August 2, 2006 - QUARTERLY FINANCIAL SUPPLEMENT - 8-K: Current report

Exhibit 99.1

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Prudential Financial, Inc. (PRU)

Quarterly Financial Supplement

FINANCIAL SERVICES BUSINESSES

SECOND QUARTER 2006

Reference is made to Prudential Financial, Inc.’s filings with the Securities and Exchange Commission for general information, and consolidated financial information, regarding Prudential Financial, Inc., including its Closed Block Business. All financial information in this document is unaudited.

August 2, 2006


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

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 and Long-Term Debt		9

INSURANCE DIVISION
Combined Statements of Operations		10
Combining Statements of Operations (Quarter)		11
Combining Statements of Operations		12
Individual Annuities Sales Results, Account Values and Minimum Guarantees		13
Individual Life Sales, Account Value Activity, and Face Amount in Force		14
Individual Annuities Account Value Activity		15
Deferred Policy Acquisition Costs		16
Supplementary Information for Individual Life Insurance		17
Supplementary Information for Group Insurance		18

INVESTMENT DIVISION
Combined Statements of Operations		19
Combining Statements of Operations		20
Supplementary Revenue Information for Asset Management Segment		21
Assets Under Management for Investment Management and Advisory Services operations		22
Mutual Funds and Wrap-fee Products		23
Supplementary Information for Financial Advisory Segment		24
Retirement Sales Results and Account Values		25

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION
Combined Statements of Operations		26
Combining Statements of Operations		27
International Insurance Segment - Supplementary Income Statement Information		28
Sales Results and Supplementary Information		29-30

INVESTMENT PORTFOLIO
Investment Portfolio Composition		31
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations		32
Financial Services Businesses Investment Results		33
Financial Services Businesses Investment Results - Japanese Insurance Operations		34
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations		35

RECLASSIFIED STATEMENTS OF OPERATIONS AND SUPPLEMENTAL INFORMATION		36-40

KEY DEFINITIONS AND FORMULAS		41-43

RATINGS AND INVESTOR INFORMATION		44


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

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

iii


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date				% Change			2005						2006
2006		2005		% Change			2Q		3Q		4Q		1Q		2Q
						*Financial Services Businesses:*
						Pre-tax adjusted operating income by division:
545		521		5	%	Insurance Division	266		341		365		298		247
556		454		22	%	Investment Division	150		257		(4	)	240		316
740		656		13	%	International Insurance and Investments Division	346		383		377		382		358
63		76		-17	%	Corporate and other operations	59		50		76		26		37

1,904		1,707		12	%	Total pre-tax adjusted operating income	821		1,031		814		946		958
553		538		3	%	Income taxes, applicable to adjusted operating income	253		292		290		277		276

1,351		1,169		16	%	Financial Services Businesses after-tax adjusted operating income	568		739		524		669		682

						Items excluded from adjusted operating income:
(260	)	485		-154	%	Realized investment gains (losses), net, and related charges and adjustments	249		80		(1	)	51		(311	)
(265	)	58		-557	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	190		(99	)	8		(114	)	(151	)
196		(57	)	444	%	Change in experience-rated contractholder liabilities due to asset value changes	(145	)	47		(34	)	66		130
2		(2	)	200	%	Divested businesses	3		(3	)	(45	)	8		(6	)

(327	)	484		-168	%	Total items excluded from adjusted operating income, before income taxes	297		25		(72	)	11		(338	)
(93	)	88		-206	%	Income taxes, not applicable to adjusted operating income	67		(572	)	72		2		(95	)

(234	)	396		-159	%	Total items excluded from adjusted operating income, after income taxes	230		597		(144	)	9		(243	)

1,117		1,565		-29	%	Income from continuing operations (after-tax) of Financial Services Businesses	798		1,336		380		678		439
(18	)	(45	)	60	%	Loss from discontinued operations, net of taxes	(44	)	(14	)	(3	)	(3	)	(15	)

1,099		1,520		-28	%	Net income of Financial Services Businesses	754		1,322		377		675		424

						Earnings per share of Common Stock (diluted):
2.77		2.30				Financial Services Businesses after-tax adjusted operating income	1.12		1.46		1.06		1.36		1.40
						Items excluded from adjusted operating income:
(0.52	)	0.92				Realized investment gains (losses), net, and related charges and adjustments	0.47		0.15		—		0.10		(0.63	)
(0.53	)	0.11				Investment gains (losses) on trading account assets supporting insurance liabilities, net	0.37		(0.19	)	0.02		(0.23	)	(0.30	)
0.39		(0.11	)			Change in experience-rated contractholder liabilities due to asset value changes	(0.28	)	0.09		(0.07	)	0.13		0.26
0.01		(0.01	)			Divested businesses	0.01		—		(0.09	)	0.02		(0.01	)

(0.65	)	0.91				Total items excluded from adjusted operating income, before income taxes	0.57		0.05		(0.14	)	0.02		(0.68	)
(0.18	)	0.17				Income taxes, not applicable to adjusted operating income	0.13		(1.10	)	0.14		—		(0.20	)

(0.47	)	0.74				Total items excluded from adjusted operating income, after income taxes	0.44		1.15		(0.28	)	0.02		(0.48	)

2.30		3.04				Income from continuing operations (after-tax) of Financial Services Businesses	1.56		2.61		0.78		1.38		0.92
(0.03	)	(0.08	)			Income (loss) from discontinued operations, net of taxes	(0.08	)	(0.02	)	—		—		(0.03	)

2.27		2.96				Net income of Financial Services Businesses	1.48		2.59		0.78		1.38		0.89

500.6		527.6				Weighted average number of outstanding Common shares (diluted basis)	525.2		518.3		510.2		504.1		497.1
13.62	%	12.15	%			Operating Return on Average Equity (based on adjusted operating income)	11.71	%	14.67	%	10.54	%	13.55	%	13.66	%
						*Reconciliation to Consolidated Net Income of Prudential Financial, Inc:*
1,099		1,520				Net income of Financial Services Businesses (above)	754		1,322		377		675		424
87		292				Net income (loss) of Closed Block Business	129		42		(13	)	58		29

1,186		1,812				Consolidated net income	883		1,364		364		733		453

35		44				Direct equity adjustments for earnings per share calculations	22		19		19		19		16

Page 1


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

FINANCIAL HIGHLIGHTS

(in millions, except per share data)


Year-to-date			2005			2006
2006	2005		2Q	3Q	4Q	1Q	2Q
		*Financial Services Businesses Capitalization Data (1):*
		Short-term debt	5,856	5,572	9,447	9,685	9,723
		Long-term debt	6,984	7,053	6,520	7,284	7,520

		Attributed Equity:
		Including accumulated other comprehensive income	22,375	22,493	21,654	21,229	20,424
		Excluding unrealized gains and losses on investments	20,311	21,025	20,206	20,426	20,444
		Excluding accumulated other comprehensive income	20,292	21,083	20,546	20,717	20,604

		Total Capitalization:
		Including accumulated other comprehensive income	29,359	29,546	28,174	28,513	27,944
		Excluding unrealized gains and losses on investments	27,295	28,078	26,726	27,710	27,964
		Excluding accumulated other comprehensive income	27,276	28,136	27,066	28,001	28,124

		Book value per share of Common Stock:
		Including accumulated other comprehensive income	42.82	43.79	42.70	42.43	41.41
		Excluding unrealized gains and losses on investments	38.87	40.94	39.85	40.83	41.45
		Excluding accumulated other comprehensive income	38.84	41.05	40.52	41.41	41.78

		Number of diluted shares at end of period	522.5	513.6	507.1	500.3	493.2

		*Common Stock Price Range (based on closing price):*
78.89	66.30	High	66.30	68.30	77.96	77.48	78.89
73.19	52.62	Low	55.23	63.09	63.27	73.19	74.43
77.70	65.66	Close	65.66	67.56	73.19	75.81	77.70

		*Common Stock market capitalization (1)*	33,707	34,118	36,412	37,288	37,651

(1)	As of end of period.

Page 2


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

OPERATIONS HIGHLIGHTS


Year-to-date			2005			2006
2006	2005		2Q	3Q	4Q	1Q	2Q
		*Assets Under Management and Administration ($ billions) (1) (2):*

		Assets Under Management :
		Managed by Investment Division:
		Asset Management Segment - Investment Management & Advisory Services
		Retail customers	65.7	70.5	73.5	75.6	75.1
		Institutional customers	125.3	129.8	134.7	138.7	138.5
		General account	157.6	156.3	159.2	157.8	159.7

		Total Investment Management and Advisory Services	348.6	356.6	367.4	372.1	373.3
		Non-proprietary assets under management	46.5	48.0	48.1	51.3	49.6

		Total managed by Investment Division	395.1	404.6	415.5	423.4	422.9
		Managed by International Insurance and Investments Division	74.1	73.0	71.4	74.5	82.6
		Managed by Insurance Division	41.8	44.0	44.6	49.5	62.9

		Total assets under management	511.0	521.6	531.5	547.4	568.4
		Client assets under administration	90.0	96.9	92.5	100.0	101.6

		Total assets under management and administration	601.0	618.5	624.0	647.4	670.0

		Assets managed or administered for customers outside of the United States at end of period	107.0	108.8	100.4	105.3	114.0

		*Distribution Representatives (1):*
		Prudential Agents	3,340	3,212	2,946	2,850	2,844
		International Life Planners (3)	5,464	5,626	5,627	5,712	5,726
		Gibraltar Life Advisors	4,788	5,349	5,436	5,716	5,684

48	39	*Prudential Agent productivity ($ thousands)*	42	43	61	45	52

		*Third Party Distribution - Retail Products ($ millions) (4):*
103	86	Individual life insurance (5)	47	55	66	47	56
4	2	Corporate-owned life insurance sales	1	3	2	—	4
3,840	2,777	Individual annuities	1,640	1,596	1,600	1,752	2,088
16,801	12,751	Mutual funds and wrap-fee products	6,490	6,164	6,624	8,282	8,519

(1)	As of end of period.

(2)	At fair market value.

(3)	Life Planner count excludes Life Planners associated with discontinued Philippine operations for all periods presented.

(4)	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.

(5)	Excludes corporate-owned life insurance sales.

