246		966		237		1,015		28
Interest credited to policyholders’ account balances	587		186		372		29		—
Interest expense	83		10		17		1		55
Deferral of acquisition costs	(360	)	(161	)	(10	)	(206	)	17
Amortization of acquisition costs	212		120		15		92		(15	)
General and administrative expenses	1,633		569		570		494		—

Total benefits and expenses	4,401		1,690		1,201		1,425		85

Adjusted operating income before income taxes	635		245		76		260		54

(1)

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Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Nine Months Ended September 30, 2005
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	7,720		2,816		250		4,670		(16	)
Policy charges and fee income	1,901		1,569		140		204		(12	)
Net investment income	4,601		1,281		1,924		964		432
Commissions, investment management fees, and other income	3,063		482		2,277		302		2

Total revenues	17,285		6,148		4,591		6,140		406

Benefits and Expenses (1):
Insurance and annuity benefits	7,596		3,050		783		3,713		50
Interest credited to policyholders’ account balances	1,877		540		1,212		150		(25	)
Interest expense	388		81		70		19		218
Deferral of acquisition costs	(1,358	)	(601	)	(46	)	(757	)	46
Amortization of acquisition costs	734		433		41		297		(37	)
General and administrative expenses	5,310		1,783		1,820		1,676		31

Total benefits and expenses	14,547		5,286		3,880		5,098		283

Adjusted operating income before income taxes	2,738		862		711		1,042		123


	Nine Months Ended September 30, 2004
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	6,596		2,540		82		3,976		(2	)
Policy charges and fee income	1,782		1,505		108		179		(10	)
Net investment income	3,971		1,149		1,726		704		392
Commissions, investment management fees, and other income	2,434		468		1,682		261		23

Total revenues	14,783		5,662		3,598		5,120		403

Benefits and Expenses (1):
Insurance and annuity benefits	6,778		2,873		653		3,188		64
Interest credited to policyholders’ account balances	1,608		551		974		84		(1	)
Interest expense	193		13		27		4		149
Deferral of acquisition costs	(1,121	)	(523	)	(32	)	(614	)	48
Amortization of acquisition costs	594		337		44		256		(43	)
General and administrative expenses	4,903		1,717		1,688		1,452		46

Total benefits and expenses	12,955		4,968		3,354		4,370		263

Adjusted operating income before income taxes	1,828		694		244		750		140

(1)

Page 7

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of September 30, 2005
	Total Financial Services Businesses	Insurance Division	Investment Division	International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	150,336	31,487	57,943	49,063	11,843
Deferred policy acquisition costs	8,131	4,483	106	3,703	(161	)
Other assets	27,393	3,479	10,243	7,067	6,604
Separate account assets	155,400	75,873	80,594	49	(1,116	)

Total assets	341,260	115,322	148,886	59,882	17,170

Liabilities:
Future policy benefits	51,446	5,384	13,513	31,952	597
Policyholders’ account balances	70,799	18,565	38,712	14,443	(921	)
Debt	12,625	1,431	1,293	882	9,019
Other liabilities	28,497	8,130	8,996	7,157	4,214
Separate account liabilities	155,400	75,873	80,594	49	(1,116	)

Total liabilities	318,767	109,383	143,108	54,483	11,793

Attributed Equity:
Accumulated other comprehensive income	1,410	376	84	874	76
Other attributed equity	21,083	5,563	5,694	4,525	5,301

Total attributed equity	22,493	5,939	5,778	5,399	5,377

Total liabilities and attributed equity	341,260	115,322	148,886	59,882	17,170


	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

Third Quarter 2005

SHORT TERM DEBT

(in millions)


	As of September 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	3,204	—	3,206	158	521	—	679
Securities business related	32	757	816	1,605	86	906	1,330	2,322
Specified other businesses	48	569	138	755	105	548	139	792
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1

Total short-term debt - Financial Services Businesses	82	4,535	955	5,572	446	1,980	1,470	3,896

*Borrowings by type:*
Long-term debt due within one year	2	62	—	64	—	57	—	57
Commercial paper	80	4,462	—	4,542	446	1,853	—	2,299
Bank borrowings	—	—	240	240	—	—	754	754
Other short-term debt	—	11	714	725	—	70	715	785

Total general obligations	82	4,535	954	5,571	446	1,980	1,469	3,895
Limited recourse and non-recourse borrowing	—	—	1	1	—	—	1	1

Total short-term debt - Financial Services Businesses	82	4,535	955	5,572	446	1,980	1,470	3,896

Closed Block Business:
Investment related commercial paper borrowings	—	1,119	—	1,119	—	148	—	148

(1)	Includes Prudential Funding, LLC.

Page 9

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

LONG TERM DEBT

(in millions)


	As of September 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	2,425		1,992	963	10	5,390	—	5,390
Hybrid notes	—		—	—	—	—	—	—

Total	2,425		1,992	963	10	5,390	—	5,390

The Prudential Insurance Company of America (1):
Surplus notes	692		—	—	—	692	—	692
Long-term fixed and floating rate notes	600		316	—	—	916	—	916
Commercial paper backed by long-term credit agreements	—		—	—	—	—	—	—

Total	1,292		316	—	—	1,608	—	1,608

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

Total long-term debt of Financial Services Businesses	3,717		2,308	963	10	6,998	55	7,053

Ratio of long-term and short-term capital debt to capitalization	15.0	%

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

Third Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


Year-to-date			% Change			2004				2005
2005	2004		% Change			3Q		4Q		1Q		2Q		3Q
					Revenues (1):
2,816	2,540		11	%	Premiums	852		848		941		950		925
1,569	1,505		4	%	Policy charges and fee income	519		541		513		519		537
1,281	1,149		11	%	Net investment income	402		422		433		420		428
482	468		3	%	Commissions, investment management fees, and other income	162		152		137		164		181

6,148	5,662		9	%	Total revenues	1,935		1,963		2,024		2,053		2,071

					Benefits and Expenses (1):
3,050	2,873		6	%	Insurance and annuity benefits	966		949		1,068		1,054		928
540	551		-2	%	Interest credited to policyholders’ account balances	186		182		177		183		180
81	13		523	%	Interest expense	10		19		25		25		31
(601)	(523	)	-15	%	Deferral of acquisition costs	(161	)	(168	)	(165	)	(234	)	(202	)
433	337		28	%	Amortization of acquisition costs	120		66		127		126		180
1,783	1,717		4	%	General and administrative expenses	569		618		537		633		613

5,286	4,968		6	%	Total benefits and expenses	1,690		1,666		1,769		1,787		1,730

862	694		24	%	Adjusted operating income before income taxes	245		297		255		266		341

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

Page 11

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Quarter Ended September 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	925		123		802		110		13
Policy charges and fee income	537		461		76		266		195
Net investment income	428		281		147		126		155
Commissions, investment management fees, and other income	181		168		13		83		85

Total revenues	2,071		1,033		1,038		585		448

Benefits and Expenses (1):
Insurance and annuity benefits	928		139		789		116		23
Interest credited to policyholders’ account balances	180		130		50		43		87
Interest expense	31		27		4		18		9
Deferral of acquisition costs	(202	)	(187	)	(15	)	(79	)	(108	)
Amortization of acquisition costs	180		179		1		152		27
General and administrative expenses (2)	613		464		149		215		249