Page 3


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year-to-date				% Change			2005						2006
2006		2005		% Change			2Q		3Q		4Q		1Q		2Q
						Revenues (1):

5,146		5,104		1	%	Premiums	2,585		2,574		2,450		2,604		2,542
1,329		1,232		8	%	Policy charges and fee income	615		668		629		662		667
3,666		3,269		12	%	Net investment income	1,644		1,731		1,810		1,801		1,865
2,020		1,700		19	%	Asset management fees, commissions and other income	852		960		948		1,054		966

12,161		11,305		8	%	Total revenues	5,696		5,933		5,837		6,121		6,040

						Benefits and Expenses (1):

5,168		5,055		2	%	Insurance and annuity benefits	2,519		2,496		2,439		2,577		2,591
1,329		1,231		8	%	Interest credited to policyholders’ account balances	626		653		632		652		677
424		245		73	%	Interest expense	134		143		180		201		223
(996	)	(918	)	-8	%	Deferral of acquisition costs	(496	)	(444	)	(439	)	(501	)	(495	)
504		467		8	%	Amortization of acquisition costs	232		271		172		240		264
3,828		3,518		9	%	General and administrative expenses	1,860		1,783		2,039		2,006		1,822

10,257		9,598		7	%	Total benefits and expenses	4,875		4,902		5,023		5,175		5,082

1,904		1,707		12	%	Adjusted operating income before income taxes	821		1,031		814		946		958

						Items excluded from adjusted operating income before income taxes:
(283	)	579		-149	%	Realized investment gains (losses), net, and related adjustments	322		90		3		51		(334	)
23		(94	)	124	%	Related charges	(73	)	(10	)	(4	)	—		23

(260	)	485		-154	%	Total realized investment gains (losses), net, and related charges and adjustments	249		80		(1	)	51		(311	)

(265	)	58		-557	%	Investment gains (losses) on trading account assets supporting insurance liabilities, net	190		(99	)	8		(114	)	(151	)
196		(57	)	444	%	Change in experience-rated contractholder liabilities due to asset value changes	(145	)	47		(34	)	66		130
2		(2	)	200	%	Divested businesses	3		(3	)	(45	)	8		(6	)

(327	)	484		-168	%	Total items excluded from adjusted operating income before income taxes	297		25		(72	)	11		(338	)

1,577		2,191		-28	%	Income from continuing operations before income taxes	1,118		1,056		742		957		620
460		626		-27	%	Income tax expense (benefit)	320		(280	)	362		279		181

1,117		1,565		-29	%	Income from continuing operations	798		1,336		380		678		439

(1)

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

Page 4


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES

(in millions)


	6/30/2005	9/30/2005	12/31/2005	3/31/2006	6/30/2006
Assets:
Investments:
Fixed maturities, available for sale, at fair value (amortized cost $100,311; $99,424; $101,672; $102,220; $107,756)	105,724	103,300	105,188	104,276	108,150
Fixed maturities, held to maturity, at amortized cost (fair value $3,167; $3,049; $3,228; $3,397; $3,416)	3,123	3,051	3,249	3,430	3,555
Trading account assets supporting insurance liabilities, at fair value	13,744	14,208	13,781	13,877	14,239
Other trading account assets, at fair value	1,403	1,409	1,443	2,358	4,561
Equity securities, available for sale, at fair value (cost $2,229; $2,243; $2,206; $2,249; $2,415)	2,479	2,584	2,627	2,724	2,801
Commercial loans	17,189	17,167	17,177	17,721	18,018
Policy loans	2,935	2,959	2,967	3,094	3,253
Securities purchased under agreements to resell	60	146	413	103	2,242
Other long-term investments	4,331	4,341	4,495	4,920	5,049
Short-term investments	2,541	2,160	2,565	2,404	2,768

Total investments	153,529	151,325	153,905	154,907	164,636
Cash and cash equivalents	6,055	6,124	5,493	5,915	6,521
Accrued investment income	1,350	1,402	1,358	1,400	1,433
Reinsurance recoverables	3,648	3,673	3,548	3,480	1,869
Deferred policy acquisition costs	7,891	8,131	8,357	8,776	9,239
Other assets	14,466	14,975	15,069	16,279	19,188
Separate account assets	149,256	155,400	157,561	170,134	166,735

Total assets	336,195	341,030	345,291	360,891	369,621

Liabilities:
Future policy benefits	53,817	52,936	51,926	52,838	55,520
Policyholders’ account balances	71,067	71,205	69,924	70,482	74,122
Reinsurance payables	3,203	3,210	3,069	2,994	1,351
Securities sold under agreements to repurchase	5,739	5,682	6,801	7,141	9,564
Cash collateral for loaned securities	3,048	2,995	3,425	3,139	3,834
Income taxes payable	2,602	2,084	2,136	2,500	1,969
Securities sold but not yet purchased	144	207	223	132	2,152
Short-term debt	5,856	5,572	9,447	9,685	9,723
Long-term debt	6,984	7,053	6,520	7,284	7,520
Other liabilities	12,104	12,193	12,605	13,333	16,707
Separate account liabilities	149,256	155,400	157,561	170,134	166,735

Total liabilities	313,820	318,537	323,637	339,662	349,197

Attributed Equity:
Accumulated other comprehensive income (loss)	2,083	1,410	1,108	512	(180	)
Other attributed equity	20,292	21,083	20,546	20,717	20,604

Total attributed equity	22,375	22,493	21,654	21,229	20,424

Total liabilities and attributed equity	336,195	341,030	345,291	360,891	369,621

Page 5


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Quarter Ended June 30, 2006
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	2,542		1,005		30		1,517		(10	)
Policy charges and fee income	667		559		43		70		(5	)
Net investment income	1,865		441		921		343		160
Asset management fees, commissions and other income	966		166		652		150		(2	)

Total revenues	6,040		2,171		1,646		2,080		143

Benefits and Expenses (1):
Insurance and annuity benefits	2,591		1,144		235		1,203		9
Interest credited to policyholders’ account balances	677		181		452		61		(17	)
Interest expense	223		28		62		4		129
Deferral of acquisition costs	(495	)	(228	)	(22	)	(257	)	12
Amortization of acquisition costs	264		142		17		115		(10	)
General and administrative expenses	1,822		657		586		596		(17	)

Total benefits and expenses	5,082		1,924		1,330		1,722		106

Adjusted operating income before income taxes	958		247		316		358		37


	Quarter Ended June 30, 2005
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	2,585		938		103		1,550		(6	)
Policy charges and fee income	615		505		48		66		(4	)
Net investment income	1,644		421		765		315		143
Asset management fees, commissions and other income	852		164		592		87		9

Total revenues	5,696		2,028		1,508		2,018		142

Benefits and Expenses (1):
Insurance and annuity benefits	2,519		1,029		272		1,200		18
Interest credited to policyholders’ account balances	626		183		397		55		(9	)
Interest expense	134		25		25		6		78
Deferral of acquisition costs	(496	)	(234	)	(16	)	(261	)	15
Amortization of acquisition costs	232		126		14		104		(12	)
General and administrative expenses	1,860		633		666		568		(7	)

Total benefits and expenses	4,875		1,762		1,358		1,672		83

Adjusted operating income before income taxes	821		266		150		346		59

(1)

Page 6


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION

(in millions)


	Six Months Ended June 30, 2006
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1) :
Premiums	5,146		1,987		122		3,050		(13	)
Policy charges and fee income	1,329		1,102		91		146		(10	)
Net investment income	3,666		862		1,774		673		357
Asset management fees, commissions and other income	2,020		341		1,393		310		(24	)

Total revenues	12,161		4,292		3,380		4,179		310

Benefits and Expenses (1):
Insurance and annuity benefits	5,168		2,214		504		2,427		23
Interest credited to policyholders’ account balances	1,329		361		881		118		(31	)
Interest expense	424		58		108		7		251
Deferral of acquisition costs	(996	)	(484	)	(44	)	(513	)	45
Amortization of acquisition costs	504		273		30		231		(30	)
General and administrative expenses	3,828		1,325		1,345		1,169		(11	)

Total benefits and expenses	10,257		3,747		2,824		3,439		247

Adjusted operating income before income taxes	1,904		545		556		740		63


	Six Months Ended June 30, 2005
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division		Corporate and Other Operations
Revenues (1):
Premiums	5,104		1,873		144		3,098		(11	)
Policy charges and fee income	1,232		1,009		94		137		(8	)
Net investment income	3,269		854		1,535		620		260
Asset management fees, commissions and other income	1,700		300		1,208		207		(15	)

Total revenues	11,305		4,036		2,981		4,062		226

Benefits and Expenses (1):
Insurance and annuity benefits	5,055		2,081		487		2,453		34
Interest credited to policyholders’ account balances	1,231		360		781		103		(13	)
Interest expense	245		50		47		12		136
Deferral of acquisition costs	(918	)	(399	)	(33	)	(518	)	32
Amortization of acquisition costs	467		253		28		211		(25	)
General and administrative expenses	3,518		1,170		1,217		1,145		(14	)

Total benefits and expenses	9,598		3,515		2,527		3,406		150

Adjusted operating income before income taxes	1,707		521		454		656		76

(1)

Page 7


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION

(in millions)


	As of June 30, 2006
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	164,636		33,183		67,375		51,312	12,766
Deferred policy acquisition costs	9,239		4,986		149		4,254	(150	)
Other assets	29,011		5,507		9,173		8,236	6,095
Separate account assets	166,735		83,610		84,267		107	(1,249	)

Total assets	369,621		127,286		160,964		63,909	17,462

Liabilities:
Future policy benefits	55,520		7,363		14,049		33,477	631
Policyholders’ account balances	74,122		21,133		38,941		15,443	(1,395	)
Debt	17,243		2,131		2,500		1,130	11,482
Other liabilities	35,577		6,884		15,357		8,236	5,100
Separate account liabilities	166,735		83,610		84,267		107	(1,249	)

Total liabilities	349,197		121,121		155,114		58,393	14,569

Attributed Equity:
Accumulated other comprehensive income (loss)	(180	)	(47	)	(114	)	91	(110	)
Other attributed equity	20,604		6,212		5,964		5,425	3,003

Total attributed equity	20,424		6,165		5,850		5,516	2,893

Total liabilities and attributed equity	369,621		127,286		160,964		63,909	17,462


	As of December 31, 2005
	Total Financial Services Businesses		Insurance Division		Investment Division		International Insurance & Investments Division	Corporate and Other Operations
Assets:
Total investments	153,905		31,117		60,941		47,930	13,917
Deferred policy acquisition costs	8,357		4,613		119		3,761	(136	)
Other assets	25,468		3,531		8,524		7,343	6,070
Separate account assets	157,561		77,518		81,204		67	(1,228	)

Total assets	345,291		116,779		150,788		59,101	18,623

Liabilities:
Future policy benefits	51,926		7,129		13,339		30,800	658
Policyholders’ account balances	69,924		19,204		37,901		13,893	(1,074	)
Debt	15,967		1,950		1,623		1,032	11,362
Other liabilities	28,259		4,949		10,707		7,672	4,931
Separate account liabilities	157,561		77,518		81,204		67	(1,228	)

Total liabilities	323,637		110,750		144,774		53,464	14,649

Attributed Equity:
Accumulated other comprehensive income	1,108		293		65		737	13
Other attributed equity	20,546		5,736		5,949		4,900	3,961

Total attributed equity	21,654		6,029		6,014		5,637	3,974

Total liabilities and attributed equity	345,291		116,779		150,788		59,101	18,623

Page 8


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

SHORT-TERM AND LONG-TERM DEBT

(in millions)


	As of June 30, 2006					As of December 31, 2005
	Short-term Debt	Long-term Debt	Total Debt			Short-term Debt	Long-term Debt	Total Debt
Financial Services Businesses
*Borrowings by use of proceeds:*
Capital Debt	5	4,363	4,368			353	3,846	4,199
Investment related	5,574	3,046	8,620			5,442	2,449	7,891
Securities business related	3,020	—	3,020			2,758	107	2,865
Specified other businesses	1,122	57	1,179			893	63	956
Limited recourse and non-recourse borrowing	2	54	56			1	55	56

Total debt - Financial Services Businesses	9,723	7,520	17,243			9,447	6,520	15,967

Ratio of long-term and short-term capital debt to capitalization			17.6	%				17.2	%

Closed Block Business
Investment related	1,738	—	1,738			1,667	—	1,667
Limited recourse and non-recourse borrowing	—	1,750	1,750			—	1,750	1,750

Total debt	1,738	1,750	3,488			1,667	1,750	3,417


	As of June 30, 2006					As of December 31, 2005
	Prudential Financial, Inc.	The Prudential Insurance Co. of America (1)(2)	Other Affiliates		Total	Prudential Financial, Inc.	The Prudential Insurance Co. of America (1)(2)	Other Affiliates		Total
Financial Services Businesses
*Borrowings by sources:*
Capital Debt	3,070	1,298	—		4,368	2,902	1,297	—		4,199
Investment related	4,725	3,895	—		8,620	4,173	3,718	—		7,891
Securities business related	868	1,344	808		3,020	1,117	1,173	575		2,865
Specified other businesses	88	876	215		1,179	116	692	148		956
Limited recourse and non-recourse borrowing	—	—	56		56	—	—	56		56

Total debt - Financial Services Businesses	8,751	7,413	1,079		17,243	8,308	6,880	779		15,967

(1)	Includes Prudential Funding, LLC.

(2)	Capital debt at Prudential Insurance Co. of America includes $693 million of Surplus Notes for June 30, 2006 and December 31, 2005, respectively.

Page 9


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

COMBINED STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


Year-to-date				% Change			2005						2006
2006		2005		% Change			2Q		3Q		4Q		1Q		2Q
						Revenues (1):
1,987		1,873		6	%	Premiums	938		912		943		982		1,005
1,102		1,009		9	%	Policy charges and fee income	505		559		530		543		559
862		854		1	%	Net investment income	421		429		428		421		441
341		300		14	%	Asset management fees, commissions and other income	164		181		161		175		166

4,292		4,036		6	%	Total revenues	2,028		2,081		2,062		2,121		2,171

						Benefits and Expenses (1):
2,214		2,081		6	%	Insurance and annuity benefits	1,029		938		994		1,070		1,144
361		360		0	%	Interest credited to policyholders’ account balances	183		180		175		180		181
58		50		16	%	Interest expense	25		31		30		30		28
(484	)	(399	)	-21	%	Deferral of acquisition costs	(234	)	(202	)	(196	)	(256	)	(228	)
273		253		8	%	Amortization of acquisition costs	126		180		112		131		142
1,325		1,170		13	%	General and administrative expenses	633		613		582		668		657

3,747		3,515		7	%	Total benefits and expenses	1,762		1,740		1,697		1,823		1,924

545		521		5	%	Adjusted operating income before income taxes	266		341		365		298		247

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

Page 10


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Quarter Ended June 30, 2006
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life		Individual Annuities
Revenues (1):
Premiums	1,005		119		886		103		16
Policy charges and fee income	559		495		64		270		225
Net investment income	441		287		154		137		150
Asset management fees, commissions and other income	166		153		13		75		78

Total revenues	2,171		1,054		1,117		585		469

Benefits and Expenses (1):
Insurance and annuity benefits	1,144		250		894		199		51
Interest credited to policyholders’ account balances	181		133		48		50		83
Interest expense	28		28		—		18		10
Deferral of acquisition costs	(228	)	(216	)	(12	)	(83	)	(133	)
Amortization of acquisition costs	142		142		—		91		51
General and administrative expenses (2)	657		499		158		214		285

Total benefits and expenses	1,924		836		1,088		489		347

Adjusted operating income before income taxes	247		218		29		96		122


	Quarter Ended June 30, 2005
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life		Individual Annuities
Revenues (1):
Premiums	938		105		833		93		12
Policy charges and fee income	505		436		69		259		177
Net investment income	421		273		148		119		154
Asset management fees, commissions and other income	164		154		10		77		77

Total revenues	2,028		968		1,060		548		420

Benefits and Expenses (1):
Insurance and annuity benefits	1,029		211		818		160		51
Interest credited to policyholders’ account balances	183		131		52		44		87
Interest expense	25		21		4		15		6
Deferral of acquisition costs	(234	)	(196	)	(38	)	(79	)	(117	)
Amortization of acquisition costs	126		125		1		70		55
General and administrative expenses (2)	633		456		177		219		237

Total benefits and expenses	1,762		748		1,014		429		319

Adjusted operating income before income taxes	266		220		46		119		101

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

(2)

General and administrative expenses for Individual Annuities include $15 million for the quarter ended June 30, 2006 and $8 million for the quarter ended June 30, 2005 for the amortization, net of interest, of value of business acquired (VOBA) associated with the American Skandia and Allstate acquisitions.

Page 11


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

COMBINING STATEMENTS OF OPERATIONS - INSURANCE DIVISION

(in millions)


	Six Months Ended June 30, 2006
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life		Individual Annuities
Revenues (1):
Premiums	1,987		234		1,753		203		31
Policy charges and fee income	1,102		961		141		536		425
Net investment income	862		559		303		264		295
Asset management fees, commissions and other income	341		312		29		141		171

Total revenues	4,292		2,066		2,226		1,144		922

Benefits and Expenses (1):
Insurance and annuity benefits	2,214		460		1,754		360		100
Interest credited to policyholders’ account balances	361		264		97		98		166
Interest expense	58		55		3		35		20
Deferral of acquisition costs	(484	)	(415	)	(69	)	(163	)	(252	)
Amortization of acquisition costs	273		273		—		165		108
General and administrative expenses (2)	1,325		960		365		420		540

Total benefits and expenses	3,747		1,597		2,150		915		682

Adjusted operating income before income taxes	545		469		76		229		240


	Six Months Ended June 30, 2005
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life and Annuities
	Total Insurance Division		Individual Life and Annuities		Group Insurance		Individual Life		Individual Annuities
Revenues (1):
Premiums	1,873		222		1,651		185		37
Policy charges and fee income	1,009		866		143		520		346
Net investment income	854		555		299		244		311
Asset management fees, commissions and other income	300		281		19		131		150

Total revenues	4,036		1,924		2,112		1,080		844

Benefits and Expenses (1):
Insurance and annuity benefits	2,081		436		1,645		323		113
Interest credited to policyholders’ account balances	360		257		103		86		171
Interest expense	50		41		9		30		11
Deferral of acquisition costs	(399	)	(353	)	(46	)	(153	)	(200	)
Amortization of acquisition costs	253		251		2		142		109
General and administrative expenses (2)	1,170		855		315		416		439

Total benefits and expenses	3,515		1,487		2,028		844		643

Adjusted operating income before income taxes	521		437		84		236		201

(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 $26 million for the six months ended June 30, 2006 and $16 million for the six months ended June 30, 2005 for the amortization, net of interest, of value of business acquired (VOBA) associated with the American Skandia and Allstate acquisitions.

Page 12


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INSURANCE DIVISION - INDIVIDUAL ANNUITIES SALES RESULTS, ACCOUNT VALUES AND MINIMUM GUARANTEES

(in millions)


Year-to-date					2005						2006
2006		2005			2Q		3Q		4Q		1Q		2Q
				SALES AND ACCOUNT VALUES:

				Variable Annuities:
50,778		47,418		Beginning total account value	46,386		47,402		49,484		50,778		53,181
4,629		3,212		Sales	1,779		1,930		1,964		2,129		2,500
(3,342	)	(2,858	)	Surrenders and withdrawals	(1,470	)	(1,397	)	(1,436	)	(1,585	)	(1,757	)

1,287		354		Net sales	309		533		528		544		743
(410	)	(341	)	Benefit payments	(170	)	(179	)	(158	)	(185	)	(225	)

877		13		Net flows	139		354		370		359		518
1,228		289		Change in market value, interest credited, and other	1,037		1,904		1,106		2,228		(1,000	)
(388	)	(318	)	Policy charges	(160	)	(176	)	(182	)	(184	)	(204	)
16,312		—		Acquisition	—		—		—		—		16,312

68,807		47,402		Ending total account value	47,402		49,484		50,778		53,181		68,807

				Fixed Annuities:
3,991		3,879		Beginning total account value	3,879		4,064		4,033		3,991		3,941
60		295		Sales	243		39		27		28		32
(161	)	(109	)	Surrenders and withdrawals	(53	)	(56	)	(66	)	(69	)	(92	)

(101	)	186		Net sales (redemptions)	190		(17	)	(39	)	(41	)	(60	)
(85	)	(84	)	Benefit payments	(43	)	(35	)	(41	)	(43	)	(42	)

(186	)	102		Net flows	147		(52	)	(80	)	(84	)	(102	)
68		86		Interest credited and other	40		22		39		35		33
(2	)	(3	)	Policy charges	(2	)	(1	)	(1	)	(1	)	(1	)

3,871		4,064		Ending total account value	4,064		4,033		3,991		3,941		3,871

				SALES BY DISTRIBUTION CHANNEL:

				Variable and Fixed Annuities (1):
886		730		Insurance Agents	382		373		391		405		481
460		217		Wirehouses	123		149		176		194		266
3,343		2,560		Independent Financial Planners (2)	1,517		1,447		1,424		1,558		1,785

4,689		3,507		Total	2,022		1,969		1,991		2,157		2,532

				VARIABLE ANNUITY MINIMUM DEATH BENEFIT GUARANTEES (3):

				Return of net deposits:
				Account value	26,224		27,646		28,290		29,988		32,897
				Net amount at risk	2,346		2,085		1,974		1,751		1,870
				Minimum return, anniversary contract value, or maximum contract value:
				Account value	15,814		16,528		17,022		17,755		30,594
				Net amount at risk	2,183		1,918		1,809		1,600		3,378

				Variable Annuity Account Values with Living Benefit Features (3):
				Guaranteed minimum accumulation benefits	6,368		6,823		7,162		7,738		9,231
				Guaranteed minimum withdrawal benefits	700		765		815		885		1,678
				Guaranteed minimum income benefits	2,756		2,941		3,052		3,203		7,047
				Guaranteed minimum withdrawal & income benefits	869		1,870		2,951		4,155		5,304

				Total	10,693		12,399		13,980		15,981		23,260

(1)	Amounts represent gross sales.