Total benefits and expenses	1,730		752		978		465		287

Adjusted operating income before income taxes	341		281		60		120		161


	Quarter Ended September 30, 2004
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life		Individual Annuities
Revenues (1):
Premiums	852		111		741		95		16
Policy charges and fee income	519		425		94		261		164
Net investment income	402		259		143		104		155
Commissions, investment management fees, and other income	162		153		9		83		70

Total revenues	1,935		948		987		543		405

Benefits and Expenses (1):
Insurance and annuity benefits	966		221		745		159		62
Interest credited to policyholders’ account balances	186		133		53		42		91
Interest expense	10		7		3		3		4
Deferral of acquisition costs	(161	)	(155	)	(6	)	(72	)	(83	)
Amortization of acquisition costs	120		119		1		75		44
General and administrative expenses (2)	569		426		143		235		191

Total benefits and expenses	1,690		751		939		442		309

Adjusted operating income before income taxes	245		197		48		101		96

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

(2)

General and administrative expenses for Individual Annuities include $22 million for the quarter ended September 30, 2005 and $4 million for the quarter ended September 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

Third Quarter 2005

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Nine Months Ended September 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	2,816		363		2,453		313		50
Policy charges and fee income	1,569		1,350		219		793		557
Net investment income	1,281		835		446		370		465
Commissions, investment management fees, and other income	482		450		32		215		235

Total revenues	6,148		2,998		3,150		1,691		1,307

Benefits and Expenses (1):
Insurance and annuity benefits	3,050		616		2,434		465		151
Interest credited to policyholders’ account balances	540		387		153		129		258
Interest expense	81		68		13		48		20
Deferral of acquisition costs	(601	)	(540	)	(61	)	(232	)	(308	)
Amortization of acquisition costs	433		430		3		294		136
General and administrative expenses (2)	1,783		1,319		464		631		688

Total benefits and expenses	5,286		2,280		3,006		1,335		945

Adjusted operating income before income taxes	862		718		144		356		362


	Nine Months Ended September 30, 2004
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life		Individual Annuities
Revenues (1):
Premiums	2,540		315		2,225		268		47
Policy charges and fee income	1,505		1,264		241		773		491
Net investment income	1,149		733		416		298		435
Commissions, investment management fees, and other income	468		439		29		226		213

Total revenues	5,662		2,751		2,911		1,565		1,186

Benefits and Expenses (1):
Insurance and annuity benefits	2,873		651		2,222		480		171
Interest credited to policyholders’ account balances	551		392		159		122		270
Interest expense	13		9		4		3		6
Deferral of acquisition costs	(523	)	(502	)	(21	)	(224	)	(278	)
Amortization of acquisition costs	337		334		3		213		121
General and administrative expenses (2)	1,717		1,293		424		685		608

Total benefits and expenses	4,968		2,177		2,791		1,279		898

Adjusted operating income before income taxes	694		574		120		286		288

(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 $37 million for the nine months ended September 30, 2005 and $20 million for the nine months ended September 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

Third Quarter 2005

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

(in millions)


Year-to-date					2004				2005
2005		2004			3Q		4Q		1Q		2Q		3Q
				INDIVIDUAL LIFE INSURANCE SALES:
				Excluding corporate-owned life insurance:
56		78		Variable life	25		19		19		18		19
158		119		Universal life	48		59		51		53		54
89		88		Term life	28		28		29		30		30

303		285		Total excluding corporate-owned life insurance	101		106		99		101		103
5		11		Corporate-owned life insurance	4		3		1		1		3

308		296		Total	105		109		100		102		106

				ANNUITY SALES AND ACCOUNT VALUES
				Variable Annuities:
47,418		43,949		Beginning total account value	44,927		44,474		47,418		46,386		47,402
5,142		4,518		Sales	1,259		1,288		1,433		1,779		1,930
(4,255	)	(3,881	)	Surrenders and withdrawals	(1,266	)	(1,343	)	(1,388	)	(1,470	)	(1,397	)

887		637		Net sales (redemptions)	(7	)	(55	)	45		309		533
(444	)	(458	)	Benefit payments	(154	)	(155	)	(145	)	(148	)	(151	)

443		179		Net flows	(161	)	(210	)	(100	)	161		382
2,117		781		Change in market value, interest credited, and other	(146	)	3,310		(774	)	1,015		1,876
(494	)	(435	)	Policy charges	(146	)	(156	)	(158	)	(160	)	(176	)

49,484		44,474		Ending total account value	44,474		47,418		46,386		47,402		49,484

				Fixed Annuities:
3,879		3,514		Beginning total account value	3,722		3,860		3,879		3,879		4,064
334		463		Sales	175		69		52		243		39
(165	)	(146	)	Surrenders and withdrawals	(44	)	(45	)	(56	)	(53	)	(56	)

169		317		Net sales (redemptions)	131		24		(4	)	190		(17	)
(119	)	(124	)	Benefit payments	(41	)	(39	)	(41	)	(43	)	(35	)

50		193		Net flows	90		(15	)	(45	)	147		(52	)
108		156		Interest credited and other	49		35		46		40		22
(4	)	(3	)	Policy charges	(1	)	(1	)	(1	)	(2	)	(1	)

4,033		3,860		Ending total account value	3,860		3,879		3,879		4,064		4,033

				SALES BY DISTRIBUTION CHANNEL
				Life Insurance:
				Excluding corporate-owned life insurance:
162		178		Prudential Agents	56		58		60		54		48
141		107		Third party distribution	45		48		39		47		55
5		11		Corporate-owned life insurance	4		3		1		1		3

308		296		Total	105		109		100		102		106

				Variable and Fixed Annuities (1):
1,103		1,161		Prudential Agents	356		343		348		382		373
366		202		Wirehouses (2)	58		89		94		123		149
4,007		3,618		Independent Financial Planners (3)	1,020		925		1,043		1,517		1,447

5,476		4,981		Total	1,434		1,357		1,485		2,022		1,969

(1)	Amounts represent gross sales.

(2)	Prior period amounts have been reclassified to conform to current period reporting practices.

(3)	Including bank distribution.

Page 14

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

INSURANCE DIVISION - INDIVIDUAL LIFE ACCOUNT VALUE ACTIVITY

(in millions)


Year-to-date				2004				2005
2005	2004			3Q		4Q		1Q		2Q		3Q
			INDIVIDUAL LIFE INSURANCE:
			Policyholders’ Account Balances (1):
4,998	4,520		Beginning balance	4,742		4,809		4,998		5,142		5,249
961	895		Premiums and deposits	307		293		310		356		295
(581)	(478	)	Surrenders and withdrawals	(159	)	(157	)	(165	)	(206	)	(210	)

380	417		Net sales	148		136		145		150		85
(87)	(72	)	Benefit payments	(25	)	(24	)	(31	)	(27	)	(29	)

293	345		Net flows	123		112		114		123		56
109	2		Interest credited and other	(31	)	103		53		8		48
59	43		Net transfers from separate account	10		14		16		18		25
(125)	(102	)	Policy charges	(36	)	(40	)	(39	)	(42	)	(44	)

5,334	4,809		Ending balance	4,809		4,998		5,142		5,249		5,334

			Separate Account Liabilities:
15,180	13,981		Beginning balance	14,303		14,209		15,180		14,912		15,207
949	1,015		Premiums and deposits	329		318		310		331		308
(504)	(443	)	Surrenders and withdrawals	(158	)	(144	)	(141	)	(157	)	(206	)

445	572		Net sales	171		174		169		174		102
(13)	(21	)	Benefit payments	(7	)	(3	)	(8	)	—		(5	)

432	551		Net flows	164		171		161		174		97
877	410		Change in market value, interest credited and other	(5	)	1,037		(182	)	364		695
(77)	(126	)	Net transfers (to) from general account	(50	)	(34	)	(47	)	(43	)	13
(604)	(607	)	Policy charges	(203	)	(203	)	(200	)	(200	)	(204	)

15,808	14,209		Ending balance	14,209		15,180		14,912		15,207		15,808

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

Page 15

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

INSURANCE DIVISION - ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


Year-to-date				2004				2005
2005	2004			3Q		4Q		1Q		2Q		3Q
			INDIVIDUAL ANNUITIES:
			Account Values in General Account (1):
9,613	7,660		Beginning balance	10,101		10,026		9,613		9,662		9,782
580	860		Premiums and deposits	273		182		185		308		87
(685)	(647	)	Surrenders and withdrawals	(187	)	(163	)	(239	)	(244	)	(202	)

(105)	213		Net sales (redemptions)	86		19		(54	)	64		(115	)
(231)	(240	)	Benefit payments	(77	)	(78	)	(82	)	(82	)	(67	)

(336)	(27	)	Net flows	9		(59	)	(136	)	(18	)	(182	)
273	239		Interest credited and other	99		96		90		92		91
(107)	2,158		Net transfers (to) from separate account (2)	(182	)	(449	)	97		48		(252	)
(6)	(4	)	Policy charges	(1	)	(1	)	(2	)	(2	)	(2	)

9,437	10,026		Ending balance	10,026		9,613		9,662		9,782		9,437

			Account Values in Separate Account:
41,684	39,803		Beginning balance	38,548		38,308		41,684		40,602		41,684
4,896	4,121		Premiums and deposits	1,161		1,175		1,300		1,714		1,882
(3,736)	(3,380	)	Surrenders and withdrawals	(1,123	)	(1,225	)	(1,206	)	(1,279	)	(1,251	)

1,160	741		Net sales (redemptions)	38		(50	)	94		435		631
(331)	(342	)	Benefit payments	(118	)	(116	)	(104	)	(109	)	(118	)

829	399		Net flows	(80	)	(166	)	(10	)	326		513
1,952	698		Change in market value, interest credited and other	(196	)	3,249		(818	)	964		1,806
107	(2,158	)	Net transfers (to) from general account (2)	182		449		(97	)	(48	)	252
(492)	(434	)	Policy charges	(146	)	(156	)	(157	)	(160	)	(175	)

44,080	38,308		Ending balance	38,308		41,684		40,602		41,684		44,080

(1)

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

(2)

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

Page 16

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)


Year-to-date					2004				2005
2005		2004			3Q		4Q		1Q		2Q		3Q
				INDIVIDUAL LIFE INSURANCE:
3,151		3,194		Beginning balance	3,141		3,012		3,151		3,210		3,162
232		224		Capitalization	72		87		74		79		79
(294	)	(213	)	Amortization - operating results	(75	)	(61	)	(72	)	(70	)	(152	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
69		(193	)	Impact of unrealized (gains) or losses on AFS securities	(127	)	113		57		(57	)	69

3,158		3,012		Ending balance	3,012		3,151		3,210		3,162		3,158

				INDIVIDUAL ANNUITIES:
907		636		Beginning balance	851		837		907		1,012		1,049
308		278		Capitalization	83		75		83		117		108
(136)		(121	)	Amortization - operating results	(44	)	(4	)	(54	)	(55	)	(27	)
(3)		—		Amortization - realized investment gains and losses	2		(2	)	(1	)	2		(4	)
79		40		Impact of unrealized (gains) or losses on AFS securities	(55	)	1		77		(27	)	29
—		4		Other (1)	—		—		—		—		—

1,155		837		Ending balance	837		907		1,012		1,049		1,155

				GROUP INSURANCE:
111		88		Beginning balance	101		106		111		118		155
62		21		Capitalization	6		6		8		38		16
(3)		(3	)	Amortization - operating results	(1	)	(1	)	(1	)	(1	)	(1	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

170		106		Ending balance	106		111		118		155		170

				TOTAL INSURANCE DIVISION:
4,169		3,918		Beginning balance	4,093		3,955		4,169		4,340		4,366
602		523		Capitalization	161		168		165		234		203
(433)		(337	)	Amortization - operating results	(120	)	(66	)	(127	)	(126	)	(180	)
(3)		—		Amortization - realized investment gains and losses	2		(2	)	(1	)	2		(4	)
148		(153	)	Impact of unrealized (gains) or losses on AFS securities	(182	)	114		134		(84	)	98
—		4		Other (1)	—		—		—		—		—

4,483		3,955		Ending balance	3,955		4,169		4,340		4,366		4,483

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

Page 17

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


Year-to-date					2004				2005
2005		2004			3Q		4Q		1Q		2Q		3Q
				Individual Life Insurance:
				Policy Surrender Experience:
535		483		Cash value of surrenders	167		150		155		166		214
3.6	%	3.5	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.6	%	3.1	%	3.2	%	3.4	%	4.3	%

				Death benefits per $1,000 of in force (1):
2.97		2.80		Variable and universal life	2.64		2.46		3.10		2.88		2.95
1.25		1.26		Term life	1.43		1.67		1.37		1.32		1.27
2.64		2.58		Total, Individual Life Insurance	2.49		2.40		2.74		2.67		2.63

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

Page 18

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


Year-to-date					2004				2005
2005		2004			3Q		4Q		1Q		2Q		3Q
				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
336		195		Group life	34		42		274		30		32
137		143		Group disability (1)	38		18		76		46		15

473		338		Total	72		60		350		76		47

				Future Policy Benefits (2):
				Group life	1,734		1,881		1,891		1,948		1,924
				Group disability (1)	291		302		362		375		395

				Total	2,025		2,183		2,253		2,323		2,319

				Policyholders’ Account Balances (2):
				Group life	4,412		4,566		4,516		4,462		4,434
				Group disability (1)	66		71		74		85		90

				Total	4,478		4,637		4,590		4,547		4,524

				Separate Account Liabilities (2):
				Group life	11,198		12,483		12,832		15,954		15,983
				Group disability (1)	—		—		—		—		—

				Total	11,198		12,483		12,832		15,954		15,983

				Group Life Insurance:
2,045		1,924		Gross premiums, policy charges and fee income (3)	637		762		694		683		668
2,115		1,952		Earned premiums, policy charges and fee income	659		650		714		707		694
89.7	%	88.8	%	Benefits ratio	87.7	%	83.7	%	90.1	%	89.7	%	89.5	%
9.6	%	10.5	%	Administrative operating expense ratio	10.8	%	12.1	%	8.9	%	9.7	%	10.3	%
				Persistency ratio	94.3	%	93.9	%	96.8	%	96.4	%	95.6	%

				Group Disability Insurance (1):
591		532		Gross premiums, policy charges and fee income (3)	182		179		188		210		193
557		514		Earned premiums, policy charges and fee income	176		176		178		195		184
96.2	%	95.3	%	Benefits ratio	95.5	%	92.6	%	102.8	%	94.9	%	91.3	%
20.6	%	21.6	%	Administrative operating expense ratio	22.0	%	23.5	%	22.3	%	19.1	%	20.7	%
				Persistency ratio	87.4	%	85.8	%	91.6	%	90.2	%	87.1	%

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

(2)	As of end of period.