(2)	Including bank distribution.

(3)	At end of period.

Page 13


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INSURANCE DIVISION - INDIVIDUAL LIFE SALES, ACCOUNT VALUE ACTIVITY, AND FACE AMOUNT IN FORCE

(in millions)


Year-to-date					2005						2006
2006		2005			2Q		3Q		4Q		1Q		2Q
				SALES:

				Excluding corporate-owned life insurance:
45		37		Variable life	18		19		27		21		24
83		104		Universal life	53		54		56		40		43
65		59		Term life	30		30		33		31		34

193		200		Total excluding corporate-owned life insurance	101		103		116		92		101
5		2		Corporate-owned life insurance	1		3		2		1		4

198		202		Total	102		106		118		93		105

				SALES BY DISTRIBUTION CHANNEL:

				Excluding corporate-owned life insurance:
90		114		Prudential Agents	54		48		50		45		45
103		86		Third party distribution	47		55		66		47		56
5		2		Corporate-owned life insurance	1		3		2		1		4

198		202		Total	102		106		118		93		105

				ACCOUNT VALUE ACTIVITY:

				*Policyholders’ Account Balances (1):*
5,694		5,284		Beginning balance	5,424		5,532		5,619		5,694		5,802
639		632		Premiums and deposits	343		287		289		307		332
(520	)	(387	)	Surrenders and withdrawals	(214	)	(212	)	(216	)	(242	)	(278	)

119		245		Net sales	129		75		73		65		54
(69	)	(58	)	Benefit payments	(27	)	(29	)	(39	)	(37	)	(32	)

50		187		Net flows	102		46		34		28		22
143		67		Interest credited and other	11		42		45		83		60
121		89		Net transfers from separate account	44		50		49		55		66
(117	)	(95	)	Policy charges	(49	)	(51	)	(53	)	(58	)	(59	)

5,891		5,532		Ending balance	5,532		5,619		5,694		5,802		5,891

				*Separate Account Liabilities:*
16,170		15,180		Beginning balance	14,912		15,207		15,808		16,170		16,682
633		641		Premiums and deposits	331		308		407		301		332
(375	)	(298	)	Surrenders and withdrawals	(157	)	(206	)	(149	)	(177	)	(198	)

258		343		Net sales	174		102		258		124		134
(18	)	(9	)	Benefit payments	1		(4	)	(5	)	(9	)	(9	)

240		334		Net flows	175		98		253		115		125
425		183		Change in market value, interest credited and other	364		756		359		653		(228	)
(121	)	(89	)	Net transfers to general account	(44	)	(50	)	(49	)	(55	)	(66	)
(401	)	(401	)	Policy charges	(200	)	(203	)	(201	)	(201	)	(200	)

16,313		15,207		Ending balance	15,207		15,808		16,170		16,682		16,313

				FACE AMOUNT IN FORCE (2):

				Variable life	144,147		143,186		142,408		141,962		140,629
				Universal life	16,854		17,862		18,835		19,639		20,318
				Term life	181,216		190,913		201,139		210,589		221,072

				Total	342,217		351,961		362,382		372,190		382,019

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

(2)	At end of period; before reinsurance ceded.

Page 14


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INSURANCE DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY

(in millions)


Year-to-date				2005						2006
2006	2005			2Q		3Q		4Q		1Q		2Q
			INDIVIDUAL ANNUITIES:

			Account Values in General Account (1):
9,231	9,613		Beginning balance	9,662		9,782		9,437		9,231		8,850
170	493		Premiums and deposits	308		87		69		74		96
(586)	(483	)	Surrenders and withdrawals	(244	)	(202	)	(250	)	(273	)	(313	)

(416)	10		Net sales (redemptions)	64		(115	)	(181	)	(199	)	(217	)
(186)	(164	)	Benefit payments	(82	)	(67	)	(72	)	(94	)	(92	)

(602)	(154	)	Net flows	(18	)	(182	)	(253	)	(293	)	(309	)
175	182		Interest credited and other	92		91		88		86		89
366	145		Net transfers (to) from separate account	48		(252	)	(39	)	(173	)	539
(2)	(4	)	Policy charges	(2	)	(2	)	(2	)	(1	)	(1	)
1,554	—		Acquisition	—		—		—		—		1,554

10,722	9,782		Ending balance	9,782		9,437		9,231		8,850		10,722

			Account Values in Separate Account:
45,538	41,684		Beginning balance	40,602		41,684		44,080		45,538		48,272
4,519	3,014		Premiums and deposits	1,714		1,882		1,922		2,083		2,436
(2,917)	(2,485	)	Surrenders and withdrawals	(1,279	)	(1,251	)	(1,252	)	(1,380	)	(1,537	)

1,602	529		Net sales	435		631		670		703		899
(309)	(261	)	Benefit payments	(131	)	(146	)	(127	)	(134	)	(175	)

1,293	268		Net flows	304		485		543		569		724
1,121	194		Change in market value, interest credited and other	986		1,834		1,057		2,177		(1,056	)
(366)	(145	)	Net transfers (to) from general account	(48	)	252		39		173		(539	)
(388)	(317	)	Policy charges	(160	)	(175	)	(181	)	(185	)	(203	)
14,758	—		Acquisition	—		—		—		—		14,758

61,956	41,684		Ending balance	41,684		44,080		45,538		48,272		61,956

(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.

Page 15


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INSURANCE DIVISION - DEFERRED POLICY ACQUISITION COSTS

(in millions)


Year-to-date					2005						2006
2006		2005			2Q		3Q		4Q		1Q		2Q
				INDIVIDUAL LIFE INSURANCE:
3,187		3,151		Beginning balance	3,210		3,162		3,158		3,187		3,253
163		153		Capitalization	79		79		82		80		83
(165	)	(142	)	Amortization - operating results	(70	)	(152	)	(75	)	(74	)	(91	)
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
92		—		Impact of unrealized (gains) or losses on AFS securities	(57	)	69		22		60		32

3,277		3,162		Ending balance	3,162		3,158		3,187		3,253		3,277

				INDIVIDUAL ANNUITIES:
1,256		907		Beginning balance	1,012		1,049		1,155		1,256		1,337
252		200		Capitalization	117		108		113		119		133
(108	)	(109	)	Amortization - operating results	(55	)	(27	)	(37	)	(57	)	(51	)
8		1		Amortization - realized investment gains and losses	2		(4	)	2		—		8
62		50		Impact of unrealized (gains) or losses on AFS securities	(27	)	29		23		19		43

1,470		1,049		Ending balance	1,049		1,155		1,256		1,337		1,470

				GROUP INSURANCE:
170		111		Beginning balance	118		155		169		170		227
69		46		Capitalization	38		15		1		57		12
—		(2	)	Amortization - operating results	(1	)	(1	)	—		—		—
—		—		Amortization - realized investment gains and losses	—		—		—		—		—
—		—		Impact of unrealized losses on AFS securities	—		—		—		—		—

239		155		Ending balance	155		169		170		227		239

				TOTAL INSURANCE DIVISION:
4,613		4,169		Beginning balance	4,340		4,366		4,482		4,613		4,817
484		399		Capitalization	234		202		196		256		228
(273	)	(253	)	Amortization - operating results	(126	)	(180	)	(112	)	(131	)	(142	)
8		1		Amortization - realized investment gains and losses	2		(4	)	2		—		8
154		50		Impact of unrealized (gains) or losses on AFS securities	(84	)	98		45		79		75

4,986		4,366		Ending balance	4,366		4,482		4,613		4,817		4,986

Page 16


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE

(dollar amounts in millions)


Year-to-date					2005						2006
2006		2005			2Q		3Q		4Q		1Q		2Q
				Individual Life Insurance:

				Policy Surrender Experience:

403		321		Cash value of surrenders	166		214		163		191		212

4.1	%	3.3	%	Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances	3.4	%	4.3	%	3.2	%	3.7	%	3.9	%

				Death benefits per $1,000 of in force (1):
3.24		2.98		Variable and universal life	2.88		2.95		3.04		2.87		3.59
1.22		1.33		Term life	1.32		1.27		0.89		1.09		1.64
2.75		2.69		Total, Individual Life Insurance	2.67		2.63		2.63		2.50		3.20

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

Page 17


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE

(dollar amounts in millions)


Year-to-date					2005						2006
2006		2005			2Q		3Q		4Q		1Q		2Q
				GROUP INSURANCE NEW ANNUALIZED PREMIUMS:
231		304		Group life	30		32		34		206		25
92		122		Group disability (1)	46		15		17		74		18

323		426		Total	76		47		51		280		43

				Future Policy Benefits (2):
				Group life	1,837		1,803		2,004		1,967		1,980
				Group disability (1)	375		395		413		474		496

				Total	2,212		2,198		2,417		2,441		2,476

				Policyholders’ Account Balances (2):
				Group life	4,573		4,555		4,916		4,935		5,178
				Group disability (1)	85		90		98		95		101

				Total	4,658		4,645		5,014		5,030		5,279

				Separate Account Liabilities (2):
				Group life	15,954		15,983		15,811		21,156		20,035
				Group disability (1)	—		—		—		—		—

				Total	15,954		15,983		15,811		21,156		20,035

				Group Life Insurance:
1,745		1,377		Gross premiums, policy charges and fee income (3)	683		668		964		791		954
1,507		1,421		Earned premiums, policy charges and fee income	707		694		707		755		752
93.7	%	89.9	%	Benefits ratio	89.7	%	89.5	%	86.4	%	92.1	%	95.4	%
8.5	%	9.3	%	Administrative operating expense ratio	9.7	%	10.3	%	7.3	%	9.4	%	7.9	%
				Persistency ratio	96.4	%	95.6	%	95.2	%	96.5	%	95.9	%

				Group Disability Insurance (1):
402		398		Gross premiums, policy charges and fee income (3)	210		193		190		199		203
387		373		Earned premiums, policy charges and fee income	195		184		182		189		198
88.4	%	98.7	%	Benefits ratio	94.9	%	91.3	%	92.9	%	87.3	%	89.4	%
21.6	%	20.6	%	Administrative operating expense ratio	19.1	%	20.7	%	21.6	%	21.6	%	21.7	%
				Persistency ratio	90.2	%	87.1	%	85.4	%	94.2	%	92.2	%

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

(2)	As of end of period.