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

Page 19

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year-to-date			% Change			2004				2005
2005	2004		% Change			3Q		4Q		1Q		2Q		3Q
					Revenues (1):
250	82		205	%	Premiums	43		11		41		103		106
140	108		30	%	Policy charges and fee income	43		47		46		48		46
1,924	1,726		11	%	Net investment income	619		617		637		631		656
2,277	1,682		35	%	Commissions, investment management fees, and other income	572		734		749		726		802

4,591	3,598		28	%	Total revenues	1,277		1,409		1,473		1,508		1,610


					Benefits and Expenses (1):
783	653		20	%	Insurance and annuity benefits	237		209		215		272		296
1,212	974		24	%	Interest credited to policyholders’ account balances	372		388		384		397		431
70	27		159	%	Interest expense	17		21		22		25		23
(46)	(32	)	-44	%	Deferral of acquisition costs	(10	)	(19	)	(17	)	(16	)	(13	)
41	44		-7	%	Amortization of acquisition costs	15		9		14		14		13
1,820	1,688		8	%	General and administrative expenses	570		690		551		666		603

3,880	3,354		16	%	Total benefits and expenses	1,201		1,298		1,169		1,358		1,353


711	244		191	%	Adjusted operating income before income taxes	76		111		304		150		257

(1)

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

Page 20

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Nine Months Ended September 30, 2005								Quarter Ended September 30, 2005
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	250		—		—		250		106		—		—		106
Policy charges and fee income	140		—		—		140		46		—		—		46
Net investment income	1,924		53		7		1,864		656		20		3		633
Commissions, investment management fees, and other income	2,277		1,207		322		748		802		421		119		262

Total revenues	4,591		1,260		329		3,002		1,610		441		122		1,047

Benefits and Expenses (1):
Insurance and annuity benefits	783		—		—		783		296		—		—		296
Interest credited to policyholders’ account balances	1,212		—		—		1,212		431		—		—		431
Interest expense	70		10		—		60		23		3		—		20
Deferral of acquisition costs	(46	)	(14	)	—		(32	)	(13	)	(5	)	—		(8	)
Amortization of acquisition costs	41		26		—		15		13		8		—		5
General and administrative expenses	1,820		883		380		557		603		319		91		193

Total benefits and expenses	3,880		905		380		2,595		1,353		325		91		937

Adjusted operating income before income taxes	711		355		(51	)	407		257		116		31		110


	Nine Months Ended September 30, 2004								Quarter Ended September 30, 2004
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	82		—		—		82		43		—		—		43
Policy charges and fee income	108		—		—		108		43		—		—		43
Net investment income	1,726		51		1		1,674		619		16		—		603
Commissions, investment management fees, and other income	1,682		995		221		466		572		317		44		211

Total revenues	3,598		1,046		222		2,330		1,277		333		44		900

Benefits and Expenses (1):
Insurance and annuity benefits	653		—		—		653		237		—		—		237
Interest credited to policyholders’ account balances	974		—		—		974		372		—		—		372
Interest expense	27		8		—		19		17		3		—		14
Deferral of acquisition costs	(32	)	(15	)	—		(17	)	(10	)	(4	)	—		(6	)
Amortization of acquisition costs	44		34		—		10		15		11		—		4
General and administrative expenses	1,688		843		392		453		570		265		120		185

Total benefits and expenses	3,354		870		392		2,092		1,201		275		120		806

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

(1)

Page 21

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

INVESTMENT DIVISION - SUPPLEMENTARY REVENUE INFORMATION FOR ASSET MANAGEMENT SEGMENT

(in millions)


Year-to-date		% Change			2004		2005
2005	2004	% Change			3Q	4Q	1Q	2Q	3Q
				Asset Management Segment:
				Analysis of revenues by source:
				Investment Management and Advisory Services:
175	161	9	%	Retail customers	53	58	58	57	60
434	318	36	%	Institutional customers	106	124	134	149	151
193	170	14	%	General account	58	64	65	65	63

802	649	24	%	Subtotal	217	246	257	271	274
458	397	15	%	Mutual Fund, managed account and other revenues (1)	116	172	161	130	167

1,260	1,046	20	%	Total Asset Management segment revenues	333	418	418	401	441

				Analysis of commissions, investment management fees and other revenues by type:
				Investment Management and Advisory Services:
722	597	21	%	Asset-based fees	202	215	226	247	249
54	29	86	%	Transaction-based and other revenues	8	23	21	19	14

776	626	24	%	Subtotal	210	238	247	266	263
431	369	17	%	Mutual Fund, managed account and other revenues (1)	107	162	153	120	158

1,207	995	21	%	Total	317	400	400	386	421

(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

Third Quarter 2005

INVESTMENT DIVISION - SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)


Year-to-date					2004				2005
2005		2004			3Q		4Q		1Q		2Q		3Q
				Information pertaining to Wachovia Securities Financial Holdings, LLC:
				Revenues:
182		166		Net investment income	55		59		56		61		65
1,403		1,670		Commissions	454		526		482		457		464
1,357		1,208		Fees	413		429		443		455		459
123		86		Other non-interest revenues	31		21		29		41		53

3,065		3,130		Total revenues	953		1,035		1,010		1,014		1,041
				Expenses:
2,637		2,805		Expenses before transition costs	875		902		871		885		881
65		222		Transition costs	99		78		28		37		—

2,702		3,027		Total expenses	974		980		899		922		881

363		103		Income (loss) before income taxes	(21	)	55		111		92		160

138		39		Prudential Financial, Inc., 38% share of Wachovia Securities Financial Holdings, LLC	(8	)	21		42		35		61
(7	)	(5	)	Purchase accounting and related adjustments	(1	)	3		(3	)	(2	)	(2	)

131		34		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	(9	)	24		39		33		59

				Recurring revenue as a percentage of total non-interest revenue (1)	47.9	%	43.9	%	47.1	%	47.6	%	47.7	%
				Total client assets ($ in billions) (2)	615.9		652.6		644.7		655.6		683.1
				Distribution representatives (2):
				Series 7 Financial Advisors	7,964		8,017		7,883		7,833		7,941
				Series 6 Financial Representatives	2,594		2,502		2,451		2,456		2,493
				Customer debit balances ($ in billions) (2)	6.0		6.1		5.8		5.7		5.6
(49	)	(166	)	Prudential Financial, Inc. income (loss) from investment in Wachovia Securities Financial Holdings, LLC, including 38% interest in results, costs incurred at Prudential level, and purchase accounting adjustments	(69	)	(83	)	12		(98	)	37

(1)	Calculated on a YTD annualized basis.

(2)	As of end of period.

Page 23

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

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

(in billions)


	September 30, 2005
	Equity	Fixed Income	Real Estate	Total
Retail customers	51.2	17.9	1.4	70.5
Institutional customers	46.7	66.4	16.7	129.8
General account	3.2	152.0	1.1	156.3

Total	101.1	236.3	19.2	356.6


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

Total	82.5	225.4	15.6	323.5


Year-to-date				2004				2005
2005	2004			3Q		4Q		1Q		2Q		3Q
			Institutional Assets Under Management:
			Assets gathered by Investment Management & Advisory Services sales force:
84.8	69.3		Beginning assets under management	74.0		76.5		84.8		85.7		91.1
15.2	13.6		Additions to managed portfolio	3.5		8.6		3.1		5.0		7.1
(9.0)	(8.9	)	Withdrawals	(1.5	)	(3.5	)	(1.8	)	(2.1	)	(5.1	)
4.3	2.3		Change in market value	0.7		3.8		(0.6	)	2.7		2.2
(0.3)	0.2		Net money market flows	(0.2	)	(0.6	)	0.2		(0.2	)	(0.3	)

95.0	76.5		Ending assets under management	76.5		84.8		85.7		91.1		95.0
34.8	32.4		Other institutional assets under management	32.4		34.4		33.3		34.2		34.8

129.8	108.9		Total assets managed for institutional customers at end of period	108.9		119.2		119.0		125.3		129.8

Page 24

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

INVESTMENT DIVISION - MUTUAL FUNDS AND WRAP-FEE PRODUCTS

(in millions)


Year-to-date				2004				2005
2005	2004			3Q		4Q		1Q		2Q		3Q
			Mutual Funds Assets Under Management:
30,686	46,784		Beginning total mutual funds assets	39,774		29,674		30,686		29,894		30,446
3,185	2,176		Sales (other than money market)	631		827		874		1,288		1,023
(5,067)	(4,070	)	Redemptions (other than money market)	(1,217	)	(1,692	)	(1,592	)	(1,582	)	(1,893	)
2,365	578		Reinvestment of distributions and change in market value	(307	)	2,507		(500	)	1,174		1,691
(119)	(15,794	)	Net money market sales	(9,207	)	(630	)	426		(328	)	(217	)

31,050	29,674		Ending total mutual funds assets	29,674		30,686		29,894		30,446		31,050

(1,882)	(1,894	)	Net mutual funds redemptions other than money market	(586	)	(865	)	(718	)	(294	)	(870	)

			Wrap-fee Products Assets Under Administration:
41,254	19,833		Beginning total wrap-fee product assets	27,728		36,408		41,254		43,054		46,621
16,713	7,764		Sales	3,588		4,345		5,672		5,623		5,418
(8,180)	(4,886	)	Redemptions	(1,885	)	(2,766	)	(2,837	)	(2,735	)	(2,608	)
1,965	(187	)	Reinvestment of distributions and change in market value	(893	)	3,267		(1,035	)	679		2,321
—	13,884		Other (1)	7,870		—		—		—		—

51,752	36,408		Ending total wrap-fee product assets	36,408		41,254		43,054		46,621		51,752

8,533	2,878		Net wrap-fee product sales	1,703		1,579		2,835		2,888		2,810

			MUTUAL FUNDS AND WRAP-FEE PRODUCTS GROSS SALES BY DISTRIBUTION CHANNEL
			Mutual funds, excluding wrap-fee products (2):
279	300		Prudential Agents	72		76		104		93		82
2,743	1,799		Third party distributors	534		727		764		1,041		938
163	77		Other	25		24		6		154		3

3,185	2,176		Total	631		827		874		1,288		1,023

			Wrap-fee products:
541	433		Prudential Agents	120		136		175		174		192
16,172	7,331		Third party distributors (3)	3,468		4,209		5,497		5,449		5,226

16,713	7,764		Total	3,588		4,345		5,672		5,623		5,418

(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.

(3)	Substantially all relates to a contractual arrangement with Wachovia which provides for an essentially fixed annual fee commencing July 1, 2005.

Page 25

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


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

			Defined Contribution:

66,660	28,658		Beginning total account value	63,841		63,481		66,660		66,739		68,035
7,549	6,154		Sales	2,791		2,736		3,196		2,180		2,173
(7,333)	(7,096	)	Withdrawals	(3,041	)	(3,325	)	(2,729	)	(2,234	)	(2,370	)
3,291	1,108		Change in market value and interest credited	(110	)	3,768		(388	)	1,350		2,329
—	34,657		Acquisition	—		—		—		—		—

70,167	63,481		Ending total account value	63,481		66,660		66,739		68,035		70,167

216	(942	)	Net sales (withdrawals)	(250	)	(589	)	467		(54	)	(197	)

			Asset management of ending total account value:
			Proprietary	42,604		44,069		43,853		44,511		45,644
			Non-proprietary	20,877		22,591		22,886		23,524		24,523

			Total	63,481		66,660		66,739		68,035		70,167

			Guaranteed Products:

63,146	41,955		Beginning total account value	60,365		60,844		63,146		63,146		64,195
5,991	3,881		Sales	1,676		2,233		1,933		1,820		2,238
(5,654)	(5,276	)	Withdrawals and benefits	(2,113	)	(1,945	)	(1,903	)	(1,923	)	(1,828	)
2,416	1,845		Change in market value and interest income	945		1,849		333		1,379		704
(501)	(704	)	Other (1)	(29	)	165		(363	)	(227	)	89
—	19,143		Acquisition	—		—		—		—		—

65,398	60,844		Ending total account value	60,844		63,146		63,146		64,195		65,398

337	(1,395	)	Net sales (withdrawals)	(437	)	288		30		(103	)	410

			Product composition of ending total account value
			Spread-based products	23,396		24,244		24,878		25,428		25,193
			Fee-based products	37,448		38,902		38,268		38,767		40,205

			Total	60,844		63,146		63,146		64,195		65,398

(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.

Page 26

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date			% Change			2004				2005
2005	2004		% Change			3Q		4Q		1Q		2Q		3Q
					Revenues (1):
4,670	3,976		17	%	Premiums	1,292		1,366		1,552		1,550		1,568
204	179		14	%	Policy charges and fee income	55		61		71		66		67
964	704		37	%	Net investment income	242		234		309		318		337
302	261		16	%	Commissions, investment management fees, and other income	96		101		112		84		106

6,140	5,120		20	%	Total revenues	1,685		1,762		2,044		2,018		2,078

					Benefits and Expenses (1):
3,713	3,188		16	%	Insurance and annuity benefits	1,015		1,061		1,258		1,200		1,255
150	84		79	%	Interest credited to policyholders’ account balances	29		33		46		52		52
19	4		375	%	Interest expense	1		3		6		6		7
(757)	(614	)	-23	%	Deferral of acquisition costs	(206	)	(235	)	(251	)	(265	)	(241	)
297	256		16	%	Amortization of acquisition costs	92		109		101		108		88
1,676	1,452		15	%	General and administrative expenses	494		538		573		570		533

5,098	4,370		17	%	Total benefits and expenses	1,425		1,509		1,733		1,671		1,694

1,042	750		39	%	Adjusted operating income before income taxes	260		253		311		347		384

(1)

Page 27

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Nine Months Ended September 30, 2005							Quarter Ended September 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	4,670		2,814		1,856		—	1,568		909		659		—
Policy charges and fee income	204		153		51		—	67		54		13		—
Net investment income	964		424		504		36	337		144		178		15
Commissions, investment management fees, and other income	302		(18	)	1		319	106		(3	)	3		106

Total revenues	6,140		3,373		2,412		355	2,078		1,104		853		121

Benefits and Expenses (1):
Insurance and annuity benefits	3,713		2,174		1,539		—	1,255		688		567		—
Interest credited to policyholders’ account balances	150		73		77		—	52		23		29		—
Interest expense	19		17		(1	)	3	7		6		—		1
Deferral of acquisition costs	(757	)	(559	)	(198	)	—	(241	)	(176	)	(65	)	—
Amortization of acquisition costs	297		224		73		—	88		74		14		—
General and administrative expenses	1,676		865		531		280	533		272		167		94

Total benefits and expenses	5,098		2,794		2,021		283	1,694		887		712		95

Adjusted operating income before income taxes	1,042		579		391		72	384		217		141		26