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

Page 18


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

COMBINED STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


Year-to-date				% Change			2005						2006
2006		2005		% Change			2Q		3Q		4Q		1Q		2Q
						Revenues (1):
122		144		-15	%	Premiums	103		106		70		92		30
91		94		-3	%	Policy charges and fee income	48		46		48		48		43
1,774		1,535		16	%	Net investment income	765		810		820		853		921
1,393		1,208		15	%	Asset management fees, commissions and other income	592		648		645		741		652

3,380		2,981		13	%	Total revenues	1,508		1,610		1,583		1,734		1,646

						Benefits and Expenses (1):
504		487		3	%	Insurance and annuity benefits	272		296		266		269		235
881		781		13	%	Interest credited to policyholders’ account balances	397		431		421		429		452
108		47		130	%	Interest expense	25		23		45		46		62
(44	)	(33	)	-33	%	Deferral of acquisition costs	(16	)	(13	)	(15	)	(22	)	(22	)
30		28		7	%	Amortization of acquisition costs	14		13		13		13		17
1,345		1,217		11	%	General and administrative expenses	666		603		857		759		586

2,824		2,527		12	%	Total benefits and expenses	1,358		1,353		1,587		1,494		1,330

556		454		22	%	Adjusted operating income before income taxes	150		257		(4	)	240		316

(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 19


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

COMBINING STATEMENTS OF OPERATIONS - INVESTMENT DIVISION

(in millions)


	Six Months Ended June 30, 2006								Quarter Ended June 30, 2006
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	122		—		—		122		30		—		—		30
Policy charges and fee income	91		—		—		91		43		—		—		43
Net investment income	1,774		93		18		1,663		921		51		9		861
Asset management fees, commissions and other income	1,393		878		288		227		652		418		119		115

Total revenues	3,380		971		306		2,103		1,646		469		128		1,049

Benefits and Expenses (1):
Insurance and annuity benefits	504		—		—		504		235		—		—		235
Interest credited to policyholders’ account balances	881		—		—		881		452		—		—		452
Interest expense	108		15		—		93		62		9		—		53
Deferral of acquisition costs	(44	)	(11	)	—		(33	)	(22	)	(6	)	—		(16	)
Amortization of acquisition costs	30		15		—		15		17		8		—		9
General and administrative expenses	1,345		646		335		364		586		321		91		174

Total benefits and expenses	2,824		665		335		1,824		1,330		332		91		907

Adjusted operating income before income taxes	556		306		(29	)	279		316		137		37		142


	Six Months Ended June 30, 2005								Quarter Ended June 30, 2005
	Total Investment Division		Asset Management		Financial Advisory		Retirement		Total Investment Division		Asset Management		Financial Advisory		Retirement
Revenues (1):
Premiums	144		—		—		144		103		—		—		103
Policy charges and fee income	94		—		—		94		48		—		—		48
Net investment income	1,535		42		4		1,489		765		15		3		747
Asset management fees, commissions and other income	1,208		777		203		228		592		386		92		114

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

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

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

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

(1)

Page 20


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INVESTMENT DIVISION - SUPPLEMENTARY REVENUE INFORMATION FOR ASSET MANAGEMENT SEGMENT

(in millions)


Year-to-date		% Change			2005			2006
2006	2005	% Change			2Q	3Q	4Q	1Q	2Q
				Asset Management Segment:

				Analysis of revenues by source:
				Investment Management and Advisory Services:
130	115	13	%	Retail customers	57	60	69	65	65
349	283	23	%	Institutional customers	149	151	159	191	158
142	130	9	%	General account	65	63	64	71	71

621	528	18	%	Subtotal	271	274	292	327	294
350	291	20	%	Mutual Fund, managed account and other revenues (1)	130	167	144	175	175

971	819	19	%	Total Asset Management segment revenues	401	441	436	502	469

				Analysis of asset management fees, commissions and other income by type:
				Investment Management and Advisory Services:
564	473	19	%	Asset-based fees	247	249	253	291	273
38	40	-5	%	Transaction-based and other revenues	19	14	28	29	9

602	513	17	%	Subtotal	266	263	281	320	282
276	264	5	%	Mutual Fund, managed account and other revenues (1)	120	145	125	140	136

878	777	13	%	Total	386	408	406	460	418

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

Page 21


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

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

(in billions)


	June 30, 2006
	Equity	Fixed Income	Real Estate	Total
Retail customers	53.5	20.4	1.2	75.1
Institutional customers	49.7	68.9	19.9	138.5
General account	3.6	155.0	1.1	159.7

Total	106.8	244.3	22.2	373.3


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

Total	92.0	238.2	18.4	348.6


Year-to-date					2005						2006
2006		2005			2Q		3Q		4Q		1Q		2Q
				Institutional Assets Under Management:

				Assets gathered by Investment Management & Advisory Services sales force:
101.3		84.8		Beginning assets under management	85.7		91.1		95.0		101.3		106.7
12.6		8.5		Additions to managed portfolio (1)	5.0		7.1		7.3		7.3		5.3
(8.4	)	(4.3	)	Withdrawals	(2.1	)	(5.1	)	(3.1	)	(4.0	)	(4.4	)
1.5		2.1		Change in market value	2.7		2.2		2.0		1.9		(0.4	)
0.1		—		Net money market flows	(0.2	)	(0.3	)	0.1		0.2		(0.1	)

107.1		91.1		Ending assets under management	91.1		95.0		101.3		106.7		107.1
31.4		34.2		Other institutional assets under management	34.2		34.8		33.4		32.0		31.4

138.5		125.3		Total assets managed for institutional customers at end of period	125.3		129.8		134.7		138.7		138.5

(1)

Additions to managed portfolio include $1.8 billion for the six months ended June 30, 2006, $.4 billion for the quarter ended June 30, 2006, $1.4 billion for the quarter ended March 31, 2006, $.8 billion for the quarter ended December 31, 2005 and $1.2 billion for the year ended December 31, 2005 for assets transferred from the Retirement segment.

Page 22


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INVESTMENT DIVISION - MUTUAL FUNDS AND WRAP-FEE PRODUCTS

(in millions)


Year-to-date					2005						2006
2006		2005			2Q		3Q		4Q		1Q		2Q
				Mutual Funds Assets Under Management:
31,336		30,686		Beginning total mutual funds assets	29,894		30,446		31,050		31,336		32,577
3,589		2,162		Sales (other than money market)	1,288		1,023		1,387		1,380		2,209
(3,288	)	(3,174	)	Redemptions (other than money market)	(1,582	)	(1,893	)	(1,618	)	(1,614	)	(1,674	)
684		674		Reinvestment of distributions and change in market value	1,174		1,691		445		1,199		(515	)
1,131		98		Net money market sales	(328	)	(217	)	72		276		855

33,452		30,446		Ending total mutual funds assets	30,446		31,050		31,336		32,577		33,452

301		(1,012	)	Net mutual funds sales (redemptions) other than money market	(294	)	(870	)	(231	)	(234	)	535

				Wrap-fee Products Assets Under Administration:
55,191		41,254		Beginning total wrap-fee product assets	43,054		46,621		51,752		55,191		60,826
13,833		11,295		Sales	5,623		5,418		5,492		7,207		6,626
(8,128	)	(5,572	)	Redemptions	(2,735	)	(2,608	)	(3,177	)	(4,331	)	(3,797	)
1,573		(356	)	Reinvestment of distributions and change in market value	679		2,321		1,124		2,759		(1,186	)

62,469		46,621		Ending total wrap-fee product assets	46,621		51,752		55,191		60,826		62,469

5,705		5,723		Net wrap-fee product sales	2,888		2,810		2,315		2,876		2,829

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

				Mutual funds, excluding wrap-fee products (1):
218		197		Prudential Agents	93		82		83		105		113
3,362		1,805		Third party distributors	1,041		938		1,299		1,271		2,091
9		160		Other	154		3		5		4		5

3,589		2,162		Total	1,288		1,023		1,387		1,380		2,209

				Wrap-fee products:
394		349		Prudential Agents	174		192		167		196		198
13,439		10,946		Third party distributors (2)	5,449		5,226		5,325		7,011		6,428

13,833		11,295		Total	5,623		5,418		5,492		7,207		6,626

(1)	Other than money market.

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

Page 23


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INVESTMENT DIVISION - SUPPLEMENTARY INFORMATION FOR FINANCIAL ADVISORY SEGMENT

(dollar amounts in millions unless otherwise noted)


Year-to-date					2005						2006
2006		2005			2Q		3Q		4Q		1Q		2Q
				Information pertaining to Wachovia Securities Financial Holdings, LLC:

				Revenues:
148		117		Net investment income	61		65		70		72		76
934		939		Commissions	457		464		449		483		451
1,037		898		Fees	455		459		485		503		534
86		70		Other non-interest revenues	41		53		47		53		33

2,205		2,024		Total revenues	1,014		1,041		1,051		1,111		1,094
				Expenses:
1,859		1,756		Expenses before transition costs	885		881		892		933		926
—		65		Transition costs	37		—		—		—		—

1,859		1,821		Total expenses	922		881		892		933		926

346		203		Income before income taxes	92		160		159		178		168

131		77		Prudential Financial, Inc., 38% share of Wachovia Securities Financial Holdings, LLC	35		61		60		68		63
(2	)	(5	)	Purchase accounting and related adjustments	(2	)	(2	)	1		1		(3	)

129		72		Prudential Financial, Inc., equity income from Wachovia Securities Financial Holdings, LLC	33		59		61		69		60

				Recurring revenue as a percentage of total non-interest revenue (1)	47.6	%	47.7	%	48.2	%	48.4	%	49.0	%

				Total client assets ($ in billions) (2)	655.6		683.1		683.6		688.7		704.3

				Distribution representatives (2):
				Series 7 Financial Advisors	7,833		7,941		8,028		7,926		7,973
				Series 6 Financial Representatives	2,456		2,493		2,458		2,454		2,541

				Customer debit balances ($ in billions) (2)	5.7		5.6		5.8		5.4		5.1

(77	)	(86	)	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	(98	)	37		(206	)	(107	)	30

(1)	Calculated on a YTD annualized basis.

(2)	As of end of period.

Page 24


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INVESTMENT DIVISION - RETIREMENT SALES RESULTS AND ACCOUNT VALUES

(in millions)


Year-to-date					2005						2006
2006		2005			2Q		3Q		4Q		1Q		2Q
				RETIREMENT SALES AND ACCOUNT VALUES

				Full Service:

88,385		83,891		Beginning total account value	83,927		85,331		88,337		88,385		91,854
9,519		6,451		Sales	2,667		3,509		3,046		5,381		4,138
(8,883	)	(6,186	)	Withdrawals and benefits	(2,837	)	(3,202	)	(4,530	)	(5,471	)	(3,412	)
2,516		1,175		Change in market value, interest credited and interest income	1,574		2,699		1,532		3,559		(1,043	)

91,537		85,331		Ending total account value	85,331		88,337		88,385		91,854		91,537

636		265		Net sales (withdrawals)	(170	)	307		(1,484	)	(90	)	726

				Stable value account values included above	31,937		31,967		31,266		30,696		30,784

				Institutional Investment Products:

48,080		47,680		Beginning total account value	47,698		48,612		48,917		48,080		47,215
2,624		2,478		Sales	1,235		802		785		1,536		1,088
(3,881	)	(2,403	)	Withdrawals and benefits (1)	(1,222	)	(896	)	(2,234	)	(2,452	)	(1,429	)
605		1,446		Change in market value, interest credited and interest income	1,128		311		562		182		423
(515	)	(589	)	Other (2)	(227	)	88		50		(131	)	(384	)

46,913		48,612		Ending total account value	48,612		48,917		48,080		47,215		46,913

(1,257	)	75		Net sales (withdrawals)	13		(94	)	(1,449	)	(916	)	(341	)

(1)

Withdrawals and benefits include $1.8 billion for the six months ended June 30, 2006, $.4 billion for the quarter ended June 30, 2006, $1.4 billion for the quarter ended March 31, 2006, $.8 billion for the quarter ended December 31, 2005 and $1.2 billion for the year ended December 31, 2005 for assets transferred to the Asset Management segment.