	Nine Months Ended September 30, 2004							Quarter Ended September 30, 2004
	Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments	Total International Insurance & Investments Division		International Insurance excl. Gibraltar Life		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	3,976		2,191		1,785		—	1,292		742		550		—
Policy charges and fee income	179		120		59		—	55		38		17		—
Net investment income	704		232		450		22	242		82		152		8
Commissions, investment management fees, and other income	261		(18	)	(19	)	298	96		(8	)	(6	)	110

Total revenues	5,120		2,525		2,275		320	1,685		854		713		118

Benefits and Expenses (1):
Insurance and annuity benefits	3,188		1,697		1,491		—	1,015		558		457		—
Interest credited to policyholders’ account balances	84		12		72		—	29		4		25		—
Interest expense	4		8		(6	)	2	1		2		(2	)	1
Deferral of acquisition costs	(614	)	(447	)	(167	)	—	(206	)	(150	)	(56	)	—
Amortization of acquisition costs	256		199		57		—	92		73		19		—
General and administrative expenses	1,452		667		519		266	494		228		170		96

Total benefits and expenses	4,370		2,136		1,966		268	1,425		715		613		97

Adjusted operating income before income taxes	750		389		309		52	260		139		100		21

(1)

Page 28

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2004				2005
2005		2004			3Q		4Q		1Q		2Q		3Q
				Japanese Yen Basis Results:
				Revenues (1):
¥	261,222	¥	194,602	Japanese insurance operations excluding Gibraltar Life	¥	65,655	¥	66,171	¥	91,001	¥	83,651	¥	86,570
	259,422		249,757	Gibraltar Life		78,986		78,006		78,294		86,825		94,303

	520,644		444,359	Total revenues, Japan, yen basis		144,641		144,177		169,295		170,476		180,873

				Benefits and Expenses (1):
	205,963		157,682	Japanese insurance operations excluding Gibraltar Life		52,373		53,252		74,269		65,964		65,730
	216,608		213,620	Gibraltar Life		67,358		67,174		66,826		71,032		78,750

	422,571		371,302	Total benefits and expenses, Japan, yen basis		119,731		120,426		141,095		136,996		144,480

				Adjusted operating income (2):
	55,259		36,920	Japanese insurance operations excluding Gibraltar Life		13,282		12,919		16,732		17,687		20,840
	42,813		36,137	Gibraltar Life		11,628		10,832		11,468		15,793		15,552

¥	98,072	¥	73,057	Total adjusted operating income, Japan, yen basis	¥	24,910	¥	23,751	¥	28,200	¥	33,480	¥	36,392

				U.S. Dollar adjusted operating income (3):
$	503	$	315	Japanese insurance operations excluding Gibraltar Life	$	113	$	111	$	154	$	159	$	190
	391		309	Gibraltar Life		100		93		106		144		141

	894		624	Total adjusted operating income, Japan, U.S. dollar basis		213		204		260		303		331
	76		74	All other countries		26		15		25		24		27

$	970	$	698	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	239	$	219	$	285	$	327	$	358

(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

Third 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		3Q	4Q	1Q	2Q	3Q
		INTERNATIONAL INSURANCE OPERATING DATA:
		Actual exchange rate basis (1):
		Net premiums, policy charges and fee income:
2,099	1,628	Japan, excluding Gibraltar Life	542	579	752	678	669
1,907	1,844	Gibraltar Life	567	567	590	645	672
868	683	All other countries	238	281	281	293	294

4,874	4,155	Total	1,347	1,427	1,623	1,616	1,635

		Annualized new business premiums:
467	324	Japan, excluding Gibraltar Life	103	127	171	179	117
249	211	Gibraltar Life	68	66	71	96	82
198	150	All other countries	50	67	66	68	64

914	685	Total	221	260	308	343	263

		Constant exchange rate basis (2):
		Net premiums, policy charges and fee income:
2,091	1,645	Japan, excluding Gibraltar Life	553	565	730	674	687
1,891	1,853	Gibraltar Life	575	565	568	635	688
783	694	All other countries	241	269	252	262	269

4,765	4,192	Total	1,369	1,399	1,550	1,571	1,644

		Annualized new business premiums:
466	325	Japan, excluding Gibraltar Life	104	125	168	178	120
246	212	Gibraltar Life	68	66	69	94	83
178	151	All other countries	49	66	60	61	57

890	688	Total	221	257	297	333	260

(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

Third Quarter 2005

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2004				2005
	3Q		4Q		1Q		2Q		3Q
Face amount of individual policies in force at end of period (in billions) (1): (Constant exchange rate basis)
Japan, excluding Gibraltar Life	192		207		211		216		219
Gibraltar Life	217		214		212		209		208
All other countries	76		79		82		83		85

Total	485		500		505		508		512

Number of individual policies in force at end of period (in thousands):
Japan, excluding Gibraltar Life	1,304		1,696		1,737		1,780		1,808
Gibraltar Life	4,109		4,070		4,025		3,961		3,938
All other countries	925		965		1,001		1,036		1,064

Total	6,338		6,731		6,763		6,777		6,810

International insurance policy persistency (2):
13 months	92.8	%	93.0	%	92.9	%	93.1	%	93.3	%
25 months	86.5	%	86.3	%	86.2	%	86.2	%	86.6	%
Number of Life Planners at end of period (3):
Japan	2,509		2,550		2,665		2,603		2,752
All other countries	2,725		2,835		2,890		2,926		2,950

Total	5,234		5,385		5,555		5,529		5,702

(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

Third Quarter 2005

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 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)	121,800	36,174	85,626	57.9	%	118,400	34,683	83,717	57.1	%
Public, held to maturity, at amortized cost	2,974	—	2,974	2.0	%	2,624	—	2,624	1.8	%
Private, available for sale, at fair value (1)	31,222	13,416	17,806	12.1	%	32,336	14,130	18,206	12.4	%
Private, held to maturity, at amortized cost	196	—	196	0.1	%	123	—	123	0.1	%
Trading account assets supporting insurance liabilities, at fair value	14,208	—	14,208	9.6	%	12,964	—	12,964	8.8	%
Other trading account assets, at fair value	67	—	67	0.0	%	130	—	130	0.1	%
Equity securities, available for sale, at fair value	4,684	2,742	1,942	1.3	%	4,271	2,620	1,651	1.1	%
Commercial loans	23,392	7,285	16,107	10.9	%	24,389	7,297	17,092	11.6	%
Policy loans	8,364	5,405	2,959	2.0	%	8,373	5,454	2,919	2.0	%
Other long-term investments (2)	4,874	945	3,929	2.7	%	4,978	1,047	3,931	2.7	%
Short-term investments	3,470	1,439	2,031	1.4	%	5,245	1,840	3,405	2.3	%

Subtotal (3)	215,251	67,406	147,845	100.0	%	213,833	67,071	146,762	100.0	%

Invested assets of other entities and operations (4)	2,491	—	2,491			2,791	—	2,791

Total investments	217,742	67,406	150,336			216,624	67,071	149,553

Fixed Maturities by Credit Quality (3):


	September 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	66,206	2,445	269	68,382	77.2	%	63,553	2,500	276	65,777	76.2	%
2 Baa	15,330	806	138	15,998	18.1	%	16,463	980	123	17,320	20.1	%

Subtotal Investment Grade	81,536	3,251	407	84,380	95.3	%	80,016	3,480	399	83,097	96.3	%