(2)	Primarily represents changes in asset balances for externally managed accounts.

Page 25


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year-to-date				% Change			2005						2006
2006		2005		% Change			2Q		3Q		4Q		1Q		2Q
						Revenues (1):
3,050		3,098		-2	%	Premiums	1,550		1,562		1,438		1,533		1,517
146		137		7	%	Policy charges and fee income	66		67		60		76		70
673		620		9	%	Net investment income	315		333		371		330		343
310		207		50	%	Asset management fees, commissions and other income	87		114		151		160		150

4,179		4,062		3	%	Total revenues	2,018		2,076		2,020		2,099		2,080

						Benefits and Expenses (1):
2,427		2,453		-1	%	Insurance and annuity benefits	1,200		1,250		1,162		1,224		1,203
118		103		15	%	Interest credited to policyholders’ account balances	55		54		50		57		61
7		12		-42	%	Interest expense	6		7		3		3		4
(513	)	(518	)	1	%	Deferral of acquisition costs	(261	)	(243	)	(242	)	(256	)	(257	)
231		211		9	%	Amortization of acquisition costs	104		90		89		116		115
1,169		1,145		2	%	General and administrative expenses	568		535		581		573		596

3,439		3,406		1	%	Total benefits and expenses	1,672		1,693		1,643		1,717		1,722

740		656		13	%	Adjusted operating income before income taxes	346		383		377		382		358

(1)

Revenues exclude realized investment gains, net of losses and related charges and 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 26


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


	Six Months Ended June 30, 2006							Quarter Ended June 30, 2006
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	3,050		1,966		1,084		—	1,517		977		540		—
Policy charges and fee income	146		109		37		—	70		51		19		—
Net investment income	673		318		342		13	343		162		175		6
Asset management fees, commissions and other income	310		21		6		283	150		7		3		140

Total revenues	4,179		2,414		1,469		296	2,080		1,197		737		146

Benefits and Expenses (1):
Insurance and annuity benefits	2,427		1,513		914		—	1,203		744		459		—
Interest credited to policyholders’ account balances	118		54		64		—	61		27		34		—
Interest expense	7		6		—		1	4		3		—		1
Deferral of acquisition costs	(513	)	(370	)	(143	)	—	(257	)	(179	)	(78	)	—
Amortization of acquisition costs	231		184		47		—	115		93		22		—
General and administrative expenses	1,169		577		375		217	596		287		198		111

Total benefits and expenses	3,439		1,964		1,257		218	1,722		975		635		112

Adjusted operating income before income taxes	740		450		212		78	358		222		102		34


	Six Months Ended June 30, 2005							Quarter Ended June 30, 2005
	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments	Total International Insurance & Investments Division		International Insurance - Life Planner Operations		International Insurance - Gibraltar Life		International Investments
Revenues (1):
Premiums	3,098		1,875		1,223		—	1,550		911		639		—
Policy charges and fee income	137		99		38		—	66		46		20		—
Net investment income	620		284		326		10	315		140		170		5
Asset management fees, commissions and other income	207		(15	)	(2	)	224	87		(13	)	(1	)	101

Total revenues	4,062		2,243		1,585		234	2,018		1,084		828		106

Benefits and Expenses (1):
Insurance and annuity benefits	2,453		1,456		997		—	1,200		686		514		—
Interest credited to policyholders’ account balances	103		54		49		—	55		29		26		—
Interest expense	12		11		(1	)	2	6		5		—		1
Deferral of acquisition costs	(518	)	(385	)	(133	)	—	(261	)	(190	)	(71	)	—
Amortization of acquisition costs	211		152		59		—	104		76		28		—
General and administrative expenses	1,145		593		364		188	568		295		187		86

Total benefits and expenses	3,406		1,881		1,335		190	1,672		901		684		87

Adjusted operating income before income taxes	656		362		250		44	346		183		144		19

(1)

Page 27


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year-to-date					2005						2006
2006		2005			2Q		3Q		4Q		1Q		2Q
				Japanese Yen Basis Results:
				Revenues (1):
¥	190,904	¥	173,044	Japanese insurance operations excluding Gibraltar Life	¥	82,958	¥	85,595	¥	92,934	¥	98,534	¥	92,370
	169,037		167,763	Gibraltar Life		88,530		95,340		84,366		84,650		84,387

	359,941		340,807	Total revenues, Japan, yen basis		171,488		180,935		177,300		183,184		176,757

				Benefits and Expenses (1):
	152,181		138,625	Japanese insurance operations excluding Gibraltar Life		65,271		64,755		71,278		77,842		74,339
	145,707		140,502	Gibraltar Life		72,737		79,787		71,963		72,640		73,067

	297,888		279,127	Total benefits and expenses, Japan, yen basis		138,008		144,542		143,241		150,482		147,406

				Adjusted operating income (2):
	38,723		34,419	Japanese insurance operations excluding Gibraltar Life		17,687		20,840		21,656		20,692		18,031
	23,330		27,261	Gibraltar Life		15,793		15,553		12,403		12,010		11,320

¥	62,053	¥	61,680	Total adjusted operating income, Japan, yen basis	¥	33,480	¥	36,393	¥	34,059	¥	32,702	¥	29,351

				U.S. Dollar adjusted operating income (3):
$	368	$	313	Japanese insurance operations excluding Gibraltar Life	$	159	$	190	$	197	$	196	$	172
	212		250	Gibraltar Life		144		141		111		110		102

	580		563	Total adjusted operating income, Japan, U.S. dollar basis		303		331		308		306		274
	82		49	All other countries		24		27		32		32		50

$	662	$	612	Total adjusted operating income, International Insurance segment, U.S. dollar basis	$	327	$	358	$	340	$	338	$	324

(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 28


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION

(in millions)


Year-to-date			2005			2006
2006	2005		2Q	3Q	4Q	1Q	2Q
		INTERNATIONAL INSURANCE OPERATING DATA:

		Actual exchange rate basis (1):

		Net premiums, policy charges and fee income:
1,424	1,411	Japan, excluding Gibraltar Life	670	658	630	731	693
1,121	1,261	Gibraltar Life	659	681	564	562	559
651	563	All other countries	287	290	304	316	335

3,196	3,235	Total	1,616	1,629	1,498	1,609	1,587

		Annualized new business premiums:
251	350	Japan, excluding Gibraltar Life	179	117	109	138	113
207	167	Gibraltar Life	96	82	74	73	134
150	134	All other countries	68	64	82	78	72

608	651	Total	343	263	265	289	319

		Annualized new business premiums by distribution channel:
401	484	Life Planners	247	181	191	216	185
188	167	Gibraltar Life Advisors	96	82	74	73	115
19	—	Banks (2)	—	—	—	—	19

608	651	Total	343	263	265	289	319

		Constant exchange rate basis (3):

		Net premiums, policy charges and fee income:
1,499	1,362	Japan, excluding Gibraltar Life	655	664	670	778	721
1,183	1,206	Gibraltar Life	636	685	587	596	587
619	557	All other countries	284	292	308	304	315

3,301	3,125	Total	1,575	1,641	1,565	1,678	1,623

		Annualized new business premiums:
261	343	Japan, excluding Gibraltar Life	176	119	113	145	116
213	160	Gibraltar Life	92	82	77	76	137
143	134	All other countries	69	63	84	74	69

617	637	Total	337	264	274	295	322

		Annualized new business premiums by distribution channel:
404	477	Life Planners	245	182	197	219	185
194	160	Gibraltar Life Advisors	92	82	77	76	118
19	—	Banks (2)	—	—	—	—	19

617	637	Total	337	264	274	295	322

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

(2)	Substantially all bank channel distribution represents U.S. dollar denominated Gibraltar Life fixed annuities.

(3)	Translated based on average exchange rates for the year ended December 31, 2005.

Page 29


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION


	2005						2006
	2Q		3Q		4Q		1Q		2Q
Face amount of individual policies in force at end of period (in billions) (1)(2):
(Constant exchange rate basis)
Japan, excluding Gibraltar Life	188		191		194		198		200
Gibraltar Life	181		180		179		179		178
All other countries	85		86		88		90		92

Total	454		457		461		467		470

Number of individual policies in force at end of period (in thousands) (2):
Japan, excluding Gibraltar Life	1,901		1,927		1,956		1,996		2,023
Gibraltar Life	3,961		3,938		3,915		3,890		3,871
All other countries	1,036		1,064		1,098		1,137		1,171

Total	6,898		6,929		6,969		7,023		7,065

International insurance policy persistency:

Excluding Gibraltar Life:
13 months	93.1	%	93.3	%	93.0	%	92.8	%	93.0	%
25 months	86.2	%	86.6	%	87.1	%	87.1	%	87.4	%

Gibraltar Life:
13 months	94.3	%	94.2	%	94.2	%	94.3	%	94.2	%
25 months	85.8	%	86.4	%	87.3	%	87.7	%	88.0	%

Number of Life Planners at end of period:
Japan	2,603		2,752		2,753		2,855		2,847
All other countries (3)	2,861		2,874		2,874		2,857		2,879

Total life planners	5,464		5,626		5,627		5,712		5,726

Gibraltar Life Advisors	4,788		5,349		5,436		5,716		5,684

(1)	Translated based on exchange rates as of December 31, 2005.

(2)	Direct business only; policy count includes annuities.

(3)	Life Planner count for All other countries excludes Life Planners associated with discontinued Philippine operations for all periods presented.