3 Ba	2,588	124	35	2,677	3.0	%	2,096	176	72	2,200	2.5	%
4 B	1,335	87	14	1,408	1.6	%	839	93	1	931	1.1	%
5 C and lower	100	6	4	102	0.1	%	85	13	2	96	0.1	%
6 In or near default	27	7	1	33	0.0	%	25	9	—	34	0.0	%

Subtotal Below Investment Grade	4,050	224	54	4,220	4.7	%	3,045	291	75	3,261	3.7	%

Total	85,586	3,475	461	88,600	100.0	%	83,061	3,771	474	86,358	100.0	%

Private Fixed Maturities:
NAIC Rating (5) Rating Agency Equivalent
1 Aaa, Aa, A	5,827	264	31	6,060	33.7	%	4,917	321	19	5,219	28.5	%
2 Baa	9,435	587	45	9,977	55.4	%	9,831	695	25	10,501	57.3	%

Subtotal Investment Grade	15,262	851	76	16,037	89.1	%	14,748	1,016	44	15,720	85.8	%

3 Ba	1,148	49	7	1,190	6.6	%	1,520	102	1	1,621	8.8	%
4 B	406	34	1	439	2.4	%	399	42	3	438	2.4	%
5 C and lower	236	33	—	269	1.5	%	293	32	1	324	1.8	%
6 In or near default	63	8	2	69	0.4	%	224	9	6	227	1.2	%

Subtotal Below Investment Grade	1,853	124	10	1,967	10.9	%	2,436	185	11	2,610	14.2	%

Total	17,115	975	86	18,004	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 September 30, 2005 and December 31, 2004, respectively, 184 securities with amortized cost of $2,770 million (fair value $2,809 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

Third Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	September 30, 2005			December 31, 2004
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value (1)	32,168	70.8	%	33,090	69.8	%
Public, held to maturity, at amortized cost	2,974	6.5	%	2,624	5.5	%
Private, available for sale, at fair value (1)	2,696	5.9	%	2,309	4.9	%
Private, held to maturity, at amortized cost	196	0.4	%	123	0.3	%
Trading account assets supporting insurance liabilities, at fair value	956	2.1	%	885	1.9	%
Other trading account assets, at fair value	28	0.1	%	71	0.1	%
Equity securities, available for sale, at fair value	1,727	3.8	%	1,470	3.1	%
Commercial loans	2,592	5.7	%	3,371	7.1	%
Policy loans	978	2.2	%	1,037	2.2	%
Other long-term investments (2)	1,051	2.3	%	1,375	2.9	%
Short-term investments	77	0.2	%	1,031	2.2	%

Total	45,443	100.0	%	47,386	100.0	%


	September 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)	53,458	52.2	%	50,627	51.0	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value (1)	15,110	14.8	%	15,897	16.0	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	13,252	13.0	%	12,079	12.2	%
Other trading account assets, at fair value	39	0.0	%	59	0.0	%
Equity securities, available for sale, at fair value	215	0.2	%	181	0.2	%
Commercial loans	13,515	13.2	%	13,721	13.8	%
Policy loans	1,981	1.9	%	1,882	1.9	%
Other long-term investments (2)	2,878	2.8	%	2,556	2.5	%
Short-term investments	1,954	1.9	%	2,374	2.4	%

Total	102,402	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

Third Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended September 30
	2005						2004
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (3)		Amount				Yield (3)		Amount
Financial Services Businesses (1) (4):
Fixed maturities	4.62	%	1,186		45		4.52	%	1,012		79
Equity securities	4.59	%	19		40		3.70	%	11		15
Commercial loans	6.67	%	196		(7	)	6.50	%	185		(16	)
Policy loans	4.96	%	36		—		4.99	%	32		—
Short-term investments and cash equivalents	2.68	%	52		—		1.59	%	24		(1	)
Other investments	9.78	%	120		(2	)	8.64	%	126		(40	)

Gross investment income before investment expenses	4.96	%	1,609		76		4.78	%	1,390		37
Investment expenses	-0.12	%	(93	)	—		-0.15	%	(70	)	—

Subtotal	4.84	%	1,516		76		4.63	%	1,320		37

Investment results of other entities and operations (2)			74		17				77		(1	)
Less, investment income relating to divested businesses			(3	)					—

Total			1,587		93				1,397		36


	Nine Months Ended September 30
	2005						2004
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (3)		Amount				Yield (3)		Amount
Financial Services Businesses (1) (4):
Fixed maturities	4.63	%	3,492		87		4.61	%	2,946		118
Equity securities	3.77	%	44		54		2.62	%	22		94
Commercial loans	6.84	%	601		111		6.70	%	568		(2	)
Policy loans	4.86	%	105		—		4.77	%	92		—
Short-term investments and cash equivalents	2.60	%	143		—		1.54	%	71		(1	)
Other investments	7.88	%	281		348		8.51	%	301		7

Gross investment income before investment expenses	4.88	%	4,666		600		4.85	%	4,000		216
Investment expenses	-0.15	%	(271	)	—		-0.16	%	(185	)	—

Subtotal	4.73	%	4,395		600		4.69	%	3,815		216

Investment results of other entities and operations (2)			217		20				157		(58	)
Less, investment income relating to divested businesses			(11	)					(1	)

Total			4,601		620				3,971		158

(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

Third Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 30
	2005						2004
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (1)		Amount				Yield (1)		Amount
Japanese Insurance Operations (2):
Fixed maturities	2.36	%	220		(1	)	1.96	%	154		(4	)
Equity securities	4.63	%	16		26		3.49	%	10		2
Commercial loans	4.12	%	28		4		4.18	%	28		5
Policy loans	3.49	%	8		—		3.78	%	7		—
Short-term investments and cash equivalents	0.93	%	2		—		8.31	%	1		(1	)
Other investments	10.45	%	26		(36	)	8.08	%	23		(1	)

Gross investment income before investment expenses	2.73	%	300		(7	)	2.39	%	223		1
Investment expenses	-0.19	%	(21	)	—		-0.21	%	(19	)	—

Total	2.54	%	279		(7	)	2.18	%	204		1


	Nine Months Ended September 30
	2005						2004
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (1)		Amount				Yield (1)		Amount
Japanese Insurance Operations (2):
Fixed maturities	2.27	%	638		(68	)	1.94	%	458		(12	)
Equity securities	3.18	%	33		38		2.26	%	17		33
Commercial loans	4.10	%	90		120		4.27	%	88		20
Policy loans	3.40	%	25		—		3.26	%	20		—
Short-term investments and cash equivalents	0.51	%	3		—		8.49	%	2		(1	)
Other investments	9.20	%	82		80		8.01	%	70		9

Gross investment income before investment expenses	2.60	%	871		170		2.34	%	655		49
Investment expenses	-0.19	%	(64	)	—		-0.21	%	(59	)	—

Total	2.41	%	807		170		2.13	%	596		49

(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

Third Quarter 2005

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended September 30
	2005						2004
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (2)		Amount				Yield (2)		Amount
Financial Services Businesses excluding Japanese Insurance Operations (1) (3):
Fixed maturities	5.98	%	966		46		5.96	%	858		83
Equity securities	4.26	%	3		14		5.27	%	1		13
Commercial loans	7.45	%	168		(11	)	7.22	%	157		(21	)
Policy loans	5.70	%	28		—		5.54	%	25		—
Short-term investments and cash equivalents	2.99	%	50		—		1.55	%	23		—
Other investments	10.82	%	94		34		8.82	%	103		(39	)