Page 30


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2006							December 31, 2005
	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	125,864	36,086	89,778	58.1	%			122,992	35,885	87,107	58.3	%
Public, held to maturity, at amortized cost	3,236	—	3,236	2.1	%			3,022	—	3,022	2.0	%
Private, available for sale, at fair value	29,865	12,081	17,784	11.5	%			30,980	13,361	17,619	11.8	%
Private, held to maturity, at amortized cost	319	—	319	0.2	%			227	—	227	0.1	%
Trading account assets supporting insurance liabilities, at fair value	14,239	—	14,239	9.2	%			13,781	—	13,781	9.2	%
Other trading account assets, at fair value	117	—	117	0.1	%			124	—	124	0.1	%
Equity securities, available for sale, at fair value	6,176	3,389	2,787	1.8	%			5,840	3,216	2,624	1.8	%
Commercial loans	23,747	7,242	16,505	10.7	%			23,045	7,264	15,781	10.6	%
Policy loans	8,660	5,407	3,253	2.1	%			8,370	5,403	2,967	2.0	%
Other long-term investments (1)	4,958	828	4,130	2.7	%			4,698	973	3,725	2.5	%
Short-term investments	3,600	1,189	2,411	1.5	%			3,850	1,394	2,456	1.6	%

Subtotal (2)	220,781	66,222	154,559	100.0	%			216,929	67,496	149,433	100.0	%

Invested assets of other entities and operations (3)	10,077	—	10,077					4,472	—	4,472

Total investments	230,858	66,222	164,636					221,401	67,496	153,905


Fixed Maturities by Credit Quality (2):

	June 30, 2006							December 31, 2005
	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 (4) Rating Agency Equivalent
1 Aaa, Aa, A	74,285	1,014	1,058	74,241		79.9	%	68,042	2,256	298	70,000		77.7	%
2 Baa	13,820	405	349	13,876		15.0	%	15,407	746	138	16,015		17.8	%

Subtotal Investment Grade	88,105	1,419	1,407	88,117		94.9	%	83,449	3,002	436	86,015		95.5	%

3 Ba	3,085	65	85	3,065		3.3	%	2,711	124	43	2,792		3.1	%
4 B	1,572	57	51	1,578		1.7	%	1,109	71	20	1,160		1.3	%
5 C and lower	82	5	3	84		0.1	%	102	6	5	103		0.1	%
6 In or near default	35	7	2	40		0.0	%	28	10	1	37		0.0	%

Subtotal Below Investment Grade	4,774	134	141	4,767		5.1	%	3,950	211	69	4,092		4.5	%

Total	92,879	1,553	1,548	92,884		100.0	%	87,399	3,213	505	90,107		100.0	%

Private Fixed Maturities:
NAIC Rating (4) Rating Agency Equivalent
1 Aaa, Aa, A	5,934	166	95	6,005		33.2	%	5,596	269	27	5,838		32.7	%
2 Baa	9,619	310	194	9,735		53.8	%	9,437	522	63	9,896		55.5	%

Subtotal Investment Grade	15,553	476	289	15,740		87.0	%	15,033	791	90	15,734		88.2	%

3 Ba	1,248	52	18	1,282		7.1	%	1,105	44	7	1,142		6.4	%
4 B	593	23	7	609		3.3	%	507	33	5	535		3.0	%
5 C and lower	290	21	6	305		1.7	%	339	23	2	360		2.0	%
6 In or near default	155	7	4	158		0.9	%	70	8	2	76		0.4	%

Subtotal Below Investment Grade	2,286	103	35	2,354		13.0	%	2,021	108	16	2,113		11.8	%

Total	17,839	579	324	18,094		100.0	%	17,054	899	106	17,847		100.0	%

(1)

Other long-term investments consist of real estate and non-real estate related investments in joint ventures (other than our investments in operating joint ventures, including 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.

(2)

Excludes (i) assets of our securities brokerage, securities trading, banking operations and real estate and relocation services, (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.

(3)

Includes assets of our securities brokerage, securities trading, banking and asset management operations and real estate and relocation services. 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 operating joint ventures, including our investment in Wachovia Securities Financial Holdings, LLC is included in “Other assets”.

(4)

Reflects equivalent ratings for investments of international insurance operations that are not rated by United States insurance regulatory authorities. Includes, as of June 30, 2006 and December 31, 2005, respectively, 231 securities with amortized cost of $5,009 million (fair value $4,959 million) and 205 securities with amortized cost of $3,640 million (fair value, $3,689 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.

Page 31


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION

(in millions)


	June 30, 2006			December 31, 2005
	Amount	% of Total		Amount	% of Total
Japanese Insurance Operations:
Fixed maturities:
Public, available for sale, at fair value	31,995	68.6	%	30,757	69.6	%
Public, held to maturity, at amortized cost	3,236	6.9	%	3,022	6.8	%
Private, available for sale, at fair value	2,917	6.3	%	2,659	6.0	%
Private, held to maturity, at amortized cost	319	0.7	%	227	0.5	%
Trading account assets supporting insurance liabilities, at fair value	1,070	2.3	%	1,022	2.3	%
Other trading account assets, at fair value	29	0.1	%	26	0.1	%
Equity securities, available for sale, at fair value	2,223	4.8	%	2,021	4.6	%
Commercial loans	2,500	5.3	%	2,278	5.2	%
Policy loans	1,023	2.2	%	943	2.1	%
Other long-term investments (1)	931	2.0	%	941	2.1	%
Short-term investments	386	0.8	%	326	0.7	%

Total	46,629	100.0	%	44,222	100.0	%


	June 30, 2006			December 31, 2005
	Amount	% of Total		Amount	% of Total
Financial Services Businesses excluding Japanese Insurance Operations (2):
Fixed maturities:
Public, available for sale, at fair value	57,783	53.5	%	56,350	53.7	%
Public, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Private, available for sale, at fair value	14,867	13.8	%	14,960	14.2	%
Private, held to maturity, at amortized cost	—	0.0	%	—	0.0	%
Trading account assets supporting insurance liabilities, at fair value	13,169	12.2	%	12,759	12.1	%
Other trading account assets, at fair value	88	0.1	%	98	0.1	%
Equity securities, available for sale, at fair value	564	0.5	%	603	0.6	%
Commercial loans	14,005	13.0	%	13,503	12.8	%
Policy loans	2,230	2.1	%	2,024	1.9	%
Other long-term investments (1)	3,199	2.9	%	2,784	2.6	%
Short-term investments	2,025	1.9	%	2,130	2.0	%

Total	107,930	100.0	%	105,211	100.0	%

(1)

(2)

Page 32


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS

(in millions)


	Quarter Ended June 30
	2006						2005 (4)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount		Realized Gains / (Losses)		Yield (3)		Amount		Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities	4.81	%	1,318		(253	)	4.50	%	1,148		4
Equity securities	2.74	%	16		49		3.59	%	20		16
Commercial loans	6.20	%	189		2		7.59	%	204		121
Policy loans	4.79	%	38		—		4.79	%	35		—
Short-term investments and cash equivalents	4.97	%	78		—		2.78	%	47		(5	)
Other investments	7.40	%	76		(105	)	6.92	%	68		163

Gross investment income before investment expenses	5.00	%	1,715		(307	)	4.77	%	1,522		299
Investment expenses	-0.25	%	(164	)	—		-0.22	%	(115	)	—

Subtotal	4.75	%	1,551		(307	)	4.55	%	1,407		299

Investment results of other entities and operations (2)			319		17				245		12
Less, investment income relating to divested businesses			(5	)					(8	)

Total			1,865		(290	)			1,644		311


	Six Months Ended June 30
	2006						2005 (4)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (3)		Amount		Realized Gains / (Losses)		Yield (3)		Amount		Realized Gains / (Losses)
Financial Services Businesses (1):
Fixed maturities	4.79	%	2,565		(313	)	4.57	%	2,292		43
Equity securities	3.32	%	38		108		3.87	%	42		18
Commercial loans	6.19	%	369		(2	)	7.44	%	397		118
Policy loans	4.85	%	75		—		4.75	%	69		—
Short-term investments and cash equivalents	4.56	%	149		—		2.33	%	87		—
Other investments	8.81	%	175		(20	)	6.49	%	130		351

Gross investment income before investment expenses	5.02	%	3,371		(227	)	4.79	%	3,017		530
Investment expenses	-0.24	%	(308	)	—		-0.22	%	(216	)	—

Subtotal	4.78	%	3,063		(227	)	4.57	%	2,801		530

Investment results of other entities and operations (2)			614		53				484		51
Less, investment income relating to divested businesses			(11	)					(16	)

Total			3,666		(174	)			3,269		581

(1)

Excludes assets of our securities brokerage, securities trading, and banking operations, real estate and relocation services, commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue 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, real estate and relocation services, commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue 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 accrue 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 33


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2006						2005 (2)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount		Realized Gains / (Losses)		Yield (1)		Amount		Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities	2.50	%	236		(23	)	2.29	%	215		(27	)
Equity securities	2.53	%	12		38		2.60	%	11		11
Commercial loans	3.60	%	22		6		3.96	%	29		117
Policy loans	3.37	%	8		—		3.31	%	8		—
Short-term investments and cash equivalents	3.93	%	5		—		0.54	%	1		(5	)
Other investments	11.73	%	27		(69	)	8.80	%	27		39

Gross investment income before investment expenses	2.78	%	310		(48	)	2.59	%	291		135
Investment expenses	-0.20	%	(23	)	—		-0.19	%	(21	)	—

Total	2.58	%	287		(48	)	2.40	%	270		135


	Six Months Ended June 30
	2006						2005 (2)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (1)		Amount		Realized Gains / (Losses)		Yield (1)		Amount		Realized Gains / (Losses)
Japanese Insurance Operations:
Fixed maturities	2.48	%	460		(17	)	2.23	%	417		(68	)
Equity securities	2.48	%	22		90		2.48	%	21		12
Commercial loans	3.43	%	40		11		4.03	%	62		116
Policy loans	3.50	%	17		—		3.33	%	17		—
Short-term investments and cash equivalents	3.08	%	7		—		0.36	%	2		—
Other investments	12.54	%	57		(98	)	8.53	%	56		116

Gross investment income before investment expenses	2.77	%	603		(14	)	2.53	%	575		176
Investment expenses	-0.19	%	(45	)	—		-0.19	%	(43	)	—

Total	2.58	%	558		(14	)	2.34	%	532		176

(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 accrue 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 34


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS

(in millions)


	Quarter Ended June 30
	2006						2005 (3)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount		Realized Gains / (Losses)		Yield (2)		Amount		Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	6.14	%	1,082		(230	)	5.85	%	933		31
Equity securities	3.56	%	4		11		7.35	%	9		5
Commercial loans	6.84	%	167		(4	)	8.97	%	175		4
Policy loans	5.45	%	30		—		5.56	%	27		—
Short-term investments and cash equivalents	5.09	%	73		—		3.11	%	46		—
Other investments	6.05	%	49		(36	)	5.92	%	41		124

Gross investment income before investment expenses	6.14	%	1,405		(259	)	6.01	%	1,231		164
Investment expenses	-0.27	%	(141	)	—		-0.23	%	(94	)	—

Total	5.87	%	1,264		(259	)	5.78	%	1,137		164


	Six Months Ended June 30
	2006						2005 (3)
	Investment Income				Realized Gains / (Losses)		Investment Income				Realized Gains / (Losses)
	Yield (2)		Amount		Realized Gains / (Losses)		Yield (2)		Amount		Realized Gains / (Losses)
Financial Services Businesses excluding Japanese Insurance Operations (1):
Fixed maturities	6.11	%	2,105		(296	)	6.04	%	1,875		111
Equity securities	6.31	%	16		18		9.65	%	21		6
Commercial loans	6.87	%	329		(13	)	8.80	%	335		2
Policy loans	5.48	%	58		—		5.51	%	52		—
Short-term investments and cash equivalents	4.75	%	142		—		2.76	%	85		—
Other investments	7.35	%	118		78		5.41	%	74		235