Gross investment income before investment expenses	6.21	%	1,309		83		5.98	%	1,167		36
Investment expenses	-0.09	%	(72	)	—		-0.12	%	(51	)	—

Total	6.12	%	1,237		83		5.86	%	1,116		36


	Nine Months Ended September 30
	2005						2004
					Realized Gains / (Losses)						Realized Gains / (Losses)
	Investment Income						Investment Income
	Yield (2)		Amount				Yield (2)		Amount
Financial Services Businesses excluding Japanese Insurance Operations (1) (3):
Fixed maturities	6.10	%	2,854		155		6.22	%	2,488		130
Equity securities	9.22	%	11		16		5.23	%	5		61
Commercial loans	7.75	%	511		(9	)	7.49	%	480		(22	)
Policy loans	5.63	%	80		—		5.50	%	72		—
Short-term investments and cash equivalents	3.03	%	140		—		1.50	%	69		—
Other investments	7.44	%	199		268		8.70	%	231		(2	)

Gross investment income before investment expenses	6.19	%	3,795		430		6.17	%	3,345		167
Investment expenses	-0.12	%	(207	)	—		-0.13	%	(126	)	—

Total	6.07	%	3,588		430		6.04	%	3,219		167

(1)

(2)

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

Page 36

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year ended December 31
2003		2004								2005
		1Q		2Q		3Q		4Q		1Q		2Q
	Revenues (1):
7,945	Premiums	2,196		2,217		2,183		2,224		2,529		2,598
2,024	Policy charges and fee income	567		600		615		644		626		629
4,935	Net investment income	1,244		1,330		1,397		1,413		1,499		1,515
3,254	Commissions, investment management fees, and other income	676		917		841		976		977		982

18,158	Total revenues	4,683		5,064		5,036		5,257		5,631		5,724

	Benefits and Expenses (1):
8,307	Insurance and annuity benefits	2,289		2,243		2,246		2,254		2,559		2,544
1,718	Interest credited to policyholders’ account balances	432		589		587		600		603		623
200	Interest expense	53		57		83		103		111		134
(1,270)	Deferral of acquisition costs	(388	)	(373	)	(360	)	(407	)	(416	)	(500	)
533	Amortization of acquisition costs	192		190		212		172		229		236
6,696	General and administrative expenses	1,555		1,715		1,633		1,856		1,659		1,864

16,184	Total benefits and expenses	4,133		4,421		4,401		4,578		4,745		4,901

1,974	Adjusted operating income before income taxes	550		643		635		679		886		823

(1)

Page 37

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


Year ended December 31
2003		2004								2005
2003		1Q		2Q		3Q		4Q		1Q		2Q
	Revenues (1):
3,249	Premiums	855		833		852		848		941		950
1,740	Policy charges and fee income	490		496		519		541		513		519
1,446	Net investment income	369		378		402		422		433		420
387	Commissions, investment management fees, and other income	150		156		162		152		137		164

6,822	Total revenues	1,864		1,863		1,935		1,963		2,024		2,053

	Benefits and Expenses (1):
3,821	Insurance and annuity benefits	978		929		966		949		1,068		1,054
663	Interest credited to policyholders’ account balances	180		185		186		182		177		183
—	Interest expense	1		2		10		19		25		25
(595)	Deferral of acquisition costs	(182	)	(180	)	(161	)	(168	)	(165	)	(234	)
245	Amortization of acquisition costs	108		109		120		66		127		126
1,900	General and administrative expenses	568		580		569		618		537		633

6,034	Total benefits and expenses	1,653		1,625		1,690		1,666		1,769		1,787

788	Adjusted operating income before income taxes	211		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 38

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS AND SUPPLEMENTAL INFORMATION - GROUP INSURANCE SEGMENT

(dollars in millions)


Year ended December 31
2003		2004								2005
		1Q		2Q		3Q		4Q		1Q		2Q
	Revenues (1):
2,833	Premiums	754		730		741		725		818		833
262	Policy charges and fee income	71		76		94		101		74		69
585	Net investment income	135		138		143		145		151		148
37	Commissions, investment management fees, and other income	11		9		9		10		9		10

3,717	Total revenues	971		953		987		981		1,052		1,060

	Benefits and Expenses (1):
2,797	Insurance and annuity benefits	761		716		745		708		827		818
243	Interest credited to policyholders’ account balances	52		54		53		51		51		52
2	Interest expense	—		1		3		4		5		4
(34)	Deferral of acquisition costs	(7	)	(8	)	(6	)	(6	)	(8	)	(38	)
3	Amortization of acquisition costs	1		1		1		1		1		1
537	General and administrative expenses	138		143		143		169		138		177

3,548	Total benefits and expenses	945		907		939		927		1,014		1,014

169	Adjusted operating income before income taxes	26		46		48		54		38		46

	Group Life Insurance:
2,542	Gross premiums, policy charges and fee income (2)	674		613		637		762		694		683
2,453	Earned premiums, policy charges and fee income	652		641		659		650		714		707
89.9%	Benefits ratio	91.4	%	87.2	%	87.7	%	83.7	%	90.1	%	89.7	%
9.7%	Administrative operating expense ratio	9.5	%	11.1	%	10.8	%	12.1	%	8.9	%	9.7	%
	Group Disability Insurance (3):
662	Gross premiums, policy charges and fee income (2)	176		174		182		179		188		210
642	Earned premiums, policy charges and fee income	173		165		176		176		178		195
92.4%	Benefits ratio	95.4	%	95.2	%	95.5	%	92.6	%	102.8	%	94.9	%
22.5%	Administrative operating expense ratio	21.0	%	21.8	%	22.0	%	23.5	%	22.3	%	19.1	%

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

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

Page 39

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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 40

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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. Single premium business for the company's international insurance operations is included in annualized new business premiums based on 10% credit.

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 41

Prudential Financial, Inc.

Quarterly Financial Supplement

Third 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 18.10% for the nine months ended September 30, 2005, 9.92% for the nine months ended September 30, 2004, 24.16% for the three months ended September 30, 2005, 11.66% for the three months ended September 30, 2004, 15.04% for the three months ended June 30, 2005, 14.87% for the three months ended March 31, 2005 and 7.74% for the three months ended December 31, 2004.

23. Policy Persistency - Group Insurance:

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

24. Policy Persistency - International Insurance:

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

25. Prudential Agents:

Insurance agents in our insurance operations in the United States.

26. Prudential Agent productivity:

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

27. Ratio of 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 42

Prudential Financial, Inc.

Quarterly Financial Supplement

Third Quarter 2005

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of November 2, 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*	AA-
American Skandia Life Assurance Corporation	A+	AA-	NR	AA-
Prudential Retirement Insurance and Annuity Company	A+	AA-	Aa3	AA-
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 November 2, 2005

Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-2	P-2	F1
Long-Term Senior Debt	a-	A-	A3	A
Retail Notes	a-	A-	A3	NR
The Prudential Insurance Company of America :
Capital and surplus notes	a	A	A2	A
Prudential Funding, LLC:
Short-Term Debt	AMB-1	A-1+	P-1	F1
Long-Term Senior Debt	a+	AA-	A1	A+
PRICOA Global Funding I
Long-Term Senior Debt	aa-	AA-	Aa3	AA-

*	NR indicates not rated.

INVESTOR INFORMATION:


Corporate Offices:		Investor Information Hotline:

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

		Web Site:

		www.prudential.com

Publicly Traded Securities:

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

Page 43

Form: 8-K

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