Gross investment income before investment expenses	6.17	%	2,768		(213	)	6.12	%	2,442		354
Investment expenses	-0.27	%	(263	)	—		-0.24	%	(173	)	—

Total	5.90	%	2,505		(213	)	5.88	%	2,269		354

(1)

(2)

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

Page 35


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES

(in millions)


Year ended December 31			2005								2006
2004			1Q		2Q		3Q		4Q		1Q
		Revenues (1):
8,736		Premiums	2,519		2,585		2,574		2,450		2,604
2,385		Policy charges and fee income	617		615		668		629		662
5,728		Net investment income	1,625		1,644		1,731		1,810		1,801
3,065		Asset management fees, commissions and other income	848		852		960		948		1,054

19,914		Total revenues	5,609		5,696		5,933		5,837		6,121

		Benefits and Expenses (1):
8,897		Insurance and annuity benefits	2,536		2,519		2,496		2,439		2,577
2,220		Interest credited to policyholders’ account balances	605		626		653		632		652
296		Interest expense	111		134		143		180		201
(1,528	)	Deferral of acquisition costs	(422	)	(496	)	(444	)	(439	)	(501	)
766		Amortization of acquisition costs	235		232		271		172		240
6,747		General and administrative expenses	1,658		1,860		1,783		2,039		2,006

17,398		Total benefits and expenses	4,723		4,875		4,902		5,023		5,175

2,516		Adjusted operating income before income taxes	886		821		1,031		814		946

(1)

Page 36


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE AND INVESTMENTS DIVISION

(in millions)


Year ended December 31			2005								2006
2004			1Q		2Q		3Q		4Q		1Q
		Revenues (1):
5,303		Premiums	1,548		1,550		1,562		1,438		1,533
240		Policy charges and fee income	71		66		67		60		76
933		Net investment income	305		315		333		371		330
378		Asset management fees, commissions and other income	120		87		114		151		160

6,854		Total revenues	2,044		2,018		2,076		2,020		2,099

		Benefits and Expenses (1):
4,210		Insurance and annuity benefits	1,253		1,200		1,250		1,162		1,224
129		Interest credited to policyholders’ account balances	48		55		54		50		57
7		Interest expense	6		6		7		3		3
(849	)	Deferral of acquisition costs	(257	)	(261	)	(243	)	(242	)	(256	)
365		Amortization of acquisition costs	107		104		90		89		116
1,998		General and administrative expenses	577		568		535		581		573

5,860		Total benefits and expenses	1,734		1,672		1,693		1,643		1,717

994		Adjusted operating income before income taxes	310		346		383		377		382

(1)

Page 37


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE - GIBRALTAR LIFE

(in millions)


Year ended December 31			2005								2006
2004			1Q		2Q		3Q		4Q		1Q
		Revenues (1):
2,355		Premiums	584		639		668		548		544
76		Policy charges and fee income	18		20		13		16		18
600		Net investment income	156		170		179		171		167
(27	)	Asset management fees, commissions and other income	(1	)	(1	)	3		6		3

3,004		Total revenues	757		828		863		741		732

		Benefits and Expenses (1):
1,953		Insurance and annuity benefits	483		514		577		455		455
101		Interest credited to policyholders’ account balances	23		26		29		27		30
(7	)	Interest expense	(1	)	—		—		—		—
(224	)	Deferral of acquisition costs	(62	)	(71	)	(65	)	(67	)	(65	)
79		Amortization of acquisition costs	31		28		14		21		25
700		General and administrative expenses	177		187		167		194		177

2,602		Total benefits and expenses	651		684		722		630		622

402		Adjusted operating income before income taxes	106		144		141		111		110

(1)

Page 38


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INTERNATIONAL INSURANCE SEGMENT - SUPPLEMENTARY INCOME STATEMENT INFORMATION

(Yen and Dollars in millions)


Year ended December 31			2005								2006
2004			1Q		2Q		3Q		4Q		1Q
		Japanese Yen Basis Results:
		Revenues (1):
¥	257,669	Japanese insurance operations excluding Gibraltar Life	¥	90,086	¥	82,958	¥	85,595	¥	92,934	¥	98,534
	329,264	Gibraltar Life		79,233		88,530		95,340		84,366		84,650

	586,933	Total revenues, Japan, yen basis		169,319		171,488		180,935		177,300		183,184

		Benefits and Expenses (1):
	207,830	Japanese insurance operations excluding Gibraltar Life		73,354		65,271		64,755		71,278		77,842
	282,295	Gibraltar Life		67,765		72,737		79,787		71,963		72,640

	490,125	Total benefits and expenses, Japan, yen basis		141,119		138,008		144,542		143,241		150,482

		Adjusted operating income (2):
	49,839	Japanese insurance operations excluding Gibraltar Life		16,732		17,687		20,840		21,656		20,692
	46,969	Gibraltar Life		11,468		15,793		15,553		12,403		12,010

¥	96,808	Total adjusted operating income, Japan, yen basis	¥	28,200	¥	33,480	¥	36,393	¥	34,059	¥	32,702

		Actual exchange rate basis (3):

		Net premiums, policy charges and fee income:
	2,169	Japan, excluding Gibraltar Life		741		670		658		630		731
	2,431	Gibraltar Life		602		659		681		564		562
	943	All other countries		276		287		290		304		316

	5,543	Total		1,619		1,616		1,629		1,498		1,609

		Constant exchange rate basis (4):

		Net premiums, policy charges and fee income:
	2,136	Japan, excluding Gibraltar Life		707		655		664		670		778
	2,398	Gibraltar Life		570		636		685		587		596
	1,037	All other countries		273		284		292		308		304

	5,571	Total		1,550		1,575		1,641		1,565		1,678

(1)

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

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

(4)	Translated based on average exchange rates for the year ended December 31, 2005.

Page 39


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

INSURANCE DIVISION - INDIVIDUAL ANNUITIES SALES, ACCOUNT VALUES AND ACCOUNT VALUE ACTIVITY

(in millions)


Year ended December 31			2005								2006
2004			1Q		2Q		3Q		4Q		1Q
		INDIVIDUAL ANNUITIES:

		Variable Annuities:
43,949		Beginning total account value	47,418		46,386		47,402		49,484		50,778
5,806		Sales	1,433		1,779		1,930		1,964		2,129
(5,224	)	Surrenders and withdrawals	(1,388	)	(1,470	)	(1,397	)	(1,436	)	(1,585	)

582		Net sales	45		309		533		528		544
(613	)	Benefit payments	(171	)	(170	)	(179	)	(158	)	(185	)

(31	)	Net flows	(126	)	139		354		370		359
4,091		Change in market value, interest credited, and other	(748	)	1,037		1,904		1,106		2,228
(591	)	Policy charges	(158	)	(160	)	(176	)	(182	)	(184	)

47,418		Ending total account value	46,386		47,402		49,484		50,778		53,181

		Account Values in Separate Account:
39,803		Beginning balance	41,684		40,602		41,684		44,080		45,538
5,296		Premiums and deposits	1,300		1,714		1,882		1,922		2,083
(4,605	)	Surrenders and withdrawals	(1,206	)	(1,279	)	(1,251	)	(1,252	)	(1,380	)

691		Net sales	94		435		631		670		703
(458	)	Benefit payments	(130	)	(131	)	(146	)	(127	)	(134	)

233		Net flows	(36	)	304		485		543		569
3,947		Change in market value, interest credited and other	(792	)	986		1,834		1,057		2,177
(1,709	)	Net transfers (to) from general account	(97	)	(48	)	252		39		173
(590	)	Policy charges	(157	)	(160	)	(175	)	(181	)	(185	)

41,684		Ending balance	40,602		41,684		44,080		45,538		48,272

Page 40


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

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, as adjusted, 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; and the related tax effects thereof. Realized investment gains (losses) representing profit or loss of certain of our businesses which primarily originate investments for sale or syndication to unrelated investors, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. 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” as determined in accordance with GAAP but is the measure of profit or loss we use to evaluate segment performance. Adjusted operating income is not 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 41


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

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. Full Service:

The Full Service line of business provides retirement plan products and services to public, private and not-for-profit organizations. This business provides recordkeeping, plan administration, actuarial advisory services, participant education and communication services, trustee services and institutional and retail investment funds. This business mainly services defined contribution and defined benefit plans; non-qualified plans are also serviced. For clients with both defined contribution and defined benefit plans, integrated recordkeeping services are available. For participants leaving these plans, a range of rollover products are provided through a broker-dealer bank.

14. Full Service Stable Value:

Our Full Service Stable Value products represent fixed rate options on investment funds offered to customers. These products contain an obligation to pay interest at a specified rate for a specific period of time. Upon termination these products repay account balances at market value immediately or may be liquidated at book value over time. Substantially all of these products are either fully or partially participating, with annual or semi-annual resets giving effect to previous investment experience. These products are issued through the general account, separate accounts or client-owned trusts. Profits from partially participating general account products result from the spread between the rate of return on investment assets and the interest rates credited to the customer, less expenses. For fully participating products, generally subject to a minimum interest rate guarantee, we earn fee income.

15. 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.

16. Gibraltar Life Advisors:

Insurance representatives for Gibraltar Life.

17. 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.

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

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

19. Individual Annuity Account Values in General Account and Separate Account:

Amounts represent the breakdown of invested customer funds in annuities either written or reinsured by the Company.

20. 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.

21. 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.

Page 42


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

KEY DEFINITIONS AND FORMULAS

22. International Life Planners:

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

23. 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. Group disability amounts include long-term care products. Single premium business for the Company’s international insurance operations is included in annualized new business premiums based on 10% credit.

24. 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.

25. 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 10.92% for the six months ended June 30, 2006, 14.89% for the six months ended June 30, 2005, 8.74% for the three months ended June 30, 2006, 13.00% for the three months ended March 31, 2006, 7.23% for the three months ended December 31, 2005, 24.16% for the three months ended September 30, 2005 and 15.04% for the three months ended June 30, 2005.

26. 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).

27. 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.

28. Prudential Agents:

Insurance agents in our insurance operations in the United States.

29. 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.

30. 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.

31. 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.

32. 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 43


Prudential Financial, Inc. Quarterly Financial Supplement Second Quarter 2006

RATINGS AND INVESTOR INFORMATION

INSURANCE CLAIMS PAYING RATINGS

as of August 2, 2006


	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 August 2, 2006

Prudential Financial, Inc.:
Short-Term Borrowings	AMB-1	A-1	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

Common Stock:

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

Page 44

Form: 8-K

Documents